WASH Coordination ProjectUpdated Profile of WASH Sector Activities in Bauchi and Kaduna States

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ACTIVITY INFORMATION Program Name: Water, Sanitation and Hygiene Coordination Project

(WCP)

Activity Start Date and End Date:

November 1, 2016 to October 31, 2018

Name of Prime Implementing Partner:

Development Innovations Group (DIG)

Contract/Agreement Number:

AID-620-TO-16-00003

Name of Subcontractors/ Subawardees:

DAI

Geographic Coverage(cities and or countries):

Kaduna and Bauchi States, Nigeria

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CONTENTS

Activity Information...............................................................2Contents................................................................................3Acronyms...............................................................................41. Overview..........................................................................62. Findings...........................................................................82.1 Urban Water Supply........................................................................82.2 Urban Sanitation.............................................................................92.3 WASH in Small Towns......................................................................9

3. Profile of Urban Water Supply Activities........................103.1 World Bank-funded Projects..........................................................103.2 Federal Ministry of Water Resources – NUWSRP Office.................113.3 UNICEF..........................................................................................113.4 African Development Bank-funded Projects..................................123.5 Case study of Bauchi and Kaduna Utilities....................................13

4. Profile of Urban Sanitation Activities..............................235. Profile of WASH Services in Small Towns.......................256. Annex 1: List of Interviews.............................................28

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ACRONYMSADS Automated Data SystemAfDB African Development BankBSWB Bauchi State Water BoardBSWSC Bauchi State Water and Sewerage Corporation CAF Country Assistance FrameworkCLTS Community-Led Total SanitationCOP Chief of PartyCoP Community of PracticeCSO Civil Society Organization DFID Department for International Development (UK)DIG Development Innovations Group EU European UnionFMWR Federal Ministry of Water ResourcesFSM Fecal Sludge ManagementIDA International Development AssociationIDB Islamic Development BankKAP Knowledge, Attitude and PracticeKSWB Kaduna State Water BoardKSWC Kaduna State Water Corporation LGAs Local Government AreasLOP Life of ProjectM&E Monitoring and EvaluationMOE Ministry of Environment MWR Ministry of Water ResourcesNDSP Niger Delta Support Program NEWSAN Network for Civil Societies on Water and SanitationNGO Non-Governmental Organization NUWSRP National Urban Water Supply Reform Program NWSA Nigeria Water Supply AssociationNWSS National Water Sector StrategyODF Open Defecation Free PEA Political Economy AnalysisPHWC Port Harcourt Water CorporationPIP Performance Improvement Plan PMIS Performance Monitoring and Information SystemPPP Public Private Partnerships RSSTOWA Rivers State Small Towns Water Supply and Sanitation AgencyRSWSRC Rivers State Water Services Regulatory CommissionRUWASSA Rivers State Rural Water Supply and Sanitation AgencySEPA State Environmental Protection AgencySHAWN Sanitation, Hygiene and Water in NigeriaSTTA Quantitative Data Analysis ConsultantSUWASA Sustainable Water and Sanitation in AfricaSWB State Water BoardTOR Term of ReferenceUNDP United Nations Development Program

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UNICEF United Nations Children’s Fund USAID United States Agency for International DevelopmentUSG United States GovernmentWASH Water, Sanitation and HygieneWB World BankWCP Water, Sanitation and Hygiene Coordination ProjectWSSCC Water Supply and Sanitation Collaborative Council WSSDCG Water Supply and Sanitation Donor Coordination GroupWSSSRP Water Supply and Sanitation Sector Reform Program

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1. OVERVIEWThe USAID-funded Water, Sanitation and Hygiene Coordination (WCP) Project in Nigeria focuses on sustaining the sector gains accomplished by USAID and its partners, while laying the foundation for the Mission’s future Urban WASH programs. As a part of this two-year Project, USAID’s implementing partner, the Development Innovations Group (DIG), conducted a rapid urban WASH sector stocktaking exercise from February to May 2017. This report1 presents our preliminary findings. DIG will hold three days workshops in Kaduna (September 12-14, 2017) and Bauchi (September 25-27, 2017) to share and validate key findings with stakeholders.

The report draws on a review of a sector donor funding matrix and on DIG consultations with development partners, including the World Bank, the African Development Bank (AfDB), the United Kingdom’s Department for International Development (DFID), the United Nations Children's Fund (UNICEF), WaterAid, and the European Union, as well as Federal government ministries, departments, and agencies. Importantly, the report helps to identify sector gaps for the USAID/WCP to inform and help prioritize targeted technical assistance and capacity building of the Bauchi and Kaduna State Governments. Specifically, this report provides: findings in urban water supply, in urban sanitation, and in WASH in small towns, followed by a description (or “profile”) of urban water supply activities, of urban sanitation activities; and of WASH services in small towns specifically.

The main purpose of the WCP is to achieve the dual benefits of improved health and well-being for Nigerians through increased and more financially sustainable access to WASH services and to build the confidence of the public in its government’s ability to deliver basic services. The Project aims to accomplish the following three key objectives: (1) improve WASH programming based on data and information gathered/provided; (2) sustain the momentum established under the USAID/Nigeria Sustainable Water and Sanitation in Africa (SUWASA) activity until a new comprehensive USAID program is in place; and (3) provide support to new reform-minded State Governments for the immediate term until full programs are in place.

To accomplish the stated Project objectives, the WCP Team is implementing five core technical tasks:

(1) Baseline data, analysis and recommendations toward the improved contributions of civil society organizations (CSOs) and non-governmental organizations (NGOs) in the urban WASH sector in Bauchi and Kaduna;

(2) Urban sanitation baseline survey and framework for improvement;(3) Targeted technical assistance and capacity building;(4) Development of criteria for inclusion in the USAID Urban WASH Program;

and(5) Creation of a Community of Practice for urban WASH.

1 Please note that this report is not a contractual deliverable. It is a workplan deliverable.

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The Updated Profile of WASH Sector Activities in Bauchi and Kaduna States is part of Task 3. The WASH Coordination Project now seeks to build on the approach of SUWASA against a changing sector context where the World Bank, AfDB, and others have launched new or deepened investment and technical assistance programs. The WCP is encouraging the implementation of on-going urban water and sanitation utility reforms in Bauchi and Kaduna by providing targeted technical assistance and capacity building support to the States. The updated profile of urban WASH sector activities has helped to identify gaps and will inform possible areas of collaboration that will contribute to USAID’s goal of prioritizing governance and capacity support interventions in Bauchi and Kaduna States. These interventions complement other development partners’ investments, and will be presented for consideration and concurrence by USAID.

To identify and harness the strategic entry points for USAID/Nigeria within the landscape of current donor activity, the WCP Team began consulting WASH sector stakeholders soon after the Project launch. These consultations provided insight into the donor terrain in Nigeria, including activities across the Federal, State, and utility levels, that are relevant to USAID’s planned work in Bauchi and Kaduna. Consultation also helped to quickly identify immediate areas of potential collaboration in Bauchi and Kaduna States.

As mentioned previously, to develop an updated profile of the urban WASH sector, the WCP Team: (1) led consultations with development partners and Federal government ministries, departments, and agencies; and (2) carried out a stocktaking exercise. These two steps are described below:

First, from February to May 2017, the WCP Team met with team leaders and fund managers working for development partners supporting the WASH sector, notably the World Bank, AfDB, DFID, EU and UNICEF (please see the list of individuals the team met with in Annex 1). The WCP Team also met with representatives from the Federal Ministry of Water Resources, including the National Urban Water Sector Reform Project (NUWSRP) Office; Small Towns Water Supply and Sanitation Program Office; the Water Supply Department; and the Water Quality and Sanitation Department. This report also draws from information WCP local staff, consultants, and members of short-term technical assistance missions collected during interviews with representatives from donor agencies and senior government to advance Task 2 (Urban Sanitation Baseline Study) and Task 4 (Criteria for State Selection).

