Water Supply and Sanitation Sector Programme Support (WSSPS) Phase II BANGLADESH

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1 Government of Bangladesh Ministry of Foreign Affairs, Denmark Water Supply and Sanitation Sector Programme Support (WSSPS) Phase II BANGLADESH HYGIENE PROMOTION, SANITATION AND WATER SUPPLY FUND PROJECT IN CHITTAGONG HILL TRACTS (CHT HYSAWA Fund) Project Document Ministry of Chittagong Hill Tracts Affairs Ref. No. 104.Bang November 2005

2 COVER PAGE Country Bangladesh Programme Title Water Supply and Sanitation Sector Programme Support Project Title Hygiene Promotion, Sanitation and Water Supply (HYSAWA) Fund Project in Chittagong Hill Tracts National Agency Ministry of Chittagong Hill Tracts Affairs Starting Date December 2005 Duration Five years Overall Budget DKK million (BDT million) Danida Contribution DKK million (BDT million) GoB Contribution DKK 0.05 million (BDT 0.5 million) The Hygiene Promotion, Sanitation and Water Supply (HYSAWA) Fund Project in Chittagong Hill Tracts will assist the GoB to support improvement in health of the peoples in the CHT through improved hygiene, sanitation and safe water practices and provisions. The immediate objectives are: 1. To increase awareness for improved hygiene behavioural patterns and sanitation promotion. 2. To improve access to water supply services and facilities especially for the underserved communities in the CHT. 3. To establish and operationalise an appropriate institutional arrangement for administration and operation of the HYSAWA Fund. The Ministry of Chittagong Hills Tracts Affairs (MCHTA) will establish a HYSAWA Fund to directly serve the poor communities. In support of the Peace Agreement, implementation will be made through the administrative structures as enacted by the Government. Administration of the Fund will be through a Board representing relevant institutions. Operation of the Fund will be the responsibility of the Regional and District Level Executive Committees, supported by Fund Support Units. There will be a CHT HYSAWA Board at national level chaired by the Secretary of the MCHTA. The Board will be responsible for overall implementation strategy for administration and management of CHT HYSAWA Fund Project. Successful implementation of the CHT HYSAWA Fund depends on the security situation in the CHT. It is assumed that the implementation of the Peace Accord is continuing and that both Bengalis and adivasi/ethnic minorities and all other parties involved in the CHT will uphold the spirit of the Peace Accord and support the development activities in the CHT. Continued implementation of decentralisation as stated in the terms of the Peace Accord and that Local Government Institutions will be willing to participate in the programme are key assumptions that will be monitored during the implementation. Signed on behalf of Danida Date: Signed on behalf of Government of Bangladesh Date:

3 TABLE OF CONTENTS LIST OF ABBREVIATIONS AND ACRONYMS... III MAP OF BANGLADESH... V EXECUTIVE SUMMARY... VI 1. INTRODUCTION NATIONAL CONTEXT IN RELATION TO THE PROJECT THE AREA AND ITS PEOPLE SITUATION REVIEW THE IMPORTANCE OF THE PROJECT IN THE NATIONAL CONTEXT RELEVANT PLANNED REFORMS, POLICIES AND LEGISLATION INSTITUTIONAL FRAMEWORK CURRENT WATER SUPPLY AND SANITATION INTERVENTIONS IN CHT POVERTY AND ENVIRONMENT DESCRIPTION OF THE PROJECT OBJECTIVES IMPLEMENTATION APPROACH AND STRATEGY OUTPUTS AND ACTIVITIES INPUTS OVERALL ALLOCATION OF FUNDS AND BUDGET ASSUMPTIONS AND RISKS ORGANISATION AND MANAGEMENT NATIONAL LEVEL MANAGEMENT AND COORDINATION REGIONAL LEVEL MANAGEMENT AND COORDINATION DISTRICT LEVEL MANAGEMENT AND COORDINATION FINANCIAL MANAGEMENT BUDGETING AND REQUEST FOR FUND TRANSFER OF FUND AND CASH FLOW MANAGEMENT PROCEDURE ACCOUNTING PRINCIPLES AND PROCEDURES FOR REPORTING PROCUREMENT AUDITING MONITORING, REPORTING AND REVIEWS MONITORING REPORTING REVIEW EVALUATION IMPLEMENTATION PLAN i

4 ANNEX-1: DETAILED BUDGETS ANNEX-2: ELIGIBILITY CRITERIA FOR FUNDING ANNEX-3: OUTPUT INDICATORS AND MEANS OF VERIFICATION ANNEX-4: ORGANISATIONAL SET-UP ANNEX-5: OPERATIONAL INSTRUMENT PACKAGE (OIP) ANNEX-6: JOB-DESCRIPTION FOR REG. PROGRAMME OFFICER ii

