willingness to pay for a water supply - CEPA

Purchase Order # 0514-PO-23
Survey on Willingness and Ability to Pay for Pro-Poor Household Water Connections
Consolidated Final Report
20 February, 2009
Submitted to:
Eco Asia, USAID
Submitted by:
29 Gregory’s Road, Colombo 7, Sri Lanka
Tel: +94 11 2676955-8, Fax: +94 11 2676959
Email: info@cepa.lk
Web: www.cepa.lk

Abbreviations and Acronyms
CBO
CEPA
CMC
DMMC
ECO-Asia
GTZ
HH
KPI
MC
MMC
NGO
NHDA
NMC
NRW
NWSDB
REEL
TOR
UN-ESCAP
USS
WTP
Community Based Organisations
Centre for Poverty Analysis
Colombo Municipal Council
Dehiwala -Mount Lavinia Municipal Council
Environmental Cooperation-Asia
German Technical Corporation
Household
Key Person Interview
Municipal Council
Moratuwa Municipal Council
Non Governmental Organisation
National Housing Development Authority
Negombo Municipal Council
Non Revenue Water
National Water Supply and Drainage Board
Real Estate Exchange (Pvt) Ltd
Terms of Reference
United Nations Economic and Social Commission for Asia and the Pacific
Under Served Settlements
Willingness to Pay
ii

CONTENTS
ABBREVIATIONS AND ACRONYMS..................................................................................................................II
PREFACE.................................................................................................................................................................. IV
EXECUTIVE SUMMARY .........................................................................................................................................V
1. INTRODUCTION .............................................................................................................................................1
1.1 OVERVIEW OF WATER SUPPLY SERVICES TO THE URBAN POOR.........................................................................1
1.2 DEMAND FOR INDIVIDUAL HOUSE CONNECTIONS...........................................................................................3
2. STUDY METHODOLOGY ...............................................................................................................................5
2.1 PHASE 1: IDENTIFICATION OF LOCATIONS AND SETTLEMENTS ........................................................................5
2.2 PHASE 2: UNDERSTANDING HOUSEHOLD DEMAND FOR WATER SUPPLY SERVICES...........................................10
2.3 STUDY LIMITATIONS ...................................................................................................................................11
3. FINDINGS.......................................................................................................................................................11
3.1 OVERVIEW..................................................................................................................................................11
3.2 FACTORS DETERMINING WILLINGNESS TO CONNECT .....................................................................................13
3.3 GENERAL LIVING CONDITIONS .....................................................................................................................17
3.4 ESTIMATES ON MONTHLY INCOME AND EXPENDITURE ...................................................................................21
3.5 ESTIMATES ON AFFORDABILITY OF HOUSE CONNECTIONS..............................................................................22
3.6 REQUIREMENT FOR (MICRO) LOAN FINANCING AND REPAYMENT PREFERENCES...............................................29
4. INTERVENTIONS TO PROVIDE UTILITY CONNECTIONS TO THE POOR ......................................31
4.1 MODELS FOR PROVIDING INDIVIDUAL UTILITY CONNECTIONS........................................................................31
4.2 INSTITUTIONAL PERSPECTIVES ON WATER SUPPLY IMPROVEMENTS ...............................................................34
5. CONCLUSIONS AND RECOMMENDATIONS.............................................................................................36
5.1 CONCLUSIONS ............................................................................................................................................36
5.2 RECOMMENDATIONS ...................................................................................................................................38
REFERENCES...........................................................................................................................................................39
ANNEXES
Annex 1: List of KPI
Annex 2: Details of selected USS - Field Verification
Annex 3: Site Mapping
Annex 4: Photo Documentation
Annex 5: Demand Schedules, by Site
Annex 6: Comments from the client and CEPA responses
iii

Preface
This is the consolidated final report containing the main findings of the survey on willingness to
pay for water services carried out by the Centre for Poverty Analysis (CEPA), at the request of
the USAID project Environmental Cooperation-Asia (ECO-Asia). It contains information
presented in four previous reports, namely the Inception report; the Documentation of the
Stakeholder Workshop; the Progress report; and the Draft Final report.
This report was issued in draft form and has been finalised after feedback from the client
(comments received are attached to this report as Annex 6).
iv

Executive Summary
In Sri Lanka, 84.7% of the population has access to safe drinking water, defined as accessibility
within 1Km distance from household to piped water (mainline), tube well, protected well,
protected spring or protected rain water. In urban areas, a much larger proportion of the
population - 95.4% - has access to safe drinking water. While these data indicate that access
itself may not be an issue in urban Sri Lanka, they do not provide information regarding the
quality of services – for example regarding the convenience and availability of sufficient water,
not only for drinking but for all basic needs
Programmes to improve water services in Sri Lanka, particularly those to the urban poor, are
hampered by lack of systematic data regarding the water service quality, such as the location of
under served settlements, numbers and locations of households without access to water etc.
Available data is mostly regarding the location of public stand posts, which can be used as a
proxy for absence of individual household connections.
This report contains the results of the willingness to pay survey carried out by CEPA at the
request of USAID’s ECO-Asia programme. The main objective of this study is to understand the
demand for water services among the urban poor to enable the design of pro-poor water
services. Within this main objective, the TOR sets out the following specific objective: “is there
a potential market for individual house connections for water services, particularly whether poor
households are willing to pay for an individual house connection and how much they would be
able to afford [which includes] an assessment of willingness to connect and ability to pay
connection fees as well as water charges”.
The study was carried out in two phases. In Phase 1, we attempted to locate areas with a high
concentration of under-served settlements without individual water connections. This phase was
hampered by lack of data but the municipalities of Colombo (CMC), Moratuwa (MMC) and
Dehiwala-Mount Lavinia (DMMC) were identified as locations with a relatively large
concentration of public stand posts. The field verification of settlements within municipalities
found that the reported data provides a picture that is quite different to what is prevailing on
the ground, and most settlements identified as having no household connections actually had a
number of connected households. Overall, the field verification found that CMC has a large
number of USS as well as a large number of households without individual connections, while in
MMC and DMMC, there are relatively fewer sites but many of these have large populations of
unconnected households. In Phase 2, the household survey was carried out in 15 purposively
selected sites across these municipalities and a total of 248 households at a 98% response rate
were interviewed.
The survey revealed that there is a high degree of preference for individual house connections
among the poor. In particular, women articulated a saving in terms of time and effort, as did as
households with elderly, disabled and young children. In line with other studies carried out on
this issue, the main problems articulated with the public stand posts relate to wastage of time,
lack of privacy, and problems with neighbours sharing the facility. Demand for private
connection therefore was found to be high among the surveyed population.
v

In terms of willingness to pay, the survey found that households articulated their ability, rather
than willingness, to pay. The regression output found that the amount reported strongly
correlated with income and proxy variables of income, and was not found to be highly
correlated with factors that affect demand, for example, having elderly, disabled and young
children in the household. There is also a variance across sites, with households living in the
CMC and MMC areas and households living in larger sites reporting a higher willingness to pay
to connect. Overall, the survey shows the following demand function for individual water
connections in the three municipalities of Colombo, Dehiwala-Mount Lavinia and Moratuwa. The
demand function shows that at a connection fee of Rs.5,000, 54% of unconnected households
in Colombo and almost 40% of unconnected households in Moratuwa are very likely to
connect, compared to 13% of unconnected households in Dehiwala Mount Lavinia. Stated
differently, the demand function shows that over 50% of households in CMC would very likely
connect if the connection fee is Rs.5,000/-, while 50% of households in MMC would connect if
the connection fee is closer to $s.4,000/-. In DMMC, for 50% of the households to connect, the
connection fee would need to be between Rs,1,000 – Rs.2,000/-.
Because there is a gap between what the households identified as what they are able to pay for
a household connection, and their expected utility from a household connection, the data
indicates that there is a potential for a financing scheme to help households to obtain
household connections. About half the surveyed population indicated a willingness to obtain a
loan, and this was mainly those who had already taken loans for various household needs.
Those who said they did not have funds to pay for a household connection were also not
enthusiastic about obtaining a loan to get a utility connection, because they were worried about
their ability to repay.
However, this data is only indicative as the surveyed households were not asked about a
particular loan programme, and their willingness to take a loan may change if the terms of the
loan, such as amount, interest and repayment period, are in line with their ability to repay. Most
households were new to the idea of taking a loan to finance utility connection as most available
water schemes involve a concessionary rate and an instalment payment system.
Overall, the following recommendations for pro-poor water services were identified from the
survey:
• There is a need for a customised approach to deal with the various problems facing the
urban poor, and a one-size-fits-all approach is unlikely to be successful.
• There are many existing programmes to provide pro-poor water services which are showing
substantial progress, such as Ran Diya, but which are hampered by lack of resources. These
can be expanded with minimum need for capacity building and other ancillary resource use.
• There is a need to systemize and disseminate to households information on available
programs to ensure that poor households are able to take advantage of such programmes
where possible, but also to ensure that they are not marginalised due to lack of information.
• In most sites, drainage is a major problem and any programme to provide pro-poor water
services also need to address how the household will be provided adequate drainage and
where applicable, sewerage connections.
• In some sites where there are no individual connections or large parts of a site do not have
connections, the problem is site-specific – such as technical and space constraints. These
are mostly found in the CMC area and require a holistic and innovative solution in
consultation with the community and NWSDB.
vi

• The gap between the value households place on individual connections and their ability to
pay for connections indicates the need for financing – through concessionary connection
charges and/ or loan financing. Those who are willing to take a loan to fund a private utility
connection also tends to be the better off among the poor, indicating that a concessionary/
subsidised scheme would be necessary to target the poorest households.
vii

