National Rural Water Supply and Sanitation Programme. Mid Term Review

Transcription

1 Government of the Republic of Zambia MINISTRY OF LOCAL GOVERNMENT AND HOUSING Department of Housing and Infrastructure Development National Rural Water Supply and Sanitation Programme Mid Term Review

2 National Rural Water Supply and Sanitation Programme Mid Term Review

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4 NRWSSP Mid-Term Review i Executive Summary The purpose of the Mid-Term Review (MTR) of the National Rural Water Supply and Sanitation Programme (NRWSSP) is to present GRZ and Cooperating Partners (CPs) with an external and independent view and assessment based on objectively verifiable information of the progress made against activities in the programme design and outcomes achieved to date. The MTR is also expected to provide a practical set of recommendations aiming at ensuring the most efficient and effective implementation of the remaining part of the current phase. The MTR team found that the current national policy, legislative and regulatory framework offers limited guidance for the rural water supply and sanitation sub-sector and implementing agencies and partners and is not facilitating the implementation of NRWSSP, however the ongoing policy making process to develop a new national water supply and sanitation policy, scheduled for completion before the end of June 2013, should resolve the current policy issues observed. It is important for the new policy to link to the decentralization policy (and its implementation plan) and for MLGH to pursue the approval of the required amendments to strategies and legislation in a timely manner. NRWSSP is designed for full alignment with GRZ structures and procedures. If/when fully implemented NRWSSP will be embedded as one among other GRZ programmes. At the time of the MTR not all sub-sector actors are following the principles and approaches of NRWSSP, for example in terms of planning and allocation procedures, financing mechanisms, procurement and the requirement for community contributions. The area-based approach remains the main modality for CPs to allocate funds and implement projects. In this regard the forthcoming technical and financial support from KfW to establish a basket funding modality is a welcome initiative towards sector planning and harmonization. The involvement of and cooperation between the relevant line ministries MLGH, MEWD, Ministries of Planning, Health and Education with regard to NRWSSP is coordinated through the Steering Committee and the WSAG meetings. Based on interviews during the mission the MTR got the impression that there is room for improvement in terms of coordination. This would apply to coordination between water supply activities undertaken by MEWD and those implemented by Districts. A special issue is related to School WASH, which appears to fall between the chairs of MLGH/Districts and Ministry of Education. NRWSSP is considered very relevant and well structured by many of the stakeholders met at district, provincial and central levels. It provides a focus for RWSS, drives the process and contributes to attainment of MDGs. NRWSSP has strengthened the project management capacity of many district councils as well as their engagement with communities. NRWSSP remains very relevant and should be sustained as the framework for RWSS in Zambia. Since 2007 there have been significant investments made to put in place an Information Management System (IMS), however this is not working as intended. Given the importance of an IMS for planning purposes and for the monitoring of operation and maintenance of investments it is critical that a decision is made on the IMS soon and that this component can deliver a practical and functioning tool as soon as possible. A system evaluation is currently being carried out with a view to transit to a next generation IMS shortly thereafter.

5 NRWSSP Mid-Term Review ii Without a functioning IMS, the MTR finds that it is not possible to assess the effectiveness of NRWSSP solely on the basis of the Annual Reports prepared to date. The MTR forms the impression that there are many achievements in the various projects under NRWSSP and good practices developed, but that these are reported in separate documents by the individual projects and there is a certain lack of consolidation and dissemination of these. Overall one of the main constraints facing the implementation and progress of NRWSSP is the lack of human resources. This applies at all levels, to DHID and District Councils, and appears to be a chronic problem. At the district level RWSS Units are in place, though understaffed and with severe resource constraints. The MTR find that these constraints have held back the progress that could have been made if NRWSSP had been adequately resourced. There can be little doubt that fully capacitated district councils would lead to an exponential increase in the implementation speed of NRWSSP, however in order to first build the required capacity there needs to be a trade-off in the initial stages between the speed of service delivery and institutional sustainability since most districts and communities will need to undergo sustained capacity development. Since its commencement in 2007 the NWRSSP has, by comparison with similar developing countries with a national RWSS programme, received a very substantial amount of technical assistance (TA) from its CPs. The active support of CPs to the RWSS sub-sector is reflective of the significance attached to it, particularly concerning its poverty alleviation objectives, but also in relation to spearheading the decentralisation process of GRZ. The collective TA outputs for the programme have been impressive, both in quantity and quality, however in many cases this TA, by design or out of necessity, has often been used as a gap filler with the result that TA inputs have been directed towards implementation of the NRWSSP, rather than being used to build capacity, especially at the lower levels of government. A capacity development strategy and action plan, to guide and define NRWSSP s capacity development component implementation is needed to make effective use of TA inputs to create a holistic approach to capacity development, to strengthening the decentralisation process and towards accelerating the implementation of NRWSSP. The MTR finds the level of planning varies considerably from district to district. Some districts produce comprehensive District Development Plans (DDPs) that quite adequately serve as a basis for water supply investments, while other districts lack such a plan. It was reported that at one time the preparation of such plans was commonplace, but that a drop-off in financial support resulted in their decline. The absence of RWSS plans at the district level increases the level of difficulty in providing reliable water supply services to communities. NRWSSP does not appear to be demand responsive in a uniform way. Newly installed water supply technologies appear generally to be limited to hand pump-equipped boreholes and there was little indication that possible alternatives were considered prior to making the final choice. The selection of an inappropriate technology in some cases leads to unnecessarily high levels of O&M. Planners should spend more time carrying out community and technical appraisals before deciding on the technology. The BH-HP combination should not automatically be adopted as the technology of choice.

6 NRWSSP Mid-Term Review iii No construction or construction supervision was observed by the MTR during site visits, however third party reports indicate that the quality of supervision varies considerably, particularly with regard to borehole installation. It was not possible for the MTR team to inspect the quality of underground installations, but the condition of some surface structures, such as some drainage platforms, indicates that the structure was not built according to standard. This implies that supervision at the time of construction was inadequate. It is expected that the value for money audit being undertaken by the OAG will shed further light onto these third party observations and an appropriate response should be put in place. Since the IMS is not operational and, as such, does not provide information on which the degree of functionality of hand pump-equipped installations can be determined, nevertheless on the basis of observations in the field it is apparent that a significant proportion of such installations are broken down and that others are functional but demonstrate a considerable amount of downtime. Some of the installations that are functional supply water high in iron content, which community members use to bathe and launder with but do not drink. Other installations are functional but provide an unacceptably small quantity of water over a limited number of hours. The review found that the results of the CLTS work to date have been variable, with impressive results seen in some wards. Champions have reported large numbers of ODF villages but such claims have yet to be verified by district staff. In fact no verification system has been established to date and this needs to be addressed in the short term. An unusual feature of CLTS triggering in Zambia is that, rather than focussing on defecation practices alone, the motivators promote a package of hygiene-related improvements to household facilities including the construction or improvement of toilets. The scaling up initiative is promising but, so far, is heavily UNICEF-led. This is understandable given that it started only seven months ago, but a national programme needs to be championed by government. There are also challenges to address beyond government, since there is so far no consensus among CPs/NGOs on the adoption of CLTS as the vehicle for national scaling up. If CLTS is to make an impact districtwide it will be necessary not just to improve follow-up visits and monitoring, but for the council and related agencies to prioritise and promote it so that it has more visibility and district teams are given adequate operational resources. The work undertaken to date through the NRWSSP research component is commended, it is however too little and limited as more requires to be done. There is need to expand in scope so as to do more especially in the area of continuous assessments of quantity and quality of water in the current and new water supply systems that are being developed. Strengthening of national laboratory capacity at research institutions and universities so as to provide quality testing and research services to NRWSSP in the immediate term is necessary. This is specially so as testing facilities are either in state of disrepair or non-existence and yet the cry in the districts has been that there was need for constant monitoring of these water supply facilities to ensure that they remained safe and adequate in their service provision. Cross cutting issues, such as gender, governance, HIV/AIDS and environment appear to have become marginalized within NRWSSP with no targeted activities identified.

