Technical Support to Liberia’s Water Supply and Sanitation Sector Investment Plan

1. Technical Support to Liberia’s Water Supply and Sanitation Sector Investment Plan Stakeholder Meeting – Consultation on TOR 9th of May 2012 Ministry of Public Works

2. Content • Objectives and scope of the TOR • Suggested Methodology and work plan • Introduction of the team • What is SIM? and UCET? • Issues for clarification • Next Steps SIP Inception Meeting

3. Objectives of TOR • Technical assistance to the Government of Liberia to develop a Water Supply and Sanitation Sector Investment Plan (WSS-SIP) and Model (WSS-SIM) • Done in collaboration with the ministries with responsibility for water supply and sanitation and in consultation with development partners SIP Inception Meeting

4. TOR - Scope of work Task 1: Review of available documentation Task 2: Urban WSS sector investment plan 2012-2017: A ground-up, facility-based investment plan of urban WSS infrastructure to reach Liberia’s WSS targets set in the PRS2 setting out rehabilitation, replacement and new facilities required - includes capital expenditure for both liquid and solid waste management. SIP Inception Meeting

5. Scope of work cont. Task 3: Rural WSS sector investment plan 2012-2017 : based on the water point mapping data to develop a ground-up, facility based investment plan setting out rehabilitation, replacement and new facilities required for the period 2012 to 2017 (incl. schools and health centres). Collaboration with the AfDB team on development of a NRWSS program Task 4: Costing of Technical Assistance to WSS sector capacity building: an investment plan for the essential TA to capacity building of the sector based on the capacity building plan to be developed by UNICEF and the AMCOW Country Status Overview on WSS SIP Inception Meeting

6. Scope of work cont. Task 5: Propose an appraisal mechanism for sector investments covering: • Alternatives considered • Estimates of costs and benefits for selected alternative • Preliminary design • Procurement plans and cash flow requirements • Risk, environmental, social and sustainability assessment The appraisal mechanism should include, the institutional home, official participation, project prioritization criteria. SIP Inception Meeting

7. Scope of work cont. Task 6: Develop a WSS Sector Investment Model 2012-2030 (WSS-SIM) that addresses the Liberia Rising 2030 vision WSS-SIM will support the appraisal and investment decision making process over the longer-term 2012-2030 period and enable policy makers to adjust investment requirements based on: • actual investments • changes to investment policy - the balance of competing prioritization criteria e.g. serving the un-served, economic returns, technology choice etc • sustainability of investments SIP Inception Meeting

8. Scope of work cont. Task 7: Refine existing sector costings to support inputs to the MTEF based on adapting and refining existing sector costings and linking to the outputs for the WSS-SIP and WSS-SIM. SIP Inception Meeting

9. Method - Process Phase I: Inception – agree on the process Phase II: Know the present - data collection and development of Planning Tools Phase III: Using the Planning tools to Prepare SIPs Phase IV: Consultation on Results and Finalising SIP Inception Meeting

10. Phase I - Inception • Consultation with key institutions (MLME, MPW, MOH, LISGIS, LWSC, MIA, MOP, MOF, NGOs) • Familiarisation field visits (Monrovia, Kakata, rural communities) • Stakeholder work shop • Inception Report (draft on Monday) • Comments to Inception Report • Finalising Inception Report and start assignment SIP Inception Meeting

11. Phase II – Know the present • Data collection: • Water Point Mapping • Planning, Feasibility and Design documentation for Urban WSS • Socio-economic data (LISGIS) • Data from implementers on present and planned activities • Input cost data - Unit Cost Estimating Tool (UCET) • Technology mix • Existing design standards and definitions • Documented as: • Town Profiles • County Profiles • UCET with Liberia costings • First version of SIM with appraisal mechanism and prioritisation criteria SIP Inception Meeting