5 LIST OF ABBREVIATIONS AND ACRONYMS ADB ADP AIDS BBS BCC BDT BRDB CBO CD/VAT CHT CHTDB CHTRC CLTS CMP DC DEC DFID DFSU DPHE DKK EoD ERD FSU GDP GoB HDC HIV HYSAWA LGD LGI M&E MCHTA MIS MLGRD&C MoU NGO O&M OIP PCJSS PRSP REC RFSU TPP ToR TOT UNDP Asian Development Bank Annual Development Programme Acquired Immune Deficiency Syndrome Bangladesh Bureau of Statistics Behavioural Change Communication Bangladesh Taka (1 BDT = 0.1 DKK) Bangladesh Rural Development Board Community Based Organisation Customs Duty/ Value Added Tax Chittagong Hill Tracts Chittagong Hill Tracts Development Board Chittagong Hill Tracts Regional Council Community-Led Total Sanitation Community Management Promotion Deputy Commissioners District Executive Committee Department for International Development (UK) District Fund Support Unit Department of Public Health Engineering Danish Kroner (1 DKK = 10 BDT) Embassy of Denmark Economic Relations Division Fund Support Unit Gross Domestic Product Government of Bangladesh Hill District Council Human Immune Deficiency Virus Hygiene Promotion, Sanitation and Water Supply Local Government Division Local Government Institution Monitoring and Evaluation Ministry of Chittagong Hill Tracts Affairs Management Information System Ministry of Local Government, Rural Development & cooperatives Memorandum of Understanding Non Governmental Organisation Operation and Maintenance Operational Instrument Package Parbattaya Chattagram Jana Sanghati Samiti Poverty Reduction Strategy Paper Regional Executive Committee Regional Fund Support Unit Technical Assistance Project Proposal Terms of Reference Training of Trainers United Nations Development Program iii

6 UP UPDF WFP WSS Union Parishad United Peoples Democratic Front World Food Programme Water Supply and Sanitation iv

7 WSSPS Phase II, CHT HYSAWA Project MAP OF BANGLADESH PANCHAGAR W SSPS - II Programme Area THAKURGAON NILPHAMARI LALMONIRH AT N KURIGRAM DIN AJPUR RANGPUR IN D IA GAIBANDHA JOYPURHAT SHERPU R NAOGAON SUN AMGAN J SYLHET BOGRA CHAPAI NAWABGANJ JAMALPUR NETRAKONA MYMENSINGH MOULVI BAZAR RAJSHAH I SIRAJGANJ TAN GAIL NAT ORE KISH OREGANJ HABIGANJ IN D IA PABNA GAZIPUR NARSIN GDI KUSHTIA MEHERPUR MANIKGANJ DHAKA BRAHMANBARIA NARAYANGANJ RAJBARI CH UADAN GA IN D IA JH ENAIDAH MUNSHIGANJ FARIDPUR MAGURA COMILLA SHARIATPUR CH ANDPUR KH AGRACHHARI MADARIPUR NARAIL JESSORE GOPALGANJ LAKSMIPUR FENI BARISAL NOAKHALI RANGAMATI JHALAKATI SATKHIRA BAGERH AT KH ULNA CH ITTAGONG BHOLA PIROJPUR PATUAKHALI W SS Component - HYSAW A Fund Project Legend S u n d a r b a n Union under the NGO-F. Project Prog ram me A rea W S S & CHT H YS A W A Rive r/kh al International Boundary District Boundary Costal Boundary BORGUNA Bay of B engal Bangladesh Map W SS Component - W SS Coastal Belt Project - HYSAW A F und Project Kilo me ters Scale 1 : 2,880,000 Chittagong Hill Tracts - HYSAW A Fund Project COX'S BAZAR BANDARBAN MYANMA R v

8 EXECUTIVE SUMMARY Background Denmark considers Bangladesh as one of the priority countries for bilateral development assistance. The security situation during the last two decades has restricted development activity in the Chittagong Hill Tracts (CHT). Following the signing of the Peace Accord in December 1997, a United Nations Development Program (UNDP) mission visited CHT and identified water supply and sanitation as a priority sector. The Embassy of Denmark (EoD), under its local grant authority, provided funds for a one-year Pilot Project (July June 2000) in the Rangamati district. A CHT component under the Water and Sanitation Sector Programme Support (WSSPS) Phase I was designed based on the lessons learnt from the pilot project. By February 2001, the component was ready for signing of the Government-to-Government Agreement. However, the development work in the CHT came to a standstill after the abduction of three Danida Project engineers in February A Joint GoB/Donor Risk Assessment Mission was fielded in June The Mission s report was accepted in principle by the Government and made public on August 14, It reopened the avenue to work in the Chittagong Hill Tracts. Introduction The CHT Hygiene Promotion, Sanitation and Water Supply (HYSAWA) Fund will provide an integrated package of hygiene and sanitation promotion and water supply to poor and vulnerable groups in the three CHT districts. The coverage of water supply and sanitation is considerably low in the CHT. It is now widely recognised, as a paradigm of development, that poverty and water supply, sanitation and hygiene are inextricably interrelated. It is expected that establishment of the CHT HYSAWA Fund to address the acute needs of water supply, sanitation and hygiene will contribute substantially in reduction of poverty in the CHT region. The project is for a five year period commencing in December 2005 and ending in December Approach This project is in line with the objectives of the National Policy for Safe Water Supply and Sanitation, 1998 and the Sanitation Strategy, The policy emphasises on the gradual phasing out of subsidy from the sector with a safety net for the poor. The CHT HYSAWA fund has adequately taken this aspect into account. The government underlines the importance of a pro-poor strategy for water supply and sanitation (WSS). A number of Ministries including the Local Government Division (LGD) of the Ministry of Local Government, Rural Development and Cooperatives (MLGRD&C) have developed a pro-poor strategy for Water Supply and Sanitation Sector. Formation of the CHT HYSAWA Fund should be seen within the perspective and framework of government s efforts towards formulating the Pro-Poor Strategy for WSS, which will, in turn yield dividend for the underserved and under privileged CHT communities in addition to its direct contribution in relation to the country s Poverty Reduction Strategy. vi

