Water and Sanitation Hibah

IndII Wrap-up Conference14th June 2011

Jim Coucouvinis

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Water and Sanitation HibahRetrospective and Perspective

•What did we set out to do?

•How did we do it?

•Who did it?

•What did we learn?

•Where do we go from here?

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What we set out to do

•Support GoI objectives in the WSS sector: MDGsPDAM Debt restructuring Increase investment in WSS

•Address known problems in the WSS sector:Underinvestment in WSSLG responsibility for WSSLow PDAM coverage to poor households Inadequate governance in the WSS sector

•Sustainability of improvements

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How we did it

• Designed and implemented Hibah Program using GoI systems and procedures• Legally binding obligations by LGs to implement

the program•Hibah rules:– Grant goes to LG based on verified outputs of new connections

to poor households– LG equity in PDAM

• Left the LG and PDAM to set their own implementation arrangements within the hibah rules….and see what happens

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Who did what?

The GoI implemented the programThe AusAID grant went to GoI budget, and MoF DIPThe DGHS was the executing agency:• Determined the award of the hibah• Set the technical requirements• Set the poverty targeting• Verified the outputs

The LG:• signed the on-granting agreement with MoF• The LG secured a DPRD regulation for equity investment• The LG invested equity into the PDAM

The PDAM: Implemented the program Set the connection policy Pre-financed or waited for LG equity

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What did we learn?

• The design works?• LG and PDAM are highly motivated by the program• Equity investment is a differentiating factor• PDAM policy on connections is innovative• Poor households are good customers.•Walikota/Bupati recognise constituency benefits• Real benefits to quality of life for recipients• Evidence of payment accelerated the program• 97% of connected households <900 VA• Sanitation Hibah requires greater socialisation inputs

and longer time to implement

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Where to from here?

•Greater coverage > mainstreaming•Closer linkage to other AusAID and GoI

initiatives – borrowing by PDAMs (PerPres29)•Performance based – PDAM > UfW; LG > Tariffs•Multi year program > weaker LG/PDAMs can join•More competitive selection of PDAMs •Pilot sub-project > bidding for hibah• Linkage to rural > CBO program•Donor coordination

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DONOR GOI

LOCAL GOVERNMENT

PDAM

BETTER SERVICE(New connections)

VERIFICATION

Agreement

Grant

LG Equity

Action