7 NRWSSP Mid-Term Review iv Table of Contents Executive Summary... i Acronyms... vi 1 Introduction Programme Design and Coherence Policy Development NRWSSP and National Development Strategies and Results Alignment and Coherence Harmonization Review of the Overall Programme Assessment of Risks and Assumptions Relevance of NRWSSP Stakeholder Involvement and Ownership Efficiency Development Effectiveness Development Impact Strengths, Weaknesses, Opportunities and Threats Analysis Programme Management, Administration and Finance Management and Coordination Funding and Budget Allocations of GRZ and CPs/NGOs Funding and Budget Allocations of GRZ and CPs/NGOs Budget and Actual Expenditure Reporting System Public Expenditure Review NRWSSP Funding Modalities, Transfer of Funds to Districts and Separate Accounts Financial Management, Accounting and Reporting Capacities Technical Assistance Institutional and Capacity Development Organisational Context, Development and Change Human Resources Competencies and Capacity Building... 24

8 NRWSSP Mid-Term Review v 5.4 Provincial level District and Sub-district level Equipment, Tools and Transport District Development Planning Water Supply Strengthening Demand Responsive Planning Selection of Technology Quality and Quantity of Water Supplied Construction Quality and Supervision Operation and Maintenance Sanitation and Hygiene Findings Analysis of CLTS School WASH Information Management System Research and Development Cross Cutting Issues Gender HIV/AIDS Governance Environmental Issues Main Recommendations and MLGH Response Appendix 1: List of Persons Met Appendix 2: MTR Team Members Appendix 3: MTR Terms of Reference... 47

9 NRWSSP Mid-Term Review vi Acronyms Note: Common abbreviations are not listed e.g. M&E, MIS, NGO, O&M, TOR A&C Advocacy and Communication BH-HP Borehole-Handpump Facility CLTS Community Led Total Sanitation CP Cooperating Partner DC District Council DDP District Development Plan DHID Department of Housing and Infrastructure Development GRZ Government of the Republic of Zambia IMS Information Management System JMP Joint Monitoring Programme LE Legal Enforcement MFNP Ministry of Finance and National Planning MLGH Ministry of Local Government and Housing NRWSSP National Rural Water Supply and Sanitation Policy NWASCO National Water Supply and Sanitation Council OAG Office of the Auditor General ODF Open Defecation Free P-DHID Provincial DHID PER Public Expenditure Review PST Provincial Support Team S&H Sanitation and Hygiene TA Technical Assistance WSAG Water Sector Advisory Group ZAMSIF Zambia Social Investment Fund ZMW Zambian Kwacha Rebased [ZMW 1.00 = ZMK 1,000.00] ZPPA Zambia Public Procurement Authority Acknowledgements The Mid-Term Review Team would like to thank all officials and persons met during the review mission for their active participation and interest in the review. A list of persons met during the review is attached as Appendix 1.

10 NRWSSP Mid-Term Review 1 1 Introduction The National Rural Water Supply and Sanitation Programme (NRWSSP) was developed by MLGH and Cooperating Partners (CPs), mainly the World Bank and Danida, in a joint effort in to provide a comprehensive programmatic framework for the development of the rural water supply and sanitation sector. NRWSSP comprises eight components 1, namely: (1) Water Supply, (2) Sanitation and Hygiene (S&H), (3) Policy Development, (4) Capacity Building, (5) Information Management System (IMS), (6) Operation and Maintenance (O&M), (7) Research and Development (R&D) and (8) Advocacy and Communication (A&C) This Mid-Term Review (MTR) is the first review of NRWSSP since its initiation in 2007 apart from a Technical Review carried out in early The Joint Water Sector Reviews of 2009, 2010 and 2011 also included a review of the NRWSSP, albeit on a more limited scale. In 2010 a Public Expenditure Review (PER) of the sub-sector was undertaken, however not on national scale. In 2012 another PER, with a specific focus on resource allocations and financial flows in the water sector, included some analysis of the NRWSSP. The purpose of the NRWSSP MTR is to present GRZ and CPs with an external and independent view and assessment based on objectively verifiable information of the progress made against activities in the programme design and outcomes achieved to date. The MTR is also expected to provide a practical set of recommendations aiming at ensuring the most efficient and effective implementation of the remaining part of the current phase. Furthermore, the MTR is expected to provide recommendation for a possible second phase of NRWSSP as well providing a substantive contribution to the on-going development of the new water supply and sanitation policy under the coordination of DHID. The Terms of Reference for the MTR (Appendix 3) were arranged within three broad sections, covering: (1) Programme Issues and Evaluation Questions, (2) Specific Issues and Evaluation Questions and (3) Cross Cutting Objectives and Evaluation Questions. Programme Issues and Evaluation Questions includes relevance, efficiency, development effectiveness, development impact, sustainability, programme, and administrative arrangements, coherence, and value added as well as financial management which was added by the team. Specific Issues and Evaluation Questions, includes aspects relating to the eight components of NRWSSP and issues related to school WASH. The MTR team used a common checklist/questionnaire for the interviews to record data collected by the 5 sub-teams in the districts and provinces visited. An independent team comprising five international consultants and five national consultants (Appendix 2) were retained by several CPs on behalf of GRZ to undertake the MTR. The team was divided into 5 groups with each covering specific aspects of the TOR. The team visited 16 districts in 8 provinces (Figure 1.1 and Table 1.1) and met with provincial authorities, PSTs, P- DHIDs, district staff, including council secretaries, RWSS staff, communities and others. At central level the team met with officials from relevant ministries and agencies, including MLGH, Ministry of Finance, ZPPA, OAG, as well CPs supporting the NRWSSP The MTR was not intended to include an extensive review of the available literature and this should be recognised and kept in mind when reading this report. 1 Communication and Advocacy was added as an eight component of NRWSSP by the National Water Supply and Sanitation Steering Committee

11 NRWSSP Mid-Term Review 2 Figure 1.1: Map of Zambia Showing Districts Visited by the MTR Table 1.1: Provinces and Districts Visited during the MTR Province District Province District Central 1. Mkushi Lusaka 9. Chongwe Central 2. Mumbwa Lusaka 10. Luangwa Copperbelt 3. Lufwanyama North Western 11. Kasempa Copperbelt 4. Masaiti North Western 12. Solwezi Eastern 5. Katete Southern 13. Kazungula Eastern 6. Petauke Southern 14. Namwala Luapula 7. Milenge Western 15. Senanga Luapula 8. Mwense Western 16. Sesheke