1. Introduction
1. This report has been prepared by the Centre for Poverty Analysis (CEPA), which was
retained by the USAID project Environmental Cooperation-Asia (ECO-Asia), to design and carry
out a survey of poor urban households to understand their needs in relation to water services.
This is the consolidated final report that documents the study process and presents the main
analysis and findings.
2. The main objective of the study is to understand the demand for water services
among the urban poor to enable the design of pro-poor water services. Within this main
objective, the TOR sets out the following specific objective: “is there a potential market for
individual house connections for water services, particularly whether poor households are
willing to pay for an individual house connection and how much they would be able to afford
[which includes] an assessment of willingness to connect and ability to pay connection fees as
well as water charges”.
3. The report is organised in five parts; (i) introduction, which sets out a brief overview of
water supply services and urban poverty in Sri Lanka; (ii) study methodology, including
sampling strategy and study tools; (iii) findings, which presents the survey findings; (iv) an
overview discussion of models used in Sri Lanka for providing individual utility connections and
(v) conclusions and recommendations which are drawn from the study findings to guide the
next phase of Eco Asia’s project development in relation to water service provision in Sri Lanka.
1.1 Overview of water supply services to the urban poor
4. Access to basic services such as safe drinking water and sanitation is linked to poverty,
because the absence of such facilities can severely impair economic and social development and
undermine general living conditions, especially health. A Millennium Development Goal (MDG)
calls for halving the number of people without sustainable access to safe drinking water by
2015. In Sri Lanka, 84.7% of the population has access to safe drinking water, defined as
accessibility within 1Km distance from household to piped water (mainline), tube well, protected
well, protected spring or protected rain water. In urban areas, a much larger proportion of the
population - 95.4% - has access to safe drinking water 1 . While these data indicate that access
itself may not be an issue in urban Sri Lanka, they do not provide information regarding the
quality of services – for example regarding the convenience and availability of sufficient water,
not only for drinking but for all basic needs.
5. Most urban poor tend to
concentrate in under-served
settlements (USS), also known as
tenement gardens. Of the 184,000
urban poor, more than 70% live in
the District of Colombo, with an
Table 1.1: Urban Poor in Sri Lanka (2002)
Population below the poverty line – Urban Total 185,000
Population below poverty line - Colombo District only 143,000
Population below poverty line – CMC area only 39,819
Source: Department of Census and Statistics
1 Department of Census and Statistics, www.statistics.gov.lk
1

estimated 20% living in the city of Colombo itself (Table 1.1). In the CMC area, 1,614 USS have
been identified and these settlements are characterized by a concentration of resident units,
high population density and congested housing (averaging about 1.5 perches per block), and
chronic condition of basic services.
6. The lack or poor quality of basic services in these settlements are directly linked to the
nature of their development. Most USS started growing from individual households established
illegally on state land, or settled on a very low or no-rent basis on vacant private land or
buildings generally held by commercial entities or landed families. As the settlements grew, they
were categorised as illegal housing that did not meet the housing regulations and/or did not
have the right to the land they occupied. In the Colombo Municipal Council (CMC) area most
residents now have a right of residence, albeit not one sanctioned legally and only 6% are
considered ‘illegal’. Most of these settlements are those which are occupying railway, canal, or
other reservation land 2 . Lack of security of tenure can act as a barrier both to utility service
providers (such as NWSDB and CEB) to provide individual connections in these settlements as
well as for households to incur the investment of upgrading their service quality.
7. In relation to water services, most urban areas are served by the NSWDB (with the
exception of Kurunegala, Kandy and Nuwara Eliya) through main line connections, either
through public taps or individual connections. In the Greater Colombo area, some USS have
public facilities while some have individual connections. According to NWSDB data as at end
2006, 53% of USS within CMC have public facilities, mainly public stand pipes, baths and toilets.
According to the NWSDB, all these public facilities get 24 hours of supply except in locations
where there are problems with water pressure such as in the Slave Island area.
8. Outside of Colombo City, there is no easily accessible information regarding water
services in USS. In the Greater Colombo Area, the available data indicates the existence of USS
or tenement gardens with public facilities, albeit on a much smaller scale than in the city of
Colombo (Table 1.2).
Table 1.2: Water Services in USS in Greater Colombo Area (excluding CMC)
Number of
USS
Number of
Individual
Connections
Number of
Public Stand
pipes
Division
Towns South Colombo (Nugegoda to Pandura) n/a 6332 213
Towns North Colombo (Kelaniya and Wattala) n/a n/a 30
Towns East of Colombo - North (Battaramulla, Kolonnawa, Kotte) n/a n/a n/a
Towns East of Colombo - South (Maharagama to Avissawella n/a n/a 5
n/a: not available
Source: NWSDB
9. There is also little information regarding urban poor access to water services in areas
outside of Greater Colombo. Most of the available information relates to a study 3 done in 2002-
2004 in Negombo and Kalutara – Galle coastal areas in support of a public-private partnership
project. The survey covered 1,800 poor and non-poor households and results show that major
sources of water are individual connections through the piped water network, private wells, and
2 Gunetilleke et al, 2004
3 Pattanayak et al (2006a and 2006b)
2

water from neighbours and that most households can access at least three sources. Only about
4 % of the sample relied exclusively on a combination of community sources, including
neighbours, public taps, and public wells. According to this survey:-
“… “self-provision” through private wells is a substantive and realistic alternative
to tap water, even for poor households… In general, households are satisfied with
their existing sources. By choice or through compulsion, private wells appear to be
the dominant form of self-provision, primarily because of favorable hydrogeological
conditions that make it easy to construct dug wells in the two service
areas.”
- Pattanayak et al, 2006a, p.8
1.2 Demand for Individual House Connections
10. Within the CMC area, USS residents have been reported to articulate a high demand for
individual water connections. A CEPA study of poverty in USS carried out in 2004, showed that
more than 80% of respondents listed the availability of water for domestic use as one of their
top three priorities. They also articulated the disadvantages of public facilities and indicated that
the disadvantages associated with common access to water outweigh the economic advantage
of obtaining water at no cost (Box 1.1).
11. In the Negombo, and Kalutara-Galle study, households who were not connected showed
a lower willingness to pay for individual connections. This is likely to be linked to availability of
alternative sources of water, as well as to issues such as location and perceptions. The study
also found that the poor do not necessarily prefer individual taps to public taps and that the
poor households showed a lower willingness to pay for improved water services. Interestingly
only 5% of households reported that they would change their minds and connect to the new
service if a financing scheme was available.
12. The institutional motivations and constraints are also important and drive the
improvements that can be made in relation to water services. According to the discussion with
the NWSDB 12% of its water is classified as “free water” which is supplied to public facilities,
for which it gets no revenue. However, as an institution it is (and should be) more concerned
with 42% of its water classified as “unaccounted for water” which is lost through leakages and
other problems in the network. The NWSDB has already launched the Ran Diya Programme and
others with a similar characteristic to provide individual connections but face capacity
constraints to fast-track this programme. NWSDB is constrained by technical considerations
such as the availability of an access road into the settlement in order to lay the pipes and grey
water disposal, and lack of investment in upgrading the existing infrastructure. At the level of
the municipal council, space for drainage and adequate sewerage systems especially when
individual toilets are constructed when public facilities are disconnected in settlements are
issues that have to be considered. These considerations would limit the number of settlements
in which public facilities can be converted into individual connections without resulting in a
deterioration of living conditions for the residents.
3

Box 1.1: Extract from Gunetilleke et al, (2004) “Understanding the dimensions and dynamics
of Poverty in Underserved settlements in Colombo”, CEPA
Advantages and disadvantages of common and private access to water
Advantages of common water Disadvantages of common water access
access
Ideal economically as there are no Wastage of water – people with individual
bills/free water
connections use the common water sources in order
to save on their private consumption, some use the
water to wash their vehicles
Improper drainage of water from common sources
leads to muddy roads
Water is given at low pressure
Irregular supply of water – water is not available
during most of the day and people cannot use it
when they want to – in the mornings, after work,
and they are forced to use other sources of water,
such as canal.
Old and rusty pipelines reducing the quality
Queues and fights amongst users
Have to collect water, bath etc early in the morning
to avoid the rush
There is no one to repair and maintain common
connections
Advantages of private access to Disadvantages of private access to water
water
Increased privacy and convenience, Bills (cost)
especially for young women bathing
There is no need to stand in queues;
time saved can be used for more
productive activities eg. income
generation
Can get work done faster as the
number of people using it is much
less
They can use it whenever they want
to
They don’t have to wake up early
It limits contact with others external
to the family unit [and reduces
impending conflicts]
Source: Key Informant Interviews with CDC Leaders and Service Providers
13. Based on available information regarding the overall situation in terms of access to
water services in the Greater Colombo Area, the following hypothesis were developed to be
tested through the survey:
• Some settlements cannot be converted into individual house connections due to
technical constraints such as lack of water pressure and lack of access roads to lay
pipes. There are also constraints due to ownership and tenure considerations such as in
the case of reservation lands.
• Within the household there are space issues constraining the conversion to individual
house connections. Because houses are often highly congested, and with no or minimal
4

garden space, there is no space for an individual bathrooms, for laying sewerage pipes,
and disposing waste water.
• There are equity questions about removing the public facilities in a scenario where
technical supplier considerations and household capacities prevent functional individual
connections.
2. Study Methodology
14. The demand for water services among the poor is different based on locations and
sometimes the individual situation of the households. Previous WTP studies found that
consumption patterns and preferences are different in the different geographic locations despite
being clustered around Colombo 4 . In order to avoid bias therefore, this study focused on
understanding poor household’s demand for water services. Previous studies also point to the
need to understand non-monetary consideration which may influence a household’s water
supply choices such as usage patters and perceptions. Community level Focus Group
Discussions have shown that even in communities where individual house connections are
preferred, the community would still like to retain the public facilities for the use of visitors and
other outsiders during special events such as funerals and weddings in the community.
15. Given the technical considerations, both at the institutional level (such as lack of water
pressure) and at the household level (such as lack of space for in-house bathroom), there is a
further need to identify locations where individual house connections are feasible before any
dialogue is begun with the community or individual household regarding the affordability of the
service. Within the CMC area there are settlements identified as “illegal” where no development
work takes place. The study team felt strongly that the study itself should not raise hopes or
create a demand for house connections when such connections cannot be provided in the near
future.
16. Taking these issues into consideration, the study be carried out in two phases, as
follows:
Phase 1: identification of locations and settlements
Phase 2: understanding household demand for water supply services, including the demand and
WTP for individual house connections
2.1 Phase 1: Identification of locations and settlements
17. The first step was to identify locations to situate the proposed project which is in line
with the expectations and objectives of all these institutional stakeholders as well as Eco Asia.
For this purpose, CEPA carried out a literature review, a series of key person interviews (KPI)
(see Annex 1 for list of KPI) and a stakeholder workshop 5 .
18. Based on these sources, criteria to prioritise locations were identified as follows:
4 Pattanayak et al, 2006a p.18
5 Eco-Asia Pro-Poor Water Services: Study of Demand for Household Water Connections among the Urban Poor:
Institutional Stakeholders Meeting, November 7, 2008, Documentation Report.
5

