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Annual Report 2011 WASTE Narrative report and cost overview

Cover picture: Fort Portal town overview, Uganda © Niels Lenderink(WASTE)

TABLE OF CONTENT

INTRODUCTION ................................................................................................................ 3

WASTE .................................................................................................................... 6

WASTE PROJECTS AND PROGRAMMES ................................................................... 21

FINANCIAL RESULTS .................................................................................................... 35

ANNEX 1. EXPLANATORY NOTES ON BALANCE SHEET ....... ............................... 45

ANNEX 2. SPECIFICATION AND DIVISION OF COSTS TO DE STINATION ........ 47

ANNEX 3. WASTE ORGANISATION – REFERENCE ................................................ 49

ANNEX 4. BUDGET 2012 ................................................................................................ 53

Annual Report 2011 WASTE, 26 June 2012 3

INTRODUCTION

WASTE, advisers on urban environment and development, located in Gouda, the Netherlands, is pleased to present its 2011 Annual Report. The report has two sections and two Annexes. Section I is the narrative, describing projects and programmes WASTE implemented or to which it has contributed. Section II presents the description of financial results. The report has been prepared in line with the Annual Reporting Guideline 650 (RJ 650 for charity recipient organisations). This is different from previous years as we earlier reported according to Annual Reporting Guideline 640 (RJ 640 for non-profit organisations). The reasons for this changeover in guidelines is (1) WASTE's agreeing to the specific request of the Dutch partners in the WASH alliance to all use the same reporting guideline RJ 650. (2) It also will make it easier to work out the revenues and expenditures that can and will be attributed to the WASTE teams. (3) It will make it easier for WASTE in future to look for other sources of funding (e.g. donations from the public). The narrative reporting obligations under RJ 650 are similar to those in RJ 640. The most important differences are that WASTE needs to specify in clear terms its: (a) communication strategy, (b) its legal structure: (c) report of the Board and (d) whether goals and intended results have been achieved. In the financial reporting the differences between RJ 640 and RJ 650 are bigger. In addition to the different presentation of the financial figures, WASTE needs to provide: (e) some additional financial benchmarks1 and (f) details of its asset management. Reporting obligations under WASH caused a much earlier completion of the Annual Report than is our wont (March instead of May). Part of this report will be available at the WASTE website, www.waste.nl, by the middle of 2012. Section One: Organisation, projects and programmes. Besides organisational developments, this chapter provides an overview of our projects and programmes and the lessons learned in ongoing multi-annual programmes last year. Section Two: Financial Report The second section of the Annual Report 2011 describes and explains the figures. The financial data and results are presented in-full in the third section. The report has been prepared in line with the Annual Reporting Guideline 650 (RJ 650 for charity recipient organisations). The results in 2011 were positive and better than those of 2010, but still some € 17,000 below the budgeted figure. This was caused by the restructuring and reorganisation of WASTE into three different teams; sanitation, solid waste and finance and support. The team formation, but mostly setting their internal workings and interactions vis-à-vis the other teams, took up considerable staff time, time that could thus not be spent on other activities. The WASTE annual plan formulation, and the roles of the teams in setting the annual plan was an experience that had to be gained and the lessons have been drawn from it. With the teams 1 The first benchmark: WASTE needs to divide expenses on achieving goals and objectives by total expenditures and report this as a percentage. The second benchmark: it needs to show relation between costs and results of fund mobilisation

4 Annual Report 2011 WASTE, 26 June 2012

firmly in place, WASTE expects that in 2012 the staff specialisation will be further strengthened. The start up of WASH with a number of Dutch partners and their historical ties to local partners in the countries of implementation, the workings of the different committees, viz. (i) programme steering, (ii) PME, (iii) finance and (iv) programme group, caused initially some overlaps and confusion, but gradually roles and responsibilities are getting clear and the focus has shifted to programme implementation. The appointment of country coordinators etc. has certainly attributed to this. As most of the WASH time is declarable, WASTE has taken an advance on future years, meaning that in the coming years it can spend less time on assisting implementation than was originally foreseen.


Section One: Organisation, Projects and Programmes


WASTE

Introducing WASTE, Advisers on urban environment and development

WASTE is a Dutch non-governmental research and programme management institute located in Gouda, the Netherlands. The WASTE policy plan, completed in 2008, states that our vision for our work is of: “People in urbanised areas living dignified lives in balance with their environment.” From this we derive our mission: “WASTE mobilises and provides meaningful and effective support to transform waste into opportunity, as an entry point to reach our vision, by mobilising networks, ideas, knowledge, and money. “By meaningful and effective we mean: with legitimacy and respect for local processes. We do so with people who have a stake in a properly functioning solid and human waste management, in urbanised areas, primarily for marginalised communities, and with a focus on the South.” The WASTE policy plan will be renewed in 2012. Yet it is rather unlikely that the vision and mission will differ substantially from our current vision and mission statements. The organisation has an international and multi-disciplinary staff of solid waste management, sanitation, and development cooperation professionals who design and manage programmes and projects. In recent years, more than half of our work has been in the form of multi-year, multi-country programmes, which have been directly, indirectly, or partially financed by the Dutch Ministry of Foreign Affairs, Division for International Cooperation (DGIS). In addition to its portfolio of these long-term programmes, WASTE has a substantial portfolio of consulting work in solid waste management, sanitation, planning, sustainable financing, training, and project evaluation. WASTE programmes operate in East, West, and Southern Africa, Central and South America, East and South Asia, Small Island Developing States and the Balkans. WASTE's trademark framework of Integrated Sustainable Waste Management (ISWM) provides a practical, feet-on-the-ground approach that works and that delivers genuine demand-driven development in the urban environment. WASTE's second trademark is decentralised sanitation with a focus on nutrient recycling and closing loops. WASTE is at the forefront of the growing understanding within the international community that the involvement of the private sector and the mobilisation of local financing is the key for a sustainable implementation of projects and programmes.

Continuing focus area, sustainable financing

Using WASTE’s 8 year old experiences with the Waste Ventures Fund, the more recent and still on-going public private partnership with banks and insurance companies cumulating in the FINISH programme, the experience gaining ground in the SPA project after restructuring, The African Finance Facility, solid waste tariff setting in the Maldives, local public private partnerships in solid waste management in collaboration with UNDP, a tailored micro finance


facility for a deprived group of society in Serbia (Romas) all show that the organisation is moving ahead in this field. WASTE has assisted the WASH alliance in defining sustainable finance in such a way that it could be accepted to all alliance partners. The WASH alliance has adopted the FIETS Sustainability Principals. Financial sustainability is the ability is to financially endure based on income generated with the provision of products or services. Relying on finite sources, e.g. external donor contributions, is not financially sustainable. WASTE attempts to describe financial sustainability in as practical terms as possible. Our objective is to share our understanding of financial sustainability and to provide ideas on how to translate theory into practice. In the current financial trainings under the WASH programme we have included cases in which sustainable financing is applied already. The WASH alliance has acknowledged WASTE’s track record and experience in the field and in 2012 it will help putting sustainable finance on the agenda of the local alliance partners.

Communication strategy

One of the primary communication tools is the WASTE website that has been revamped and upgraded. Many of our “knowledge products,” ranging from books to interactive computer programmes, films, trainings, events, action research, etc. are available on-line. WASTE staff is often invited to provide expert inputs into fora, discussions etc. The existing networks in which WASTE staff operates is another communication tool. WASTE is not really involved as of yet in using social media for communication though many of its partners are and thus indirectly WASTE uses social media as another communication tool. Still one of the most effective communication tools are the one-on-one meetings and discussions, both in the Netherlands and in the South. This contributes both to capacity development and learning of WASTE staff and its partners. To measure all this, WASTE and some of its partners have done the first stages of the Qualitative Performance Assessment (QPA), which provides a quantitative yardstick against which the organisational development including its communication strategy can be measured.


Mechanical emptying truck, Benin

Modes of work

WASTE has four main work modes. These complement each other and strengthen knowledge and competence. These modes are: � Design and management of multi-year projects/programmes with components of

consortium-forming, planning, implementation, enterprise development, and fair and sustainable governance

� Implementation of short- projects, assignments, and research, which result from winning tenders or direct contracting. These usually have a duration of less than a year, and focus on baseline measurements and assessments, stakeholder mobilisation, tariff- and fee-setting and user pays systems, process facilitation, sustainable sanitation in cities and villages, recycling, management of organic and special wastes, institutional development, public-private partnerships, nutrient cycling, carbon financing, and methodological and modelling support to larger projects.

� Development and delivery of documents, films, books, articles, plans, training, capacity development, study visits, peer matching, stakeholder mobilisation, and similar information or educational activities.

� Enterprise and institutional development and sustainable financing, with an emphasis on the agricultural and industrial value chains

In addition to its staff, WASTE has a global network of highly qualified and experienced local experts and sanitation and waste management specialists who cooperate on projects and programmes (the WASTE Associates). We engage this network in programmes and projects as follows: � Conveners, secretariat, and administrators of local consortia for multi-country programmes � Partners and sub-contractors in tenders and proposals � Co-participants in research and knowledge-sharing projects � Co-producers of articles, books, films


� Initiators of locally funded projects in which WASTE has a supporting role � Developers of knowledge or sector platforms in countries where we are active

Organisational developments in 2011

The focus in 2011 was on the internal re-organisation. The three separate groups are now responsible for drafting their own annual plan, provide indicative staffing levels, targets and means required, knowledge management, research and development plans, as well as for drafting a strategy for WASTE Associates (operationalising the 'outer ring' of advisers).

The three "business units", teams or groups have worked out their internal dynamics in 2011 and also their interactions within the WASTE umbrella. : solid waste, sanitation, and the finance and support group. Each is briefly described below.

Solid Waste Team

The solid waste team comprises of professionals who focus their activities on solid waste, valorisation, management of organic wastes and related issues; includes all support people directly involved. The team is led by a coordinator, who is a member of the Management Team.

Sanitation Team

The sanitation team comprises of professionals who focus their activities on sanitation and related issues; includes all support people directly involved. The team is led by a coordinator, who is a member of the Management Team.

Finance and Support Team

The finance and support team comprises of professionals who focus their activities on finance, administration and related issues; includes all support people directly involved. The team is led by coordinator, who is a member of the Management Team.

Achievements in 2011 of goals and results

The sanitation team in 2011 focused on: ♦ Starting up the MFS-WASH program; ♦ Reorganising the SPA program; ♦ Formalising its knowledge management; ♦ Developing old and new themes and ♦ Efficiently organising the Sanitation Team..

Perhaps with the exception of knowledge management and to a certain extent the group organisation, these goals were by and large achieved in 2011.

