1. (Re-)Building an Institutional Framework
09/06/10
(Re-)Building an Institutional Framework
Michael Kropac, seecon international 1

2. Copy it, adapt it, use it – but acknowledge the source!
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Copy it, adapt it, use it – but acknowledge the source!
Copyright
Included in the SSWM Toolbox are materials from various organisations and sources. Those materials are open source. Following the open-source concept for capacity building and non-profit use, copying and adapting is allowed provided proper acknowledgement of the source is made (see below). The publication of these materials in the SSWM Toolbox does not alter any existing copyrights. Material published in the SSWM Toolbox for the first time follows the same open-source concept, with all rights remaining with the original authors or producing organisations.
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The contents of the SSWM Toolbox reflect the opinions of the respective authors and not necessarily the official opinion of the funding or supporting partner organisations.
Depending on the initial situations and respective local circumstances, there is no guarantee that single measures described in the toolbox will make the local water and sanitation system more sustainable. The main aim of the SSWM Toolbox is to be a reference tool to provide ideas for improving the local water and sanitation situation in a sustainable manner. Results depend largely on the respective situation and the implementation and combination of the measures described. An in-depth analysis of respective advantages and disadvantages and the suitability of the measure is necessary in every single case. We do not assume any responsibility for and make no warranty with respect to the results that may be obtained from the use of the information provided.

3. Contents Concept How it can optimize SSWM Design Principles
09/06/10
Contents
Concept
How it can optimize SSWM
Design Principles
Ensuring Sustainability
Applicability
Advantages and Disadvantages
References 3

4. “Water is not scarce but simply managed badly?"
09/06/10
1. Concept
“Water is not scarce but simply managed badly?"
Source:
In many cities, municipalities and countries around the globe, the statement "water is not scarce but simply managed badly" is painfully true.
Providing safe water and sanitation for all:
Where water supply is in place, infrastructure and services are often unreliable or even eroding; maintenance is sporadic.
drinking water entering the grid is lost or otherwise unaccounted for
The challenge is to make services reliable and efficient.
The challenge is to stop the deterioration of water resources quality.
An Institutional Framework
… because you need a sound framework to establish a sustainable water and sanitation management strategy.
These tools are the necessary preconditions for a successful implementation of the other tools.
A sound institutional framework is the base for a sustainable water and sanitation management strategy … 4 4

5. Institutional Framework
09/06/10
1. Concept
Institutional Framework
An institutional framework for SSWM consists of a range of different organisations that are in place (or need to be in place) to develop and manage water resources and the delivery of water and sanitation services, at different levels of society. (GWP 2008)
Adjudication
Pollution Control
Conservation and Protection
Flood Control and Risk Mitigation
Water Treatment and Reuse
Wastewater Collection
Allocation and Supply of Water
Surveillance and Monitoring
Regulation, Control and Enforcement
Networking, Information Exchange
Education and Awareness Raising
Policy Formulation
SSWM 5 5

6. 2. How it can optimize SSWM
Example: Regulatory Bodies and Enforcement Agencies (GWP 2008)
EExtremely important role in establishing and ensuring the effective application of other tools. Functions include:
Allocation of water rights, ensuring water quality, monitoring, etc.
Setting prices and performance standards for service providers
Tools for enforcement: Fines, taxes, penalties, withdrawal of permits and licences etc.
TThe legitimacy of the regulatory body is critical in ensuring compliance.
Source: Clip Art

