Water and Sanitation Program End Year Report FY 2008 The Water and Sanitation Program is an international partnership for improving water and sanitation sector policies, practices, an d capacities to serve poor people.
WATER AND SANITATION PROGRAM END YEAR REPORT FY2008 TABLE OF CONTENTS EXECUTIVE SUMMARY...i Introduction...1 I. STATUS OF IMPLEMENTATION...1 A. GLOBAL THEMES...1 (i) Programmatic Approaches: Roadmaps for Sector Development...1 (ii) Country M&E Systems and Sector Monitoring...2 (iii) Institutional Reform and Capacity Building...3 (iv) Finance...4 (v) Domestic Private Sector Participation...5 (vi) Sanitation and Hygiene Behavior Change Programs...6 (vii) Communications for Reform...8 (viii) Global Practice Teams (GPTs) and Global Knowledge Sharing Initiatives...9 a. GPT - Rural Water Supply and Sanitation...9 b. GPT - Water and Sanitation Services for the Urban Poor...9 c. GPT - Sanitation & Hygiene Global Practice Team...10 d. GPT - Strategic Communications...10 e. GPT - Finance...10 f. GPT - Scaling up Handwashing Behavior...11 g. Global Initiative - Secretariat for the Public-Private Partnership for Handwashing (PPPHW)...11 h. Global Initiative - Benchmarking...11 (ix) /Local Learning & Knowledge-Sharing...11 B. STRUCTURE AND MANAGEMENT...13 (i) WSP Strategy Update...13 (ii) Strengthening WSP s M&E System...14 (iii) External Evaluation of WSP for FY2004-2008...15 II. FY2008 Budget and Expenditure...15 III. Delivery Status...16 IV. Human Resources...17 V. Fund Raising Activities...17 (i) Update on Funding Strategy Indicators...18 ANNEX Annex 1: WSP Achievements in Focus Countries in FY2008...19 Annex 2: FY08 Final Project level Disbursement against Budget...29
EXECUTIVE SUMMARY The End Year Report (EYR) provides a summary of the Water and Sanitation Program s (WSP) activities and achievements against the FY2008 Business Plan (July 1, 2007-June 30, 2008). The EYR is a critical component of WSP s strategy and business plan monitoring process and also provides an opportunity for WSP staff and management to review factors affecting progress during the year, in order to help WSP replicate successful approaches, continue targeted learning efforts, and support reforms that will ensure the adoption of sustainable investments in the sector that in real terms help people gain access to improved water and sanitation. In FY2008, WSP continued to support change processes at the country level; fomenting partnerships and dialogue that lead to programmatic approaches; promoting innovation and knowledge creation and dissemination; and supporting clients to create customer-responsive, equitable access to service provision. During FY2008, WSP worked with countries to develop roadmaps for sector development to help achieve the water supply and sanitation (WSS) MDG targets. WSP also supported country monitoring and evaluation (M&E) systems by helping clients build and improve sector information and monitoring systems (SIMS) to track progress both at national, local government and utility levels. In Burkina Faso, the government has formally adopted the WSP-supported WSS MDG roadmap and investment program, an important step in awareness and commitment to progress on MDGs. Work in Kenya and Mozambique continued on developing roadmaps, and an action plan framework has increased sector planning and budgets in both countries. These governments, among others, have also followed the commitments of the ethekwini Declaration, endorsed at AfricaSan+5, in which Ministers resolved to create separate budget lines and to set aside at least 0.5 percent of GDP towards improving the sector. The Ministry of Agriculture, Water and Fishery Resources of Burkina Faso announced significant allocations for sanitation and hygiene, particularly in rural areas that previously received no specific allocations from the State budget. Some USD 1.3 million was set aside in the 2008 budget for institutional sanitation facilities and hygiene promotion in rural areas, while the allocation for sanitation in urban areas increased by 40 percent to US$1 million. In Kenya, the government has set up a separate ministry and department specifically for Public Health and Sanitation, previously under the Health ministry. The combined allocation for health including the ministries of Medical Services, and Public Health and Sanitation was increased from USD 514 million to USD 537 million for the current fiscal year. The Country Status Overview (CSO) report, a regional initiative by WSP, UNDP, EU Water Initiative, African Development Bank (AfDB) and the African Minister s Council on Water, continues to be recognized as a critical tool for governments to assess WSS sector status and track progress towards meeting the MDGs. In several countries, including Ethiopia, Benin and Mozambique, WSP helped develop conceptual frameworks for the development of M&E instruments, indicators and procedures. The WSP-Africa team has strengthened partnerships with global and regional partner organizations, such as UNICEF, WHO, and AfDB, with a goal to developing and maintaining a shared set of indicators and understanding of sector progress. Following on the successful collaboration of the 2006 CSO, WSP worked with AfDB on a 32-country review of sanitation as an input to the regional sanitation conference, AfricaSan+5. During the past year, WSP continued to support institutional reform and capacity building continued in all focus countries. This remains an important component of the WSP-South Asia program due to strong evidence that access to urban water services in the region remains inequitable and the quality of services inadequate, despite significantly increased funding and higher levels of coverage. WSP s work in this region has therefore placed great emphasis on working with national and next tier governments on the design and refinement of fiscal incentives for institutional reform and building associated capacity. In country contexts as diverse as Mozambique, Zambia, Ecuador,, Pakistan and Bangladesh, WSP has worked with different levels of government and other stakeholders to facilitate reforms on i