The main goal for the solid waste team in 2011 was to work together in a harmonious way to build an effective, financially viable unit that supports and rewards high-quality work in support of our mission and vision. The team needed some time to sort out its working, and it changed its leadership and now it functions quite smoothly. Yet even more important to achieve this goal was that the group needed to acquire many new projects and program. This is not facilitated by the changed political climate in the Netherlands, with an accompanying decrease in financing, for environmental issues as well as for development co-operation.


In 2011, the group tried to organise acquisitions under five themes: ISWM Planning and -Tools, Informal and Formal Sector Business Development, New Metrics, Sustainable Finance, and Macro Nutrient Cycling. Acquisition in 2011 was confined to the multi-annual Haiti project and few small assignments. The acquisition target was thus not met and this give impetus to the development of the acquisition group combining the strengths of the sanitation group with those of the sold waste group next to their close thematic affinity. In addition, efforts were started to identify a staff member with strong acquisition background to support the solid waste group. The finance and support team set up its own internal workings. It has been able to complete policies and procedures in which WASTE was still deficient (including those needed for WASH). Its goals need to be continuously in sync with those of the solid waste and sanitation teams, as it needs to support and standardise their work. In this sense some gains were made in 2011 and more need to be made in 2012.

Legal structure

WASTE is a Foundation (‘Stichting’) under Dutch law, operating without profit objective. WASTE has an external Supervisory Board with an official controlling function and a Staff Council setting policies, annual plans and reports.. The day-to-day and all operational responsibilities are delegated to the Director. The relations remain very cordial and the Supervisory Board is regularly updated with operational and financial data. Their advise is highly appreciated by WASTE.

All Supervisory Board members stayed in function, Andre Frijters (Chair), Martijn de Groot (Treasurer), Varina Tjon A Ten (Secretary), Paul van Koppen (Member) and Linda Rijerkerk (Member). Later Arnold van de Klundert, Founder of WASTE, also joined the Advisory Board. All Supervisory Board members work on a voluntary basis and besides receiving a minor allowance of Euro 750 per annum, do not receive any remuneration for their valuable work. The Director operates as member of the management team that consists of the team leader of the three teams, supported by F&S. The Management Team manages and provides overall coordination, whereas the final responsibility rests with the Director. Thus from a flat organisation, WASTE is moving to a more clearly organised team system, with clearer executive management centred in three team leaders and the managing director. The role of the staff council in making policy remains the same, but the role of individual staff-members in making operatioral decisions has been reduced, in part to answer the need to reduce transaction costs and facilitate operational efficiency and transparency. The three teams ( Sanitation, Solid waste, Finance&Support) also serve the need to focus on specific, replicable, and successful strategic product-market combinations. In the first instance, we institutionalised our two sector teams, sustainable sanitation and sustainable solid waste, but we also prepare for the future. With a clearer team structure, future broadening of the product-market complex becomes possible by simply adding more teams, with its own product-market combination. It appears that sometime in the coming years the


line of work called “sustainable financing” or “financing for sustainability” might grow to the point that it would become a new substantive team.

Accepting and embracing growth

A decision for possible growth within the organisation represents a break from the past. WASTE was founded with a clear mission to foster growth in its focus countries in the South, and not in Gouda. In the past 27 years this has resulted in supporting a growing network of partners who share WASTE's values and with whom we work together on projects and programmes. In the meantime, WASTE has breached the size of about 12.5 FTEs, which is a well-known transition point from a small to a small-medium size organisation. Subsequently, we need to be open to the possibility that our development might lead to a need to grow within our own organization, to have spin-offs in terms of daughters or sisters, and to work on professionalising the organisation set-up, intellectual and process competence, personal growth, reputation, policy influence, and the like.

Report of the Board of Directors

WASTE reports according to the Annual Reporting Guideline 650 (RJ 640 for non-profit organisations). Under RJ 650, as in RJ 640, all obligations are recorded in the year of written communication, irrespective of when actual payments are made. It affects the role of the annual budget, which has become an operational instrument. This implies that substantial differences between budget and actual expenditures need to be explained. The year 2011 yielded a small positive result of € 63,642. This was below the budgeted figure. The major differences between budgeted and realised figures are explained in Section B below. Looking at turnover FINISH was well below its anticipated turnover (largely due to the micro-finance crisis in India). Looking at the net turnovers, most projects were relatively close to their budgeted figures. Two percentages related to the WASTE portfolio are important from an administrative and policy point of view. (1) The share of MFS (DGIS) in the total portfolio should not exceed 75%. This percentage has been fixed by DGIS. (2) The share of the EU in the total portfolio should, from an internal operational point of view, (tariff problems), not exceed 15%2.

2 The European Union projects are administratively complex and do not carry integral billing rates. This lowers their

attractiveness to WASTE. WASTE has more or less phased out European Union projects. Unless there are pressing strategic reasons to the contrary EU turnover will remain marginal.


Figure 2: Share of MFS in WASTE portfolio

From Figure 2 it can be observed that the share of MFS in WASTE’s portfolio, excluding the DGIS – PPP funded SPA and FINISH projects, is after years of being below 60%, it has increased above the threshold. This is due to the start up of MFS –2 (WASH alliance), but also because the relatively large PSO LWT project and the school sanitation project of ICCO were indirect DGIS contributions and had thus to be subtracted from the turnover too. However it has been agreed with Simavi – the lead partner in the MFS-2 WASH Alliance– that since their MFS share of turnover is well below 75%, so this would be compensated within the alliance. The EU share in the total portfolio was close to 15% in 2008 when the 'maximum 15%' policy was adopted. In 2009, 2010 and 2011 it substantially decreased (Figure 3) to a paltry 1.5%.

Figure 3: Share of EU in WASTE portfolio

The European Union projects are administratively complex and carry billing rates that do not cover WASTE's integral cost, but are based on a 'total salary-cost plus fixed overhead' methodology instead, as is customary for NGOs and not really suitable for organisations like WASTE, that are dependent on hourly or daily rates, and for this reason we limit our EU portfolio, only seeking to participate in EU projects – generally led by others – which are attractive from a strategic point of view

75% 75% 75% 75%

55% 54%59%

79%

0%10%20%30%40%50%60%70%80%90%

2008 2009 2010 2011

%

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5,0%

10,0%

15,0%

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2008 2009 2010 2011

EU


Staffing Levels

WASTE hovers around 12 Full Time Equivalents (FTEs, Figure 4). The stable size of the organisation reflects WASTE’s ambition to transfer as many as possible management and implementation responsibilities to its Southern partners. The average staffing levels increased slightly after the measurement moment of January 2011 at 13.53 FTEs.

Figure 4: Number of FTEs

On 1 February 2011 Jacqueline Barendse took over as WASTE Director from Aat van der Wel. Aat stayed with WASTE until 1 September partially to coach Jacqueline in her new position and partially as consultant. On 1 September 2011 he retired officially. In 2010 with 12.95 FTE, the total available working time in the year (including national holidays, annual leave etc.) was 25,589 hours. The total realised time in 2010 was higher, at 26,107 hours. This means that there has been additional work done both declarable and non-declarable of about 500 hours. In 2011 with 13.53 FTE, the total available working time in the year (including national holidays, annual leave etc.) was 25,964 hours. The total realised time in 2011 was also higher, at 26,286 hours. This means that there has been additional work done mostly non-declarable of about 300 hours. As compared to the previous year, the total overtime has decreased, but is still fairly high, particularly as one takes into account that not all overtime is recorded. These figures and the fact that most overtime was not-declarable supports continued and improved organisational monitoring and controls in 2012. It is also of interest to calculate and report some key financial data. The first is the net turnover per full time employee (FTE).

0,02,04,06,08,0

10,012,014,016,0

FT

E

year

Number of FTEs in the last 16 years


Figure 6: Net turnover per FTE (in €)

The net turnover per FTE increased in 2011 partially due to an increase in tariffs for new projects including WASH. Secondly we present the costs per FTE, divided into personnel costs (both direct and indirect) and all other costs (Figure 7). Figure 7 Costs per FTE

The average personnel cost per FTE did not increase3. If anything it decreased marginally. This means that WASTE manages to monitor and control its most important cost components quite well. The gradual increase in other costs per FTE was seemingly also stopped in 2011. Yet closer scrutiny tells us that this was mainly due to a much lower research and development expenditure in 2011 (€ 3.028) as compared to 2010 (€ 28,808). Secondly in 2010 the WASH programme start up implied high acquisition expenditure (€ 41,193). In 2011 this was € 6,232. Correcting for these two, the upward trend continues, thus we continue the investigation into telecommunication and ICT costing.

Financial results and reserves

The net result for 2011 is € 63,642. This will be added to the general reserves. WASTE is still far from having the level of general reserves that has been recommended by our Board as far back as 2004, i.e. WASTE reserves should suffice to cater for a 6-months period without any

3 In 2010 WASTE had relatively large remittances in health pay-outs and other net pay-outs, these have been taken out of the costs figures as these are incidental.

66.00068.00070.00072.00074.00076.00078.00080.000

2007 2008 2009 2010 2011

Turnover/FTE

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

avg personnel cost FTE avg other cost FTE

2008

2009

2010

2011


income. At present general reserves cater for a period of about 3 months without income. The total reserves have increased somewhat more as compared to 2010. For the next few years the aim is to build the reserves to the required level by budgeting a plus of about € 80,000 per annum. WASTE allocates results according to the VFI guidelines regarding charities reserves of 9 March 2004 (Herkströter Commission). As per these guidelines, WASTE uses its reserves to cater for short-term risks related to the fields in which it operates. We are pleased to note that WASTE is gradually moving in the right direction.

