I 463 TEIE WORLD BANK Transportation, Water, and Urban Development Department TWU 21 THE GERMAN WATER AND SEWERAGE SECTOR: HOW WELL IT WORKS AND WHAT TEIS MEANS FOR DEVELOPING COUNTRIES February 1995 A report based on a study tour prepared by John Briscoe Water and Sanitation Division The World Bank 1818 H Street, NW Washington, DC 20433 THE WORLD BANK Transportation, Water, and Urban Development Department TWU 21 THE GERMA1N WATER AND SEWERAGE SECTOR: HOW WELL IT WORKS AND WHAT THIS MEANS FOR DEVELOPING COUNTRIES February 1995 A report based on a study tour prepared by John Briscoe Water and Sanitation Division The World Bank 1818 H Street, NW Washington, DC 20433 Copyright 1995 International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 Printed March 1995 This document is published informally by the World Bank. Copies are available free from the World Bank Contact Ms. Mari Dhokai, Room S4-00 1, telephone 202-473-3970, fax 202-477-0164. The World Bank does not accept responsibility for the views expressed herein, which are those of the author and should not be atlnbuted to the World Bank or its affiliated organizations. The findings, terpretations, and conclusions are the results of research supported by the Bank. The designations employed and the presentation of the material are solely for the convenience of the reader and do not imply the expression of any legal opinion whatsoever on the part of the World Bank or its affiliates concerning the legal suttus of any country, tritory, city, area, or of its authorities, or concerning the delimitations of its boundaries or national affiliation. Contents Part 1: Objective of, Audiences for and Caveats about the Report I Part 2: A Brief Description of the Study Tour 2 Part 3: Some Stylized Facts About the Institutional structure of the Water and Sewerage Sectors in Germany 3 Part 4: Positive and Negative Features of the German Water Industry 4 Issue 1: Costs, efficiency and incentives 4 Item 1.1: High costs to consumers 4 Item 1.2: Tariffs, pricing and economic regulation 5 Item 1.3: Structural issues 6 Item 1.4: Private sector involvement 7 Item 1.5: Insufficient cost consciousness 8 Issue 2: Environmental standards and regulation 10 Item 2.1: Water and wastewater standards 10 Item 2.2: Financing of wastewater services 11 Issue 3: Participation 12 Item 3.1: How consumers are viewed by the industry 12 Item 3.2: The decline of participation in water resources management The Ruhrverband story 13 Part 5: Lessons for Developing Countries 15 Endnotes 16 Annex 1: List of Documents Provided to the World Bank Team 19 Annex 2: Summary of Post-tour Evaluation by World Bank Staff Members 22 Some basic facts about Germany Population of Germany - about 80 million Population of former East Germany - about 1 5 million GDP/capita - about $23,000 ($20,600 in purchasing power parity) Exchange rate: 1.6 DM = 1 US $ The German Water and Sewerage Sector Part 1: Objective of, Audiences for, and Caveats about the Report The World Bank annually lends about US$ I First, in all countries the water sector is a billion for water supply and sanitation projects product of a long and complex history, and in the developing world. In order to provide its deeply embedded in the particular cultural, borrowers with high-quality services, the Bank political and social fabric of the society. In a gives priority to ensuring that its staff are week, albeit an intense and well-organized one, familiar with the best water supply practices it was obviously not possible to visit a large throughout the world. To this end, in recent "representative" number of operating entities. It years World Bank staff have conducted "study is also obvious that outsiders can only scratch tours" of England, France and Spain. Between the surface of this complex reality under such October 10 and 15 of 1994, twenty World Bank circumstances. Furthermore, we have digested staff members toured the German water only a smal! proportion of the large amount of industry. This report is a result of that tour. written information which was supplied to us. Accordingly it is certain that there will be many By way of introduction to the report, three subtleties and complexities which we did not remarks are in order. First, the tour was an understand. excellent learning experience for the staff involved. As with all learning experiences, this Second, this report makes no attempt to provide process is complete only once some effort has a detailed description of the structure and been made to systematize the impressions gained performance of the German water sector. during the tour. This back-to-office report (Annex I provides a summary list of the represents an attempt to complete that learning extensive information provided to us. The 1994 process for the World Bank participants. paper of the Ministry of the Environment, titled Water Resources Management in Germany, Second, as always, it was not possible for most provides an excellent overview.) World Bank staff members interested in the water sector to participate in the tour. It was Third, the interest of the World Bank is heavily agreed that a formal back-to-office report would in the institutional and financial aspects of the be an effective mechanism for sharing that sector, and it was around these interests that the which we learned with our colleagues who were tour was organized. Accordingly, there will be unable to participate. relatively little commentary on important aspects of the industry (such as technology). Third, our German hosts were extraordinarily Fourth, although there is a certain generous in sharing their experiences with us. weltanschauwig which characterizes the On several occasions they remarked that they collective views Of '.Jorld Bank staff, there would like this to be a two-way process. were, inevitably and appropriately, differences in the conclusions drawn by different team Accordingly, one function ofthis report is to give members. This report should, accordingly, be some feedback to our hosts as a sign of respect seen as one which reflects many of the views for their openness and generosity with us '. held by many of the members of the study team, At the outset, four major disclaimers about this not as a report with which all of the team report should be stated clearly. members agree in every detail. I The German Water and Sewerage Sector Part 2. A Brief Description of the Study Tour The tour was organized and managed by Mr. recently obtained a 30-year concession Jorgen Krombach, who was formerly a senior contract for providing water and sewerage official in the infrastructure sector of both the services to the city of Rostock in eastern World Bank and KfW, with help from the Germany; German Technical and Scientific Society for * a private construction/consulting company, Gas and Water (the DVGW). This combination UTAG, in Halle, eastern Germany, which of inside knowledge of, and commitment to, the was previously the one of the state water client (the World Bank) and inside knowledge companies in the GDR, but has been bought of the German industry meant that this tour was out by Thames Water PLC of the United acclaimed by all participants as extremely well Kingdom, structured, organized and managed2. 