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Non-State Delivery of Water and Sanitation Services

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. SUMMARY. Engaging NSPs.

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Non-State Delivery of Water and Sanitation Services

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  1. 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 SUMMARY

  2. Engaging NSPs • NSPs have specialist capacity and flexibility to operate in different conditions and offer services. • NSPs can help stimulate demand, and respond to changes in demand. • Government cannot do it alone: Gov’t can enhance its roles as enabler while NSPs can fill the gap in financing and/or service delivery. • Innovation is often driven by NSPs. • Cost sharing options can stimulate household demand and financing, and leverage funding from government and other sources.

  3. Key Issues • Lack of recognition or inclusion • Affordability • Service quality • Pro-poor services • Financing • Policy • Regulation • Administrative and legal barriers • Technical and physical barriers • Vested interests (opposition to change, political intervention, corruption) • Uncertainty and risk

  4. Why Small Piped Network Deliver • Quick • Affordable • Convenient • Reliable • Adequate technical standards • Expanded coverage • Ownership

  5. Gram Vikas: Key factors for success • Strong awareness building and shared goal to achieve 100% sanitation and piped water coverage. • Village ‘corpus’ fund • Comprehensive hygiene and health education program • Integrated approach to development • Sanitation and water as entry point for other developments • Mechanisms for continued operation and maintenance and repairs are in place • Capacity development for self-reliant and self-governing village institutions

  6. 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)

  7. 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 • Small-scale intervention with little national impact

  8. IDE: NSP costs and benefits • Leverage ratio 2:1 (USD 65 hhdvs USD 33 project) • Business growth among informal providers • Flexible payments • Accreditation of competent masons (health posts) Problems: • Demand for relatively expensive latrine models (few models suitable for poorest) • Equitable outcomes but not progressive • Strong demand for fertilizer risks parasitic infections

  9. 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, Cambodia, Timor-Leste, etc) • Reduced benefits due to failure to achieve community-wide sanitation improvement (not targeting poorest)

  10. Group discussion:Issues to be resolved Enabling environment (policy, laws, regulations, institutional) Quality Accountability Capacity development Financing Knowledge sharing: technology, financing and management options, economic costs and benefits Public awareness and participation

  11. 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

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