12. Phase III – Using the Planning Tools • Prepare first draft Urban SIP 2017 • Describing and costing the specific town investments in water, sanitation and solid waste • Prepare first draft Rural SIP 2017 • Describing and costing the specific district investments in water and sanitation • Document the SIP 2030 • Providing an overview of investments to 2030 SIP Inception Meeting

13. Phase IV - Consultation on Results • Preparation of Draft Technical Assistance Plan – presentation and finalising • Training and support to continued use of the SIM • Recommendations on MTEF Planning Guidelines and Costings • Consultations on the results, adjusting, coaching in the use of the planning tools and finalising the outputs SIP Inception Meeting

14. Outline Work Plan SIP Inception Meeting

15. The Team from PEMconsult and Colan Consult • Jens: Jens Vad , Team-leader: planning and management of the assignment, contribute to modelling tools and technology and costing aspects • Mike: Mike Hutson, Specialist in water supply: development of urban and rural WSS Investment Plans • Kofi: Emmanuel Agyenim-Boateng, Specialist in sanitation, WQ and environmental aspects: urban investment plans on environmental sanitation and solid waste and rural WSS Plan on sanitation • Sixto:Sixto Requena, Specialist in public finance: assessment of sector finance, finance options for rural and urban WSS investment plans • William: William F. Acquah, Water Supply Planning and Design Specialist: contributing to rural and urban WSS investment plans on water supply aspects • KB:Kweku Bo Enchill, Municipal Finance Specialist: contributing to finance aspects of investment plans on detailed assessment of municipal finance options and capacities for managing water, sanitation and solid waste services • Doro: Dorothy Dux, GIS Specialist: design of links from planning tools to GIS, design of GIS layouts and training of staff in use of GIS Working closely with the SIP Task Force and WSP SIP Inception Meeting

16. SIM and UCET • Sector Investment Model (SIM): • Spreadsheet model with separate modules for rural water (per district), urban water (per town), rural sanitation, urban sanitation (incl sewerage) • Calculations based on input data (facts), technical variables (e.g. technology mix, unit costs) and policy variables (e.g. targets for coverage, subsidy policies, tariffs) • Outputs – estimates of investment requirements for new and rehabilitation of infrastructure and O&M and compare to available funding SIP Inception Meeting

17. Policy variables: Coverage targets, tariff policy, subsidy and pro-poor strategies, water demand management strategies Data on existing water and sanitation facilities (LWSC, Water Atlas) Sector Investment Model (SIM) for calculation of investment needs and financing gaps Analysis of Investments, viability and financing gaps for various policy variable scenarios Data on present and future population/ water users (LISGIS) Data on available resources (water and finance) Technical variables: unit cost of investments and O&M; design criteria and standards, effluent standards; financing cost data etc.

18. Financing Strategy Methodology Macro-economic forecast • Prices • Production/ Income • Public Revenues Change Demand Supply Existing Facilities and Situation • Targets • Level • year • Rules governing: • Public transfers • User charges • Private sector finance • Sources of Finance: • User Charges • Public budgets • Private fin. Inst. • Donors and IFIs • Expenditure forecast • Investment expenditure • O&M expenditure • Project available finance for • Investment expenditure • Recurring expenditure • Capacity Building etc • Change • Targets • “Rules” • Finance Sources Financing Gap SIP Inception Meeting

19. UCET - Unit Cost Estimating Tool Input Outputs Investment and O&M Cost of typical water and sanitation components Comparison with cost of completed projects • Cost of materials and labour inputs • Price Indexes • Data on completed projects (Cost, m3/day, year)

20. What are we using the models for? Input costs UCET Unit Cost Estimating Tool Project data for verification Unit costs for WSS Analysis of funding needs and incomes Population/ demand data SIM Sector Investment Model Existing Systems Tariffs, funding etc

21. Investment Planning and MTEF • The real aim of investment planning is to influence the funding allocations to the water sector => guide the MTEF budget allocations • Not a direct link – many other aspects affect the budget allocations – but the investment planning will help linking achievement of targets to budget allocations SIP Inception Meeting