Second, the WCP Team carried out a stocktaking exercise that included, among other tasks:

A review of progress made under the World Bank-funded Third National Urban Water Supply Reform Project (NUWSRP-3), particularly in Bauchi;

An examination of progress made by AfDB-funded WASH sector activities, particularly in Kaduna State and other locations, such as the Port Harcourt (the capital of Rivers State);

A review of donor initiatives aimed at better targeting WASH interventions in low-income communities, including UNICEF’s WASH Bottleneck Analysis Tool, and the World Bank’s Poverty Diagnostic Analysis; and

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A review of on-going urban sanitation interventions, and WASH services provided in small towns.

Governance and accountability are critical to improving WASH access and services. WASH reforms at the Federal, State, and State Water Agency levels must focus on: establishing rule of law and transparent sector expectations and results; developing participatory and inclusive channels of engagement; creating mechanisms to facilitate responsiveness to citizen voices and accountability for results; and building efficient and effective WASH services to meet citizen demand.

The WCP Task 3 is consistent with the goal of promoting governance improvements by focusing on institutional arrangements and mechanisms to underpin sector transparency and accountability. This work is particularly relevant in Bauchi and Kaduna States. In these two States, the World Bank and the AfDB are promoting governance reforms, as well as the development and rehabilitation of WASH infrastructure. In Bauchi, the World Bank, in collaboration with the Bauchi State Government, is rolling out a USD 65 million investment under NUWSRP-3. In Kaduna, the AfDB, in collaboration with the Kaduna State Government and other funding partners, is investing USD 100 million in the Zaria Water Supply Expansion and Sanitation Project in Kaduna State with a component focused on reform of the Kaduna State Water Corporation. WASH development partners in Nigeria have been working to improve WASH sector accountability, but progress has been limited. Sector reform efforts are hindered by the magnitude of the challenge, unsteady political will, and a lack of incentive for change, among other issues. In response, development partners and donors, including USAID, are coordinating approaches through the WASH Working Group of the Country Assistance Framework Partners and the Water Supply and Sanitation Donor Coordination Group (WSSDCG) to reinforce messages, achieve scale, and increase the adoption of performance expectations, performance incentives, and performance-based financing.

USAID/Nigeria is a key member of the WASH community and provides critical input, notably through its past SUWASA activities. Since 2012, USAID has been coordinating closely with the World Bank to maximize the impact on WASH interventions.

2. FINDINGSThe report presents key findings from the rapid urban water and sanitation sector stocktaking and consultation conducted by the WCP, and provides an updated profile of sector activity in urban WASH. It identifies gaps and possible areas of collaboration that would help the WCP to elaborate a package of prioritized governance and capacity support interventions in Bauchi and Kaduna States. It presents its findings under three critical sector activity areas, namely urban water supply, urban sanitation and hygiene, and small towns.

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2.1 Urban Water SupplyA review of the funding provided by the World Bank and the AFDB to Bauchi and Kaduna States, respectively, led the WCP Team to the following conclusions:

The leadership in Bauchi State remains committed to reforms in the WASH sector. In Bauchi, the World Bank-funded Third Urban Water Sector Reform Project has had a promising start. Furthermore, with support from the WCP, the State Governor demonstrated a commitment to continue the reform process, initiated by the previous administration, by putting in place a six-month program to transition the water utility into a commercial entity. Stakeholder interviews revealed that this step is rebuilding confidence in the development community.

The project investment plan for the Third Urban Water Sector Reform Project has identified clear water production, transmission, distribution, and extension works. The plan also addresses reform targets and institutional strengthening and management issues. There are concerns, however, that some of the World-Bank funded activities in the plan may replicate activities already implemented by the USAID-funded SUWASA initiative.

States presently struggle with defining and establishing a WASH regulatory system. The Performance Monitoring and Information System (PMIS), proposed under the NUWSRP-3, provides an opportunity for the Government to monitor the performance of water boards and test a framework for a National Water Sector Regulatory System.

The expected report of the WASH Poverty Diagnostic Analysis and the UNICEF WASH Bottleneck Analysis will provide tools for better understanding poverty and improving low-income services in the WASH sector. These documents will be particularly helpful to the Port Harcourt Water Supply and Sanitation Project plan to operationalize a low-income house service strategy.

The State Governor in Kaduna is also committed to reforms in the WASH sector. This commitment is exemplified in the continued participation and support to the Zaria Water Supply Expansion and Sanitation Project in Kaduna State, which among other issues, is focused on reforming the Kaduna State Water Corporation.

The Zaria Water Supply Expansion and Sanitation Project provides a model for the complex issue of counterpart funding, and the need to build a funding structure based on different institutions’ interests and development objectives. It demonstrates continuity of governance as it is designed around ensuring the completion of a project initiated almost ten years ago.

The role of civil society organizations and community groups has been minimal during the design and implementation of WASH sector reforms. 

A key gap in the progress of the Third National Urban Water Sector Reform Project (NUWSRP-3) in Bauchi has been the near absence of clear actions on sanitation and hygiene.

2.2 Urban SanitationConsultations with sector stakeholders and key informants suggest that:

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Ownership of sanitation is a challenge, as there is no commonly agreed institutional home for the sanitation sector – it falls into a space between the Water Corporation, State Environmental Protection Agency, and individuals. Just as pressing is the absence of a National Water and Sanitation Policy.

A key gap in the progress of the NUWSRP-3 in Bauchi has been the near absence of clear actions on sanitation and hygiene while, in Kaduna, the sanitation component of the Zaria Water Supply Expansion and Sanitation Project focuses on solid waste management.

The agreed strategy for achieving universal sanitation coverage in rural areas in Nigeria is the Community-led Total Sanitation (CLTS) approach. Some stakeholders consulted recommended a CLTS approach, coupled with sanitation marketing, be adopted in urban areas as well to improve the demand for sanitation services. As the demand for latrines increases, however, the lack of systems for the evacuation, transportation, treatment and disposal or reuse of fecal matter is all the more problematic.

DFID representatives consulted during this stocktaking exercise expressed an interest in exploring opportunities to collaborate with the WCP on sanitation delivery.

2.3 WASH in Small TownsConsultations with sector stakeholders and key informants suggest that:

There is a growing concern that small towns are not receiving the attention they should get in the midst of several sector challenges.

Under the Smalls Town Water Supply and Sanitation Program Pilot, pilot projects helped to refine the concepts of community participation, ownership, and management in the financing of sustainable water supply and sanitation services. The pilot projects also provided learning tools and practical demonstrations that small-town water projects can be viable and sustainable.

CLTS has benefited a number of small towns in Nigeria. An important challenge that remains unresolved, however, is that of fecal sludge management as the demand for sanitation services has increased in areas where CLTS has been successfully implemented.

Some of the development partners consulted recommended USAID support the establishment of small-town agencies at the State level to promote better management and coordination of sanitation investments in small towns and growing urban centers.

DFID representatives consulted during this stocktaking exercise expressed an interest in exploring opportunities to collaborate with the WCP on sanitation delivery, including in small towns.

