Water and Sanitation

Trust Fund

UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME (UN-HABITAT)

UN-HABITAT

WATSANtrust fund

contributing to the achievement of internationally agreed

water and sanitation goals and related targets by

supporting developing countries to create an enabling

environment for enhanced flow of investment in

water and sanitation targeted to the urban poor

contents

foreword

the challenge 1

why the trust fund? 2

what activities are being supported?

key challenges ahead 13

Development of Norms Standards and Management Toolkits

for the Water and Sanitation Sector 3

Water for African Cities Programme 5

Water for Asian Cities Programme 8

Strategic Support to Pro-poor Water and Sanitation Initiatives 11

Monitoring Progress towards MDG and WSSD Water and

Sanitation Targets 12

Regional Programmes Promoting Pro-poor Investment

foreword

The struggle to achieve the MillenniumDevelopment Goal for water and to meet thetargets for water and sanitation agreed at theWorld Summit on Sustainable Development willhave to be waged in human settlements - in ourcities, towns and villages. It is here, where waterwill be consumed and waste generated, thatactions must be coordinated and managed.

It is at the level of shelter and settlements that thetwo targets: 10 and 11 of MDG 7 come togetherand will have to be delivered together. Addressingthese two interdependent targets will require awell-coordinated approach; we cannot neglectone without neglecting the other. I have thereforeestablished two facilities within UN-HABITAT tosupport our member countries in their struggle toachieve the MDGs: the Water and Sanitation TrustFund, to support target 10 of MDG7; and theSettlement Upgrading Facility, to support target11 of MDG7.

The UN-HABITAT Water and Sanitation TrustFund provides a credible delivery mechanismwhose key objectives are to create an enablingenvironment for pro-poor investment in waterand sanitation in urban areas, and to supportcapacity building at the local level to managethese investments in a sustainable manner. Withinitial support from the Canada Fund for Africa,the Government of Norway, and the Governmentof the Netherlands, the Trust Fund has helped toexpand the Water for African Cities Programmefrom 8 to 14 countries.

In the Asia Pacific region, home to 70 percent ofthe world's poor, the Trust Fund will supportcapacity building efforts in a number of LDCsincluding Nepal and Bangladesh in South Asia,and Cambodia, Vietnam and Lao PDR in theMekong region.

With the experience gained from our two regionalwater and sanitation programmes, we are nowlooking at the secondary towns in the leastdeveloped countries of Africa and Asia, many ofwhich are way off track in reaching the MDGtargets by 2015, or even by 2020. With thestrategic support of the Trust Fund, buildingcapacity at local level will be the key to achievingsustainable results in these towns.

I am confident that the collective support of ourdonors will help to strengthen the Trust Fund, andthrough it, improve aid-effectiveness in thedelivery of water and sanitation services,particularly to the poorest populations in thedeveloping world.

Anna Kajumulo TibaijukaExecutive DirectorUnited Nations Human Settlements ProgrammeUN-HABITAT

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As the 20 Century drew to a close, the world hadrecorded significant advances in technology,improved access to free education, and a markedreduction in poverty levels. Despite all theseremarkable achievements, over a billion of theworld's people still remain without access to safedrinking water, and over twice that number aredenied access to adequate sanitation.

In many African cities, poor slum residents oftenhave to pay vendors up to 20 times more for theirwater than residents with access to municipalsuppplies, while up to 50 percent of the waterabstracted and treated at high cost is wastedthrough leakages, illegal connections andprofligate use. The challenges inherent inaddressing the problem are made complex dueto: the number of actors and their diversity, the

th pervasive effects of inadequate policies at alllevels, weak enforcement of regulations,inadequate information, and the need to findsolutions tailored to suit local conditions.A strategy for meeting the water and sanitationtargets that takes into account physical,financial and institutional constraints,particularly as they affect the poor, is a criticalfirst step in addressing the challenge.

