SUMMARY

Non-State Delivery of Non-State Delivery of Water and Sanitation ServicesWater and Sanitation Services

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

ADB HQ, Manila, Philippines19-20 April 2010

Engaging NSPsEngaging NSPsNSPs have specialist capacity and flexibility to operate in different conditions and offer services.

NSPs can help stimulate demand, and respond to changes in demand.

Government cannot do it alone: Gov’t can enhance its roles as enabler while NSPs can fill the gap in financing and/or service delivery.

Innovation is often driven by NSPs.

Cost sharing options can stimulate household demand and financing, and leverage funding from government and other sources.

Key IssuesKey Issues

Lack of recognition or inclusionAffordabilityService qualityPro-poor servicesFinancingPolicyRegulation

Administrative and legal barriersTechnical and physical barriersVested interests (opposition to change, political intervention, corruption)Uncertainty and risk

Why Small Piped Network DeliverWhy Small Piped Network Deliver

Quick

Affordable

Convenient

Reliable

Adequate technical standards

Expanded coverage

Ownership

Gram Vikas: Key factors for successGram Vikas: Key factors for success

Strong awareness building and shared goal to achieve 100% sanitation and piped water coverage.

Village ‘corpus’ fund

Comprehensive hygiene and health education program

Integrated approach to developmentSanitation and water as entry point for other developments

Mechanisms for continued operation and maintenance and repairs are in place

Capacity development for self-reliant and self-governing village institutions

GRET: NSP costs and benefitsGRET: NSP costs and benefits

BenefitsCapital cost per connection low = USD 32 (due to locally appropriate technical standards)Network expansion after project close

(162 hhds/system to 425 hhds/system)Costs

Despite subsidy, only 49 poor hhds connected (0.8% connections)

GRET: Lessons learnedGRET: Lessons learned

Intensive TA difficult to replicate at scale (USD 114 per hhd; experienced design engineers)Most poor remain unconnected & outside network(insufficient incentives for connecting poor)Low response to assisted credit(bank loan conditions stringent: collateral valuation)No replication of treatment works or public-private contract in spontaneous projectsSmall-scale intervention with little national impact

IDE: NSP costs and benefitsIDE: NSP costs and benefits

Leverage ratio 2:1 (USD 65 hhd vs USD 33 project)Business growth among informal providers Flexible paymentsAccreditation of competent masons (health posts)

Problems:Demand for relatively expensive latrine models (few models suitable for poorest)Equitable outcomes but not progressiveStrong demand for fertilizer risks parasitic infections

IDE: Lessons learnedIDE: Lessons learned

Market-based approach generated sustainable supply chains (demand creation weaker)

Involvement of marketing expert critical to user-centered approach (promotion, products, prices)

Significant replication and scaling up of approach outside Vietnam (Indonesia, Cambodia, Timor-Leste, etc)

Reduced benefits due to failure to achieve community-wide sanitation improvement (not targeting poorest)

Group discussion:Group discussion:Issues to be resolvedIssues to be resolved Enabling environment (policy, laws, regulations,

institutional) Quality Accountability Capacity development Financing Knowledge sharing: technology, financing and

management options, economic costs and benefits Public awareness and participation

www.adb.org

THANK YOUTHANK YOU

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

ADB HQ, Manila, Philippines19-20 April 2010