WATER AND SANITATION PROGRAM

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1 WATER AND SANITATION PROGRAM Changing Conditions for WSS WSP s Response Jae So Manager, Water and Sanitation Program May 20, 2008

2 Changing Global Conditions WSS Access WSS Challenges WSP Response WSP and NTF PSI 2

3 Millions to be Served Each Year to Reach MDGs EA NA 2 5 ME 3 5 SA Water supply (rural/urban) Sanitation (rural/urban) LAC 7 17 AFR Access to improved water supply worldwide has risen from 77% in 1990 to 87% in 2006 SEA Access to improved sanitation facilities has risen from 41% in 1990 to 53% in Source: JMP, 2008

4 Access Gap Large proportion of population still lacks access to basic services: 884 million people without access to safe water 2.5 billion without sanitation Financing Gap Estimated annual need for investment and maintenance over $110 billion Of this total: Lower Income Countries: $53bn Low-Middle Income Countries: $50bn Upper-Middle Income Countries: $7bn USD bn Annual Investment Needs: WSS Maintenance Capital Policy and Institutional Gap 0.00 Source: World Bank estimates Water Sanitation Waste Water Rural WSS More effective service delivery possible with improvements in policy and institutions 4 Source: JMP, 2008; WDI

5 Challenge: Rapid Urbanization Africa s urban population quadrupled between 1971 and 2001 Asia s is expected to double by 2030 Population, billions World Urban Rural Peri-Urban: About 75% of the population growth over the next 15 years will be in cities of less than 5 million inhabitants, with over 50% in cities under 1 million where services are already in short supply and of poor quality Urban Poor: Rapid growth of slums is also a major area of concern because High density and inadequate urban planning makes the provision of sanitation services in slums a particularly difficult challenge USD bn Urban populations growing rapidly; further widening the WSS financing gap Financing Gap: Annual Investment Needs for WSS, EAP ECA LCR MNA SAR SSA 5 Source: World Development Indicators; World Bank estimates 0 Urban Rural 5

6 Challenge: Effective Public Private Partnerships Infrastructure Investment with Private Participation Energy Telecom Transport WSS Total demand for infrastructure investment and maintenance in WSS from developing countries is estimated at almost $110 billion per annum USD bn Government institutions will remain central and the private sector will be a key partner in developing infrastructure Private sector investment in infrastructure is increasing, but not in Water Need to engage along the entire spectrum of public-private solutions 9 8 Investment in WSS with PPI EAP ECA 7 LAC MNA Domestic private sector as critical participants in WSS sector USD bn SAS SSA Source: World Development Indicators

7 Challenge: Sanitation Beyond MDGs to Universal Coverage Cost Not Acceptable Simple Pit Improved Pit Pour Flush Open Defecation Fixed place Defecation 7 Source: Water and Sanitation Program, 2007

8 Challenge: Understanding Linkages Between WSS, Hygiene & Poverty Alleviation Deaths From Waterborne Disease Diarrhea, one of the main water-related diseases, is the 3rd most prevalent cause of death among children under 5 accounting for 17% of all deaths Hygiene education and promotion of hand washing can lead to a reduction of diarrheal cases by up to 45% Hygiene programs need to become an integral part of sanitation interventions Water Mortality About 3,900 children under 5 die everyday from diseases associated with lack of access to basic sanitation and unsafe water supply 8

9 Changing Conditions WSP Response WSP and NTF PSI 9

10 WSP s Mission: Focus on the poor Support poverty reduction by helping countries and their people achieve sustainable access to water and sanitation and safe hygiene practices Global Knowledge Matrix management; local and global learning 5 GPTs: Sanitation, Urban Services for the Poor, Finance, Communications, Rural Global Projects on Sanitation & Hygiene and Domestic Private Sector Participation Local Impact Strong & long term country presence and regional reach Support to policy dialogue informed by global best practice and local innovation Committed to impact on the ground 10

11 WSP s Cross Sectoral Focus Building on sectoral efforts in the past, WSP s strategy going forward will focus on cross-sectoral interfaces at each level of sustainable service delivery and financing for WSS: Increase service delivery to citizens, with a focus on gender and underserved populations Improve institutions and accountability and provide capacity support to decentralized levels of local governments for service providers Strengthen regulatory, institutional, and financial environment Strengthen country level monitoring to track not only water, but sanitation and hygiene and impact on the poor Support donor harmonization and increasing partnerships among stakeholders 11