decentralization, delegated management, institutional reorganization, systems design, planning and capacity enhancement at utility level, among others. WSP s emphasis on institutional change has also helped explore the scope for market finance in the water sector, transactions leveraging market finance to the water sector and on developing sector financing strategies. Support in these areas has resulted in increased use of public (and/or donor) finance by donors and/or national governments to leverage market-based resources for the WSS sector in selected focus countries in Africa. FY 2008 was the last full implementation year of the Domestic Private Sector Participation Initiative (DPSP). The DPSP supported over 25 programs worldwide and engaged across a broad spectrum of activities from transactional support to institutional and regulatory reform. A global workshop in June 2008 provided an opportunity to share the knowledge gained from DPSP s work during the past three years, acknowledging the existence of a vibrant and diverse private sector and the importance of a strong upstream policy environment and downstream institutional and financial capacity support. Participants shared a wide range of insights on the successes and constraints to develop private participation in the domestic water and sanitation sector in each of the countries, and identified potential future areas of focus and support to strengthen public private partnerships in the sectors. WSP continues to place significant emphasis on the sanitation sector and is an active partner of the 2008 UN International Year of Sanitation and Beyond (IYS). The UN resolution has galvanized the international community to do more towards meeting the main objectives of the IYS, in accordance with the IYS Action Plan. In East Asia and Pacific, WSP published a suite of publications delivered from its Economics of Sanitation Initiative (ESI). The ESI Indonesia shows that in 2006 negative impacts of poor sanitation cost the country an estimated US$6.3 billion, or 2.3 percent of the country s gross domestic product. The report found that the greatest contributors to overall economic losses were health and water resources. The reports have gained significant media attention across the region, and preparations are under way for the second phase of ESI in FY2009 a detailed field assessment of the cost-benefit of alternative sanitation options in each country. WSP is also implementing two innovative global projects on Scaling Up Sanitation and Scaling Up Handwashing. WSP knowledge activities during the past year promoted increased awareness and sharing lessons and influence national policies on the sanitation sector. During the year, WSP supported 3 regional sanitation conferences, AfricaSan+5, LatinoSan, and EASAN, and is supporting the preparation of SacoSan, which is scheduled to take place in November 2008. WSP s Global Practice Teams (GPTs) continues to be a major platform within WSP from which the program continued to draw global knowledge and local expertise. During the year, a new GPT on Handwashing was added to the existing 5 GPTs: Rural, Urban, Sanitation & Hygiene, Communication and Finance. The new GPT on Handwashing promoted cross-regional fertilization by initiating interregional studies and working to consolidate approaches to increase the program s impact and influence on sector reform policy. WSP is also improving the way in which it communicates its successes and challenges by strengthening its communications for reform activities. Communication and advocacy activities in Benin, the DRC, Ethiopia,, Niger, Burkina Faso, Senegal, Kenya, Zambia and Uganda have focused on building political goodwill, acceptance and support for WSS sector reforms; sustaining the momentum of the reform processes; stimulating policy dialogue and mitigating the political risks associated with sector/utility reforms. Other communication efforts have created increased demand from clients and the World Bank s operational teams to provide support for communications for reform. Two such communication efforts carried out in FY2008 are Agua Latina, an electronic newsletter of the WSP Latin America and Caribbean communications team, and a joint international learning event organized by the WSP East and South Asia teams. ii
WSP s FY2008 achievements are the results of continued implementation in the programs and project planning. At year end, 78% of the 137 projects were progressing well on target, while 18% were delayed and 4% were canceled. WSP continues to take measures to improve in areas of its control, such as recruitment, procurement and trust fund management. WSP ended FY2008 with USD 39 million in disbursements, representing a growth of 38% in disbursement performance over the previous year. FY2008 marked a transition year for WSP s program strategy, management, and operations as the program continued to scale its activities to increase its strategic impact. WSP prepared a new global strategy, FY2009-2018, and a medium term sub-sector strategy on sanitation, endorsed by the Council in July 2008. These strategies outline how WSP proposes to support client countries develop and promote sustainable practices that will increase access to water and sanitation services and hygiene promotion for all, especially the poor. The Council s endorsement of the documents allows WSP to put into operation several new components of business management and monitoring going forward: 1) its Finance Strategy, endorsed by the Council in 2005, which aims to shift towards more programmatic core trust funds with multi-donor trust funding; and to increase its current level of funding to support the program s scaling up strategy; and 2) a three year rolling business plan, starting with a FY2009-FY2011 Business Plan, endorsed by the Council in July 2008. During FY2009, WSP will continue to make efforts to operationalize the Program s proposed results framework and M&E efforts by launching country pilots with a view to scale up and replicate, while drawing lessons, as we go forward. Finally, FY2009 marks the scheduled five year external evaluation for WSP. We look forward to the external evaluation to provide a fresh perspective on WSP s strategy evolution and impact on the ground. iii