The s t r a t egy mus t c l e a r l y i d en t i f yimplementation needs, quantify the costs, anddevelop operational plans at appropriate levelswith local participation. Implementation must befocused and flexible in a spirit of partnership,keeping in mind that the MillenniumDevelopment Goals were designed to help thepoorest of the poor.

the challenge

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why the trust fund?

The UN-HABITAT Water and Sanitation TrustFund will contribute to the achievement ofinternationally agreed water and sanitation goalsand related targets by supporting developingcountries to create an enabling environment forenhanced flow of investment into the water andsanitation sector, specifically targeted to theurban poor.

The Trust Fund provides a well-coordinatedprogrammatic approach, allowing donors toimprove their aid-effectiveness by contributingto a consolidated fund dedicated to a clear set ofobjectives.

As a fast track mechanism for reaching out to theurban poor, the Fund will be a bridge to access

benefits from city-wide improvements whichoften bypass them. It will also offer contributorsan opportunity to target a high priority sectorwith maximum impact by taking advantage ofthe mandate and demonstrated corecompetencies of UN-HABITAT.

Among key donors to the Trust Fund are theGovernments of Canada, Norway, theNetherlands and Sweden. The governments arecommitted to supporting the broad scope of theFund's activities addressing the challenge ofmeeting the MDGs in water and sanitation, andsupporting water sector improvements in thedeveloping world.

UN-HABITAT Executive Director Dr. Anna Kajumulo Tibaijuka and CanadianMinister for International Co-operation Hon. Susan Whelanexchange documents after signing a Memorandum of Understanding on 27

October 2003 in which the Government of Canada committed Canadian $15million to the UN-HABITAT Water and Sanitation Trust Fund.

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what activities are being supported?

Development of NormsStandards andManagementToolkits for the Water andSanitation Sector

Continuing high level advocacy by UN-HABITAThas contributed significantly to raising the profileof urban water and sanitation issues on theinternational development agenda. Normativework in the field of urban water and sanitationfocuses on developing pro-poor and genderfocused frameworks that strengthen the capacityof the sector to deliver efficient and affordablewater and sanitation services to all, in anenvironmentally sustainable manner. In thiscontext, the following activities are supported:

Enhancing Pro-poor Focus of UrbanWater and Sanitation Services

Pro-poor Water Governance

A joint initiative with the World Bank isdeveloping a pro-poor governance frameworkand a related assessment methodology, that are

applicable at the project formulation andevaluation stages. The African DevelopmentBank has expressed interest in testing the pro-poor governance framework in its field projects.

In 2004, UN-HABITAT commissioned a study onways to enhance domestic private sectorparticipation in water and sanitation services andstrengthen the role of the informal sector in waterand sanitation service delivery for the urban poor.

UN-HABITAT has signed a cooperationagreement with Green Cross International todevelop an ethical and legal framework formobilising support for water and sanitation frompolicy-makers. The rights-based approach willfocus attention on the most vulnerable and mostmarginalised communities and their right toparticipate in the decision-making process.

The Private Sector and the Urban Poor

Rights-based Approach to Water

Joep Bijlmer, Senior Policy Advisor, Directorate for Environment and Water(DMW), Ministry of Foreign Affairs, Government of the Netherlands, Jan Bauer,Deputy Permanent Representative of the Government of the Netherlands toUN-HABITAT, Nicolas Drouin, Senior Programme Officer, Canada Fund forAfrica, CIDA, and Jostein J. Leiro Deputy Director General, UN Section Ministryof Foreign Affairs, Government of Norway, have informal consultations duringthe inaugural Advisory Board meeting of the UN-HABITAT Water andSanitation Trust Fund held in Nairobi from 7 to 8 December 2004.

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Improving Urban Water ResourceManagement

Rainwater Harvesting in Urban Areas

Urban Water Demand Management

In collaboration with the International RainwaterHarvesting Association and City Foundation, anNGO based in India, UN-HABITAT has developeda series on Urban Rainwater Harvesting -

. The series, which address policymakers and donors, project managers andpractitioners working on rainwater harvesting,and project beneficiaries including communitiesand institutions, provide guidelines on effectiveand efficient rainwater harvesting.