3. PROFILE OF URBAN WATER SUPPLY ACTIVITIES

This section of the report provides an overview of urban water supply activities funded by various donors and the government in Nigeria, with a focus on Bauchi and Kaduna States. Relevant projects aimed at improving water supply in other parts of Nigeria are also highlighted.

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3.1 World Bank-funded ProjectsBauchiThe World Bank-funded, USD 230 million Third National Urban Water Sector Reform Project (NUWSRP-3), is currently being implemented in three States: Bauchi, Ekiti, and Rivers. In Bauchi, the World Bank is providing a USD 65 million concessional loan to help the Bauchi State Water Board to undertake investments in rehabilitation and expansion of water production and distribution, and institutional reform. This will be done through emergency rehabilitation, medium term investments, and support and technical assistance to provided sustainable, reliable, and safe water for all residents of Bauchi. The Bauchi State Water Board will continue its transition into the Bauchi State Water and Sewerage Corporation (BSWSC), initiated with the support of USAID/Nigeria’s SUWASA Program.

Ekiti StateUnder the NUWSRP-3, the World Bank is providing USD 50 million of investment support to the Ekiti State government to strengthen its ongoing commitment to improve the management and delivery of water supply services to the State. The State has demonstrated its commitment to reforms with the development and approval of a Water Supply and sanitation Policy in June 2012 and a Water Law enacted by the State’s House of Assembly in August 2013. The primary aim of the project activities in Ekiti State is to make water available to selected areas of the State capital city, Ado-Ekiti and the nearby university town of Iworoko. The activities in Ekiti are grouped into two clusters:

(i) Cluster 1: comprising key reform activities and improvements of the distribution network in selected parts of Ado-Ekiti; and

(ii) Cluster 2: comprising investments to improve water production, transmission, and distribution systems linked to the Ero Dam supply.

The Ekiti investment includes the construction of a new office building for the Ekiti Water Corporation

Rivers State The Rivers State Government formulated and approved a State Water Policy in 2012 and enacted a State Water Sector Development Law in 2012 to demonstrate its commitment to reforms. These efforts began in 2009 with the change in Government. In one of the most ambitious sector reforms in Nigeria, the River State Government defined the roles and responsibilities of all sector players and further separated the functions of governance, services delivery, and regulation in the water sector cutting across rural, small towns, and urban areas. New institutions were established to drive the overall performance reforms, which include:

The Rivers State Rural Water Supply and Sanitation Agency (RUWASSA); Rivers State Small Towns Water Supply and Sanitation agency (RSSTOWA); Port Harcourt Water Corporation (PHWC); and Rivers State Water Service Regulatory Commission (RSWSRC).

The Rivers State Water Sector Coordination Committee was inaugurated in March 2014 to ensure the roles and responsibilities of the newly formed institutions remain distinct. The Rivers State Government secured USD 80 million of investment

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support from the World Bank in addition to USD 200 million from the African Development Bank.

3.2 Federal Ministry of Water Resources – NUWSRP OfficeThe NUWSRP-3 allocated a USD 35 million investment component to the Federal Ministry of Water Resources, to enable the FMWR to:

identify a sector financing model, including (a) a study to identify a suitable instrument for financing the water supply and sanitation sector that allows for more transparent and efficient support from the Federal level, such as a water fund; (b) financing of a Public Expenditure review for water; (c) establishment of common accounting standards and methodology for water boards; and (d) a study and analysis for potentially unbundling water services (production and distribution);

strengthen their capacity to promote and advocate for the use of monitoring tools to track the impact of sector interventions on the poor and vulnerable populations and the impacts on gender, including strengthening the FMWR and State Level Sector M&E and Gender Units; and

finance an M&E Framework for the project with the objective of implementing a performance assessment of Nigeria’s State Water Boards.

The implementation of a Performance Monitoring and Information System (PMIS) is being proposed to provide State Water Boards with a performance assessment mechanism. The PMIS database is a similar tool to the World Bank’s International Benchmarking Network (IBNET), and it is expected that it will enable the Government to monitor the water boards’ performance. The PMIS could provide a framework for a National Water Sector Regulatory System by State subscription.

In addition to activities under the NUWSRP-3 the World Bank has a few ongoing sector activities to improve governance, accountability, and transparency in the water sector. These include the ongoing WASH Poverty Diagnostic analysis, which is identifying the location and key characteristics of the bottom 40% of the population in terms of income distribution. A report of the WASH poverty diagnostic analysis is expected later in the year, which will enable more efficient targeting of WASH interventions.

3.3 UNICEFThe recent launch of UNICEF’s WASH Bottleneck Analysis Tool (WASHBat) in Nigeria has allowed organizations to better understand which WASH challenges need to be addressed in communities and at the Federal level. UNICEF has completed a WASHBat for both Rivers and Bauchi States – covering urban, rural, sanitation, and water supply. The results of the

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CSO Participation in WASH – NEWSAN

The umbrella body of WASH CSOs in Nigeria, NEWSAN, elected a new set of leaders during its annual general meeting in February 2017. The group is being supported by the Water Supply and Sanitation Collaborative Council (WSSCC) to prepare a development strategy to increase participation and ownership. NEWSAN is also reviewing its governance structures with the support of WaterAid. In addition, the World Bank has appointed a civil society lead while the EU is supporting a project to develop CSO networks.

exercise are to be posted online. From the WASHBat results, partners could identify bottlenecks and build indicators around the need to alleviate these issues. For instance, WaterAid informed the WCP Team that before entering a State, they perform a political economy analysis and made use of the WASHBat to understand what is being done and what needs to be done, to ensure synergy and add value.

UNICEF actively supports the WASH sector in Nigeria, although the organization is largely focused on rural areas. Working in 21 States, including Bauchi and Kaduna, UNICEF seeks to complement its work with that other donor projects, including in sectors outside of WASH. In some cases, UNICEF even provides counterpart funding to those projects.

UNICEF recently conducted a Capacity Assessment of WASH Departments in nine States based on the United Nations Development Program (UNDP) (diamond) model and is developing this into a model for similar assessments in the sector. Regarding monitoring, UNICEF created and currently uses a platform called WASHPMP.com, in collaboration with the FMWR. The platform is housed by UNICEF but other donors feed data into the platform to help support it (through SMS information feeds). They are particularly interested in adding water quality data.2

3.4 African Development Bank-funded ProjectsKaduna StateThe Zaria Water Supply Expansion and Sanitation Project is designed to improve water supply infrastructure through the collaboration of four key stakeholders. Under an ambitious, integrated project plan and collaboration, the project is benefiting from the following partner contributions: the Federal Government constructed the 186.1 million cubic meter multipurpose

Galma Dam at Kuzuntu through the Upper Niger Basin Development Authority. This dam provides water for the old and new treatment plants and for irrigation activities;

the Kaduna State Government has built a 150 million litre per day water treatment plant, a project initiated in 2008;

the Islamic Development Bank (IDB) is providing a concessional credit facility for the construction of 10 reservoirs, two boaster stations, and 73 kms of transmission mains; while

the African Development Bank (AfDB) is providing a $83.9 million concessional credit facility for the rehabilitation of 62 kms of transmission expansion, for 408 kms of distribution pipelines, and for the provision of sanitation facilities.

The Zaria project provides a model for the complex issue of counterpart funding. Built around the development objectives of both Federal and State Governments, with relevant institutions like the Niger Basin Development Authority’s interests in irrigation infrastructure, the project pooled resources from multiple development partners to ensure funding is available for water treatment plants, transmission mains, and distribution networks. It demonstrates continuity of governance as it is designed around ensuring the completion of a project initiated almost ten years ago. 2 Please note that the site is only accessible to the Government of Nigeria, UNICEF, and authorized guests.