Water and Sanitation Program Fiscal Year 2008 End Year Report (July 1, 2007 June 30, 2008) INTRODUCTION The End Year Report (EYR) provides a summary of WSP s FY2008 business activities. The report also presents an overview of WSP s key projects along the main thematic areas, budget and expenditures, a summary of project delivery status, human resources and fund raising activities. At the end of the Fiscal Year in June 2008, the WSP work program included 137 projects with an average expenditure of approximately USD $280,000 per project. The total expenditure for the Program at the end of the FY was USD 39 million. The EYR is organized into five sections. Section I presents the status of implementation at the end of 2008. Section II summarizes the budget and expenditure results, while Section III focuses on the status of delivery of the work program. Section IV presents an update on the human resources and staffing program. Section V reports on fundraising activities. The report is complemented by a series of annexes showing the detailed status of each activity at the country, regional, and global level. Per agreement with donors, detailed progress sheets for each activity during the review period can be found on the WSP website (www.wsp.org). I. STATUS OF IMPLEMENTATION This section highlights the main activities and results achieved from implementation of the business plan during the year, along the main themes under which the various projects fall, but based on specific actions and progress at country level. This section is divided into two streams. The Global Themes section reviews the activities under the nine themes listed in the FY2008 Business Plan, many of them linked to the Global Practice Teams areas of work or global projects. The Structure and Management portion of this report provides an update on the organizational improvements made by WSP in FY2008 and which will continue into FY2009 and beyond. A. GLOBAL THEMES (i) Programmatic Approaches: Roadmaps for Sector Development WSP is supporting countries to accelerate the implementation of reforms to achieve the water supply and sanitation (WSS) Millennium Development Goals (MDGs) targets. In Africa, the focus is on implementing sector reforms, improved governance, development of road maps, financing strategies to support capacity development for national and regional policy makers. In all of the 12 focus countries, WSP supports and promotes not only roadmap development, but also sector coordination and harmonization. The roadmap development process has been instrumental in supporting countries to move to programmatic approaches and greater harmonization by bringing stakeholders together to develop national programs supported by governments and development partners. In a number of countries, this is also resulting in increased budget allocations for the sector. Burkina Faso has formally adopted the WSP-supported WSS MDG roadmap and investment program, which are now under implementation and funded through a coordinated effort from all major donor agencies. Over 30% of the required financial resources to meet the water MDG target were mobilized during the first year. In Kenya, sector allocations have increased by more than 20% over a three-year period In FY2008, the Government is focusing on the Urban Poor, Sanitation, and the Rural Poor. In Mozambique, WSP support to the rural water supply and sanitation roadmap process has helped improve sector planning at the provincial level in several provinces. The remaining task is to support the government in preparing guidelines on the use of 1
funds decentralized to provinces and districts for investment in and maintenance of water supplies and sanitation. Senegal held the first decentralized Joint Sector Review in Africa with support from WSP. PEPAM, the national program for implementing the MDGs on water and sanitation, followed up the success of their first joint sector review last year in Dakar by expanding the process to include all 321 rural districts. The process attempted to ensure that budget interventions, off-budget interventions, and projects (such as those by NGOs) are based on demands expressed by districts and local stakeholders. Through these processes, stakeholders have been able to agree on levels of access and priorities, and mapped ongoing operations in their respective regions. The Stakeholders used the water and sanitation plans developed for about 150 districts since 2006 to frame the discussions. Ultimately, a three-year rolling operational plan for each region and a consolidated report will be produced to ensure that districts and the local electorate have their say in the national budget arbitrage and sector review. The outputs so far have served as inputs to the preparation of the forthcoming World Bank and AfDB operations and parts of the government 2009 budget. Over time, these efforts are expected to lead to increased resource allocations. During this International Year of Sanitation, WSP has also played a pro-active role in elaborating joint funding arrangements for the sanitation component in Zambia s national WSS program (NRWSSP) which will now be co-financed by UNICEF, IDA and WaterAid with related policy development work to be co-financed with IDA. In Benin, WSP has been instrumental in supporting the government in the development of an Urban Sanitation Strategy paper to help guide policy and investments in the sanitation sub-sector. Moreover, WSP support in fragile/post-conflict states has led to positive results, such as the development of a pro-poor strategy in the Democratic Republic of Congo (DRC). The strategy, adopted by Government of DRC in May 2008, has now been included in the World Bank urban water investment project under preparation. WSP also supported the government to develop a concept for scaling up RWSS. Based on this concept the government, in partnership with donors, will be launching implementation of the program in three provinces in the country. In many of our focus countries, policies and sector programs are now in place. Looking ahead, WSP will focus its country support and knowledge work on implementation issues and on monitoring through Country Status Overviews at regional levels. (ii) Country M&E Systems and Sector Monitoring WSP activities under this theme seek to strengthen sector planning, resource allocation, domestic and