Developing tools and guidelines for improvingthe efficiency of water use in urban areas,pioneered by the UN-HABITAT Water andSanitation Programme in Phase I of the Water forAfrican Cities Programme, remains a keynormative activity. A Manual on component-based leakage management, the

was produced byUN-HABITAT in collaboration with Rand Waterof South Africa in 2004.

TheBlue Drop Series

Water DemandManagement Cookbook

Urban Catchment Management

Environmental Assessment of Water andSanitation Activities

Following an international workshop on UrbanCatchment Management organised byUN-HABITAT during the InternationalConference on Sustainable UrbanisationStrategies held in Weihai, China, in December2003, a guide for local catchment management inAfrican Cities has been commissioned. It reviewsinternational practices in urban catchmentmanagement and the experiences of Water forAfrican Cities Programme in Phase I and willprovide African cities with a framework fordeveloping localised urban catchmentmanagement strategies. Its recommendations willbe implemented in the second phase of Water forAfrican Cities Programme.

The Monitoring and Evaluation Branch ofUN-HABITAT, in collaboration with the Waterand Sanitation Programme, recently finalized aset of guidelines for Environment ImpactAssessment requirements in UN-HABITATactivities that will facilitate integration ofenvironmental concerns into UN-HABITATdevelopment projects and programmes .

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Water for African CitiesProgramme Phase II

The second phase of the Water for African CitiesProgramme (WAC II) was formulated in line withrecommendations of an independent evaluationof the first phase implemented from 1999 to 2002.Following an Expert Group Meeting convened byUN-HABITAT, the following six key thematicpriority areas were identified for WAC II:

Selection criteria for inclusion of cities in Phase IIinclude the state of existing infrastructure, extentof scarcity of water resources, severity ofenvironmental problems resulting fromurbanisation, and willingness of the host countryor city to provide counterpart support.

Primary partnerships will be promoted withnational and city governments, local authorities,utilities and the civil society, in order toimplement and operationalise the programme,while strategic partnerships will be fostered withmultilateral and bilateral agencies, as well as withregional development banks.

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Pro-poor governance and follow-upinvestment

sanitation for the urban poor

urban catchment management

Water Demand Management

water, sanitation and hygiene education inschools and communities

advocacy, awareness-raising, and informationexchange.

Country-level Operations in WAC II

Launched at the Pan African Implementation andPartnership Conference on Water in Addis Ababain December 2003, WAC II received full supportfrom the African Ministers Council on Water(AMCOW).

In addition to the eight countries in WAC I(Ethiopia, Ghana, Ivory Coast, Kenya, Senegal,South Africa, Tanzania and Zambia), WAC II willbe implemented in seven new countries (BurkinaFaso, Cameroon, Mozambique, Mali, Nigeria,Rwanda and Uganda).

WAC II will establish collaborative arrangementswith regional and international financinginstitutions to promote increased flows ofinvestment into the water and sanitation sectorsin the participating cities.

Joint missions aimed at identifying potentialareas of pro-poor investments that could enhanceproject formulation currently being undertakenby the African Development Bank, have beenundertaken in Cameroon, Ethiopia andMozambique.

regional programmes promotingpro-poor investment

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Training and Capacity Building

The Training and Capacity Building Programmewas initiated in the first phase of the Water forAfrican Cities Programme in response to arecommendation of the Ministerial AdvisoryGroup meeting in The Hague in 2000.Implemented in collaboration with IHE Delft, theProgramme is designed specifically for sectorprofessionals in African cities. It focuses onintegrated urban water management, withparticular emphasis on Water DemandManagement (WDM) and water qualitymanagement.

The training, which targets three levels ofmanagement (middle level managers, seniormanagers and apex-level managers or policy-makers) is conducted in structured, modular, andmutually inter-related training workshops thatrange from one to three weeks in duration. Up tothirty professionals from each of the seven WAC Icities underwent training in Phase I. TheProgramme also supports enhancement ofcapacity in two sub-regional resource centres(NETWAS in Nairobi for East Africa and CEFOC inOuagadougou for West Africa).