• Areas with a substantial number of public stand posts and poor households
• Areas where water is mainly available through the NWSDB, that is locations that do not
provide easy alternatives to public stand posts (such as wells, rivers etc)
• Areas without, or with limited, programmes to convert poor households from public
water to individual household connections
• Areas where there is sufficient supply capacity available with NWSDB to provide
individual household connections
These criteria were validated by the participants at the institutional stakeholder meeting
attended by representatives of the NWSDB and the Local Government Agencies.
19. The initial intention was to look at the national level data to identify the areas that had
high incidences of stand posts. However the paucity of data available regarding public stand
posts and under served settlements (USS) in the country necessitated the focus of the data
collection on Municipal Council areas (MC). It was also agreed at the stakeholder workshop
that these areas are more appropriate as municipal council areas are generally more
urbanised/commercialised and tend to have larger concentrations of urban poor people, and
underserved settlements.
20. Table 2.1 shows the current state of knowledge regarding the number of public stand
posts in use and programmes available to provide private connections in municipalities in Sri
Lanka.
Table 2.1: Water Services in Municipal Council areas in Sri Lanka
public water service
Municipality
facilities
1 Colombo - CMC area 709 public standpipes,
1135 bath taps, 716 toilet taps
Programme currently
operating to provide
individual connections
NWSDB - Ran Diya programme
2 Negombo 250 public standpipes No regular programme
3 Moratuwa 111 public standpipes
9 bath taps
NWSDB converts on a case-bycase
basis - similar to Ran Diya
4 Dehiwala - Mt. Lavinia 80 public standpipes
17 bath taps
NWSDB converts on a case-bycase
basis - similar to Ran Diya
5 Kandy 87 public stand pipes Programme in operation by
JICA/JBIC
6 Sri Jayawadenepura
Kotte
26 public standpipes Scheme in operation – similar to
Ran Diya
7 Nuwara Eliya 10 -15 stand posts MC has a scheme funded by JICA
8 Gampaha 1 public standpipe NWSDB Scheme in operation.
9 - 18 Matale, Badulla,
Ratnapura,
Anuradhapura,
Kurunegala, Galle,
Matara, Jaffna,
Batticaloa, Kalmunei
Source: KPIs and information provided by MCs, NWSDB
Limited information available.
Some areas i.e Matale reported
to have large number of USS.
Many of these areas have
access to public and private
wells, and other water sources
N/A
6

21. Based on the selection criteria set out above, the municipal council areas of Colombo
(CMC), Negombo (NMC), Moratuwa (MMC) and Dehiwala-Mount Lavinia (DMMC) were
prioritised. Greater Colombo area has the most prevalent need for an intervention. In most
other areas, there was either easy access to alternatives or supply constraints (eg. Negombo)
or other interventions were already in place (eg. Nuwara Eliya). Within the Greater Colombo
Area, the Colombo Municipal Council, though having by far the largest number of public stand
posts in an MC area, also had the Ran Diya and REEL programmes in place, while the other
areas did not have a concerted effort or a specified programme in place. It was therefore
agreed to rank the top three MCs as follows: (i) Moratuwa; (ii) Dehiwala-Mount Lavinia; and (iii)
Colombo - CMC.
22. Based on the data collection, sites/settlements to be included in the survey were
prioritised based on the criteria below:
• have public stand posts in use and more than 5 households are using the stand post
• no legal constraints (that is, sites are not located in reservation lands such as on railway
reservations, canal banks, the beach etc)
• not subject to technical limitation in relation to water supply such as water pressure,
space for laying pipes etc
These criteria were validated by the participants at the institutional stakeholder meeting
attended by representatives of the NWSDB and the Local Government Agencies.
Colombo Municipal Council Area
23. Key person interviews were held with the Colombo Municpal Council staff, the Non-
Revenue Water Section of the NWSDB, Sevanatha (and NGO active in water service related
interventions in Colombo) and Real Estate Exchange (Pvt) Ltd (REEL) (a government owned
company engaged in freeing up high-value lands currently occupied by USS). Based on these
KPIs, an updated list showing the status of water services in all the 1,571 identified USS in the
CMC area was prepared. These data indicates that in the case of 381 USS, the status of water
supply is not known, 25 USS have some households connected while others are not and a
further 195 USS are identified as “private connections not provided”. Using the list of USS
without connections and partially connected, further data was collected to assess each site in
relation to the priority selected criteria for sites set out in paragraph 22 above. Based on the
information collected, 82 USS were identified as potential locations for a future intervention to
provide individual connections.
24. A sample of 7 locations were then selected from the 82 USS, to provide maximum
variance in terms of location, and size in terms of number of HH per stand post. Alll 7 sites were
field verified, and the ground situation in terms of number of households in the site as well as
the n umber of households without individual water connections was found to be quite
different. 02 sites were found to be fully connected or otherwise not in line with site selection
criteria 6 . Thereafter backup sites with similar characteristics were picked and field verified.
Altogether 20 sites were field verified in this manner (Annex 2) and 7 sites were selected for the
sample. (Table 2.2). Site maps were done for all the selected USS on which basis the stratified
weighted random of HH was selected for the survey in each location.
6 148 Layards Broadway site was replaced with 299 Layards Broadway site, and 180 Layards Broadway site was
replaced with 185 Stace road site
7

Table 2.2 Representativeness of Sample Sites – CMC
Site
Estimated
Number of
HHs
Estimated
number of
HHs without
connections
Number of
public stand
posts
1 187+191 Galle Rd 77 77 1
2 64 Sri Saddharama Mw (CGR) 113 113 5
3 29 D.M. Kolombage Mw 22 21 3
4 299 Layards Broadway 29 18 2
5 56+145 Sri Sangaraja Mw 41 38 3
6 Log gate lane 150 66 2
7 185 Stace road 300 118 7
Reasons for selecting site
Higher end of variance in terms
of number of HH with no
connections, low accessibility of
stand post
Higher end of variance in terms
of number of HH with no
connections, average
accessibility of stand posts
Lower end of variance terms of
number of HH with no
connections, high accessibility
of stand posts
Lower end of variance in terms
of HH without connections,
high accessibility of stand posts
Average in terms of number of
HH without connections,
average accessibility of stand
posts
high in terms of number of HH
without connections, low
accessibility of stand posts
high in terms of number of HH
without connections, average
accessibility of stand posts
Moratuwa Municipal Council Area
25. Key person interviews were held with officials of the Moratuwa Municipal Council (MMC)
and officials of the Regional Office-NWSDB, Towns South of Colombo. There are 111 public
stand posts in the Moratuwa MC area but many of these are located in public areas, rather than
in under-served settlements. According to the Moratuwa MC, there are 20 USS in the Moratuwa
MC area and, with the assistance of the MMC, the team visited all 20 to verify the status of
water services in these settlements (Annex 2). From the site visits, it became apparent that 3
sites have been fully converted into individual connections, 15 are partially connected, 1 site the
status was unclear and 1 site has no individual connections at all. From the 16 partially and not
connected sites, site mapping was carried out in 10 sites, and a sample of 4 sites was selected
for the survey using the same methodology followed in the case of CMC area detailed above
(Table 2.3).
8

Table 2.3 Representativeness of Sample Sites – MMC
Site
Estimated
Number of
HHs
Estimated
number of
HHs without
connections
Number
of public
stand
posts
1 Madamgahawatta 184 121 8
2 Clowis Road 105 20 3
3 Pittaniyawatte 58 27 1
4 Malpochchiwatta 98 46 3
Reasons for selecting site
High end of variance in terms of HH
without connections, low accessibility
to standpost, coastal area
Low end of variance in terms of HH
without connections, high
accessibility to standpost, coastal
area
Low end of variance in terms of HH
without connections, average
accessibility to standpost, inland
area
Average number of HH without
connections, high accessibility to
standpost, inland area
Dehiwala-Mount Lavinia Council Area
26. Key person interviews were held with officials of the Dehiwala-Mount Lavinia Municiapl
Council (DMMC) and officials of the Regional Office-NWSDB, Towns South of Colombo. NWSDB
reported 80 public stand posts in the Dehiwala-Mount Lavinia MC area but scoping visits
revealed that many of these are located in public areas, rather than in USS. It was also found
that many of the taps had been closed and the locations had been transformed (over time) into
permanent housing and individual connections. Only a few USS remained while small pockets or
a small number of scattered households with no connections also remain. Based on the
mapping exercise 11 sites for potential intervention were identified with 8 partially connected,
and 3 with no individual connections at all (Annex 2). A sample of 4 sites was selected for the
survey using the same methodology followed in the case of CMC area detailed above (Table
2.4).
Table 2.4 Representativeness of Sample Sites - DMMC
Site
Estimated
Number of
HHs
Estimated
number of
HHs without
connections
Number of
public
stand posts
1 Station Road 42 42 9
2 Fairline road 25 25 4
3 Quarry road 14 14 4
4 Aponsu avenue 45 44 3
Reasons for selecting site
High end of variance in terms of HH without
connections, high accessibility to stand post,
coastal area
Average number of HH without connections,
high accessibility to stand post, coastal area
Low end of variance in terms of HH without
connections, high accessibility to stand post,
inland area
High end of variance in terms of HH without
connections, average accessibility to stand
post, coastal area
9

2.2 Phase 2: Understanding household demand for water supply services
27. Within a selected settlement, data on household demand for water service supply was
collected through a survey of households selected on the basis of a weighted random sample.
In each site the number of households to be surveyed was based on selection of the “n’th
house as follows:
(Sample size in each USS) f = (a/b) c
a: Number of HH without individual connections in the USS
b: Number of HH without individual connections in all sample USS in the MC area
c: Target sample size in the MC area
n = a/f
28. This provides the following sampling distribution.
Table 2.5: Sample distribution across the three priority MCs
Location
Number of
Sample
USS
Number of HH
targeted by
Survey
Selection of HHs
(n)
Number of
HH covered
by Survey
Colombo CMC 7 Upto 150 Every 3 rd house 124
64 Sri Saddharama Mw (CGR) 31
187+191 Galle Rd 22
56+145 Sri Sangaraja Mw 12
29 D.M. Kolombage Mw 06
185 Stace road 32
299 Layards Broadway 05
Log gate lane 15
Moratuwa MC 4 Upto 100 Every 2 nd house 88
Madamgahawatta 48
Pittaniyawatte 08
Malpochchiwatta 16
Clowis Road 16
Dehiwala – Mount Lavinia MC 4 Upto 34 Every 2 nd house 31
Station Road 10
Fairline road 08
Quarry road 06
Aponsu avenue 07
Total 15 Upto 284 243
Note: 4 questionnaires were rejected for various reasons, and analysis was carried out from 243 completed
questionnaires as shown.
29. A semi-structured HH survey questionnaire was developed and piloted in Dandeniwatta
neighbourhood in the Moratuwa MC area. The pilot neighbourhood is large with 260 households
and is partly connected, containing households with individual connections as well as
10

