Lower-cost technologies have significant potential to improve public health. The very high cost of servicing small and isolated towns in PNG through reticulated WSS systems means that lower-cost alternatives should be considered. Water prices have risen and will rise further with the Independent Consumer and Competition Commission's (ICCC) regulatory contract with the Waterboard. This improves the commercial environment for the Waterboard, which it may be able to exploit if it can provide improved services more efficiently. However, water prices are unlikely to increase enough, even in the medium to long term, to financially justify reticulated WSS systems throughout urban PNG. Alternative models for providing WSS services should be considered that aim to alleviate capital constraints on reaching customers. The actual costs of reaching urban customers e.g., approximately $3,900 per user for the sewerage upgrade under the loan project in Madang, compared with $212 per user for septic tanks in Madang or $150 per user for ventilated improved pit latrines in the LCS-CAHE Program is evidence that far cheaper solutions are available. Alternative providers of these services, in competition with the Waterboard, should be encouraged if the Waterboard is unable to offer lower-cost alternatives. In Wabag, the investment cost of $6.3 million to serve 6,000 beneficiaries, at $1,050 per person, may be sustainable if all water supplied is paid for. Currently, only 29% of consumers pay their bills, a figure that is expected to significantly increase as the user-pays principle becomes established in Wabag.
Provincial Towns Water Supply and Sanitation Project