1. Water Services Trust Fund The Urban Projects Concept (UPC) & Support Provided by the German Development Bank (KfW) Tuesday 18 th June 2013 Eng. Jacqueline K. Musyoki (Mrs.), OGW Chief Executive Officer 1

2. Water Services Trust Fund (WSTF) 2 WSTF-funded and designed prepaid yard tap in Nakuru

3. Mandate of the WSTF & Strategic Objectives Mandate: To assist in financing the provision of water services in areas of Kenya without adequate water services Strategic objectives of the WSTF: 1.To mobilise resources nationally and internationally to enhance provision of water services 2.To develop and apply systems that ensure proper targeting, financing, implementation and sustainability of water and sanitation projects 3.To establish and nurture partnerships with stakeholders 4.To continuously strengthen the WSTF institutional capacity and enhance staff skills to ensure effective and efficient service delivery 5.To facilitate capacity building of agents to deliver on the provision of water services 3

4. About the Water Services Trust Fund (WSTF) The WSTF has 3 main funding windows: The urban window: UPC (Urban Projects Concept) The rural window: CPC (Community Project Cycle) The water resources window: WRUA Development Cycle (*) Other key WSTF programmes: The GoK-UNICEF-WASH Programme Aid on Delivery (AoD) and Output-based Aid (OBA) MTAP (Medium-Term ASAL Programme) (**) WSTF works with the Water Services Board & Water Service Providers ___________________________________________________________________________________________________ (*) WRUA = Water Resources Users Association (**) ASAL = Arid and Semi-Arid Lands 4

5. The Partners of the WSTF 5

6. The UPC Concept 6 WSTF-funded public sanitation facility in Athi River

7. UPC Target Group – 8 Mio. Urban Residents 7

8. The UPC Process 1.The launch of the Call for Proposals by the WSTF 2. Data collection & proposal preparation Using the toolkit & the WSTF Procedures & Information Document 3. Appraisal of the proposals & awarding 6 th Call; 154 proposals for water supply & public sanitation projects Involving: Management, Board of Trustees & Development Partners 8

9. The UPC Process 4. Project implementation Using WSTF funds, Field Monitors, Project Task Team and Toolkit 5.Project operation Emphasis on sustainable operation, gender equality and customer care 5.Project audits & evaluation 9

10. Support Provided by the WSTF Forms of WSTF support : 1.Funding of awarded projects 2.Direct support provided by the UPC team, the CEO & other WSTF staff members 3.Services of the WSTF Field Monitors 4.Workshops for Water Services Boards and Water Service Providers 5.Data & progress monitoring through MajiData which covers 1,964 areas 6.Support to the Low Income units of WSP (a new activity) 7.Develop technical standards & coverage definition 8.Project implementation & operation approaches & procedures 9.Toolkits & the WSTF Procedures Document (Transparency) 10

11. Support Provided by the WSTF Time-space advantages of the WSTF approach: The WSTF has managed to establish a long-term relationship with its key partners - the WSPs. By organising different types of (real) workshops the WSTF provides a forum that brings together WSS professional at different levels (e.g. feedback workshops). Lessons learnt & best practices can be shared with all WSPs Example: The procurement initiative Slogan: “Putting work back into the workshop” 11

12. UPC Funding 12

13. Funding of UPC 13 Development Partner Funding amount (Euro) EU (2008 – 2014)10,250,000 KfW Phase I (2009 – 2011)5,000,000 KfW Phase II (2011 – 2015) 12,000,000 GoK counterpart contr. (2011 – 2015) 1,200,000 BMGF (2011– 2016) 5,418,464 GIZ (2008 – 2013)500,000 TOTAL 34,368,464

14. UPC Funding Disbursement to WSTF 14 Source of funding Date Amounts (Euro) Amounts received in the bank (Euro) Amount in KSh KfW (Phase 1) 26/08/2009900,000.00 899,900.0098,541,900.00 15/03/2010680,480.00 680,375.0071,540,903.84 08/11/20101,632,430.001,632,325.00183,082,388.16 06/12/2011394,428.28394,323.2847,228,020.38 27/07/20121,493,099.391,492,992.39157,221,056.62 13/12/2012144,112.30144,005.3316,560,612.95 Sub-Total --5,244,549.97-- 574,174,881.95 KfW (Phase 2)12/12/20123,426,781.643,426,774.14383,798,703.70 Bill & Melinda Gates (KfW)11/12/2012$330,600330,56928,428,934.00 EU16/09/2009457,871.26KSh 49,999,00050,000,000 10/02/20101,039,231.74 1,039,224.24111,825,492.15 27/09/20101,432,669.26 155,938,069.25 12/04/2011( 132,169)(€ 132,169)( 15,912,486.35) 26/04/20111,633,148.00 1,633,113.00196,918,639.64 24/02/20122,243,364.85 251,137,964.90 07/12/20122,287,782.62,287,739.5252,795,214.80 Totals EU --8,961,898.71-- 1,002,702,894.39

15. Summary on UPC Calls for Proposals (CfP) 15 CALLCONTRACT DATEPROJECTSCOST (Million KSh) BENEFICIARIES 1October 20099 No. (Water)69.7151,310 2 April 2010 27 No. (Water) 322.2 259,657 9 No. (Sanitation) 22,800 3February 2011 34 No. (Water) 338.9 261,439 9 No. (Sanitation) 22,525 4November 2011 34 No. (Water) 463 402,000 5 No. (Sanitation)59,000 5 (1 st )July 201241 No. (Water & San.)454280,550 TOTAL159 No.1,578.11,307,971