12 WSP Focus Countries Greatest Needs: Countries that display opportunities to launch institutional development and policy formulation, e.g. Fragile States Greatest Reform Potential: Countries that demonstrate willingness & readiness to reform and scale-up but lack capacity Greatest Learning Potential: Countries with greatest potential for gaining highly relevant knowledge transfer Bolivia Ecuador Honduras Nicaragua Peru Benin Burkina Faso DR Congo Ethiopia Kenya Mozambique Niger Rwanda Senegal Tanzania Uganda Zambia Bangladesh India Pakistan Cambodia Indonesia Lao PDR Philippines Vietnam 12

13 WSP Regional Strategies WSP LAC Sector policy support Institutional development Focus on sanitation and hygiene Information management Behavioral changes Sanitation marketing with businesses Decentralization Consolidate regional communications strategy WSP AFR Support country level plans and design & implementation of reforms for MDGS Sustainable financing strategies Strengthen sector coordination Innovative solutions Promote best practices WSP SA Commitment to reform and poverty reduction Catalyzing sustainable institutional change Develop policy and incentives for accountability Service provider reform Social accountability Communications for reform WSP EA Focus on sanitation Pro-poor WSS interventions Institutionalize best practices Communications of policy reform Knowledge generation and management Strategic partnerships 13

14 Changing Conditions WSP Response WSP and NTF PSI 14

15 NTF PSI Contributions 40% NTF PSI Funds 60% NTF funds are used to support WSP s Global Core and Africa core Multi-Donor Trust Funds NTF funds support the WSP regions of Africa, East Asia, South Asia, Latin America Africa receives 40% of the funds NTF funds are critical to WSP initiatives towards meeting MDG targets Africa Global Core 15

16 WSP Global Services to the Urban Poor Team Bangladesh: Services to Vulnerable Population Dhaka s poor live all over the city, with less access to services: 70% do not have access to piped water 90% do not have access to sewage line 43 out of 1,925 slums within 100 meters of a public toilet 7,600 households within 50m of the river Prone for flooding 16

17 WSP Global Finance Team Kenya: Micro-finance for piped water Domestic commercial banks to provide loans directly to 21 community owned piped water systems people will benefit from the project GPOBA fund Microfinance Institution Small Piped Water Project 20% Athi Water Services Board OBA subsidy Loan to project Debt service Service provision agreement 80% 40% 0% 40% Innovations Use of microfinance on a project finance basis for infrastructure Use of output based aid (OBA) Catalyzing a domestic private sector business development services sector to support water providers 17

18 WSP Domestic Private Sector Peru: Sanitation Local Market Approach Families prioritize and demand quality sanitation products and services Local providers are certified and increase their profits Generate demand POPULATION LOCAL PROVIDERS Strengthen supply Increase micro credit access FINANCIAL INSTITUTIONS SANITATION LOCAL MARKET LOCAL GOVERNMENT Support local development Micro-credit products that respond to expectations of families and local providers Private and public institutions and local government facilitate the development and promotion of sanitation markets 18

19 WSP Global Communications for Reform Team Create support for WSS reform among key constituencies Provide information on benefits and consequences of water sector reforms Train frontline service providers on communication skills needed to inform, persuade, and motivate the poor who require access to improved water and sanitation services Assist civil society in monitoring project implementation, facilitating dialogue with field-based implementation agencies on key issues that hinder public acceptance and support for projects Engage media professionals in twoway dialogue on key issues on water sector reforms for balanced treatment of stories in print and broadcast media 19

20 Selected WSP / NTF-PSI Regional Initiatives Africa East Asia South Asia Projects/activities in Africa were geared towards building capacity to reach the MDGs in Mozambique, Senegal and West African countries, and WSS sector finance and monitoring activities in East and Southern Africa and Mozambique Leveraging investment into regions WSS sector by bilaterals, development banks, and regional clients through WSP programs to achieve the MDGs Developing institutional capacity to achieve MDGs Enhance capacity to use strategic communications to scale up sector reform Reform Approaches for Improved Water, Sanitation, and Sewage Waste Management in several districts of India Improving fiscal framework for sustainable, equitable urban service delivery in India Latin America Support sustainable WSS development in peri-urban Lima Promoting sanitation Implement improved technology, management, and social participation models in peri-urban areas 20