9 Objectives and Output The development objective of the CHT HYSAWA Fund is to assist the GoB to: Support improvement in health of the peoples in the CHT through improved hygiene, sanitation and safe water practices and provisions The immediate objectives are: 1. To increase awareness for improved hygiene behavioural patterns and sanitation promotion. 2. To improve access to water supply services and facilities especially for the underserved communities in the CHT. 3. To establish and operationalise an appropriate institutional arrangement for administration and operation of the HYSAWA Fund. The outputs expected at the end of the HYSAWA Fund are: Output 1.1: Output 1.2: Output 1.3: Output 2.1: Output 2.2: Output 3.1: Output 3.2: Output 3.3: Hygiene and sanitation promotion manual and other communication materials are developed, tested and used. Community based organisations are formed and have entered into agreement with NGOs and other service providers on hygiene training. Community practises improved hygienic behaviour, construct, maintain and use sanitary latrines and maintain other environmental sanitation aspects. Coverage and access of water supply increased through new and rehabilitated water supply schemes. Water Supply facilities operated, maintained and managed by communities and/or private sector. The capacities of the CHT institutions are enhanced in executing hygiene promotion, sanitation and water supply schemes. An active HYSAWA Fund Board is functioning under the leadership of Secretary, MCHTA for policy support and guidance. A functional relationship established with NGOs and other private service providers. Implementation Arrangements The Ministry of Chittagong Hills Tracts Affairs (MCHTA) will establish a Fund for Hygiene Promotion, Sanitation and Water Supply, to directly serve the poor communities. In support of the Peace Agreement, implementation will be made through the administrative structures as enacted by the Government. Administration of the Fund will be through a Board representing relevant institutions. Operation of the Fund will be the responsibility of the Regional and District Level Executive Committees, supported by Fund Support Units. There will be a CHT HYSAWA Board at national level chaired by the Secretary of the MCHTA. The Board will be responsible for overall implementation strategy for administration and management of CHT HYSAWA Fund Project. Inputs The Government of Denmark will contribute about Danish Kroner (DKK) million equivalent to Bangladesh Taka (BDT) 130 million, over a period of five years towards the implementation of the Project. The Danish grant will be used for implementation of vii

10 Project-financed activities. The Government of Bangladesh (GoB) is expected to contribute BDT 0.5 million as Customs Duty/ Value Added Tax (CD/VAT). The proposed budget in BDT and DKK for the Project is shown in Table 1. Table 1: Summary Budget Summary Budget DKK Ref Level/Location BDT DKK % A Institutional Strengthening and Management Costs B Water Supply Facilities C Hygiene and Sanitation Promotion 49,320,900 4,932,090 39% 47,461,000 4,746,100 37% 30,200,000 3,020,000 24% Sub-Total 126,981,900 12,698, % Contingencies 3,018, ,810 Total Danida Contribution 130,000,000 13,000,000 GoB Contribution (CD/VAT): 500,000 50,000 Total project Cost (Danida & GOB) 130,500,000 13,050,000 Assumptions and Risks The main assumption for successful implementation of the CHT HYSAWA Fund that the security situation in the CHT will allow for development projects to take place. It is assumed that the implementation of the Peace Accord is continuing and that both Bengalis and adivasi/ethnic minorities and all other parties involved in the CHT will uphold the spirit of the Peace Accord and support the development activities. Successful implementation will be based on the assumption that the GoB will fully support decentralisation as stated in the terms of the Peace Accord and that Local Government Institutions will be willing to participate in the programme and take part in decision-making and implementation. Security problems and unrest among the local communities pose risks that should be continuously monitored during the implementation. The institutional set-up in the CHT is complicated and there is a risk that the Local Government Institutions will not coordinate adequately, thereby causing a halt or delay in the implementation of activities. The insufficient capacity in Local Government Institutions to appropriately plan, monitor and coordinate may adversely affect the implementation of development activities. There is a risk that the priority given to WSS will be low and therefore the motivation for demanding safe water supply will be low. The development concerning these assumptions and risks will be continuously monitored during the implementation and appropriate mitigation strategies developed. viii

11 1. INTRODUCTION Denmark considers Bangladesh as one of the priority countries for bilateral development assistance. Most donor support, including Danida s, has been focused in the lowland areas of the country. This is due to the security situation during the last two decades in the Chittagong Hill Tracts (CHT). Following the signing of the Peace Accord in December 1997, the Embassy of Denmark (EoD) provided funds for a one-year pilot project (July June 2000) in the Rangamati district. The objective of the pilot project was to identify, test and disseminate technology and institutional options for provision of water supply and sanitation in CHT. A CHT component under the Water and Sanitation Sector Programme Support (WSSPS) Phase I was designed based on the lessons learnt from the pilot project. By February 2001, the component was ready for signing of the Government-to- Government Agreement. However, development works in CHT came to a standstill after the abduction of three Danida Project engineers in February The Government of Bangladesh (GoB) and the United Nations Development Program (UNDP) therefore agreed in May 2002 to undertake a risk assessment in the region and explore the possibilities for renewed development assistance. Accordingly, a Joint GoB/Donor Risk Assessment Mission was fielded in June The Mission s report was accepted in principle by the Government and made public on August 14, UNDP started a project Promotion of Development and Confidence-building in the Chittagong Hill Tracts (CHT) in It reopened the avenue to work again in the CHT. In August 2002, a Danish Aid Assessment Mission recommended that Danish support to the development of the CHT be resumed. Due to the poor health situation in the hills, the Assessment Mission furthermore recommended that support should be given without any further delay for the promotion of hygiene, sanitation and safe water supply. With this in mind, the mission also invited Non- Governmental Organisations (NGOs) and government agencies to submit concrete project proposals to the EoD. Subsequently, in October-November 2002, a Formulation Mission for a Water Supply and Sanitation Programme was fielded. The Formulation Mission undertook consultations in all three districts of the CHT, including discussions on possible institutional arrangements, in order to explore the best ways of providing improved hygiene, sanitation and water supply to remote and under-served communities, and taking into account the NGO proposals submitted to the EoD. Based on the discussions, the Mission formulated a first draft proposal for a Hygiene Promotion, Sanitation and Water Supply (HYSAWA) Fund in the CHT. The aim of the first draft proposal, which was translated into Bangla and widely distributed among relevant CHT stakeholders, was to facilitate further consultations among these stakeholders, in particular about the different options for the institutional set-up and their anchorage within the existing structures of the CHT. To facilitate these consultations, a workshop was held in Rangamati in May 2003 with the active participation from relevant government and NGOs. During the 1

