WSP FY11 15 Business Plan

8/9/2019 WSP FY11 15 Business Plan

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Table of Contents

I. Executive Summary .................................................................................................................................... 5

II. Managing for Results: A Focus on Outcomes .......................................................................................... 9

A. Scaling up Rural Sanitation and Hygiene ............................................................................................... 12

B. Creating Sustainable Services through Domestic Private Sector Participation (SS-DPSP) ................... 15

C. Supporting Poor-Inclusive WSS Sector Reform ..................................................................................... 18

D. Targeting the Urban Poor and Improving Services in Small Towns ...................................................... 21E. Mitigating And Adapting Water and Sanitation Service Delivery to Climate Change Impacts ............. 23

F. Delivering WSS Services in Fragile States ............................................................................................. 26

III. Knowledge and Strategic Partnerships ................................................................................................... 29

IV. Budget summary ....................................................................................................................................... 35

V. Regional and Country Strategies ............................................................................................................. 40

A. AFRICA REGIONAL STRATEGY ....................................................................................................... 41

Benin ........................................................................................................................................................... 47

Burkina Faso ............................................................................................................................................... 49

Democratic Republic of Congo (DRC) ....................................................................................................... 51

Ethiopia ....................................................................................................................................................... 53

Kenya .......................................................................................................................................................... 55

Mozambique ............................................................................................................................................... 57

Niger ........................................................................................................................................................... 59

Rwanda ....................................................................................................................................................... 60

Senegal ........................................................................................................................................................ 62

Tanzania ...................................................................................................................................................... 64

Uganda ........................................................................................................................................................ 65

Zambia ........................................................................................................................................................ 66

B. EAST ASIA AND PACIFIC REGIONAL STRATEGY ....................................................................... 67

Cambodia .................................................................................................................................................... 71

Indonesia ..................................................................................................................................................... 72Lao PDR ..................................................................................................................................................... 74

Philippines .................................................................................................................................................. 75

Vietnam ....................................................................................................................................................... 76

C. LATIN AMERICA AND THE CARIBBEAN REGIONAL STRATEGY ........................................... 78

Bolivia ......................................................................................................................................................... 83

Honduras ..................................................................................................................................................... 84

Nicaragua .................................................................................................................................................... 85

Peru ............................................................................................................................................................. 86

D. SOUTH ASIA REGIONAL STRATEGY .............................................................................................. 88

Bangladesh .................................................................................................................................................. 94

India ............................................................................................................................................................ 96

Pakistan ....................................................................................................................................................... 98

VI. Annex 1: The Water and Sanitation Program Global Results Framework: FY11 – FY15 ............. 100


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List of Tables:

Table 1: WSP’s Six Core Global Business Areas by Region and Country 8Table 2: Proposed Budget, FY11-FY15 (US$ millions) 35Table 3: WSP FY11-FY15 Budget Forecast by Country (US$ 000’s) 37 List of Figures:

Figure 1: WSP’s Global Results Framework: FY11-15 10Figure 2: Moving up the sanitation ladder through behavior change and consumer-responsive supply 12Figure 3: Beyond hygiene promotion 14Figure 4: Estimated Total Spending Required in Developing Countries to meet MDGs (2010-2014) 15Figure 5: Tiers of government responsible for water supply service provision 19Figure 6: Urban populations growing, widening the financing gap 21Figure 7: Indicative budget prioritization by Sector and WSP Global Outputs 35

List of Boxes:

Box 1: Scaling up Sanitation in East Java, Indonesia 13Box 2: Gender in the Water and Sanitation Program 14Box 3: Scaling up Private Sector Participation in Rural Water Supply in Senegal 17

Box 4: Urban Sanitation Policy in India 20Box 5: Supporting pro-poor components of infrastructure investment projects in Kenya 22Box 6: Managing Risks of Changing Climate Patterns in Peru 25Box 7: Fragile States: Building on Experience Working in Post-Conflict States 28Box 8: Economics of Sanitation 29Box 9: Building Capacity through Horizontal Learning in Bangladesh 30Box 10: Promoting aid harmonization and effectiveness through partnerships 34


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I. Executive Summary

“The impacts of water supply and sanitation do not stop at the tap. The provision of

these services strikes at the very core of the Bank’s mission – to reduce poverty.” 1

Ngozi Okonjo-Iweala, Managing Director, World Bank

The Water and Sanitation Program (WSP) is one of the longest running Global Programs and Partnershipsadministered by the World Bank to partner with UNDP, bilateral donors and private foundations. The objective

of the Program is to support governments scale up improved water supply and sanitation services and hygiene

programs for poor people. The Program achieves this by providing technical assistance, capacity building, and

leveraging knowledge and partnerships through its network of over 125 technical staff in 24 countries across

Africa, East Asia-Pacific, South Asia, and Latin America and the Caribbean.

The world is on track to meeting the water Millennium Development Goal (MDG) with 87% coverage

globally.2 Delving into this statistic, however, shows there are significant disparities in access and quality by

region, country, and spatial settings such as informal settlements, rural areas and small towns. Sanitation

presents a much more dire challenge with 2.6 billion people still without access to adequate sanitation. Sub-Saharan Africa lags behind on both targets, with access measured at 60% for water supply and 31% for safe

sanitation.3 The disparity between rural and urban areas is stark, with only 45% of the world’s population

living in rural areas using improved sanitation facilities, compared with 76% of the urban population4.

Increasing financing alone will not be enough to bridge these gaps. Many cities in developing countries do not

have 24-hour water supply and many peri-urban and informal settlement populations still rely on expensive

vendors or unsafe wells for drinking water. WSP’s experience in focus countries in East Asia, South Asia,

Africa, and Latin America confirms that supporting governments on efficient and effective asset management

is as critical and urgent as asset creation.

In 2008, WSP prepared a global strategy, “FY2009 – 2018: Scaling Up Sustainable Services,” whicharticulates this need and WSP’s proposed strategic response through capacity building, technical assistance and

knowledge. The strategy is built in the context of six evolving global trends that will increasingly affect the

design and provision of water and sanitation services and hygiene promotion to the world’s population in

coming years. These are: (i) Rapid urbanization in developing countries; (ii) Decentralization of service

delivery; (iii) Natural resource constraints in light of climate change and extreme weather patterns; (iv)

Reduction in global poverty but rising income inequality; (v) Increased private infrastructure investments in

emerging markets, in particular in Africa, South Asia, and the Middle East; and (vi) Changing aid architecture,

demonstrated by a marked increase in the average number of donors per country, from 12 in the 1960s to 33 in

the 2001-2005 period 5. Further exacerbating the challenge, World Bank estimates suggest up to an additional

245 million people may have fallen below the poverty line due to the combined impact of the financial, food price, and energy price crises.

1 World Bank Spring Meetings, April 20102 Joint Monitoring Report (2010).3 Joint Monitoring Report (2010).

4 WHO (2010). UN-water global annual assessment of sanitation and drinking-water (GLAAS) 2010: targeting resources for betterresults. Geneva, Switzerland, WHO. Available at: http://www.who.int/water_sanitation_health/glaas5 Global Monitoring Report (2008).


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In the face of these statistics, trends and global crises, WSP’s core mission of scaling up water and sanitation

services to poor people becomes even more critical. WSP is well positioned to respond to these challenges and

deliver results at scale by facilitating processes of change at the global, regional and country level, developing

partnerships and a knowledge base to shape sector dialogue and help target investments for equitable access to

Water Supply and Sanitation (WSS) services. Through this plan, WSP positions itself to focus on concrete,

measureable results in order to have a meaningful large-scale impact on services to the poor. At the same time,

WSP’s Results Framework and business model contributes to the changing context in which the World Bankand donors link technical assistance programs to concrete and measureable results.