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Rivers StateThe AfDB supports the Rivers State Water Reform and Port-Harcourt Water Supply and Sanitation Project with a USD 200 million investments facility. This includes the creation of a transparent framework for Federal level support to States, innovative mechanisms for co-financing between government levels, and facilitation of private sector participation in urban water supply. The project is promoting the use of monitoring tools to track the impact of sector interventions on the poor (disaggregated by sex) and will operationalize the national Low-Income Household Service Strategy. As of February 2017, Rivers State had not made its USD 40 million contribution to the AfDB.

3.5 Case study of Bauchi and Kaduna UtilitiesThe above narrative provides an overview of the national profile of urban WASH. This section provides utility-focused findings with the BSWSC and KSWC as case studies.

3.5.1 Focus on Bauchi State Water and Sewerage Corporation:

Background:

With the support of USAID funded SUWASA, the BSWSC set out in May 2011, to create an enabling environment for service delivery and the establishment of full operational and financial autonomy, accountability and efficiency. Key bottlenecks identified as inhibiting the utility’s operations included the absence of a clear policy and legislative frameworks, institutional arrangements, autonomy of operation, governance practices and accountability frameworks3. BSWSC was also found to be weak in its cost recovery due to low tariffs, poor billing, no metering and high non-revenue water ratio. Billing was done manually. With the support of SUWASA several improvements were recorded through the development of relevant policy instruments, institutional frameworks, and the provision of technical and institutional support. The improvements catalyzed the $65 million World Bank investment in BSWSC. It also helped to establish some operational parameters / baselines4, as indicated in table 1 below, and the policy and the organization development parameters (see table on next page).

Table 1: SUWASA key performance indicators for BSWCIndicator 2011 2012 2013

Number of staff per 1000 connections

63 per 1000 71 per 1000 76 per 1000

Non-revenue water 63% 49% 43% 3 SUWASA (October 2014) Water Sector Reforms in Bauchi State, End of Project Report, 4 According to the end of project report, absence of accurate baseline data on the utility performance as well as access to water services in Bauchi presented a challenge in attributing key milestones attained to SUWASA

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Water quality by No testing 83% of all the parameters tested

Customer base 17,000 40,000Increase in revenue collection

6.4% 34%

Revenue collected 2 Million Naira per month

4.5 Million Naira per month

Operating cost coverage5 ratio with a slight.

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Table 2: Policy and Organization Development Parameters Reform Enabling Areas

Indicators Implementation Status

1. Policy environment

Water law Water Law was passed as in in gazette. The Law seeks to facilitate the transition of Bauchi State Water Board (BSWB) currently operating under the civil service arrangement to an autonomous and corporatized Bauchi State Water and Sewerage Corporation (BSWSC). *Refer below to the tripartite meeting which discussed the implementation of this law

MOU on WOP Was signed, executed and closed out with Swazi water and Sewerage Corporation to provide peer learning and improve the performance of the utility. WB is in the process of developing another WOP, 2ML are working on this.

Tariff policy document with a financial model andCommunication and awareness creation strategy

These documents are in place but not implemented.

Sector investment The document clearly articulates

5 Operating Cost Coverage, the indicator is defined by the International Benchmarking Network for Water and Sanitation Utilities as total annual operational revenues/total annual operating costs

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plan (including strategic and business plans

short, medium and long requirements for infrastructure investment that reflects the utility’s strategic objectives, funding availability, gaps and additional requirements for current and projected demands for water and sanitation services in urban areas of Bauchi State. The investment plan was used by the World Bank to determine resources that would be required for investment in the water infrastructure in Bauchi. The Strategic and business plan expires end of 2017.

Organizational Development plan (with new structure for BSWC, performance contract, human resource management, and transition plan)

This document was developed but not implemented

Institutional and regulatory framework

Not implemented. To be considered in the transitioning program implementation

Sanitation framework

Not developed

2. Key components of the OD activities

Change management training for top management of BSWB

Workshops were held targeting top management

HR strategy for the new corporation highlighting major issues such as skill-set for technical staff, career progression, head count plan and strategy for re-alignment of staffing

Not implemented

Development of a personnel policy for proposed staff

Not done

Job description Not implemented

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Training and development plan targeting all categories of staff

Not implemented

Organizational structure/ organogram

Done but not institutionalized

Performance contract for staff

Not in place

Current Intervention Program: The Bauchi State 3rd National Urban Water Sector Reform Project

In Bauchi, the World Bank is providing a USD 65 million concessional loan to help the Bauchi State Water Board to undertake investments in rehabilitation and expansion of water production and distribution, and institutional reform, under the Third National Urban Water Sector Reform Project (NUWSRP-3). The project is supporting the emergency rehabilitation, medium term investments, and support and technical assistance to provided sustainable, reliable, and safe water for all residents of Bauchi. The Bauchi State Water Board will continue its transition into the Bauchi State Water and Sewerage Corporation (BSWSC), initiated with the support of USAID/Nigeria’s SUWASA Program.

The World Bank is funding several governance and system strengthening initiatives in Bauchi State, including plans to provide consultants for governance reforms, institutional strengthening, monitoring and evaluation, and customer enumeration. It is envisioned that the findings from these activities will provide critical information for developing key action plans including the development and management of the performance-based grant component and aspects of the ongoing restructuring process. There is some concern, however, that some of these activities are a duplication of efforts performed under the SUWASA program. Ongoing activities under the World Bank support include the following:

Corporate governance reform:The progress of the Reform Implementation Roadmap, developed under USAID/Nigeria’s SUWASA program in Bauchi, was hindered in 2015 after the change of the political leadership in the State. In 2017, the USAID supported WASH Coordination Project sought to resolve this bottleneck by gaining the support of His Excellency Governor Mohammed Abubakar. This ultimately resulted in the issuance of an Executive Memo by the Governor on February 27, 2017 to facilitate the BSWSC’s corporatization process.

The executive memo mandates the State Commissioner for Water Resources to implement a six-month transition plan for the BSWSC. Key aspects of the transition plan, developed by the World Bank, the WCP, and the Bauchi State Government include: (i) constitution and appointment of the Governing Board of the BSWSC to

establish the utility as a commercial service focused entity;

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(ii) training of Board Members and the development of a Board Charter and necessary bylaws governing the activities of the Board to ensure operational sustainability and efficiency;

(iii) setting up a Regulatory / Performance Contract Review Committee unit within the Ministry of Water Resources which will regulate the water and sanitation services providers including BSWSC, develop and manage performance contracts between the State and the BSWSC Board of Directors as well as other key staff members;

(iv) institutional systems strengthening to inform the design of a structure for BSWSC capable of improving the operational efficiency and internal systems including a performance improvement and management system; and

(v) development of a plan to provide the BSWSC with technical, operational, and financial support needed to implement the prioritized activities.

A tripartite meeting of the World Bank, the WCP and the State Government has agreed and action plan for the implementation of the executive memo.