7. 2. How it can optimize SSWM
09/06/10
2. How it can optimize SSWM
Example: Bundling and Unbundling of Functions
C Crucial importance in establishing and ensuring the effective application of other tools.
Faces distribution and disposition of functions, activities and processes
D Clear definition of roles and responsibilities within an organisation and between different organisations
A  No more overlapping of functions leads to more efficient planning and implementation of other tools
  Clear definition of roles and responsibilities leads to specialism and more expert knowledge
Regulatory and enforcement bodies have an extremely important role in establishing and ensuring the effective application of tools.
Functions: allocation of water rights, environmental management related to water use, water quality, land use planning, etc.
Regulatory bodies also have a function in setting prices and performance standards for service providers (economic regulation).
The actual function of regulatory and enforcement bodies should be set out in a clear legal framework reflecting water policies. In some cases the same body undertakes regulation and enforcement; in other cases they are separate.
Regulatory and enforcement agencies normally have a range of tools for enforcement – fines, taxes, penalties, withdrawal of permits and licences etc.
Regulatory bodies and enforcement agencies may be financed through central government funds, or by user fees (e.g. pollution charges) or fines for non-compliance. If the latter applies, the terms need to be very clear or there is a potential risk of conflict of interest.
The specific functions of regulatory bodies and enforcement agencies are determined by government policy on water resources management. These bodies and agencies are usually in the government sector but may subcontract specific activities (e.g. monitoring and testing samples) to non- governmental organisations, including private companies. It is important that they can act without day-to-day political interference.Effective capacity in regulation and enforcement is essential and this applies whether traditional regulatory instruments or innovative pricing and economic instruments are used.
However, capacity in regulatory and enforcement bodies varies widely from region to region and a focus on capacity building and support is essential. The legitimacy of the regulatory body is critical in ensuring compliance. 7 7

8. 2. How it can optimize SSWM
09/06/10
2. How it can optimize SSWM
Example: Public Private Partnership for Water Supply (SCD, SWISS RE, SECO 2005)
A public private partnership is an agreement between the public sector and a private sector entity.
PPP arrangements typically involve a government agency contracting with a private partner to renovate, construct, operate, maintain, and manage a facility or system, that provides a public service.
In the last few years, it has become obvious that some changes are needed to increase the efficiency of water supply and sanitation. However, considering that access to water and shelter are basic human rights, a mere privatisation of the sector does not seem adequate. Rather a cooperation between the public sector and private enterprises is now considered a feasible and effective option to improve the quality of water supply and sanitation, or to establish it at all. These cooperation is generally labelled Public-Private Partnership.
A public private partnership is an agreement between the public sector and a private sector entity, whereby both parties share risks, responsibility, and in some cases investment. PPP arrangements typically involve a government agency contracting with a private partner to renovate, construct, operate, maintain, and/or manage a facility or system, in whole or in part, that provides a public service.
Examples of actors in a given PPP:
Contracting Parties: : Local authority, service operator(strongly influencing the PPP)
Key Stakeholders: Both contracting parties and national and municipal governments, investors, regulator, donors, trade union(s), consumer NGOs.
Stakeholders:All above and gender & community groups, beneficiaries, households etc.
Actors in a PPP
Source: (SCD, SWISS RE, SECO 2005) 8 8

9. 2. How it can optimize SSWM
09/06/10
2. How it can optimize SSWM
Example: Private Sector Participation in Bangladesh (WATER AND SANITATION PROGRAMM 2000)
Twenty-five years ago, the private sector was almost completely uninvolved in the provision of goods and services for rural water supply and sanitation in Bangladesh.
Today, 65 per cent of the approximately four million handpump tube wells have been privately installed.
The private sector has demonstrated clear advantages over the public and NGO sectors in reducing production costs, and in the efficient distribution of goods and services.
Whilst much of this success is undoubtedly due to the particular conditions and circumstances found in Bangladesh, it is also clear that some of the findings are general and should be replicable in other countries.
Case Study from Bangladesh:
Twenty-five years ago, the private sector was almost completely uninvolved in the provision of goods and services for rural water supply and sanitation in Bangladesh. The situation is radically different today; it is estimated that more than 65 per cent of the approximately four million handpump tube wells have been privately installed, and there are 3,000 privately run latrine production centres, accounting for more than 65 per cent of the sanitation market. Bangladesh bears testament to the private sector’s success in creating effective supply chains for handpumps and sanitary goods, which are now available from traders throughout the country, with competition keeping prices reasonable and products reliable. The private sector has demonstrated clear advantages over the public and NGO sectors in reducing production costs, and in the efficient distribution of goods and services. Whilst much of this success is undoubtedly due to the particular conditions and circumstances found in Bangladesh, it is also clear that some of the strategies used to encourage private sector participation are general and should be replicable in other countries. 9 9