The FY11-15 Business Plan reflects the program’s aspirations during the next five years to support

governments scale up improved water supply and sanitation services and hygiene programs for poor people. In

this business plan, WSP has identified six core global business areas where the program could have the best

opportunity to affect large-scale change in sector performance. These areas were identified through a process

of embedding a results-based framework throughout WSP’s country, regional, and global work programs,

within the context of recommendations in WSP’s External Evaluation (2004-2008), demand from clients, the

program’s comparative advantage, and the opportunity to strengthen partnerships in countries, regions, and

globally.

The global economic outlook for the next five years remains somewhat unpredictable. However, the needs of

developing country governments to ensure that the poorest populations receive basic services remain urgent.

This Business Plan presents WSP’s approach to help meet this need by distilling our global knowledge and

practical field-based experience on how to scale up services in core service areas. Despite an overall budget

reduction from FY11 onwards, WSP proposes increasing activities in two key areas of high demand from

client governments in this business plan: climate change and fragile states. Making progress in these two areas

requires an understanding of the technical issues and, perhaps more importantly, of the design of reforms and

institutional strengthening, and leadership in knowledge sharing around these topics. Each business area is

anchored with a focus of helping governments monitor for improved service provision to ensure sustainability,

make the best use of available resources, and inform sector planning. Assessing progress towards targets andreporting the results is vital and is an important step towards achieving the water and sanitation MDG targets.

All six core business areas will not be implemented in every WSP focus country. Specific activities at the

country and regional level are selected in accordance with client demand and WSP’s overall country strategy

and are reflected in the country strategies in Section V. The six core business areas are:

1. Scaling up rural sanitation and hygiene: 70% of the people who lack access to improved sanitation, or

almost 1.9 billion people, live in rural areas. Of this population, more than half practice open defecation.

Focusing on approaches to scale up rural sanitation for the poor is therefore critical to meeting the

sanitation MDG. Studies also show that hygienic behavior is a cost-effective way of reducing incidence of

diarrhea, providing strong evidence that integrating sanitation and hygiene promotion will help maximizethe health benefits from investments in infrastructure. In the next five years, WSP will scale up approaches

of stopping open defecation and marketing different sanitation options to reach up to 50 million people

depending on funding and country selection.


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2. Creating sustainable services through domestic private sector participation (SS-DPSP): It is

estimated that over US$36 billion will need to be invested each year to reach the water MDGs. 6 While a

similar magnitude of resources is needed to reach the MDGs in sanitation, the composition and the type of

spending is very different between the two sectors. Effectively managing and improving existing services

and infrastructure is as critical and urgent as asset creation. Tapping into the financial and technical

capacity of the domestic private sector is an important strategy to meeting these goals and can also be a

particularly effective way of reaching poor people. Through a global project to support the domestic private sector in water, sanitation, and hygiene, WSP will support client governments scale up the

technical and financial capacity of the domestic private sector to help an estimated 2.5 million poor people

gain sustained access to improved water supply and sanitation services and leverage over US$ 100 million

in investments by donors, governments and the domestic private sector.

3. Supporting poor-inclusive WSS sector reform: National policy and strategy is an important starting

point in mainstreaming the focus on poor people. Weak policies and institutions lead to weak service

standards, especially for the poor. There is growing recognition of the institutional weaknesses that

underlie low coverage rates and poor service quality, and that more finance and infrastructure alone will

not lead to improved services. The fundamental challenge is not one of fixing the pipes, but rather one of

“fixing the institutions that fix the pipes”. WSP will support poor-inclusive sector reform by working withnational and sub-national governments to develop pro-poor policies, strategies, and plans as well as define

institutional arrangements, design, and implement investment programs by providing evidence based

knowledge for reforming outdated strategies and policies.

4. Targeting the urban poor and improving services in small towns: An estimated one billion people

currently live in urban slums in developing countries. While many cities have improved coverage, they

also have low water quality, unreliable supply and distorted prices that burden consumers, especially the

poor. The challenges to provide sustained access to peri-urban and urban poor populations include working

with government agencies to develop poor-inclusive strategies and plans, with utilities to shift their focus

to the poor, and citizens to help decrease the barriers they face in obtaining basic services and to enablethem to demand the affordable, reliable and safe water and sanitation services they need. Service provision

in small towns, the intersection of rural and urban populations, poses additional challenges, as they are

faced with all the complexities of urban systems and the limited resources of rural systems. During the

next 5 years, WSP will support sub-national governments and public and private WSS providers target the

urban poor and improve services in small towns by developing pro-poor policies, guidelines, and models

for improved water supply in dense urban, peri-urban areas, and small towns.

5. Mitigating and adapting WSS delivery to climate change impacts: Developing countries are the least

equipped to respond to impacts of climate change today. Within these countries, however, the poorest

populations are even less equipped to mitigate these impacts on basic services such as water and sanitation

where existing deficits already exist. There is increasing demand by clients to help develop institutionalmechanisms and capacities, as well as help inform policies on climate-related impacts on water and

sanitation for the poor throughout WSP’s portfolio. As a first step, WSP will concentrate its efforts on the

management of risks surrounding existing natural events, climate vulnerability, and climate risks, to

6 Hutton, Guy and Jamie Bartram, Bulletin of the World Health Organization, January 2008, 86 (1).


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mainstream climate-smart WSS planning, conduct research, compile data and knowledge, harmonize

sector players, and build capacity of WSP clients and partners.

6. Delivering WSS services in fragile states: The countries at greatest risk of not meeting the MDGs are

fragile states. While emergency-relief and direct service delivery types of assistance are often available in

fragile states, donors increasingly recognize the need to sustain these services and have prioritized support

to build institutions, develop policies and strengthen capacity in fragile states. During the next five years,WSP proposes to address this in a systematic manner and scale up support to the extent possible and

contingent on resource availability.

Table 1: WSP’s Six Core Global Business Areas by Region and Country

1 The handwashing with soap project will end in FY122 The work in this area is highly contingent on additional funding commitments. Countries listed are for indicative purposes.

This document provides an overview of WSP’s global core business areas for FY11-15, globally, regionally,

and in each focus country. Sections I and II present an overview of WSP’s global priorities and key results for

FY11-15. Section III outlines WSP’s strategy for partnerships and leveraging knowledge. Section IV providesa budget summary and, finally, Section V provides detailed regional and country strategies for WSP regions

and focus countries.

LAC EAP AFR SAR

B o l i v i a

H o n d u r a s

N i c a r a g u a

P e r u

C a m b o d i a

I n d o n e s i a

L a o P D R

P h i l i p p i n e s

V i e t n a m

B e n i n

B u r k i n a F a s o

D R C

E t h i o p i a

K e n y a

M o z a m b i q u e

N i g e r

R w a n d a

S e n e g a l

T a n z a n i a

U g a n d a

Z a m b i a

B a n g l a d e s h

I n d i a

P a k i s t a n

Scaling up rural sanitation and hygiene x x x x x x x x x1 x x x x x x x x x

Creating Sustainable Services through DPSP x x x x x x x x x x x x x x x x x

Supporting poor‐inclusive WSS sector reform x x x x x x x x x x x x x x x x x x x

Targeting the urban poor and improving services in small towns x x x x x x x x x x x x x x x x x x

Mitigating and adapting WSS delivery to climate change impacts x x x x x x

Delivering WSS services in fragile states2 Haiti Timor LesteAngola, Burundi, DRC, Liberia, Sierra Leone,

Sudan, ZimbabweAfghanista


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II. Managing for Results: A Focus on Outcomes

WSP aspires to provide knowledge and technical assistance to support governments, partners and other

stakeholders overcome barriers to scaling up access to water and sanitation services. The Program’s

comparative advantage lies in leveraging this knowledge to improve the design and implementation of

government and community owned programs through its decentralized network of staff in every focus

country.

This Business Plan results from a two year process of sharpening and redefining WSP’s focus on its

contribution to the sector. In FY08, WSP initiated a strategic planning exercise to strengthen its business

planning and management processes and prepared the FY2009 – 2018 Global Strategy. The Strategy was

accompanied by a preliminary Results Framework to help measure the program’s effectiveness in

achieving the strategy. WSP used FY09 to test the results framework on the ground and develop a deeper

understanding of how the program could pursue results through global knowledge contribution and on the

ground in focus countries. In FY10, the Program refined the basic Results Framework and started rolling

out a comprehensive results strategy throughout its focus countries. This business plan more clearly

articulates WSPs theory of change and is focused on delivering measurable results, creating the

foundation for a robust performance monitoring and learning system. While WSP will continue to workwith all stakeholders and partners, its key clients to achieve results at scale will be governments.

WSP’s results architecture consists of 24 integrated country level results frameworks that are aggregated

into the global results framework. Each defines a chain of results and key performance indicators against

which progress will be monitored and reported. WSP’s global Results Framework lays out the Program’s

strategic direction for the next 5 years and defines the performance indicators that will form the basis of

the global monitoring and reporting system (see Annex 1). At the country level, each WSP focus country

has developed a Results Framework which captures the five year country strategy and aligns all of the

country interventions to one or more of the three Global Outputs.7 Within this integrated framework,

WSP country programs will be able to demonstrate direct contribution to one or more Global Output,

strengthening alignment and creating the basis for a more cohesive monitoring and reporting system forthe program as a whole. WSP’s Results Framework methodology is not only helping management

deepen WSP’s focus on results and strengthen the Program’s monitoring, evaluation and reporting

system, but is also contributing to the World Bank’s M&E reforms for Analytical And Advisory (AAA)

services and programs.

Governments in WSP’s focus countries differ in levels of political and administrative decentralization.

Decentralization of service decisions to local governments can be a positive signal, but many sub-national

governments lack the financial, managerial, and administrative capacities to handle these new

responsibilities. WSP’s Business Plan helps bridge these gaps by helping all levels of government scale

up improved water supply and sanitation services and hygiene programs for poor people. As such, WSP’s

Global Outputs are to strengthen (see Figure 1):

Policy and regulatory frameworks;

National, regional and local government capacity; and

Service provider capacity.

7 Country results frameworks will be available on the website when they are finalized


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By supporting these Outputs in each focus country, WSP can deliver its Intermediate Outcome to help

governments scale up water supply and sanitation services and hygiene programs for poor people. The

Intermediate Outcome contributes to the Outcome of poor people increasing the use of improved services

and, ultimately, has a measurable Impact on improving the household health and socio-economic status of

poor people.8 The Global Outputs reflect WSP’s comparative advantage, which is linked to three

important factors: (i) integrating global reach and generating local impacts; (iii) building and

strengthening effective partnerships; and (iii) developing and leveraging knowledge to shape dialogue and policy in the sector.

Figure 1: WSP’s Global Results Framework: FY11-15

Link to Business Plan: The Intermediate Outcome is tailored at the country level through specific time bound indicators. These are summarized into business areas at the regional level, which are ultimately

8 The Intermediate Outcome falls under WSP’s shared responsibility and is what WSP is responsible for delivering with ourclients through shared objectives, performance monitoring, and learning. WSP cannot be held solely accountable because itrequires someone or something else to change their behavior. Hence, it is a shared responsibility. WSP is accountable for theachievement of the Global Outputs and the Outputs that are implemented in each WSP focus country.

Impact:

Household health and socio‐economic

status of poor people improved.

Outcome:

Use of improved water supply and sanitation services, and

hygiene practices by poor people increased.

Global Output 1:

Policy and Regulatory Frameworks

Strengthened

Enabling policy and regulatory

frameworks to WSS for poor people

strengthened.

Global Output 2:

National, Regional and Local

Government Capacity Strengthened

National, regional and local

government capacity to design,

deliver, and monitor improved WSS

for poor people strengthened.

Global Output 3:

Service Provider Capacity

Strengthened

Service provider capacity to deliver

improved WSS for poor people

strengthened.

Intermediate Outcome:

Governments scale up improved water supply and sanitation services and hygiene programs for

poor people through public and private participants.

WSP’s six business areas to achieve this Intermediate Outcome in FY11‐15 will be:

• Scaling up rural sanitation and hygiene

• Creating sustainable services through domestic private sector participation (SS‐DPSP)

• Supporting poor‐inclusive WSS sector reform

• Targeting the urban poor and improving services in small towns

• Mitigating and adapting WSS delivery to climate change impacts

• Delivering WSS services in fragile states

Regional and Country Activities

Shared

Accountability


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summarized into the six core business areas at the global level. Country strategies in the Business Plan are

also based on the country results frameworks and indicate the core priorities for each country.

Link to FY09-18 Global Strategy: The results framework aligns with WSP’s FY09-18 Global Strategy,

including its country selection, which is based on three main criteria:

Countries that demonstrate the greatest need: determined by poverty and lack of institutional

capacity, such as fragile and post conflict states; Countries that demonstrate the greatest potential for reform: determined by the potential

“return on investment” of WSP’s presence in the country, political will, and potential value-

added, including complementarity with other donors;

Countries that demonstrate the greatest potential for learning: determined by the greatest

potential of knowledge transfer, for example from middle income countries to less developed

countries.

Working through the implications of this Results Framework throughout the Program has brought about

an awareness of some changes necessary in WSP's business planning structure and process:

Sequential Business Plan: In order to commit WSP to one set of results in a stated time period,

the Program proposes to move to a sequential business plan with annual updates on significant

changes to the program’s goals, results or focus countries.

5-year Business Plan time frame: The Program proposes to move into a five year business

planning time frame in order to capture higher level impacts and outcomes.

Annual Updates: Finally, while this is a five year business plan, the current rolling funding

structure of WSP’s donor support with individual donors on different funding cycles and differing

levels of predictability will mean that progress against the business plan must be reviewed and

updated each year with significant deviations in funding outlook for the remaining years of the

business plan period.

The following sections describe the six business areas and how WSP proposes to deliver its business planduring the next five years.


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A. Scaling up Rural Sanitation and Hygiene

In FY11-15, WSP will work with partners and stakeholders to scale up rural sanitation to

help up to 50 million people gain access to improved sanitation and leverage approximately

US $200 million from governments, private sector, and household over five years.

Of the 2.6 billion people that lack access to improved sanitation worldwide, almost 1.9 billion of themreside in rural areas. Of this group, almost one billion people practice open defecation. Focusing on

approaches to scale up rural sanitation for poor people is therefore critical to making significant progress

against the sanitation MDG target. In response to enormity of the sanitation challenge, WSP has

combined two types of interventions that

will reduce the incidence of open

defecation and enable households to

continue to move up the “sanitation ladder”

(see Figure 2): (i) community-led total

sanitation to stop open defecation and

stimulate demand for sanitation facilities

and best practices in behavior changecommunications; and (ii) social marketing

to reinforce demand and bolster supply of

sanitation products and services. The

integration of these interventions has

already proven to be a powerful

combination to scale up rural sanitation at national levels resulting in an estimated 6.5 million people

gaining access to improved sanitation in the last few years in India, Indonesia, and Tanzania. More

importantly, the experience and learning developed from these three countries will for a basis for scaling

up this approach within and outside WSP’s focus countries.

In the next five years, WSP will support the implementation of large-scale rural sanitation and hygiene

programs by:

Strengthening policies and regulatory frameworks by revising national and regional government

policies, defining/clarifying institutional roles, allocating budgets, adopting cost-effective approaches;

Building local government capacity in key areas such as triggering demand for sanitation, using

communications and social marketing techniques for sanitation and hygiene, M&E, training of

trainers, strategic planning;

Stimulating and strengthening local private sector capacity so that it recognizes sanitation and

hygiene as a viable business and provides consumer-responsive sanitation and hygiene products and

services, and related financial products for sanitation entrepreneurs and consumers alike; and

Integrating performance monitoring and learning through designing and operationalizing

performance monitoring systems and effectively capturing knowledge to feed into program

implementation and scaling up.

WSP will actively share lessons and tools, and promote collaboration, coordination and replication with

other WSP staff, World Bank operations, and development partners such as UNICEF, WaterAID, PLAN,

Figure 2: Moving up the sanitation ladder through behaviorchange and consumer-responsive supply

Cost

Improved

Latrines

Sewerage

Benefits

Community-led Total Sanitation Sanitation Marketing

WSPs Strategy: Total Sanitatio n and Sanitation Marketing (TSSM)

Open

Defecation

Unimproved /

Shared

Latrine

1 billion

defecate in

open(rural)

900 million use

unimproved/

shared latrines (rural)


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and multilateral and bilateral financing institutions in WSP focus countries as well as non-focus countries.

This will help replicate and scale up the TSSM approach further and, in so doing, will indirectly

contribute to significant increases in sustainable access to improved sanitation and open-defecation free

communities.

Box 1: Scaling up Sanitation in East Java, Indonesia

Over 600,000 people have gained access to improved

sanitation in East Java as a result of the TSSM project

which supports the national and local governments of 29

districts in this province. The total number of open-

defecation free (ODF) communities now stands at over

1,000. Access to sanitation facilities in Indonesia, at 52%, is

lower than other countries in the region at similar levels of

development. Open defecation is still practiced by over 60

million Indonesians. By 2015, WSP expects to support the

Government of Indonesia in helping 15 million people gain

access to sanitation by building on ongoing work in East

Java.

East Java’s progress in improving sanitation access was due to:

National government enabling environment: The 2008 National Community-Led Total Sanitation Strategy

issued by the Ministry of Health paved the way for a comprehensive approach to scale up rural sanitation. This

included triggering behavior change to create demand, abolishing household subsidies for latrines, and

integrating handwashing with soap programs. In 2010 the Government included a performance target in its 2010-

2014 Medium-Term Development Plan to achieve an open defecation free Indonesia by 2014.

Local government ownership: Involving local governments is critical to this process. District governments in

East Java are scaling up the TSSM approach with their own funds. In 2009, US$470,000 was provided by the

districts to extend the triggering process to over 2,300 communities in 29 districts.

Emerging sanitation market: Following provider training based on market research results, the local privatesector is expanding the range of affordable and consumer- responsive sanitation products and services, providing

upgradable latrine models that are within low income consumers’ ability and willingness to pay.

Collaborating closely with partners: To move from one province to national scale, WSP will collaborate with a

range of partners, directly and via Government mechanisms, to leverage scale up potential. This includes direct

support to large-scale World Bank, ADB and UNICEF projects; collaboration with IFC on developing alternative

business and financing models for suppliers and consumers in the nascent sanitation market; and indirect support

via knowledge and learning sharing for Government-run community-driven development programs.

Integrating hygiene promotion in sanitation interventions: Diarrhea, often spread through poor hygiene

and sanitation, is the second leading cause of deaths among children under 5, killing about 1.5 million a

year. World Bank reports show that improved hygiene practice is one of the most cost effective ways of

preventing diarrhea, where the cost of averting one Disability Adjusted Life Years (DALYs) is only US$3

through hygiene promotion and US$11 through sanitation.9 Moreover, efforts to increase access to

sanitation and hygiene not only advance progress towards MDG 7 for sanitation, but also to a reduction in

child mortality (MDG 4) and malnutrition (MDG1). Activities in sanitation provide a natural entry point

9 See Disease Control Priorities in Developing Countries (2nd Edition). World Bank, 2006.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Jun

'08

Dec

'08

Jun '

09

Dec

'09

Jun

'10

Dec

'10

# o f p e o p l e g a i n i n g a c c e s s t o

i m p r o v e d s a n i t a t i o n

Source: TSSM Project

Dec '09

Dec '10

WSP Monitoring Data

End of Project Target


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Ministry

of Health

Ministry of Water

Ministry of

Education

Ministry of Rural

Development

National

Local

Community

Places of

WorshipHealth

CentersHouseholds

Schools

Government

Authoriti esPrivate sector

Individual

CBOs

Figure 3: Beyond hygiene promotion

to integrate hygiene with sanitation in a systematic manner. WSP will seek to integrate hygiene promotion

in sanitation interventions in focus countries and beyond by:

Leveraging World Bank operations: The

World Bank continues to play a prominent

role in supporting and financing reforms in

water, sanitation, health, and educationsectors. While WSP has partnered with Bank

operations as opportunities arise, WSP will

seek to move towards a more programmatic

support and collaboration on hygiene with

World Bank operations in FY11-15.

Building on global/in-country partnerships

and initiatives: WSP support to trigger

behavior change will continue to target

stakeholders at the national, local,

community, household, and individual level

(see Figure 3). WSP has been actively engaged in developing partnerships to support handwashing

within other sanitation and water interventions. These partnerships have institutionalized hygiene

behavioral change methodologies and allocate resources to the process. Common areas of public and

private investment include capacity building, handwashing stations, monitoring and impact evaluation.

Box 2: Gender in the Water and Sanitation Program

Beyond scaling up WSS services, WSP aims to reduce poverty and inequalities within society and prevent

conscious or unconscious discriminatory practices that hinder the wider development agenda. WSP embraces the

importance of prioritizing and mainstreaming a gender approach that supports the participation of women in particular, recognizing their key role in the supply and management of water and sanitation services.

At the national policy level, WSP provides gender analysis to inform sector policy formulation, helps articulate

specific gender objectives in sector policy documents, and develops gender-responsive recruitment policies to

promote equal representation at all levels.

At the operational level, WSP helps strengthen local government and service provider capacity to shape the

sector’s engagement with communities by helping them develop institutional policies and strategies that address

gender throughout their project cycles of planning, design, budgeting, implementation, monitoring and evaluation.

To do this, institutions need to embrace internal reform, adopt gender assessment and analysis tools, participatory

approaches and communication strategies to implement and monitor that their interventions engage and benefit

men, women and special groups.


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B. Creating Sustainable Services through Domestic Private Sector Participation (SS-DPSP)

WSP will support client governments scale up the technical and financial capacity of the

domestic private sector to help 2.5 million poor people gain sustained access to improved

water supply and sanitation services and leverage over US$ 100 million in investments by

donors, governments and the private sector.