12 NRWSSP Mid-Term Review 3 2 Programme Design and Coherence The NRWSSP document exists in two different versions: an electronic version of 2006 and a recent reprinted version from November The latter has not been available to the MTR in an electronic version and it appears to be not available. The MTR was informed that the document underwent several revisions between 2006 and the end of The MTR also notes that the reprinted version of the NRWSSP varies from the original and includes printing errors. The MTR recommends that MLGH as a matter of urgency publishes and disseminates official electronic and print versions of the NRWSSP original and approved document. 2.1 Policy Development The NRWSSP Programme Document details the policy and legal framework for the RWSS subsector as part of the wider water sector in Zambia as well as the related policies and legislation that affect the sub-sector. The various instruments are summarised in the table below. Table 2.1: Summary of main GRZ policy and legislation relating to the RWSS sub-sector Instrument National Water Policy (2010) National Decentralisation Policy (2002) Water Supply & Sanitation Act (1997) MTR Findings/Comments This was a revision of the 1994 Policy. It covers the development of all national water resources but not much on RWSS and the need for a National WSS Policy has been long recognised. Launched 2004 but not substantively implemented to-date. Concerned with devolution of authority to District Councils. Particularly relevant /beneficial for the RWSS sub-sector. Includes provision for National Water Supply and Sanitation Council (NWASCO) as a regulator but only for urban WSS sub-sector. Long in need of revision but this depends on the pending National Water Supply and Sanitation Policy. Urgently needed by NRWSSP. The current national policy, legislative and regulatory framework offers limited guidance for the RWSS sub-sector and implementing agencies and partners and is not facilitating the implementation of the Programme. The NRWSSP Programme Document states The National Water Policy contains policy measures with respect to RWSS. Though generally sound in terms of basic principles, there are a number of short comings, including: roles and responsibilities for RWSS are poorly defined; inadequate provisions for sector coordination; community ownership of facilities is unclear; community contributions are not explicit, leaving room for differences from project to project; no explicit definition of basic service levels for RWSS; and the policy is also silent regarding investment support for individual or household sanitation facilities. Therefore a key indicator in the NRWSSP is the existence of a National Water Supply and Sanitation Policy. This policy was planned to be in place already in 2007, but only in July 2011 was a policy review and drafting process initiated, with work starting in July 2012 and scheduled to be finalized by June The slip of six years is explained as due to administrative delays both within MLGH with a number of changes in staff, and between MLGH and CPs, notably the World Bank, who finances the work. In the Annual Report for 2008 it is reported The key activities related to Component 3 during 2008 were the drafting and submission of the TOR policy review and revision to the World Bank.

13 NRWSSP Mid-Term Review 4 The MTR finds that the long time it has taken to move the process forward also indicates a lack of prioritisation of government in advancing the Water Supply and Sanitation policy. The aim of the on-going policy development is to produce a draft National Water Supply and Sanitation Policy (or possibly to expand the National Water Policy with a section on water supply and sanitation) 1. According to procedures for policy development, it is required that the draft policy that will be submitted to Cabinet is accompanied with an implementation plan. A key issue in the development of the Water Supply and Sanitation Policy is the link to the Decentralization Policy and its implementation plan. Once the Water Supply and Sanitation Policy has been approved, the necessary amendments to strategies and legislation will be done. The MTR was informed that there have been discussions whether the legislative framework precedes the policy or vice versa. The TOR for the MTR asks for an assessment of the work of the Policy Development Working Group and the policy review process to date, as well as an identification of key policy changes for the RWSS sub-sector that need to be debated, and furthermore changes that are needed in the existing legal framework and institutional arrangements (questions 50-54). However, the MTR finds it inappropriate to pre-empt the on-going policy process by recommending changes in legislation and institutional arrangements. With respect to the key policy changes that need to be debated, the Policy Development Working Group s Inception Report, August 2012, outlines the main issues to be addressed (as well as the consultative process engaging the wider stakeholders in the sub-sector in various forums and how the process will draw on international experiences). The issues listed are: Standards, Data Requirements, Environmental Issues, Financing, Framework Conditions, Operations and Maintenance, Ownership and Participation. An annex in the Inception Report provides a list of sub-issues under each of these headings. Furthermore the work includes a literature review presented in a separate volume. The MTR found that progress on the policy review appears to be according to plan and that the work is comprehensive and thorough and the issues identified indeed are relevant. The MTR want to remark that a policy document should be relatively brief, stating exactly the policies and the overall principles whereas the details of implementation of the policy is described in regulations and rules that can be updated administratively. The policy development work should be aware of the risk of venturing too far into the realm of rules and regulations. The MTR finds the following are amongst the key issues that the policy must address: Definition of basic services: the criteria of access to an improved water source within 500 meters of the household (and also the minimum size of settlements to qualify for service, which is currently absent) needs to be reviewed to assess the financial implications of upholding such a service level in relation to water supply technology choice, i.e. bore holes versus cheaper alternatives. Furthermore, the policy on basic service level should be such that a direct comparison with international criteria for coverage is possible, and lastly, the practical aspects of measuring whether basic services are provided must be considered. 1 The policy will contain statement of goals, objectives and courses of action outlined by the Government to provide guidance for intended actions in the WSS sub-sector and Government s vision, rationale and objectives in the WSS sub-sector and the set of actions required to implement the measures aimed at achieving the overall vision, according to the Cabinet Manual

14 NRWSSP Mid-Term Review 5 Ownership of facilities: the policy should make it clear who owns the water supply facilities: the community, the district or the state? Responsibilities for the use of community contributions, O&M, and replacement are directly and legally related to ownership. Equity, social justice and subsidies: the policy should include or refer to a transparent formula for resource allocation to districts for RWSS with a strong poverty and need element and preferably including performance criteria. There should also be a policy for very poor communities, e.g., waiving the 5% contribution to capital cost in certain cases. Community contribution: the MTR found that substantial amounts paid by communities as capital cost contribution (CAPEX) (according to the NRWSSP 5% of capital cost) in many cases are standing unused in accounts at the district level. The NRWSSP does not indicate how these funds will be managed. A policy on this is a matter of urgency. The findings and recommendations of the present report will feed into the policy development process. The MTR recommendations in Table 2.2, also presented in subsequent sections of this report, relate specifically to policy issues: Table 2.2: MTR Recommendations Relating to Policy Issues Policy issues Coverage benchmark District responsibilities to NRWSSP Information needed to feed into policy development Sanitation goals School WASH Cross cutting issues Recommendations MTR recommends that the Census 2010 data on coverage be used as the benchmark for both water supply and sanitation. Districts should ensure that all stakeholders adhere to NRWSSP guidelines and approaches with a uniform set of criteria for project implementation. MTR recommends that to inform the WSS policy regarding service levels and responsibilities for financing, a study be undertaken to assess the effect of water supply and sanitation on poverty reduction. MLGH to formalise Open Defecation Free verification system. Inclusion of School WASH component in the on-going policy review for water supply and sanitation to inspire specific focus and participation towards the creation of improved school environments in Zambia. Policy and legal framework for RWSSP to include cross cutting issues and requirement for active observance and compliance. The MTR Recommends for Policy Development The on-going policy review and development of a NWSS Policy needs to be finalized as a priority, the Water Supply and Sanitation Act (1997) should then be urgently revised to address RWSS, including any RWSS regulatory issues.