donor accountability by helping clients build and improve sector information and monitoring systems (SIMS) to track progress both at national, local government and utility levels. SIMS aims to provide a strong feed-back mechanism to encourage sector learning: a means of assessing what works and what does not in order to make incremental improvements to the equity, efficiency and effectiveness of sector spending and to assess and adapt existing sector policy. In response to country and development partner demand for support in strengthening country-level monitoring, WSP-Africa has responded both by directly supporting country SIMS (Senegal, Ethiopia, Mozambique, Tanzania, Benin, and Kenya) and by working with organizations with a regional WSS sector monitoring interest to coordinate support and improve regional reporting in partnership with AMCOW, AWF and AfDB, JMP, UN Habitat, UNSGAB, SDC, BMZ/GTZ, WaterAid and ANEW. Country support to SIMS comes in four forms: a) helping countries build their national WSS sector M&E systems; b) providing technical assistance to national analytical units mandated to deliver sector analysis; c) develop and test monitoring approaches/ tools; and d) specific (ad hoc) analytical inputs to sector review processes. The combination of support varies across countries in response to demand (see 2
examples below). Due to high level of demand from countries, WSP-Africa has had to prioritize its support carefully with countries where resources are not immediately available. During FY2008, WSP helped develop conceptual frameworks with several countries, including Ethiopia, Benin and Mozambique. WSP has continued towards supporting the development of a full set of M&E instruments, indicators and procedures for specified countries. In FY08, WSP developed and started the piloting of a mobile-to-internet inventory and monitoring platform for (non) piped systems. The platform has dedicated online user interfaces for various users such as the sector coordination unit, PEPAM, various ministry departments and projects/ NGOs etc. Key innovations are the participation of water provider manager in updating the system regularly using new information and communication technologies (NICT, the PPP arrangement with Manobi, a local NICT firm, which will provide the service and run the platform, not just develop the system to be used as well as the attempts at developing cost recovery principles in order to making users pay for the services rendered. After the testing period ends early FY09, discussions will be held with the client in order to scale it up in Senegal as well as in other countries based on demand. WSP also supported the creation of a partnership between PEPAM and ANSD (bureau of statistics) in order to make better use of house hold surveys. The support is ongoing and is expected to give the sector better information on sanitation, texture to coverage and improved questionnaire for the next poverty assessment planned for early 2009. In Senegal, the implementation of the sector SIMS is well underway and WSP is continuing to support the Programme d eau potable et d assainissement du Millénaire (PEPAM) sector analytical and coordination unit. In Tanzania a Quality of Service Delivery Survey (QSDS) for the national Rural Water Supply and Sanitation Project was implemented. The focus of the survey was the relationship between communities, service providers and district water departments. In addition to the activities in the countries mentioned, there have been requests from the governments of Mali, Zambia, DRC and Malawi made through the African Development Bank (AfdB) and WSP s Advisory Committee. Unfortunately, WSP has not had the resources to fully respond to these requests. Through these activities WSP has built closer partnerships with the WHO/UNICEF Joint Monitoring Program. This led to collaborative initiatives aimed at improving dialogue between regional and country monitoring systems through a) regional awareness raising workshops; b) the Drivers of change in the WSS sector debate at Africa Water Week; and c) in bringing international agencies involved in sector monitoring together to outline a new generation of WSS monitoring tools that have been presented in Stockholm August 2008. Sector monitoring continues to be a strong component of the partnership with AfDB. Following on from collaboration on the 2006 Country Status Overview, WSP worked with AfDB on a 32-country review of sanitation as an input to AfricaSan+5. In November 2007, WSP and AfDB began initial discussions on the methodology for a second CSO report. During Africa Water Week AMCOW formally requested that WSP and AfDB work together on a follow up CSO report. (iii) Institutional Reform and Capacity Building WSP provides policy advice, capacity enhancement support and knowledge management aimed at enhancing institutional change and a credible supportive investment climate in the water and sanitation sector. This has been a particularly strategically important activity in WSP-South Asia. This role involves more than training, as capacity building tends to be more effective if it occurs in the context of institutional reform. For example, the functions of policy making, oversight and regulation and service provision are often not clearly delineated, which leads to conflicting objectives in the sector, a lack of incentives for good performance, and a lack of accountability. WSP thus engages clients and sector stakeholders in policy dialogue, and provides technical advice and networking support between different agencies to promote reforms. 3