It is estimated that an additional US$ 36 billion is

needed between 2005 and 2014 to reach MDGs in

water (see Figure 4).10 While a similar magnitude

of resources is needed to reach MDGs in

sanitation, the composition, and the type of

spending is very different between the two

sectors. In water, the issue is how to provide

sustained access to water to those who may have

access but where service quality is intermittent or

poor, while in sanitation, there is a great need to

expand services. Tapping into the technical andfinancial capacity of the financial sector is an

important strategy to bridging these gaps.

In the 1990s and the beginning of the 2000s,

private sector participation was associated with

the expansion of large international firms in the

developing country water supply market, from infrastructure financing to distribution of water to the

consumers. In the last few years, there has been a trend towards domestic private sector participation

from local firms, entrepreneurs, commercially-oriented community-based organizations and cooperatives,

such as women’s and youth groups, in the delivery and financing of WSS services.

WSP recently consolidated its strategy to continue and expand its engagement with the domestic private

sector in the next five years. SS-DPSP focus countries include: Kenya, Mozambique, Rwanda, Senegal,

Uganda, Cambodia, Philippines, Nicaragua, Peru, Bangladesh and India. In addition to the SS-DPSP

focus countries, WSP will support the domestic private sector in several other countries including Benin,

Burkina Faso, Cambodia, Democratic Republic of Congo, Indonesia, Lao PDR, and Mali, where

engaging with the domestic private sector is critical to moving the sector forward. The types of

interventions will include:

Developing and sustaining local PSP: WSP will support domestic private sector participation

through innovative local Public-Private Partnerships (PPP) approaches by building capacity of

governments and private providers to enter and sustain PPPs, designing sustainable models for PPPsfor both water and sanitation services, helping governments develop oversight mechanisms for

monitoring of services, and ensuring customer feedback channels to improve service provision. Work

will be carried out in partnership with organizations such as AfDB, AfD, IFC, PPIAF, World Bank,

and others. Complementing WSP’s focus on service provision to the poor and building the demand

10 Hutton, Guy and Jamie Bartram, Bulletin of the World Health Organization, January 2008, 86 (1).

Figure 4: Estimated Total Spending Required inDeveloping Countries to meet MDGs (2010-2014)

Source: Hutton, Guy and Jamie Bartram, Bulletin of the World Health

Organization, January 2008, 86 (1)

0

5

10

15

20

25

30

35

40

Water Sanitation

i n U S $

b i l l i o n s

New Coverage Maintenance


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for quality service provision, WSP has found that demand for private sector provision can sometimes

be best tapped in rural communities and slum areas, where there is often greater self reliance and the

cost of service provision is often highest. The short and direct line of accountability between supplier

and consumer serves to mitigate some of the challenges of revenue collection and governance that

have hampered large scale PPP initiatives.

Strengthening local sanitation markets: Improving rural sanitation is critical to meeting thesanitation MDG goal. In many WSP focus countries, however, even if there is demand for sanitation

products, the capacity to develop, market and sell the products is weak. WSP supports the

development of sustainable sanitation markets through a combination of behavior change and social

marketing approaches, as exemplified by the TSSM initiative. In addition, in Latin America, market

forces are being channeled to create altogether new sanitation markets that benefit poor households

that do not have easy access to financing or hardware. Supply-side sanitation marketing initiatives

will form a significant part of SS-DPSP’s approach for the sanitation sector in FY11-15. In

Cambodia, for example, WSP focused on designing a sanitation product catering to lower income

households. In FY11-15, WSP will focus on sanitation marketing by building on the pilot experience,

while collaborating with other organizations such as the Ministry of Rural Development, UNICEF

and Plan International to trigger demand to stop open defecation. Other countries where sanitation

marketing will be a major focus include Bangladesh, Indonesia, Nicaragua, and Peru.

Strengthening service provider capacity: In addition, WSP will also work with both private and

public providers to improve technical as well as managerial capacity for them to invest more in poor-

inclusive service provision, particularly through market-based financing. Although financial

institutions have shown interest in financing infrastructure, few transactions have occurred in the

water and sanitation sector. Many lenders perceive the sector as high risk, and the lack of transparent

data and robust sector analysis only adds to their concerns. Public finance schemes can also crowd out

market financiers and create disincentives for service providers to seek private finance. Service

providers are often unaware of the technical assistance and financial products that are available, andare not equipped to develop credible business plans, prepare proposals and negotiate financing. WSP

will engage with partner institutions such as AfDB, IFC, PPIAF, and USAID to help water providers

access local market-based finance.

Anchoring all three types of activities, WSP will also support governments establish and implement

monitoring systems to improve resource allocation and service provision. Systematic monitoring is

needed to improve resource allocation and will be an important step towards achieving the water and

sanitation MDG targets. To this end, WSP has developed a series of instruments to establish benchmark

standards and monitor progress across participating countries, states, cities or villages. International

Benchmarking Network of Water and Wastewater Utilities (IBNET), for example, is the largest public

database that provides utilities and sector stakeholders with performance data from nearly 2,600 utilities

in 110 countries. IBNET has been able to help develop standard indicators and maintain data to help

WSP’s client governments efficiently allocate financial resources and develop sector improvement

programs that address water and wastewater services for all consumers including the poor.


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The process of benchmarking encourages peer monitoring and allows for WSP initiatives to be leveraged

geographically and across time. A standard established for one city or state can be replicated while

deviations in performance over time give an early warning that sector reforms may be flagging.

Supporting performance benchmarking also helps re-orient the focus from infrastructure creation to

service provision. It provides a solid basis for future service delivery improvements through the design

and implementation of performance improvement plans, which includes investments and capacity

building needs, as well as the establishment of performance-based contracts between governments andutility managers. In general, WSP has supported this kind of work among larger service providers, but in

the next few years, it will support performance benchmarking of smaller providers, particularly the local

private sector.

Box 3: Scaling up Private Sector Participation in Rural Water Supply in Senegal

Senegal is on track to reach the water MDG target of 82 % by 2015, but

challenges remain in terms of maintaining existing water supply

infrastructure. The rural population is served mainly through multi-village

schemes using an estimated 1,200 motorized boreholes throughout thecountry. WSP is engaging the domestic private sector to help increase the

sustainability of these rural water supply schemes:

Local PPP for maintenance and management of boreholes: The

government of Senegal will transfer the maintenance of all motorized

boreholes of the central areas to the private sector in 2010. WSP is

providing technical support to design a performance contract between a private firm and local user associations.

This intervention will increase the rate of functioning boreholes from a national average of 80 % to close to 100 %.

WSP will also help delegate the management of these systems to the private sector, with 10% of water associations

expected to contract out the management of their systems by 2015.

Performance monitoring: WSP supported the development of a mobile technology platform to facilitate

monitoring from the district to the national level. It is operated as a third party service provided by a specialized

local firm (e.g. Manobi SA in Senegal) using mobile-2-web technology and relies on an online database. This

approach has already been replicated in Benin and Burkina Faso.


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C. Supporting Poor-Inclusive WSS Sector Reform

WSP will support poor-inclusive sector reform by working with national and sub-national

governments to develop pro-poor policies, strategies, and plans as well as define institutional

arrangements, design, and implement investment programs by providing evidence-based

knowledge for reforming outdated strategies and policies.

National policy and strategy is an important starting point in mainstreaming the focus on poor people.