10. Main Actors and Roles (SCD, SWISS RE, SECO 2005)
09/06/10
3. Design Principles
Main Actors and Roles (SCD, SWISS RE, SECO 2005)
The national government: sets the policy and legal framework for SSWM, and represents the interests of all citizens.
The local government (regional, municipal as appropriate) ensures access to basic services, has authority over user charges, and concludes service delivery contracts.
The consumer (in case of a public private partnership) becomes a legitimate customer of the service provider and is responsible for paying the bills issued on the basis of an agreed tariff.
The regulator(s) monitor the performance of all parties, provide information on the execution contracts, and act to balance the interests of governments, service providers, and consumers.
The service provider(s) are responsible for executing the contractual agreements and for delivering services.
The national government: sets the policy and legal framework for water and sanitation, Public- Private Partnerships, and represents the interests of all citizens.
The local government (regional, municipal as appropriate) ensures access to basic services, has authority over user charges, and concludes service delivery contracts.
The consumer becomes a legitimate customer of the service provider and is responsible for paying the bills issued on the basis of an agreed tariff.
The regulator(s) monitor the performance of all parties, provide information on the execution of the contract, and act to balance the interests of governments, service providers, and consumers.
The service provider(s) are responsible for executing the contractual agreements and for delivering services. 10 10

11. Example: Spheres of Influence
09/06/10
3. Design Principles
sdsdsd
Example: Spheres of Influence
Water Service Provider
Water Trucker
etc.
NGOs
CBO
Stand Pipe Operator
River Basin Organisations
Sanitation Provider
Farmers
Local Government
Public Sector Water Provider
Law Enforcement Agencies
WHO
etc.
etc.
Hier geht es darum uafzuzeigen, was man ändern kann, und was nicht …
Building an Institutional Framework:
On which level do we have influence?
You can’t change the organisation of the WHO and you cannot change national laws!
BUT: You can change and (re-)build your regional and local framework!
e.g. by building partnerships for SSWM (siehe nächste Folie)
National Ministries and Agencies
UN-Water
Large Scale Water Service Provider
World Bank
UNESCO
etc.
WSP
WSSCC 11 11

12. (Re-)Building Partnerships for SSWM (GWP 2008)
09/06/10
3. Design Principles
(Re-)Building Partnerships for SSWM (GWP 2008)
Starting partnerships with:
e.g. stakeholder analysis, gap analysis, development of common goals, planning, program design, social capacity building, co- operative inquiry, supporting self-organisation and organisational development, conferencing.
Important steps:
Stakeholders need to meet each other, to understand and interpret SSWM concepts in the same manner, and establish a common ‘language’
Levelling of information, knowledge and expertise
The partnership needs to develop its goals, outputs and actions based on the will and motivation and collaboration of the partners.
Partnership example: partnership including an independent water service provider, the municipality, a community group to optimize the local SSWM System
Partnerships have been established at regional and country level and area / basin partnerships are a new focus. A partnership is oftencharacterised as a working relationship between stakeholders with mutual and equal participation, joint interest and shared responsibilities. Processes in a partnership are typically transparent and based on an open dialogue.
Starting a partnership involves extensive work on many aspects: stakeholder analysis, gap analysis, development of common goals, planning, program design, social changes accompanied by social capacity building, co-operative inquiry, supporting self-organisation and organisational development and (work) conferencing. These are complex processes, where stakeholders may want to achieve many different goals at the same time. Setting up a partnership has a number of dimensions that need to be addressed simultaneously: 12 12