households without individual connections. 15 households were interviewed and the
questionnaire was finalised after the pilot.
30. Site-specific KPI were carried out with community leaders such as Grama Niladari, CBO
leaders, and other prominent persons in the sites to generate triangulation information to
validate the data collected at the household level (see Annex 1 for list of KPI). These are in
addition to the KPI done with NWSDB offocials, and other institutions involved in meeting the
demand for water supply services among the urban poor.
2.3 Study Limitations
31. Given time and resource constraints, the study does not provide a representative sample
of households in the three municipalities covered by the Survey. Sites were selected to provide
maximum variance, so the findings are indicative rather than generalisable. The household
sample is representative, at the site level, of all households who use the public stand post
for their water needs. Survey data was not collected from households who have private
connections, except in the case of Colombo municipality when the sample also captured 02
households who had a private connection but still used the public facilities.
32. The main study limitation stems from lack of accurate information regarding the status
of water services in USS in the three MCs. While every effort was made to select sites that are
representative of the variation found in the respective MC, discrepancies between the data
provided and the field level verification lends a degree of uncertainty regarding the validity of
findings to the sites which were not field-verified. In a number of cases, the reported water
status was found to be different to what was prevailing on the ground. Also there are
discrepancies in the number of households reported to be living in a particular site against the
field verification. This would necessitate that any future intervention which is implemented in
sites outside of the sampled/field verified sites, should begin with a field verification / site
mapping of such sites.
3. Findings
3.1 Overview
33. The study finds that there are only a small number of sites in the three municipalities
which have no private water connections (Table 3.1). The table shows that while 82 sites in
CMC area were reported to have no individual connections, field verification of 20 out of 82
sites showed that only 2 out of the 20 had no private connections at all. Overall, out of 51 sites
field verified in all three municipalities, only 6 were confirmed to have no individual connections.
11

Table 3.1: Status of water connections in USS by MC
MC area
Total Number of
USS
Number of USS
reported
without
connections
Of which
number field
verified
Confirmed
number of USS
with no
individual
connections
CMC 1,571 82 20 2
MMC 20 Unknown 20 1
DMMC 11 unknown 11 3
Total 1,602 51 6
Source: CEPA, site mapping
34. The reasons why these sites have no individual connection are set out in Table 3.2.
These are mainly that the sites are identified for relocation (3 sites) or because space or
technical issue are preventing the laying of water pipes (2 sites). The CGR quarters at Sri
Saddharama road is a special case where the site is owned by the Railways and houses 113
households.
Table 3.2: Sites without any individual connections
MC area Name of Site Number
Reason
of HH
CMC 187 Galle Road, Colombo 6 90 Inadequate space for laying pipes
CMC Sri Saddharama road - CGR
quarters
113 Workers quarters for which the site management is
responsible for providing water
MMC Usavi watte 50 Site earmarked for relocation
DMMC Fairline road 25 Sites affected by the tsunami and awaiting assistance
to rebuild or be relocated
DMMC Station Road 42 Sites affected by the tsunami and awaiting assistance
to rebuild or be relocated
DMMC Quarry Road 14 Difficult to lay pipelines, site constructed on concrete
floor under which lies the main connecting water
pipes in the city.
Source: KPI with community leaders
35. Overall, most sites are reliant on one source of water and that is the NWSDB. This is
particularly noticeable in Colombo where there is insufficient space in USS to allow for private or
even public wells. In Moratuwa and Dehiwala-Mount Lavinia there is greater incidence and use
of private and common wells, as well as tube wells. However, these alternatives are mainly
used as secondary sources because of water quality issues and most households use well water
for bathing, washing and toilet use only.
Our common tap was closed by the Water Board few days ago, so now we bathe
at the common well which is, located near by. The water is very dirty, but still we
have to use it as we haven't any other option at the moment.
- Female, Dehiwala-Mount Lavinia, age 50
12

3.2 Factors determining willingness to connect
36. The survey of 243 households in 15 sites, shows that most people in USS would like to
have an individual connection. It is highest is Moratuwa and Colombo, where 94% and 93% of
the sampled HH respectively said they would like a household connection.
Table 3.3: Households willingness to obtain an individual water connection (%)
Are you willing to obtain a Household
Water connection CMC MMC DMMC Total
1 Yes 93% 94% 77% 91%
2 No / Unable to say now 7% 5% 23% 9%
Total 100% 100% 100% 100%
N=243
Source: Household Survey
37. Those who do not want, or are not sure, usually say so due to three constraints; space,
cost and uncertainty regarding their place of living. In Colombo, most people who don’t want to
get an individual connection are those who feel they don’t have space for an individual
connection. Lack of space can be to construct facilities inside the house such as bathrooms as
well as, more critically, for drainage. Cost is an issue for about 1 in 3 HH who do not want
connections in both Moratuwa and Colombo.
38. In Dehiwala-Mount Lavinia, however, only 77% of the sampled households would like a
household connection, which may be reflecting the temporary nature of most of the
unconnected settlements in this municipality. After the tsunami, the most common constraint at
the household level is uncertainty about their future location. In particular in the Dehiwala-
Mount Lavinia area, there are three sites located within the 45m Tsunami buffer zone, and the
communities have been informed that they will be assisted to relocated inland in the near
future. Therefore, they do not want to incur the expenses of obtaining an individual connection
at their current location.
39. At the level of the community, another reason was articulated for why households, who
have neither space nor financial constraints, may continue to use the public stand post. One
community leader articulated the social level impacts of unequal access to basic services.
“The main problem is that some households don’t have space to construct toilets
or bathrooms and drainage system. … we heard that when one takes individual
connections, the water pressure of the common pipe becomes less and that is
unfavourable to those who are using common taps. We are ready convert only if
the Water Board agrees to retain the pressure of the common tap to the
previous level. All this time we have been living in harmony in this area using
the same pipes and toilets. We don’t want to start any quarrels now.”
- Community Leader, CMC, Male
40. Overall, the survey results indicate that an overwhelming majority of households in
underserved settlement in Colombo, Moratuwa and Dehiwala-Mount Lavinia would like to have
individual connections. A small number of households felt that they did not want individual
13

connections as they faced space or financial constraints, while at the community level, the
inability of some households to connect and the implications of removing the public standpost,
can also act as a disincentive for the entire settlement to connect.
Perceptions of benefits from private connections
41. Because most households already have access to water provided by the NWSDB,
convenience is the most commonly perceived benefit of an individual connection. This is
reflected in terms of time saved and ability to access water at any time of the day as needed.
Households, particularly female respondents, reported that it would be easier to do their work,
they would have water any time at home during illness and other emergency situations at
home, would not need to wait in a queue, and can save time.
“I would not need to wake up at night to fill water if we have an individual
household water connection.”
Female, Colombo, age 48
42. Ability to save time is one of the main perceived advantages of a private connection.
While almost 60% of the households interviewed said there they did not have to stand in a
queue when they went to use the public stand post, they tend to choose a particular time of
day to use the public stand post in order to avoid the queue. In addition to wasting time, the
other main drawback with queuing for public water is the tendency among users to quarrel over
the usage of the public stand post. Almost 70% of the households noted that they mainly tend
to use the public stand post, particularly to fetch water for storage, during mid-morning and
afternoon, when there was no queue. A small number of household also use the public stand
post at night, mainly to draw water for storage often using a hose pipe. It was noted that water
pressure in the tap is also better at this time. Not having access to water when needed was a
main problem with public stand posts, and all households (excluding only those households who
have the stand post almost in their house/garden) tend to store water in their house. However
problems with fetching sufficient water to the house, sufficient space and containers to store
water as well as problems with drainage are problems associated with storing water from the
public stand post.
43. Security, safety and lack of privacy are other constraints with using a public facility.
Accessing public facilities is particularly difficult at night, in some cases because the location is
insufficiently lit. This was particularly noted by women respondents as well as households with
elderly and disabled members or small children and young girls, who often need to be
accompanied to the public stand post by an adult/male. Other public goods problems were also
noted as some households felt that some users were careless about cleanliness of the standpost
area.
“I don't go to public stand post at night as there is no bulb. Then, if we have an
individual water connection, I can get water at night also.”
- Female, Colombo, age 53
“Every one in the community will benefit from getting an individual connection.
Even though these are slum areas, women still prefer privacy. They prefer filling
14

uckets of water to a tank in the house to bathe inside over bathing outside in
public in the common tap.”
- Community Leader, Moratuwa, Male
44. As water in private and public stand posts are of the same quality and available at the
same time (that is over 20 hours) as individual connections, there was no perceived quality
improvements in having an individual connection. Less than 3% of the sample households
reported any incidence of water-related illnesses during the past year (which however may
reflect lack of awareness about water-borne diseases). Only households who currently use well
water expected a quality improvement by switching to a private tap. While there is no
significant issue relating to the quality of the water, there is however a significant quality issue
relating to the condition of the public stanpost area. In several sites households reported that
the public stand post area is unhygienic, mainly due to lack of proper drain away facilities, lack
of pie and surround area maintenance, which contaminates the water when it is being used.
“There is not enough space for waste water to flow away and there is a big mud
pit where the public stand post is. When we bath at the tap the earth gets wet
and muddy. So we fetch water here [in to the household] and bath inside the
compound.”
- Female, Moratuwa, age 41,
45. It was generally accepted that women will benefit more than men from individual
connections. Fetching water from the public tap is done mainly by women as a part of their
household chores. Men tend to use the public tap at the source, to bathe etc. Women on the
other hand fetch water to the house for cooking and sometimes even for washing and bathing.
The care of babies, young children, disabled members and elderly is also usually the
responsibility of women and these tasks require larger quantities of water. In a number of
houses with elderly and disabled members, the benefits of an individual connection were also
articulated in terms of their convenience and better access to water.
“Mother is elderly. So, she needs to bathe in the house. At the moment we are
carrying water to the house to bathe her. If there is a water connection at home,
we won't have to go and fetch water.”
- Male, Moratuwa, age 43
46. The survey was carried out in connected sites among households without individual
connections. For these households, the main water related issue relates to lack of sufficient
space and facilities to drain away water used in the house. This results in collections of water
puddles in the sites, which is particularly a problem in low lying sites and during the rainy
seasons.
15