Weak policies and institutions lead to weak service standards, especially for poor people. There is

growing recognition of the institutional weaknesses that underlie low coverage rates and poor service

quality, and that more finance and infrastructure alone will not lead to improved services. The

fundamental challenge is not one of fixing the pipes, but rather one of ‘fixing the institutions that fix the

pipes’. Improved water and sanitation services for the poor cannot be separated from the accountability of

the water sector institutions and the broader workings of government. The provision of basic services,

including safe water and sanitation, is seen to be a cornerstone of a functional state. In certain countries,

particularly fragile states, there is a lack of clarity in institutional mandates, structures, roles and

capacities to provide improved WSS services. Change is slow, because both service providers andconsumers have come to accept the traditionally poor level of services despite the serious public health,

environmental and economic implications. Reforms require appropriate institutional frameworks and

should encourage increased sector financing through better management, budget allocation, and the use of

markets to leverage private-sector capital.

WSP’s approach is to address both the vertical chains of reform in policy, accountability, technical

capacity and resource allocation as well as the horizontal framework of coordination, learning and

cooperation so that local governments and communities receive timely and adequate resources and

capacity development support to implement programs that are aligned with national priorities to ensure

access to safe water and sanitation. This approach is complemented by a focus on citizen engagement forsocial accountability to enhance transparency, equity and accountability. WSP seeks to bring regional and

global experience to integrate bottom-up accountability with top-down planning addressing transparency

and equity through continuous engagement with all tiers of government.

In many WSP focus countries the service provision function of the water supply and sanitation subject

has been devolved to local governments (see Figure 5). WSP works with central, provincial and local

government tiers to strengthen the accountability of sector institutions for policy, service provision and

regulation. While decentralization brings new opportunities it also presents significant challenges.

Decentralization brings decision making closer to the people and can empower citizens to demand

improved services from local providers. Decentralization can also present significant challenges due to

the lack of technical capacity of local governments and local service providers (technical capacity must bedevolved as well as responsibility). As a result, there is a huge demand for technical assistance on service

sustainability tied to sector governance and the overarching institutional and accountability frameworks.

In this context, WSP works with sector stakeholders at multiple levels to assist in clarifying roles and

addressing these capacity constraints.


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Although sector reform policies have been put

into place in some WSP focus countries,

progress in implementing these policies has

been slow due to a combination of factors that

differ from country-to-country. These often

include weak local capacity, a lack of

appropriate institutional frameworks, and alack of support for sector reform from critical

constituencies of stakeholders. WSP links

support at the national level with interventions

at the local level to close the gap between

national policies and actual implementation.

WSP will further leverage this experience by

sharing knowledge and coordinating country

sector players to sharpen their focus on the poor.

An important component of this work stream is the “demand side” of good governance to strengthen the

voice and capacity of citizens, including the poor, to demand greater accountability and responsivenessfrom public officials and service providers. Initiatives such as participatory budgeting, social audits,

citizen report cards, and community score cards involve citizens in the oversight of government. WSP has

also been seeking to strengthen capacity at local governments through partnerships with national training

institutions that have excellent infrastructure but lack technical capacity. South-south learning, or

exchanges across countries and regions, has facilitated the uptake of best practices at the local level.

Specific support will include:

Developing an evidence base for reform: Developing and disseminating key evidence-based

knowledge can help bring the often neglected WSS agenda to the attention of national decision

makers. WSP’s Economics of Sanitation Initiative (ESI), for example, provides decision-makers atthe country and regional level with evidence for increased investments in improving sanitation. In

Indonesia, ESI gained critical traction where the results contributed to ministerial commitments to

increase investments in urban sanitation in over 300 cities by 2014.

Revising national policies and strategies for WSS: National policy and strategy is an important

starting point in mainstreaming the focus on poor people. It is at this level that the government can

indicate priorities and form the basis for local government and other stakeholders to develop

strategies and allocate resources.

Defining institutional arrangements: In the current institutional structure the functions of policy

making, oversight, and service provision are not clearly delineated, and lead to conflicting objectives,

political interference and lack of incentives and accountability. WSP will work with both existing and

new sector institutions to better clarify institutional arrangements, particularly with regards to

functions such as planning, financing, regulation and oversight, etc.

Increasing budget allocations and other financing to WSS services: An explicit output in FY11-15

will be to help increase funding to the WSS sector and improve finance streams for sustainable WSS

services. This is closely linked to all of WSP’s results areas, but depends heavily on improving

monitoring and linking financing to performance.

Figure 5: Tiers of government responsible for watersupply service provision

Source: Key Topics in Public Water Utility Reforms', by Van Ginneken and

Kingdom in 2008

MunicipalProvincial

National + ProvincialNational + Municipal Provincial + Municipal

National


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Monitoring and Benchmarking: During FY11-15, WSP’s focus will be on increasing the use of

monitoring systems at the national and decentralized levels for sector programming, budget

allocation, monitoring and reporting on access to services by poor people. The approach will differ in

each region. In Benin and Senegal, for example, WSP will work with the government to use improved

Sector Information and Monitoring Systems (SIMS) to monitor WSS performance, increase the rate

of functional motorized boreholes, and to update the annual inventory. In India, WSP is working with

the Ministry of Urban Development in the implementation of a scheme for rating the standards ofsanitation for 423 major cities against 19 indicators covering process, outputs and outcomes, guiding

the preparation of city sanitation plans to lift underperforming cities to a higher standard.

Box 4: Urban Sanitation Policy in India

WSP’s work rolling out the National Urban Sanitation Policy in Madhya Pradesh helped provide incentives in the

program to for cities to reach un-served and poor people with their sanitation strategies and investments.

According to the 2001 census, 50 million people in urban areas do not have access to sanitation and more than 80%

of surface water pollution is attributed to municipal sewage. In order to develop a National Urban Sanitation Policy

that would meet this need for improved sanitation the Government of India began a consultative process in 2004with the support of WSP, and the National Policy was launched in 2008.

From policy development to implementation: The Ministry of Urban Development has set a target of four state

strategies and 50 city sanitation plans to be developed by the end of FY10. In response, WSP helped rollout the

policy through states and cities: several states such as Maharashtra, West Bengal and Madhya Pradesh have started

developing state sanitation strategies. WSP helped the Government of Madhya Pradesh launch their Integrated

Urban Sanitation Program which aims to promote open defecation free cities and sustainable treatment and

disposal of all wastes.

To promote competition between cities to improve their sanitation, the government initiated a rating and awards

scheme that specifically targets poor people by weighing the rating significantly towards the ODF rating, which

affects mainly poor people. The ratings measures output (9 indicators; max of 50 points), process (7 indicators;max of 30 points) and outcomes (3 indicators; max of 20 points). Amongst all these indicators and points, ODF

status has been assigned 16 points, which is more than any other indicator. This is in conformity with the national

policy which identifies "reaching the un-served and the poor" and "community planned and managed facilities" as

priorities and key goals. Over 400 cities are currently participating in the scheme, which will be extended to the

remaining urban centers.


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0

1

2

3

4

5

6

7

8

9

P o p u l a

t i o n ,

b i l l i o n s

Rural

Urban

Global Population

D. Targeting the Urban Poor and Improving Services in Small Towns

WSP will support national and sub-national governments and public and private service

providers target the urban poor and improve services in small towns by developing pro-poor

policies, guidelines, and models for improved water supply in dense urban and peri-urban

areas and small towns.

