1. Rudolf Frauendorfer Asian Development Bank
UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery
ADB HQ, Manila, Philippines
19-20 April 2010
Non-State Delivery of Water and Sanitation Services: Sharing Lessons Learned
Rudolf Frauendorfer
Asian Development Bank

2. Water Supply and Sanitation Coverage
Water supply coverage – on track
Sanitation coverage – mixed results
More work needs to be done in Cambodia, Indonesia, Lao PDR, Mongolia, Fiji, Kiribati, Papua New Guinea and Timor Leste.
While the progress in meeting quantitative targets is significant and laudable, there are continuing concerns over the quality of the services.
It is estimated that 90% of Asia’s wastewater is discharged untreated – polluting groundwater, rivers and coasts.

3. What needs to be done? Create an enabling environment
Sanitation policies and plans
Institutional arrangement
Capacity development
Sustainable and affordable financing and cost recovery mechanism
Increase awareness and involve stakeholders
Hygiene and sanitation education in schools
Social marketing of sanitation
Working with communities: in planning, financing, construction, operation and management of facilities

4. What needs to be done? Increase investments
Allocate budget for sanitation
Promote partnership with the private sector
Support small-scale providers and entrepreneurs
Increase public awareness and involve stakeholders to stimulate demand
Address affordability and sustainability issues
Address administrative and legal constraints
It is estimated that the annual costs of meeting the 2015 sanitation target are about $7 billion for sanitation facilities, and $53 billion for wastewater treatment.

5. What needs to be done? Target the poor Innovative financing approaches
Work with NSPs
Information, education and capacity development
Participation of the poor in planning, implementation and monitoring
Partnership between the local governments, poor communities and NSPs
Innovative financing approaches
Output-based aid: Nepal, Philippines
Microfinancing: Bangladesh, Philippines
Revolving fund: India Viet Nam

6. NSPs: Responding to Fill the Gap
Water NSPs
Informal private water providers
Small-scale independent providers and small water enterprises
Civil society organizations (NGOs, FBOs, CBOs) supporting community-based management
PPP operators for water services
Sanitation NSPs
Small private providers – typically support household-level services, such as construction of toilets, emptying pits, desludging septic tanks, supplying component parts, etc.
Civil society organizations supporting community-based management, sanitation promotion and marketing
PPP operators – typically large-scale urban water and sewerage systems

7. NSPs: Responding to Fill the Gap
Engaging with stakeholders
Promotion, social marketing, advocacy, CLTS
Hygiene, sanitation and health education
Empowerment and capacity development
Community based solutions
Marketing low cost solutions
Providing technological options
Small piped network
Septage management
Decentralized wastewater treatment
Reuse of waste: ecosan toilets, biogas
Introducing innovative financing

8. Issues and Actions Issues Actions needed Governance Regulation
Government priority
Inclusion of NSPs in plans and strategies
Institutional support for NSPs
Coordination and collaboration between central and local governments, public utilities, NSPs and development agencies
Regulation
Clear areas for NSP engagement
Contracts and permits
Performance standards
Tariff regulation
Water allocation rights

9. Issues and Actions Issues Actions needed Effective service delivery
Performance monitoring and benchmarking
Access to affordable and appropriate technologies and delivery systems
Financial
Accessible and affordable financing mechanisms
Targeted subsidies
Flexible payment terms; socialized fee structure
Capacity development needs
Business planning
Tariff/user fee structuring
Technical
Knowledge on water resource protection

10. ADB’s Contribution Technical assistance Urban services for the poor
Pilot and demonstration activity
Financing models for small-scale water providers (PHI)
Small-piped networks (PHI, IND, VIE)
Output-based aid
water supply connections and HH latrines (NEP)
Lending
Private concessionaire (INO)

11. Lessons Learned Enabling environment
Stakeholder awareness and participation
Institution building
Partnerships among stakeholders
Commitment from users to contribute financially

12. Lessons Learned Social marketing, community-led initiatives
Consideration of social aspects
Adequate support systems and capacity development on technical, financial and management options.
Provision of water supply and sanitation services as an entry point for other development initiatives.

13. Conclusion Sanitation coverage in Asia is increasing
Quality of service still major concern
NSPs cover 10-50% of the population
Address institutional, legal and financial constraints
Successful WSS programs of NSP that can be replicated and scaled up
Engage communities and partner with the private sector to improve efficiency in service delivery
Support non-state providers to reach the uncovered sectors, especially the poor

14. ADB HQ, Manila, Philippines
UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery
ADB HQ, Manila, Philippines
19-20 April 2010
THANK YOU