WASH news Finance

Bangladesh: microfinance agencies enable entrepreneurs to provide more sanitation technology options

October 30, 2009 · Leave a Comment

Over the last five years in Bangladesh, more than 90 million people have moved away from open defecation. While 88 percent of the population now have access to, and are using latrines, ensuring the quality and sustainability of these latrines is crucial. Without ready access to micro-credit and in the absence of well marketed technology options, many households are under pressure to move from very low cost to very high cost technology options with a significant debt burden.

In July 2009, the Association for Social Advancement: ASA (a leading Micro-Finance Institute) signed a Memorandum of Understanding with Dhaka Ahsania Mission (a national non-governmental organization) to provide loans at low interest to local small entrepreneurs for producing, marketing, and promoting appropriate sanitation technology options.

Dhaka Ahsania Mission will pilot the new financing mechanism in Jamalpur Sadar Upazilla (a sub district) with trained entrepreneurs. The Water and Sanitation Program (WSP) facilitated this process of linking local private manufacturers with micro-finance agencies to bring finance and technology together to make available a range of affordable sanitation options for households.

Source: WSP Access, Oct 2009

→ Leave a CommentCategories: Microcredit · NGOs · Sanitation · South Asia
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Honduras: national water utility faces deficit, donors withdraw

October 26, 2009 · Leave a Comment

Honduran national water utility Sanaa is likely to close 2009 with a budget deficit of over 200mn lempiras (US$ 10.6mn), director Arévalo Fuentes said. The deficit is due to high operational costs, particularly in paying personnel, a problem partly attributable to the inadequacies of the previous administration, according to Fuentes.

Sanaa’s financial situation has been compounded by the withdrawal of funding from international organizations after the military coup in June 2009, former Sanaa director Jorge Méndez said.

Spain’s government was to provide 440mn lempiras, which was to be used to repair pipelines, and the World Bank was also to provide 100mn lempiras.

To add to Sanaa’s problems, it is having to impose severe water rationing in capital Tegucigalpa due to low levels in reservoirs. More than 50% of the city’s water supply is lost due to leaks in pipelines.

Source: BNamericas.com [subscription site], 19 Oct 2009

→ Leave a CommentCategories: Governance · Latin America & Caribbean · Water supply · Water utilities
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Mexico, Mexico City: SACM water fines not viable – legal advisor

October 26, 2009 · Leave a Comment

Mexico City water utility SACM’s proposal to impose fines on clients who waste water is not legally viable, federal district (DF) government legal advisor Leticia Bonifaz said. SACM director Ramón Aguirre previously proposed a plan that would have imposed fines of up to 15,000 pesos (US$1,149) on individuals and businesses caught wasting water.

The plan, if implemented under the current Mexico City water law, would result in a legal battle for SACM due to the fact that the concept of water waste is not included in the law, according to Bonifaz. “My advice to SACM is that if we impose these fines, people will appeal against them and we are not going to win those appeals,” Bonifaz said.

The DF legal department is now working on a reform to the law, which is expected to be ready in November 2009.

Source: BNamericas.com [subscription site], 14 Oct 2009

→ Leave a CommentCategories: Charges · Latin America & Caribbean · Policies · Water supply · Water utilities
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Body of Knowledge on Infrastructure Regulation

October 23, 2009 · Leave a Comment

Body-of-Knowledge-site

Created with funding from the World Bank and the Public-Private Infrastructure Advisory Facility (PPIAF), this web site provides resources for capacity building and policy analysis in the field of infrastructure management and regulation.

The Annotated Reading List contains narratives and references, including eight chapters that cover major themes in utility regulation: general concepts, market structure, financial analysis, incentive regulation, tariff design, non-price issues (such as service quality, environmental, and social considerations), information issues, and the regulatory process.

The site includes 500 PDFs, including case studies that highlight practices relevant to infrastructure reform.

The site has been recently updated, and now includes Frequently Asked Questions. FAQ issues include pricing to promote access for the poor and governance/regulatory issues associated with state-owned and privately-owned water providers. In addition, the material emphasizes the need for cooperation between water resource agencies and utility sector regulators.

The Glossary is translated into Chinese, French, Italian, Portuguese, and Spanish.

→ Leave a CommentCategories: Charges · