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

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.

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

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.

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

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

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

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

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

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)

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

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.

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

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 www.adb.org