15 NRWSSP Mid-Term Review NRWSSP and National Development Strategies and Results Overall there have been no major changes in the external or internal environment of NRWSSP since The Local Government Act of 1991, the Decentralization Policy of 2003 and the Government Gazette No 547 of 2004, which mandated MLGH with the responsibility of water supply and sanitation, still provides the key framework for the NRWSSP. The revised Water Policy of 2010 does not specify policies with regard to RWSS and has therefore not marked any changes in the policy environment. The Sixth National Development Plan has NRWSSP as the framework for rural water supply and sanitation. The targets are a total of 6,000 boreholes constructed, 3445 water points rehabilitated and around 300,000 latrines constructed through the NRWSSP over the period. It further includes productive water supply infrastructure. The MTR observes that new water supply is mainly specified as boreholes, whereas the NRWSSP includes a number of other technology options. This is a reflection of a narrow focus on water point sources for new installations, which runs through the program (refer to the section on water supply below). As described in subsequent Section 3 some assumptions in the Logical Framework for the NRWSSP were overly optimistic and some of the key indicators have been delayed or not been achieved yet, importantly the decentralization process overall and not least development of the Water Supply and Sanitation Policy. Given general status quo of the context in which NRWSSP is implemented, MTR finds that these indicators are still relevant, including: National WSS Policy; Revised WSS legislation; RWSS IMS; O&M Systems at all levels. 2.3 Alignment and Coherence NRWSSP is designed for full alignment with GRZ structures and procedures. If/when fully implemented NRWSSP will be embedded as one among other GRZ programmes. At the time of MTR not all sub-sector actors follow the principles and approaches of NRWSSP, for example in terms of planning and allocation procedures, financing mechanisms, procurement, and the requirement for community contributions. In its design NRWSSP includes experiences from other programmes. The World Bank funded ZAMSIF (Social Investment Fund) that ran from 2000 to 2005 applied a demand led approach with community planning and contributions. The approaches and experiences from this program have been considered in the design of NRWSSP. The MTR found that several persons interviewed referred to ZAMSIF as having applied similar principles with regard to performance evaluation of districts as are now being discussed in the context of the RWSS Basket Fund. The many actors in the sub-sector, notably NGOs, have been applying different approaches over the years and some have proven to be effective and efficient, water point mapping by WaterAid can be mentioned as an example. The involvement of and cooperation between the relevant line ministries MLGH, MEWD, Ministries of Planning, Health and Education with regard to NRWSSP is coordinated through the Steering Committee and the WSAG meetings. Based on interviews during the mission the MTR got the impression that there is room for improvement in terms of coordination. This would apply to coordination between water supply activities undertaken by MEWD and those implemented by Districts. A special issue is related to School WASH, which appears to fall between the chairs of MLGH/Districts and Ministry of Education (refer relevant section).

16 NRWSSP Mid-Term Review Harmonization The harmonization and buy-in from CPs has been slower than anticipated in the programme plan, which envisage that a SWAP would be in place by 2011 or earlier. The area based approach is still the main modality for CPs to allocate funds, but that is not necessarily in contradiction to the NRWSSP as long as the NRWSSP principles and approaches are followed, which however, is often not the case. Harmonization has taken place through different CPs supporting different components of the NRWSSP. The JASZ II shows that s CPs are committed to the NRWSSP with the following paragraph on rural water supply and sanitation: CPs will support the water and sanitation sector through focus on national programmes for rural and urban water and sanitation. These include support for capacity building centrally and in particular at district level, accelerated decentralisation for water supply and sanitation, and enhanced service delivery. Key to this is the finalization of a Joint Financing Mechanism. CPs will support GRZ to get the National Rural Water Supply and Sanitation (WSS) Programme operational and running, to approve [sic] on the financing and management arrangements (either joint rural/urban or separate) and efficiently manage administration and programme implementation. The MTR finds that though progress has been slow, there are signs that harmonization is progressing. The statement in JASZ II cited above, the roll out of the SOMAP, the CPs division of work and support areas, and the overview provided in the Survey of NRWSSP Components in 2012 are evidence of an emerging harmonized sub-sector.

17 NRWSSP Mid-Term Review 8 3 Review of the Overall Programme An assessment of the overall progress can only be indicative due to NRWSSP progress reporting with Annual Reports in different formats and only reporting on some of the components of the programme. From the Annual Reports it is not possible to determine if missing items have been left out due to lack of reporting from actors in the sub-sector, or if activities have simply not taken place and outputs not been achieved. The MTR found that NRWSSP only has been documented to a limited degree in terms of aggregate documents and reports. For example, many NGOs have worked intensively on capacity building applying different approaches wherefrom lessons could be learned if documentation was available to the wider circle of stakeholders. Box 3.1: Progress of NRWSSP in an African Context According to the African Ministers Council on Water (AMCOW) report from November 2011, Zambia is in the transitioning stage, where the generic objectives of RWSS sector reform are to foster interaction between sector institutions and core government systems while deepening economy wide capacity for construction and broadening options for scheme operations. The scorecard used by AMCOW has 9 factors organised in 3 groups. Group 1: enabling factors: policy, planning, budget. Group 2 developing factors: expenditure, equity, and output. Group 3: sustaining: factors: maintenance, expansion, use. These factors can be given one of three characteristics: driver, drag or barrier. With respect to rural water supply the scorecard method applied in the AMCOW study gives Zambia an overall score above the average for Africa in all three groups of factors. Policy and budget are scored as drivers, but planning scored as drag. Further, the scorecard reports that the developing factors, namely expenditure, equity and outputs, and the factors measured as sustaining achievements: maintenance, expansion and use, all are dragging. Thus, the AMCOW 2011 scorecard gives an overall picture of Zambia scoring above average (but below countries such as Benin, Ethiopia, Ghana, Rwanda, South Africa) however with drag on 7 out of the 9 factors considered. For sanitation the scores are also higher than the average for Africa, but slightly better with only 6 factors out of 9 reported as drag. Source: Country Status Overviews Regional Synthesis Report, Pathways to Progress. Transitioning to Country-Led Service Delivery Pathways to Meet Africa s Water Supply and Sanitation Targets. Figure 5.3, p. 44

18 NRWSSP Mid-Term Review Assessment of Risks and Assumptions Table 3.1:Status of Assumptions Assumptions Government will fully implement the National Decentralization Policy and empower and develop districts to full roles entailed in policy. Key stakeholders will understand decentralization of responsibility and overcome the resistance for change GRZ and CPs are able to raise funds for NRWSSP Possible to mobilise adequate technical and human resources for large scale implementation RWSS approach, framework and decentralization policy can be sufficiently anchored at district level to avoid institutional vacuum without clear responsibilities RWSS framework and key elements of decentralization policy institutionalized at DC level MFNP and MLGH roles and responsibilities regarding supervision, regulation and monitoring of DC planning and budgeting procedures clarified Government conditions of service will not deteriorate Improved coordination between GRZ and donor interventions GRZ policies, programmes and political interventions will not contradict or create confusion among implementers and beneficiaries Rural communities will contribute 5% towards capital expenditure Status end 2012, findings of MTR The roll out of the national decentralisation policy is delayed. Most districts enabled to award works contracts, following a final review by MLGH Reluctance among government stakeholders to give districts more responsibilities due to weak capacity of some districts. Inadequate human resources in many districts all RWSS Units visited have only 1 staff member. Many DCs are found not to be able to or do not want to resist organizations operating in noncompliance to NRWSSP, especially with regard to community contributions See above Government conditions of service have improved in 2012, which may have a connection to the establishment of the Local Government Services Commission. Transfers of staff unpredictable. Political interventions occur all the time, but especially during election time, with regard to budget allocations for RWSS and to waiving community contributions. This was reported from all districts visited by the MTR. Where only the NRWSSP approach is applied communities are willing and able to contribute. Some districts consider some communities too poor to contribute and in some cases they use DC CDF funds tot pay community contributions.

