urban sanitation diagnostic tool nairobi october 2013
DESCRIPTION
This presentation was given at the 3rd IWA Development Congress "Catalysing Urban Water" which took place in Nairobi in October 2013. Sophie Trémolet presents a roadmap for designing urban sanitation projects. Targeted at donors, policy and decision makers, this roadmap guides the financing of urban sanitation from inception to implementation.TRANSCRIPT
DELIVERING URBAN SANITATION AT SCALE A ROADMAP FOR DESIGNING URBAN SANITATION PROJECTS
Sophie Trémolet, October 15th, 2013, Nairobi
The urban sanitation challenge in low and middle income countries
A.
3
Diverse urban sanitation challenges in SSA
4
Urban sanitation : growing challenges
Rapid urbanisation. By 2030, 6 out of every 10 people will live in a city
Access gap is likely to grow in low income countries with rapid urbanisation
The existing infrastructure is insufficiently maintained and rapidly deteriorating (particularly in former Eastern Europe / MENA region)
Region Annual urban population growth (WB database, 2011)
World 2.11 %
Sub-Saharan Africa 3.92 %
Middle East & North Africa
2.43 %
East Asia & Pacific 2.60 %
South Asia 2.57 %
Latin America & Caribbean
1.49 %
OECD members 1.06 %
Low income 3.7 %
5
Insufficient sewerage charges – can barely cover operating charges and almost never
On-site sanitation markets are inefficiently structured and do not receive adequate support from the public sector In Dar Es Salaam, the Municipality spent only 0.3% of its
budget on on-site sanitation in 2009 to serve a population of about 1 million. 99% of public spending goes to sewerage, which served 10% of the population (WaterAid, 2013)
Currently, the vast majority of urban sanitation investments are funded through donor support, hence the need for strengthening the quality of those investments
Who is paying for urban sanitation?
6
Donors’ commitments to sanitation went from 30% to 60% of total commitments to water sector in last two years
Donor allocations: a shift to sanitation?
2010 20110
500100015002000250030003500
Donors' commitment to WASH (USD millions) OECD DAC database
Sanitation (basic and large systems)Water (drinking water and large systems)
7
Donors’ investments still largely in large sanitation systems – this share has been increasing in last 2 years (OECD data)
Ongoing emphasis on large systems
2010
2011
2010
2011
2010
2011
All Donors,
Total
DAC Countries,
Total
Multilat-eral, Total
0200400600800
10001200140016001800
Large sanitation systems
Basic sanitation
EIB / KFW / AFD Guidance document An overview
B.
9
A joint initiative on urban sanitation
Joint initiative between EIB, KfW and AFD to collaborate on the design and implementation of urban sanitation projects, to share methods and lessons
Collectively these agencies are involved in the design and implementation of a variety of urban sanitation projects, at different scales and in different areas Through direct loans Jointly through the mutual reliance initiative With possibility of matching grant funds from the European Commission
They identified a lack of operational guidance documents for urban sanitation planning for governments and development banks Existing guidance often takes a micro-planning view of the market, some
of them at a community level “Master plans" produced by international consultants are often too
focused on large-scale infrastructure
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Guidance document - overview
Key features Objective: help formulate better decisions for designing
sanitation investments in urban areas in low and middle-income countries
Target audience: primarily aimed at governments and development banks designing urban sanitation investments
Integrated approach to urban sanitation: focus on “urban sanitation systems” Areas that make up the “urban continuum”, based on population
density criteria All types of sanitation (domestic use but also taking account of
industrial uses) Other related sectors (such as water) are to be dealt with in
conjunction
Sets out a roadmap for designing sanitation projects/programmes: Carry out a diagnostic of existing sanitation services in a
given area with urban characteristics Design sanitation interventions that tackle identified
challenges in a sustainable manner
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Learning from diverse experiences
Rural areas
Medium towns
Small towns
Capital city
Geographical Focus
Type of investments
Large sewerage systems/ infrastructure
On-site sanitationSoftware
Blantyre(Malawi )
Kisumu (Kenya)
Batumi (Georgia)
Ghana
ONAS (Tunisia)
Bizerte (Tunisia)
Large towns
Maseru (Lesotho)Kampala
Morocco
Both
EU city/regionalisation projectse.g. Portugal/Italy
Ouagadougou
Rwanda (Kigali)
Albania
Lilongwe
National level
Bamako (Mali)
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Some practical challenges
How do you get municipal governments to focus on addressing sanitation issues? E.g. in most EECCA countries, responsibilities for sanitation have
been devolved to local governments, which are grossly underfunded and under-prioritising sanitation
How do you select what to invest in? e.g. Kigali (Rwanda) has no sewerage system but needs are
primarily in the dense urban center to support economic growth: do you invest in sewerage or on-site sanitation systems?
