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NSP CASE STUDY 3: PIPED RURAL WATER (GRET), CAMBODIA Manila, 20 April 2010.

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Presentation on theme: "NSP CASE STUDY 3: PIPED RURAL WATER (GRET), CAMBODIA Manila, 20 April 2010."— Presentation transcript:

1 NSP CASE STUDY 3: PIPED RURAL WATER (GRET), CAMBODIA Manila, 20 April 2010

2 GRET Mini Piped Water Program Cambodia: rural centers/small towns (< 5,000) : 14 small piped WS systems built Program cost: USD 870,000 (78% TA) Approx. 6,000 households connected (29,000 people) High TA expenditure: Contracted through Local Govt External design & supervision Assisted credit & guarantees Subsidy (treatment works)

3 GRET: role of NSPs 2/3 capital investment = private equity Private piped = 77% coverage Network serves central areas (23% poorest beyond network) Water tariff increases < 5% per year Resale price control failed! (intended to limit resale price to 125% tariff) Little input to design, construction or business model No investment for treatment works (100% subsidy)

4 GRET: NSP costs and benefits Benefits Capital cost per connection low = USD 32 (due to locally appropriate technical standards) Network expansion after project close (162 hhds/system to 425 hhds/system) Costs Despite subsidy, only 49 poor hhds connected (0.8% connections)

5 GRET: Lessons learned Intensive TA difficult to replicate at scale (USD 114 per hhd; experienced design engineers) Most poor remain unconnected & outside network (insufficient incentives for connecting poor) Low response to assisted credit (bank loan conditions stringent: collateral valuation) No replication of treatment works or public-private contract in spontaneous projects (6 since 2005) Small-scale intervention with little national impact (+0.6% rural water supply coverage)

6 NSP CASE STUDY 4: IDE SANITATION MARKETING, VIETNAM Manila, 20 April 2010

7 IDE sanitation marketing, Vietnam : 30 communes in 6 coastal provinces Market driven = no latrine subsidies (hardware) 6,000 toilets in Year 1; 15,000 by 2006 … Project cost: USD 336,000 USD 33 software per toilet Pour-flush, septic tank and double vault latrines (USD 32 to 97 per latrine) Sanitation coverage:

8 IDE: role of NSPs NGO + local government + informal providers: Product development (local sanitation options) Competent private service providers (cap. blg) Marketing campaign (demand for sanitation) Community mobilization for behavior change Building local sanitation networks (2,000 govt. staff trained) Innovation by identification: Spending preferences (TV, karaoke) Demand constraints (lack of product information, lack of desirable options and suppliers)

9 IDE: NSP costs and benefits Leverage ratio 2:1 (USD 65 hhdvs USD 33 project) Business growth among informal providers (more business volume; 2/3 with greater profit) Flexible payments(credit with material suppliers; installment payments) Accreditation of competent masons (health posts) Demand for relatively expensive latrine models (few models suitable for poorest) Equitable outcomes but not progressive (16% poor customers vs 19% poverty line) Strong demand for fertilizer risks parasitic infections (due to early emptying and use)

10 IDE: Lessons learned Market-based approach generated sustainable supply chains (demand creation weaker) Involvement of marketing expert critical to user-centered approach (promotion, products, prices) Significant replication and scaling up of approach outside Vietnam (Indonesia TSSM, Cambodia IDE, Timor-Leste etc) Reduced benefits due to failure to achieve community-wide sanitation improvement (not targeting poorest)

11 Thank you! Precast sanitation goods for sale by a concrete producer in Kampong Speu, Cambodia Precast sanitation goods for sale by a concrete producer in Kampong Speu, Cambodia


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