19 NRWSSP Mid-Term Review 10 Table 3.2:Status of Assessed Risks in the NRWSSP Document Risks Risk assessment Mitigation Status Implications CPs not willing to align with NRWSSP approach and principles Low to medium Formalization of donor coordination mechanism, learning processes and reviews Most CP support is still area based. Principles of community contribution only applied by some. NRWSSP implementation delayed and piecemeal. GRZ will not reinforce RWSSU with staff required before start of programme. Medium To be worked out between GRZ and CPs Many of the RWSS staff in DHID staff has been on contract up to end 2012, five years after NRWSSP starting. Not been able to build up a unit with strong capacity. Lack of institutional memory. Implementing agencies not adhering to financial reporting procedures Low to medium Capacity building and accounting procedures Some DC do not have financial capacity to manage funds and procure services Low to medium Capacity development component A wide difference between the best and the weakest districts. Majority of districts would be able to do both if they had the chance. Proposed financial guidelines for managing WS funds uses lowest common denominator, i.e., ceiling for district spending. Corruption at all levels Medium to high Use GRZ and CP anti-corruption measures A Value-for Money study by the OAG is ongoing. Concerns expressed regarding quality of boreholes and non-adherence to specifications. Low quality of services provided to citizens. Inefficient use of resources. Loss of credibility would lead to loss of funding. 3.2 Relevance of NRWSSP NRWSSP is considered very relevant by many of the stakeholders met at district, provincial and central levels. It provides a focus for RWSS, drives the process and contributes to attainment of MDGs. Generally stakeholders considered the NRWSSP to be well structured and framed. Further, it was expressed that MLGH has demonstrated leadership by having this programme. At the district level RWSS Units are in place, though understaffed and with severe resource constraints. A strong DC, which the MTR Team visited expressed that the capacity of the DC has been strengthened and because significant resources has been given the institution needs to attain a certain level to be able to deal with those resources. Thus project management capacity, procurement and financial management capacity has been strengthened. It was also expressed that DCs engagement with communities has been strengthened, and the capacity within

20 NRWSSP Mid-Term Review 11 communities likewise. An important point made was that communities know the programme is here to stay. It is long-term and communities confidence in DC has improved. MTR agrees with these observations and finds that NRWSSP is very relevant and should be sustained as the framework for RWSS in Zambia. However, the delays in implementation indicate that assumptions and risk analysis have been overly optimistic. 3.3 Stakeholder Involvement and Ownership There are several civil society stakeholders that play important roles in the water sub-sector. The Water and Sanitation Association of Zambia is a membership organization in the water and sanitation sector. WASAZA has both individual and corporate membership drawn from professionals involved in the sector. These include engineers, natural resource experts, Public health experts, media experts and others. It is an institution, which plays among others an advocacy role in the sector. WASAZA has been involved in the sector as a player in provision of decentralized wastewater treatment systems. WASAZA has also provides a forum called Water Nights held once every quarter at which professionals share their research and other activities in the sector. WASAZA has provided training to water supply and sanitation utilities and other stakeholders in the sector in various areas such as customer relations, non-revenue water as well as construction of biogas digesters. WASAZA is a member of and houses the NGO-WASH Forum. The NGO-WASH Forum is a platform on which issues related to water and sanitation are shared. The Forum is an agglomeration of Non-Governmental organizations such as UNICEF, Water Aid, World Vision International, and other stakeholders tasked to advocate for the sector. It has been able to advocate for the sector at Parliament to highlight the issues of importance to take the sector forward. Hand-washing days and other activities have been organized and commemorated among the youth and other stakeholders. 3.4 Efficiency The MTR has only been scoped to look at efficiency from an overall perspective. A comparison of funds/resources used and results achieved between 2006 and 2012 (based on rough estimates) shows that funds budgeted and spent amounts to around USD 150 million. According to Annual Reports for , app water points have been constructed (refer Table 6 below). If we add 1000 for 2007 and 2012 respectively, the total number is 6000 water points. At USD 10,000 per water point (bore hole) this amounts to USD 60 million. The total cost of sanitation units has not been reported, and neither is the cost of other quantifiable results. Using these ballpark figures, USD 90 million has been spent on sanitation, capacity building, and other outputs. A tentative justification for the use of resources would include High percentage of program management and capacity development costs. Impact in terms of service coverage (current percentage questionable) and health benefits open to be assessed. Newly established operating environment: provincial and district administrations. Low level of results due to fragmented GRZ and CP/NGO implementation environment.

21 NRWSSP Mid-Term Review Development Effectiveness The MTR finds that it is not possible to assess the effectiveness of NRWSSP on the basis of the Annual Reports prepared to date. The MTR forms the impression that there are many achievements in the various projects under NRWSSP and good practices developed, but that these are reported in separate documents by the individual projects. Progress on Targets and Indicators For Purpose: 1. To increase and improve the number of functioning WSS facilities in rural areas through systematic investments in new facilities and rehabilitation of existing facilities on basis of a single comprehensive national RWSS programme, the indicators are: Number of new RWSS facilities Number of RWSS facilities rehabilitated Number of functioning RWSS facilities MoU of Support to NRWSSP These indicators do not refer to any benchmark or target. Table 3.3 shows the number of new and rehabilitated RWSS facilities according to the Annual Reports. With regard to sanitation the figures appear unreliable, with many thousands latrines reported constructed in one year and a few hundred in another year. Table 3.3: Number of RWSS facilities according to Annual Reports Water points Est Total New ,557 Rehab Total ,000 5,076 Rehab of WS in schools Sanitation Construction of latrines 1,147 2,000 47, Note: Sanitation: In 2010, 38,850 latrines reported constructed in Southern Province For outcome 1.1 Increased numbers of people with access to functioning rural water supply water points; increased number of people in rural areas using safe sanitation facilities the indicators are: Water Supply Coverage increased from 37% (2005) to 60 % (2010) and finally to 75% by 2015 Sanitation coverage from 13% (2005) to 35% (2010) and finally to 60% by 2015 The Joint Monitoring Programme (JMP) 2012, for the year 2010, reports a coverage of 46% with improved water supply, which is 14% below the target set in NRWSSP. The IMS RWSS Status Report 2011 reports only 15% coverage with water supply within a 500-meter distance.

