Rudolf FrauendorferAsian Development Bank

Non-State Delivery of Water and Sanitation Services:

Sharing Lessons Learned

UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery

ADB HQ, Manila, Philippines19-20 April 2010

Water Supply and Sanitation Coverage

Water supply coverage – on track

Sanitation coverage – mixed resultsMore work needs to be done in Cambodia, Indonesia, Lao PDR, Mongolia, Fiji, Kiribati, Papua New Guinea and Timor Leste.

While the progress in meeting quantitative targets is significant and laudable, there are continuing concerns over the quality of the services.

It is estimated that 90% of Asia’s wastewater is discharged untreated – polluting groundwater, rivers and coasts.

What needs to be done?

Create an enabling environmentSanitation policies and plans

Institutional arrangement

Capacity development

Sustainable and affordable financing and cost recovery mechanism

Increase awareness andinvolve stakeholders

Hygiene and sanitation education in schools

Social marketing of sanitation

Working with communities: in planning, financing, construction, operation and management of facilities

What needs to be done?

Increase investments

Allocate budget for sanitation

Promote partnership with the private sector

Support small-scale providers and entrepreneurs

Increase public awareness and involve stakeholders to stimulate demand

Address affordability and sustainability issues

Address administrative and legal constraints

It is estimated that the annual costs of meeting the 2015 sanitation target are about $7 billion for sanitation facilities, and $53 billion for wastewater treatment.

It is estimated that the annual costs of meeting the 2015 sanitation target are about $7 billion for sanitation facilities, and $53 billion for wastewater treatment.

What needs to be done?

Target the poor

Work with NSPs

Information, education and capacity development

Participation of the poor in planning, implementation and monitoring

Partnership between the local governments, poor communities and NSPs

Innovative financing

approaches

Output-based aid:

Nepal, Philippines

Microfinancing:

Bangladesh, Philippines

Revolving fund: India

Viet Nam

NSPs: Responding to Fill the Gap

Water NSPsInformal private water providersSmall-scale independent providers and small water enterprisesCivil society organizations (NGOs, FBOs, CBOs) supporting community-based managementPPP operators for water services

Sanitation NSPsSmall private providers – typically support household-level services, such as construction of toilets, emptying pits, desludging septic tanks, supplying component parts, etc.Civil society organizations supporting community-based management, sanitation promotion and marketingPPP operators – typically large-scale urban water and sewerage systems

NSPs: Responding to Fill the Gap

Engaging with stakeholders

Promotion, social marketing, advocacy, CLTSHygiene, sanitation and health educationEmpowerment and capacity developmentCommunity based solutionsMarketing low cost solutions

Providing technological optionsSmall piped networkSeptage managementDecentralized wastewater treatmentReuse of waste: ecosan toilets, biogas

Introducing innovative financing

Issues and Actions

Issues Actions needed

Governance Government priority

Inclusion of NSPs in plans and strategies

Institutional support for NSPs

Coordination and collaboration between central and local governments, public utilities, NSPs and development agencies

Regulation Clear areas for NSP engagement

Contracts and permits

Performance standards

Tariff regulation

Water allocation rights

Issues and Actions

Issues Actions needed

Effective service delivery

Performance monitoring and benchmarkingAccess to affordable and appropriate technologies and delivery systems

Financial Accessible and affordable financing mechanismsTargeted subsidiesFlexible payment terms; socialized fee structure

Capacity development needs

Business planningTariff/user fee structuringTechnicalKnowledge on water resource protection

ADB’s Contribution

Technical assistanceUrban services for the poor

Pilot and demonstration activityFinancing models for small-scale water providers (PHI)Small-piped networks (PHI, IND, VIE)

Output-based aidwater supply connections and HH latrines (NEP)

Lending Private concessionaire (INO)

Lessons Learned

Enabling environment

Stakeholder awareness and participation

Institution building

Partnerships among stakeholders

Commitment from users to contribute financially

Lessons Learned

Social marketing, community-led initiatives

Consideration of social aspects

Adequate support systems and capacity development on technical, financial and management options.

Provision of water supply and sanitation services as an entry point for other development initiatives.

Sanitation coverage in Asia is increasing

Quality of service still major concern

NSPs cover 10-50% of the population

Address institutional, legal and financial constraints

Successful WSS programs of NSP that can be replicated and scaled up

Engage communities and partner with the private sector to improve efficiency in service delivery

Support non-state providers to reach the uncovered sectors, especially the poor

www.adb.org

THANK YOU

UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery

ADB HQ, Manila, Philippines19-20 April 2010