Gender Mainstreaming Activities

A Gender Mainstreaming Strategy Initiative(GMSI) has been formulated to ensure thesystematic mainstreaming of gender issues intothe WAC II programme. The GMSI will developmethodologies for mainstreaming gender intoprogramme delivery. The initiative involvesspecific actions at various levels including policydialogues, institutional and human resourcecapacity building, and practical implementationof projects using gender analytical tools. Genderequity will be addressed within the context ofemerging water policy issues, with focus on anintegrated approach to water resourcemanagement.

Regional Activities in WAC II

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Values-based Water Sanitation and HygieneEducation

Advocacy, Awareness Raising andInformation Exchange

The Values-based Water, Sanitation and HygieneEducation component was another UN-HABITATinitiative in response to the recommendation ofthe Ministerial Advisory Group meeting in TheHague in 2000. With support from the SwedishInternational Development Agency (Sida), theprogramme was implemented in seven countriesin WAC I. Based on the recommendations of anexternal evaluation commissioned byUN-HABITAT in 2004, the programme is beingexpanded to Phase II cities with the support of theTrust Fund.

The communications strategy takes into accountthe unique conditions, needs and circumstancesof different communities and stakeholdercategories. It seeks to establish existing

perceptions of the level and quality of water,sanitation and waste management servicedelivery on the ground; assesses existing levels ofknowledge, attitudes and practices in these areas;and determines communities' perceptions ofpossible solutions and their respective roles inimplementing these solutions. Appropriatemessages are then designed that adequatelyaddress all target groups of beneficiaries andstakeholders.

The strategy focuses on three key areas:

high-level advocacy and promotion of theProgramme to influence national policy andgain political buy-in

awareness campaigns to sensitize localcommunities and mobilize their participationin, and support for the programme

facilitation of information exchange amongparticipating cities to encourage feedback onimplementation.

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Water for Asian CitiesProgramme

A co l l a bo r a t i v e i n i t i a t i v e b e twe enUN-HABITAT, the Asian Development Bank(ADB) and the Government of the Netherlands,the Water for Asian Cities Programme aims tosupport Asian cities to achieve the water andsanitation related MDGs by enhancing the flow of

pro-poor investment into the sector.Acknowledged as a major Type II outcome ofWSSD, the Programme envisages capacity-building grant support of US $10 millionprovided by the Government of the Netherlandsand the ADB, with follow up loans from the ADBamounting to US $500 million to Asian citiesover a five-year period from 2003-2007. TheProgramme was officially launched on 18 March2003 at the 3 World Water Forum. During thelaunch, a Memorandum of Understanding forjoint programme implementation was signedbetween UN-HABITAT and the AsianDevelopment Bank.

In December 2003, the ADB approved a loanfacility amounting to US $200 million under theWater for Asian Cities Programme for improvingwater and sanitation services in four cities in thestate of Madhya Pradesh. UN-HABITAT willprovide capacity building support to develop apro-poor governance and communityempowerment framework to facilitateinvestments being directed to the urban poor.

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India

Ongoing Country Initiatives

UN-HABITAT Executive Director Dr. Anna Kajumulo Tibaijuka pictured withthe President of the Asian Development Bank Dr. Tadao Chino after signing aMemorandum of Understanding in which the ADB committed US$ 500 millionin follow-up investments for the Water for Asian Cities Programme duringWorld Water Forum 2003 in Osaka, Japan.

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People's Republic of China

At the request of the Ministry of Construction ofthe Government of the People's Republic ofChina, UN-HABITAT included the city of Nanjingin the Water for Asian Cities Programme inAugust 2003. Following a joint UN-HABITAT andAsian Development Bank mission, UN-HABITATundertook a diagnostic study in Nanjing city toestablish sector-wide opportunities for pro-poorinvestment and related capacity-building needs.