Supervisory Board Report WASTE This annual report is drawn up in accordance with the 2011 accounting guidelines for fundraising institutions Directive RJ 650. The Supervisory Board accountability statement is part of this reporting guideline. WASTE endorses the principles of good governance, whereby supervisory, executive and accountability functions are separated. Therefore, in July 2010 the by-laws were changed and in 2011 the changes were effectuated: the former ‘Board of Directors’ became the ‘Supervisory Board’; and the ‘Management Team’ became the ‘Board of Directors’. In the new by-laws the supervisory function is with both the Supervisory Board and the Staff Council. In the pleasant cooperative atmosphere between Staff Council, Board of Directors and Supervisory Board the present structure functioned well in 2011, but for organisational integrity, supervisory authority and clearly defined responsibilities the by-laws will be reviewed and be modified in 2012 accordingly. The Supervisory Board has minimal three and not more than seven members. During the year 2011, members of the Supervisory Board were:

• André Frijters, Chairperson • Varina Tjon a Ten, Secretary • Martijn de Groot, Treasurer • Paul van Koppen • Linda Reijerkerk • Arnold van de Klundert

Accountability statement The Supervisory authority and responsibilities observe general principles. These are currently shared between the Supervisory Board and the Staff Council. In 2012 authority and responsibilities of each will be clearly demarcated. The General principles that are observed today are:

• WASTE distinguishes between the ‘supervisory’ role (adopting or approving plans and critically monitoring the organisation and its results) and the executive role of resp. the Executive Director / Board of Directors

• WASTE has the clear principle to best as possible use funds available, in such a way that it works towards its objectives in an effective and efficient manner;


• WASTE strives to maintain the best possible relationships with partners (knowledge partners, implementing partners) and financiers, with specific attention to information provision and to accepting and handling wishes, questions and complaints.

o The Supervisory Board:

• supervises the Board of Directors and the general affairs of the organisation, ensuring that WASTE’s core values and goals are reflected in its operations;

• monitors the activities of WASTE aimed at realizing the targets and contribute to WASTE’s mission;

• approves the annual report, the annual plan and budget and monitors the progress of the plan throughout the year; approves substantial adjustments of plans; budgets and investments;

o The Director (in cooperation with the Board of Directors):

• is responsible for preparing the long-term strategy, the annual plan, budget and policy, results as well as all day-to-day operations;

• informs the Supervisory Board of all relevant facts and developments; • is accountable to the Supervisory Board for the progress and results concerning the

annual plan and the budget, in quarterly reports and in the annual accounts and annual report. The Supervisory Board approves these, if necessary, with adaptations;

• prepares the agenda for and generally attends meetings of the Supervisory Board. The agenda and all necessary financial information and progress updates for these meetings are provided in advance;

• has an external representative role for the organisation.

Supervisory Board expenses The Supervisory Board consists of volunteers only. Members of the Supervisory Board are not remunerated. From August 2011, travel costs and other costs are covered via a ‘vrijwilligersvergoeding’ amounting to EUR 750 per member and EUR 1000 for the Chairperson. Meetings In 2011, the Supervisory Board held five regular meetings and one joint meeting with the WASTE Staff Council. Main subjects on the Supervisory Board’s agenda in 2011 were:

• Financial sustainability • Organisational changes and progress • Strategic directions in a changing ‘development aid’ environment • Hand-over to new director

Management WASTE

Gouda, 26 June 2012


Preview 2012 and beyond

Theme development In 2012 we will continue to further develop three general themes: Business development and financing, WASTE investments, monitoring and evaluation. Business development and financing WASTE is acknowledged for her focus on aspects of business development (local employment) and financing in our projects. Our partners expect us to take the lead. Yet we have to finalise our knowledge products. In 2011 a small-business manual and training for solid waste and sanitation was prepared and delivered. In 2012 we will build on this and develop a 4 or 5-day training on business development and finance and deliver this to our partners in both North and South. In 2011 discussions started on the development of a BA course on the business development and finance for both sanitation and solid waste. This discussion will be taken one step further in 2012. Investment In 2011 on various occasions we were confronted with requests related to investments in waste related projects. For example we received requests of entrepreneurs who asked for help in further development of their waste-related products or services related to sanitation; investment companies asked us for support with the identification of healthy, fast-growing companies in solid waste. The main dilemma with responding to these request is that the ‘costs precede the revenue’. Our current organizational design leaves very little room to honor these requests because we work on a consultancy basis and have very little reserves available for investments. However, we feel that there is potential in these type of activities and in 2012 will further explore on how to take up this type of work and on how to initially finance this. May be we can cooperate with partners to set-up an investment fund. Monitoring & Evaluation / communication / advocacy In 2011 our PME officer resigned. Not only do we need a replacement to fulfil our duties in WASH, we may use the opportunity to combine PME activities with a communication and advocacy policy. Monitoring on project level is a common good within WASTE. Projects are being monitored based on the requirements of the clients and some projects receive more attention than others. It is therefore difficult to compare progress and quality of different programs and projects of WASTE. All projects should be monitored on an equal footing besides special requirements from the clients. Staff utilization: Efficiency, Effectiveness & Specialisation WASTE is an organization in which most staff is directly or indirectly involved in (technical) advising, (project) management, consultancies, acquisition, managing & developing of tools/knowledge, etc. and preferably all at the same time. Staff cannot often enough apply their specialised skills. This makes the job interesting and lively, but it is also one of the reasons why staff is overloaded with work and work can sometimes not be completed in a satisfactory way or in time. One of the drivers for the reorganisation of WASTE in teams (2011) was ‘the right person at the right place’. In 2012 we will take a next step by organising the work of individual staff in such a way that number and variety of tasks will be limited to what one can deliver, taking


into account knowledge and experience. The expected outcome is an increase of the efficiency and effectiveness of the individual staff member and an improvement in work satisfaction. Currently each consultant is more or less expected to master many knowledge areas, whether business development, financing of urban environmental infrastructure, sustainable human & waste management & reuse and/or emergency sanitation. Starting 2012, staff will be expected to have a basic understanding of these basic WASTE issues and – where needed- a training will be provided. In addition, staff will be encouraged to develop a specific knowledge area. This will be facilitated with training. Also it is the aim to deploy staff in projects based on their specific expertise and technical knowledge. WASTE-wide acquisition There is a concern about the state of the portfolio of WASTE and notable the portfolio of the Solid Waste Team, which was not able to generate enough income to cover the expenses. In 2011 attempts made to strengthen the acquisition efforts by combining the acquisition potentials of both teams were not successful. A WASTE-wide strong portfolio is necessary to meet the objectives mentioned in this Annual Plan 2012 concerning growth of the organization, reduction of the workload and improvement of the financial position of WASTE (reserves). Therefore, to provide a clear organisation embedding, starting 2012 both teams will jointly manage acquisition through the set-up of a special acquisition project (or ‘group’) consisting of dedicated staff from both solid waste and sanitation team, supported by a dedicated staff member of the F&S team. The assignment of this group will be (1) to fill the acquisition gap of 2012 of Euro 341,481 and (2) acquire projects for 2013 and (3) develop a longer-term acquisition policy.

Knowledge management Both Sanitation and Solid Waste Team have an own ‘knowledge manager’. We need to get a better handle on our knowledge, not only over the many documents that were produced in the past, but also on the knowledge that is acquired in ongoing projects. Not only do we need to systematically collect information, we also need to learn on how to ‘package’ it in tools / manuals / trainings and to apply it in our daily practices. The start made with knowledge management in 2011, should start to pay off in 2012. Expected concrete results:

• Existing information is easily accessible to own staff • Knowledge products in ongoing projects is identified systematically and

captured / ‘packaged’ in tools, manuals or otherwise • We have clear ideas on how to use knowledge products for acquisition and

new projects

Increase of financial reserves WASTE is still far from having the level of general reserves that has been recommended as far back as 2004 by our Board of Directors, i.e. WASTE reserves should suffice to cater for a 6-months period without any income. At present general reserves cater for a period of about 3 months without income. The total reserves have increased only marginally in the last few years. This despite the fact that many people worked overtime to generate sufficient income and get the work done.


Thus WASTE has worked out a strategy to increase reserves to the safety levels desired by the Supervisory Board.

• Increase of tariffs. Tariffs are adjusted and made transparent so as to clearly reflect distinction between declarable and non-declarable staff. The tariff setting has been circulated within the organisation, yet one needs to acknowledge that some clients set their own tariff structure. In those cases, the F&S team and management is involved at an early stage to review the viability of these projects.

• Growth / Relative reduction of overhead costs. WASTE will increase the number of consultants in 2012 in absolute terms as well as relative to Finance and Support staff (two to three FTE’s in the Sanitation Team), thus reducing overhead costs percentagewise.

• Efficiency gains to be made; unlike the other two this is notoriously difficult to monitor. Yet we shall attempt to increase the efficiency by: (a) asking staff to specialise more / or focus on their area of specialisation; (b) targeted acquisition and improved knowledge management and (c) framing undeclarable time of the consultants into projects with deliverables and with a project manager who is responsible for time management and deliverables.

Financing We face a number of bottlenecks. Our current model is consultancy: we get paid per day for services we deliver in our projects. We have no other financing. We have small reserves. In 2012 we have to develop a clear plan on how to finance our activities in the future, which might include diversification of our organization, e.g. a WASTE group of legal entities a.o. including a foundation fulfilling ANBI requirements and a BV with a clear focus on business activities (‘commercial’ consultancy an investment activities). We will address these issues in the five-year plan. Own contribution in projects Increasingly, particularly in EU projects, project applicants and their partners are expected to bring in own contributions. For organisations such as WASTE that do not have income other than what it raises from projects, projects with similar deliverables and objectives will be regarded as own contribution. In the case of the EU it is allowed provided these projects are not funded by the EU to bring in these income sources as own contribution. In other words WASTE brings in projects as own contribution. Naturally these projects have to relate closely to the projects at hand, normally have to be in the same region / country and with the same objectives. The implication is that WASTE as a rule cannot work in regions / countries where it is currently not working and in projects with quite different deliverables and objectives, as it can in those cases not raise its own contribution. This is the status in 2012, it may be that in the long-term policy plan to be developed in the course of 2012, other options will be identified, but until then, this is the only option for WASTE's counterpart contribution. Five year policy plan Where do we want to be in five year? How will we get there and what do we need? One of the key activities for 2012 is clarifying our ambitions and drawing the roadmap for the years 2012/2013 – 2017. Issues that will be covered in this five year plan, among others are:

• What do we have, what do we do? (a.o. our assets, our strengths and weaknesses) • For whom do we do it? (a.o. beneficiaries, target group, financiers)


• How can we excel? (a.o knowledge focus, internal organization, quality system, individual qualities and capabilities)

Specific attention points in the creation of the five year plan are: 1. How to involve all staff and some of our partners 2. Incorporate past and recent findings, e.g. findings from the Quantified Participatory

Assessment, learning points from project evaluations 3. Financing: diversification of our sources of income, structural solutions for ‘own

contribution’.etc.


WASTE PROJECTS AND PROGRAMMES

An overview of WASTE's project portfolio is presented below. The overview starts with a list of ongoing projects and programmes (3.1). In Section 3.2 projects that were completed in 2011 are presented. Finally in Section 3.3 projects and programmes in acquisition are presented.

