October 2013 - William Kingdom, World Bank

2. National Workshop on Towards Universal Urban Sanitation in India Lessons from the Implementation and Roll out of NUSP Summary of Key Findings October 2013 - William Kingdom, World Bank

3. Objectives of the Study • Diagnostic review of delivery of urban sanitation • Policy and program analysis at national level • Analysis of state level programs, state sanitation strategies, Implementation Models for different segments of sanitation value chain • Status of NUSP implementation, key issues, challenges, gaps and areas of improvement in ULBs • Identification and evaluation of NUSP implementation approaches at states and ULBs • Possible Role of State Government ; effectiveness of State Sanitation Strategies and City Sanitation Plans • Options for supporting NUSP Implementation in the ULBs • Inferences for MoUD for accelerating implementation of NUSP • Inferences from state and ULB level implementation of NUSP • Level of implementation and organizational support that States and ULBs require from MoUD

4. Sanitation Service Delivery – A major area of concern in India

5. NUSP Implementation Reality : Key Facts and Figures • Total annual economic impact of inadequate household sanitation in India amounted to a loss of INR 2.4 trillion (US$ 53.8 billion) in 2006, i.e. equivalent to 6.4% of India’s GDP in 2006 • implying a per capita annual loss of INR 2,180 (US$ 48) • By investing in sanitation, India could gain US$ 32.6 billion/year(Rs.1.48 trillion) – a potential gain of US$29 (Rs.1, 321) per capita per year; • Huge market for sanitation goods and services - US$152 billion (Rs.6.87 trillion) over the 2007-2020 period; Source : Economic Impacts of Inadequate Sanitation in India • HPEC framework: Increasing investment in urban infrastructure from 0.7 per cent of GDP in 2011-12 to 1.1 per cent by 2031-32 • HPEC estimate of investments required over 20 yrs: • INR 2,426,880 Million over 2012-31 for sewerage (6% of total urban infra) => US$40 Billion or US$2 Billion/year

6. Review of JNNURM data • Level of allocation and utilisation significantly less compared to HPEC estimates for urban infrastructure (tot. approved cost/annum is 5% of HPEC annual requirements) • Utilisation (total) low at 58% • Utilisation within sewerage has gone in mostly for network extension; but no provision for transition considering high numbers of onsite sanitation systems (~ 45%) in urban;

7. Utilisation of JNNURM up to Sept 2012

8. NUSP Implementation Mechanism – Initial Years External Aid Agencies: WSP, USAID, ADB, GIZ, JICA etc. Other Central Ministries Technical Assistance NAGUS MoUD City Sanitation Plans City Sanitation Plans State Sanitation Strategy Urban Local Bodies State Governments MoUD played a central and pivotal role in initial years for familiarizing NUSP for implementation. This was necessary considering that all NUSP frameworks needed to be established at the state and city levels

9. State and City Selection Madhya Pradesh and Andhra Pradesh were selected, in consultation with MoUD and the six Cities were identified by the respective States State Selection – Madhya Pradesh has established the Integrated Urban Sanitation Program in 2009; Andhra Pradesh is in the process of finalising its State Sanitation Strategy and has undertaken several initiatives in the sanitation space City Selection –two criteria – CSP preparation and size of the city

10. NUSP Implementation Status at National and State levels : Summary of Key Findings

11. Snapshot of Implementation Challenges of CSPs

12. Need for pro-active State Government in supporting NUSP Help ULBs implement CSPs and accountable to achieve NUSP goals Provide access to finance for the Sector through a dedicated program for Sanitation Sector Strengthen Technical Capacity of State government by deploying a State Sanitation Unit Develop a Comprehensive State Sanitation Strategy Strategic Roadmap to support NUSP Implementation at the State level

13. Possible Future Supporting Actions at State and City Level (I)

14. Possible Future Supporting Actions at State and City Level (II)

15. Possible Financing Options for Program Based Intervention • As we move from Option 1 to Option 3, sectoral coverage increases and number of ULBs supported decreases. • The nature of reforms that can be introduced changes from simple to complex as we move from Option 1 to Option 3 • Not necessary to select one option; All combination of options can also be explored • It is assumed that 20% of fund will support soft interventions and 80% will support infrastructure investments under each of the options.

16. Suggestions for MoUD …. Continued catalytic support for NUSP Implementation Key Imperatives Key Strategies MoUD to continue to provide Strategic Direction to the States for NUSP implementation • Have a strong institutional support structure at MoUD for catalyzing NUSP implementation. • Co-ordinate with other ministries – related to planning for sanitation sector • Sustained and innovative measures for Capacity Building and Communication for behavior change • Mainstream sanitation in all central programs – Incorporate key frameworks of NUSP as conditions precedent • Create incentives for pro-active State governments Reorienting Financing for the Sector Enhancing Monitoring for the Sector • Setting up key milestones and targets for monitoring implementation progress & performance – drive for results Encourage Strong Role of the State Government • Continuous engagement with State governments • Create a recognition program for pro-active State governments & innovations • Create a platform for knowledge exchange – peer to peer learning

17. Summary • Investment not yet reflecting potential benefits from better sanitation • States and Cities taking tentative steps towards improved sanitation but not yet fully embracing the opportunity • MoUD successfully initiated NUSP but now needs to refocus on a stronger push for NUSP implementation – dedicated team • Implementation requires mix of advocacy, capacity support, and financial incentives

18. For more information on the study, please contact Soma Ghosh Moulik :sghoshmoulik@worldbank.org&William Kingdom : wkingdom@worldbank.orgThank You for your attention

19. ULBs face several and similar Challenges in supporting NUSP Implementation as before Social Institutional Human Capacity Related Legal and Regulatory Financial Technology Related Awareness Generation and Behavior Change Public-Private Partnership Others…

20. NUSP Implementation support Options: Recommendations

21. If Urban Sanitation is a national priority, it is all the more important to make NUSP work…..

22. SLB for sewerage sector at India levels for 2010-11

23. Mixed Status of Urban Sanitation : Madhya Pradesh and Andhra Pradesh and all India Average : Census of India 2011 Both the States have adopted different approaches to support NUSP Implementation and Urban Sanitation Sector.

24. Coverage of Sanitation services is low in all sub-sectors as against benchmarks defined by the SLB FrameworkNo clear difference in performance in cities that have adopted CSP VS Non CSP - early to show results. No CSP CSP