Customer Billing: The SUWASA program introduced a computerized billing system for BSWB. Billing software, computers and internet servers were procured and installed. A billing unit was also established and staff designated and trained to effectively use the new billing system. As a result, BSWB started printing bills for the first time. This billing system helped to improve BSWSC billing efficiency and is still in use, but requires upgrade. The needed upgrade is to improve the systems efficiency and ability to integrate with the customer database and GiS. BSWSC is discussing a review of the billing system under the ongoing World Bank support project, with goal of installing a new billing solution that will reduce human interface. Customer Enumeration:BSWSC has commissioned a new customer enumeration study, financed by World Bank support NUWSRP-3, to address some gaps identified with the previous customer enumeration study conducted under the SUWASA program. This include several data quality issues, as paper forms were used for the exercise and it has been difficult to locate several customers based on the DPC developed. Under the current customer survey, a total of 62,000 properties have been counted, as at August 2017, and with about 3 zones out of 11 remaining to be counted. An updated data set is expected at the end of the exercise to enable BSWSC to determine the exact number of the properties enumerated are active customers.

Performance Improvement Plan:The design and implementation of a performance improvement plan is one of the key activities implemented by SUWASA to improve water service delivery to all the residents of Bauchi State. Under this result area, SUWASA proposed to improve operational efficiency of BSWB in partnership with WOP Africa through which a utility that has gone through transformation to undertake situation analysis as well as design and implement activities aimed at improving operational efficiency of BSWB. To achieve this, a partnership agreement with Swazi Water was developed using the Water Operators Partnership (WOP) approach. Under this approach, Swazi Water provided capacity development support to Bauchi water through practical mentoring and twinning arrangements that facilitated exchange of knowledge,

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ideas, and experience for improved operational performance. Prior to commencement of the WOP partnership arrangement, a scoping exercise was carried out by Swazi Water to identify capacity gaps of BSWB through which the training needs of staff of BSWB were established and formed basis for developing a training program tailored to help achieve the water-sector reforms.

Another partnership was designed with IP3 to provide capacity-building support to BSWB. SUWASA sponsored two study tours for key government functionaries and legislators to Zambia and South Africa and the second one which was co-financed by the World Bank was to Swaziland in the effort to get the water law passed. The gains of these interventions include improved capacity of the staff and management, changes in the mindset of the WASH sector players to embrace the reform agenda, and increased in the numbers of enlightened members of the State House of Assembly on the benefits of the reforms which ultimately broke the cycle of resistance to reform, leading to the passage of the State Water Law. Dam Development: In Bauchi city, investment plans to improve the transmission capacity of the Gubi Dam Treatment Facilities have been implemented to resolve the city’s current water shortages. The investment plans guarantee a constant water supply from the clear water reservoir, and promises to rehabilitate and extend by over 150 km the water distribution network in high density population areas, serving among others the low-income residents. It will also improve water quality and laboratory facilities. A World Bank Mission in May 2017 to Bauchi visited the Gubi Dam to see the progress on the improvements to the transmission capacity of Gubi Dam Treatment Facilities. This is to guarantee uninterrupted water supply from the treatment plant to the 22,000m3 clear water reservoirs, from where water is distributed to the city. To develop additional treatment capacity in Gubi Dam, a second stage activity at Gubi Dam will expand the services to guarantee 24/7 water services to the potential new residents in Bauchi city by increasing the treatment capacity at the water treatment plant. A feasibility report has been received from the project consultants.

3.5.2 Focus on Kaduna State Water Corporation:

Background

The Federal Government of Nigeria (FGN) received a loan from the African Development Bank (AfDB) for the implementation of the Zaria Water Supply Expansion and Sanitation Project (ZWSESP) in Zaria and environs, as part of a wider ongoing reform in Kaduna State Water Sector. Further financial support is provided by the Islamic Development Bank and the Kaduna State Government, under the Federal Government Third Urban Water Sector Reform Program.

The Zaria Project comes on the heels of the almost ten-year run (2004 to 2013) of the First National Urban Water Sector Reform Project (NUWSRP-1) under which the Kaduna State Water Board (KSWB) was supported by the World Bank to improve the infrastructure and operation efficiency of the utility to enable it to provide reliable and affordable water services to the population of Kaduna State. The water utility, at that time, was experiencing a vicious spiral of weak performance, insufficient

19

funding for operation and maintenance, institutional deficiencies, and high incidences of political interference.

The objectives of the NUWSRP-1 were to increase access to piped water networks; improve reliability and financial viability of the KSWB; and create enabling environment for sustainable water supply. Modest gains were reported with the NUWSRP-1. These include:

The rehabilitation of eight Water Works – Kaduna - North Old and Kaduna- New Water Works, Kaduna South Water Works, Zaria Water Scheme, Saminaka Water Scheme, Kafanchan/Kagoro scheme, and Zonkwa scheme;

The pilot of a Public Private Partnership contractor - Oretch Nig Ltd, in July 2008, and their engagement under NUWSRP-1 between July 2009 to July 2011, to operate and manage the Kaduna and Zaria Water Treatment Plants and Booster Stations which led to improved capacities, for both systems and staff;

The roll-out of an internal Delegated Management Program (DelMAP) based on the lessons from the PPP experience, targeted at improved performance in revenue collection. The intention is to escalate this informal arrangement to a performance contract;

Technical assistance and capacity development opportunities which enhanced KSWB staff, especially in the Project Implementation Unit (PIU), and the strengthening of systems and processes in the preparation of a utility financial model, M&E, customer enumeration (Kaduna and parts of Zaria) and the development of a new robust electronic billing system; and

Policy reform and institutional development leading to the development of the State Water and Sanitation Policy 2013, the Kaduna State Water Law, the establishment of the Kaduna State Water Corporation, to take over from the KSWB as a commercial entity, as well as the Kaduna State Water Regulatory Commission to regulate both public and private service providers in November 2016.

Current Interventions: The Zaria Water Supply Expansion and Sanitation Project (ZWSESP)

The Zaria Project was therefore designed to focus on extending the successes of the NUWSRP-1 to Zaria, and further embedding and strengthening the KSWC. To this end, the project has four components with the following key of objectives:

Component 1 –Water Supply and Sanitation Infrastructure: To improve access to safe water supply by residents (51% female) in the city of Zaria and its environs, from current levels of about 30% to 80% by 2016, and improve sanitation in schools, health centres and other public places like markets and motor parks to 100% by 2016;

Component 2 – Institutional Reforms and Capacity Building: To improve service provision and commercial viability of Kaduna State Board;

Component 3 – Hygiene Education and Sanitation: To improve personal hygienic practices among school pupils and residents; and

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Component 4 – Project Management: To improvement the effectiveness of KSWC management.

Component 2 and 4 of the Zaria Project provide the strategic bedrock needed to embed and sustain the reform and the infrastructural investments in the water utility. To develop this platform for effective management, commercial orientation and institutional and staff capacity, KSWC has engaged 2ML Consulting Limited to provide consultancy services for the commercialization the new KSWC and to provide technical assistance for institutional strengthening. The consultancy contract is expected to work with and strengthen existing management and institutional arrangements and draw lessons and experiences from NUWSRP-1.

2ML Consulting Ltd was informed of existing gaps and challenges of KSWC, including:

Staff attitude and resistance to organizational changes with internal delegate management program held back by this issue;

Low cost recovery, with the KSWC largely rely on Government subsidy from Government and the Development Partner Support, as collected revenue covers only about 73% of operating costs;

Absence of a well-defined strategy to address the challenge of NRW and maintain corporate asset;

The need for an up-to-date customer enumeration data base for some of the strategic business units of the utility such as parts of Zaria, Kafanchan, Kwoi, Zonkwa, Ikara and Birnin Gwari;

Absence of an integrated management information systems resulting in duplication and inconsistencies of operational and financial information;

Poor corporate governance and management systems such as a robust performance improvement plan, business plans, customer, service charters and annual performance plans; and

The absence of a strategy for serving low income settlements, despite the existence of a National Low-Income Household Strategy (LIHSS).