Ongoing projects and programmes

Our projects and programs that continue beyond 2011 are listed below. Their size in terms of net turnover is depicted graphically below (Figure 1). Figure 1: Net turnover MFS (ISSUE 2-WASH), SPA, FINISH, EU and others in 2008, 2009, 2010, 2011

Water, Sanitation and Hygiene (WASH) Alliance, MFS 2011-2015 The Water, Sanitation and Hygiene (WASH) sector requires greater synergy. Six Dutch civil society organisations with extensive experience in WASH have joined forces to form the WASH Alliance: Simavi, Akvo, AMREF, ICCO, RAIN and WASTE. Behind them is a much broader group of Southern and Northern Civil Society Organisations (CSOs) that cooperate within the Alliance. This unprecedented coordination offers unique added value. The main objective of the WASH Alliance’s five year programme (2011-2015) is to reach: reduced poverty and improved health, environmental and economic conditions by empowering people and creating an enabling environment, thus achieving increased sustainable access to and use of safe water and sanitation services and improved hygiene practices for women and marginalised groups. To implement its coordinated water, sanitation and hygiene programme, the members of the WASH Alliance work with their Southern partners in 8 countries in a multi-stakeholder approach. They involve civil society and the private and public sectors: building civil society from the community level up to the local, national and international level, strengthening CSOs and key stakeholders as well as the networks that link them. The ultimate purpose is to ensure that all relevant stakeholders have the capacity to perform well in their own roles, to improve access to water, sanitation and hygiene.

0

100000

200000

300000

400000

500000

MFS SPA FINISH EU Others

2008

2009

2010

2011


The Group forming the WASH Alilance together with their Southern and Northern Civil Society Organisations (CSOs) who cooperate within the Alliance feel that they have an added value:

• An enormous combined outreach and impact, by bringing to the sector increased learning, better focus and critical mass.

• Sustainability through the systematic adherence to five key sustainability principles, called the ‘FIETS’: F inancial, I nstitutional, E nvironmental, T echnological and S ocial sustainability.

• A truly integrated programme covering the entire WASH chain from water supply to sanitation and hygiene promotion from community to the international level.

• An emphasis on in-country and cross-country linking and learning, by building networks and using innovative web-based ICT tools. To do this, the WASH Alliance works directly with 113 Southern partners.

In 2011, WASTE has been busy identifying new (and existing) partner organizations in 7 out of the 8 WASH countries (all except Mali), and for the international programme of WASH as well. Exploratory missions to all countries have been carried out, some of them with colleagues of the other Dutch WASH alliance members and thematic partners as well. With its own partner organizations, WASTE has discussed the approach to sanitation, with a priority for disposal (and treatment) of excreta, while at the same time working on toilets and transport of excreta. WASTE has supported the development of sanitation market researches for all WASH countries, which will be carried out in 2012, in order to have a better view of both demand for and supply of sanitation and financial services. On behalf of the Dutch WASH alliance, WASTE has been the country lead for Nepal (and since 2012 for Ethiopia as well). In order to enhance alliance building, WASTE has been active in some countries, setting up joint contracts with Dutch WASH alliance mebers to local WASH alliance members. In the PME group of the Dutch WASH alliance, WASTE has, amongst others, contributed to the development of the monitoring protocol and the indicator monitoring format. In the international programme group, WASTE has contributed to policy formulation on public private partnerships, and to the approach to financial sustainability of the programme. Currently (June 2012) financial trainings to all local WASH partners are being planned. The local partner organizations of WASTE have organized themselves in 2011 in preparation for the WASH programme, and formed local alliances with the partner organizations of the other Dutch WASH alliance members. During the second half of 2011, in all WASH countries, local WASH coordinators have been recruited and started taking over part of the responsibilities of the Dutch country leads. The local WASH alliances have been working on harmonization and complementarity both within the alliances and with other stakeholders in water and sanitation. This has resulted in planning for 2012 and for the whole WASH period (2011-2015). Partner organizations have been contributing to baseline studies, doing assessments of current WASH situations and defining needs. Moreover, they have contacted local authorities to align their mutual efforts. Currently (March 2012) the reporting on 2011 is being carried out, contracts for 2012 being issued, and most important, the local WASH partner organizations have started implementing their plans for improving sanitation.


Sanitation in Peri-urban areas in Africa (SPA)

The original programme document of the Sanitation in Peri-urban areas in Africa (SPA) aims for water and sewerage utilities to take responsibility for on-site sanitation in peri-urban areas of selected cities: Parakou in Benin, Arba Minch in Ethiopia, Nakuru in Kenya, Kabwe in Zambia, and Blantyre in Malawi. SPA has been running now for over 3 years. An evaluation conducted in 2010 clearly reflects shortcoming in the program. Among other things, SPA assumed that the utilities would take on a lead role, being that they are considered water and sanitation authorities. However, in reality, their main interest remains piped sewerage systems rather than on-site sanitation, leaving on-site sanitation in the slums. The focus shifted from utilities to municipalities, organisations that have the clear mandate to deal with on-site sanitation in any case. The change of focus from utilities toward municipalities was slow as municipalities took on their role in very different, country-specific ways. In the meantime, another development caused a change in approach. The SNS REAAL Water Fund was one of the three co-writers of the programme, expressing its interest in dispensing loans at commercial rates for toilet construction. At that time, virtually no interest existed to make loans available for sanitation hardware with banks in the programme countries. But this has changed over the years, while the lessons learnt for SNS REAAL showed that direct loan dispensing was very complicated if not impossible. For example, Ethiopia does not allow foreign currency remittances out of the country.

Changes in approach of SPA

As a result, the programme approach will change. Some changes will be implemented and some have already been implemented:

• Households in peri-urban areas (slum areas) will take a loan at a local financial institution for toilet construction at their house. It depends on the local situation whether the loan-taker is the house-owner, the landlord or the tenant. The occupants of the house will pay for operation and maintenance. Training: The awareness of sanitation and hygiene of the house occupants and landlords will be increased.

• Small or medium enterprises (SMEs) can be engaged against payment to construct the toilet and to empty the pit. SMEs can take a loan at the same local financial institution for equipment and materials. If the local situation does not permit toilets at each house, public solutions by SMEs are stimulated. Training: SMEs will be assessed for their technical and commercial capacities and given training if needed.

• One or more local finance institutions will dispense the loans to the house-owner, landlord, occupant or enterprise. The loans are given at local commercial rates. The financial institution can be a (local) bank or micro-finance institute (MFI).

• The municipality is the owner of the project in its city. It will facilitate and monitor the process and be accountable to its population. The municipality negotiates with the local financial institute(s) on the lending system, facilitates the SMEs regarding the sanitation services to be delivered, and motivates the population to improve its sanitation situation. If so decided, the municipality will create a sanitation service within the municipality.


• Guarantees for loans, if required, will be agreed between the financial institution, the municipality, and the programme.

Financial INclusion Improves Sanitation and Health (FINISH), DGIS, 2009-2014

FINISH stands for the Financial INclusion Improves Sanitation and Health programme and has been supported and implemented since 2009 by an Indian-Dutch consortium comprising banks, insurance companies, NGOs and academic and government institutions from the two countries. Its objective is to diffuse 1,000,000 safe sanitation systems (i.e. toilets with proper treatment of waste produced) to low-income communities in rural India through mobilising funds from end-user households. Under the FINISH programme, micro-credit and financial schemes are targeted to be combined with life and health micro-insurance packages to give incentives to households to channel their planned investment towards toilets. Simultaneously, there is also investment in local capacity building for the installation and maintenance of toilets and disposal of toilet waste. So far, despite active assistance from DGIS in fund mobilisation, we have not succeeded in attracting the projected balance grant funds of € 5.5 million. Due to the Indian Micro Finance Crisis that fully developed in the course of 2011 the commercial financing also slowed down. Thus most partners had difficulties achieving their targets. Although the programme implementation slowed down markedly, its financials were and are still quite impressive for a sanitation programme anywhere.

Disbursements of funds as on 31 January 2012

Grants € 1.20 million (INR 7.2 crore) Loans by MFI partners € 10.46 million (INR 62.8 crore) Grant leverage ratio 1 : 8.7

Number of sanitation systems constructed as on 31 January 20124

1 April 2009 – 31 March 2010 24,989 1 April 2010 – 31 March 2011 107,059 1April 2011 – 31 January 2012 20,262 Total 152,300

In 2012 FINISH will engage more number of NGO-MFI partners. Till recently new partners that were be co-opted required to have targets of minimum 10,000 safe sanitation systems. Now it also will engage (smaller sized) partners and also those who operate in a Self Help Group-Bank Linkage model.

Public Private Partnerships in Integrated Sustainable Waste Management (PPP-ISWM), UNDP-PPSD, 2007-2012

The PPP-ISWM initiative is a multi-year programme implemented by the UNDP Public-Private Partnerships for Service Delivery (PPPSD) in partnership with WASTE. In country PPP-ISWM initiatives in Lesotho, Malawi, Nicaragua, Bhutan and Nepal, visible progress has been seen and diverse partnerships with formal and informal private sector partners

4 FINISH follows the Indian fiscal year (April - March).


formed with the local authorities and other non state actors including the communities and informal actors. In Lesotho, municipal authorities with the support of an external consultant and PPPSD and WASTE has developed solid waste service tariff structure and devising strategies and seeking national government support to put the new tariff system in action and create the conditions for more private sector participation in the sector on a sustainable basis. At the same time, efforts to enhance capacities of the host municipalities and their partners has continued actively, alongside specific policy and institutional reforms which are necessary to initiate and sustain pro-poor PPP in municipal solid waste management. PPPSD and WASTE have made continued and significant efforts to maximize support to countries building each on their respective comparative advantages. The solid waste portal constituted a platform that country partners and solid waste practitioners can continue to use to engage with practitioners and sustain capacity development support to partnerships that address municipal waste challenges and create opportunities for low-income people. As part of the efforts to sustain PPP-ISWM support at the country and up scaling, alignment and integration of the PPP-ISWM initiatives into UNDP’s strategic country programme priorities are becoming reality in most of the PPP-ISWM countries. Such integration and mainstreaming has contributed to ensure greater country ownership and sustainability of the partnerships beyond the PPP-ISWM programme funding support. To sustain impacts of the PPP initiatives, and expand opportunities for partnerships to increase country impacts, consultations are underway with regional development banks through respective UNDP country offices in Asia and Latin America regions and proposals for up scaling/replication are being discussed between UND and relevant regional development banks (Asian Development Bank and Inter-American Development Bank (IADB) through their Multi-lateral Investment Fund). PPPSD and WASTE teams have played an advisory role in these consultations through supporting the development of quality proposals. Country dialogue platforms have been set up involving national government, municipality, private sector (chamber of commerce), NGOs and community based organizations. Normally, these platforms strengthen and supplement the activities of projects in their respective countries. While projects steering committees and meets on a regular basis to provide strategic advice and direction to implementing partners, a platform can involve more stakeholders over a longer period of time, and can reach outside the PPPs to other related areas.

School sanitation, ICCO, 2008-2012

ICCO, Simavi and WASTE together set up assessments on the situation of sanitation at schools in six African countries. This project will follow up the recommendations resulting from the assessment in Malawi. Four education districts were identified for possible piloting, because of a history of innovation in community and school sanitation, including a business approach to ecosan development of school gardens; community sanitation programs; and existing institutional capacity building programs.


