1. Building inclusive sanitation markets for the poor World Water Forum - Istanbul March 2009

2. The presentation 1.The context 2.The market approach 3.Research and results 4.Market strategies 5.Challenges and opportunities

3. ● 12 million people do not have sanitation services ● Less than 25% of wastewater receives treatment ● Only 3 of 10 latrines are in good conditions ● 8 of 10 children less than 5 years old who have latrines do not use them. The sanitation challenge in Peru (1) Ministry of Housing, Construction and Sanitation. National Sanitation Plan 2006-2015. March 2006 (2) WSP. Behavioral and demand base line study in Peru. IMASEN. June 2007 People:28.2m Child mortality: 8.3% Diarrhea:24% Chronic malnutrition: 24% HDI:0.767 Extreme poor:16% Water access:76% Sanitation access:59% WW treatment:23% Inequity Low quality services Inadequate behaviors

4. Traditional approachMarket approach BeneficiariesCostumers and citizens No choice, external decision Costumer decision choice (what and when buy) Unique sanitation optionDifferent sanitation options Focus on the supply sideDemand driven approach (to respond peoples' expectations and needs) A big relief actor (State)Multi-stakeholders alliances Direct subsidiesSubsidies to market development New client New behavior New product New role for the State A paradigm change

5. Strategy development Demand research Behavioral study Socio-economic study Market study Demand research Behavioral study Socio-economic study Market study Results The poor consume and are a market They are heterogeneous and have resources and have preferences Results The poor consume and are a market They are heterogeneous and have resources and have preferences Financial research Supply analysis Market expectations Financial research Supply analysis Market expectations Supply research Supply chain analysis Technical analysis Status of current technologies Supply research Supply chain analysis Technical analysis Status of current technologies

6. Market profile Upper poor Med poor Very poor Extreme poor Percentage Financing 18.420.623.422.3 Banks Regulated MFIs Non-regulated MFIs Subsidy Program Regulated MFIs Subsidy Program Product Dry toilets Water toilets Commercializ. Home format sale MultiCasa Community sales MultiCasa Community sales Home format sale MultiCasa Community sales HH Connections Dry toilets Water toilets HH Connections Dry toilets Water toilets HH Connections Dry toilets Water toilets

7. Communication materials

8. Lessons learns Choices leads to adoption Build the intervention upon existing attitudes and beliefs The private sector caters to the poor Private sector discovers opportunities and takes the lead to break through new ground

9. Muchas gracias