Table 3.4: Households which have attempted to obtain individual connections (%)
Have you ever tried to get an individual
connection CMC MMC DMMC Total
1 Yes 50% 45% 16% 44%
2 No 50% 55% 84% 56%
Total 100% 100% 100% 100%
N=243
Source: Household Survey
47. Almost half the respondent households have tried to get an individual connection at
some point in the past, without success. In most cases, they have approached the NWSDB
directly or have gone to a political representative such as a minister or council member. Where
they have approached the NWSDB, a number had given up the process because they were
asked to pay upwards of Rs.2,000 as connection charges. In other cases, they were asked to
form a group where every household agreed to obtain a connection and because they could not
get agreement, they have had to abandon the process. In a number of cases, households
responded that they have submitted forms but had had no further information regarding the
status of their application. Overall however, households are poorly informed about whether and
how they may obtain an individual house connection.
48. In Moratuwa and Dehiwala-Mount Lavinia, most households who have tried to get a
connection have done so through a national programme targeting Samurdhi recipients.
Households reported that connections were provided at a concessionary rate to Samurdhi
recipients, which basically involved the payment of an upfront fee of Rs.2,000 and an
instalment based payment of the balance connection charge recovered through the water bill.
49. Compared to 50% in Colombo and 45% in Moratuwa, only 16% households in
Dehiwala-Mount Lavinia have made an attempt to get an individual connection. This is linked to
the uncertainty regarding their locations after the creation of the Tsunami buffer zone.
50. Yet another reason why attempts to get connections have not been successful is due to
households’ inability to prove land ownership. While this was articulated by a CBO leader in
Colombo, interviews with the NWSDB revealed that lack of formal ownership documentation has
not prevented the NSWSDB from providing household connections.
“Procedures of asking for proof of land ownership should be discarded in water
connection, because water is a basic human need and anything that hampers in
giving access to water should be addresses. This difficulty in connecting has lead
to some people being misled by the officers in the Water Board, who are acting
as brokers to get the connection, for a higher price. The problem should be
looked at more humanely.”
- Community Leader, Colombo, Male.
“Normally we provide the water connection, if people can prove their dwelling,
even for reservations. What is important is that there is an access way to provide
the water connection. Before providing water connection to reservations, we
come to an agreement with relevant authorities that the connections will be
removed if/when those authorities remove residents from those reservations.
16

There is a court order requiring that we give water under a special agreements
to the people who lives in reservation lands.”
- KPI with NWSDB, regional office
3.3 General living conditions
51. In terms of quality of housing, all households without an individual water connection are
not temporary structures or of poor quality (Chart 3.1). More than 96% of sampled households
have cement floors, almost 60% have brick or block walls, and 66% have asbestos or tile
roofing. About 20% of the households interviewed have poor quality housing in terms of walls
and roofing materials. These houses have plank walls and tar sheets / metal sheets for roofing,
and are mainly located in 64 Sri Saddharama Mawatha site and 185 Stace Road, site in
Colombo, and Madamgahawatta in Moratuwa. In contrast, about 46% of households
interviewed can be considered permanent structures with brick walls, tile/asbestos roofing and
cement floors.
52. Despite not having individual water connections, close to 75% of households
interviewed in Colombo and Moratuwa have metered electricity connections. Because there are
structural requirements to get an electricity connections, such as permanent roof and walls, this
indicates that these house structure meets some basic quality requirements, and also that these
households have the ability to pay a monthly utility bill. Typical connection fee is over 15,000
and electricity bills also tend to be higher than water bills. In contrast, only 45% of households
interviewed in Dehiwala have metered electricity connections, and in the sites which are along
the coastal belt the majority of households use kerosene as their source of lighting.
See Annex 4 for photo documentation.
17

Chart 3.1 Quality of housing among Surveyed households
without private water
120%
100%
80%
CMC
MMC
DMC
60%
40%
20%
0%
Cement Terazzo / Tile Wood Sand
Type of Flooring
1. Floors
70%
60%
50%
CMC
MMC
DMMC
40%
30%
20%
10%
0%
Brick
Cement
block
Cabok
Pressed
soil blocks
Cadjan /
Palmyra
Plank /
Metal sheet
Type of Walls
2. Walls
80%
70%
60%
CMC
MMC
DMMC
50%
40%
30%
20%
10%
0%
Tile Asbestos Concrete Metal Sheet Tar sheet
Type of Roofing
3. Roofing
Source: Household Survey
18

53. In terms of space available
in the house, the survey asked how
many living spaces are available in
the house. A household with 2 or
less living spaces indicates that the
cooking, sleeping and other
activities of the household are all
usually carried out in different parts
of one room, and that there may
not be a special area for
storing/using water. More than 50%
of households interviewed in
Colombo and Dehiwala-Mount
Lavinia had between 1 to 2 living
spaces, whereas in Moratuwa the
number of living spaces tend to be
3 to 4 rooms. In terms of space
available within the house plot, the
profile shows that space is a
problem mostly in Colombo where
more than 65% of households
interviewed live on less than 2.5
perches.
54. Lack of space within the
Extent of House Plot (in perches)
house plot is also reflected in toilet
facilities of the surveyed
households. In Colombo and
Dehiwala-Mount Lavinia where house plots are small, more than 60% of the interviewed
households use common toilets. In contrast, in Moratuwa, more than 60% of the interviewed
households had private toilets which are used by that household only. There is very little
variation in terms of toilet type, with almost 99% of the interviewed households using a pour
flush squatting pan type of toilet.
Table 3.5: Access to toilet facilities
Chart 3.2 Space availability among Surveyed
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
70%
60%
50%
40%
30%
20%
10%
0%
1 2 3 4 5 6
Number of Rooms
< 2.5 2.5 - 5 5 - 7.5 7.5 - 10 >10
CMC
MMC
DMC
CMC
MMC
DMC
Access to Toilets CMC DMMC MMC
Private Toilet used by household only 8.6% 12.9% 58.0%
Private Toilet but used by more than one household 23.4% 22.6% 36.4%
Common toilet 61.7% 64.5% 5.7%
Common toilet but with restricted use 6.3% 0.0% 0.0%
100% 100% 100%
Source: Household Survey
19

55. Colombo appears to have a
higher concentration of public stand
posts per site than either Moratuwa
or Dehiwala-Mount Lavinia. Whereas
40% of respondents from sites in
Colombo said they have access to
more than 2 public stand posts, only
20% in Dehiwala-Mount Lavinia and
10% in Moratuwa said they have
access to more than 2 stand posts.
However, in all three municipalities
more than 50% of surveyed
households tend to use one
particular stand post, which is
usually the one closest to their
household. The other standposts are
used as back up.
Chart 3.3: Access to and Use of Public Stand Posts
among Surveyed Households
1: Number of accessible Stand Posts
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
CMC
DMMC
MMC
1 2 3 4 5 or more
number of accessible stand posts
2. Number of Stand Posts used
56. All households interviewed
have easy physical access to public
stand posts. 96% of the households
interviewed said that there is a
stand post within 100m of their
house, while the remaining 4% said
that there is one within 200m. In all
cases, respondents said that it takes
them less than 10 minutes to walk
up to the public standpost from their
house.
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
CMC
DMMC
MMC
1 2 3 or more
number of stand posts used
Chart 3.4: Water collection trips per day
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
51.56%
21.09%
26.56%
35.48%
32.26%
32.26%
54.55%
21.59%
23.86%
57. Easy access has often led to
many trips to the public stand post
per day. In Colombo and Moratuwa,
most households make more than 3
trips per day to the public stand
post. Among some households
there is a tendency to access the
public stand post as and when the
need arises.
0%
58. However, irrespective of the
CMC DMC MMC number of trips to the public stand
Once Twice Three or more times
posts, all households store water in
their house. All households store
water for drinking purposes, while
about 92% store water for cooking.
The very few who do not store
water in the house are mainly those who either do not cook in their houses, or those who have
20

a public stand post very close to their doorway. In contrast, only about 25% - 30% store water
for bathing and washing purposes. Most of these households are those having certain types of
household members such as babies, young children, elderly and disabled persons.
59. Data on the water consumption levels by households were difficult to gather. Most
households were only able to provide estimates of how much water they store, and could not
estimate the water consumed at the stand post itself. Estimates of quantity of stored water also
often did not provide adequate data as respondents used non-comparable measures to report
their usage per day.
‘Difficult to say. In the house we use two buckets, two pots and one tank’
Male, Colombo, age 42
“Can't say exactly. We consume much water for bathing purpose at public stand
post and we use 2 barrels in the house”
Female, Moratuwa, age 26
60. However, difficulties in fetching and storing water acts as a curb on water consumption.
Several respondents noted that they do not use much water as they have limited the activities
that require water, such as cooking and bathing, to only once per day or per week as
applicable. This may indicate that water consumption would be more if the household had an
individual connection.
3.4 Estimates on monthly income and expenditure
61. Income data provided by the surveyed households indicates that close to 80% of
households have an income over Rs.10,000 per month. Mean income level is just over 18,000
per month. Disaggregated data by municipality shows that there is a greater incident of
(relatively) higher income households in the Colombo municipality area. In terms of sources of
income there is not much difference between the municipalities.
62. Comparing reported income with reported expenditure, it can be seen that there is
substantial correlation, which increases the likelihood that reported income data is accurate.
Close to 84% have monthly expenditure in excess of Rs.10,000. Per capita expenditure
calculations indicate that about 45% of households are below the Colombo District poverty
threshold of Rs.3,216/- 7 . This would confirm that there is a relationship between poverty and
lack access to basic services in the Greater Colombo Area.
63. Because it is difficult to assess the validity of reported income data, income levels were
cross checked with observations and responses regarding household assets. These indicate
some correlation between reported income data and ownership of assets such as refrigerator,
motor bike and three wheeler.
7 Department of Census and Statistics, February, 2009
21

Chart 3.5 Distribution by Income level, as reported by households
50.0%
45.0%
40.0%
35.0%
30.0%
CMC
DMMC
MMC
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

66. Out of 223 households who said they would like to have a private connection a private
connection, 5% household said “do not know” or “cant say now”. These were mainly cases
where the respondent was a dependent (such as spouse, mother etc) of the income earner,
and did not want to say an amount without the concurrence of the income earner. There were
also households living on rent who did not want to commit without discussing with the owner of
the property. These instances, as well as our field observations, indicate that households took
the WTP question seriously and did not provide wildly unrealistic responses.
67. Overall, households indicated a range of willingness between 0 to Rs.15,000 as their
willingness to pay. 1% households said that while they would like to have a connection, they
cannot afford to pay anything for the connection. The mean willingness was Rs.3,271.44. They
were sure that they could afford these amounts. However, they also indicated that they would
very likely be able to pay a slightly higher amount where the mean willingness was Rs.5,070.27.
The distribution is skewed to the left indicating that 50% of the sample would pay less than the
mean WTP.
68. To understand the factors that affect willingness to pay, WTP was compared across
households with different characteristics, which were identified through the research design as
well as the qualitative data collection. These include:
• living conditions, including housing structure, ownership of lands, space available
• characteristic of household members, such as disabled, elderly, young children
• income level and sources, as well as ownership of assets
• quality of current water services, including whether the household has experienced
problems with using the public stand post.
69. Statistically significant correlations (at 5% level) were found in relation to the
• Income and assets, as shown by access to salaried employment, having a TV,
three wheeler or land telephone, household electricity connection, having funds
to meet the connection fee and uses LPG for cooking
• Quality of current water services as shown by households who have faced
problems using the public stand post and those who have already tried to obtain
an individual water connection.. The number of stand posts a household has
access to is positively correlated with willingness to pay, which may indicate also
the problems faced by households in crowed settlements
23