To address these issues, the KSWC management and 2ML Consulting Ltd has implemented the following programs: Component 2: Management Improvement:

Management Staff: Part of efforts to improvement effectiveness of KSWC management, is to internally recruit district managers through a transparent and performance based process. 2ML Consulting through the AfDB soft loan, facilitated the process by placing advertisement, screening of applications and conducted interviews for interested staff who aspire to be district managers. Now, the corporation has sixteen (16) district managers (15 male and 1 female) and nine plant managers of which all are male. They are all placed under performance contract signed with the Ag. MD of the corporation. They also have their PIPs with clearly spelt out targets and indicators of success.

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A transparent process to appoint a new Managing Director for the KSWC is ongoing to strengthen corporate management. Under the process an external recruitment was lunched to identify and appoint the managing director. The selection panel was made up of an independent team of 2ML Consulting and the WASH Coordination Project. The panel has recommended three names to the Honorable Commissioner for submission to the State Governor for appointment. A Performance Improvement Program (PIP) has also been introduced, under a recently appointed Board of Directors. Area managers have noted that the PIP scheme has already produced improvements with respect to revenue mobilization and water production indicators.

Organizational Restructuring: 2ML Consulting facilitated the development of proposal for the organizational restructuring of the Corporation in line with the approved State Water Law. The proposal is planned to be implemented in phases with direction to be provided by the Managing Director.

Component 4: Institutional Reforms and Capacity Building

In March 2017, KSWC management and staff, in collaboration with 2ML Consulting Ltd, introduced a 100-Day Performance Improvement Plan6 (PIP). The KSWC PIP commenced with the theme: Doing what we can do now, with what we have now, to generate quick-wins for the achievement of KSWC’s Vision of becoming the best utility in Africa. Under the plan, 2ML Consulting Ltd is to facilitate the change management process. Over the first quarter of 2017, his firm conducted a diagnostic study, with the following components and results:

Review of KSWC core operations, leading to the identification of quick-win solutions;

Review of Business Strategy, informing the establishment of Baseline Performance on key focus areas and facilitating the setting up of smart and stretch target;

Facilitation of strategies and operational planning sessions, leading to the development of business plans by strategic business units (SBUs), setting up task team leaders and designing improvement strategies;

Development of implementation plan – March 2017 – December 2017; and

Facilitation of monitoring and evaluation discussions for the development of an M&E framework, including reporting templates, incentive framework

6 The PIP is a tool intended to accelerate the transformation of an organization to meet its aspirations, goals and objectives.

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Key activities under the 100-Day PIP in the State Water Corporation to address these and other identified bottlenecks include:

Improved Ambiance:The ambiance within office premises and treatment plants has improved significantly since the take-off of the reform program in the State. There is a planned program for routine maintenance of offices, treatment plant, laboratories and all other capital investment belonging to the Corporation. Staff now have dressing code, make them look smart for the work they are doing.

Commercial orientation: Staff capacities are built in the areas of:

Strategic and business planning processes Billing and revenue collection procedures Customer response time to pipe leakages and complains

Institutionalization and Strengthening of Monitoring and Evaluation:A robust Monitoring and Evaluation Unit now exist in the Corporation with staff strength of five (3 female and 2 male). There are three officers located at the headquarters, but lacks official computers and other relevant electronic devices. Staff of the unit currently use their personal laptops for the day-to-day implementation of activities. Although existing staff had undergone orientation on the reform process, they would require targeted training on benchmarking and M&E processes and procedures.

Targeted interventions to improve key service delivery performance: The delivery of capacity building interventions to improve ambiance, commercial orientation, institutional strengthening and monitoring and evaluation has led to changes in staff attitudes and approach to work creating quick wins and early successes in service quality. Data from key performance indicators collected during the 100-Day program has shown remarkable improvement. Starting from the first monthly evaluation in March 2017, monthly performance reviews have been conducted with a climax in July 2017 at the end of the 100-Day Event. Table 3 on the following page summarizes the performance of the SBUs as against the baseline.

Low-Income area interventions:In addition, the AfDB-funded Zaria Project is providing institutional support to the KSWC commercialize services in low-income areas, introduce public private partnership (PPP) models, improve the management of public water points, and implement a social connection revolving fund. The Kaduna State Water Corporation (KSWC) has started a process to install 50,000 meters of water pipes. The utility is planning to set aside 10,000 meters for low-income areas. Low-income consumers will receive the meters through a social connection fund, either as a revolving fund or subsidized by other users, possibly through cross subsidy. KSWC has started to look at private sector participation (PPP) models for kiosk management.

Sanitation:

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An Expression of Interest was issued to conduct a Knowledge, Attitude, and Practice (KAP) Study around sanitation (solid waste) and hygiene under the Zaria Water Supply and Sanitation Expansion project, but responses to the Expression of Interest were very weak, a reminder of the limited capacity for sanitation and hygiene in Nigeria. Nonetheless, a direct contract with UNICEF was signed. The project will promote better hygiene in households, communities, and schools.

With the sector reform to corporatize the utility, the establishment of a Rural Water Supply and Sanitation Authority (RWSSA), and the creation of the regulator, the need to involve the CSOs and citizens in the design and implementation of sector reforms in order to build ownership has emerged as a key lesson learned.

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Table 3: Global Performance on KPIs for KSWC 100-Day PIPParameters / KPIs

Baseline Data

March 2017 Performance

April 2017 Performance

May 2017 Performance

PIP Average Performance

Performance on Baseline (%)

Smart Target Achieved (%)

Stretch Target Achieved (%)

% improvement

Water produced

m3 4,876,674

5,843,233 5,367,182 4,395,581 5,201,999 107 65 59 7

Water sales m3 2,047,785

1,439,282 1,449,121 1,253,234 1,380,545 65 40 31 -33

Billing - Total

NGN

104,267,813

101,317,207

102,009,902

118,596,412

107,307,840

103 98 74 3

Collections - Total

NGN

54,507,036

101,164,304

77,453,262 89,112,724 89,565,035 164 85 54 64

Non-Revenue Water

% 50 75 85 71 71 70 46 27 -43

Bill Production Efficiency

% 164 402 375 398 392 42 24 25 -139

(Bill) Collection Efficiency

% 52 101 76 75 84 161 87 73 61

New connections

No. 224 52 36 32 40 18 7 4 -82

Total connections

No. 75,321 83,915 88,330 87,686 86,644 115 97 89 15

Percentage Metering

% 10 6 6 6 6 56 14 10 -44

Percentage of reported pipe leakage/burst

% 48 93 96 80 89 187 119 105 87

Average response time to leaks / burst

hrs 65 7 3 4 5 1446 776 390 93

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Staff productivity

12 13.83 13.14 87 72 5

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Succession Improvement Plan:The review of the 100-Day PIP has led to the development of the Succession Improvement Plan(SIP). The review identified the major bottlenecks still limiting the district, the water treatment plants and corporate governance.

A key factor limiting the performance of districts is the poor systems and processes for billing, the functionality of billing machines and equipment, customer care and commercial management. It was identified that a customer-centred planning and operations would be required. This would ensure increased attention to customer payment options, improved communication between the commercial and technical teams for faster response time for repairs of leaks and customer sensitization on the policies and procedures of KSWC.

KSWC districts are also held back by ageing infrastructure (network), water production and supply and alternative sources developed by customers such as borehole supply. Hence, several accounts are inactive while fewer new connections are being secured. The utility’s districts also lack spare parts and other relevant materials for leakage repairs, with some lines shut down for days due to lack of repair materials.

