Enhancing Financial Sustainability of Urban Water Supply Systems in Bhutan: A case study of Thimphu Thromde (Municipality).

Abstract

In almost all existing Urban Water Supply systems in Bhutan, one major issue confronting the sustainability aspect is the lack of adequate financial resources thereby failing to achieve the intended level of performances in terms of service delivery. Recognizing the poor financial scenario of the systems at the moment, it is deemed necessary to adopt necessary measures/interventions to help improve the existing financial situation and to ensure the optimum level of operation and maintenance. To further substantiate the findings and assessments, a case study for Thimphu Water supply systems was carried out through a conventional approach to examine specific interventions that are deemed vital to address key issues and challenges. In conclusion, based on overall findings and assessment, recommendations have been proposed that are in principle, implementable across all existing urban water supply systems in Bhutan because of the reasons that all water utilities across the country are managed/operated in the same manner as Thimphu Thromde including the organizational set-up of the existing water supply management, mode of financing, availing donor assistance for capital investments, seeking tariff revisions, system designs, amongst others and such parameters are regulated by the Ministry of Infrastructure and Transport. The adoption of the proposed measures, particularly addressing of the ‘non-revenue water’ and conduct of advocacy measures on water conservation would significantly help the water utilities enhance the financial sustainability of the systems thereby resulting in overall improvement in the delivery of water services to the consumers.