Across all regions, WSP has been working with clients in developing principles of performance improvement planning for urban water and sanitation service providers, linking this to benchmarking, project preparation and monitoring, and facilitated regional exchange and knowledge sharing on such initiatives, often in collaboration with regional utility networks (SAWUN, SEAWUN). Typically, WSP engages at all levels: learning from on-the-ground service provider level experiences to inform higher level policy and strategy and also to build up a range of relevant lessons for comparison and learning. In all regions WSP s role is often to raise awareness of alternative institutional options, possible roadmaps for reform, and the need for and options for process of reform that would be responsive to sector needs and credible among stakeholders. WSP s capacity building role is not confined narrowly to water and sanitation institutions. The constraints on performance entail more than limited capacity or internal organizational factors within the water and sanitation sectors. The institutional arrangements for the sector cannot in isolation from the broader intergovernmental context. Addressing this challenge requires multi-level and multi-faceted engagement at all levels, supported by effective knowledge sharing and lesson-learning. In country contexts as diverse as Mozambique, Zambia, Ecuador,, Pakistan and Bangladesh, WSP has worked with different levels of government and other stakeholders to facilitate reforms such as decentralization, delegated management, institutional reorganization, systems design, planning and capacity enhancement at utility level. While sector-specific institutions often are the direct clients, the institutional and capacity requirements of the sector mostly requires engagement with broader issues of decentralization and institutional reform. In South Asia, for example, the emphasis on institutional change is highly pronounced as there is strong evidence that despite significantly increased funding and higher levels of coverage, access to urban water services remains inequitable and the quality of services inadequate. WSP s work in this region has therefore placed a great deal of emphasis on working with national and second tier governments on the design and refinement of fiscal incentives for institutional reform, and building associated capacity. Across all regions, WSP finds it useful to work with other development partners to scale up the impact on capacity enhancement. In several countries it has participated in the design in capacity building programs, often bringing specific country knowledge to these programs. Currently, for example, WSP is part of a series of initiatives to be funded by the World Bank and DFID aimed at supporting local government capacity building and institutional reforms in line with the Government of s major fiscal schemes to support urban service delivery improvements. Together with these agencies, WSP is addressing capacity and institutional design constraints that affect the delivery or water and sanitation services, as part of a more comprehensive range of interventions that improve the legal and regulatory environments, fiscal arrangements, accountability to relevant levels of government, and interaction with clients and citizens. (iv) Finance The goal of activities under this theme is to improve the efficiency and effectiveness of resources, strengthen integration of WSS into national budgets and poverty reduction strategies, develop innovations to leverage local domestic resources, and reduce financial losses. The work on public finance reviews and performance monitoring has been reported in the section above on country-level monitoring. This section focuses on WSP s work in exploring the scope for market finance in the water sector, transactions leveraging market finance to the water sector and on developing sector financing strategies. Support in these areas has resulted in increased use of public (and/or donor) finance by donors and/or national governments to leverage market-based resources for the water and sanitation sector in selected focus countries in Africa. 4
Potential for microfinance to community water supplies is being explored through action research in Kenya. Potential for market finance to utilities in Africa is being developed directly by facilitating transactions (Uganda and Burkina Faso) and by supporting credit-rating exercises. WSP is working with Uganda s water utility NWSC to prepare a local currency listed bond in the Uganda Stock Exchange. The NWSC bond will be the first water utility bond in Africa (outside of South Africa). Support to Burkina Faso s ONEA has also begun where as a first step a strategy for diversification of financing is being developed. Further information on these projects can be found in the following section that reviews domestic private sector participation. WSP is introducing a process of credit-rating for African water utilities. Seven African utilities from East, West and Northern Africa are involved in the credit-rating process being carried out by Global Credit Ratings a leading African credit-rating agency. This effort is being carried out in partnership with WOP Africa, PPIAF and AfDB in order to ensure take-up and impact of the assessments. Ongoing credit assessments in Tanzania seek to link urban water authorities to the banking sector and increase potential for transactions has increased. In, a study of sector financing was conducted to identify the extent to which cities and service providers have accessed market finance and to initiate a dialogue on how market finance can be increasingly leveraged for sector development. (v) Domestic Private Sector Participation The Domestic Private Sector Participation (DPSP) Initiative supported over 25 projects worldwide and engaged across a broad spectrum of activities. A global workshop attended by over 120 participants from over 20 countries was held in London in June 2008, and showcased the Initiative s most promising and innovative examples. Progress against key outcomes show some encouraging signs, including: Improved level of policy dialogue with better market information promoted key reforms. In, Pakistan, the Philippines and in Africa, benchmarking, credit assessment/rating initiatives and analysis, and dialogues on access to market finance have led to nuanced understanding of the differing market structures and readiness of supplier segments to improve service and access finance. As a result, country clients, with support from WSP and other donors, are at various stages of preparing and implementing investment projects and other activities that maximize the role of local private actors. In Bolivia, for instance, sector authorities have incorporated small scale operators in investment plans. Operational and management reform involving local private sector providers