An ONAS-AFTU2 initiative

1. Senegal – Increasing Access to On-site Sanitation An ONAS-AFTU2 initiative OBA Learning Event SDN Week February 27, 2008 Sylvie Debomy Sr. Urban Specialist AFTU2, World Bank

2. Sector Background • Low access to sanitation. More than 40% of the population of the Dakar region has no access to a proper sanitation system, the huge majority being among the poorest quintiles of income. • Lack of appropriate technical options. Conventional sewerage is neither technically nor economically feasible in most parts of many cities however, until recently on-site sanitation was not backed up by regulations nor by technical staff. • Limited public resources. The sanitation surcharge (US$0.10/m3) levied on water charge for the Sanitation Utility is insufficient to finance capital investments and operations. A tariff reform underway for end of 2008. • Challenges : To develop a clear oriented-result approach, expand the technical options available, involve small-scale contractors, develop community outreach and support services, develop matching grants mechanisms for demand based sanitation services. 2

3. The Long Term Water Supply ProjectSanitation Program for Peri-urban Communities of Dakar • US$81.3M LTWSP launched in 2001 to support WSS sector reform, of which US$28M for on-site and semi-collective systems. • More than 63,000 household sanitation facilities built between 2003 and 2006 (beyond the initial target of 60,000, two years ahead of schedule), 3 sludge treatment facilities, and 6 semi-collective sewers. More than 85,000 demands pending. • Package of 21 technical options available with attractive matching subsidy (between 24 and max 63$/cap depending on the options) and an important social intermediation support with development of access to microcredit. • Implemented by AGETIP (contract management agency), with OBA-type payment approaches, with small contractors for works and CBO for generation of demand, Hygiene Education and follow-up. 3

4. Structuring of IDA Project PLT Project Unit Validation And review of annual plans Monitoring Committee Technical and Financial reporting Monitoring/ Control Transmission of Annual plans and reporting Validation And review of annual plans ONAS Transmission of Investment projects and reporting Coordination Monitoring Review AGETIP Selection, Monitoring, Payment NGOs/CBOs Private Operators Engineering Works Training consulting firms Beneficiaries 4

5. Key stakeholders • Institutional Arrangements (Public-Private Partnership) • Process is facilitated by experience operators (AGETIP), CBOs, private contractors, and a committed government agency • ONAS Public Agency in charge of policy, planning and some control • AGETIP is a private contract management Agency with an incentive for cost reduction, subject to WB and Senegalese control (bi annual audits, reports, ISO 9000 certification) with a proven record of performance and approved manual of procedures (procurement) and short payment time – two days) • Private Contractors are Small-scale contractors selected on minimal technical quality and closely supervised by supervision consultant. • CBOs are trained and supervised by AGETIP, permanence on project depends on performance measured monthly, provide critical mediation and education services to ensure sustainability. 5

6. Performance and Outputs • The outputs of the project upon which the IDA subsidies are disbursed to AGETIP include: Advance for 4 month (based on the submission of a work program) and representing 20% of the delegated amount • AGETIP submit request for payment once the disbursed amount reach 30% of the advance. The DP amount reflect the number of facilities built, and intermediation activities carried and paid by AGETIP out minus an amount of 20%. The outputs are verified by ONAS sanitation utilities (the list of facilities provide by AGETIP including technical features and GPS positioning) before payment. • The outputs of the project upon which IDA subsidies are disbursed by to small contractors include: • Materials 40% • Certified installed facilities (with on-site verification) 50% • Retention payment for one year to ensure quality functioning of the facilities. 10% • The outputs of the project upon which IDA subsidies are disbursed by to CBO • Advance 20% • Performance indicators reached and verified by AGETIP and ONAS on a sample (nb of household visits, registered demand for facilities, Hygiene education sessions…) 6

7. GPOBA Pilot Scheme (1) • Approach: Build upon the WB successful experience regarding technology and implementation arrangements but bring innovation in terms of (i) incentives to reduce costs, (ii) efficiency of subsidy, (iii) control and disbursement mechanism • Objective and Geographical Targeting : Toreach about 15,000 peri-urban households in Dakar poor neighborhoods with a verified demand for on-site sanitation. • Expected Outputs: 1)Household on-site facilities only (no semi-collective sewer) 2) Improved efficiency of the subsidy mechanism (overall average reduction of 15%) • Available technology : Simple and environmentally safe options and technically proven 5 selected in a menu of 21 options to dispose grey and brown waters : (i) washing basin with soakway, (ii) shower with soakway, (ii) pour flush latrines, (iv) pour flush latrine with shower and (v) septic tank 7

8. GPOBA Pilot Scheme (2) • Sustainabilityhas been factored into the project design in several ways: • Subsidies are one-off investment subsidies, and not for consumption. • Importance has been attached to guaranty the affordability of facilities’ emptying, and enhancing maintenance, as well as improve the management of sludge treatment facilities. • Demand driven including user contribution (25%) • AGETIP proven record for sustainable projects • Scale up:Significant interest: Next IDA loan and PEPAM (MDG national program)? • GPOBA Scheme in progress: (i) Small scale entrepreneurs and CBO have been recruited for the first PIP programs. (ii) First PIP and request for advance sent to ONAS by AGETIP. (iii) ONAS has recruited technical auditor and (iv) AGETIP is fine tuning the baseline. 8

9. Structuring of GPOBA Project Independent Monitoring Agent Special Account ONAS GPOBA Implementation agreement Transmission of Investment projects and reporting AGETIP Coordination Monitoring Review Selection, Monitoring, Payment NGOs/CBOs Private Operators Engineering Works Consulting firm Beneficiaries 9

10. Challenges for an OBA scheme • Building trust : Convincing the public utility of the feasibility of this non-conventional scheme and Building confidence between Beneficiaries and public actors that the scheme will be effectively implemented • Defining the right contribution of beneficiaries (Estimated WTP/ effective CTP) and payment schedule. Buying power of low-income households has decreased. • Disbursement arrangement : Need the swift payment capacity of AGETIP to incite SSP to get involved and compete. Finding the right balance between small contracts and larger contracts to avoid costs implication. • Issue of the subsidy amount set in dollar in a FCFA (EURO) country. High depreciation of the USD. • High increase of cement price and problem of availability of intrans (a number of large priority government investments projects). • Finding the right consultants ! • Bringing on board world bank FMS and procurement staff. Aligning understanding and procedures. 10

11. Some outputs Shower+TCM TCM: Manual Discharge Toilet Shower+BALP Shower Toilet 11

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