Urban Sanitation Diagnostic Tool Nairobi october 2013

DELIVERING URBAN SANITATION AT SCALE A ROADMAP FOR DESIGNING URBAN SANITATION PROJECTS

Sophie Trémolet, October 15th, 2013, Nairobi

The urban sanitation challenge in low and middle income countries

A.

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Diverse urban sanitation challenges in SSA

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Urban sanitation : growing challenges

Rapid urbanisation. By 2030, 6 out of every 10 people will live in a city

Access gap is likely to grow in low income countries with rapid urbanisation

The existing infrastructure is insufficiently maintained and rapidly deteriorating (particularly in former Eastern Europe / MENA region)

Region Annual urban population growth (WB database, 2011)

World 2.11 %

Sub-Saharan Africa 3.92 %

Middle East & North Africa

2.43 %

East Asia & Pacific 2.60 %

South Asia 2.57 %

Latin America & Caribbean

1.49 %

OECD members 1.06 %

Low income 3.7 %

5

Insufficient sewerage charges – can barely cover operating charges and almost never

On-site sanitation markets are inefficiently structured and do not receive adequate support from the public sector In Dar Es Salaam, the Municipality spent only 0.3% of its

budget on on-site sanitation in 2009 to serve a population of about 1 million. 99% of public spending goes to sewerage, which served 10% of the population (WaterAid, 2013)

Currently, the vast majority of urban sanitation investments are funded through donor support, hence the need for strengthening the quality of those investments

Who is paying for urban sanitation?

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Donors’ commitments to sanitation went from 30% to 60% of total commitments to water sector in last two years

Donor allocations: a shift to sanitation?

2010 20110

500100015002000250030003500

Donors' commitment to WASH (USD millions) OECD DAC database

Sanitation (basic and large systems)Water (drinking water and large systems)

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Donors’ investments still largely in large sanitation systems – this share has been increasing in last 2 years (OECD data)

Ongoing emphasis on large systems

2010

2011

2010

2011

2010

2011

All Donors,

Total

DAC Countries,

Total

Multilat-eral, Total

0200400600800

10001200140016001800

Large sanitation systems

Basic sanitation

EIB / KFW / AFD Guidance document An overview

B.

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A joint initiative on urban sanitation

Joint initiative between EIB, KfW and AFD to collaborate on the design and implementation of urban sanitation projects, to share methods and lessons

Collectively these agencies are involved in the design and implementation of a variety of urban sanitation projects, at different scales and in different areas Through direct loans Jointly through the mutual reliance initiative With possibility of matching grant funds from the European Commission

They identified a lack of operational guidance documents for urban sanitation planning for governments and development banks Existing guidance often takes a micro-planning view of the market, some

of them at a community level “Master plans" produced by international consultants are often too

focused on large-scale infrastructure

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Guidance document - overview

Key features Objective: help formulate better decisions for designing

sanitation investments in urban areas in low and middle-income countries

Target audience: primarily aimed at governments and development banks designing urban sanitation investments

Integrated approach to urban sanitation: focus on “urban sanitation systems” Areas that make up the “urban continuum”, based on population

density criteria All types of sanitation (domestic use but also taking account of

industrial uses) Other related sectors (such as water) are to be dealt with in

conjunction

Sets out a roadmap for designing sanitation projects/programmes: Carry out a diagnostic of existing sanitation services in a

given area with urban characteristics Design sanitation interventions that tackle identified

challenges in a sustainable manner

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Learning from diverse experiences

Rural areas

Medium towns

Small towns

Capital city

Geographical Focus

Type of investments

Large sewerage systems/ infrastructure

On-site sanitationSoftware

Blantyre(Malawi )

Kisumu (Kenya)

Batumi (Georgia)

Ghana

ONAS (Tunisia)

Bizerte (Tunisia)

Large towns

Maseru (Lesotho)Kampala

Morocco

Both

EU city/regionalisation projectse.g. Portugal/Italy

Ouagadougou

Rwanda (Kigali)

Albania

Lilongwe

National level

Bamako (Mali)

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Some practical challenges

How do you get municipal governments to focus on addressing sanitation issues? E.g. in most EECCA countries, responsibilities for sanitation have

been devolved to local governments, which are grossly underfunded and under-prioritising sanitation

How do you select what to invest in? e.g. Kigali (Rwanda) has no sewerage system but needs are

primarily in the dense urban center to support economic growth: do you invest in sewerage or on-site sanitation systems?