Chart 3.6 Willingness to pay
24

Table 3.7: Significance of household characteristics in understanding the variance in relation
to mean amount willing to pay (very likely)
1 0 Sig. (2-tailed)
respondent is female =1 4,943.36 5,387.55 0.447
hh has funds available fo meet connection fee =1 5,305.75 3,892.89 0.045
hh faced problems in using stand post =1 5,701.71 4,244.55 0.006
hh with 5 or more members = 1 4,912.28 5,198.30 0.590
hh with children under age 5 =1 4,549.42 5,431.51 0.099
hh with disabled =1 6,437.67 4,987.40 0.201
salaried employment yes =1 5,892.91 4,350.46 0.003
living in house for more than 5 years =1 5,295.16 4,681.83 0.262
hh has permanent ownership of the land =1 5,041.37 5,114.49 0.892
hh has permanent roof, floor and walls =1 5,436.27 4,750.03 0.194
hh has metered electricity =1 5,665.59 3,649.19 0.000
hh uses LPG for cooking =1 5,827.71 4,341.15 0.004
more than 2 rooms 5,165.21 4,961.77 0.700
hh has private toilet =1 4,595.27 5,273.84 0.238
hh has access to more than one stand post =1 5,733.66 4,150.58 0.003
Going to the stand post more than twice a day =1 5,167.43 4,952.65 0.685
hh would consider obtaining a oan facility = 1 5,241.04 4,735.96 0.357
hh has other costs if connection is obtained =1 5,093.60 4,989.38 0.869
hh has tried earlier to get a connection =1 5,975.05 4,247.75 0.001
hh has a tv =1 5,982.32 3,206.52 0.000
hh has a motor bike =1 5,121.234 3,745.759 0.509
Hh has a three wheeler =1 9,166.92 4,821.99 0.000
hh has a land telephone =1 6,946.00 4,669.10 0.001
Source: HH survey
70. Using the variables which show a correlation with WTP, regression modelling was also
carried out to understand what factors are most important to determine willingness to pay.
Regression output also indicates that the willingness to pay is strongly correlated with income
characteristics of the household. In addition to being correlated with income level of the
household, the willingness to pay amount showed a statistically significant correlation with
variables which relate to household wealth such as having a TV, land phone, or three-wheeler
in the house, and having a permanent roof. It was also correlated with the number of stand
posts available, which indicates that the difficulty of accessing a stand post is linked to how
much a household would be willing to pay to switch to an individual connection. If the
household had already tried to obtain a connection there was a positive correlation with the
amount. The regression results for the dependent variable (i) willingness to pay for sure; and
(ii) willingness to pay very likely, are shown in Box 3.1.
71. The regression shows that there is a positive correlation between income and
willingness to pay – that is higher the household income, higher the willingness. This indicates
that the data is capturing ability to pay, as households are not responding to the question as a
hypothetical one but as a real question.
25

Box 3.1 regression results for dependent variables willingness to pay for i) sure
& (ii) very likely
Regression Output 1: Yes for Sure
Model
1
(Constant)
more than one stand post
logmincome
tried earlier
tv
metered electricity
Coefficients a
Unstandardized
Coefficients
a. Dependent Variable: Ln(connection yes for sure)
Standardized
Coefficients
B Std. Error Beta
t Sig.
3.715 .713 5.213 .000
.205 .094 .134 2.182 .030
.377 .075 .320 5.011 .000
.141 .097 .094 1.454 .148
.197 .122 .122 1.619 .107
.210 .123 .127 1.704 .090
Model
1
Model Summary
Adjusted Std. Error of
R R Square R Square the Estimate
.494 a .244 .226 .66428
a. Predictors: (Constant), metered electricity, more than
one stand post, logmincome, tried earlier, tv
Tried: HH has already attempted to get an
individual connection=1 else 0
Tv: Tv available in the household =1 else 0
Thr_wh: Three Wheeler available =1 else 0
Postm1: Stand post available more than
one =1 else 0
Tele_land : Land phone available =1 else 0
Logmin: mid income class interval
Proof: Permanent roof =1 else 0
Household size: number of members
Regression Output 2: Very Likely
Model
1
(Constant)
more than one stand post
logmincome
tried earlier
tv
gas cooking
Problem faced
Coefficients a
Unstandardized
Coefficients
a. Dependent Variable: Ln(connection very likely)
Standardized
Coefficients
B Std. Error Beta
t Sig.
3.900 .793 4.916 .000
.220 .104 .126 2.113 .036
.374 .085 .279 4.409 .000
.197 .105 .115 1.874 .062
.386 .116 .211 3.340 .001
.167 .104 .098 1.615 .108
.242 .104 .140 2.337 .020
Model
1
Model Summary
Adjusted Std. Error of
R R Square R Square the Estimate
.550 a .303 .283 .72676
a. Predictors: (Constant), Problem faced, tried earlier, gas
cooking, more than one stand post, tv, logmincome
72. Overall, the survey shows the following demand function for individual water
connections in the three municipalities of Colombo, Dehiwala-Mount Lavinia and Moratuwa. The
26

demand function shows that at a connection fee of Rs.5,000, 54% of unconnected households
in Colombo and almost 40% of unconnected households in Moratuwa are very likely to
connect, compared to 13% of unconnected households in Dehiwala Mount Lavinia. Stated
differently, the demand function shows that over 50% of households in CMC would connect if
the connection fee is Rs.5,000/-, while 50% of households in MMC would connect if the
connection fee is closer to $s.4,000/-. In DMMC, for 50% of the households to connect, the
connection fee would need to be between Rs,1,000 – Rs.2,000/-. The fact that the WTP for the
connection fee is clustering under Rs.5,000 may be due to respondents being aware of existing
programmes such as Ran Diya and Samurdhi targeting, which have similar connection charges.
Table 3.8 Demand function for individual water connections
% of the population who would, with certainty, take a private connection
Connection fee
at the give connection fee
Yes for sure CMC DMC MMC
500 89% 74% 92%
1,000 85% 55% 92%
2,000 74% 32% 74%
3,000 57% 19% 49%
4,000 36% 6% 25%
5,000 32% 3% 18%
6,000 10% 0% 6%
7,000 9% 0% 3%
8,000 8% 0% 3%
9,000 7% 0% 3%
1,0000 6% 0% 3%
15,000 2% 0% 1%
n =243
% of the population who would, very likely, take a private connection at
Connection fee
the give connection fee
Very likely CMC DMC MMC
500 89% 74% 92%
1,000 87% 55% 92%
2,000 81% 35% 84%
3,000 73% 26% 66%
4,000 60% 19% 48%
5,000 56% 13% 41%
6,000 39% 3% 16%
7,000 32% 0% 10%
8,000 27% 0% 8%
9,000 23% 0% 8%
1,0000 19% 0% 8%
15,000 13% 0% 6%
n =243
73. In terms of paying the monthly bill, most households indicated that they can afford to
pay between Rs.100 – 300 per month. There is a greater similarity across the three sites in
relation to WTP the monthly bill than the connection fee, and households in CMC and MMC are
willing to pay only marginally more per month than households in DMMC.
27

74. Correlation data shows that the amount households are willing to pay as monthly bill is
strongly correlated to income and having funds (either in savings or sufficient monthly income)
to meet this expense. There is also a link to expected use, as households with many members,
with children and also households with private toilets are willing to pay more as monthly water
bill.
Table 3.9 Demand function for monthly water bill
Monthly water
bill
% of the population who would, very likely, take a private connection at
the give connection fee
Very likely CMC DMC MMC
50 99.2% 96.3% 100.0%
100 97.5% 96.3% 96.4%
200 93.3% 85.2% 94.0%
300 85.8% 70.4% 82.1%
400 76.7% 40.7% 69.0%
500 65.0% 37.0% 64.3%
600 50.0% 25.9% 45.2%
700 40.8% 22.2% 40.5%
800 37.5% 22.2% 36.9%
900 33.3% 22.2% 32.1%
1000 31.7% 22.2% 31.0%
Chart 3.8 Willingness to pay monthly water bill
Monthly bill Rs.
1100
1000
900
800
700
600
500
400
300
200
100
0
Demand by municipalities
CMC
DMC
MMC
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
Population
75. Please see Annex 5 for demand function (connection and water bill) per site.
28

3.6 Requirement for (micro) loan financing and repayment preferences
76. Most households surveyed have taken loans at some point. This ranges from a high of
70% in Moratuwa to a low of 48% in Dehiwala-Mount Lavinia. The most commonly cited
reason for taking a loan is for a business or livelihood related reason. Loans to meet day to day
expenses, and house construction expenses are also common. Interestingly about 4% reported
taking loans to get an electricity connection to the house.
Table 3.10: Reasons for taking loans
% of
Reason
responses
livelihood or business related 15.38%
day to day 13.36%
house related 12.15%
electricity connection 3.64%
Occasion 3.64%
seetu for saving 3.64%
Pay debts 3.24%
Illness 2.83%
Vehicle 2.43%
Source: Household Survey
77. While close to 4% of the surveyed households reported that they have taken a loan to
obtain electricity connections, none reported that they had tried to obtain water connections
using loan funds.
78. In terms of sources for taking loans, the money lender was the most commonly
accessed source of loan funding in Colombo and Moratuwa areas. In contrast, there was a high
incidence of raising funds through seetu in Dehiwala – Mount Lavinia. The Sanasa Bank is also
accessed by a substantial number in Colombo and Moratuwa, while CBOs engaged in providing
credit also appear to be common, particularly in Moratuwa and Colombo. While just about 10%
of the loans taken were in excess of 50,000/-, over 65% of the households reported taking
loans in the range of Rs.5,000 to Rs.25,000.
Table 3.11: Credit sources accessed by surveyed households
Source CMC DMMC MMC
Money Lender 25.0% 16.1% 27.3%
Sanasa Bank 18.8% 3.2% 26.1%
Community Based Organisation 16.4% 9.7% 17.0%
Seettu 7.0% 45.2% 20.0%
Women's Bank 4.7% 3.2% 0.0%
Ceylinco Grameen Bank 1.6% 3.2% 3.4%
Mortgage 1.6%
Samurdhi Bank 0.0% 3.4%
Source: Household Survey
29

