NON-STATE PROVISION OF WASH SERVICES IN EAST ASIA AND THE PACIFICAndy Robinson, UNICEF EAPRO Consultant

Content: WASH NSPs

WASH in the East Asia and Pacific region Key features of NSP services Key issues around NSP services Challenges to improving NSP services Success factors

Water Supply in the EAP region Improved water supply coverage (JMP

2008 data)Regional averages:

50% Oceania

86% South-eastern Asia

89% Eastern Asia

High range across region:

0%-60% unimproved WS

6%-100% piped WS

High rural population

Sanitation in the EAP region

Improved sanitation coverage (JMP 2008 data)

Regional averages:

56% Eastern Asia

69% South-eastern Asia

High range across region:

0%-64% open defecation

29%-100% improved san.

High rural population

Equity in WASH services

Water supply Lower access by poor Much lower service quality (time to collect,

contamination, reliability, consumption)

Sanitation Much lower access by poor Higher disease and

economic burdens from unsafe disposal

Source: UNICEF (2009) Status and trends in drinking water and sanitation in East Asia and the Pacific

WASH: Non-State Providers

Water Supply NSPs

Piped network operators(utility supply, independent source) Point source operators

(kiosks, standposts, boreholes, handpumps, tanks, bottled water producers)

Mobile distributors(tankers, trucks, carts, carriers)

Support services(drillers, well diggers, pipelayers, plumbers, mechanics electricians)

Manufacturers(pipes, pipe fittings, water meters, pumps, generators, water tanks, precast concrete goods)

Sanitation NSPs

Builders (latrines, sewer connections, septic tanks, soakaways, drains, toilet

blocks) Mobile waste collectors

(hand emptiers, mechanized systems, vacuum trucks, garbage trucks)

System operators(sewer networks, treatment works, dumps, sanitary landfills, incinerators)

Support services(marketing, hygiene promotion, community development)

Manufacturers(latrine pans, pedestal toilets, washbasins, plastic tanks, pipes,

potties, diapers, soap, detergents, precast concrete goods)

Network water and sewerage operators

Waste management services

Non-network water providers

Toilet providers

Who are the Non-State Providers?

International

Corporate

International

Corporate

FormalPrivateFormalPrivate

Informal Private

Informal Private

Community

Groups

Community

Groups

Local NGOsLocal NGOs

International NGOs

International NGOs

URBAN

RURAL

WS: Volume of NSP services

Small-scale water providers (World Bank, 2005)> 10% in Cambodia & Philippines> 30% in Vietnam> 50% in Indonesia Cambodia Small Towns Survey (BURGEAP, 2006)17% paid for delivery by water vendors3% connected to mini piped networks Metro Manila water supply (ADB, 2004)30% using small-scale water providers (for some or all water)50% urban poor households using small-scale providers Rural water supply in the Pacific (Willets et

al, 2007)NGOs & FBOs providing primary water services in many areas(due to limited public and private capacity in remote island states)

SAN: Volume of NSP servicesHigher proportion of NSP services than water supply Septic tank coverage in urban areas (AECOM, 2010)40% in the Philippines63% in Indonesia77% in Vietnam Private provision of new rural latrines (various,

2007-09)65% in Timor-Leste (lower due to small market and large UN & NGO presence) 87% in Cambodia88% in Lao PDR Sanitation entrepreneurs (BPD, 2008)10% sanitation treatment and disposal by private providers70% sanitation transport by private providers90% household facility provision by private providers

40%-80% septic tank coverage in SE Asia40%-80% septic tank coverage in SE Asia

Key NSP issues

Lack of recognition or inclusionNSPs often excluded from sector activities: Little recognition of the volume of NSP services Few alternatives to NSP services in many low-

income communities (i.e. critical services; quality affects health)

Significant capacity and resources in NSPs High household investment in NSP services

(both non-poor and poor households)

Failure to include NSPs in sector activities affects scale, cost-effectiveness and sustainability of interventions.

Affordability

Flexible and convenient

services

Flexible and convenient

services

Low quality +

high prices = high profit?

Low quality +

high prices = high profit?

Studies suggest that informal provider prices are often similar to public service prices (despite subsidies) … where competition exists.

Service quality

Assumption that NSP service quality is low? Independent network WS comparable to utility WS satisfaction surveys (e.g. Manila) find few

differences between NSP and other services Competition important to service quality? Water quality issues among all providers?

(evidenced by complementary use of bottled water)

Sanitation: service quality problems Badly designed septic tanks and latrines Limited knowledge of key hygiene principles?

Public finance

Bulk of WASH public finance to non-poor? Utility water and sanitation subsidies (non-poor urban) Household latrine subsidies (non-poor rural) Septage management finance (non-poor urban,

commercial)

Ideology that expanding utility and CBO supply will (eventually)

reach the poor … but a slow process in practice? Inadequate targeting (reliance

on processes influenced by local political economy) Little public finance to support NSP services

Policy alignment

NGOs, FBOs, CSOs, CBOs: Independent objectives, policies and

constituencies Limited coordination and co-implementation

(risk of undermining other provider interventions)

Little sharing of resources and capacity Sustainability issues (linked to finance &

objectives)

Private sector (formal and informal): Prohibition ineffective (enforcement limited) Few incentives or support mechanisms

Challenges to improved NSP services High uncertainty and risk(asset seizure,

corruption, rent seeking, lack of protection)

Vested interests (public providers, politicians, profiteers)

Administrative, legal and financial barriers (tenure, paperwork, fees, registration)

Ineffective regulation(limited capacity, resources or authority for enforcement)

Success factors (1)

Information (service mapping, evidence of costs of inaction, identification of high-risk areas)

Pro-poor units and funds (explicit objectives, specialist skills, performance incentives)

Asset protection and investment guarantees (for competent providers)

Political support (high-level advocacy, evidence of investment benefits, outcome-based incentives)

Phased approach (recognize capacity & resource constraints; willingness to pay; scale requirements)

And ….

Success factors (2)

Appropriate finance (demand-side, performance-based, objective targeting, and enabling environment)

Effective regulation (encourage registration and self-regulation through incentives & social accountability)

Professional support services (business development, capacity building, access to credit)

Partnerships (local government facilitation + NGO skills + private sector efficiency)

In Summary

Non-State Providers = diverse + complex group

Important services (with potential for more)

Enabling environments inadequate (for NSPs)

NSPs hard to monitor and regulate Need a more incentive and performance-

based framework (rather than regulations and penalties)

Thank You!

Recent sanitation campaign in the Philippines: “Check your septic tank or swallow the consequences”

Recent sanitation campaign in the Philippines: “Check your septic tank or swallow the consequences”