12 workshop, participants reached broad consensus about the institutional set-up for the CHT HYSAWA Fund and presented valuable suggestions and comments with regards to the overall principles and implementation strategy. The draft Concept Proposal for Establishment of a HYSAWA Fund in the Chittagong Hills Tract was revised to incorporate the conclusions and suggestions from the workshop. It was formally presented to the Economic Relations Division (ERD) in June 2003 for their review and consideration. The Bangla version of the Concept Proposal was also shared with the relevant CHT stakeholders. Comments were received from the related Ministries/Divisions and Agencies 1 through ERD in August After a detailed consultation with the relevant CHT stakeholders and revision of the draft Concept Proposal, an inter-ministerial meeting was held in ERD in January 2004 where a formal agreement was reached on the proposed concept. Subsequently EoD formulated the draft Project Document titled, Hygiene Promotion, Sanitation and Water Supply Fund Project in the Chittagong Hills Tracts in July, A joint Appraisal Mission was fielded in September 2004 to assess and appraise the Draft Project Document. Again in April 2005 a joint Appraisal Mission on the Water Supply and Sanitation Sector Programme Support Phase II (WSSPS II) was fielded to review the projects under WSSPS II including the CHT HYSAWA Project. This Final Project Document is revised according to the recommendations of both the above mentioned the Appraisal Teams and comments received from the Ministry of Chittagong Hill Tracts Affairs (MCHTA) on the Draft Final Project Document. 1 Prime Minister s Office, Ministry of Chittagong Hill Tracts Affairs, Local Government Division, Planning Commission and NGO Affairs Bureau. 2

13 2. NATIONAL CONTEXT IN RELATION TO THE PROJECT 2.1 The Area and its People The Chittagong Hill Tracts (CHT) occupies a physical area of 13,295 sq. km, constituting ten per cent of the total land area of Bangladesh. It is surrounded by the Indian states of Tripura on the north and Mizoram on the east, Myanmar on the south and east and Chittagong district on the west. Approximately 1.1 million people living in CHT consist of approximately 50% ethnic minorities divided into 13 main tribal groups- Chakma, Marma, Tripura, Tanchangya, Mro, Murung, Lushai, Khumi, Chak, Khyang, Bawm, Pankhua, and Reang. The region comprises three districts: Rangamati, Khagrachari, and Bandarban and differs from the rest of Bangladesh in history, topography, ethnic composition, social organisation, religion and way of life. The districts comprise seven main valleys formed by the Feni, Karnafuli, Chengi, Myani, Kassalong, Sangu and Matamuhuri rivers and their tributaries, numerous hills, ravines and cliffs covered with dense vegetation, which are in complete contrast to most other districts of Bangladesh. The CHT can also be divided into two broad ecological zones: (a) hill valley and (b) agricultural plains. 2.2 Situation Review General The Poverty Report of the World Food Programme/ Bangladesh Bureau of Statistics (WFP/BBS 2003) indicates that poverty incidence in the region is higher than the national average of 48 percent for rural areas in Bangladesh. Access to safe WSS facilities in the CHT is generally limited because of the remote and scattered nature of many of the villages. Cultural, socio-economic and technical factors as well as a generally poor understanding of diseases and illness, and their causal relations with safe water use and sanitation practices contribute to the low utilisation of safe water and latrines and inadequate personal hygiene. Due to difficult terrain and long distances, isolated areas have been largely neglected by government extension services, and access to physical and social infrastructure is poor. Local planning through effective community participation can significantly reduce disparity of access to and use of social/ economical infrastructure such as water supply and sanitation facilities Hygiene and Sanitation The general hygiene practice and environmental sanitation (which, in addition to use of sanitary latrines, include management of animal excreta and other waste and cleanliness) are poor in CHT. In many ethnic communities, especially some in Bandarban district, it is a usual practice that human and animals live very closely and animal excreta remain scattered in immediate neighbourhood. Malaria is a deadly disease in CHT and worm infestation is common among children. Existing figures indicate that the sanitation (latrine) coverage in the districts of Khagrachari and Rangamati is 56.1% and 49.4% respectively. However, for the district of Bandarban, sanitation coverage is only 8.2%. 3

