National Policy and Financing for Sanitation Examples from Asian Countries National Sanitation Conference (KSN) 2 8 December 2009 Jakarta Indonesia SDG Sanitation Donor Group
Outline Success factors for sanitation development in Asia National approaches to sanitation development Thailand Vietnam Financing Sanitation Urban Sanitation in Vietnam Rural Sanitation in India Key lessons for sanitation progress
Sanitation Access in East Asia 415 million have no access to improved water supplies 800 million have no access to improved sanitation Meeting the MDGs still leaves 630 million (1/3 of population) without improved sanitation 91 % 100% 76% 90% 50% 75% Less than 50% Source: JMP, UNICEF/WHO 2008 (2006 data)
Success Factors for Sanitation Development in Asia INDONESIA Political prioritization Increasing budget allocations over time Sustained implementation??
Sanitation linked to national development plans Demand based sanitation policy implemented by agreed strategies Policy based sanitation investment strategy Specific approaches to sanitation services for the poor implemented Increased participation of users, civil society & private sector Sustained implementation leads to increased access to sanitation Continuous progress monitoring, evaluation and improvement
Asian Success Stories Thailand From 0.17% HH latrine coverage in 1960 to above 90% by mid 1990s, and 99% in 2005 Systematic inclusion of sanitation program in National Economic and Social Development Plans Comprehensive vision water supply, excreta disposal, refuse disposal but step by step implementation Increased participation by key actors
Thailand Success Factors Systematic capacity building of health personnel and people Financing mechanisms: Government seed money for village revolving funds Loans and grants form development partners Continuous program improvement based on M&E system Source: USAID 2009
Thailand Remaining Challenges Last 1% extremely hard to reach (remote and/or water scare areas) o Despite increase in toilet coverage, no decline in diarrhea disease incidence (even though decline in diarrhea death rate) SDG Sanitation Donor Group Diarrhea Mortality Rate Latrine Coverage Thai toilet development project Promotion of clean & hygienic food Safe drinking water Hygiene behavior campaign Diarrhea Morbidity Rate Latrine Coverage Source: Narongsakdi, A.: Universal Sanitation Thailand, 2007
Asian Success Stories Vietnam Substantial national investment since 1990s in urban sewerage & treatment systems using loan funding with grant elements for community involvement and software support to households o Integrated urban sanitation and sewerage projects: a) sewerage and treatment; b) drainage; c) institutional development and construction management; d) revolving funds for household sanitation facilities or sewer connections.
Vietnam Achievements and Challenges SDG Sanitation Donor Group Achievements ohigh priority on urban sanitation investment, as part of economic and urban development ointegration of improved septic tank systems in parallel to sewerage and treatment improvements ostrategic use of public resources to achieve maximum results with focus on municipal infrastructure, promotion and software support opartnership with Vietnam Women s Union to reach households o Accessed donor grants to complement substantial borrowing Challenges: oextreme poor remain excluded but alternatives are being considered onational strategy for scaling up not yet in place
Financing Urban Sanitation Vietnam National borrowing for municipal and trunk sewerage infrastructure Revolving fund for low income households to build septic tanks, composting toilets or sewer connections, managed by VWU Loans average USD 145 per HH = + 65% of investment costs USD 3 million in initial seed financing as part of a broader sewerage project including hygiene & demand promotion Public funds 7% of total costs of sanitation adoption Results: Initial capital revolved twice+ in 3 years, then transferred to local municipality to be revolved further; 100% repayment rate Leveraged household funds: up to 20 times initial the public funds provided
Financing Rural Sanitation India (Maharashtra) Enhanced Total Sanitation Campaign (TSC) targeting 21 million people Public Funds focusing on: Software for community mobilization Outcome based rewards to ODF villages to spend on sanitation investments Outcome based hardware subsidies for poorest HH (22% of hardware costs covered) Overall impact o o o o Public funds 9% of total costs of sanitation adoption High leverage ratio: US$1 public funds triggered US$10 HH investment Very rapid increase in sanitation access Implemented at national level with variable results
Key Lessons for Sanitation Progress National investment program for urban infrastructure comes from national budget and loans under a National Sanitation Investment Strategy to meet sanitation targets Centralized treatment and sewerage infrastructure funds are usually borrowed then on granted to local governments Choosing the right financing approach for household involvement increases cost effectiveness, equity, impact and scale Hardware subsidies need to be well planned reg. achievement of project objectives ownership/ scalability Subsidy targeting methods tailored to circumstances: India: subsidy for poorest HH after community is ODF Vietnam: subsidy on interest rate for low income/poor HH
Key Lessons for Sanitation Progress Public funding used to trigger increased access to household sanitation through software, facilitation, and demand/supply improvements Poorest households need particular support; revolving funds, micro credit, partial grants can be effective when available for all Monitoring and Evaluation is critical for evaluating effectiveness of public support Cost information Financing data Information on impacts and outcomes
Terima Kasih SGD Sanitation Donor Group Members Bilateral donors, multilateral donors, international development banks and NGOs Embassy of the Kingdom of the Netherlands