How do you convince users to invest in sewerage connections, particularly when they have recently made investments in on-site sanitation solutions?
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A step-by-step roadmap
Step 1 - Diagnostic: What sanitation challenges can the project address?
Output 1 - Assessment report
1.5 Identify critical issues and prioritize interventions
1.1 Assess the policy, institutional and regulatory frameworks
1.2 Understand the demand side of the sanitation market
1.4 Understand current sector financing and assess financing needs
1.3 Understand the supply side of the sanitation market
What is the current sanitation situation in the project area?
Step 0 – Rapid Assessment and definition of project concept
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A step-by-step roadmap (2)
Step 2 – Design: What will the sanitation project do?2.1 Identify the appropriate geographical scope for the intervention
2.2 Define the project's activities, including technological and service provision options
Output 2 - Project design document
2.6 Identify and design any associated sector reforms
2.4 Define a sustainable financing strategy for the project’s activities
2.5 Set up institutional arrangements to implement the project
2.3 Identify the appropriate service provider(s) and the support they need
3.1 Draw up a budget and an investment, operation and financing plan
Step 3 – Implementation: How will the sanitation project be carried out?
Output 3 – Project documentation
3.3 Carry out an environmental and social impact assessment of the proposed options
3.2 Conduct the financial and economic analysis of the proposed activities
3.4 Define institutional & contractual arrangements, including procurement plan
3.5 Define a Monitoring and Evaluation framework
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The “toolbox” Two types of tools
Diagnostic/ analysis tools Information fiches on key thematic subjects
A few examples Analysis of key drivers for sanitation sector reform Spreadsheet for capturing key sanitation sector
characteristics and estimating flows by types of waste streams
Analysis of sanitation market structure and possibilities for reform
Ways to involve NGOs: sample TORs? Methodological “fact sheet” to conduct the economic
evaluation of sanitation investments
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Some key messages – Diagnostic phase Base the design of the project / programme on a
Master plan At national level, as in Albania (KfW project ) At city-level (EIB in Kigali, AFD / KfW in Bamako) If such Master Plan does not already exist, identify sources of support for
its development
Where existing sewerage coverage is limited, combine network-based investments with investments in non-network systems In some cases network systems take precedence (Kigali) or
modest investments in on-site (Lesotho) Allocate funding for strengthening public development of on-site
sanitation systems (Bamako) Place exclusive focus on on-site sanitation (Ghana)
Understand current sector market structure and how reforms could be introduced: to reduce costs, improve efficiency or enable cross-subsidies
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Key messages – Design & implementation
Identify suitable partners based on a thorough institutional assessment To provide technical assistance and support: utilities can have a key role to
play in this area (Burundi) To support non-network interventions investments: EIB engaged NGOs in
Malawi (Water for People and WaterAid) to deliver services in urban slums To channel funding for microfinance: EIB and Gates Foundation to channel
funding to rural banks via ARB Apex Bank in Ghana
Involve multiple funding partners to blend financing Grant funds for capacity development or innovative aspects (Ghana) Loan funding from development banks (although repayment might be an issue
where there is no utility)
To build political will and support, provide performance-based financing and sequence investments once a number of milestones are reached Municipal service agreements (used by KfW in Serbia, Montenegro, Bosnia)
identify milestones to be met by municipalities to obtain further programmatic support
Performance-based financing for District Assemblies and stimuli for innovation (Ghana)
Do not neglect the “programme operational design phase” - this can be prove more complex in the context of an integrated sanitation project than a standard one
Using the tools: design of the SAWiSTRA programme in Ghana funded by EIB / AFD
C.
