In 2013, Dutch development policy shifted from aid to trade as the primary engine of sustainable, inclusive growth. In this interview, Mr. Christophe Leger of Vergnet Hydro reflects on the value of partnerships between the private sector and non-governmental organisations for building sustainable water services and for accountability to local governments.
Published on: 15/09/2014
Many water and sanitation services are dependent on development aid. But to make services sustainable, aid is not enough. IRC is a strong advocate of services, not gifts. To support service delivery, IRC argues for increased focus on the role of governments and the need for public financing. The private sector has an important role to play too.
In the run up to IRC's event on the Dutch Government's Aid and Trade agenda, we spoke with Mr. Christophe Leger, Technical and development Director at Vergnet Hydro, a company that supplies drinking water to isolated rural areas, especially in Sub-Saharan Africa. We asked him about the benefits of partnerships between the private sector and non-governmental organisations (NGOs) in order to build services that reach the poor and that last.
Leger sees finite technical and financial resources for both NGOs and some private company as a compelling imperative for more and better collaboration between the private sector and NGOs. "Working together and pooling resources serves the objective of achieving resource efficiency.
For our survival, we are keen to innovate but we need financing for testing new products. We are looking for NGOs that are willing to engage in an equal partnership. But, we encounter obstacles in working together with NGOs. Lots of NGOs consider us as a company that is just interested in making a profit. Also, small private companies like Vergnet Hydro do not always fit donors' requirements for partnerships, like the EC Water Facility. We are not allowed to submit a proposal through this tool. There is an expectation that we can contribute more money, but Vergnet Hydro is a small company of 25 staff with limited resources".
In his view, both the private sector and NGOs have the same objective: sustainable services, however, their approach it is different. But in the end, NGOs and private companies are accountable for the service they deliver."
In most cases, private companies are funded through contracts with governments or local public authorities. They are accountable towards the government. All is detailed in the contract: technical objectives, duties of each part, etc... In this context, nobody blames a company that uses its profits to design new product. I know many NGOs are funded by private donors or aid agencies and they do not have official contracts with the government. Of course, they work also for the needs of populations and they have a great closeness with populations they help. That is very laudable and commendable, but I think that is not sufficient in term of sustainability. All NGOs should have to sign contracts with water departments. For a private company transparency with local public authorities is essential, says Leger.
A public private partnership can benefit from the experience of the private sector in finding professional solutions for sustainable services and in terms of accountability. Ideally this partnership will be based on mutual trust where technical experts working in the field can share their skills. This can be a win-win relationship.
Leger is convinced that together the business and the aid world can provide sustainable services. "Maybe in 5 or 10 years we will grow to a more balanced and harmonious relationship. We might not get all the answers right now – but perhaps we can start some rules or find a kind of Code of Conduct that will bring us to a closer relationship between the private sector and charities."
IRC's upcoming event on the 17th of September "The limits of aid, the future of trade?" presents a good opportunity for rethinking new ways of cooperation as it will focus on the implications of the Aid and Trade for development in the WASH sector. It is a magnificent opportunity for professionals to network, discuss and understand how this agenda will affect the way that different actors in the WASH sector work.
To find out more about the IRC event 'The limits of aid, the future of trade?', follow the links below this article.
About Vergnet Hydro SAS
Vergnet Hydro SAS is committed to supporting sustainable development in rural water supply. It helps meet people's vital needs for water anywhere in the world by offering innovative and adaptable products, as well as services that use renewable energy resources.
Vergnet Hydro SAS has dedicated more than 30 years to developing efficient and long-lasting relationship with communities, governments, NGOs, international agencies and private customers. The organisation has supplied, rehabilitated and built water tanks and water supply networks, in Niger, Burkina Faso, Mali, Ivory Coast, Benin, Congo, Chad, and Indonesia in rural as well as in semi-urban areas. It also operates rural water services in Burkina Faso.
by Caridad Camacho and Carmen da Silva Wells
