Wednesday, December 4, 2013

The WTP Dilemma


Willingness to Pay Surveys, as they are called are designed to assess the mindset of a population on paying for a service provided under a certain project. Environmental Impact Assessment consultants use these to determine readiness of a population to accept a tariff system on a service, mostly potable water supplies. 

As Maldivian islands are small, there are no freshwater lakes of suitable quantities on islands to be used for daily utilities (yes, I am perfectly aware of freshwater ponds, or Kulhi, in some of the islands, but they are not suitable for daily use by an island community as far as I can tell). There, however is a freshwater lens in all the islands big enough to support a human community. These, unfortunately are not immune to extensive pumping and pollution. There are two main practices in Maldives which renders the said resource unsuitable for use as potable water. The first, disposal of raw sewage to the ground; this pollutes the groundwater, contamination of the lens by fecal bacteria and resulting build up of sulphur compounds in the water makes it smelly and a health hazard. Typical tradition in these island communities is to use rainwater for drinking and groundwater extracted from the freshwater lens for other daily utilities such as laundry, bathing and occasionally, cooking. The foul odor is of course a problem when this water is used for bathing and laundry. Bacterial content does have potential to cause skin diseases, urinary tract infections and digestive problems. In islands with higher population densities, groundwater is so polluted, it is unsuitable for household use. The second practice; using way too many water pumps. High levels of pumping cause freshwater lens to mix with saline layer underneath, causing groundwater salinization. This renders groundwater unsuitable for any use really. Rainwater is not a dependable resource due to its unpredictable nature. Hence, the ultimate "solution" is to opt for a reverse osmosis plant. By means of an island-wide pipe network, freshwater can be conveyed to households using a single plant. This, however is costly; hence the willingness to pay surveys. 

Operators of RO plants on island communities need income to continue operation. The most sensible answer to this problem is charging households for their water usage; but, how much should they pay? Fresh potable water is a basic human need. It should not be too expensive, but should be able to cover the operational cost at the very least. Ultimately, you come up with a tariff system based on operational cost and estimated water demand by the community. Finally, you see if the fee is acceptable to the community; so you go and ask them. 

When you go to an island to conduct a willingness to pay survey, you expect them to be well informed of the project. More often than not, majority of the people on the island do not even know about the project. That is very frustrating; because of something you say, the community may get angry at the island council, and who knows, Maldivians just love setting government buildings on fire and taking survey teams hostage demanding something unreasonable. Anyways, the point is, island councils and other responsible bodies should do their jobs properly. They were elected to serve as middlemen between the island community and government; it is their responsibility to inform general population what is going on. I seriously do not want to be held hostage just because island councilors are so goddamn lazy!