contributed to efficiency and service improvements. Positive results from testing models for contracting out services, establishing public-private partnerships and doing business have demonstrated the gains to be made from similar arrangements. In Kenya, a public-private partnership in Kisumu resulted in the doubling of revenues and reduced unaccounted-for-water, and will be expanded to serve an additional 110,000 people. In Rwanda, WSP assistance in the tendering and post-award processes in the delegation of rural water systems to private operators has resulted in the improved functionality of these systems. Similar work is being carried out in Mali to facilitate private sector participation in the delivery of services in rural/small urban centers, starting with pilots in 5 centers and expanding to 30. In Peru, small town water provision has also benefited from the introduction of private operators the successful pilot in over 20 towns by WSP and the World Bank will be extended to 400 more. In the Philippines, 11 utilities completed their improvement plans, representing some USD 2 million worth of investments that, among others, aim to increase connections by over 17,000, serving about 94,000 persons, in the next 5 years. In Pakistan and Bangladesh several of the sixteen utilities involved in performance improvement planning and benchmarking initiatives have started contracting with the private sector to improve efficiency, expand coverage and provide better service. Business development services and transaction support generated increased investment from local financial institutions and other funding organizations. The technical assistance and transaction support 5
provided by WSP opened up access of rural water systems to market finance through a microfinance institution, and also facilitated the entry of GPOBA (USD 1.2 million) support. Twenty-one community-managed piped water projects in greater Nairobi will be financed by K-Rep Bank, with technical support from WSP and part-funding through GPOBA. An initial eight loans totaling about USD 900,000 have been approved. A project development facility is being developed with funding from PPIAF (USD 500,000) and with EU water facility funds (Euro 1.5 million) the project will target up to 60 community water projects. WSP advisory and facilitation support to Uganda s National Water and Sewerage Company is set to lead to a medium term note program of USD 60 million, with a first tranche of about USD 18 million. Work in the Philippines is expected to lead to increased investment by 11 utilities, USD 1 million of which will be sourced from commercial banks. In, WSP supported identification and preparation of USD 1 million of GPOBA project to provide rural water supply service in 25 villages. The local private provider, the Naandi Foundation, has been able to leverage additional market finance to scale up service to over 400 villages. Entry of more players created a more robust sanitation market. Sustainable sanitation markets are being developed through the promotion of more effective demand and strengthening the supply chain. In Peru, the Sanitation as a Business initiative has supported the entry of private sector actors such as financial institutions, corporations and small and medium enterprises (SMEs) selling sanitation products, educational institutions, and advertising agencies into the sanitation market. WSP s work on engaging the domestic private sector in WSS services has resulted in increased interest from donors, clients, and other partner organizations in the theme. Going forward in FY2009, the aim is to build on the lessons learned from DPSPI and focus on two interrelated areas: (1) improving service providers ability to access resources to enable scale up; and (2) bringing private financiers into the water and sanitation sector. Moreover, WSP will strengthen the partnerships with donor and partner organizations in order to scale up the work performed by these important local private actors. (vi) Sanitation and Hygiene Behavior Change Programs WSP has provided extensive support in the design, fund raising, organization and implementation of regional Ministerial level conferences on sanitation in WSP regions, the launching of the National Environmental Sanitation and Hygiene Policy in Kenya; development of National, State and Provincial sanitation policies, strategies and programs in and Pakistan and community-led total sanitation initiatives in rural sanitation in Bangladesh, and Pakistan. Africa: In Kenya, the National Environmental Sanitation and Hygiene Policy was launched by the Minister for Health in October 2007. The project is progressing well and has been able to attract support and collaboration from key partners such as UNICEF and WHO. There has also been buy-in by all key NGOs involved in the WASH programs in the country. The years of support to and advocacy for the sanitation and hygiene sub-sector in Ethiopia by WSP came to fruition during the first half of FY2008. Following the joint Bank and Donor WASH Mission in October 2007, agreement was reached to allocate USD 24 million (from IDA and DFID Trust Fund) to the Ministry of Health for the promotion and implementation of Hygiene and Sanitation improvements in the country with special emphasis on schools and health facilities. In Rwanda, hygiene promotion and sanitation coordination mechanisms have been established and actions plans have been adopted, implemented and are being regularly updated by the Government of Rwanda. Latin America & Caribbean: The meeting of high level authorities from Ministries of Health resulted in the signing of a regional agreement to support the LatinoSan Cali declaration; the Hand washing initiative; the International Year of Sanitation and the strengthening of FOCARD-APS (the Forum on Potable Water and Sanitation for Central America and the Dominican Republic). This political platform provided the necessary environment to formulate a solid regional agenda on sanitation and hygiene in 6