The performance of the water treatment plants (WTPs) are hindered by broken down generators and pumpsets as well as absence or obsolete water quality testing equipment, in the face of poor raw water quality challenges. Ageing WTP infrastructure (pumps, reservoir tanks) and low operating funds limits the ability to conduct necessary routine maintenance functions such as desilting and equipment repairs.

The centrality of energy to water production and distribution is underscored by the debilitating impact the poor state of power supply has on the operations of the KSWC, requiring huge investments in generators and diesel. Tripartite discussions with NEPA has been suggested and an energy management task force established to address this issue.

Overall, the 100-Day program has shown early signs that the KSWC can turn-around its operations with the improvements in staff attitudes and stakeholder engagement and communications. The SBUs have suggested the cleanup of the billing data base and improvements in bill preparation and printing to further boost billing and revenue collection efficiency. In addition, KSWC is aimed to improve supervision and oversight of operations, particularly of the WTPs.

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4. PROFILE OF URBAN SANITATION ACTIVITIESOwnership of sanitation is a challenge, as there is no commonly agreed institutional home for the sanitation sector – it falls into a space between the Water Corporation, the State Environmental Protection Agency, and individuals. At the Federal Level, sanitation falls between the Federal Ministry of Environment and the FMWR. The National Task Group on Sanitation has not yet clarified specific roles and responsibilities.

As a result, progress has been hampered at the Federal level when it comes to providing leadership and strategic directions and frameworks for sanitation. The National Water Supply and Sanitation Strategy (NWSS, 2000) is very weak on sanitation, hygiene, and water quality. FMWR had developed a draft National Water-Sanitation Strategy in 2005. This strategy has yet to be approved by the National Executive Council as the Ministry of Environment has a claim to a similar policy with a wider mandate. Some of the development partners consulted by the WCP Team recommended USAID consider supporting the development of a national sanitation strategy.

To improve coordination, at least among Federal-level institutions, a stakeholder committee was established in 2016 for urban sanitation, amongst five ministers. The five ministers (Finance, Environment, Education, Health, and Water Resources) reportedly meet every six months to discuss national sanitation issues. Similarly, directors in those ministries have quarterly meetings to discuss national sanitation issues.

The Sanitation and Water Quality Directorate, which operates under of Ministry of Water Resources, has formed a high-level plan for urban sanitation and has asked for help with the development of a National Urban Sanitation Strategy.

The plan includes: Development of the policy; Implementation of guidelines; Capacity building at the Federal, State, and local levels; Mapping of cities where it would be feasible to demonstrate sustainable

sanitation solutions in the shorter term; Identification of possible PPPs in wastewater and fecal sludge management;

and Development of Sanitation Safety Plans. FMWR currently does Water Safety

Planning.

At the Federal level, FMWR has submitted a request to the World Bank to conduct urban sanitation mapping in 12 States in the hope of obtaining baseline data on urban sanitation. A financial estimate and scope for this work have yet to be developed. There are several pilot “demonstration” projects aimed at improving sanitation services across the country. For instance, a small sludge treatment plant

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became operational in Port Harcourt in 2013. The plant processes sludge from septic tanks. The treated water is reused and some compost is produced. Terms of reference have been issued for the subsequent work to develop a city plan for fecal sludge management (FSM). In addition, baseline data is available for Ekiti and Enugu, albeit dated, where communal sanitation was piloted by Septi International, a local firm. The WCP Team also found that a Lagos General Hospital is operating a bio-digester, while a JICA-supported Master Plan for WASH Infrastructure includes sanitation infrastructure.

At the State level, weaknesses and challenges also persist. Not all States have a State Environmental Protection Agency (SEPA), for example. In several of the States, the Ministries of Water Resources or the Ministry of Environment (MWR/MOE) execute both the implementation and regulatory functions of sanitation, creating overlaps and confusion for sanitation service providers and households who have to obtain multiple permits. Some stakeholders consulted by the WCP Team suggested that the city government and utilities (i.e., State Water Boards) should be responsible for the management of on-site sanitation, including FSM, whereas the State government should be responsible for solid waste management. Some of the development partners consulted recommended USAID fund pilot projects that would help demonstrate the potential economic benefits of fecal sludge management. Also, they recommended USAID support the establishment of small-town agencies at the State level to promote better management and coordination of sanitation investments in small towns and growing urban centers.

After the early successes of pilot projects WaterAid helped implement on a community-led total sanitation (CLTS) approach to sanitation in rural Nigeria in 2005, the government adopted CLTS as a national strategy. However, the country has recorded slow progress in achieving open defecation free (ODF) status. The first ODF Local Government Area was certified in 2016 (WHICH ONE). Several small towns are beneficiaries of the CLTS process, which serves as a good indicator to evaluate progress on sanitation uptake in the country.

The Federal Ministry of Water Resources is a key partner of the Phase II of the Sanitation, Hygiene and Water in Nigeria (SHAWN) project, which aims to accelerate access to sanitation in six States, including Bauchi and Kaduna. UNICEF is managing the SHAWN II project, which is funded by DFID. Under this project, DFID plans to provide UNICEF and Water Aid with a total of USD 124.4 million7 (from 2013 to 2018) to scale-up sanitation, hygiene and water activities in Nigeria and provide 4.68 million people with access to improved WASH services. The SAHWN II project covers 12 local governments in Kaduna and 8 local governments in Bauchi. Five LGAs in Bauchi participated in Phase 1 between 2010 and March 2013. Participating States are expected to make a 50% contribution to hardware cost while LGAs contribute USD 7808 (or NGN 250,000) monthly. The SHAWN project represents a typical funding framework for sanitation.

7 Per the following exchange rate on June 6, 2017: 1 GBP = 1.28902 USD, https://www.oanda.com/currency/converter. USD 124.4 million = GBP 96.52 million.8 Per the following exchange rate on June 6, 2017: 1 NGN = .00312 USD, https://www.oanda.com/currency/converter.

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Since 2014, the SHAWN II project has implemented CLTS intervention activities in Bauchi and Kaduna, including capacity building of community members, triggering of communities using a CLTS approach, as well as the monitoring and verification of ODF claims made by communities, and eventual certification. The project has financed the construction of public sanitation facilities, in areas such as transportation hubs (known locally as motor parks), markets, and schools, and is supporting the development of a sanitation marketing model with private sector entities managing WASH facilities. Some of the stakeholders consulted by the WCP Team suggested the CLTS approach, coupled with sanitation marketing, could be adopted in urban areas to improve the demand for sanitation services. As the demand for latrines increases and more communities are certified as ODF (as a result of CLTS/sanitation marketing successes), the lack of systems for the evacuation, transportation, treatment and disposal or reuse of fecal matter is all the more problematic.

During interviews with the WCP Team, representatives of the Kaduna State government confirmed the State government has provided counterpart funding contributions under the SHAWN II project.

5. PROFILE OF WASH SERVICES IN SMALL TOWNS

An estimated 60 million people populate small towns in Nigeria, where there is a growing concern that improvements to WASH services are often overlooked. The World Bank/International Development Association (IDA) provided a USD 5 million credit towards the implementation of a Small Towns Water Supply and Sanitation Program Pilot in Ebonyi, Katsina, and Niger States to address the massive and growing gaps in the delivery of WASH services. The project was to pilot a suitable approach to deliver sustainable services to settlements with a population between 5,000 – 20,000 residents. These are towns sufficiently large and dense enough to benefit from economies of scale and higher levels of service offered by pipe systems, but are too small and dispersed for WASH services to be profitably managed by conventional urban water utilities or State Water Boards.

