2014年-世界发展银行全球_Socialist_Republic_of_Vietnam___Review_of_Urban_Water_and_Wastewater_Utility_Reform_and_Regulation_86页_1mb

Summary of Vietnam Water Sector Reform and Regulation Review

Core Content

This report, prepared by the World Bank Water & Sanitation Program (WSP), reviews the current status and challenges of urban water and wastewater utility reform and regulation in Vietnam. It was requested by the Ministry of Construction (MOC) and aims to provide guidance on reforming state-owned enterprises (SOEs) in the water sector and improving economic regulation for service providers. The review emphasizes the need for reforms to be inclusive of poor populations to ensure equitable access to water and sanitation services.

Main Objectives

• To provide guidance and recommendations for the reform of state-owned enterprises in the water and sanitation sector.
• To advise on economic management options for service providers.
• To ensure that reforms are implemented in a poor-inclusive manner.

Key Findings

1. Current Urban Water Supply Enterprise Equitization Program

• The equitization program started in 2002 and is still ongoing.
• As of June 2014, only 23 out of 79 water and wastewater utilities had been equitized, with only three equitized since 2011.
• The program involves transferring utilities from provincial government control to autonomous entities, while retaining a majority shareholding by local governments.
• The process of equitization is slow and faces several challenges, including:
  • Inadequate tariffs and revenues leading to financial and operational unsustainability.
  • Lack of clear contractual relationships between Provincial People's Committees (PPCs) and utilities.
  • Undervaluation of liabilities, particularly those related to underground infrastructure.
  • Limited attractiveness of some utilities to investors due to small size and location in poorer provinces.
  • Diversification of utilities into non-core businesses that may undermine public service goals.
  • Fragmentation of core utility services into separate entities.
  • Insufficient capacity of utility management to implement reforms effectively.

2. Sector Performance

• Water utilities in Vietnam have made progress in areas such as coverage and bill collection.
• However, key operational indicators like Non-Revenue Water (NRW) and drinking water quality suggest ongoing challenges in asset maintenance, operation, and investment.
• International benchmarking shows that Vietnam has low operating costs and tariffs, but this is not reflected in service quality or continuity.
• The sector lacks a functioning regulator, which hinders effective economic regulation.

3. Regulatory Framework

• Regulation for health, water resources, and environmental aspects is managed by the Ministry of Health (MOH) and the Ministry of Natural Resources and Environment (MONRE).
• Neither ministry is solely responsible for regulating the water and wastewater utilities; they set standards and monitor compliance.
• Day-to-day monitoring is conducted by PPCs and utilities, with ministries checking results.
• There is a lack of enforcement mechanisms and customer grievance procedures, leading to poor service delivery and unresolved disputes.

Key Recommendations

1. Economic Regulation

• A central independent regulatory authority (Water Regulatory Authority of Vietnam - WRAV) is recommended, based in Hanoi with regional and local offices.
• This authority should be established by statute with a clear mandate, authority, and resources.
• It should be responsible for:
  • Setting standards for service delivery and water quality.
  • Monitoring costs and performance.
  • Setting tariffs based on service standards, business plans, and financial sustainability.
  • Ensuring that all utilities, whether state-owned or equitized, comply with economic and financial obligations.

2. Implementation of Decree 117

• The review recommends the full implementation of Decree 117, which outlines contractual arrangements between PPCs and utilities.
• This would help establish a formal and binding relationship between the government and service providers.

3. Sector-Wide Improvements

• The development of a standard contract form based on Decree 117.
• Creation of a Policy Circular on tariff setting.
• Institutional development to support the regulatory system, including capacity-building programs for stakeholders.
• Identification and prioritization of investment needs and funding sources to support key developments.

4. Customer Protection and Equity

• Establishing independent consumer representative groups to safeguard customer interests.
• Developing policies to ensure affordable tariffs and service access for low-income households.
• Implementing an appeals procedure for regulatory issues involving PPCs, utilities, and customers.

International Experience and Lessons Learned

• Four main regulatory models were identified: separate regulatory agency, regulation by contract, hybrid model, and self-regulation.
• The regulation by contract with a separate national regulator is considered the most appropriate model for Vietnam.
• Key lessons from international practice include:
  • Integration of regulation for both water supply and wastewater services.
  • Clear mandates and enforcement powers for regulatory bodies.
  • Flexibility in regulatory mechanisms.
  • The need for time and resources to build capacity and establish effective regulation.

Roadmap for Reform

• Design and establishment of the regulatory framework.
• Creation of the Water Regulatory Authority (WRAV) and local regulatory offices.
• Initial regulatory activities including the implementation of Decree 117 and the development of standard contracts.
• Capacity-building programs for the regulator, PPCs, and utilities.
• Prioritization of investment needs and funding sources to support service improvements.

Conclusion

The review highlights the importance of establishing a central independent regulatory authority and implementing Decree 117 to improve governance and economic regulation in the urban water and wastewater utility sector. It also emphasizes the need for poor-inclusive reforms, effective tariff and funding structures, and enhanced service quality and equity. The proposed roadmap outlines a structured approach to achieving these goals through institutional development, capacity building, and regulatory implementation.