2 the two branches of the professional association of German water and sewerage The tour included discussions with managers utilities (one, the DVGW, which focuses on and officials from: technical and scientific aspects, and one, BGW, which focused on financial, - the public utility in Wiesbaden in western institutional and political aspects); Germany , managed on the dominant * the association of German municipalities "Stadtwerke" model (of a semi-autonomous (the Deutscher Stidtetag or DST); municipal utility combining water, gas and * the German Association for Sewerage public transport services); Technology (the ATV) the Federal - the public autonomous utility providing Environment Ministry (BMU) with water and sewerage services to Berlin; oversight responsibility for the water sector, - a regional public water company providing * the State Government Ministry for the water and sewerage Environment in the eastern German state of - services to the city of Halle in eastern Brandenburg; Germany and some neighboring towns; a WIBERA, a nationally operating auditing * the one long-standing (about 100 years old) and management consulting company which German partially privately-owned provider specializes in water and sewerage (and other of water, Gelsenwasser, which provides municipal and state activities); water in bulk to some municipalities and to * the river basin f;nancing and management private customers in the Gelsenkirchen ama association for the industrialized Ruhr of the Ruhr, basin, the Ruhrverband; * a recently-formed French/German * the major German foreign assistance consortium named Eurawasser (with agencies responsible for policy (the BMZ), Lyonnais des Eaux, the French utility capital projects (KfW4) and technical company, and Thyssen, the Ger.Lan steel assistance (GTZ. conglomerate as the partners), which has 2 The German Water and Sewerage Sector Part 3. Some Stylized Facts About The Institutional Structure of The Water and Sewerage Sectors in Germany In western Germany water has long been a responsible for any or several public services municipal responsibility. Services are provided (including watx, gas, electricity and public through several models5, including: transport). For sewerage the most cornmon arrangement is direct management by the muni- a) Municipality-owned enterprises, which are cipality ((a) above). Irrespective of the forms of operated by the municipality within the service provision, customers often receive a framework of the general municipal single combined water and sewerage bill. administration; b) Municipal enterprises, which are operated In the former GDR water and sewerage services by the municipality as special property with were provided by regional companies known as independent bookkeeping (known as the WABs. Upon reunification, eastern German "Stadtwerke" model); municipalities felt that they were "given back" c) Municipal societies, which are enterprises in the responslbility that was taken away from the hands of the municipality, but operated them under communism by the creation of the under private law, and the WABs. For the most part the WABs have been d) "Operator model", in which operting bmken up, with most municipalities, even the functions are transferred to a private very small ones, setting up municipal water and entrepreneur, while legal responsibility sewerage companies. There were 15 WABs in remains with the municipality. the GDR; there are about 600 municipal water companies now in eastern Germany. There are a total of about 7000 companies in the water and sewerage sector in Gennany, with New forms for service provision are emerging, 1500 companies serving about 85% of the especially in eastern Germany. This includes population. The most common arrangement for some effort at involving the private sector, in a water supply is that services are provided by variety of ways (including management semi-autonomous municipal enterprises contracts, lease contracts and concession ("Stadtwerke7, (b) above) which may be contracts, and joint stock companies). 3 The German Water and Sewerage Sector PART 4: Positive and Negative Features of the German Water Industry We were positively impressed by many aspects Issue 1: Costs, efficiency and incentives (discussed in further detail in the sections that follow) of the German water industry. Item 1.1: High costs to consumers Customers are provided high-quality water and sewerage services. The industry is highly envi- The German water industry is a very high cost ronmentally conscious, and has made a major provider of services to consumers. As shown in contribution to the remarkable improvement in Figure I below (reproduced from tha the quality of the aqua-tic environment in Economist) shows that: western Germany. We were impressed, too, by the price of water in Germany is much the simplicity of the national water tariff law * the cest of all is Euch (which decrees that user charges should cover hidherth thercal other European and North American countries (twvice that in the full costs of providing water services) and Britain and three times that in the US, for compliance with this law. And finally, although example); and this was not the focus of the tour, we were ex a ter and impressed by the obvious technical quality of eran water pces are increasing faster , , ., *~~han prices in any other European or North many of the water and sewerage works which Ame country. we visited. These are great achievements, of which the The cost of sewerage services is similarly very German water industry is appropriately proud. high by international standards. The result is We were, however, als negativey ithat the average combined water and sewerage We we re, however,ealsonnwatir tariff is DM 6 (US$ 3.50) per cubic meter. For a by a number of features of the German waterr . . s~~~~~~amily of four. this amounts to an average and sewerage industry. These (also discussed in the sections that follow) include: annual bill of US $700. In some parts of eastern Germany, costs are much higher still, reaching a * insufficient attention to economic efficiency level of DM 15 per cubic meter, which means and costs; an annual bill for a family of four of about US$ * the absence of a discussion of the relative 1,500, or over 3% of disposable income. benefits and costs of high environmental There are two proximate causes for these very standards; high tariffs, namely the insufficient attention to * a lack of concem with the effects of high c and the high environmental standards. costs on consumers, costs on consumers, Underlying these causes is a complex set of * the dominance of political factors, to the attitudinal, structural, financial and political- detriment of service standards and costs, in economic problems (in our view!) with the the restructuring of the industry in eastern German water industry. Much of our attention Germany, Germanmo, in certain river basins, from on the tour was focused on understanding these o a moe, in ertai riverbasins fromproblems. Much of the rest of the report will be participatory to technocratic water resource problm.Mc of the retore w management practices. ~~an exploration of these factors. management practices. 