16. UPC Primary Impact 16

17. Primary Impact: 17 YearCALL PROPOSALS RECEIVED WATER PROJECTS AWARDED SANITATION PROJECTS AWARDED TOTAL PROJECTS AWARDED 20091st Call139N/A9 20102nd Call16827936 20103rd Call11330434 20114th Call11536541 20125th Call116611071 Total52516328191

18. UPC Projects Overview: 18

19. UPC Impact: 19 YearCALL PLANNED BENEFICIARIES ACCUMULATIVE 20091st Call151,310 20102nd Call242,857394,167 20103rd Call261,439655,606 20114th Call186,425842,031 20125th Call531,0481,373,079

20. UPC Planned vs. Actual Beneficiaries: 20 1,373,079 1,022,305 1 st Call 2 nd Call 3 rd Call 4 th Call 5 th Call 151,310 242,857 261,439 186,425 531,048 151,310 242,857 261,439 180,832 185,867 PlannedActual

21. Water Supply Infrastructures: 21 WSPs implementing WSTF-funded UPC Projects (1 st – 3 rd call)

22. Water Supply Infrastructures: 22 CALLS WATER KIOSK YARD TAPS METERSPIPELINETANKS PUMPING UNIT No. MetresNo. 1st Call 62971,43125,58531 2nd Call 92603,302303,999122 3rd Call 691255,504306,418181 4th Call 114443,881271,004160 5th Call 132926,560571,870393 TOTAL 46941820,6781,478,876887

23. Sanitation Infrastructures: 23 YEARCALLS PUBLIC SANITATION FACILITIES SEWER LINES No. Metres 20091st Call 20102nd Call 114,598 20103rd Call 16,403 20114th Call 70 20125th Call 110 TOTAL 3011,001

24. UPC Secondary Impact: 24

25. Secondary Impact of the WSTF/UPC Approach:  Area level communities working together, capacity building  WSP level more connections, development of capacities & local networks, exchanges with other WSPs  National level development of national technical standards, coverage definition, database (MajiData), pro-poor focus in the sector 25

26. UPC Reporting: 26 UPC UPC Brochures Steering Committee WSTF Newsletter Stakeholder Meeting WSTF webpage UPC Commissioning Newspaper Articles Documentaries Aquapix

27. WSTF Strengths and Challenges: 27

28. WSTF: Strenghts & Challenges: Good cooperation between the Fund and its partners (WSP, WSB) Good cooperation between WSTF/UPC, development partners and TA Up-scaling but being in touch >> Although the WSTF is funding a large number of urban projects the “distance” between WSTF staff and each project (Task Team, residents & kiosks) is relatively short UPC is WSP & project oriented (MajiData, Field Monitors, regular project visits, meeting with WSP, workshops, etc.) 28

29. WSTF/UPC: Strenghts & Challenges: Challenges at WSP and area level: Project implementation: Poor planning resulting in unsustainable operation Poor quality of technical works Procurement & VAT issues Project operation: Many WSPs still lack a genuine pro-poor focus & presence in the low income areas Illegal connections Poor O&M Underutilised facilities 29

30. WSTF/UPC: Strenghts & Challenges: The WSTF answer: Support to Low Income Area Units of the WSPs (Nakuru, NCWSC) Developing a decentralisation concept for WSPs (NCWSC) Focus on procurement & VAT (NEW) Focus on O&M & data collection Involving residents in reporting (NEW) 30

31. WSTF/UPC: Strenghts & Challenges: Challenges at WSTF level: Some Field Monitors do not perform according to expectations Communication is not always good …but improving The team is small and has to combine “routine duties” with product development and WSTF activities & trainings Delayed reporting! Crowed and noisy office Staff turnover 31

32. UPC Operations Monitoring Concept: 32

33. Operations Monitoring Concept 33 AS USEDAS BUILT AS PLANNED Financing Contract Inventory ToolOM Tool HOW? WHEN? At Award Level At Commissioning Every 6 Months UPC-IS WSPs

34. Operation of Infrastructures 34

35. Who are Operating the WSTF-funded Water Kiosks? 35

36. WSTF/UPC: Innovations 36

37. WSTF/UPC: Innovations Hardware: 1.Redesigned kiosk (Customer-Aided design CuAD) 2.Public Sanitation Facility (PSF) 3.Bamboo kiosk 4.Improved prepaid meter 5.Prefabricated kiosk 6.Prefabricated UDDT Software: 1.MajiData.. the pro-poor database 2.Coverage document 3.AquaPix 1, 2, 3 4.Reporting by residents 5.Documentary made by residents 6.Water Source (to be updated) 7.WSP Decentralisation Concept 37

38. WSTF/UPC: Other Activities Other activities: 1.UPC-IS 2.Mainstreaming HIV/AIDs 3.Articles 4.Filing & organisation of the archives 5.Corporate identity 6.Charity concept (NEW) 7.Give IT to Kids 8.Tools for donation 9.Participation in the Stockholm World Water Week 10.Supervising interns 38

39. 39