Based on the draft report of the diagnostic study,a proposal by the city of Nanjing has now been

included in the ADB country strategyprogramme. Preparatory technical assistance isexpected from the ADB to the city of Nanjing tosupport a US$100 million investment in 2006.UN-HABITAT interventions will focus on low-income satellite areas of Nanjing city whereservice coverage is poor.

The ADB has been implementing a KathmanduValley Water Services Sector Programme sincethe end of 2003. In consultation with theGovernment of Nepal and the ADB,UN-HABITAT is currently developing a strategyfor a Kathmandu Valley Small Towns Water andSanitation Initiative.

As a first step, a community-based low costsanitation and water supply demonstrationproject is being developed in a small town of lessthan 50,000 inhabitants (Thimi). Projectimplementation is scheduled to commence in thefirst half of 2005. With support from the ADB, thisinitiative will be expanded successively to othersecondary cities.

Nepal

Planned Country Initiatives

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Sri Lanka

In Sri Lanka the ADB is implementing aSecondary Towns and Rural Community-basedWater Supply and Sanitation Project. Under theCountry Strategy Programme for 2005 - 2006, awastewater management project for Colomboand a water supply project in Jaffna are planned.In consultation with the ADB, UN-HABITAT willcarry out a rapid appraisal early in 2005, followedby a mission to identify opportunities forintervention and possible linkages to the Project.

Drawing upon the experience of its successfulprogramme in Africa, UN-HABITAT organized aRegional Consultation on Values-based Water,Sanitation and Hygiene Education in South andSouth East Asia in November-December 2003 incooperation with the ADB and SEAMEO (SouthEast Asian Ministers of Education Organization).Hosted by the Minister of Education of thePhilippines, the consultation was attended by

Regional Cooperation on Value-based WaterSanitation and Hygiene Education

more than 100 senior education experts from over20 countries who developed a strategy forintroducing water and sanitation education intheir respective national educational curricula.Based on the recommendations of the meeting,SEAMEO unanimously adopted a resolution tointroduce Value-based Water, Sanitation andHygiene Education in all schools of its membercountries at its 38 Council Conference held inBrunei on 1 March 2004.

A study visit by Ministers of Education and senioreducation administrators from Africa to theSEAMEO headquarters in Bangkok, Thailand, wasundertaken from 24 to 26 May 2004. The three-day study visit was aimed at facilitating exchangeof experiences and best practices on VBWSHE,familiarizing the African delegation with thestructure and operations of SEAMEO, andexploring potential areas of cooperation betweenAfrica and Southeast Asia in the promotion ofVBWSHE. The UN-HABITAT delegation alsoparticipated in the SEAMEO-UNESCO EducationCongress and Expo held in Bangkok from 27 to 29May 2004.

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Strategic Support toPro-poor Water andSanitation Initiatives

The Lake Victoria Water and SanitationInitiative

The Trust Fund supported the initial situationalanalysis and the development of a proposalpromoting pro-poor investment in the secondarytowns around Lake Victoria. A key component ofthe initiative is capacity building at local level forsustainability of investments and improvementof service delivery.

The Lake Victoria initiative provides a model forachieving MDG targets for water and sanitationthrough relatively modest investment ininfrastructure rehabilitation and capacitybuilding in a limited number of secondary townswith poor populations.

This UN-HABITAT Initiative is expected toleverage additional grant resources forinfrastructure rehabilitation in these towns.During implementation, the Agency's principalrole will be to ensure smooth coordination of thisregional initiative. While UN-HABITAT will beinvolved in joint implementation with the hostcountries during the first phase, a gradual processof disengagement is foreseen as local capacity forimplementation is enhanced through the capacitybuilding efforts of the Initiative.

The initial assessment and stakeholderconsultations have demonstrated a strongownership of the process, both at political andlocal level. This process will be further

strengthened in the preparatory andimplementation phases through multi-stakeholder consultations using existingconsultative mechanisms developed throughrecent sector reforms in the three countries.