22 NRWSSP Mid-Term Review 13 With regard to sanitation coverage the JMP reports 43% coverage with improved latrines, and 30% with any other structures. Compared to this the IMS reports 33% coverage with adequate sanitation Table 3.4: JMP 2010 Coverage Figures for Water Supply and Sanitation Improved Unimproved Rural Water Supply Total Improved Piped on Premises Other improved Unimproved Surface Water 46% 1% 45% 32% 22% Rural Sanitation Improved 43% Unimproved Shared Other Unimproved Open Defecation 8% 22% 27% The NRWSSP and IMS criteria for adequate water supply to be within a distance of 500 meters change the results dramatically resulting in a decrease in coverage. If the coverage figures on water supply were accepted, the development effectiveness of NRWSSP would be negative. The MTR finds the situation is unresolved with the IMS based coverage figure. The present situation is that there are no consolidated rural water supply coverage figures. The Census 2010 report is expected in early 2013 and the data were not available to the MTR. Census data are the most comprehensive as they cover the whole country using international standards for statistical data collection and processing. The Census contains data on water supply and sanitation coverage, but it does not apply the 500 m. criteria used in IMS, and the sanitation criteria are also different. The MTR recommends that the Census will be used for setting the current baseline on coverage. However, due to the difference in criteria it can be expected that the Census data and the IMS data will be significantly different. It should be a high priority task for MLGH and stakeholders to reconcile the IMS figures with Census 2010 figures. At the same time a system evaluation of the IMS will be carried out from end 2012 onwards. The evaluation is also expected to review the data in the IMS. The MTR suggests that the Census 2010 data in coverage be used as the benchmark for both water supply and sanitation. For Purpose 2: To improve the performance of the RWSS sub-sector in planning, implementation and operation and maintenance of RWSS facilities through policy development and institutional reforms, capacity building, comprehensive and sustainable management information system and effective advocacy and communication, the indicators are: National WSS Policy and Revised WSS legislation RWSS IMS O&M Systems at all levels District RWSS Investment Plans Advocacy and Communication Strategy

23 NRWSSP Mid-Term Review 14 One of the cornerstones of NRWSSP, the Water Supply and Sanitation (WSS) Policy has been significantly delayed, and another cornerstone, the IMS, has been faced with problems. The delay in the development of the policy cannot be considered a sign of ineffectiveness of NRWSSP per se since it is linked to the larger policy environment. The IMS, which should be the main planning and monitoring instrument, has not fulfilled the functions envisaged (Section 4). Figure 3.1 provides an overview of milestones and key events in NRWSSP implementation showing delays and late starts. Figure 3.1 Milestones and Key Actions and Events in NRWSSP Implementation Activity Name NRWSS Phase I Phase II Milestones in NRWSSP Phase I Phase II National WSS Policy approved Planned Expected Revised WSS legislation Agreed Guidelines and Procedures for Managing Water Supply and Sanitation Programme Funds - MLGH RWSS IMS operational in all districts First generation IMS Second generation IMS O&M - Nation-wide roll out of SOMAP District RWSS Investment Plans Advocacy/Communication Strategy adopted and being implemented by MLGH Other key developments Staffing of Provincial DHIDs Full staffing of MLGH (planned) Basket Fund pilot In some districts Draft Draft Onwards Onwards Onwards Onwards KfW The MTR s review of the reported progress in the various Components is described in the dedicated sections of this report. 3.6 Development Impact Progress on MDGs It is a goal of NRWSSP to contribute to attainment of the MDGs. The latest report on progress towards the MDGs in Zambia is from 2011 and it reports water supply coverage and sanitation figures from 2006, before NRWSSP started. Poverty Alleviation Poverty alleviation (not poverty reduction) is another of the overall goals of NRWSSP. No comprehensive studies to measure the impacts on poverty alleviation have been made so there is no solid evidence of NRWSSP s contribution to poverty alleviation. Though it is difficult to assess such possible impacts of water supply and sanitation on poverty, the MTR finds it is important to do so because it is the most important justification for the investments in RWSS.

24 NRWSSP Mid-Term Review 15 The MTR suggests that a study be undertaken to assess the effect of water supply and sanitation on poverty alleviation, this would be very useful to inform the WSS policy regarding service levels and responsibilities for financing, Impacts on Health An attempt at measuring and monetizing health impacts is presented in the 2010 RWSS Public Expenditure Review report through a calculation of the value of health benefits stemming from the investments in new drinking water facilities. It is based on estimated savings of health related costs such as travel costs for consultation, actual cost of consultation, cost of treatment and public subsidies for treatments. The net present value calculated was USD 19,000 for 35 water points, which means the maximum cost of the investment that can be justified given the value of the health impact, with an assumed functional life time of 10 years of the investment and at an annual discount rate of 10%. This equals an amount of USD 543 per water point. Clearly the result of this calculation is nowhere near the actual average cost of a water point (bore hole) of USD 8 to 10,000. No similar calculation of the benefits accruing from increased service levels and the reductions in time it takes to collect water has been made. 3.7 Strengths, Weaknesses, Opportunities and Threats Analysis The MTR has taken a holistic view on NRWSSP through a SWOT analysis presented in Figure 3.2, which captures some of the salient points discussed in the preceding sections. Another SWOT analysis taken from a technical perspective is included as Figure 3.3 The design of NRWSSP with its support to, and dependency on policy and legislation with regard to decentralization is both a strength and weakness. The strength is in the long-term sustainability that can be achieved if communities and local authorities are enabled and capacitated to play their roles. On the other hand, there is a possible trade-off in the initial stages between speed of service delivery and institutional sustainability since some districts and communities need capacity development. When districts are fully capacitated as envisaged in NRWSSP, implementation speed can increase exponentially beyond the current level. Case in point, one strong district visited by MTR have constructed about 195 new water points (boreholes) in two years. Assuming that, say 20 districts in the country, given the resources needed, are able to do the same in 2013, 3860 water points could be constructed. That would be more than three times the target set in the Sixth National Development Plan, in just 20 districts. Recommendations To foster ownership all stakeholders (MLGH, P-DHID, RWSS units and communities) should have full knowledge of all approved and impending interventions. The interventions should be coordinated at provincial level by the P-DHID. Provision should be made for drilling contracts (and any other work deemed complex) to be supervised by a competent technical supervisor. The RWSSU staff should undergo in-service training that will upgrade their skills and knowledge of public procurement and general contract management. Operations and Maintenance training should not be rendered by drilling contractors but by members of the D-WASHE.

25 NRWSSP Mid-Term Review 16 The RWSS Unit should maintain an updated register of competent APMs Districts and P-DHIDs should keep a register of competent supervising engineers Districts should ensure that all stakeholders adhere to NRWSSP guidelines and approaches with a uniform set of criteria for projects to be implemented Figure 3.2: SWOT Analysis of NRWSSP Strengths 1. Comprehensive framework 2. Provides focus and can drive RWSS 3. Embedding RWSS in decentralization can ensure long-term sustainability 4. Provides standards 5. Examples of good practices exist Opportunities 1. Implement basket funding mechanism with a differentiated approach based on performance related criteria for allocations 2. Capitalize on stronger Districts Weaknesses 1. Some assumptions have not proved correct, some risks have become reality (Table 3.2) 2. Trade-off between emphasis on service delivery and institutional sustainability 3. Buy-in by actors incl. CPs - has been (s)lower than anticipated Threats 1. Lack of RWSS policy and enforceable legislation on standards and approaches 2. Political interference undermine approach to community involvement 3. CPs prioritize speed of service delivery instead of long-term sustainability 4. Corruption undermines trust in NRWSSP Figure 3.3: SWOT Analysis from a Technical Perspective Strengths 1. Establishment of RWSSUs streamlines interventions for improved access to RWSS s 2. Qualified PSTs and P-DHIDs 3. Roll out of SOMAP 4. Examples of good practice on some projects already implemented which can be replicated 5. Resource availability at district level such as transport, computers etc. to aid community facilitation, contract supervision & monitoring 6. Community funds for O&M collected Opportunities 1. Willingness amongst communities to participate in the NRWSSP 2. Availability of APMs and supervisors trained under other interventions 3. Participation by NGOs in the NRWSSP who excel in good practice 4. Private sector trade in spare parts Weaknesses 1. Lack of synchronization of activities and interventions in Districts 2. Understaffing/inexperience compromises contract supervision and quality of works 3. Lack of ownership by P-DHID and RWSSUs 4. Limited appreciation and clarity of roles and responsibilities on the part of RWSSU staff Threats 1. Political interference and expediency can affect community contribution and maintenance funds 2. Untrained (or poorly trained) beneficiary communities 3. Training of communities by contractors 4. Uncoordinated activities/interventions by NGOs 5. Poor and/or erratically remunerated district staff