The focus is on a business approach to create demand and support for sustainable school sanitation and the surrounding communities. Public private partnerships with the productive use of sanitation linked to school gardens are attractive to schools and entrepreneurs. The entrepreneur generates income to recoup the investment costs by being granted temporary use of a portion of the school garden and selling the produce. The schools can generate regular income either through the sale of produce or the leasing of portions of the school gardens – which have the added value of fertilizer. As the children are fully involved in the ecosan systems they facilitate the outreach to the community for advocating better sanitation and the reuse of valuable resources. These approaches are in line with both the National Sanitation Policy (ecosan for resource recycling, increased role for private sector in sanitation provision) and the School Health and Nutrition Guidelines (development in school hygiene and sanitation and school gardens).

TransWaste, BOKU, EU, 2009-2012

BOKU, at the University of Vienna, has retained WASTE and Green Partners Romania to provide technical assistance in an innovative programme on formalising the informal and trans-boundary re-use trade between Germany, Austria, Slovakia, Poland, and Hungary. WASTE and many of its partners have been cooperating for several years in working on understanding and designing positive interventions to improve the lives and livelihoods of the informal waste and recycling sector in Europe, and at the same time to improve the environmental, energy, and economic performance of municipal recycling systems. Combining these two lines of work is unusual; most work on recycling either ignores the contributions and skills of the informal sector or seeks ways to prevent them from “stealing” materials that the municipal programmes are working to capture. The realities of recycling in new EU countries suggest that a better course is to work with the informal recycling, reuse, and solid waste sector, and seek to find ways for informal and formal recycling and reuse systems not only to co-exist peacefully, but actually to work together to achieve EU recycling, reuse, and prevention goals. WASTE is a consultant in the multi-year EU project, with a sub-consulting budget of €40.000.

Sanitation and Health SHAW, 2010-2014

By 2014, an enabling environment exists for communities in nine selected districts in NTT, Papua Bharat and Papua Provinces, to realise a sustainable healthy living environment, through coordinated action to promote sanitation and hygiene and to increase access to safe drinking water and school sanitation. This will be monitored and shared at district, provincial and national level to reinforce sector management and for replication. This project promotes the involvement of local, national and international NGOs in the organisation, implementation and coordination of this programme, following the national STBM strategy in close collaboration with the government and UNICEF.


Municipal Reconstruction in the Les Palmes Region of Haiti, VNG, 2011-2015. As part of a larger project in the Les Palmes Region of Haïti, WASTE is asked to support the four cities in the Region of Haiti in the reconstruction and modernisation of their recycling, organics management, waste management, and public cleansing activities. The four municipalities in the Les Palmes region of Haiti, Gressiers, Léogâne, Grand Goâve and Petit- Goâve, joined together and created an association to look for donor support to improve their urban environmental services. In 2010 they approached the Canadian, Dutch and French municipal associations with a request for support in restoring their public services in the water, waste, and sanitation sectors. The project “Municipal Reconstruction in the Les Palmes region of Haiti” is thus a partnership between these cities and several institutions from France, Canada, the Netherlands, including municipal associations and some specific cities. The official start of the project will be in July 2011, and it will continue to the end of 2014. The four cities also joined together to create the technical assistance office ATIP, to be located in Léogâne, to build capacity in the region to advise the municipalities during and after the close of the project. The waste and valorisation component The Dutch association VNGI has agreed to take responsibility for technical and financial support to the four cities to re-establish municipal services in the areas of water, waste management, and sanitation (“assainissement des eaux). WASTE, a Dutch NGO institute specialising in waste managment in low- and middle-income countries, will support ATIP and the municipalities to re-establish and improve the waste management and valorisation systems in the four cities. The aim of the project is to have an affordable, well-functioning, affordable waste management and valorisation system in place in each city, with access to a provisional controlled dumpsite away from the flood zone. The desired result is to have hygienic and pleasant markets, clean cities, waste-free streets and canals, and a lively trade in plastics, metals, and products from organic waste. The project has several different components, ranging from organising a provisional controlled dump to building capacity of rural households to make their own compost and hospitals and clinics to manage their wastes in a hygienic and environmentally safe way. The first “visible” effects of the project will be at least one improved market in each city which has a regular waste and valorisation system, targeted for the end of 2011. Sanitary blocks in the markets will follow, and gradually the Mairies will bring regular, reliable waste service to the whole urban area in each of their cities. For the centre cities (centre-ville) and outlying areas (banlieux) this will be a basic system of disposal points and separate collection of plastics and organic wastes, with an option to pay for house-on-house collection. For the rural areas (sections communales), a basic container service for mixed waste will be supplemented by capacitation for home composting and other safe household management approaches.


Disposal site at market in Léogâne

African Finance Facility, Partners for Water (PfW), 2011 extended till 30 April 2012

Partners for Water (PfW) financed a feasibility study for the set-up of a Financing Facility in Africa for water and sanitation. The project will identify the modality that is most effective and cost-efficient to encourage local (micro) finance institutions to fund small-scale water and sanitation facilities. The study will be executed jointly with Triodos-Facet, ICCO, Fair & Sustainable and local partners. The project includes a Feasibility Study with three distinct phases: Market study; Business plan; Conclusions and action plan The PSO learning work trajectory The PSO learning work trajectory project has the learning goal: Working together to improve own capabilities to build capacity within the sector This project is extended till June 2012 with a corresponding budget of Euro 25,000. The project has two milestones. The output for Milestone 1 is the end publication. The set learning goal of working together is reached, the process has been analysed at the write shop at Cologne. Another outcome of that workshop was that the Learning Group realised that they wanted a monitoring tool to be able to measure and assess their capacity. This resulted in adding a new activity in the Milestone 2 series: working towards QPA assessment tool for the Learning Group. The three outputs under Milestone 2 are: (1) The Learning Guide Parts A (Learning Methods), B (Content), C (Training Templates), D (Database of Training Materials) and E (Training Curriculum) (2) The Quantified Participatory Assessment (QPA) of Organizational Development (3) Harvesting Knowledge. This can be seen as an extension or deepening of the goal in the LWT to Work together to improve own capabilities to build capacity within the sector.


Programmes and projects that were completed in 2011

In 2011 a number of projects were completed. These projects are described below. Cycling out of Poverty Cycling out of Poverty in collaboration with the Bicycle Sponsorship Programme and Workshop (BSPW), within the activities of the Bike2Clean programme, invited WASTE to support them in building the capacity of selected entrepreneurs in the region of Jinja, Uganda. The idea of the programme implementers is that a specific group of local entrepreneurs could, with the use of bicycles or tricycles, to collect waste materials within Jinja and either sell them to the respective industry or process it and produce marketable end-products. The support provided by WASTE was thus oriented to entrepreneurship in solid waste related activities and was in the form of a three-day training session. The training was based on the four-step Entrepreneurship Guide developed by WASTE. BSPW was responsible for the logistical set-up of the working week as well as for the pre-selection of the participants." ACR + WASTE has signed an MoU with the Association of Cities and Regions for Recycling and Sustainable Resource Management (ACR+), an international network of members who share the common aim of promoting the sustainable consumption of resources and management of waste through prevention at source, reuse and recycling. ACR+ currently has close to 100 members, mainly local and regional authorities as well as national networks of local authorities representing around 750 municipalities. Within the framework of our cooperation, ACR+ has commissioned WASTE to undertake training activities in Turkey, related to ISWM and Marine Litter Management, in March 2011, for the HORIZON2020 programme funded by the EU.

Sanitation support and monitoring assistance, BISWA

SNS-REAAL issued a US$ 2 million dollar interest-bearing loan to Bharat Integrated Social Welfare Agency (BISWA), a micro-finance institution (MFI) from India. The loan supports BISWA’s onward lending to their clients for water and sanitation-related activities. WASTE is a project partner of BISWA being responsible, amongst others, for sanitation capacity building of BISWA and its partners. It has entered into a contract with BISWA for this purpose. The micro finance crisis in India has hit BISWA particularly hard. BISWA’s PAR shot up to unsustainable levels. In response BISWA and WASTE decided to terminate the contract whilst BISWA is restructuring its debts.

Training related to ecological- and business development in public sanitation in Ghana, 2011.

In this short project, WASTE has entered into partnership with Denys Engineers & Contractors BV, a local company, to provide six months of soft assistance. In two missions, WASTE will monitor and support the local consultancy company in delivering training and upgrading training, wherever it is required in the field of ecological sanitation and business training for public toilets.


Fair waste practices that work for all the People, MATRA Serbia, 2009-2011

The project, "Fair waste practices," had as its main goal, to support stakeholders to push for political, financial, institutional, and entrepreneurial activities that advance the idea and practice of integrating informal recycling into the solid waste modernisation process in Serbia. It started in June 2009 and closed in December, 2011. It had four Dutch partners, WASTE, Milieu-Kontakt International, Senter-Novem/Agentschap NL, and the HVC, regional waste company in North Holland. It also had four Serbian partners: DURN, Association for the Support of Roma Local Communities, DTI Democratic Transition Initiatives, SKGO, Standing Conference of Cities and Towns of Serbia, and YuRom Centar, Roma support and lobbying initiative. The solid waste modernisation process in the Balkans is driven by the requirements of the European Union for harmonisation of laws and practices with EU directives. One of these is to achieve EU-level recycling rates and producer responsibility. However, there are others, more urgent, such as closing local dumpsites and regionalising disposal. The project had a kind of matrix of activities, in two dimensions, local and national

• Local: capacity development and recycling planning, informal sector business planning and professionalisation; support to the Syndicate to organise in the two project focus regions, which are close to Nis but were not yet part of the Syndicate's operations.

• National level: organisation of a national recycling platform, working with the Standing Conference of Cities and Towns, input to policies and institutional development; occupational recognition of "collector of secondary resources" in the national register of formal occupations

The project had limited success on the local level, in part because of the timing: municipalities were not so willing to commit to practical integration measures but the issue of integration became "discussable". Instead of going towards practical implementation in "our" municipalities, or to a widespread interest in union organising, this part of the project led to a national discussion about how to organise the institutional basis for integration. Unfortunately the Syndicate organising in the project municipalities was not very successful, as it became stranded in local politics and a really disturbing fight between several Roma political factions in one of the regions, Pirot. For this reason YuRom Centar also withdrew from partnership in the project, although they remained supportive and finally, in the end, they re-joined. The project had very important results on the national level. The platform is a runaway success and is continuing, occupational recognition was achieved in the first year of the project, and the closing meeting -- the one we invited SWACH members to attend but failed because of visa issues -- attracted key national stakeholders. This "Pandora" meeting resulted in a kind of national consensus on how to go further with the institutional basis for integration. This conclusion was that organising operational cooperatives as businesses appears to be the most fruitful approach. Our project also influenced the "channeling" of informal sector integration into the institutions of social entrepreneurship at national level, and co-resulted in the setting up of a large fund for supporting entrepreneurship development and formalisation of informal


activities (with an emphasis on supporting ethnic Roma individuals). This is an active and growing line of support for informal integration. Union organising, on the other hand, appears to be much less fruitful and on the way to being marginalised, in part because the process of EU integration labels unions as something "from the state socialist period". The activities of the platform and the closing meeting also attracted many municipalities outside the project region to become involved in integrating their informal sector into their solid waste planning. These other municipalities, including Nis, Serbia's second city in the South, and Cacak, a secondary city in the central Vojvodina area, are much more active and interested than the eight in South Serbia, and are going forward with applying the insights and results. They are also participating in a follow-on initiative to look for financing to implement the results of "Fair Waste Practices" on a boader scale. In follow-up, the Serbian partners and WASTE are part of a new acquisition initiative to get the EU to finance a five-country waste picker integration initiative in Macedonia, Serbia, Kosovo, Albania, and Bulgaria.

