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NSP CASE study 3: Piped rural water (GRET), Cambodia

NSP CASE study 3: Piped rural water (GRET), Cambodia. Manila, 20 April 2010. GRET Mini Piped Water Program. Cambodia: rural centers/small towns (< 5,000) 2001-2005: 14 small piped WS systems built Program cost: USD 870,000 (78% TA) Approx. 6,000 households connected (29,000 people)

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NSP CASE study 3: Piped rural water (GRET), Cambodia

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  1. NSP CASE study 3:Piped rural water (GRET), Cambodia Manila, 20 April 2010

  2. GRET Mini Piped Water Program • Cambodia: rural centers/small towns (< 5,000) • 2001-2005: 14 small piped WS systems built • Program cost: USD 870,000 (78% TA) • Approx. 6,000 households connected (29,000 people) • High TA expenditure: • Contracted through Local Govt • External design & supervision • Assisted credit & guarantees • Subsidy (treatment works)

  3. GRET: role of NSPs • 2/3 capital investment = private equity • Private piped = 77% coverage • Network serves central areas (23% poorest beyond network) • Water tariff increases < 5% per year • Resale price control failed! (intended to limit resale price to 125% tariff) • Little input to design, construction or business model • No investment for treatment works (100% subsidy)

  4. GRET: NSP costs and benefits Benefits • Capital 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)

  5. GRET: 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 projects (6 since 2005) • Small-scale intervention with little national impact (+0.6% rural water supply coverage)

  6. NSP CASE study 4:IDE Sanitation marketing, vietnam Manila, 20 April 2010

  7. IDE sanitation marketing, Vietnam • 2003-06: 30 communes in 6 coastal provinces • Market driven = no latrine subsidies (hardware) • 6,000 toilets in Year 1; 15,000 by 2006 … • Project cost: USD 336,000 • USD 33 software per toilet • Pour-flush, septic tank and double vault latrines (USD 32 to 97 per latrine) Sanitation coverage: 2003-08

  8. IDE: role of NSPs NGO + local government + informal providers: • Product development (local sanitation options) • Competent private service providers (cap. blg) • Marketing campaign (demand for sanitation) • Community mobilization for behavior change • Building local sanitation networks (2,000 govt. staff trained) Innovation by identification: • Spending preferences (TV, karaoke) • Demand constraints (lack of product information, lack of desirable options and suppliers)

  9. IDE: NSP costs and benefits • Leverage ratio 2:1 (USD 65 hhdvs USD 33 project) • Business growth among informal providers (more business volume; 2/3 with greater profit) • Flexible payments(credit with material suppliers; installment payments) • Accreditation of competent masons (health posts) • Demand for relatively expensive latrine models (few models suitable for poorest) • Equitable outcomes but not progressive (16% poor customers vs 19% poverty line) • Strong demand for fertilizer risks parasitic infections (due to early emptying and use)

  10. IDE: 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 TSSM, Cambodia IDE, Timor-Leste etc) • Reduced benefits due to failure to achieve community-wide sanitation improvement (not targeting poorest)

  11. Thank you! Precast sanitation goods for sale by a concrete producer in Kampong Speu, Cambodia

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