How do you convince users to invest in sewerage connections, particularly when they have recently made investments in on-site sanitation solutions?

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A step-by-step roadmap

Step 1 - Diagnostic: What sanitation challenges can the project address?

Output 1 - Assessment report

1.5 Identify critical issues and prioritize interventions

1.1 Assess the policy, institutional and regulatory frameworks

1.2 Understand the demand side of the sanitation market

1.4 Understand current sector financing and assess financing needs

1.3 Understand the supply side of the sanitation market

What is the current sanitation situation in the project area?

Step 0 – Rapid Assessment and definition of project concept

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A step-by-step roadmap (2)

Step 2 – Design: What will the sanitation project do?2.1 Identify the appropriate geographical scope for the intervention

2.2 Define the project's activities, including technological and service provision options

Output 2 - Project design document

2.6 Identify and design any associated sector reforms

2.4 Define a sustainable financing strategy for the project’s activities

2.5 Set up institutional arrangements to implement the project

2.3 Identify the appropriate service provider(s) and the support they need

3.1 Draw up a budget and an investment, operation and financing plan

Step 3 – Implementation: How will the sanitation project be carried out?

Output 3 – Project documentation

3.3 Carry out an environmental and social impact assessment of the proposed options

3.2 Conduct the financial and economic analysis of the proposed activities

3.4 Define institutional & contractual arrangements, including procurement plan

3.5 Define a Monitoring and Evaluation framework

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The “toolbox” Two types of tools

Diagnostic/ analysis tools Information fiches on key thematic subjects

A few examples Analysis of key drivers for sanitation sector reform Spreadsheet for capturing key sanitation sector

characteristics and estimating flows by types of waste streams

Analysis of sanitation market structure and possibilities for reform

Ways to involve NGOs: sample TORs? Methodological “fact sheet” to conduct the economic

evaluation of sanitation investments

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Some key messages – Diagnostic phase Base the design of the project / programme on a

Master plan At national level, as in Albania (KfW project  ) At city-level (EIB in Kigali, AFD / KfW in Bamako) If such Master Plan does not already exist, identify sources of support for

its development

Where existing sewerage coverage is limited, combine network-based investments with investments in non-network systems In some cases network systems take precedence (Kigali) or

modest investments in on-site (Lesotho) Allocate funding for strengthening public development of on-site

sanitation systems (Bamako) Place exclusive focus on on-site sanitation (Ghana)

Understand current sector market structure and how reforms could be introduced: to reduce costs, improve efficiency or enable cross-subsidies

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Key messages – Design & implementation

Identify suitable partners based on a thorough institutional assessment To provide technical assistance and support: utilities can have a key role to

play in this area (Burundi) To support non-network interventions investments: EIB engaged NGOs in

Malawi (Water for People and WaterAid) to deliver services in urban slums To channel funding for microfinance: EIB and Gates Foundation to channel

funding to rural banks via ARB Apex Bank in Ghana

Involve multiple funding partners to blend financing Grant funds for capacity development or innovative aspects (Ghana) Loan funding from development banks (although repayment might be an issue

where there is no utility)

To build political will and support, provide performance-based financing and sequence investments once a number of milestones are reached Municipal service agreements (used by KfW in Serbia, Montenegro, Bosnia)

identify milestones to be met by municipalities to obtain further programmatic support

Performance-based financing for District Assemblies and stimuli for innovation (Ghana)

Do not neglect the “programme operational design phase” - this can be prove more complex in the context of an integrated sanitation project than a standard one

Using the tools: design of the SAWiSTRA programme in Ghana funded by EIB / AFD

C.