79. About half the surveyed population expressed a willingness to take a loan to obtain a
water connection. The highest incidence was found in Moratuwa where over 70% were willing
to take a loan. Willingness to take a loan are positively correlated with already having taken any
type of credit (including microfinance, seettu etc). It is also positively correlated with having
sufficient funds (in terms of savings or sufficient monthly income) to pay the connection fee.
80. A number of households reported that they do not like to take loans to obtain water
connections. The most common reason was concerns about not being able to meet repayment,
particularly in the absence of a regular or fixed income source. (This is the flip side of the data
reported above, where those who already have funds are more open to take a loan.) In
addition some households also expressed a general reluctance to be in debt.
It is a burden. We don't want to be in trouble by depending on anyone else's
money. Besides, we survive on our monthly salary and we are satisfied with
what we gain. We will never get in to trouble by having debts to pay.
Female, Moratuwa, age 38
We are Muslims. My husband respects his religion, we cant get any loan
according to our religion. My husband never takes loans.
Female, Colombo. Age 25
81. Among households willing to take a loan to fund the water connection fee, there is an
overwhelming preference for individual rather than group loans. For example, 93% in
Moratuwa, 87% in Colombo and 86% in Dehiwala-Mount Lavinia preferred individual loans.
The main problem articulated with group loans was the risk that if a member defaulted, other
group members would be required to pay up. The respondents appeared to feel that it was a
greater risk to themselves with a group loan than an individual one.
82. Among those who said they would be willing to take a loan, most preferred to take a
loan of under 10,000/-. However, there was some reluctance to specify an amount at this
stage, with a number of households stating that the loan amount would depend on the amount
that the NWSDB asked them to pay for the connection. Regarding the interest rate, over 40%
said that they would prefer a rate of 2% or less, while only about 30% said they would be
willing to pay more than 5%. However, in the absence of an actual loan amount, this data is
not highly reliable, and only shows a general perception about an acceptable or “fair” interest
rate.
83. Overall, the data on willingness to take a loan should be seen as indicative rather than
conclusive as households were not asked about a particular loan product but a general
question. The household decision may change if the loan scheme is perceived as favourable to
them, for example if the amount borrowed is small, the interest rate is low and the repayment
period is short.
30

4. Interventions to provide utility connections to the poor
84. This section provides an overview of the interventions / models used in providing poor
access to utilities. In the second part of this section, this overview is supplemented by a
discussion of institutional stakeholder perspectives regarding issues and concerns associated
with designing interventions / models for providing individual connections to households
currently served by public stand posts. The information presented below is based on the KPIs
and documents provided by institutions such as the NWSDB, Sevanatha, Women’s World
Banking and REEL.
4.1 Models for providing individual utility connections
85. The models which are currently in use either address constraints at the household level
(such as lack of funds to cover connection costs) or at the site level (such as lack of funds or
space to lay the main pipe to a site). These can be broadly classified into four groups; (i)
models which provide a subsidised connection charge or instalment based payment plan; (ii)
models involving micro loans; (iii) models which involve a public-private partnership; and (iii)
sites and services models. These are discussed below.
(i) Subsidised connection charges
86. During the last 5 – 10 years, on the request of the government, NWSDB has been
developing pro-poor water provision programmes. These have included provision of public
stand posts but have more recently focussed more on putting in place schemes for individual
connections at reduced rates. Presently several types of interventions are in place. Some are
available nationally (Samurdhi concessions), while others are for particular areas and structured
as separate focussed interventions (Ran diya) or built into general practices done on a case by
case basis by each zonal NWSDB unit.
87. The NRW Unit of the Western Province currently administers a programme called Ran
Diya that is the only targeted/focused programme under the NWSDB to converting public stand
posts in USS to individual water connections. This scheme has been in operation since 2,000
and covers only the CMC area. Some features of the Ran Diya scheme are given below:
• The connection fee is reduced to around 1/4 th (Rs 4,000) of the normal connection cost
(Rs 12,000 – 15,000).
• An initial down payment of around Rs 850 (Rs 250 + 600 (15% vat)) is required with
the rest being payable over a period of 37 months with the water bill.
• It aims to individual connections to all the households and remove or close all
standpipes (however in practice this has not always been possible).
• This scheme is supported by the NWSDB with no direct external assistance (only spill
over effects from investments into water service infrastructure expansions and
upgrades).
88. Initially tackled the rate of conversion was high but with time the rate has declined due
to constraints such as technical, infrastructure and space issues. Thus far this scheme has
converted over 1,070 public taps in 536 settlements and provided over 20,000 with households
31

connections. However, it is limited to CMC area and plans for expansion are constrained due to
lack of resources to do so.
89. Other schemes in operation provide individual connections at a concessionary rate of
around Rs 4,000 with varying staggered payment types in operation in the numerous zonal
areas of the NWSDB (i.e Kelaniya, Gampaha, Sri Jayawardenepura).
90. Concessionary rates are applied to those receiving Samurdhi benefits, in line with
state’s accepted method of identifying poor households. They are eligible to get a water
connection at a reduced rate, with a waiver on the capital cost. They pay an initial down
payment of approximately Rs.2,000, while a portion is recovered through instalments. This
scheme is available island-wide with no urban, rural demarcations.
(ii) Micro-loan schemes
91. A loan scheme to obtain utility connections was provided through the Power Fund for
the Poor (PFP) which was a supplementary project supported by the Asian Development Bank
(ADB) that piloted a micro finance loan scheme to enable poor rural households to access the
electricity main grid. This was carried out in 4 districts from 2004 – 2007. The project was
established with a US$ 1 million Microfinance Revolving Fund which would grant loans to
eligible households in the designated areas through the participating MFIs – the Sanasa
Development Bank Limited (SDBL) and Sarvodaya Economic Enterprise Development Services
(SEEDS). The MFIs were expected to recover the cost and engage in revolving this loan to
increase coverage of households. The loan amount was a maximum of Rs 15,000 and it covered
the Electricity Board’s connection costs and internal wiring within the house. The contribution
from the household was 20 % the total cost while the loan would cover 80 % of the cost. The
targeted number of loans in all four districts was 8,000 over the project period of three years,
commencing in 2004. By end 2007, the project had provided in excess of 9000 loans which had
enabled poor households to obtain grid-based electricity, which they had not been able to do
before.
92. No instances of loan schemes to obtain water connections were mentioned by any of the
KPI or households interviewed for this study.
(iii) Public-private partnerships
93. Water connections have also been supplied through Public Private Partnerships
projects such as a UNESCAP funded public private partnership for increasing water connections
to poor urban households. The project chose an area called Halgaskumbura (in Colombo) where
600 households were given individual connections with individual meters. Mobilising was carried
out by a local NGO (Sevanatha) to raise awareness and get the scheme going. A concessionary
connection rate and an instalment payment scheme was applied. Each household paid the up
front cost. A loan scheme was not applied. A private operator was selected through a bidding
process to provide the connection and undertake the minor maintenance, metering and billing.
The private party also undertook to upgrade the road network, through a grant as a part of the
pilot scheme from UNESCAP. This scheme is still operational and bill payments are reported as
good, with the private company also benefiting through a maintenance fee. It has not been
32

possible to convert all the taps, bathing areas and toilet blocks as some households did not
convert. The replication of this scheme has not been possible due to resistance and mistrust of
private sector involvement in water supply.
94. A similar scheme was then piloted with a CBO, Women’s Development Bank in
Bakery watte. Households were mobilised into a group, with a membership fee of 5 per month.
Connections were given to households that were selected as group members. The scheme put
in place a concessionary connection rate of Rs 4,500 per household, with an initial down
payment of Rs 1,000 while the rest was added to the monthly water bills. Households were able
to meet the initial payment while some paid the amount in full. Although they were mobilised
into a group, this scheme did not administer a loan to cover connection fees as the households
were ready to meet the costs. The cost and labour inputs of the connections were shared
amongst the NWSDB, the community and the CBO with financial and in kind contributions. Once
the scheme was underway, it was also extended to the remaining households that were not
connected initially. The public taps were removed, but the toilet and bathing places remain.
Payment of bills was reported as good with house to house collections by the CBO. The scheme
had run smoothly for a little over a year before they ran into difficulties due to water being
extended by the NWSDB to the near-by shops (outside of the settlement) from the same bulk
water supply. The community at Bakery watte were not happy with this issue and at present
payments have been discontinued for the bulk water. The CBO is trying to re-negotiate terms
and conditions with the NWSDB. They believe that the reason for this problem was due to
issues with the agreement between the CBO and the NWSDB on how their services would be
operationalised.
95. Some overall features of the public private partnerships projects are given below:
• Inclusion of an awareness and mobilisation process into the project
• Bringing in a third party to handle water service delivery
• Keeping to the national tariff structures.
• Collection of a service fee or membership fee by the third party for maintenance.
• Presenting an opportunity for a closer link between the service provider and the
community
96. The main problems encountered in terms of replication was the general mistrust of
private sector involvement in basic needs service provision by the public and institution officials,
and lack of proper agreements and operational procedures for third party involvement in water
service delivery.
(iv) Sites and services projects
97. While the above schemes concentrated purely on facilitating individual water
connections, for urban poor or communities in USS there are also initiatives both government
and donor funded that address upgrading the entire settlement or relocation of the settlement
dwellers. Slum upgrades on site itself have been carried out through donor funded projects.
These address multiple needs (all or some) of housing, access, drainage, health and /sanitation,
water and electricity services.
33