26 NRWSSP Mid-Term Review 17 4 Programme Management, Administration and Finance 4.1 Management and Coordination NRWSSP management comprises a Steering Committee, a Technical Committee for Urban and Rural Water Supply and Sanitation, the Water Sector Advisory Group and a Water Supply and Sanitation Sub-sector Advisory Group. The National Water Supply and Sanitation Steering Committee chaired by MLGH is the highest oversight body. MTR team was informed it has met once this year in late January to approve the annual urban and rural work plans. The three lead CPs attend and speak at these meetings. The WSAG is a creation of Government (Cabinet Office) to coordinate sector activities (there are other similar groups in other sectors). This provides a forum for all actors to meet and provide input into the national water and sanitation sector. It receives plans as well as reports on activities each player has carried out or plans to do so. The WSAG has a number of sub committees dealing with infrastructure, water resources management, water supply and sanitation. These subcommittees of the WSAG meet quarterly before the main SAG and plan their submissions to the main WSAG. The recommendations from the WSAG are taken to cabinet through the responsible ministry. The WSAG provided the required input in the development of the Sixth National Development Plan The Water Supply and Sanitation Sub-sector Advisory Group provides a forum for stakeholders to meet and coordinate. Judging from the Annual Reports and information received meetings are not as effective as could be desired. The reason apparently is a weak ability to take initiative, coordinate and inform about when and where meetings are to be held. It was not possible during the MTR to ascertain the frequency, content or effectiveness of the WSS Sub-sector Advisory Group meetings since this information is not record in minutes or recorded in annual reports. The meetings for the individual NRWSSP Components that should be arranged by MLGH are not regularly held. These meetings have important coordinating functions and it is recommend that MLGH should organize more regular Component meetings in a working group format. 4.2 Funding and Budget Allocations of GRZ and CPs/NGOs According to the NRWSSP programme document and the MoU (October 2008) some important financial arrangements have been stipulated as success factors whose current status of achievement shall be verified. Among these are the following commitments: MLGH will maintain a financial management system, which includes financial statements in accordance with acceptable accounting standards adequate to reflect the operations, resources and expenditures related to NWRSSP activities A NRWSSP account will be opened and operated by MFNP. Commitment to the system of transferring funds to districts. At district level the funds will be transferred into separate bank accounts for RWSS Preparation of consolidated progress reports (physical and financial progress) The MTR s assessment of these achievements provided below is based on information received in discussions with stakeholders and from site visits. In addition, a number of documents, including statements, budgets, studies and assessments of RWSS were received and assessed. The audited budget releases and expenditures for 2011 were not made available for examination by the MTR since, according to MLGH, these had not yet been received from the OAG.

27 NRWSSP Mid-Term Review Funding and Budget Allocations of GRZ and CPs/NGOs Expenditure on RWSS in Zambia is funded through contributions from four main sources: 1. GRZ releases spending for rural water supply through its regular budget execution procedure. Several government agencies charge expenditure to rural water supply programs and activities (for example the department of water affairs). 2. Commitments from Multi-lateral and Bi-lateral Cooperating Partners are to some extent included in the state budget ("on budget"), however only in a few cases are these funds transferred and released through the GRZ treasury system i.e. amounts disbursed are rarely captured in the state accounts. Consequently the total annual amount of funds spent to date under NRWSSP can only with great difficulty be identified due to the fragmented reporting by CPs to GRZ. 3. Local Government Authorities gradually allocate more resources also for investment in rural water supply facilities. The MTR found in the course of its field visits that in a few cases districts are using allocations from the Constituency Development Fund 1 (CDF) for the development of rural water facilities. 4. Community Contributions were initially supposed to comprise 9% 2 of the total funding requirements. The actual reporting system does not show any substantial community funding, however the MTR did find many cases of community contributions being paid. Community contributions are in most cases collected and transferred to district accounts without being used 3. Several international and national NGOs, faith based organisations and local charities also fund small rural water supply activities across the country. These funds are not reflected in the GRZ budget and the outputs from most are similarly not recorded in annual reports. The estimated funds needed to implement NRWSSP over the period from each of the above four sources are summarised in Table 4.1. The estimated spending for the periods and are also presented in Table Budget and Actual Expenditure Reporting System NRWSSP annual budgets from 2006 to 2013 are included in GRZ annual budget reports that are found in the Yellow Book. Up to 2010 NRWSSP budget components were reported under three different programs (P14: Water Sector Performance Program, P17: NRWSSP and P18: Water Sector Program Support (compare JWSR 2011 and Annual NRWSSP 2010). NRWSSP actual expenditures from 2007 to 2010 (GRZ portion) are reported in Annual Blue Books. The MLGH response to the audit of the 2011 Blue Book should be completed late In former years actual expenditures were reported up to September of the following year. In addition Danida contributions transferred to a MLGH account (budget and actual expenditure) has been annually reported and audited by the Auditor General. Reports so far available allow the verification of important GRZ contributions to NRWSSP. 1 The Constituency Development Fund (CDF) was approved by Parliament in 1995 to finance micro-community projects for poverty reduction. 2 This figure is used in the NRWSSP main programme document (pp. XIX), although 5% is current practice. 3 A government circular to instruct councils to use community contributions for O&M activities is awaiting approval.