21 Africa Is the Continent Most Off-Track The WSS MDGs The world is on track to meet the drinking water target > Sub-Saharan Africa is making the slowest progress The world is not on track to meet the sanitation target > Sub-Saharan Africa lags far behind the rest of the developing world Drinking Water MDG Target Sanitation MDG Target 100% 80% 60% 40% 20% 100% 80% 60% 40% 20% 0% Developing Regions Developed Regions World Target Sub-Saharan Africa 0% Developing Regions Developed Regions World Target Sub-Saharan Africa 21 Source: JMP 2008

22 WSP s Support Strategy for Africa Intensify Core Support To Focus Countries Focus Country, Neglected Sub-sectors Approaches For Fragile States Develop Practical Tools and Knowledge Policy support; MDG roadmap development and monitoring; sector coordination Sector Information Management Systems (SIMS) Sanitation: Ethiopia, Uganda Rural Water: Benin Urban Poor: Kenya Scoping and strategy guidance notes for fragile states facility based on WSP experience Domestic private sector sanitation/hygiene; urban poor; rural water supply; financing strategies Strengthen Regional Partnerships and Networks AMCOW, afdb, EUWI, UN, AWOP, ITN, RWSN 22

23 WSP Initiatives in Africa Senegal: Sector Information Management Systems (SIMS) DEVELOPMENT OF SIMS 1. STRATEGIC DECISION-MAKING Sector Policy, Strategy & Targets Sub-Sector Strategies and Operational Plans OPERATIONALIZATION OF SIMS 5. INSTITUTIONALIZATION OF SIMS 2. SECTOR STRATEGIC MONITORING 3. SECTOR IMPLEMENTATION MONITORING 4. DISSEMINATION OF MONITORING REPORTS SIMS established for National Program on Safe Drinking Water (PEPAM) Monitoring implementation of activities through funds mobilized for sector Monitoring results through progress in access rates, performance (efficiency of expenditures, viability of businesses, unit costs), and impact Final utilization of M&E system for resource allocation, programming and evaluation 23

24 WSP Initiatives in Africa Benin: Support to RWSS Strategy Aligned to MDGS Funding for rural water increased 120% over 5 years Supply rate of new water points tripled in 5 years, now exceeds pace to reach MDGs Rate of non-functioning water points dropped from 20% in 2003 to 14% in 2006 Access to clean water rose from 35% in 2002 to 44% in 2006 W a te r P o in t E q u i v. 2,500 2,000 1,500 1, Year Number of new built Water pt. Number of water pt. to be rehabilitated 24

25 WSP in Fragile States Rwanda: Providing Water and Sanitation Services In 2002, Rwanda faced strong WSS challenges: High rate of broken down systems Poorly centralized sector planning and management capacity Inadequate framework legislation and regulations Lack of sector and donors coordination WSP supported development of sector policy frameworks (including MDG Roadmaps for Rural WSS), coordinating sector agencies and catalyzing the private sector Access to clean water increased by 600,000 people in 2005 and % of about 850 systems are managed by the private sector Water supply in poor settlements in Kigali peri-urban areas doubled from about 30,000 m3/day to 70,000 m3/day Rural water supply targets to increase access to safe drinking water from 40 percent of the population in 2003 to 56 percent in 2007 has been largely achieved 25

26 WSP in Fragile States Fragile States Crises: Fragile states pose the most difficult development challenge, with weak institutions and high risks of conflict constraining poverty reduction and service delivery for their own populations and creating potential negative spillovers for neighboring countries. Somalia: Building capacity for MDGs, RWSS programs DRC: Leveraging market based resources in WSS, strategic communications for MDG advocacy, regional partnerships Angola: Regional support program Zimbabwe: Hygiene promotion, Rural household water supply, Local innovation to global sanitation initiatives Colombia: Private sector WSS initiatives Lao PDR: Policy reform, institutional strengthening, Sanitation promotion Cambodia: RWS private sector financing; Water filtration Burkina Faso: Hygiene promotion, small and medium private enterprise, support to WSS MDG strategy Cambodia: RWS private sector financing; Water filtration 26

27 WSP / NTF-PSI Initiatives in Fragile States Challenge: Fragile States are the toughest WSS MDG challenge in Africa: Least Working Infrastructure Worst Poverty Least Money Least State Leadership Least International Support Lowest Capacity High Populations, e.g. Sudan, DRC Objective: Develop replicable models/approaches/instruments to accelerate WSS development in Fragile States Scope: $0.7m project to draw from all regions in which WSP operates Outputs: Global Scoping Review of WSS in Fragile States Approaches Initiatives in 5 Fragile States Global conference to share results and advocate for Fragile State focus Status: Awaiting final project approval. Opportunity to scale up with a MDTF on Fragile States 27

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