4 The German Water and Sewerage Sector Figure 1. The cost of water. An international comparison of levels and rates of increase7 Water charges Cents per cubic metre, July 1994 o 20 40 60 o0 l00 120 140 160 Germany Australia Belgium I Holland - France I Britain I Finband- Italyl Sweden I Ireland - United States - South Africa Norway - Canada m wm . - Source: Naticnal UtirTyServices Item 1_2: Tarffl, Pricing and Economic For suppliers in easten Germany there have Regulation been consequences, too. Overall demand has dropped dramaticaIly, as a result both of he basic tariff law governing water supply and changed household behavior, and as a result of sewerage services is simple and sound tariffs the decline in industrial production. As a are set at the municipal leveL and by Federal consequence most eastern German water law are set so that the costs of service are suppliers have very substantial excess covered. The implementation of this sound tariff production capacity. law has had dramatic effects on both consumers and suppliers in the East since reunification. Many German municipalities (and the water and Since 1989 the average eastern German family sewerage services) are audited annually by has seen water and sewerage tariffs increase by WIBERA, an accounting and consulting firm an average of about 20 times (from a nominal founded in 1930 by the DST and now partially DM 0.30 per cubic meter). owned (49%) by Coopers and Lybrand. An interesting feature of the WIBERA audits is that There have been two consequences for they are designed to not only certify accounts, households. First, they have sharply curtailed but also to pass judgment on the efficiency of their use of water (with average consumption in the water and sewerage operations, and indicate the East dropping from an estimated 300 to 400 what actions can be taken to improve efficiency. liters per capita per days to about 105 liters per capita per day). Second, this conservation of WIBERA's overall approach seems sound, water notwithstanding, average water and namely to use indicators9 assess the level of sewerage bills in the East have risen by about investment and operations costs. We came 800%. away, however, with several concerns. First, 5 The German Water and Sewerage Sector WIBERA does not appear to use some shortcomings, shortcomings deriving from the internationally-accepted indicators (such as the lack of st lf-criticism in the western German number of employees per thousand connections) industry. which would (as described elsewhere in this report) highlight some of the causes for the high First it is relevant to note that the structure of costs. Second and more fundamental is the the western German industry (see Part 3 above) standard by which efficiency is judged. We deviates in important ways from that which is understood that the data used for generally acknowledged to be efficient, "benchmarking" were exclusively based on transparent and accountable. For instance, the German experience and inferred that utilities clean and dirty sides of the water cycle are were pushed to reform only if their costs were managed independently in most western high relative to other German utilities. The municipalities -- water supply is usually upshot, as we understood it, is that the review managed with other public utilities in a semi- process pushes utilities to be "on the German autonomous municipal company, while production frontiere, but does not push them to wastewater services are managed by a be on the (much lower cost) 'international department of the municipal government. In the production frontiee. past western German municipalities have also been the recigients of large state subsidies for However, it is relevant to note that Germany has capital costs also been a pioneer in the use of market instruments for the pollution control. In the These factors lead to some surprising facts industrialized Ruhr basin, the Water Association (which became apparent during the study tour). (Ruhrverband) gets all of its revenues from fees In Berlin, for example, prior to reunification - 15% from water abstraction fees and 85% there was a West Berlin Water Company and an from pollution fees. The Ruhrverband now uses East Berlin Water and Sewerage Company, each peak load pricing, and other sophisticated of which served approximately equa! number of pollution pricing methods. people. A priori we expected that the number of employees in the West Berlin company would Item 1.3: Strucuial issues be much lower than in the East, both because of (expected) higher productivity and because the Until recently the water and sewerage industry company in the West covered only water. To in most industrialized countries has been a self- our great surprise we learned that the numbers satisfied one, not given to looking critically at of ernployees were roughly equal, suggesting its own structure and performance. This has much lower productivity in the West than the changed markedly in several OECD countries East! (with the United Kingdom and Australia as striking recent examples) but has not yet The uncritical adoption of the western model in changed (with some striking but limited eastem Gennany has had other unfortunate exceptions) in Germany. This is illustrated well consequences in the East. The regional water when one examines the process of reforming the companies in the East (the WABs) have been eastern German water and sewerge industry disbanded as a vestige of communism. The after reunification. It would appear that the result has been the proliferation of thousands of guiding philosophy was simply to make "them' small, uneconomical municipal companies (the East) look like 'us", (the West). There which provide poor quality services at very high tumed out to be several very inportant costs. 6 The German Water and Sewerage Sector Item 1.4: Private sector involvement operation, Gelsenwasser continues to serve only the communities it originally served. In recent (a) In western Germany at present years there has been a partial change of heart in the board and management of the company and The role of the private sector is very limited some interest has been shown in foreign the water and sewerage sector in western opertions. Accordingly, Gelsenwasser has bid Germany. An important exception to this o tlatoecnrc nEsenErp general rule is the Glsenwasser company, o(where It was given a sharp lesson in the which operates bulk supplies and distributes to (ere aities ocmetng for "es'" market somne custc ers in the Gelsenkirchen area of rhaltdes appea ibl for Gels'enssr North Rhiet.Vestphlia. Founed by a hr. does appear possible for Gelsenwasscr, North Rhine/ b"estphalia. Founded by aanwhtGseasrmngmnti consortium of local municipalities and industrial ind in, isrelatiel lows opent is enterprises in the 19th century, this is a joint (suchested mn, agemn contrask which stoc- cmpay, ith221o ofitsshaes iretly(such as the management contracts which stock company, with 22% of its shares directly Mexico City has recently given to foreign publicly owned (by local municipalities) with an operators"I, as a first getting-to-know-each- additional 28% indirectly publicly owned (by other step on the road to greater private sector public sector industries in the area). involvement). World Bank staff were particularly interested in Gelsenwasr has some factors in its favor in Gelsenwasser for two reasons. First, to terms of intemational competition. It has a long understand how a partially private sector and mature relationship (like the French company would perform relative to the companies, and unlike the UK private water dominant stadtwerke model in western companies) with local government. It has a Germany. And second because of the World highly-trained work force. It indicated that it Bank's interest in having more private has prospective fnancial partners in the German companies compete for business in the financial sector who would be interested in the intemational water market. international water business. And it would, With respect to its operations in Germany, presumably, have the assistance of the German , . ..... . ~~~~~government in penetrtinng foreign markcets. It Gelsenwasser's culture is, according to its own aovhasnsevera obviou liabiites,th m t management no stiinl difrn io . also has several obvious liabilities, tbe most management, no stiinl difrntfoteiportant of which are thie fact that It has not culture of the other, public, water