13. 09/06/10
3. Design Principles
Balance between a fully integrated framework and a sectoral approach.
Regulation of service providers, both public and private, is a key element and regulators must be independent and strong.
Policy, regulatory and service- delivery functions should be strictly separated (accountability and transparency). (GWP 2008)
Raising awareness, sharing information and a participatory approach are key elements of building an institutional framework.
Finding a balance between:
a fully integrated framework, where specific issues may get lost due to lack of expertise or interest,
and a sectoral approach where different policies are followed without any coordination.
It is essential to have mechanisms for dialogue and co-ordination to ensure some measure of integration.
In any reform, regulation of service providers, both public and private, is a key element and regulators must be independent and strong.
Not all necessary reforms can be undertaken at the same time – it is important to decide on priorities and a sequence of actions to suit those priorities.
Raising awareness, sharing information and meaningful participatory debate are key elements ofany reform process.
Source: sp&pid=10820 13 13

14. 4. Ensuring Sustainability (SCOTT et al. 2003 and WRC 2003)
Lack of sound instuitutional framework is the root cause of long-term failures in service-delivery in sanitation and water provision, with outcomes like:
Declining services leading to poor coast recovery
Ultimately failed investements that do not meet either current or future demand
 A sound institutional framework is the pre-condition for the implementation of many other tools and their sustainability.
With a clear institutional „home“ for planning and management, well defined roles and responsibilities of actors etc., sanitation services and water management are sustained beyond the implementation of infrastructure projects and hardware tools.

15. 09/06/10
5. Applicability
The composition of institutions in any given country will depend on the nation’s experience and needs. Institutional structures vary from country to country. (GWP 2008)
An institutional framework for SSWM can include organisations of all levels (local, regional, national, international), the political and legal complexity increases with each of the levels.
The applicability of different organisational arrangements (e.g. public-private-partnership) varies from case to case.
Source: sp&pid=10820 15 15

16. 6. Advantages and Disadvantages
09/06/10
6. Advantages and Disadvantages
Advantages:
Necessary precondition for a successful implementation of the other tools
Important role in ensuring the effective application of tools
Disadvantages:
Local authorities have limited influence towards higher governmental powers and could be restricted on their actions
Investment costs in long-term capacity building and education of qualified staff
Friction between partners and stakeholders over priorities and means, lack of clarity about roles and responsibilities often result in high transaction costs
Essential!
Because you need a sound framework to establish a sustainable water and sanitation system 16

17. 09/06/10
7. References
DE GOOIJER, G. & NEWTON, J. (2009): Messages for Parliamentarians. The United Nations World Water Development Report 3. Messages Series. Perugia: United Nations World Water Assessment Programme (WWAP).
GWP (2008): Creating an organisational framework. URL: [Accessed: ]
SCD, SWISS RE, SECO (2005): Public-Private Partnerships for Water Supply and Sanitation. Policy Principles and Implementation Guidelines for Sustainable Services. URL: [Accessed: ]
SCOTT, R., COTTON, A. and GOVINDAN, B.( 2003): Sanitation and the Poor. Leicestershire/ London/ Delft: Resource Centre for Water, Sanitation and Environmental Health (WELL). URL: [Accessed ]
VAN ITTERSUM, M. & VAN STEENBERGEN, F. (2003): Ideas for local action in water management. Stockholm: The Global Water Partnership.
WATER AND SANITATION PROGRAMM (2000): The growth of private sector participation in rural water supply and sanitation in Bangladesh. New Delhi: Water and Sanitation Programm South-Asia.
WRC (2003): Sanitation Research Strategy. Water Research Commission (WRC). URL: DEC2003.pdf [Accessed ] 17 17

18. 7. References
WATER AND SANITATION PROGRAMM (2000): The growth of private sector participation in rural water supply and sanitation in Bangladesh. New Delhi: Water and Sanitation Programm South-Asia.
WRC (2003): Sanitation Research Strategy. Water Research Commission (WRC). URL: [Accessed ]

19. “Linking up Sustainable Sanitation, Water Management & Agriculture”
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