The Discrepancy in Water Sales Prices in Palestine: Social Equity for the Household Customers and Financial Performance of the Water Service Providers رسالة ماجستير

Abstract

According to the Palestinian Central Bureau of Statistics there are some considerable discrepancies in important economic indicators among the various Palestinian areas. The prices of some goods and services are high in a given area, while in other areas the same goods and services may be lower significantly. That is, the water price is NIS 1.54 per cubic meter in Qalqiliya city, which is lower by more than three times than the water price in the Ramallah city which is at NIS 6.78 per cubic meter. discrepancy in water prices leads feelings lack of inequality in social justice among people in given city and another. In total this feeling may increase and affect the stability of communities and society. Therefore, the local and community development process would be negatively affected. Hence, it is necessary for government and policy makers to monitor these differences, their size, their drivers, their focus, to provide community sustainability and prosperity. This thesis aims to study the discrepancies in water price of the water service providers in the West Bank and the Gaza Strip, and to correlate these discrepancies with the financial and technical performance indicators such as the per capita, non-revenue water, staff productivity, operating cost. It is important also to know the direction of the relationship between the average water price and the performance indicators while positive or negative relationship. To achieve the expected results, this thesis will test by conducting Multivariate Analysis of Variance (MANOVA) the relationship and significant impact of average water price as predictor over many dependent parameters. The sample size in this thesis has included all water service providers that deliver water services to more than 80% of the Palestinian population. The study shows that there are more than 250 water tariffs in the West Bank and the Gaza Strip for about 273 Water Service Provider in Palestine. There is also a significant difference in the performance indicators for water providers based on the average water price. The low price category of water service providers is the worst category in performance. The low price category includes the highest percentage of water losses, the lowest collection rate of the accumulated debts, the highest percentage of water consumption, the lowest productivity of staff, and the highest percentage of financial losses. These indicators are particularly give the decision makers the worries about the sustainability of water sector especially that there is, 44% of water service providers falls under this category.