companies in cmpet ith in w it s area nor Germany. More specifically, Gelsenwasser's the service areand ItS operations show few signs of close attention to sirbic culture. cost minimization. For example, Gelsenwasser qu b l management insists that the level of unaccounted- Finally, in recent years there has been some for water is only 1%. Back-of-the-envelope experimentation with affermage-type contrcts calculations suggest (as would be expected with (known, see Part 3 above, as the "operator's such a level of unaccounted-for-water) that the model" in Germany) for sewerage plant manage- company is spending a lot (around DM 20) to save ment in Lower Saxony . The Enviroment a cubic meter of water, when its revenue per cubic Ministry (and others) report efficiency increases meter is around DM 6. of the order of 10% to 25% 13, In the past, Gelsenwasser's board of directors In easteM Gennan at prst have insisted that its mandate is to give a good service in its service area and not to expand. The "cutting edge" with respect to private sector Accordingly in close to one hundred years of participation in the German water industry is in 7 The German Water and Sewerage Sector eastern, not western Germany, for several Gernany, and with a foreign concessionaire at reasons. First, because when everything is that. Finally the contract is now in effect, with changing it is possible to innovate. Second, both sides expressing satisfaction with initial because on the demand side eastern German results. municipalities face enormnous difficulties in raising the formridable amounts of capital (l) In the futu necessary to re-build their infrastructure. Third, on the supply side, because the private Despite the thinness of current prvate sector companies can rely on high levels of technical involvement in the water and sewerage sector in skills among the labor force and "only" have to Germany today, this situation looks certain to add the critical managerial ingredient. Fourth, change, for several reasons. First, there is a because there are large efficiency gains to be growing awareness of the impossibility of had. And fifth, still on the supply side, because meeting the investment targets required to meet tariffs are high and because there is a culture of EU standards (see diseussion under Issue 2.2 collecting and paying bills, below) through public sector financing alone. Second, an understanding of the inefficiency of The pathbreaking involvement of the private current practices is starting to emerge, as are sector in the German water industry is in the concems about high and ever-increasing tariffs. eastem German city of Rostock, which two Third, initial efforts at involving the private years ago signed a concession contract for 25 sector (such as those in Lower Saxony) are years for water and sewerage services with bearing fruit. Fourth, the principle of greater Eurawasser. Eurawasser is a consortium owned private sector involvement is being promoted by in more or less equal shares by Lyonnaise des the Ministry of the Environment, and federal Eaux and Thyssen, a western German heavy laws are being prepared which would "level the industry conglomerate. Eurawasser will invest playing field" by eliminating the tax advantages DM 450 million for investments in Rostock, and which public sector service providers currently another estimated DM 450 million for enjoy. rehabilitation. There are also supply-side factors. In addition The Rostock contract is a major topic of to Eurawasser (Lyonnaise des Eaux/Thyssen), conversation througbout the German water other private companies are active. Compagnie industry. During the study tour we heard Generale des Eaux (allied with the German complaints about questionable business construction finm Kruger) and UTAG (the practices. Some of these complaints were former GDR state water consulting and consistent with the widely-publicized contracting company, now a wholly-owned speculation in the European press about the subsidiary of Thames Water) are actively involvement of some French water companies in marketing their services, particularly in eastern local government corruption in France' and Germany. abroad'5. Some of the complaints, however, seemed to stem from a lack of familiarity with Ihem L5: Insuffwient cost consciousness in the the fundamentals of private sector participation is in the sector. We were struck forcibly and repeatedly by what Contract negotiations in Rostock were we perceived to be insufficient cost- protracted, difficult and costly, as is inevitable consciousness in the German water industry, as given that this is the first contract of this sort in revealed in a variety of ways. 8 The German Water and Sewerage Sector Take the example of unaccoun ed-for water (a thousand connections (water and sewerage). pervasive problem in the developing country Officials in the companies were generally not utilities with which World Bank staff work). aware of what productivity ratios might Staff of the utilities we visited reported, with reasonably be. (Interestingly, the leader of the considerable pride, very low levels (between 1% Civil Service Union (OTV) is quoted's as and 5%) of unaccounted-for water16. As "conceding that privatization would cost at least reported earlier. the predominant attitude is a 30% of the current jobs.") simple "less is better", rather than one based on an assessment of costs and benefits. A fourth example is that of the overriding of cost considerations by political considerations in A second example relates to the level of the disbanding of the WABs in eastern wastewater service and the technologies used, Germany, and their replacement by hundreds of particularly in low-density rural areas. We uneconomical, small municipal systems. observed rural systems in eastem Germany Assessments done by the financial management being installed with large diameter, very high and accounting fimn, WIBERA, showed that quality, lined vitrified clay sewerage pipes. We costs for regional schemes in eastem Germany were told that this was a standard quality of would be of the order of 30/6-50% of the unit service, and that all people should have it, costs of individual municipal schemes. irrespective of the costs involved. The major exception to this attitude was that of the private Insufficient attention to costs on behalf of the companies in eastern Germany. In the public water companies is easy to understand - Eurawasser concession contract for Rostock, for there is little incentive for the municipal instance, the concessionaire had examined the companies to reduce costs. Consumers appear relative costs of different options in different not to be involved in the rate-setting process. settings and had concluded that the least-cost Furthermore, the attention of the mandatory option would be to maintain septic tanks (which auditors appears to be primarily with certifying would be emptied by the concessionaire) in low- that the books are in order and that tariffs cover density areas. (Under the terms of the the full costs. On the other hand the incentive concession contract, the concessionaire is paid a (so familiar to the World Bank in its work in flat rate per family served, and thus has an developing countries) of public agencies to incentive to determine the least-cost option.) employ too many people is evident even in Germany. (In this context, there is an A third example relates to productivity, as interesting discussion of the prospects for measured by employee-connection ratios. privatization in the journal of the German Water Typical figures, both in the companies we Quality Association: "Public