22. Sector Investment Model Review of Policy variables: Up-date of Technical variables Update of Short-term Investment Programme – guidance to MTEF Update of Long-term strategic investment plan Up-date of Data Monitoring and Evaluation of Implementation of Investment Plan

23. Guiding Principles - Implementation • Decentralisation: Policy - sanitation and public utilities mentioned as responsibility of Counties and Districts • Private Sector: Implementation by Private Sector – cost efficient local private sector capacity only emerges if used consistently • Role of NGOs: maintain present implementation capacity – coordinated planning with local government authorities important • National Level Leadership: decision making structures for WASH sector defined in the board/ committee - need for implementation management structures? • Regulation: the proposed Commission – regulatory functions for service provision – and for water resources management (abstraction and discharge)/ environmental management SIP Inception Meeting

24. Pointers • Technical support/ capacity building needed from national level to counties and districts • need for private sector capacity building programmes? – drilling, hydro-geological surveys, HDW contractors, hand pump mechanics, spare parts supply chain, packages of work suitable for local contractors, supervision capacity etc • Role of NGOs as agents for capacity building? • Institutional anchor needed for national level planning (sector information systems, M&E) and management of technical support for implementation, overall financial management of funding SIP Inception Meeting

25. Guiding Principles – funding mechanism • Pool funding – one size fits all is probably not the most effective • Once-off large urban infrastructure investments most effectively managed through project modalities • Recurrent investments in small towns and rural infrastructure most effectively managed through common financing mechanism to local government • In the longer-term - alignment with County Development Fund SIP Inception Meeting

26. Pointers • Common Project Implementation Unit for large urban investments (concessional loans with full cost recovery from users) • Pool fund for investments in small towns and rural villages aligned with CDF procedures (grant funding with user contributions and payment of O&M costs) • Pool funding for technical support/ national planning and M&E functions (GOL funding and DP grants/ budget support) • Funding for NGO activities? How to combine the NGO role with GOL procurement procedures • Role of PPPs? SIP Inception Meeting

27. Issues • Rural – Urban boundaries: • Water Sector urban population (county capitals + towns > 5000): 1,381,000 persons • LISGIS urban population: (county capitals + towns > 2500): 1,634,000 persons • 250,000 persons in about 700 small towns (2,500 – 5,000 persons) or other urban communities (e.g. Careysburg 10,525 persons; Geyway 9,438 persons.) • Separate greater Monrovia from other towns? Different scale/ different involvement of local government authorities • Definition of service areas for piped systems: examples of Greater Monrovia and Kakata SIP Inception Meeting

28. LWSC Greater Monrovia Supply Area Built-up urban area Future LWSC Supply Area?? Greater Monrovia District Boundary SIP Inception Meeting

29. SIP Inception Meeting

30. National Monitoring: “Nominal Access” Purpose – Ease of consistent monitoring Water Points Selected protected source types 20 l/h/d and max. 1km distance Max 250 people/water point in WASH tech guidelines Sanitation Hygienic disposal technologies Shared latrines should not be included (as per JMP methodology)

31. Project Planning: “Use + Hygienic” Purpose - to achieve health and service benefits Water Points Safe sources: dug wells in Monrovia? Use & 20 l/h/d achieved if less than about 200m Max 250 people/water point Sanitation How to define a hygienic latrine Cleaning, maintenance and sludge disposal issues Personal hygiene practices eghandwashing

32. Comments SIP Inception Meeting

33. Help!!! Data from Implementers and DPs • Need cooperation from all implementers to get information on 5 year plans and budgets: • What is the present implementation capacity? • What are the indicative plans and budgets for the next 5 years? • Need to differentiate rural and urban and water and sanitation • Use the WASH Monitoring format or simplified format? SIP Inception Meeting

34. Next steps • Inception Report: • comments to report next week so that by the end of next week we have agreed the way forward • Meeting with Task Force (Thursday of Friday?) • Assistance to the data collection on activities and plans SIP Inception Meeting

35. Thank you