Targeting the urban poor: The impact of service gaps is felt

most acutely by the poor. Rapidly urbanizing populations in

Asia, which is expected to double its urban population by

2030, and Africa, where the urban population quadrupled

between 1971 and 2001, have fueled growth, but are straining

the provision of services in dense slum areas and fringe

areas around cities, and towns where service provision is

challenging. An estimated one billion people currently live in

urban slums in developing countries, with many people

relying on expensive and unsafe water sources and low-quality latrines. Typical of South and East Asia, in

Bangladesh, only three cities have water and sanitation

authorities and no public sewerage system exists outside of

Dhaka. Despite the overwhelming reliance on on-site

sanitation systems there is little systematic management of

fecal sludge or solid and liquid waste, nor cleaning of storm

water drains and canals.

Improving services in small towns: The World Development Report 2009 highlights small towns as

having a central role in social and economic development by supporting lagging rural areas and easing thestress on urban slums. Yet, despite these benefits, water supply and sanitation services are too often

neglected. Service provision in small towns, the intersection of rural and urban populations, poses

additional challenges as they are faced with all the complexities of urban systems and the limited

resources of rural systems. Decentralization has numerous benefits, but local government often lack

adequate financial, institutional, managerial and technical capacities to take on these new responsibilities.

In order to scale up access in small towns, local planning and accountability in service provision needs to

be incorporated into broader policy approaches and institutional and fiscal frameworks tailored

specifically to the needs of small towns, and be supported by appropriate regulation and coordination

within the sector.

WSP’s strategy in urban, peri-urban, and small town settings will include:

Developing poor-inclusive local WSS strategies and plans: Even when there are national WSS

policies in place, there is usually a gap between national sector reforms and actual implementation at

the local level. WSP will work with government agencies and utilities to develop poor-inclusive

Figure 6: Urban populations growing,

widening the financing gap

Source: World Development Indicators; World Bank

estimates


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strategies and plans, including pro-poor investment strategies or testing service delivery models

aimed at the poorer segments of urban populations.

Improving service provider capacity: WSP will strengthen the technical and management capacity of

service providers to enable targeted investments for poor-inclusive service provision. This would

include strengthening existing utility operations and/or exploring alternative service delivery models,

such as partnering with the domestic private sector in peri-urban areas and small towns.

Building monitoring and oversight arrangements: One of the ways for promoting improved provider performance in the sector is through strengthening monitoring and oversight arrangements,

such as service level benchmarking, that take into account consumer needs and complaints and

establish feedback channels between the users of WSS services and providers. This involves helping

providers develop communication strategies or regulatory agencies build decentralized monitoring

and oversight systems through local governments and civil society groups. Service provider

benchmarking also helps re-orient the focus from infrastructure creation to service provision. It also

provides a solid basis for future service delivery improvements through the design and

implementation of performance improvement plans, which includes investments and capacity

building needs, as well as the establishment of performance-based contracts between governments

and utility managers. WSP has supported this kind of work among larger service providers using

tools like IBNET, but in the next few years, it will support performance benchmarking of smaller

providers, particularly the local private sector.

Box 5: Supporting pro-poor components of infrastructure investment projects in Kenya

Large investments in the 1980s and 1990s did not result in efficient and sustainable service provision in Kenya.

The failure of many WSS utilities to deliver adequate services disproportionately impacted poor households in

informal settlements. This resulted in heavy reliance on alternative and in some cases, unsafe water supply sources

obtained at a much higher cost compared to piped water provided directly by the utilities.

WSP will support improved access to basic infrastructure

services especially in urban informal settlements through WaterServices Boards, Water Services Providers, and the Ministry of

Public Health and Sanitation by scaling up models on

improving access through privately and community operated

public toilets and water systems and delegated management

models through large-scale investment projects. Attention will

also be given to mechanisms that support the participation and

voice of the poor and promote gender equity and inclusion in

the sector at all levels.

Link to large-scale investment projects: WSP has been

requested to provide technical assistance (TA) and oversee the

implementation of investments totaling over US$ 100 million in Kenya’s informal settlements, with TA activitiesranging from mapping of informal settlements, surveys, and design and implementation of service delivery models.

The main investments include: Water Supply and Sanitation Improvement Project (WaSSIP) funded by the World

Bank, Coast Region Water and Sanitation Services Improvement Program (CRWSSIP) funded by AFD and

Nairobi Informal Settlements Water and Sanitation Improvement Program (NISWSIP) funded by the EU water

facility. WSP’s support to the implementation of pro poor components of investment projects in informal

settlements will be closely aligned to its TA on poor-inclusive WSS policy and strategy reform.


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E. Mitigating And Adapting Water and Sanitation Service Delivery to Climate Change Impacts

WSP will concentrate its efforts to help governments mainstream climate change impacts into

ongoing programs by developing and implementing climate change adaptation and disaster

risk management approaches for the water and sanitation sector.

Many World Bank teams and other organizations are working hard to better understand global and

regional trends of climate change, macro scenarios, and the projected impact of climate change on

ecosystems and sectors as a whole. At the same time, the impacts of climate change are being manifested

locally as the consequences of extreme and more frequent weather patterns and natural events, which can

cause increasing water scarcity, more frequent flooding, groundwater contamination due to storm systems

such as hurricanes and monsoons, etc. The impacts of these natural events on infrastructure, how to best

manage their consequences, and how to adapt to their increasing recurrence are of direct concern to client

governments. In WSS, these climate challenges have to be addressed in addition to existing fragile WSS

systems that do not reach current populations, especially poor people, and are plagued by institutional and

management limitations.

Governments are increasingly turning to WSP with requests for technical assistance to address the

impacts of climate and natural events on basic services, one of the most visible and directly affected

sectors that result from climate-related natural disasters. Implementation of adaptation and/or mitigation

measures for climate change often requires a fundamental re-orientation of the institutions that provide

basic services. Client governments have expressed an interest in tapping into WSP’s global knowledge

and experience in advising reform processes that involve many different actors across sectors. WSP is

increasingly drawn to this challenge because the poorest populations often live in areas most affected by

natural disasters and the least able to access services that break down as a result of natural disasters.

Faced with the recurrent climate change impacts, an initial first step by WSP will consist of focusing on

the management of risks surrounding existing natural events, climate variability, and climate risks in alimited number of WSP focus countries where client demand is strongest.

This business plan addresses the impact of climate change on water and sanitation services in urban and

rural areas in selected WSP-focus countries. A key element of this strategy is to begin to address the

impacts of historical climate variability on WSS services and develop roadmaps that help mainstream into

on-going programs climate-smart WSS planning given existing climate vulnerabilities, harmonize sector

players, and build capacity of WSP clients and partners to implement these adaptations. This approach

will be supplemented by research and data, and fact-based monitoring and information systems to

understand the effects of the climate change on urban water utilities11. WSP will also focus on promoting

solutions for challenging, flood-prone areas expected to be most sensitive to increased climate variability,

as well as adaptation strategies for communities.

11 This will be informed by the recent WSP-Water Anchor publication Climate Change and Urban Utilities:

Challenges and Opportunities, http://www.wsp.org/UserFiles/file/climate_change_urban_water_challenges.pdf , andthe development of a Water Utilities Vulnerability Index (WUV).


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Specific interventions will include:

Disaster risk management: As demonstrated by numerous experiences, most recently the

earthquakes in Haiti, Chile, and Pakistan and the 2004 Indonesian tsunami, natural disasters are

commonplace throughout WSPs focus countries. In Peru, WSP is building on an opportunity to

address structural issues in the way in which governments approach risk management for WSS

services as a consequence of the Pisco earthquake of 2007. The lessons taken from improvingregulation, investment planning, and building codes, will help service providers reduce the effects of

long-term interruption of services to its customers, most severely affected of whom are the poor.