“Integrated Sustainable Solid Waste Management in Asia” ISSOWAMA, EU, 2008-2011

ISSOWAMA is a FP7 co-ordinating project, which ran from January 2009 till June 2011. It had the objective to develop a performance assessment system for integrated waste management scenarios, which consisted of a set of qualitative sustainability criteria along with quantitative impact indicators enabling assessment of waste management strategies. The central focus of the project was integration of the sustainability aspects into the existing assessment system, such as environmental impacts (EA), economic considerations and the social situation in the target region, integrating appropriate low-cost and efficient technologies with community-based management and their relevant governance, institutional frameworks and socio-economic constraints, linking waste treatment with poverty reduction and improvement of welfare of the population. A Consortium of the 6 European and 13 Asian insutitions and organisations implemented the project. It delivered a number of documents and tools, e.g. characterisation and evaluation criteria for solid waste management case studies and Relevant potential impacts and methodologies for environmental impacts assessment related to solid-waste management in Asian developing countries amongst others. Nairobi City Compost, with the LEI . Starting on 1 January 2009 and extended till first quarter 2011. WASTE and its partner Environmental Cost Management Centre (ECMC) worked with the LEI, the Agricultural Economic Institute of Wageningen University to develop a research framework and pilot projects with the goal of making a commercial connection between urban wastes requiring safe disposal and the agricultural value chain. The strategy was to identify available (‘unclaimed’) urban organic waste streams, potential including kitchen, garden, commercial, and market wastes, and test technical and economic feasibility of valorising them to make compost or bio-gas. Support and technical Assistance to the Association of Dutch Municipalities in the LOGO South programme. The Association of Dutch Municipalities International Division (VNGI) retained WASTE for their LOGO South programme. Following up a 2008 publication for VNGI, WASTE agreed to support the implementation of seven twinning relationships between Dutch


cities and sister municipalities in Indonesia, Nicaragua, and South Africa. This project had a little additional work in 2011.

Projects and Programmes in Acquisition

There is a concern about the state of the portfolio of WASTE and notable the portfolio of the Solid Waste Team, which was not able to generate enough income to cover the expenses. In 2011 attempts made to strengthen the acquisition efforts by combining the acquisition potentials of both teams were not successful. A WASTE-wide strong portfolio is necessary to meet its objectives concerning growth of the organization, reduction of the workload and improvement of the financial position of WASTE (reserves). Therefore, to provide a clear organisation embedding, starting 2012 both teams will jointly manage acquisition through the set-up of a special acquisition project (or ‘group’) consisting of dedicated staff from both solid waste and sanitation team, supported by a dedicated staff member of the F&S team. The assignment of this group will be (1) to fill the acquisition gap of 2012 of Euro 341,481 and (2) acquire projects for 2013 and (3) develop a longer-term acquisition policy. WASTE operates without a structural subsidy, making it dependent on an active acquisitions programme. Many acquisitions can be fit in between project work, and are paid for as part of the overhead portion of our rates, but sometimes an acquisition is so important, and requires such a sustained level of effort, that we choose to invest “out of pocket” in it. The following acquisitions were in process:

• Getting down to business, Partners for Water (PfW): Piloting a sanitation franchise model in Malawi, Mozambique and South Africa with the water boards of Dutch regions Groot Sallant, Friesland, Vitens and AMECO b.v., about € 60,000, this will be re-submitted in 2012.

• Financial INclusion Improves Sanitation and Health (FINISH): Co-financing by

Bill and Melinda Gates Foundation, US$ 3.5 million. Mainly for strategic reasons, this co-financing did not materialise in 2010. Efforts are going on to resubmit this in 2012.

• Sanitation output based aid financing, India with WSP. No indicative budget yet.

• S(p)eedkits, emergency sanitation: EU 7th framework, global programme. WASTE

is partnering for technical aspects relating to sanitation, share of WASTE € 560,000. This project has been approved. Its starting date is 1 March 2012.

• Emergency sanitation with Red Cross etc., DGIS about € 60,000 submitted and

approved. It commences on 1 January 2012.

• Emergency sanitation OFDA, New Concepts & Modular Technologies for Safe Excreta Disposal in Emergency Settings.

Acquisitions in progress for the Solid waste Team:

• EU FP, Agriculture, Closing Nutriets Cycle etsc (Oct.-Nov. 2011)


• Montenegro (Nov. 2011) • GIZ Operating Models (Sept. 2011) • UNDP Botswana (Nov. 2011) • ISWA Global Metrics (Jan.2011)


Section Two: Financial Report


FINANCIAL RESULTS

BALANCE

31 December 2011 31 December 2010 € € € €

FIXED ASSETS 11.477 27.979

Accounts receivables Debtors 287.736 141.207 Other short term assets 688.734 446.969

976.470 588.176

Liquid assets 773.323 1.240.988

Total Assets 1.761.270 1.857.144

RESERVES Continuity Reserve 295.532 231.891

295.532 231.891

PROVISIONS VAT taxes 0 28.375

0 28.375

SHORT TERM LIABILITIES Creditors 57.687 457.219 Taxes and social securities 28.023 41.103 Other short term liabilities. 1.380.027 1.098.556

1.465.738 1.596.878

TOTAL Liabilities 1.761.270 1.857.144


STATEMENT OF INCOME AND EXPENDITURE

Realisation

Budget

Realisation

2011

2011

2010

€

€

€

€

€

INCOME

- Income own Fundraising 12.619 134.000 39.417

- Income joint actions - 26.400 -

- Income actions third parties 178.874 201.300 -

- Subsidies from governments 2.985.539 3.672.000 3.612.298

- Other income 37.272 - 33.391

TOTAL INCOME 3.214.304 4.033.700 3.685.106

COSTS

Costs Sanitation 1.997.513 2.749.172 2.334.175

Allocated organization costs Sanitation 314.892 361.178 374.339

Total Costs Destination A 2.312.405 3.110.350 2.708.514

Costs Solid waste 127.347 175.963 313.601

Allocated organization costs Solid waste 330.674 333.396 282.463

Total Costs Destination B 458.021 509.359 596.064

FUNDRAISING EXPENDITURES

- Costs own Fundraising 2.446 6.000 2.622

- Costs joint actions - -

- Costs actions third parties 30.123 15.000 16.476

- Costs for Subsidies from governments 34.029 15.000 79.848

66.598 36.000 98.946

MANAGEMENT AND ADMINISTRATION

- Costs Management and Administration 313.638 297.674 278.230

TOTAL COSTS 3.150.662 3.953.383 3.681.754

RESULT 63.642 80.317 3.352

DESTINATION OF THE RESULT

Continuity Reserve 63.642 80.317 52.703

Mutation Reserve School Sanitation - - 49.351-

RESULT 63.642 80.317 3.352


CASH FLOW STATEMENT 31-12-2011

Result 63.641 Depreciation 20.723 Changes Provision 28.375-

55.989

Changes accounts receivable 388.293- Changes short term liabilities 131.140- Changes working capital: 519.433-

Cash flow from operating activities 463.444-

Cash flow from investment activities: 4.221- Investments fixed assets

Balance 467.665-

Cash flow from financing activities: Released deposits / saving accounts -

Position cash 31-12-2011 773.323 Position cash 01-01-2011 1.240.988 Movements in cash 467.665-


ACCOUNTING PRINCIPLES

GENERAL

The annual accounts are reported according to the comprehensive Annual Reporting Guideline 650 (RJ650 for non-profit organizations). Therefore the comparing figures in the report are adjusted.

PRINCIPLES OF VALUATION

Valuation of assets and liabilities and determination of the result takes place under the historical cost convention. Unless presented otherwise at the relevant principle for the specific balance sheet item, assets and liabilities are presented at face value. Income and expenses are accounted for on accrual basis. Profit is only included when realized on the

balance sheet date. Losses originating before the end of the financial year are taken into account if they have become known before preparation of the financial statements.

PRINCIPLES OF VALUATION OF ASSETS AND LIABILITIES Fixed Assets

Fixed assets are presented at cost less accumulated depreciation and, if applicable, less impairments in value. Depreciation is calculated as a fixed percentage of cost, specified as follows: office inventory 20%, computer equipment 33.3%.

Receivables

Receivables are included at face value, less any provision for doubtful accounts. These provisions are determined by individual assessment of the receivables. Project Liabilities In projects liabilities with project partners are created after approval by the board. These liabilities appear under Working advances.

Provisions

Provisions are stated at face value.

PRINCIPLES FOR THE DETERMINATION OF THE RESULT

Grants

The grants and project profits are included in the statement of income and expenditure in the year to which the expenses are charged / in which the loss of income is incurred / in which the operating loss has occurred.

Waste defines the Net Turnover as a result of realised productive hours against the tariff agreed with the clients.

Direct Project Costs Costs are allocated to the objective sanitation, solid waste, fundraising, actions third parties, subsidies from governments and management and administration on the basis of the following criteria:

- Directly attributable costs are allocated directly. - Indirectly attributable costs are apportioned according to a formula based on the number of staff

working on the relevant activity. In doing so, WASTE follows the guideline RJ 650.

Other Income

This includes extraordinary income and costs arise from events that are clearly distinguishable from the ordinary operating activities and have a highly incidental character.