Ghana’s Sanitation Challenges
Sanitation coverage rate amongst the lowest in Sub-Saharan Africa
Prevalence of open defecation , shared toilets; no network solutions, no fecal sludge management
Decentralised sector with very limited capacities at local level
Evolving allocation of responsibilities with leading “facilitation institution” (CWSA) for small towns and rural areas
19
EIB’s support for WASH in Ghana
Contribute to achieve MDG target for sanitation
Support government strategy for scaling up sustainable services in small towns / rural areas
Align with evolving institutional setup (increased decentralisation)
Ensure efficient implementation and long-term sustainability (focus on outcomes)
Support ongoing sector coordination activities
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Programme Concept - Objectives
Objective 1: Develop a programmatic approach to
implement sustainable WASH schemes at scale in small towns and rural areas
Align with ongoing sector development and support sector coordination
Objective 2: Increase access to water supply in rural areas and small towns
Objective 3: Increase access to sanitation in rural areas and small towns and build WASH facilities in schools, health centres and community toilet blocks as appropriate
Objective 4: Implement appropriate systems and build capacity to ensure Programme sustainability
Applying the diagnostic tool to identifyChallenges for design & implementation
National Strategy focused on “CLTS+” tailor implementation to different towns / communities
Evolving institutional setup balance decentralised decision-making with coordinated implementation at national level
Scaling-up identify appropriate sources of finance and ways to channel large amounts of finance to the appropriate beneficiaries
Ensure sustainable outcomes result-based financing and monitoring mechanisms
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Applying the diagnostic tool in Ghana
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Step 1 - Diagnostic: What sanitation challenges can the project address?
Output 1 - Assessment report
1.5 Critical issues: create political will at various levels of government, adopt a package of interventions implemented by different actors at different levels, facilitate involvement of communities, capitalise on existing institutional arrangements (CWSA), blend funding appropriately, identify financing channels
1.1 Policy / institutional assessment: • Strategy: Tailor CLTS + for specific needs• Decentralisation capacity challenges
1.2 Demand assessment: • Variety of situations between small towns
and rural areas
Most financing still channelled through CWSA, despite decentralisation policy
1.3 Supply analysis: Limited supply response, needs strengthening, no faecal sludge management
What is the current sanitation situation in the project area?
Step 0 – Rapid Assessment and definition of project concept: intervene in small towns and rural areas and implement new sector strategy
1.4 Sector Financing:
Step 1: Understanding needs to tailor activities
24
Moving towards implementation 25
Step 2 – Design: What will the sanitation project do?
2.1 Decision to focus on small towns and rural areas
2.2 Support for on-site sanitation combined with (limited) facal sludge management
Output 2 - Project design document
2.6 No immediate sector reform needs were identified
2.4 Mix of financing sources, including support for household investment via microfinance
2.5 Rely on existing institutional arrangements
2.3 Mix of service providers: for planning, facilitation, design and implementation
3.1 Define budget, investment, operation and financing plan (appropriate fin. sources)
Step 3 – Implementation: How will the sanitation project be carried out?
Output 3 – Project documentation
3.3 Carry out an environmental and social impact assessment of the proposed options
3.2 Conduct the financial and economic analysis of the proposed activities
3.4 Define financial flows, institutional & contractual arrangements (procurement plan )
3.5 Define a Monitoring and Evaluation framework
Defining institutional setup -Balancing local vs. central actors’ roles26
Defining financial flows:Channeling financing to micro-actors27
Flexible enough to be applied across the value chain – applicability in rural areas / small towns
Can support phases of decision-making from project identification to design to implementation
Helped translate national strategy into practice and design tailored solutions
Helped identify interfaces to improve governance and implementation
Helped optimise funding, including result-based
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Lessons learned: How the Guidance document can help
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Next steps
Estimated publication date: early 2014 Ongoing learning process: much remains
to be learned in the optimal design of urban sanitation projects and programmes