Strengthening the functioning of existing rural piped water supply systems is a critical strategy for ensuring household water security, particularly in water-scarce contexts. Improving operation and maintenance (O&M) of the systems is an important area of focus, commonly plagued by poor reliability and functionality over time. From an economic perspective, there is an opportunity to optimise O&M input efficiencies as a foundation for improved management. This paper presented challenges and opportunities to optimise O&M input efficiencies based on an analysis of water supply systems in Vietnam’s highland areas characterised by mountainous terrain and water scarcity. The analysis focused on state-based agencies for O&M given their mandate for restoring the inefficient systems and identified input norms for guidance on how to optimise O&M activities. We applied an input-oriented data envelopment analysis (DEA) model under constant returns to scale assumption to estimate technical, economic and allocative efficiencies. The results identified efficiency levels of 90%, 30% and 33% respectively. The study suggests a 10% reduction in general input amounts and identified efficient input target values reveal potential reduction rates for technical labour (12%), electricity (12%), as well as the technical and economic norms of technical labour (0.86 personday∙(100 m3)-1 water sold) and electricity (0.53 kWh∙m-1 water sold). The policy implications for O&M state-based agencies include the adoption of input-based contracting mechanisms, while the government is encouraged to approve water tariffs and provide compensation based on input items to promote water service supply as a public good in water-scarce and challenging areas.
In the Red River Delta (RRD) of Vietnam, small-pumping systems are one of main systems for paddy irrigation. It is imperative to analyze the operation and maintenance performance of irrigation systems by using the input factors when applying pricing mechanisms in the irrigation sector in Vietnam. In this study, based on the data of 48 irrigation systems managed by teams under irrigation companies, the non-parametric program, Data Envelopment Analysis, was used to measure the technical efficiency and scale efficiency for small-pumping scale irrigation systems in the Red River Delta. The seven input factors were the annual direct and indirect labor, materials, electricity, recurrent maintenance, overhead, and depreciation cost, and an output factor was the paddy areas irrigated by the systems. The results demonstrated that the average technical efficiency scores under constant returns to scale and variable returns to scale were 0.924 and 0.946, respectively. Thus, the wasted inputs were suggested to be 7.6% and 5.4% of the current input level, respectively. The average scale efficiency score was 0.977 and therefore, some 72.9% of the Decision-Making Units should adjust their input scales to achieve the efficiency in input factors.
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