bureaucrats lose visited and, apparently more broadly in the their influence on promotion and access industry, were all over 10 per 1,000 possibilities each time one of their own connections, in water-only companies. (A publicly-owned departments or enterprises is recent World Bank review of utilities in privatized. Consequently they are generally developing countries'7 shows that "sixty percent against privatization. A mayor from Hesse said: of utilities with water and sewerage services 'You don't think I became mayor just to sit here have less that 4 employees per thousand with 12 Charlies once everything's been connections, and only 20% have more than 7 privatized!' *"19) employees per thousand connections.") The Berlin Water Company, which indicated that its In the same review, Professor Eberhard Hamer personnel costs were less than those for the from the Small Business Institute in Hannover, industry as a whole, has 30 employees per asserts that "aspects of power and influence 9 Tlhe German Wauer and Sewerage Sector (are) decisive, rather than economic quality of the Rhine at the German-Dutch considerations" and that "in the old days the border over the past twenty years: town had belonged to the townsfolk -- today Germany is experiencing a new municipal * the dissolved oxygen content of the Rhine feudalism in the assets sector which had has increased from just over 4 to over 9: virtually misused the taxes paid by the * the number of species living on or in the inhabitants for municipal investments in assets." bottom of the Rhine tripled; and * the levels of heavy metals ini the sediments Inadequate attention to costs at the utility level is have declined by a factor of between 5 and 20. compounded by counterproductive incentives We were impressed by the high level of where subsidies are available (as they have been environmental awareness of providers, in the past in the West and as they are at present regulators and consumers alike and by the in the East). In Brandenburg, for example, the volume and quality of information provided to subsidies for investments in the sewerage sector inceas sarpy70 as inetetcssprcpt the public on water-related environmental increase sharptyrifas invtmet cos pegapt issues. It is apparent that this high level of awareness has had a significant role (along with Issue 2. Environmental standards and the very high prices) in the admirably low regulation consumption of water in Germany. Per capita domestic consumption is about 140 lcd, Item 2.1: Water and wastewater standards (compared to about 300 lcd in the United States). We were similarly impressed by the (a) The 'ulf side dramatic drops in eastern Germany since reunification - typically from an average Germany has a long history as a world leader in consumption of 300 - 400 lcd in the late 1980s water quality management. The most famous to about 105 lcd today! examples are the Ruhrverband and other water associations of North RhinefWestphalia And we were impressed by the innovative (described in more detail under Item 3.2 below), schemes which some water utilities have which have successfully managed small, developed for catchment management. heavily-industrialized, heavily-populated and Gelsenwasser, in particular, has an imaginative heavily-polluted river basins since the early part and cost-effective scheme for working with of this century. farmers in developing ecologically sound, pro- fitable land use practices in the catchment area. For the water professionals on the study tour (many of whom had been taught about the (b) The "down" side Ruhrverband in university) it was a surprise that this attention on wastewater management was There is, however, a down-side to these not universal in Germany until quite recently. impressive environmental achievements. We were surprised, for instance, that Wiesbaden, a major city on the Rhine River, did A fundamental factor in Germany (and not treat its sewage until 1977! elsewhere in Europe) has been the rise of the European Union. Although nominally In recent decades. however. Gernany has made committed to the principle of 'subsidiarity" e.xtraordinary progress in improving the aquatic ("maybe the most contentious abstract noun to quality of its environment. To give a sense of have entered European politics since 1789"2 ), the achievement consider the changes in the in the environmental area Brussels has ofted for Europe-wide, undifferentiated standards 10 The German Water and Sewerage Sector Furthermore. Brussels has constantly ratcheted investments would have increased substantially. up mandatory water quality standards, virtually with the addition of 15 million East Germans without consideration for the costs that have to and the much lower level of environmental be borne if the standards are to be met. In the quality in the East. Although pollution charges words of an economist/politician who have increased sharply in recent years (an participated as European parliamentarian and average of over 17% a year24 for the North Brussels bureaucrat in setting environmental RhinefWestphalia Water Associations. for standards for the European Union, "if we had instance), just the opposite has happened - told people what these standards would cost, the investments in wastewater declined to DM 8.3 standards would never have been passed, so we in 1992 and to just DM 6.6 in 1993 (with almost simply agreed not to discuss costs"!23. half of this invested in eastern Germany). The political economy of this is. of course, The principal explanation for this decline is a complex, with many interests served by such a dramatic change in the budgetary situation at all process. The most obvious and visible levels of government. In the past large beneficiaries are the environmental groups, who subsidies were available; today reductions in legitimately argue for an explicit, uniquelv high public expenditures are a fact of life at all weight to the environment and who are levels. In part this is related to the combination generally satisfied with the results. Less visible of the recession and the massive "social and less forthright is the strong lobby of transfers" ($100 billion a year. amounting to consultants, contractors, operators and over 5% of GDP) made to the East iu recent professionals who benefit greatly from the years. But it appears that the problem runs enormous sums of money dedicated to the much deeper -- the title of a recent volume of environment. In the wvord of a technical the journal of the Association of German manager of one of the most prominent German Municipalities tells the story: "The crash of Water Associations, "I have been working in German municipal finances". All signs point to this business for 35 years. For the first 20 years the subsidies of the past never returning. the benefits and costs of every proposal were closely debated. Since the advent of strict and To complicate the matter further, enormous very high standards 15 years ago, we have been investments are required to meet EU standards. awash with money and have been able to build Consider the following examples: whatever we wish - there have been no limits." When asked directly about costs, these groups * In Duisburg in the Ruhrverband, re- (in Germany and elsewhere in Europe) equipping the two-year old treatrnent plant invariably agree that costs should be taken into to meet the new nutrient (nitrate and account, but they seldom express this opinion phosphorus) standards will require forcefully in the policv arena. investments of DM 200 million (for a plant treating a population of about 200,000 Item 2.2: Financing of Wastewater Services people) and will increase the sewage treatment cost from DM 3.6 to DM 9.6 per During the 1 980s. accompanying the imposition cubic meter. of stringent water and wastewater standards, an * In Emscher Basin in North Rhine- average of about DM 10 billion were invested Westphalia. the Water Association has to annually in western Germany in wastewater invest DM 10 billion for drainage services facilities, with about 25% of this invested in for about 2.5 million people -- average treatment plants and about 75% in sewers. In investment levels of DM 16,000 for a the 1990s it might be expected that annual family of 4! 