14 Use of latrines for defecation differs greatly according to age group. Young children are not expected to use latrines and their excreta are not thought to be polluting. A study in the CHT indicates that while around 45% of adults use some form of constructed latrine for defecation, around 97% of children under the age of five defecate in the open. The percentage of people practising safe hygiene practices, especially hand washing with water and soap after defecation is 7% in Rangamati district, 2% in Khagrachari and 1% Bandarban. Private producers of sanitary latrines do exist in the CHT, but tend to be concentrated in the hill towns, with limited access to the more remote communities living in the hills. It is important to note that the most common latrine type in CHT is made of packed earthen floor or concrete slab (without water seal) with a superstructure of bamboo and reeds. Table 2.1 provides the basic information related to water supply and sanitation service in CHT. Bandarban Khagrachari Rangamati Total population 2 230, , ,388 Percentage using safe water supply 3 Percentage having access to latrines 4 Estimated number of people 224, , ,386 without access to safe water Estimated number of people without access to latrines , ,102 Table 2.1: Water Supply and Sanitation Situation in CHT. School sanitation coverage is even lower than household sanitation. Typically, a primary school may have 2-4 poorly maintained units for up to 500 students. Teachers and headmasters sometimes use the same latrines, which further limits their use by students Water Supply Only 28% of the population of CHT uses safe water for drinking. This is far below the national average. The rest of the population get their drinking water from hilly holes, lakes and springs the quality of which is usually contaminated beyond safe levels, often as a direct result of unsafe sanitation practices in the area. Different studies reveal that about two-thirds of the households of CHT have access to tubewell facilities within one mile distance of their houses, as few as 3% of households 2 Source: BBS Source: CARE Source: CARE

15 actually own tube-wells. Low levels of use and access can be attributed to a number of factors. The geography of CHT and the remote and scattered location of villages mean that fetching safe water is physically very demanding as the communication system is poor and the paths are hilly, made even more difficult in the rainy season. In villages located at a high level above the ground it is difficult to install tubewells and keep them functioning due to adverse topography and high implementation cost. Where tube-wells do exist, those are often out of order and are rarely repaired or properly maintained. The low rate of ownership of water facilities by CHT people is directly related to their poor economic status. High concentrations of iron in groundwater can alter the colour of food and blacken the teeth. Lack of appropriate low cost water supply alternatives. 2.3 The Importance of the Project in the National Context Establishment of the HYSAWA Fund in the CHT is imperative in the national context. The WSS coverage in Bangladesh is considerably higher in other parts of the country than in the CHT. It is now widely recognised, as a paradigm of development, that poverty and water supply, sanitation and hygiene are inextricably interrelated. Establishment of the CHT HYSAWA fund to address the need for hygiene behavioural change and provide for water supply facilities will contribute substantially in eradication of poverty or at least curbing the poverty trends in CHT region. The government also underlines the importance of a pro-poor strategy for WSS. A number of Ministries including the Local Government Division of MLGRD&C have developed a pro-poor strategy for the WSS Sector. Establishment of the CHT HYSAWA Fund should be seen within the perspective and framework of government s efforts towards formulating the Pro-Poor Strategy for WSS, which will, in turn yield dividend for the underserved and under privileged CHT community in addition to its direct contribution in relation to the country s Poverty Reduction Strategy. 2.4 Relevant Planned Reforms, Policies and Legislation The CHT HYSAWA Fund draws on the National Policy for Safe Water Supply and Sanitation, 1998 and the Sanitation Strategy, The policy emphasises on gradual phasing out of subsidy from the sector with a safety net for the poor. The CHT HYSAWA fund has adequately taken this aspect into account. 5

16 2.4.1 National Policy for Safe Drinking Water Supply and Sanitation The aims of the National Policy for Safe Water Supply and Sanitation 1998 are to improve the standard of public health and improved environment and ensure that all people have access to safe water and sanitation services at an affordable cost. The policy acknowledges the role that the private sector and NGOs have played in applying innovative approaches to service delivery and awareness raising. There is also the recognition that provision of physical services alone is not a sufficient precondition for sustainability or for improved health and well-being of the people of Bangladesh. The main objectives are to: Bring about behavioural changes in relation to water and sanitation and reduce the incidence of water borne diseases; Build capacity at local level to deal more effectively with water and sanitation; Ensure proper storage, management and use of surface water and prevent its contamination. The major principles of the policy are: a) All sector development activities shall be planned, coordinated and monitored on the basis of the sector development framework; b) Participation of users in planning, development, operation and maintenance through local government and community-based organisations of the stakeholders; c) Development of water supply and sanitation sector through local bodies, publicprivate sector, NGOs, CBOs and women groups involving local women particularly elected members (of the local bodies in the sector development activities); d) Gradual community cost-sharing and introduction of economic pricing for services; e) Assigning priority to under-served and un-served areas; f) Adoption of water supply and sanitation technology options appropriate to specific regions, geological situations and social groups; g) Local Government institutions (LGIs) to bear increasing share of capital cost The Peace Accord 1997 On 2 nd December 1997, the Parbattaya Chattagram Jana Samhati Samiti (PCJSS) and the GoB signed the CHT Peace Accord. The Peace Accord includes the provision for surrender of weapons, return of refugees from exile in India, and formation of the Chittagong Hill Tracts Regional Council (CHTRC) with a degree of functional powers. One of the main objectives of the Peace Accord is to decentralise administration and responsibility to locally elected Hill District Councils and to set up a Land Commission to solve the issue of rights to and ownership of land. 6