Central America. Several handwashing initiatives are underway in Honduras, Nicaragua, Panama, Bolivia, and Ecuador. WSP is also providing technical assistance to the handwashing components of two investment projects: a World Bank loan in Panama and a UNICEF project in Bolivia. South Asia: In, WSP activities have effectively advocated for and are supporting the implementation of community led outcome-oriented approaches in rural sanitation in Andhra Pradesh, Haryana, Himachal Pradesh and Madhya Pradesh to scale up open-defecation free villages. WSP has supported four states to develop urban sanitation strategies and funding programs modeled on the draft National Urban Sanitation Policy. For solid waste management, at the national, state and local level, the program has been successful in refocusing attention on sanitary disposal and getting this emphasis incorporated into policies, strategies and practices. Three clusters of local bodies have developed formats for inter-municipal cooperation. In Pakistan, WSP activities have led to adoption of provincial sanitation strategies modeled on the National Sanitation Policy and substantial funding of outcomes based approaches to scale up Community Led Total Sanitation. In Bangladesh, WSP is supporting improved implementation of the National Sanitation Strategy with a focus on improving M&E, communications and cross learning among local governments. East Asia and Pacific: The Philippines component of the Sustainable Sanitation in East Asia program, seeks to support increased access (for the poor) to sanitation services. Work currently underway includes the carrying out of baseline field surveys in six sites. The implementation team has completed a round of preliminary site visits validating the activities stated in the TOR and ensuring commitment of local project partners through the passing of city/municipal resolutions and formal signing of memoranda of agreement. Agreed local work plans have been presented and approved by the Program Steering Committee. In Indonesia, six cities developed poor-inclusive sanitation strategies with facilitation support by the Indonesia Sanitation Sector Development Program (ISSDP). A second phase of ISSDP was approved in April this year up to December 2009, and will start to scale up the initial city sanitation planning model working at the provincial level as well as in new cities. In Vietnam the Handwashing Initiative (HWI) was launched on June 5, 2008 after nearly two and a half years of preparation. The launch, organized in Hanoi, was attended by over 400 participants including Government representatives (also from Lao PDR), several mass organizations, parents, school children, and the media. The event received significant press coverage with over 100 articles published in Vietnamese print and electronic newspapers and a one minute news story aired on the most popular national TV station. Immediately after the launch, a scaled down version of the launch was carried out in 8 provinces, with on average 400 500 in attendance, to provide an entertaining and educational means to promote handwashing messages at the community level. Global: WSP is implementing two large scale global projects on Scaling Up Sanitation and Scaling Up Handwashing. In these two projects, WSP works with its national and local government partners as well as the private sector to achieve large scale increases in sustainable access to basic hygienic sanitation and to change handwashing behaviors sustainably and at large scale. The Scaling Up Sanitation project uses the community led total sanitation (CLTS) and sanitation marketing approaches and are being implemented in, Indonesia, and Tanzania. The Scaling Up Handwashing project uses social marketing approaches that are consumer focused and intervene with an appropriate mix of interventions such as mass media, direct consumer contact and interpersonal communications to change handwashing behaviors, and are being implemented in Peru, Senegal, Tanzania and Vietnam. Both of these global Scaling Up projects have state of the art impact evaluations to measure the impact of improved sanitation and hygiene on health, socioeconomic and nutritional status; results based M&E systems that will facilitate improvements in project design and implementation and; an explicit learning and knowledge 7
management strategy and action plan that will allow for country based and global learning to be shared with the WSS community. (vii) Communications for Reform Reform programs in general, and high-visibility infrastructure projects - whether or not they include a reform component - share a common characteristic: they influence a range of stakeholders with varied interests. Stakeholders need to be informed of the proposed changes, have long term benefits explained, and be encouraged to modify their behavior, expectations, and attitudes accordingly. Meaningful communication is about getting information out to critical audiences, listening to their feedback, and responding appropriately. A project in Africa is demonstrating the potential of employing communication interventions to strengthen the capacities of water sector institutions, particularly service providers and regulatory/oversight agencies, to improve service delivery. Communication and advocacy activities in Benin, the DRC, Ethiopia,, Niger, Burkina Faso, Senegal, Kenya, Zambia and Uganda have focused on building political goodwill, acceptance and support for WSS sector reforms; sustaining the momentum of the reform processes; stimulating policy dialogue; and mitigating the political risks associated with sector/utility reforms. At least four sector institutions have incorporated communication components in their reform programs. Already, there is increasing demand from clients to strengthen their capacities to implement strategic and professionally managed information, advocacy and behavior-change programs in order to effectively influence and have impact on technical and reform projects. Agua Latina, an electronic newsletter of the WSP-Latin America and Caribbean (LAC) communications team, has had an active year: 80% of interviewed users report satisfaction with the quality and usefulness of Agua Latina e-news, and the number of subscribers continues to grow. In its tenth issue, Agua Latina has increased its audience size by 60 percent (March 2008) and reports about 24,000 monthly average visits, totaling approximately 184,000 visits from August 2007-June 2008. WSP-South