The pilot project also benefited from an EU grant of USD 16.89 million9 from the 7th European Development Fund to Adamawa, Delta, and Ekiti States, to ensure the small-towns project was expanded to cover (with Ebonyi, Katsina, and Niger States) the six geopolitical zones of Nigeria. The pilot projects aimed at improving water supply and sanitation, focusing on promoting community participation, ownership, and the management of water supply and sanitation facilities. Participating communities were encouraged to make informed decisions on the types of water supply improvements based on their willingness and ability to pay between a 5% to 10% capital investment cost, as well as the full operation and maintenance costs.

These pilot projects successfully tested and refined the concepts of community participation, ownership, and management, in financing sustainable water supply 9 Per the following exchange rate on June 6, 2017: 1 EUR= 1.12612 USD, https://www.oanda.com/currency/converter.

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and sanitation. Extensive community mobilization coupled with health and hygiene education was also conducted in the communities. The pilot projects also established and tested institutional and governance structures needed to deliver services; assisted in the development of a demand led approach to water and sanitation services; and tested the availability of opportunities for private sector participation based on a system of contracting with consumer associations. Overall, they provided learning tools and practical demonstrations that small-town water projects can be viable and sustainable.

There have been additional grants by the EU under the Water Supply and Sanitation Sector Reform Programme (WSSSRP I & II) as well as the Water Component of EU-Niger Delta Support Programme, however, small-town WASH investments have not become embedded nationwide (see table). Only a handful of States have specialized departments or agencies managing the needs of small towns and population growth centers. A proposal to scale up the Small Towns Water Supply and Sanitation Program Pilot as a National Program had been approved by the National Technical Committee on Water Resources, since 2008.

Table 4: EU-supported Small-Towns Water Supply and Sanitation Projects in Nigeria over the Last DecadeDevelopment Partner

Project Title

Sector/ Thematic Area

Geographical Area

Time Frame

Project amount (USD million) 10

Status

EU Water Supply and Sanitation Sector Reform Programme (WSSSRP)

UWSS (Small Towns)

Anambra, Cross River, Jigawa, Kano, Osun & Yobe

2005-2011

$134.72 Closed, but outstanding work is being completed with local funds

2nd Water Supply and Sanitation Sector Reform Programme (WSSSRP II)

UWSS (Small Towns)

Anambra, Cross River, Jigawa, Kano, Osun & Yobe

2013-2018

$105.85 On-going;Managed by NPC

Water Component of EU-Niger Delta Support Programme (NDSP)

UWSS(Small Towns)

Akwa Ibom, Bayelsa, Delta, Edo, & Rivers

2013-2018

$73.14 On-going;Managed by NPC

10 Per the following exchange rate on June 6, 2017: 1 EUR= 1.12612 USD, https://www.oanda.com/currency/converter.

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6. ANNEX 1: LIST OF INTERVIEWSDate Location Institution Representative(s)

1 01/25/2017 Bauchi

Bauchi State Government and

BSWSC

Alhaji Garba Muh’d Sarki Akuyam (Honorable Commissioner for Budget and Planning for Bauchi State Government), and Engineer Aminu Aliyu (General Manager / Acting Managing Director for BSWSC)

2 01/31/2017 Abuja WaterAid Nigeria

302/06/201

7 & 02/09/201

7Kaduna 2ML Consulting

LimitedDr. William Muhairwe, Dr. Dorothy Kopel, Maureen Abakundaine

4 02/07/2017 Kaduna Kaduna State

GovernmentMuhammad Sani Abdullahi (Honorable Commissioner for Budget and Panning)

5 02/21/2017 Abuja WaterAid

Joe Lambongang (Interim Country Director), Tolani Busari (Head of Governance), Vremudia Lawal (Program Staff)

6 02/21/2017 Abuja World Bank Khairy al Jamal (Senior

Infrastructure Specialist)

7 02/21/2017 Abuja

African Development Bank (AfDB)

Tom Mugoya (WASH Lead), Bashir Ibrahim Gaya (WASH Specialist)

8 02/22/2017 Abuja

Kannan Nadar (Chief WASH, UNICEF & Chair WASH Donor Coordinating Group)

9 02/24/2017 Kaduna

Kaduna State Water

CorporationEngineer Anto Ogah (Program Management Unit)

10 02/27/2017 Kaduna

National Urban Water Sector

Reform Project

Soni Elisha (Consultant on NUWSRP-1 and Former Customer Service Manager at Kaduna State Water Corporation)

11 02/27/2017 Kaduna Kaduna State

Government

Jimi Lawal (Senior Advisor / Counselor to the Governor), Mary Adeola Olarerin (Senior Special Assistant – Project Implementation and Monitoring), Yusuf Abdullah Rigasa (Engineer KEPA)

12 02/27/2017

Kaduna Eng. Kabiru (Former Managing Director for Kaduna State Water

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Corporation)

13 03/01/2017 Abuja

Federal Ministry of Water

ResourcesAjisegiri Benson (Director of Water Supply)

14 03/01/2017 Abuja

Water Quality and Sanitation Department

Emmanuel Awe (Director, Water Quality and Sanitation), Ngozi Abohwo (Deputy Director for Urban Sanitation), Bako R.A. (Deputy Director for Water Quality Surveillance), Jamilu Habu (Deputy Director for Water Quality Control), Engr. Baba Galadima (Deputy Director of Water Resource Control), Engr. Emmanuel C. Eze (Deputy Director of Sanitation-Rural), Hycinth I. Enyi (Assistant Chief Technical Officer), Uchenna B. Ukaegbu

15 03/10/2017 Kaduna

Kaduna State Government and 2ML Consulting

Limited

Suleiman Aliyu Lere (Honorable Commissioner of Water Resources for Kaduna State Government), Dr. William Muhairwe (Senior Consultant for 2ML Consulting Limited)

16 03/11/2017 Kaduna 2ML Consulting

LimitedDr. William Muhairwe (Senior Consultant)

17 03/15/2017 Bauchi

Bauchi State Government and

BSWSC

Mohammed Ghali Abdulhameed (Honorable Commissioner of Water Resources for Bauchi State Government), Engr. Aminu Gital (Acting Managing Director for BSWSC)

18 03/23/2017

Washington D.C World Bank Khairy al Jamal (Senior

Infrastructure Specialist)

19 03/28/2017

Department for International Development

(DFID)

Ben Nicholson, Melkamnesh Alemu

20 03/30/2017

Islamic Development

BankNaseer Yakubu

21 03/30/2017 UNICEF, Kaduna Uptal Moitra, Theresa Pamma

22 05/22/2017

Bauchi World Bank, Bauchi State

Government & BSWSC

Khairy al Jamal (Senior Infrastructure Specialist for World Bank), Mohammed Ghali Abdulhameed (Honorable Commissioner of Water Resources for Bauchi State

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Government), Engr. Aminu Gital (Acting Managing Director for BSWSC)

23 05/23/2017 Abuja

National Urban Water Sector

Reform ProjectMr. Olabode Fashoyi (Acting National Project Coordinator)

24 05/23/2017 Abuja

Small Towns Water Supply and Sanitation

Program

Engr. Gerald Osuagwu (Project Coordinator)

25 05/23/2017 Abuja

EU WSSSRP II & EU NDSP – Water

and SanitationKate Kanebi (Project Manager)

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