National Policy and Financing for Sanitation

Examples from Asian Countries

National Sanitation Conference (KSN) 2 8 December 2009

Jakarta Indonesia

Almud Weitz, Regional Team Leader, WSP-EAP, For SDG Sanitation Donor Group

Outline

Success factors for sanitation development in Asia

National approaches to sanitation development Thailand

Vietnam

Financing Sanitation Urban Sanitation in Vietnam

Rural Sanitation in India

Key lessons for sanitation progress

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Sanitation – Access in East Asia

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91 % - 100%

76% - 90%

50% - 75%

Less than 50%

Source: JMP, UNICEF/WHO 2008 (2006 data)

415 million have no access to improved water supplies

800 million have no access to improved sanitation

Meeting the MDGs still leaves 630 million (1/3 of population) without improved sanitation

Success Factors for Sanitation Development in Asia

Political prioritization

INDONESIA

SDG Sanitation Donor Group

Increasing budget allocations over time

Sustained implementation

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Sanitation linked to national development plans

Demand-based sanitation policy implemented by agreed strategies

Policy-based sanitationinvestment strategy

Specific approaches to sanitation services for the poor implemented

Increased participation of users, civil society & private sector

Continuous progress monitoring, evaluation and improvement

Sustained implementation

leads to increased access

to sanitation

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Asian Success Stories – Thailand

From 0.17% HH latrine coverage in 1960 to above 90% by mid 1990s, and 99% in 2005

Systematic inclusion of sanitation program in National Economic and Social Development Plans

Comprehensive vision - water supply, excreta disposal, refuse disposal – but step-by-step implementation

Increased participation by key actors

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Thailand – Success Factors

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Source: USAID 2009

Systematic capacity building of health personnel and people

Financing mechanisms: Government ‘seed money’ for village

revolving funds

Loans and grants form development partners

Continuous program improvement based on M&E system

Thailand – Remaining Challenges Last 1% extremely hard to reach (remote and/or water-scare

areas)

o Despite increase in toilet coverage, no decline in diarrhea disease incidence(even though decline in diarrhea death rate)

Thai toilet development project Promotion of clean & hygienic

food Safe drinking water Hygiene behavior campaign

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Latrine Coverage

Diarrhea Morbidity Rate

Diarrhea Mortality Rate

Source: Narongsakdi, A.: Universal Sanitation Thailand, 2007

Latrine Coverage

Asian Success Stories – Vietnam

Substantial national investment since 1990s in urban sewerage & treatment systems using loan funding with grant elements for community involvement and software support to households

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o Integrated urban sanitation and sewerage projects: a) sewerage and treatment; b) drainage; c) institutional development

and construction management; d) revolving funds for household

sanitation facilities or sewer connections.

Source: Forthcoming study “Financing On-Site Sanitation for the Poor: A Global Six Country Comparative Review and Analysis” by WSP/World Bank

Vietnam – Achievements and Challenges

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Achievementso High priority on urban sanitation investment, as part of economic and

urban developmento Integration of improved septic tank systems in parallel to sewerage

and treatment improvementso Strategic use of public resources to achieve maximum results – with

focus on municipal infrastructure, promotion and software supporto Partnership with Vietnam Women’s Union to reach households o Accessed donor grants to complement substantial borrowing

Challenges: o Extreme poor remain excluded but alternatives are being

consideredo National strategy for scaling up not yet in place

Financing Urban Sanitation – Vietnam National borrowing for municipal and trunk sewerage infrastructure

Revolving fund for low-income households to build septic tanks, composting toilets or sewer connections, managed by VWU

Loans average USD 145 per HH = +-65% of investment costs

USD 3 million in initial seed financing as part of a broader sewerage project including hygiene & demand promotion

Public funds 7% of total costs of sanitation adoption

Results:

Initial capital revolved twice+ in 3 years, then transferred to local municipality to be revolved further; 100% repayment rate

Leveraged household funds: up to 20 times initial the public funds provided

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Financing Rural Sanitation – India (Maharashtra)

‘Enhanced’ Total Sanitation Campaign (TSC) targeting 21 million people

Public Funds focusing on: Software for community mobilization

Outcome-based rewards to ODF villages to spend on sanitation investments

Outcome-based hardware subsidies for poorest HH (22% of hardware costs covered)

Overall impacto Public funds 9% of total costs of sanitation adoptiono High leverage ratio: US$1 public funds triggered US$10 HH investment

o Very rapid increase in sanitation access

o Implemented at national level with variable results

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Key Lessons for Sanitation Progress

National investment program for urban infrastructure comes from national budget and loans under a National Sanitation Investment Strategy to meet sanitation targets

Centralized treatment and sewerage infrastructure funds are usually borrowed then on-granted to local governments

Choosing the right financing approach for household involvement increases cost effectiveness, equity, impact and scale

Hardware subsidies need to be well planned reg. achievement of project objectives ownership/ scalability

Subsidy targeting methods tailored to circumstances: India: subsidy for poorest HH after community is ODF

Vietnam: subsidy on interest rate for low income/poor HH

SDG Sanitation Donor Group

Key Lessons for Sanitation Progress

Public funding used to trigger increased access to household sanitation – through software, facilitation, and demand/supply improvements

Poorest households need particular support; revolving funds, micro-credit, partial grants can be effective when available for all

Monitoring and Evaluation is critical for evaluating effectiveness of public support Cost information

Financing data

Information on impacts and outcomes

SDG Sanitation Donor Group

Terima KasihSGD Sanitation Donor Group Members

Embassy of the Kingdom of the Netherlands

Bilateral donors, multilateral donors, international development banks and NGOs