Sanitation solutions for challenging environments: WSP is promoting sustainable and affordable

sanitation solutions for challenging environments in East Asia. A study has been completed in

Indonesia and is currently underway in Cambodia and Lao PDR, to assess the sustainability and

affordability of existing sanitation options in challenging environments and provides the basis for

future capacity building activities at the local and central level. Challenging environments include

communities living along riverbanks or above rivers, coastal and estuaries areas, swampy and high

groundwater areas, and in flood prone areas. An estimated 10 million people live in such

communities in Indonesia alone, and with rapid urbanization coupled with climate change impacts,

service provision in these areas will become even more difficult over time. Identifying and sharing low cost climate change adaptation strategies for communities: In coastal

areas of Bangladesh that are susceptible to cyclones and other climate related events, WSP is

supporting the replication of good practices such as low cost rain water harvesting, disaster resilient

ponds, jute fiber reinforced cement sanitation facilities and community-led emergency services to

respond to natural disasters. Relatively low cost interventions, such as the provision of plastic sheets

for rain water harvesting, sealed containers which protect drinking water from floods and more robust

latrines can materially diminish incidences of disease subsequent to climate related events.

Climate change adaptation for utilities: WSP will support two severely affected provinces in

Vietnam and across the border in Southern Yunnan province of China in developing and

mainstreaming climate change adaptation approaches as part of investment planning for water andsanitation.

Developing and disseminating global knowledge: WSP will coordinate with the Energy Sector

Management Advisory Program (ESMAP) to better understand mitigation strategies by helping water

and sanitation providers reduce their carbon and water footprint through energy efficiency and water

conservation.


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Box 6: Managing Risks of Changing Climate Patterns in Peru

Climate change is already seriously affecting water and sanitation service provision in Peru. Not only has global

warming diminished glacial water sources by 22% since 1970 in the country´s tropical highlands, but it has

increased frequency, variability and intensity of floods, heavy rains and mudslide events which have devastating

impacts on poorly designed and maintained WSS infrastructure. In 2010 alone 18 out of Peru’s 24 regions suffered

from river and lake flooding and mudslides. It has become increasingly clear to sector authorities and regulators

that the WSS sector will need to adapt to these changes.

Risk identification and assessment, risk reduction investments, financial protection and increased readiness

capacity to emergency situations brought about by these natural catastrophic events, is a first step for confronting

challenges that will become more extreme with increased Climate Change. Accordingly, Sector authorities and

WSS providers are undertaking the groundwork for incorporating the effects of climate change into their policies

and practices for investment planning, risk management, and maintenance practices. With WSP technical

assistance, the sector is formulating a disaster risk management sector policy and testing increased disaster risk

management practices and capacities in 4 urban providers. Long-term planning skills and methodology, technical

cadastre update, pre investment procedures, design and construction guides and codes, emergency plans and a

financial strategy to protect the assets, are among the subjects being studied in order to propose a new policy that

will embed DRM in the Sector. The latter will help authorities and providers adapt and face the risks imposed by

Climate Change (such as a more extreme El Niño weather pattern forecasted for the upcoming years) and other

catastrophic events like the 2007 earthquake.


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F. Delivering WSS Services in Fragile States

WSP will expand its work to fragile states - countries with deteriorating governance or

prolonged political crisis, post-conflict transition countries and countries in gradual but still

fragile reform processes.

The countries at greatest risk of not meeting the MDGs are fragile states.

WSS services in fragile states are characterized by run-down institutions, often having endured long

periods of instability, erosion of capacity and financial collapse. Much WSS support in fragile states

derives from emergency activities: drilling of boreholes, trucking water or provision of chemicals and

toilets.

Fragility has multiple causes and there is a large and growing analysis, led by the World Bank, of the

dynamics in fragile states. Yet there is little published information or analysis on WSS approaches in

fragile states, though a large literature exists on emergency responses. There is a significant gap in

understanding of how to accelerate the transition from emergency to sector development approaches.

WSP is well placed to fill this gap by developing knowledge and supporting development of country-led

sector programs to accelerate access to WSS services. This potential derives from WSP’s: (a)

experience in opening up engagement in several conflict/post-conflict countries (e.g. DRC, Rwanda,

Eritrea, Ethiopia); (b) analytical and problem-solving work supporting self-supply, strengthening

community approaches and improving efficiency of informal service providers – approaches which

directly affect the poor’s access to services where formal providers have failed; (c) links with the Bank’s

expertise, state-building initiatives and liaison in country offices in fragile states; and (d) operational

model of supporting field presence in poor countries. Effective engagement in WSS in fragile states

requires a problem-solving approach, the capability to attract and supervise quality staff and to undertake

comparative country analysis – these are precisely WSP’s strengths as a global program.

There is growing demand by governments and the Bank for WSP to engage in fragile states (e.g.,Zimbabwe, Liberia, Burundi, Congo Brazza, Timor Leste and Haiti). WSP is in the process of

establishing limited presence in Zimbabwe, Liberia and Congo Brazza) in order to maintain the

momentum that has been built, pending confirmation of funding availability.

Through experience gained working in DRC, Rwanda, Eritrea, and Ethiopia and the more recent

engagement started in Zimbabwe, Liberia, and Burundi, WSP has identified some key considerations in

framing a strategic response to the challenge in fragile states: (a) local knowledge and physical presence

are critical as fragile environments are dynamic and unpredictable; (b) starting early to build

accountability and establish lines of accountability between policy-makers, providers and consumers; (c)

working in parallel tracks in the transition, both with state and non-state providers on critical

rehabilitation operations, and building sector development components into these operations.; (d)identifying key entry points, e.g., political brokers, local partner institutions or strategically positioned

service providers with whom it is possible to build a strong relationship to understand and influence

development of the sector; (e) identifying and nurturing local talent and emerging leadership; (f)

networking and communications, especially important given the chaotic and unstructured environment in

fragile states; (f) coordination of non-state providers, donors, and emerging government initiatives; (g)

early development of an information base to establish sector status and baseline sector knowledge to help


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determine basic facts and begin the process of determining what needs to be done; and (g) come prepared

to stay the distance with sufficient resources to be credible and to sustain support over a long period of

time in order to make impact.

WSP’s support will focus on developing policy-based sector programs comprising two main levels of

activity:

Country engagement supporting sector transition from emergency humanitarian interventionsand ad-hoc rehabilitation to country-led, policy-based, sector programs; and

Regional and global learning to facilitate country peer-to-peer and stable-to-fragile country

learning with a particular focus on reform and institutional development.

WSP will collaborate with Sanitation and Water for All partners (developing countries, implementation

agencies and donors) to increase political prioritization of WSS, promote evidence-based decision

making, and support strong national processes.

In each country WSP will work to increase reliance on national systems and institutions at central and

local levels with a view to building their capacity to carry out large-scale sector programs. WSP will workto integrate the WSS sector into core government processes establishing the visibility of the WSS sector

with high-level decision-makers and processes including: national planning and budgeting (e.g. PRSP the

MTEF processes) and the decentralization process. WSP will also ensure that WSS sub-projects are

included in social investment funds and community driven development (CDD) programs as well as

multi-sector rehabilitation and reconstruction projects.

WSP’s strategy in fragile states in Africa will be informed by WSS sector assessments carried out under

the CSO2: Tracking Africa’s progress towards the MDGs for W&S. CSO2 will assess the performance of

30 African countries in delivering the WSS MDG

WSP FY11 15 Business Plan

Documents