17 2.5 Institutional Framework Administration in CHT Like in the rest of the country the region has district administration under Deputy Commissioners (DCs). There are 3 districts, 25 Upazilas and 110 unions in the CHT. The CHT also has three traditional administrative and revenue circles known as the Chakma, Bohmong and Mong Circles. A hereditary Circle Chief or Raja heads each Circle. The Chiefs exercise specific duties and power in collection of land revenue and settlement of disputes other than crimes against the state. The circles are further sub-divided into 377 mouzas, each under a headman. A mouza is a government revenue unit, which typically consists of several villages under a Headman. DCs in consultation with Rajas appoint Headmen. The Headmen act as arbiters in local disputes and collect taxes on behalf of the Raja. Each village has a Karbari, who is appointed by the Raja in consultation with the concerned Headman and residents of the village. Headmen and Karbaris have much influence within their areas. Because of this traditional leadership, there are important differences in administration between the CHT and the rest of the country. In the CHT DCs consult Chiefs on important matters affecting the administration of the CHT (The CHT Regulation, 1900). Chiefs and Headmen collect land taxes and retain a part of it. However, since land taxes have not increased significantly in several decades, revenue derived from land taxes hardly covers the cost of its administration and collection. The Peace Accord resulted in the establishment of two new institutions; the Ministry of Chittagong Hill Tracts Affairs (MCHTA) and the CHT Regional Council (CHTRC) to coordinate and supervise the development activities under the jurisdiction of the three District Councils. By-laws spelling out the roles and responsibilities of these bodies are however yet to be finalized. Upazila and Union Parishads are under administrative control of MLGRD&C whereas The Hill District Council and Regional Council report to MCHTA. However, on 24 th May 1998, Parliament passed some amendments to the Hill District Council Act of 1989 to be consistent with the CHT Peace Agreement. The amendments include an increased number of "transferred subjects" for the three Hill District Councils to implement local development projects with funds received from the Government. The transferred government line departments include Department of Public Health Engineering (DPHE) and Health Dept Ministry of Chittagong Hill Tracts Affairs The MCHTA has been created as a direct result of the Peace Accord, and is responsible for coordinating development activities in the CHT. The MCHTA is responsible for preparation of development plans, supervision of Regional and Hill 7

18 District Councils, Chittagong Hill Tracts Development Board (CHTDB). The MCHTA has its own development priorities and budget and implements both GoB and donor-assisted projects. However, the MCHTA have not yet developed mechanisms for preparing, processing and supervising development projects, and may need support and strengthening in these areas. The MCHTA is, however, gradually taking on more responsibility as coordinating and sponsoring agency for development in CHT CHT Regional Council The Peace Accord led to the establishment of the Chittagong Hill Tracts Regional Council (CHTRC) to coordinate and supervise the development activities under the jurisdiction of the three District Councils. It has 22 elected members and its tenure is five years. The Chairman shall be a tribal with a status of a state minister. Twothird of the members shall be elected from among the tribes. The Council shall determine its procedure of functioning. The Composition of the Council shall be as follows: Chairman 1 Members tribal (men) 12 Members tribal (women) 2 Members non-tribal (men) 6 Members non tribal (women) 1 Among the tribal male members, 5 persons shall be elected from among the Chakma tribe, 3 persons from the Marma tribe, 2 persons from the Tripura tribe, 1 person from the Murung and Tanchongya tribes and 1 person from the Lusai, Bawm, Pankho, Khumi, Chak and Khiyang tribes. Among the non-tribal male members, 2 persons shall be elected from each district. Among the tribal women members 1 woman shall be elected from the Chakma tribe and 1 woman from other tribes. The Regional Council is a statutory body created with powers of supervision and coordination on subjects such as law and order, general administration, development, traditional laws and social justice, and the power of giving licenses for heavy industry. Although the Regional Council Act has been enacted, there is delay in the formulation of its rules and regulations Hill District Council Three Hill District Councils (HDCs) are working in the three CHT districts. There is a provision of a Chairman and 33 members in each HDC, of which the Chairman and 22 members are from indigenous ethnic groups. The size of the council staff varies, as does the number of transferred departments. District councils receive block allocations directly from the MCHTA and other sources, for which the Councils prepare annual work plans and budgets. District Council works with and reports to the Regional Council and the MCHTA. The 8