Ghana’s Sanitation Challenges

Sanitation coverage rate amongst the lowest in Sub-Saharan Africa

Prevalence of open defecation , shared toilets; no network solutions, no fecal sludge management

Decentralised sector with very limited capacities at local level

Evolving allocation of responsibilities with leading “facilitation institution” (CWSA) for small towns and rural areas

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EIB’s support for WASH in Ghana

Contribute to achieve MDG target for sanitation

Support government strategy for scaling up sustainable services in small towns / rural areas

Align with evolving institutional setup (increased decentralisation)

Ensure efficient implementation and long-term sustainability (focus on outcomes)

Support ongoing sector coordination activities

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Programme Concept - Objectives

Objective 1: Develop a programmatic approach to

implement sustainable WASH schemes at scale in small towns and rural areas

Align with ongoing sector development and support sector coordination

Objective 2: Increase access to water supply in rural areas and small towns

Objective 3: Increase access to sanitation in rural areas and small towns and build WASH facilities in schools, health centres and community toilet blocks as appropriate

Objective 4: Implement appropriate systems and build capacity to ensure Programme sustainability

Applying the diagnostic tool to identifyChallenges for design & implementation

National Strategy focused on “CLTS+” tailor implementation to different towns / communities

Evolving institutional setup balance decentralised decision-making with coordinated implementation at national level

Scaling-up identify appropriate sources of finance and ways to channel large amounts of finance to the appropriate beneficiaries

Ensure sustainable outcomes result-based financing and monitoring mechanisms

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Applying the diagnostic tool in Ghana

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Step 1 - Diagnostic: What sanitation challenges can the project address?

Output 1 - Assessment report

1.5 Critical issues: create political will at various levels of government, adopt a package of interventions implemented by different actors at different levels, facilitate involvement of communities, capitalise on existing institutional arrangements (CWSA), blend funding appropriately, identify financing channels

1.1 Policy / institutional assessment: • Strategy: Tailor CLTS + for specific needs• Decentralisation capacity challenges

1.2 Demand assessment: • Variety of situations between small towns

and rural areas

Most financing still channelled through CWSA, despite decentralisation policy

1.3 Supply analysis: Limited supply response, needs strengthening, no faecal sludge management

What is the current sanitation situation in the project area?

Step 0 – Rapid Assessment and definition of project concept: intervene in small towns and rural areas and implement new sector strategy

1.4 Sector Financing:

Step 1: Understanding needs to tailor activities

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Moving towards implementation 25

Step 2 – Design: What will the sanitation project do?

2.1 Decision to focus on small towns and rural areas

2.2 Support for on-site sanitation combined with (limited) facal sludge management

Output 2 - Project design document

2.6 No immediate sector reform needs were identified

2.4 Mix of financing sources, including support for household investment via microfinance

2.5 Rely on existing institutional arrangements

2.3 Mix of service providers: for planning, facilitation, design and implementation

3.1 Define budget, investment, operation and financing plan (appropriate fin. sources)

Step 3 – Implementation: How will the sanitation project be carried out?

Output 3 – Project documentation

3.3 Carry out an environmental and social impact assessment of the proposed options

3.2 Conduct the financial and economic analysis of the proposed activities

3.4 Define financial flows, institutional & contractual arrangements (procurement plan )

3.5 Define a Monitoring and Evaluation framework

Defining institutional setup -Balancing local vs. central actors’ roles26

Defining financial flows:Channeling financing to micro-actors27

Flexible enough to be applied across the value chain – applicability in rural areas / small towns

Can support phases of decision-making from project identification to design to implementation

Helped translate national strategy into practice and design tailored solutions

Helped identify interfaces to improve governance and implementation

Helped optimise funding, including result-based

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Lessons learned: How the Guidance document can help

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Next steps

Estimated publication date: early 2014 Ongoing learning process: much remains

to be learned in the optimal design of urban sanitation projects and programmes

30 Thank you for your attention!

[email protected]