Asia and WSP-East Asia and Pacific with support from PPIAF and WSP s Global Practice Team on Communications organized an international learning event on communications and consultations. Over 100 participants with 68 senior level participants coming from Governments in East Asia (five countries) and South Asia (three countries) attended the workshop, which aimed to encourage policymakers to understand the value of strategic communications, and to enable them to implement effective communication strategies for their programs. As a result of the learning and international experience gained at this workshop, WSP-South Asia has seen increased demand from clients and the World Bank s operational teams to provide support for communications for reform. In, the centrally-located Rajiv Gandhi National Drinking Water Mission (Ministry of Rural Development) and the Technical Advisory Group (TAG), Ministry of Urban Development both Government of as well as the governments of the states of Maharashtra and Andhra Pradesh have requested assistance for their programs. In Pakistan, there has been a request from the Government of Punjab to integrate communications and consultation into its Reform Roadmap, while the World Bank s Pakistan Earthquake Recovery Project has requested for sustained communications support. Advocacy workshops with media/civil society in are proving to be very helpful in fine tuning messages on urban WSS. State and local governments have requested assistance to integrate communications and consultations into UWSS planning processes and, more generally, into urban service delivery planning. WSP-South Asia is supporting the Department of Drinking Water Supply, Government of the nodal agency in charge of organization SACOSAN, November 2008, in New Delhi to develop a communications strategy with a vision beyond 2008 for IYS and SACOSAN. 8
In East Asia and Pacific, WSP has improved internal as well as client capacity in strategic communications through a series of learning and advocacy activities such as the EAP-SA communications and consultations workshop in March 2008. Having been provided with the whys and hows of strategic communications, client governments allocated more resources for communications and integrated stakeholder consultations into their water and sanitation projects. A project in Lao PDR is pulling together good practices and lessons learnt in the application of rural water supply and sanitation and urban sector communications strategies across countries. One significant initiative under this project is the development of IEC hygiene promotion materials with 49 ethnic groups for dissemination and application of the RWSS sector strategy. Over the past 2 years, in northern, central and southern provinces, field work has taken place with 16 ethnic groups by using a ladder of options for the development of their own community-designed hygiene promotion materials for use in their local areas. Further, for the urban sector, the program will define a communications strategy through the nation-wide communications campaign to promote domestic private investment on water supply. (viii) Global Practice Teams (GPTs) and Global Knowledge Sharing Initiatives WSP established its Global Practice Teams (GPTs) in FY2005 to enhance global knowledge management and learning and to strengthen influence on the Bank and other IFIs. Since their formation, the GPTs have helped create an environment that supports and encourages cross-regional and global learning and that will allow WSP to provide even more global leadership and innovation on a core set of issues. The GPTs have promoted rapid cross-fertilization across regions and are constantly working to enhance our influence of the World Bank and other development partners' agenda and knowledge in the WSS practice. The main functions of the GPTs include (i) generating global knowledge and promote cross-regional fertilization and active learning; (ii) defining WSP's positioning and vision in thematic areas; (iii) leading participation in conferences/working groups (the GPTs are expected to be the external face of WSP in the thematic area); (iv) leading thematic discussion with Bank practitioners as well as those from our key donor and partner agencies; and (v) gathering knowledge and lessons learned by donors and other partners. All GPT activity and especially its products need to be relevant to our clients on the ground. In FY2008 five GPTs (Rural, Urban, Sanitation & Hygiene, Communication and Finance) continued to implement their work program while a new GPT on Handwashing was formed. a. GPT - Rural Water Supply and Sanitation The GPT on RWSS examines the multiple use of domestic water, to establish the links with poverty reduction and improved sustainability. A study was commissioned on assessing the link between productive use of domestic water, poverty reduction and sustainability. The study will be based on data collected from three countries (Colombia, Kenya and Mozambique). The study will leverage WSP's experience and knowledge at country level as well as that of other agencies involved in this field (IWMI, IRC, PRODWAT, NGOs, World Bank, and academic institutions). Consultants have been hired and are in the process of finalizing the research design for the study. b. GPT - Water and Sanitation Services for the Urban Poor The Urban GPT (UGPT) is currently working on two flagship products. The first focuses on UWSS services for the urban poor and the second, on social accountability in UWSS. By harnessing crossregional analysis and action research, both of these flagship products will facilitate the use of some of the most promising experiences from around the world to practitioners and policy-makers as they address issues of responsive service provision to the urban poor. The Urban GPT s Guidance Notes on Improving Water Supply and Sanitation Services for the Urban Poor identifies approaches to resolving 12 of the most recurring obstacles for the expansion of services to the urban poor (from administrative and legal barriers, to appropriate financial policies, and vested interests), while the social accountability action research is analyzing six to ten cases from four regions that have successfully promoted greater 9