98. One such ongoing project is UN-HABITAT’s slum upgrade project in Moratuwa
targeting the USS of Usavi Watta, Alwai Watta and Dandeneyawatta. This project is done in
collaboration with the MMC, National Housing
Development Authority (NHDA) and a local
NGO called Janarukula 8 . Evidence of this
programme in operation was seen in
Dandeniyawatte during the pilot –
mobilisation had taken place and new homes
were being built for selected families (based
on need) with support for materials (1.5
lakhs). The community at Usavi watta had
stated that they were awaiting to be
resettled.
99. There are also programmes in place to
relocate and resettle communities from USS
in housing schemes. A programme currently
in place for this is the Sustainable Township
Programme in the Ministry of Urban
Development and Sacred Area Development.
Box 4.1: Poorwarama Road Slum upgrade.
The USS in Poorwarama Road was initially a
resettlement site given by the RDA to the people to
those displaced in the construction of Baseline road in
Narahenpita Area. This relocation took place during
2003-2004. At this stage Rs.25, 000 was given to each
household for making temporary shelter and two
standposts, 6 public toilets and an access road was
provided for these 87 families. Later, A JBIC funded
site upgrading project was implemented by UN HABITAT
and Sevanatha and the upgrade included components of
improving the roads, putting in infrastructure for
electricity, and water and sanitation facilities. This was
developed in consultation with a NHDA, CMC and other
state partners. The Randiya programme was introduced
to the community to facilitate the water connections at a
reduced rate.
Source: KPI Sevanatha
This programme is supporting the government plan to re-house 65,000 families living in USS in
Colombo. The Real Estate Exchange (Pvt.) Ltd (REEL) is a company set up in the Ministry to
manage it. The intention is to provide fully developed housing with infrastructure facilities to
free up encumbered prime land in the city to be re-developed to cross subsidise the urban
upgrade. Thus far, REEL has completed 3 housing projects (Sahaspura, Sinhapura stage 1,
Wadulusevan stage 1) with 781 units, freeing up 10.5 acres of land for redevelopment. Some
households in log gate lane site had been relocated through this programme (Sahaspura) and
others in the site are also expecting to be relocated and this was given as a reason for not
wanting individual connections at this time.
4.2 Institutional Perspectives on water supply improvements
100. In order to improve water services the institutions involved – the NWSDB, MCs as well
as other project partners such as NGOs/CBOs shared their perspectives on features or
components that have to be considered when putting in place individual water supply schemes.
These are general views of pro poor urban water supply schemes that were shared from their
experiences and not restricted to the sites where the survey was conducted.
Willingness to connect and affordability
101. In order to create a win-win situation of reducing the non revenue water and improving
access, concessionary rates have been an effective way to increase individual connections. This
is seen as necessary element of future water services projects for urban poor. The stakeholders
also agree that all households in a USS will not be able to afford the connection costs, while the
8 http://www.unhabitat.org – Moratuwa Slum upgrade project
34

issue of lack of space, private bathing/washing areas and attitudinal issues such as the right to
free water will also play a role in the decisions to connect.
Even though the water board is trying to provide individual connections, it is difficult to
get 100% connections. Most people cannot access an individual connection because
they have a very limited space and within that it is difficult to pipelines and drains.
- KPI Sevanatha
There is a sense of dependency on the part of the community on the government. This
culture of dependency should be eliminated. The fact that water was given to them
free had made them believe that it is right for them to get it free.
- KPI, Water Board
Infrastructure needs
102. The lack of finances for the infrastructure is seen as one of the main limiting factors,
especially for the institutions to provide the service.
The Water Board is now having financial difficulties and relies on donor funds to carry
out the new infrastructure development. As donors are keen on serving the USSs, we
have budgeted improving of water pressure via the donor budgetary allocation.
However, the water board does not have monetary capability to do it under its regular
budgetary allocations for operations and maintenance that covers routine work.
- KPI, Water Board
103. Stakeholders also advocated for more holistic interventions where individual water
connections must also address other needs, especially of drainage and sewage management as
water connections themselves don’t improve the conditions.
There will be issues regarding the grey water disposal, especially as there will be
increased use. Therefore the projects should be designed considering grey water
disposal. Projects can be implemented in USSs where a sewerage system exists.
Otherwise a sewerage system should be established before this project if there is no
sewerage system.
- KPI CMC
The objective of the provision of individual connections should aim to make people
feel that they are elevated from the state of slum dwellers. Parallel to the provision
of water, the other infrastructure like drainage, internal roads within the site should
be improved. Water provision should one of the development activities within the
site.
- KPI Sevanatha
35

Other Project elements
104. Looking at increasing coverage and from past models tried out it was stated that group
efforts, rather than individual efforts should be encouraged to access water connections, so that
the difficulties of laying pipes in a congested space and the cost is minimised. The need for
awareness and mobilization aspects to be built in to get the desired participation was also
highlighted. Third party involvement was also seen as positive feature that can enhance bill
collection, and improve maintenance, however that it must be done with proper procedures in
place.
5. Conclusions and Recommendations
105. The objective of this study was to understand the demand for water services among the
urban poor in Sri Lanka. The study confirms some of the hypothesis generated by the literature
review and key person interviews relating to what is known about providing services to the
urban poor and provides some additional insights, summarised below.
5.1 Conclusions
106. There is very little systematic data regarding water services to the urban poor in Sri
Lanka. Available information point to a concentration of sites without individual connections in
the Greater Colombo area, but this is also linked to lack of reliable data about other urban areas
in the country. In the Greater Colombo Area, the largest prevalence of public stand posts is in
Colombo, but Moratuwa and Dehiwala Mount Lavina also have a sub substantial number of
under-served settlements where households obtain their water from public stand posts.
107. The study finds only a small number of households who do not have individual
connections live in sites where there are no individual connections. In other words, most sites
are mixed, with some households having connections while others do not. Site level constraints
are mostly relating to technical considerations, such as lack of pressure in the site at 56+145 Sri
Sangaraja Mawatha (CMC), or lack of access/space to lay water pipes such as in 187 Galle Road
(CMC). There are also several sites, particularly in the coastal areas of MMC and DMMC which
are affected by the tsunami buffer zone, and plans to provide individual connections have
stalled while alternative programmes to relocate the households are being discussed. Finally,
there are special cases such as the CGR quarters where housing conditions are poor, but there
is no clear responsibility about who should bear the costs of the upgrading.
108. The study also found that the legal status or unauthorised nature of the settlement
location – canal banks, railway reservation etc, was not a limiting factor for conversions as
initially expected. These sites were found to have households with connections and permission
being granted by the respective authorities.
109. In 45 out of the 51 sites field verified in CMC, MMC and DMMC, some households have
connections while others do not. This indicates that many constraints are at the household
rather than site level. Household constraints are mainly financial, but also because these
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households are not aware of a clear criteria and process to obtain initial connections. Our
interviews with KPI revealed that there are a number of schemes, with small modifications,
available in the Greater Colombo Area which involve a concessionary connection fee and an
instalment based payment scheme. These however are mainly provided at the site, rather than
at the household, level.
110. The study attempted to understand if there is a potential market for individual house
connections for water services, and whether poor households are willing to pay for an individual
house connection and how much they would be able to afford. The survey revealed that there
is a high degree of preference for individual house connections among the poor. In particular,
women articulated a saving in terms of time and effort, as did as households with elderly,
disabled and young children. In line with other studies carried out on this issue, the main
problems articulated with the public stand posts relate to wastage of time, lack of privacy, and
problems with neighbours sharing the facility. Demand for private connection therefore was
found to be high among the surveyed population.
111. In terms of willingness to pay, the survey found that households articulated their ability,
rather than willingness, to pay. The regression output found that the amount reported strongly
correlated with income and proxy variables of income, and was not found to be highly
correlated with factors that affect demand, for example, having elderly, disabled and young
children in the household. There is also a variance across sites, with households living in the
CMC and MMC areas and households living in larger sites reporting a higher willingness to pay
to connect.
112. Overall, the survey shows the following demand function for individual water
connections in the three municipalities of Colombo, Dehiwala-Mount Lavinia and Moratuwa. The
demand function shows that at a connection fee of Rs.5,000, 54% of unconnected households
in Colombo and almost 40% of unconnected households in Moratuwa are very likely to
connect, compared to 13% of unconnected households in Dehiwala Mount Lavinia. Stated
differently, the demand function shows that over 50% of households in CMC would very likely
connect if the connection fee is Rs.5,000/-, while 50% of households in MMC would connect if
the connection fee is closer to $s.4,000/-. In DMMC, for 50% of the households to connect, the
connection fee would need to be between Rs,1,000 – Rs.2,000/-.
113. Because there is a gap between what the households identified as what they are able
to pay for a household connection, and their expected utility from a household connection, the
data indicates that there is a potential for a financing scheme to help households to obtain
household connections. About half the surveyed population indicated a willingness to obtain a
loan, and this was mainly those who had already taken loans for various household needs.
Those who said they did not have funds to pay for a household connection were also not
enthusiastic about obtaining a loan to get a utility connection, because they were worried about
their ability to repay.
114. However, this data is only indicative as the surveyed households were not asked about a
particular loan programme, and their willingness to take a loan may change if the terms of the
loan, such as amount, interest and repayment period, are in line with their ability to repay. Most
households were new to the idea of taking a loan to finance utility connection as most available
water schemes involve a concessionary rate and an instalment payment system.
37

115. The survey results indicate that poor households would benefit from individual
connections but there are many other issues that also need to be taken into account. Some
urban poor are living on sites that have been ear marked for relocation, and their basic
services, which are of low quality, are not being upgraded. Some poor households, particularly
in Colombo, would not be able to make full use of a private water connection due to the size of
their house plot and lack of drainage channels, and would need to rely on public toilets and
baths even if they are provided a private water connections. There is an over-riding question
regarding what is “pro-poor” water services, and existing literature suggests that a one-size-fitsall
answer may not meet the needs of the poor.
5.2 Recommendations
116. The study indicates that there are many existing programmes which are successfully
providing pro-poor water connections, which are constrained from expanding due to resource
constraints. These, such as Ran Diya, can address the issue with minimum need for capacity
building and other ancillary resource use. At present Ran Diya is confined to the CMC area and
is limited ability to expand due to resource constraints.
117. Survey results also indicate that poor households have very little information about
existing programmes that they may be eligible to access, and the process to follow, particularly
within the NWSDB and municipality bureaucracies, to obtain such access. There is a need to
systemize and disseminate to households information on available programs to ensure that poor
households are able to take advantage of such programmes where possible, but also to ensure
that they are not marginalised due to lack of information.
118. In most sites, drainage is a major problem which can be exacerbated by programmes
which focus only on individual water connections. Any programme to provide pro-poor water
services also need to address how the household will be provided adequate drainage and where
applicable, sewerage connections.
119. In some sites where there are no individual connections or large parts of a site do not
have connections, the problem is site-specific – such as technical and space constraints. These
are mostly found in the CMC area and require a holistic and innovative solution in consultation
with the community and NWSDB.
120. The survey shows that there is substantial demand for individual water connection
among households who are currently using public stand posts, but many are unable to translate
this demand into a demand function that would show up in the market. The gap between the
value they place on individual connections and ability to pay for connections indicates the need
for financing – through concessionary connection charges and/ or loan financing. However,
those who are willing to take a loan to fund a private utility connection also tends to be the
better off among the poor, indicating that a concessionary/ subsidised scheme would be
necessary to target the poorest households.
38

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