11 The German Water and Sewerage Sector * Berlin alone estimates that it needs over DM of the viability of the standards themselves, the 12 billion of investment to bring services tactic is (as it is in other European countries) to up to European standards. request extensions in the deadlines set for * The State of Brandenburg estimates that meeting the standards. And here, again, the wastewater investment requirements over tactic is not to do, in the words of one prominent the next ten years amount to DM 6,000 per German commentator26, the "terrifying capita. arithmetic" (DM 300 billion/DM 6.6 billion a * The number frequently cited for the country year= 45 years to compliance with current as a whole (interestingly based on little standards!) more than a back-of-the-envelope calculation 25) is DM 200 billion for westem Throughout the study tour we were surprised at Germany (DM 2.500 per capita) and DM the compliance of German municipalities in 100 billion for eastem Germany (DM 6,700 what often appeared to be an unconditional per capita). acceptance of the standards which they had to meet, and noted the contrast of this attitude with How is German society trying to square this that prevalent in the United States where local circle? In several ways, few of them realistic, in authorities are increasingly questioning so- our view. From the municipalities one hears a called "unfumded federal environmental constant plea for a return to the "good old days' mandates" and increasingly winning these when subsidies were plentiful. One also sees an battles in the courts27 and in state and federal inexorable rise in the pollution charges levied legislatures2s. on industry and consumers, with a dawning realization that there is a limit to this process. Finally there is some evidence (discussed (A widely-used figure for "the social limit" is further in the discussion on "participation' DM 10 per cubic meter, a figure which is below) of the battle between standards and costs already being paid by some, and which would finally being joined in Germany, as it has been be the average water and sewerage tariff in at the municipal level in the United States in about 5 years if recent tariff increases are recent years, and as facilitated by the economic maintained!) There is also a move to financing regulator in the United Kingdom2. from commercial banks. While there is considerable scope for private financing, some Issue 3. Participation utilities are already running up against Item 3.1: How consumers are vewed by the debt/equity limits. And, irrespective of the industry source of financing, the Wtariff barrier' wi!l soon be a reality. As indicated above, we were struck by What is becoming increasingly clear, however, insufficient (from our perspective) attention to the effects of the large and rising bills on IS that there is, in fact, no way out of the consumers. This is a national probler, but has escalating costs driven by the very high .u . . . a n environmental standards. More efficiency different implications in the West (where economic and social conditions are relatively would certainly help, but would be a one-time faorable and si theEati(where iesare gain of perhaps 30% which would not get the lower whr untemplomen a re industry out of the spiral. Slowly, too, the focus there arem inestment requirement is inevitably shifting, albeit obliquely so far, to merel to catcip) hes highmand l the issue of the standards themnselves . meel to "ctc uv.ehgn rapily theissuel ofhectandse themthanraiselv hes, sse increasing tariffs seemed an obvious issue to us. Time and again, however, officials explained 12 The German Water and Swerage Sector that water and sewerage bills constituted so Item 3.2: The deceine ofpatpadoan in watr small a portion of the expenses of a household rcwrce mangement ITe Ruhrverband story that the levels and increases posed no serious problem. When pressed on whether consumers The Ruhr Basin Water Association (the do, or might, react against the high prices, there 'Ruhrverband") is the best-known river basin were two standard answers. The first was that management system in the world - it is worth consumers would simply be told that it was recountinf the essence of the Ruhrverband necessary for the environment and that they example3 for the benefit of World Bank would then "understand and pay". The second colleagues not familiar with it. answer was that consumers could be made to compare the cost of water with the cost of other The story starts in the Ruhr Basin in the early consumer items (beer was a favorite!) and thus part of the twentieth century. The underlying be made to understand that the service was not problem was that a srnall river (the Ruhr, a costly. With few exceptions - and they were tributary of the Rhine) becarne the sewer for a notable exceptions -- officials never questioned massive concentration of industrial wastes in the whether there were fundamental underlying most heavily industrialized and populated part of issues with the objectives and structure of the continental Europe. The Ruhrverband (Ruhr sector (as discussed earlier) which might have tD Water Association) was founded as a self- be addressed. governing public body in 1913, on a few key underlying principles. The first principle was There were two important and instructive that all stakeholders (all users and polluters of exceptions to the general rule of little concern water including communities, districts, and trade about what customers have to pay. Officials of and industrial enterprises) would be members, the two private companies (Eurawasser and and that policies would be made by a political UTAG) we met with in eastem Germany were body, the "Assembly of Associates", or 'Water both well aware of, and concerned about, the Parliament". The second principle was that the rapid rise in prices, the incipient consumer Ruhrverband would make extensive use of reaction to these, and the structural economic instmments (water charges and underpinnings of these high prices. pollution fees) to finance the investments and other management activities of the Ruhrverband. After our visit we learned that concern with high An associated principle was that water quality and rapidly rising prices are, in fact, starting to objectives were the result of the simultaneous emerge at the municipal level. In the State of consideration of the benefits of various Hesse, for instance, some municipalities, with the improvements, and the costs of achieving these. support of the Deutsche Stadtetag (DST), are Finally, even in this small ara, the Ruhrverband considering taking legal action against mandatory found it appropriate for muncipalities to retain tertiary wastewater treatnent (aiming at nitrate and major functions - the Ruhrverband itself2 is phosphorus reductions), citing "an obvious responsible for the "trunk infrastructure" (the discrepancy between costs and benefits of the design, constuction, and operation of reservoirs measures (and) ... burdening the citizens with and waste treatment facilities), while the com- further costly investments" and citing the need to munities are responsible for the "feeder "analyze critically what some technocrats have infrastructure" (the distnbution of water and the come up with"0. collection of wastewater). 