Non-State Delivery of Water and Sanitation Services

1. UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery ADB HQ, Manila, Philippines 19-20 April 2010 Non-State Delivery of Water and Sanitation Services Anupma Jain Asian Development Bank

2. Engaging NSPs • NSPs 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 and NSPs cannot do it alone: Gov’t can enhance its roles as enabler while NSPs can fill the gap in implementation. • Innovation is often driven by NSPs. • Cost sharing options can stimulate household demand and financing, and leverage funding from government and other sources.

3. Small-scale Water Providers

4. Types of small-scale water providers • Local governments • Cooperatives • Private sector • Subdivision/village developers • Rural waterworks and sanitation association

5. Key features of SSWP • Small-scale piped network • Operates with very minimal investment • Because of their number, they operate in a competitive environment. • They operate in areas beyond the reach of formal water service providers. • Their existence or viability is dependent on how the formal service providers can efficiently provide service in the same area in terms of coverage and hours of operations. • Struggle with sustainability issues (low tariffs and reduced services levels).

6. The system Source flow meter or Utilities Bulk Meter Mother meters for coordinators Coordinators Dist. Line • Coordinators /collectors: appointed by the contracting party • Flexible collection: depends on the source of income of the consumer • Non revenue water: 5-10%

7. Inpart Waterworks and Development Corporation (IWADCO) Profile • In 1986, Inpart Engineering started as a single proprietorship engaged in steel manufacturing • In 1997, it ventured into water supply distribution • In 2005, it registered with Securities & Exchange Commission (SEC) as a Corporation under the name Inpart Waterworks and Development Corporation • From 2005 to present, IWADCO is into Water Service Provision for the rural and urban poor.

8. Operation Constraints • Need for recognition • Regulation • Political Intervention • Financing Issues • Other concerns

9. Solution and Actions

10. Solution and Actions

11. IWADCO Project Sites Pangarap Village, located at the northern part of Manila, has an area of 156 acres, and population of ~4000 households. This is one of the unserved areas of the concessionaire because of the land ownership issue. At present, IWADCO serves more than half of the population. Others get their water supply from truck deliveries. IWADCO

12. IWADCO Project Sites These are the informal settlers of Erap Homes (named after the former president who owns the lot). They occupied the place claiming they were supporters of the former president. Although supply from the concessionaire is readily available, they cannot connect due to lack of documents (e.g., land titles). IWADCO

13. Conclusion • Consumers can experience improved services at a cost. • The poor can pay for water – they only need flexible terms. • SSWP’s can be viable partners of formal utilities, either on an interim basis or permanently, based on clear terms of engagement. • SSWP’s can fill the gap and reach the unserved segments of the population. IWADCO

14. Sanitation for the Poor

15. Gram Vikas • Gram Vikas, literally means “village development”, is an NGO working in Orissa, India. • By the end of March 2009, 44,697 families were assisted in 698 villages, reaching a population of over 240,000. • Most of the families are tribal and ‘dalit’ (untouchables) – poorest of the poor. • Under its Rural Health and Environment Programme, every household is provided with a toilet and bathroom, along with running water supply via an overhead water tank (at least 3 taps per household and 24 water supply).

16. Core Values • 100% Inclusion • All households must be involved in the development process and must benefit equitably. • Social Equity • Representation of all sections of the community in decision-making processes across caste, economic status and other barriers to ensure that a level playing field is created.

17. Core Values • Gender Equity • Equal representation and participation of men and women in community-level planning, decision-making and control. • Sustainability • Development processes have built-in institutional and financial mechanisms for sustainability, and are based on sound environmental values. • Collaborative action and cost sharing • Poor people can and will pay for beneficial development services, but there are some social costs which society at large must meet.

18. Actions Taken

19. Actions Taken

20. Actions Taken

21. Key factors for success • Strong awareness building and motivation for the community to transcend their personal, caste and gender differences and work together to achieve 100% sanitation and piped water coverage. • Participation of all households is a non-negotiable condition of the program. • Integrated approach to development • support for community mobilization, education, community health management, small-scale income generation activities and rural industries, disaster-proof housing, and community infrastructure, such as construction of access roads, biogas plants and compost tanks, check dams and diversion weirs.

22. Key factors for success • Sustainable and affordable financing • Collective decision of the village: 100% contribution of the community to the corpus fund on the basis of an average Rs1000 per HH. • Socialized structure: The poorest sectors of the community end up paying only what they can afford, and instead contribute in other ways – such as collecting raw materials or providing labor. Those who can afford pay more, and the rest of the community members organize ways to cover deficits. • The corpus fund is put in a local bank account, with the interest reserved for new families for the construction of toilet, bathroom and piped water supply.

23. Key factors for success • Mechanisms for continued operation and maintenance and repairs are in place: • Comprehensive 60-day training on masonry and operation and maintenance of facilities is required and given especially to the unskilled. • The village (mostly the women) manages a common fund from the income generated from fish culture and horticulture. • Capacity development for self-reliant and self-governing village institutions • Comprehensive hygiene and health education program

24. UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery ADB HQ, Manila, Philippines 19-20 April 2010 THANK YOU www.adb.org