19 Chairmen of the HDCs participate in monthly coordination meetings with the MCHTA, where Regional Council and the CHTDB also attend. In the districts, the District Development Coordination Committee holds monthly meetings with government departments, including the CHTDB CHT-based NGOs After the 1997 Peace Accord, local NGOs have started emerging in the CHT. Most of these organisations have their roots in small community level initiatives. They have minimal financial resources and are at least in part serviced and staffed by a number of part time volunteers. Most of the local NGOs run a number of development programmes within their range of activities, of which WSS activities are only a part. Although local NGOs are willing and motivated towards implementing WSS activities, the lack of human and financial resources as well as the necessary level of knowledge and skills is a common problem. 2.6 Current Water Supply and Sanitation Interventions in CHT Government of Bangladesh (GoB) Project: Through the GoB IV project, DPHE provides water supply facilities in the CHT using traditional technologies like shallow or deep tube wells with deep-set or Tara hand pumps and some ring wells. DPHE also produces and sells concrete slabs and rings for water-sealed latrines at latrine production centres. Recently LGD has made it mandatory to spend 20% of the Annual Development Programme (ADP) block allocation to UPs for sanitation. Out of this amount for sanitation, 10% should be spent for awareness campaign and 90% for free delivery of sanitary latrines to poor. European Commission Programme: The European Commission s National Indicative Programme for Bangladesh identifies the CHT as a priority area. A programming mission to the CHT in late January 2002 concluded that it was premature to specify all activities to be supported by the EC. The recommended immediate actions with regards to water supply would take the form of a natural resources development study to identify areas for small-scale intervention as well as larger scale activities in the long term. UNICEF Supported Programme: UNICEF supports a Community Development Programme in collaboration with the CHT Development Board. WSS activities, which is only one element of a broader programme, focuses on village centres ability to create awareness on safe drinking water supply, use of hygienic latrines and development of appropriate water supply technologies/options. Danida Interim HYSAWA Project: Danida is funding an Interim HYSAWA Project in the CHT through NGO Forum to build the capacity of Hill Tracts NGO Forum and eleven local NGOs to prepare and manage water supply and sanitation projects and to provide services in hygiene promotion, community mobilisation and design, construction and sustainable management of water supply and sanitation. 9

20 DFID assisted Programme: Department for International Development (DFID) is supporting NGOs for WSS activities through Water Aid Bangladesh in the CHT region. UNDP assisted Programme: The UNDP is supporting a project titled Promotion of Development and Confidence Building in CHT. The duration of the project is from October 2004 to September Under its different social and economical support activities hygiene and sanitation would specifically be addressed under the Critical Health Intervention component, however, subject to availability of funding. The project is using participatory community development approach, e.g. Para Development Committees, to implement demand responsive schemes, which may include water and sanitation. The Project uses Local government/central government structure at Union, Upazila and district levels. The Regional Council and the Hill District Councils are also represented in committees at the regional and district levels, respectively. 2.7 Poverty and Environment Poverty Reduction Strategy The GoB published a first version of A National Strategy for Economic Growth, Poverty Reduction and Social Development - an Interim Poverty Reduction Strategy Paper in March In June 2003, the Government then adopted a medium term macroeconomic framework covering the period , committing to spend 2.5% of the Gross Domestic Product (GDP) for direct poverty reduction projects during this period. Apart from lacking a clear, concrete, strategy for addressing critical issues such as corruption, governance, women s advancement, etc., this first version of the Interim PRSP at best suggested an implicit or indirect relationship between the water and sanitation sector and poverty reduction. Following a series of further national, divisional and local-level consultations, and after incorporation of comments made by respective line ministries, a final draft of the full PRSP, called Unlocking the Potential National Strategy for Accelerated Poverty Reduction, came out in July The present draft PRSP gives far more importance to WSS. Emphasising the role of the WSS sector in relation to poverty reduction, the draft PRSP among other things states that: Sanitation and water are, together, a critical element of the PRS s seven-point strategic agenda, and, thus, considered 'key to comprehensive acceleration in the pace of poverty reduction; Water supply and sanitation are critical elements of human development, one of the eight specific avenues through which the goal of accelerated poverty reduction will be pursued; and 10

21 Water supply and sanitation are among the priority areas to be emphasised in order to achieve accelerated growth and bringing a pro-poor orientation in the growth process. Specific goals, targets and priorities for water supply and sanitation interventions are incorporated in the PRSP s medium terms policy matrices of several other subsectors, including water resources development and management; education; health, population, nutrition, water and sanitation and food safety; children advancement and rights; and environment and sustainable development. WSS is furthermore seen to be an important requirement for ensuring participation, social inclusion and empowerment of, in particular children, tribal people and disabled. Aiming at the overall achievement of MDGs by 2015, the draft PRSP sets the following specific WSS targets for the medium term (2006/7): Reduce the number of population without access to safe water (estimated at 26% in 2004) by half; Reduce the number of population without access to sanitation (estimated at 66% in 2004) by half; Reduce water borne morbidity and mortality; Reduce number of population exposed to arsenic contamination; and Ensure access to sanitary community latrines in villages, bazaars, mosques. The present draft PRSP also gives due attention to critical, cross-cutting, areas such as the need for increased focus on women s advancement, empowerment of disadvantaged groups, safety nets for the poor, promotion of good (local) governance, anti-corruption, and environmental sustainability. Further work may be required on governance issues, and further details are expected on the three year rolling investment programme and specific indicators for monitoring and evaluation. The PRSP, including the processes followed to develop it, has generally been well received by the development partners, and many are in the process of adjusting their development assistance programme to focus directly on the priorities and goals of poverty reduction laid down in this important document. Pro-poor Strategy for WATSAN Sector Recognising the need to develop operational guidelines to increase the focus of ongoing and future WSS programmes on poverty reduction, and, thus, to better target the poor, the National Forum for Safe Drinking Water Supply and Sanitation developed a pro-poor strategy. The strategy, formally approved by the Forum in January 2005, explains: (i) how to identify the poor and hardcore poor; (ii) how to target the poor; (iii) what service level to provide to the poor; and (iv) what safety net (subsidies or otherwise) to provide to the poor. Environmental Policy 1992 The GoB Environment Policy seeks to associate as closely as possible with all international environmental initiatives and agreement whilst also maintaining the ecological balance in the country, protecting the country against natural disasters, 11