13 The German Water and Sewerage Sector The Ruhrverband was a resounding success, situation changecl in a fundamental way. The showing: (a) what fundamental principles most important proximate change has been the underpin sound water resources management; rise of the environmental movement in and (b) how these principles were turned into a Germany and the resulting higher priority given practical management approach in a severely to the environment at all levels. This has led to water-stressed area with sophisticated marked increases in environmental quality institutional capacity. The model spread rapidly standards, both national and in the European to neighboring industrial areas of the (present- Union. There have been major benefits from day) state of North Rhine-Westphalia, with a the resulting investments in water quality total of 12 similar Water Associations formed. management, as exemplified by the data on the Rhine River given earlier. In this section it is Although the model was not replicated in the germane to note only the effect of the high rest of Germany, the logic of the model was German and European standards on the picked up by the French. In 1964 the French participatory nature of the Ruhrverband. A parliament passed a new water law. The key central function of the Ruhrverband "water institutional innovation in France was the parliament" (that of balancing the benefits of "River Basin Financing Agency", which was environmental improvement with the costs derived from, and faithful to, the Ruhrverband incurred), has become redundant given the principles, appropriately adapted to the legal, standards. The parliament has changed from a cultural, and natural conditions of France. vigorous forum of debate to a rubber-stamp for thle budget required to meet the legal The Ruhrverband functioned more or less along tequirements. these lines until about the late 1970s, when the 14 7he German Water and Sewerage Sector Part 5: Lessons for Developing Countries Germany provides a fascinating mix of lessons environment, and for translating this into water for water resource management in developing demand management programs. countries. The Negative The Positive Recent Gernan experience (and similar experi- On the one hand, it is revealing to review the ences in other industrialized countries) provides two fundamental principles which have, in equally profound lessons on what n=t to do! recent years, emerged as the core of a new consensus (see Dublin3, the UN Conference on The Czech Prime Minister, Vaclav Klaus, has Environment and Developmen?5, the OECD6, recently reviewed progress on economic reform in the World Banl37) on managing water Eastern Europe4t. He notes that, paradoxically, resources. The two principles are: the refonn process has been least saisfaictory in that country- the forner German Democratic * the institutional principle -- water Republic - where it has been possible to imagine development and management should be solving problems by increased spending rather based on a participatory approach involving than by facing the problems fairly and squarely. users, planners and policy-makers at all So, too, it is with water resources management. levels, with decisions taken at the lowest The mirage of the industrialized country "buy- appropriate level your-way-out-of-the-problem" approach is not * the instrument principle - water has an only "not on" in developing countries, but economic value in all its competing uses and potentially quite dangerous. Developing (and should be recognized as an economic good. developed42) countries have no alternative but to give highest priority to the efficient use of limited It can be readily seen that these two principles resources and no alternative but to set standards are, in fact, the principles which the sensibly and practically by simultaneously Ruhrverband pioneered over 80 years ago! The considering both benefits and costs and by enormous success of the approach, initially in remembering that the best is often the enemy of the Ruhr and then in its adoption on a national the good! scale (since 1964) in France33 has provided the intellectual underpinning for many efforts which A second lesson from the recent eastern German are now being undertaken in other developed experience is the danger of ignoring technical and developing countries39, and financial realities when responding to the legitimate and appropriate demands for Germany also provides a model of important decentralization of political power. sub-components, such as how to price different components of effluents40, and how to apply A third lesson, one drawn from the low sophisticated but highly-relevant csncepts such productivity of the publicly-run water companies as peak-load pricing (as in the Ruhr). The is that incentives matter and accountability matter. German utilities also provide valuable models Without an appropriate structure and set of for training of skilled workers. And, finally, incentives, public services, even in Germany, German experience provides an excellent model suffer from the common problems of political for developing public consciousness of the patronage and inefficiency. 15 The Germax Water and Seuerage Sector Endnotes Ij Our hosts were also provided some general infonnation on the World Bank, and copies of the 1994 World Development Report on Infiastructure (in Geman). 2 The post-tour evaluation showed that participants rated the value of the tour very highly. The evaluation summay is presented as Annex 2. 3Tbe words "westem Geamany" and "eastern Gennany" are used in this report as short-hand for "the previous Federal Gennan Republic (FDR) " and "former German Democratic Republic (GDRr. 4After reunification, KIW's "domestic" lending increased sharply. In recent years, lending to the former GDR has grown to the point where this accounts for 90% of all new KfW lending. 5 See, BMU, Water Rouc Managent in Genmany. 1994 6Assumptions: Per capita income in easten Germany of S 15,000 (S23,000 in Germany as a whole), tax rate of 30L. 7"Ihe Egonom, October22, 1994 a These high consunption figures are consistent with those found in many Eastern European countries. There is, however, some uncertainty about the pre-unification figures. There were incentives in the GDR to overstate actual delivery, and there was relatively little metering and much reliance on estimates. 'Subsequent to our visit WIBERA graciously provided us with some of these indicators, on a confidential basis. '0 Jochen Kalmer and Blair Bower, "Water quality management in the Ruhr area ofthe Federal Republic of Germany, with special emphasis on charging systems, Resoures for the Future, Washington DC, 1982. " Carlos Casas(zs: "aPriviing the Mexican water industry", Journal of the American Water Worm Association, March 1994, p 69-73. '2Michael Gellert, in "Privatization of public investments and services in Hesse", KComXotdez Abwas 13/89, p 16 '3The World Bank team did not visit these schemes. 14 In the months preceding the tour, there had been widespread coverage in the European press and professional journals ofthese allegations. The essence ofthe allegations has been smmarized as follows: "An opposition candidate for the European Parliament charged in the runup to elections early this month that 80% ofthe political coruption in France was caused by two large corporations. Though he didn't name the companies, the press concluded that the urmamed corrupters must be CGE and Lyonnaise. Their stock took a dive and lawsuits are threatened." (Tally Eaux: French water giants think big, long and smart", Public Works Finanim, June 1994, p 17-18.) Is See "French scandals - plot thickens, Wfle ullHetin. 