28 NRWSSP Mid-Term Review 19 Table 4.1: NRWSSP Estimated Budget and Spending Funding Source NRWSSP Budget ( ) 1 Estimated Spending (USD Million) USD Million1 % Split Estimated 2 ( ) During GRZ < 25% > 40% NA CPs > 70% < 60% NA District Councils NA NA NA Communities NA NA NA Total Around 150 Around Sources: 1 NRWSSP Programme Document 2007, page XIX 2 Period (2005/2008): PER 2010 (Nordic Consulting); Period (2006/2012): MLGH/JICA Survey MTEF (Green Paper) MFNP Estimate, based on the current sub-sector investment profile Public Expenditure Review NRWSSP The MTR s assessment of NRWSSP funds spent (in USD million), planned and actually released) rely on the Public Expenditure Review (PER) carried out in 2010, which is the most detailed source available. Table 4.2: NRWSSP Public Expenditure ( ) in USD million Funding Source GRZ NA CPs (on-budget) NA Total On-Budget NA CPs (off-budget) NGOs Total Total per Capita in USD As % of total public expenditure 0.5% 0.8% 0.7% 0.6% 1.0% Sources: MFNP State Accounts ( ), CSO and Web Survey of Cooperating Partners

29 NRWSSP Mid-Term Review Funding Modalities, Transfer of Funds to Districts and Separate Accounts Around 90 to 95 % of funding under NRWSSP is managed by GRZ and CPs. Only very little financial management responsibility has so far been transferred to the District Councils. The optional funding modalities mentioned in the MoU included direct treasury funding, CP budget support, pooled or basket funding and CP project funding. Currently there is direct MLGH funding, CP/NGO project funding and in a few cases district funding. Different funding modalities again complicate the already complex accounting and reporting system and the corresponding workload naturally puts pressure on the existing staff capacities at MLGH. The different funding and reporting modalities do not allow for a direct tracing of total expenditures. A separate bank account for NRWSSP, in addition to the Danida bank account, was opened in 2012, however this separate account has so far not been used by MLGH. A key issue behind a financial system that is decentralized is its ability to assess the districts capacity to implement, i.e. to plan, procure and supervise, and to be accountable for money spent. However, there is a discrepancy between the Agreed Guidelines and Procedures for Managing Water Supply and Sanitation Programme Funds of June 2012, launched in November 2012, that states districts can be accredited by ZPPA to be allowed to procure up to ZMW 2 Million. In the same document it is stated, The present limit applied is ZMW 500,000 Million. If MLGH needs to assess the districts ability to implement then such discrepancies need to be reviewed. The MTR Recommends for Procurement: The Agreed Guidelines and Procedures for Managing Water Supply and Sanitation Programme Funds should be aligned with the national rules allowing districts to procure up to ZMW 2 Million based on accreditation by ZPPA. Capacity development activities should aim to support districts to achieve this accreditation Financial Management, Accounting and Reporting Capacities The financial management and accounting unit in MLGH is established as a sub-unit under the Department of Human Resources. The range of financial planning, coordination and accounting duties for various infrastructure sectors exceeds the existing staff schedule. IFMIS has been designed as a tool to produce standardized consolidated financial statements of GRZ and CP funds, but currently it is not ready to produce statements. In Provinces and Districts: Initial establishment of financial capacities at provincial levels. At provincial district level some capable and responsible budgeting, manual accounting and reporting exist, but still have to be supported and strengthened. Some districts have already sufficient levels of capacity to manage project funds. A more transparent and structured framework for managing and allocating financial resources under the NRWSSP is needed. Some elements would include: Establish, test and assess a basket funding modality. Determine, respect and supervise specific pre-conditions to be fulfilled (pre-requisites) in comparison to NRWSSP MoU of 2008 and newly the launched guidelines. Establish, strengthen and supervise a basket fund management: An efficient and experienced fund management is the key to adequate funding and accountability.

30 NRWSSP Mid-Term Review 21 Options to establish a fund management should be examined and assessed. Hiring a team under control of MLGH, financed by the basket, would constitute one option. The envisaged recruitment of a financial adviser (TOR have been elaborated) shall be implemented to strengthen the financial management capacities of MLGH. Encourage and enable districts authorities including RWSS units to manage and use dedicated funds including planning, tendering and contracting, procurement according to ZPPA regulations, supervision of construction, releases of funds to contractors and proper reporting. Strengthen use of existing reporting formats, which allow integration of different institutional levels, monitoring and evaluations tools and procedures 4.3 Technical Assistance Since its commencement in 2007 the NWRSSP has, by comparison with similar developing countries with a national RWSS programme, received a very substantial amount of technical assistance (TA) from its CPs. The active support of CPs to the RWSS sub-sector is reflective of the significance attached to it, particularly concerning its poverty alleviation objectives, but also in relation to spearheading the decentralisation process of GRZ. CPs that currently or have recently provided TA to the NRWSSP include: Danida, GIZ, KfW, DFID, UNICEF, JICA, USAID, Irish Aid, the African Development Bank, the World Bank. The collective TA outputs for the programme have been impressive, both in quantity and quality. They are indicative of international and national TA that has been of a high calibre and generally well managed. Questions that may arise as to the translation of these substantive outputs (manuals, guidelines, plans and training events) into delayed or outstanding Programme outcomes are not necessarily a reflection on the TA but may be more reflective of the overall management of the NRWSSP. Nevertheless, there is an issue about the role that the TA has played in the programme. Many TA positions have, whether by design or out of necessity, served as implementers of the NRWSSP. TA has often been used as 'gap fillers' providing qualified human resources for the Programme in situations where GRZ staff at central, provincial or district level have been unavailable due to (1) lack of capacity of staff (2) motivation, (3) regular transfers, (4) high staff turnover, (5) no funds available to implement and to then build capacity While the use of TA in this way may progress programme implementation in the short term, it does not usually develop capacity within the TA beneficiary and so may not help progress programme implementation in the longer term 1. This appears to be the case in NRWSSP. To Improve the Long-term Effectiveness of TA the MTR recommends: Enhancing the facilitative, capacity development role of all TA positions, with coaching and mentoring of designated counterparts being an explicit part of the TOR/job description of all international and national TA. Ensure approved DHID/District Council positions are filled and designated staff is available to work with TA for an agreed minimum number of hours per week. 1 See, for example, Developing Capacity through Technical Cooperation, UNDP (2002).

31 NRWSSP Mid-Term Review 22 5 Institutional and Capacity Development In its methodological approach the MTR has adopted the concept of a Capacity Hierarchy. Adapted from Systemic Capacity Building: a Hierarchy of Needs. Potter & Brough, 2004 The MTR found that the term 'Capacity' was often narrowly viewed within the programme as mainly related to the top two/three levels of the capacity hierarchy; means, competencies and staff - often in that order. Capacity constraints, voiced by DHID and district staff, were in terms of resources or formal training that needed to be provided. While some of these are undoubtedly necessary, e.g. timely payment of staff salaries, funds for operating and investment costs, this is not the whole picture. The RWSS sub-sector (and MLGH which has leading responsibility for it) needs to be considered as a whole - as institutions. In terms of capacity development the different levels on capacity depend on the one immediately below. Capacity development needs to be viewed from the bottom up, not the top down. This concept is not being fully understood and acted upon by all stakeholders in the NRWSSP. Capacity development needs to be approached holistically from an institutional perspective, considering a hierarchy of capacities with interventions at all levels of the hierarchy. 5.1 Organisational Context, Development and Change MLGH DHID has a clear mandate for the NRWSSP, although the MTR noted that other Ministries, NGOs and donor projects and other organizations are still involved in the RWSS sub-sector and actively drilling boreholes, installing hand pumps and establishing other water sources for drinking purposes in rural areas with little coordination. Collaboration, cooperation and synergies between these organizations are not well developed despite the various high-level coordination mechanisms discussed earlier in the Management chapter of the report. MLGH s mandate appears not to be readily acknowledged or well respected. Hopefully the revised policy and legal provisions mentioned in the previous section will help address this but communication between Ministries (and within MLGH and DHID) still needs to be significantly improved. Other than a generic Concept Note on Capacity Development from some years ago, the MTR found no overarching Capacity Development Strategy and Action Plan to guide and define NRWSSP capacity development component implementation.