NOTES TO THE SPECIFIC ITEMS OF THE BALANCE SHEET

FIXED ASSETS

The state of the fixed assets has developed according to the following overview:

Total

Office Inventory

Computers

Rental value

€

€

€

€

Position 1 January

Value of purchase 168.533 28.749 106.573 33.211

Cumulated depreciations 140.554- 25.741- 81.602- 33.211-

27.979 3.008 24.971 -

Mutations

Investments 4.221 952 3.269 -

Depreciations 20.723- 1.330- 19.393- -

16.502- 378- 16.124- -

Position 31 December

Value of purchase 172.754 29.701 109.842 33.211

Cumulated depreciations 161.277- 27.071- 100.995- 33.211-

In Balance Sheet 11.477 2.630 8.847 -

ACCOUNTS RECEIVABLES

31 december 31 december

2011 2010

€ €

Debtors 307.491 149.447

Doubtful debtors

Balance per 1 January 8.240- -

Mutation 11.515- 8.240 -

Balance per 31 December 19.755- 8.240-

An amount of € 16,480 regarding an invoice from 2009 with UNDP in the frame of the PPP-ISWM Project

is outstanding at 31-12-2011. There is a 50% chance they will pay.

The Issowama Project has ended on 1 July 2011. The settlement of this project is not received yet. A provision of

11,515 Euro is formed.

Other short term assets

Prepayments of costs 4.987 501

Working advance MFS 2 - 295.556

Working advance PLAN Spa Trust 457.931 25.318

Working advance FINISH 145.824

Balance EU projects 42.865 35.178

Current account Delta Lloyd 2.052 -

Prepaid pension costs 82.721

Amounts to be received 35.075 7.696

688.734 446.969



PLAN Spa Trust

Balance per 1 January 25.318

Money received 199.031-

Direct costs 495.465

Turnover 136.178

432.613

Balance per 31 December 2011 457.931

Liquid assets

Savings bank accounts 508.571 177.824

Current bank accounts 264.489 1.062.062

Cash 262 1.102

773.323 1.240.988

The liquid assets are available on demand. The assets from savings relates mainly to the outstanding

contract obligations to the partners of the WASH Alliance Project.

LIABILITIES 31 december 31 december

2011 2010

€ €

RESERVES

Continuity Reserve

Balance per 1 January 231.891 217.912

Mutation 63.641 13.979

Balance per 31 December 295.532 231.891

Provisions

VAT Taxes

Balance per 1 January 28.375 59.282

Mutation 28.375- 30.907-

Balance per 31 December - 28.375

The provision is meant for possible claims from the Dutch tax authorities regarding VAT of previous years.

The amount of the year 2006 has been released and accounted for as an extraordinary profit.



Other short term liabilities

Working advance MFS 2 154.760 -

Working advance other projects 67.439 293.308

Working advance partners MFS 2 265.685 446.638

Working advance partners PLAN Spa Trust 280.121 -

Working advance partners FINISH 299.968 -

Working advance partners EU projects 5.000 -

Working advances partners other projects 169.830 148.320

Current account Delta Lloyd - 221-

To be paid to employees 1.031 -

Reservation on holiday allowance and holidays 62.634 70.413

Accounts payable 71.704 126.725

Received in advance - -

Other short term liabilities 1.857 13.372

1.380.027 1.098.555

Working advance MFS 2

Balance per 1 January - 25.000-

Money received 1.464.662- -

Direct costs 898.760 -

Finished contracts - -

Turnover 451.287 -

Interest 15.145- -

129.760-

Balance per 31 December 2011 154.760-

Taxes and social security

Tax on salaries and social security 19.508 20.497

Value Added Tax 8.515 20.607

28.023 41.103

Off Balance Obligations Stichting WASTE has a contract for office rent for a period of three year with silent prolongation. Next date of prolongation is 1 November 2014. The net yearly rent is 47,450 Euro, and is indexed yearly. The pension scheme of Stichting WASTE is to be classified as a defined benefit pension on basis of average wages. This pension provider is Delta Lloyd. Fluctuations in the year are now primarily caused by staff changes.


NOTES TO THE SPECIFIC ITEMS OF THE STATEMENT OF INCOME AND EXPENDITURE

Realisation

Budget

Realisation

2011

2011

2010

€

€

€

Subsidies from Governments

DGIS MFS 2 1.350.047 1.432.000 2.403.634

PLAN Spa Trust 631.644 472.500 194.311

Finish 365.547 1.094.200 323.120

Matra 139.848 673.300 225.763

Other Projects 498.453 - 465.470

. 2.985.539 3.672.000 3.612.298

Direct Project costs Sanitation

DGIS MFS 898.760 1.100.000 1.949.225

PLAN Spa Trust 495.465 374.371 32.635

Finish 279.180 982.200 267.405

PSO - LWT 191.756 192.601 13.491

Other Projects 132.352 100.000 71.419

1.997.513 2.749.172 2.334.175

Solid WASTE

Matra 98.279 107.399 .203.404

VNG 17.500 25.000 16.274

Other Projects 11.568 43.564 93.923

127.347 175.963 313.601

DGIS desires that the grant for the MFS 2 program does not exceed 75% of the total income. DGIS grants

received from counterparts can be left aside. Over the year 2011, the DGIS grant is 78,88 % of the total income. NOTES TO THE SPECIFIC ITEMS OF THE STATEMENT OF INCOME AND EXPENDITURE

Stichting WASTE, Gouda Realisation

Budget

Realisation

2011

2011

2010

€

€

€

Salaries and Social Security charges

Salaries 574.566 570.000 575.732

Social Security charges 92.516 86.000 91.233

Pension insurance 91.915 85.000 86.920

Contribution to health insurance 9.950 10.000 10.045

Charged on personnel costs 3.774- - 4.423-

Insurance compensation health 610- - 17.085-

Hired personnel 3.375 - -

767.938 751.000 742.423

The pension costs are € 6,915 higher than budgeted. The contract of a senior staff member has expended to replace

the former director. A temporary worker was hired in order to support the secretariat in CRM tasks.


Other personnel costs

Insurance health risk personnel 27.924 23.000 27.144

Study 8.231 20.000 16.019

Travel office - work 14.228 20.000 19.185

Various personnel costs 11.021 6.800 10.599

61.404 69.800 72.948

ORGANISATION COSTS

Depreciation on fixed assets

Inventory 1.330 1.333 1.323

Computer equipment 19.393 20.000 21.168

20.723 21.333 22.491

General Costs

Documentation 5.749 7.607 3.035

Maintenance hardware-software 34.356 30.000 25.686

Insurances general 1.288 2.008 1.033

Banking costs/Exchange difference 9.862 1.000 163-

Costs related to the Board 3.845 2.200 2.020

Costs Audit and Salary administration 22.288 21.414 33.116

Management-Advice 4.433 5.000 7.515

Environmental policy - 3.000 -

Development Management Information System - 6.000 -

Various costs 3.358 621 19

PR, Acquisition 17.802 33.000 44.322

102.979 111.850 116.583

In the PR, Acquisition costs an amount of 7,312 Euro was spent on a workshop organised bij WASTE on emergency

NOTES TO THE SPECIFIC ITEMS OF THE STATEMENT OF INCOME AND EXPENDITURE

Office supplies

Telephone/fax 5.621 4.000 6.782

Postage costs 473 1.320 503

Office supplies 5.533 6.445 7.128

11.627 11.765 14.414

Stichting WASTE, Gouda Realisation

Budget

Realisation

2011

2011

2010

€

€

€

Housing costs

Rent office 56.466 56.000 55.641

Received from sub-rental 8.482- 8.500- 6.300-

Energy/Gas/Water 11.866 12.000 11.424

Taxes, forfaits, various 1.283 3.000 4.354

61.133 62.500 65.119

Extraordinary results

Extraordinary Losses 912 - 8.240

Extraordinary Profits 28.375- - 36.399-

27.463- - 28.159-

In the extraordinary profits, the VAT tax provision release in the amount of 28.375 Euros is included.


Interest

Interest receipts 15.859 - 7.466

Accounted to MFS 2 15.145 - 2.235

714 - 5.232


ANNEX 1. EXPLANATORY NOTES ON BALANCE SHEET

General remarks

In 2011 billing rates have been revised. This has been affected in the WASH projects and other new projects. For some ongoing projects these rates will be used starting 1 January 2012 and for some where it is not possible, separate tariffs remain.

Fixed assets: Book value and depreciation

Book values are under three different headings: rental value, inventory and computers. These depreciate in 10, 5 and 3 years, respectively. The rental value or the improvements that WASTE has made in the interior of the building (interior walls, ceiling systems, internal cabling) has been fully depreciated and its remaining book value is € 0. The inventory has been depreciated (€ 1,330) as per budget (new office chairs). The computer depreciation (€ 19,393) is as per budget.

Current assets: other short-term assets

Other short-term credits

The reservation made for leave days will be settled in the month of April 2012 for most staff, so that the new regulations will take effect for all those that opt for the cash for leave payment option.

Explanatory notes with the statement of income and expenditure

Salaries and social security charges

All are closely corresponding to the budgeted figures, with the exceptions of social security charges and pensions. The higher pay-out in social security charges (€ 92,516 or €6,516 above budget) is caused by legal changes. The higher pay-out in pensions (€91,915 or € 6,195 above budget) is caused by legal changes and a change in the pension fund contract. Hired personnel: These reflect the cost for recruiting a student through a temporary employment agency for filling in data in WASTE’s external contact data base (CSR).

Charged on personnel costs

Study at € 8,231 is much below budgeted figure of € 20,000. There have been few requests from the teams and this is something to work on in 2012.

General costs

Banking costs (€ 9,862) relates to the payment received from UN-Habitat for the US$ contract. By the time the payment came, the exchange rate of the US to the Euro had considerable worsened. Finally dollars were sold in two tranches at the most appropriate times which reduced the loss from an initial € 12,000 to € 9,862. Board costs are somewhat higher than budgeted, as a decision was made halfway through 2011 to pay minor allowances to board members (€ 750/annum).


Office costs

Telephone costs (€ 5,621) have been reduced as compared to 2010 (€ 6,782) but not by as much as budgeted (€ 4,000). This will be a point of attention in 2012.

RATIO'S Year Year 2011 2010

% costs own fund raising / income own fund raising 19% 7%

% costs allocated to destinations / total costs 88% 90%

% costs allocated to destinations / total income 86% 90%

% costs management and administration / total costs 10% 8%

Explanation: % Fund raising: Mainly staff time and some travel costs were made in order to collect funds for own activities.

% Costs Destination towards total income and towards total costs: The costs allocated to destinations in relation to the total costs and in relation to the total income are 88% resp. 86% in 2011. This means in fact that the margin is very small. Also, it means that the largest part of the total costs and the largest part of the total income is spend directly on the destinations WASTE is focused on.

% Costs Management and Administration towards total costs: The 10 % in 2011 is a direct concequence to our policy to spend most of the costs directly on the Destinations.