624,30 Sept 1994, page 6. 16'The unusually low levels appeared to be a result, in part, because of an unusually broad definition of what water is "accounted for". 16 The German Water and Sewerage Sector "7 G. Yepes and A. Dianderas, "Performance indicators: Financial indicators and overview of service rates", Water and Sanitation Division, World Bank, 1994. '.Prof. Eberhardt Hamer, "Privatization of public investments and services in Hesse", Korsndenz Abwasser, 13/89, p 16 '9Prof. Eberhardt Hamner, "Privatization of public investments and services in Hesse", Korrespondenz Abwasser, 13/89, p 16 20When the estimated investment is 2000 DM per capita, the subsidy is 12.5%; when the estimated investment is 7000 DM per capita, the subsidy increases to 60%. 21 Making Sense of Subsidiarity: How Much Centralization for Europe? The Centre for Economic Policy Research, London, 1993, page 1. 22 Making Sense of Subsidiarity How Much Centralization for Europe? The Centre for Economic Policy Research, London, 1993 23 Personal communication, not on this study tour. 24 Klaus R Imhoff, "Deutscher Gewaesserschutz im europacischen Umfei&', C;WA 6194, pp 428433. Klaus R Imhoff, "Deutscher Gewaesserschutz im europaeisc'hen Umfeld", GLWA 6/94, pp 428-433. 26 Klams R lInhoff, "Deutscher Gewaesserschutz im europaeischen Umfelc', GWA 6194, pp 428-433. 2 In recent years local governments in the US have increasingly revolted against what they describe as the irresponsibility of Congress in not considering the costs along with the benefits of environmental legislation. More and more vocally, mayors of US cities have questioned these 'unfunded mandates", as they are known. Amongst the most celebrated cases in the US is one of particular relevance to this discussion, namnely the refusal by the city of San Diego to comply with Federal standards for the secondary treatment of municipal wastewater. The case recently went to the US Court in Califomia where the judge, in vivid language, descnrbed the Federl requirements as "wasteful, unrealistic and unworkable". The Federl Judge not only did not order San Diego to comply, but praised the city for taking the right stand, and lambasted the Federal Government for trying to force the city to make investments which were, in the opinion ofthe Court, "not in the public interest' (United States District Court, Southern District of California. United States of America versus City of San Diego. Memorandum Decision, 31 March 1994. 2g See "Roiled waters: Water politics in the 1990s", Civil Engineering, July 1994, p 49-51. The issue of 'unfimded mandates" is a central issue in the Republic Parties "Contract with America" and was a major issue in the November 1994 congressional elections in the United States. 29 The Office of Water Services (OFWAT). The Cost of Ouality A strategic assessment of the prospects for future water bills, Birmingham, 1992, and "Water purity boils down to a question of price", Financial -nnes, April 17, 1993. 30Stddtetag: Klagen haben Aussicht auf Erfolg", C(Stldtetag: Lawsuits have prospects of success"), Frankfiur AllgmeneZit'ui, Nov 5, 1994 17 The Germnan Water and Sewerage Sector 31For more details, see Kneese, A.V. and B.T.Bower, Managing Water Quality: Economics, Technology, Institutions, Baltimore, Johns Hopkins University Press, Resources for the Future, 1968, pp 245-248 R Initially the RTV, the Ruhr River Dam Association, was responsible for the reservoirs; later the RTV was merged with the Ruhrverband. 33see Ivan Cheret, "Managing Water The French Model", pp 80-92 in Valuing the Environment ed. I. Serageldin and A. Steer, World Bank, Washington DC, 1994. and Government of France: "International Co-operation for Sustainable Water Resources Management The French Experience", paper presented to OECD/DAC, May 1994,6 pages. -u International Conference on Water and the Environment, -The Dublin Statement and Report on the Conference", Dublin, 1992. 3U United Nations Conference on Env nent and Developnent 1992. Agnda 21 New York. 36 OECD, Development Asssace Committe, "Water Resours Manament [mplementmg the New Consensus", Paris, May 1994. 37 Te World Bank, Water Resou Mana ent Pol Washington DC 1993. 3Govemment of France: "Intemational Co-opeation for Sustainable Water Resources Management The French Experience", paper presented to OECDoDAC, May 1994, 6 pages. 49 Government of France: "Intemational Co-opeation for Sustainable Water Resources Management The French Experience", paper presented to OECDIDAC, May 1994,6 pages. 40 Ministry of the Environment, Water Resources Managent in German 1994, Bonn, 4'Vaclav Klaus, "Klaus on Europe: So far so good", pp 57-8, he Ecnomiist September 10th, 1994. 42 See "Water price clean-up?' a series in The New York Times March 21-24,1993 and "Cleaning the envirornment gets harder', The New York Times January 5, 1995. 18 WOI XUIKW ECtOR STUDY TOUR O lGERKW *Oc-b. Annex I Documnts uroWlded bv th collabtborna tGmn HoWt OOrumnlkons FinalUstofDomeft ncuindocumnscollctedduingUiTour) _ __ _i N prB Mabw TEa Llm Type Aaunmi Die guap I1V A4i Th.DVGN in_ 1993 E Ln OdlO A-2 WMN-Paftrdd bAocinhcm 1994 E Wn A Dv-Hwbimdut 1993 GOE Ln 2 m B-1 KiW-Fwdiu duandMim " May93 E _o Ocl 10 8-2 KW-Chopsrda Deumlohi Ccu*a Fib94 E So KM - Parbw d DwuIving COVJiri f. Eani y Abc Sw b Cambia d C4 t Esdm Ewps hi 8-3 rwtbl luEmy .93 E Lfi Kr FuWw &D*Mni bb bFld d Eacon'ic pen b sth FR d GOm Cu*iU d Caked £ 84 Ewn Euqmd w d Si ms di3 E LI 86 KWg Puluumnm f993U 1fPb lb 0Pd eori Jun 94 E Rqr _23 EG-z CI G Your Ptnm in D dsh nt Jun 94 E DOC C2 D 414MsW.WWb&PW9cfim ofNdura Rmwm) 1994 E Info C-3 nu* PM HgimnuaEian iit. SllS a PI 1990 E Doc 3 ESWE' r, D 1 ESWE- n n. in pn _ _ bN G0E Cha_t Ocd 1 D-2 Wr far n Wls b - for Wiba" Jun 94 G Pap forWadomn DrOug._ Ocd 94 E Pa E&Wbr*m ad t E&WE4nilMhrWdw Ramma =dWah. Tb) COd 94 E Doc 4 M F-I a-The Feu"Ec*ounsMti*y (a fionncpnaW) -94 E Doc Od 11 F-2 E l PokFym Gw_a-Wdr R_swcs 1m wnn Gm W Mu 94 E Doc F-3 DOem _ugUabt der &Sowpubl Dik Mhd (SiafWsrOQui Map dGPmmny 1990 G Map F4 i (T#bG"hi.SufrSOWW=kIbDvO Jun 93 G Doc Aboh__fdi Rugk dw Abmm__w - 1mrM x F-5 1Is SmcbPwk O SIn m W _- AdeiCeoB 1993 G DOC FP4 LeMab*n A_bmp May 91 G DCe F-7 ja8 (Aeur F=WRap o WeW"Rar_m'cAbmuQ Jul 94 G Rir I F-8 Ra9ithW 933 (RherRMmsRet I=m Jo 94 G Dcc -c a /P1 n D a GknD~niptPiky :DC-Awruan d Gwmay (DAC-AmusAidRvAiv D.ec9 E DM G2 Thnbaiprhi d FeduiGow,nt D unsePok_y 1993 E Dcc G Soft Fe W VaiS4up* ad SwAlbe Papds h Dap" Caukia J y 84 E Doc Gun f ieur dei O WuN - Db E 6twKaeoU der &u_gbtw X G4 (ToamIrbEa 0o. WON - Th Gtm. Dewiomu( PoW Jon C9 G Doc _~~~~~~~~ - 5 DMSI M1 SGNHCw li Jon92 E blO Odli 1 2 SON - Fdb Fl& us: P*k IWv&wly S* 1992 / 1993 E L1 1H3 PR*co of Ridcyb Drheking WaSW in Gwmmy (kSbafit Jun 94 E Pa W4 Thn P Wabr SWlVyM lowt1994 E Dco ,U M OrLjoandl oWdaar Supp CoNrws a Gnumy Od 94 E Pap . -6 The Gun Wi. Make-Who:WhOIn Ere rWaW(BQMDJW 1994 E R_ 1-7 TV r wVsrMwjwITrf9tE mar 94 G DOc H_9 8 ___________1_______ ____t____ Jm n94 G DOc _A rb O Rua.a) Sep 94 G Oter. *19 No1Opab Doc TilE Len- Tp IAauynM Ns* _______________________________________ Ct gpu * a - - -b 6 OCT N1 DST(AmoCIonda ChosJTmbOg ne 1991 E , l ad 11 wassemkWU WIn htlwh Ond aouth.uurSihI lSlE* Amm". hI Gemuyit. Im afurj*d AIPwcvg Ot94 G Pap Gmakduflnsoubvidh 9I6. 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