22 regulating polluting industries and ensuring sustainable use of the country s natural resources. The Policy components are numerous and specific, relating to agriculture; industry; health and sanitation; energy and fuel; water development, flood control and irrigation; land; forest, wildlife and biodiversity; fisheries and livestock; food; coastal and marine environment; transport and communication; housing and urbanisation; and population. The key elements of the policy are (as objectives, Section 2): Maintenance of ecological balance and overall progress and development of the country through protection and improvement of the environment. Protection of the country against natural disasters. Identification and regulation of all types of activities, which pollute and degrade the environment. Ensuring sustainable use of all natural resources. Active association with all environment related international initiatives. The section that is relevant to water supply is on Water Development, Flood Control and Irrigation (Section 3.5.6) Ensure sustainable, long-term, environmentally sound and scientific exploitation and management of the underground and surface water sources. 12

23 3. DESCRIPTION OF THE PROJECT The Chittagong Hill Tracts Hygiene Promotion, Sanitation and Water Supply (CHT HYSAWA) Fund is designed to reduce the disparity in health and hygiene condition of the Chittagong Hill Tracts people in comparison to the others parts of the country. The project focuses on creating a fund to support hygiene promotion activities, improvement of the water supply facilities and strengthening the existing CHT institutions. 3.1 Objectives The development objective of the programme is: To support improvement in health of the peoples in the CHT through improved hygiene, sanitation and safe water practices and provisions. The implementation of the project shall support the peace process through capacity building of the institutions in the Chittagong Hills. The immediate objectives for the CHT HYSAWA Project are: Immediate objective 1: To increase awareness for improved hygiene behavioural practice and sanitation promotion. Immediate objective 2: To improve access to water supply services and facilities especially for the underserved communities in the CHT. Immediate objective 3: To establish and operationalise an appropriate institutional arrangement for administration and operation of the HYSAWA Fund. 3.2 Implementation Approach and Strategy Demand Responsive Approach The primary focus of the CHT HYSAWA Fund Project will be based on demand generation through awareness promotion and training. The Project will encourage improved hygiene behaviour and will respond to the demand of the people with special attention to the areas and groups with the highest need. The expressed demand will be judged by the willingness to participate and contribute in implementation by forming and supporting community organisations. It will also include mobilisation of community contributions for the implementation and Operation and Maintenance (O&M) of improved facilities and participation in planning and monitoring. Communities who are able to express demand and organise contributions first will be given priority in implementation. However, no community with a high need will be excluded, and communities which take longer to organise their contributions will be given an opportunity to participate at a later date. The Fund will develop criteria to safeguard the interest of un-served and underserved groups. The criteria will 13

24 include such factors as present coverage, existence of minority groups, remoteness and expression of improved water supply and sanitation as a high priority. The eligibility criteria for funding community schemes (Annex 2) gives due emphasis to including the poor and the vulnerable groups. Additional area specific criteria will be formulated so that some of the remotest parts of the region are essentially included in the scheme selection process. The scheme prioritisation method will be further detailed in the Community Scheme Implementation Manual of the OIP (outline given in Annex 5; Part 2). Attention in the procedures will be given to the fact that access to banking facilities is difficult for remote communities. The primary target groups of the CHT HYSAWA Fund are the most disadvantaged communities in CHT i.e., the women, poor and particularly vulnerable groups with special focus on the adivasi/ethnic minorities. The secondary target groups are the different local organisations and CHT based institutions. The capacity building of these organisations and institutions for fund handling and project planning, implementation, and operation and maintenance will be given priority. The principles that will be used to determine the types of projects eligible for funding by the CHT HYSAWA are given in the box below: Poverty Targeting: Projects shall benefit the most disadvantaged communities in the CHT i.e. the women, the poor and particularly vulnerable groups with special focus on adivasi/ethnic minorities. The HYSAWA Fund will, in line with the draft PRSP and Pro-poor strategy for the WSS Sector, ensure (i) targeting benefits to the vulnerable groups; (ii) inclusion, participation and voice especially of women and vulnerable groups; and (iii) appropriate linkage with local government and other service providers. Eligible Applicants: The HYSAWA Fund will not provide resources directly to individuals to finance commercial undertakings or improve private properties. Detail eligibility criteria are shown in Annex 2. Some area specific criteria to ensure the inclusion of the remote underserved areas and other rules and procedures will be formulated in the Community Scheme Implementation Guideline (outline given in Annex 5, part 2). Government Programmes and Expenditures: The HYSAWA shall not supplement recurrent budget expenditure of the Government; neither shall it replace normal sector activities and responsibilities of the Government. Sustainability: The HYSAWA will not finance projects that require recurrent cost to operate, for example generators. It does under the hygiene promotion facility have the possibility to finance some equipment, which do require recurrent expenditure, such as motor cycle or bicycle, provided the applicant s business size makes it plausible that the additional recurrent expenditure can be supported, or they have contracts with communities, from the overhead of which, the recurrent cost can be sustained. Labour versus Capital Intensive Implementation: Technical solutions shall be appropriate to the situation of the beneficiaries. Equipment purchases, which may have health and social impacts can be eligible while high cost and capital intensive equipment are not. Project Cost and Benefits: Projects shall employ appropriate and robust designs. Therefore appraisals shall compare alternative technical solutions to ensure that only the appropriate and least cost portion is financed. Sectoral Policies: All projects shall be consistent with existing national sector policies and strategies such as the draft PRSP, National Policy for Safe Drinking Water Supply and Sanitation (1998), National Water Policy (1999), etc Applications 14