ANNEX 2. SPECIFICATION AND DIVISION OF COSTS TO DESTINATION


Annex 2. Specification and division of costs to destination

Year 2011 Amounts in EURO

Destination Destination Recruitment Profits

Actions third

Management

Total 2011

Budget 2011

Total 2010

Costs Sanitation Solid waste Own Funds

Joint Actions parties Subsidies & Admin

Subsidies and Contributions 1.997.513 127.347 2.124.860 2.925.135 2.647.776

Remittance 0,00 0,00 0,00 0,00 0,00

Purchases and acquisitions 0,00 0,00 0,00 0,00 0,00

Outsourced work 0,00 0,00 0,00 0,00 0,00

Publicity and communication 3.049 2.930 0,00 0,00 0,00 0,00 2.563 8.542 10.000 3.215

Personnel costs 249.932 268.261 2.142 0,00 29.476 20.480 259.050 829.341 820.800 815.372

Housing costs 21.824 20.969 0,00 0,00 0,00 0,00 18.340 61.133 62.500 65.119

Office – and general costs 32.688 31.406 304 0,00 647 13.549 27.469 106.064 113.615 127.781

Depreciation and intrest 7.398 7.108 0,00 0,00 0,00 0,00 6.217 20.723 21.333 22.491

Total 2.312.405 458.021 2.446 0 30.123 34.029 313. 638 3.150.662 3.953.383 3.681.754


ANNEX 3. WASTE ORGANISATION – REFERENCE

2011 was the year of the teams learning how to function in the new environment. A sketch of the organisation is presented below.

Staff

WASTE has a staff divided into three operational teams: Sanitation, Solid Waste and Finance & Support Team. The Management Team consists of the Managing Director and the leaders of each of the teams. The staff is listed below.

Managing Director

Mr. Aat van der Wel stepped down as Director on 31 January 2011. He officially retired end August 2011. From 1 February 2011: Ms. Jacqueline Barendse, Development Financing and Banking Specialist, Direct e-mail: [email protected]

A note on the salary of the Managing Director

WASTE has always stated that its remuneration for all staff is below market value. This also holds true for the Director. For the whole of 2011, Jacqueline Barendse's gross salary was € 3,267 per month FTE equivalent € 3,800)5.

Sanitation Team:

Stan Maessen, Sanitation Adviser, MSc Civil Engineer, Team Leader Direct e-mail: [email protected] Aat van der Wel, Governance Advisor, retired 1 September 2011 Gert de Bruijne, Sanitation Adviser, Knowledge Management, MA Politicology Direct e-mail: [email protected] Valentin Post, Financial Controller/Senior Adviser, MBA environment, MA economics Direct e-mail: [email protected] Niels Lenderink, Sanitation Adviser, MSc Physical Geography / Hydrology Direct e-mail: [email protected] Emeline Bereziat, Junior Adviser Direct e-mail: [email protected]

Solid Waste Team:

Ms. Jacqueline Barendse, Development Financing and Banking Specialist, Team leader from mid-year onwards Direct e-mail: [email protected] Lilliana Abarca, Solid Waste Adviser, Trainer, MSc Chemistry Team Leader till mid-year Direct e-mail: [email protected]

5 In addition she, like all WASTE staff, receives an internet allowance of € 150 / per annum and a medical allowance

of € 600 per annum. Also travel (public transport) is reimbursed in full. WASTE does not pay a 13th month or any other special benefits beyond what is legally required.


Anne Scheinberg, Solid Waste Adviser, MPA, Socio-economist Direct e-mail: [email protected] Ivo Haenen, Solid Waste Adviser, MA Human Geography Direct e-mail: [email protected] Verele de Vreede, Information Officer, MA Human Geography Direct e-mail: [email protected] Nathalie Agathos, Junior Adviser, Msc Environmental Technology Direct e-mail: [email protected]

Finance and Support Team (F&S)

Valentin Post, Team Leader general email: [email protected] Helma Ballemans, Adminstrator Direct e-mail: [email protected] Kiwako Mogi, Administrative Assistant, ICT manager Direct e-mail: [email protected] Tatiana Lukyanskaya, Office Manager Direct e-mail: [email protected] Mireille Portier, Office Manager Direct e-mail: [email protected] Profiles and C.V.s of the staff are available upon request to [email protected].

Partners

WASTE, as one of its key assets and strengths, maintains long-term relationships with its Southern partners. During 2011 a relatively large number of new partners joined, particularly under WASH and FINISH. Both projects have their own partner policy. Their respective partner policies (coupled with criteria of ISSUE-2) have been instrumental in formulating aspects of WASTE’s partner policy. The partner policy is close to being finalised. WASTE's most important partners are shown on the website.

Physical Plant, Tools, ICT

In 2009, WASTE made the changeover from a windows-based to an open-source ICT environment. ICT support is completely outsourced, increasing efficiency and allowing us to make maximum use of the global network of open-source suppliers and support organisations committed to digital solidarity. In 2010 and 2011, issues relating to transfer of data between Open Office and MS-Office were a constant eyesore. Formatting of documents became a time consuming and sometimes


frustrating affair. Thus the earlier decision to go for a completely open ICT environment will be partially reversed in 2012, when MS-Office will be re-introduced. We will also change our time registration system as the developer has stopped working and no other software company was found willing to further develop this tailor made system. An question that remains is whether we maintain, digitalise, or even let go of our extensive physical library – one of the most extensive specialised libraries on solid waste and sanitation in Europe, with a wealth of both published and grey literature information.

Interns

Five interns from three different nationalities were working as interns at WASTE during 2011. These were Nathalie Le Meur, Arthur Ho and Marion Hasse (France, ECP University), Rachel Savain (USA, Bard Center for Envrionmental Policy) and Li Wang (China, Erasmus University/Rotterdam School of Management). The interns are all fully engaged in and budgeted under projects. This enables them to obtain relevant work experience and/or complete their theses. Only Li Wang is actually residing in the Netherlands during his studies. The other interns have been assigned to projects in the field. Results of their work are used by WASTE itself as well as by its partners.

Geographic scope

Another way of looking at the organisation is to see where WASTE is currently active. From Figure 1 below it becomes obvious that WASTE’s activities are becoming more geographically focused. Yet the nature of the organisation’s specialities (urban environment) and the way they are often contracted (under very specific terms of reference and for short durations) presently prevent it from focusing on a still more limited number of countries.

Figure 1: Programmes in the “South”

Countries where WASTE is active Red dots stand for countries with ongoing projects: yellow dots for countries with projects that closed in 2011, and dark blue dots for countries where WASTE has just started.


Latin America: Peru (PPP-ISWM), Nicaragua (PPP-ISWM), Costa Rica (PSO), Haiti (VNG) Africa: Benin (SPA, WASH, PSO, AFF), Ghana (WASH, AFF, school sanitation), Ethiopia (SPA, WASH), Uganda (WASH, AFF, CooP), Kenya (WASH, AFF), Malawi (WASH, PPP-ISWM, SPA, School sanitation), Zambia (SPA), Lesotho (PPP-ISWM) Asia: different countries Thailand, India etc (ISSOWAMA), India (FINISH, BISWA, PSO), Bangladesh (WASH), Nepal (WASH, PPP-ISWM), Bhutan (PPP-ISWM), Indonesia (SHAW) and the Philippines (PSO). Eastern Europe: different countries Slovakia, Poland, Hungary etc (BOKU), Serbia (MATRA)

Internal Quality Management Systems

Further improvements in the management information system on time registration could not take place as the developer quit the business and despite many efforts, no other ICT company was willing to further develop this tailor made system. The implication is that in 2012 WASTE will need to change to a different supplier. To this effect terms of reference have been developed, companies invited and a selection has been made. What is new is that the time registration software will be integrated with the financial software. The new management information system will be implemented in the first half of 2012. Implementation of the quality management trajectory ('ISO - light') that was rescheduled to 2012 is continuing. All loose “policy ends” will be tied, the teams will have their own operational structures and these will be documented. Most importantly quality management principles will be used for knowledge management, meaning that processes will start for proper documentation of knowledge and knowledge products. Perhaps in the second half of 2012 or early 2013 the systems at WASTE can be assessed again against quality management guidelines.


ANNEX 4. BUDGET 2012

Code/ description Budget 2012

10.110/Turnover projects acquisition 375.000,00 10.120/Turnover Other Projects with VAT 180.495,00 10.130/Turnover other Projects 124.669,00 10.140/Turnover Projects DGIS 220.700,00 10.141/Turnover Projects WASH 368.200,00

10.199/TURNOVER PROJECTS 1.269.064,00

30.999/TOTAL INCOME 1.269.064,00

50.110/Gross Salaries incl. Holiday allowance -638.929,00 50.120/Contribution to Health Insurance -10.800,00 50.130/Social Security Charges -109.346,00 50.140/Pension Insurance -120.000,00 50.150/Insurance Health risk personnel -34.679,00 50.160/Net Compensations -6.240,00

50.199Direct PERSONNEL COSTS -919.994,00

50.210/ Insurances Personnel -4.000,00 50.220/Travel Costs -15.000,00 50.230/Studying personnel -20.000,00 50.240/Consumption costs -1.000,00 50.250/Various/ Visas/ Vaccinations -1.000,00

50.299/INDIRECT PERSONNEL COSTS -41.000,00

60.110Payroll Outsourcing -3.000,00 60.120/Auditor Costs -20.000,00 60.140/Advising by third parties -18.000,00

60.199/Third Party SERVICES -41.000,00

60.210/Telephone/email/internet -8.000,00 60.220/Printing and Shipping -1.000,00 60.230/Office supplies -2.000,00 60.240/Copying costs -3.700,00 60.250/Small Inventory and its maintenance -500,00 60.260/Depreciation Inventory -1.300,00 60.270/Documentation / Subscriptions -500,00 60.280/General Insurances -1.500,00

60.299/OFFICE COSTS -18.500,00


60.310/Banking costs -500,00

60.399/BANKING COSTS -500,00

60.410/Board Costs -5.500,00 60.420/Subscriptions / memberships -500,00

60.499/BOARD COSTS -6.000,00

60.510/Computer materials -500,00 60.130/Computersystem Helpdesk -17.000,00 60.520/System en Software -25.000,00 60.540/Depriciation Computers -20.000,00

60.599/AUTOMATION -62.500,00

60.610/Renting -57.934,25 60.620/Subletting 4.250,00 60.630/Energy costs -10.710,00 60.640/Charges Levied -2.000,00 60.650/Other Housing costs -500,00

60.699/Housing -66.894,25

60.810/Acquisition costs -10.000,00 60.820/Presentation and Publicity -10.000,00 60.830/Subscriptions and memberships -6.000,00

60.849/ACQUISITION -26.000,00

60.850/Strategy/MIS 60.860/CSR & Milieubeleid -1.000,00 60.880/Various -2.000,00

60.899/VARIOUS -3.000,00

80.999/TOTAL COSTS -1.185.388,25

99.999/Operating Result 83.675,75

The Budget 2012 is not adjusted to Guideline RJ650. No comparing figures according to RJ 650 were available at the moment the Budget 2012 was established.

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