Cooperation among the countries in the Mekongbasin has grown over the years. Both the People'sRepublic of China and the Government ofThailand have indicated support for a regionalcooperation water and sanitation initiative led byUN-HABITAT, to support achievement of theMillennium Development Goals in the poorersecondary towns in the region.

In consultation with the ADB, UN-HABITAT willconduct a rapid appraisal of water and sanitationinfrastructure, capacity building, and investmentneeds for secondary towns in Cambodia, Lao PDRand Vietnam with support from the Water andSanitation Trust Fund.

Greater Mekong Regional CooperationInitiative

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Monitoring Progresstowards MDG and WSSDWater and SanitationTargets

UN-HABITAT will monitor its Water andSanitation Programme within the conventionalmonitoring and evaluation framework withimpact, outcome and output indicators at theindividual, household, community and citylevels. Impact monitors will track improvementsin the conditions of the urban poor brought aboutby Programme interventions. Key indicators of'improvement' include levels of access, safety,and affordability of water and sanitation services.The burden of fetching and managing water onwomen and children will be an additionalindicator.

A Results Based Monitoring (RBM) frameworkhas been developed and will be the basis formonitoring and evaluation of all activitiessupported by the Trust Fund. The RBMFramework is designed to:

Ensure clear and logical design that tiesresources to expected outcomes

track progress, measure outcomes, supportsubsequent evaluation work, learn and makeadjustments to measures to improveimplementation on an ongoing basis

ensure regular and adequate reporting onoutputs and outcomes.

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RBM Monitoring Framework

The RBM framework provides a set of indicatorsto facilitate ongoing performance monitoringwith indications of the levels of attainment ofplanned results. Its flexibilty allows the RBMframework to be amended in response tochanging circumstances and needs asimplementation activities evolve over time.

Studies are ongoing for the 2006 edition of theGlobal Report

The focus of this edition will beurban pro-poor water governance. The 2006report will contribute input into the World WaterDevelopment Report.

The outcomes of an official dialogue organizedduring the second World Urban Forum in Spain inSeptember 2004 on

will provide additionalinput to the 2006 edition of the Report.

Water and Sanitation in theWorld's Cities.

Making the Private SectorWork for the Urban Poor

key challenges ahead

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Based on extensive consultations withdevelopment partners, and drawing uponemerging experiences from UN-HABITAT Waterand Sanitation Programme implementation in thefirst year, the Programme will address thefollowing key challenges in 2005:

� Lack of baseline information on MDGcoverage

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need to operationalize sector reforms at thelocal level

local resource mobilization

advocacy, awareness raising, informationexchange and education

enhancing capacity for programme delivery.

Activities in 2005-2007 will therefore focus onfull operationalization of the regional waterprogrammes in Africa and Asia andimplementation of the Lake Victoria and theMekong regional initiatives.

Normative activities, with emphasis on theirapplication in the regional water programmes,and commencement of baseline data collectionfor monitoring of progress towards achieving theMDGs will be the other priority areas.

A Results Based Management (RBM) approach toall the activities supported by the Trust Fund willfacilitate more effective, efficient and responsivep rog ramme des ign , imp l emen ta t i on ,management, monitoring and evaluation. As amanagement tool, the RBM Frameworkencourages a more focused approach, and allowsgreater flexibility in directing the progress ofprogramme activities.

For Further Information Contact:

Mr. Kalyan RaySpecial AdviserOffice of the Executive DirectorUnited Nations Human Settlements Programme(UN-HABITAT)P.O. Box 30030, Nairobi, KenyaTel: (254-20) 623039Fax: (254-20) 623588Email: kalyan.ray@unhabitat.orgWebsite: www.

www.unhabitat.orgun-urbanwater.net

WATSANtrust fund

UN-HABITAT

UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME

P.O. Box 30030, GPO Nairobi 00100, Kenya

Email: info@unhabitat.org

Website: http//www.unhabitat.org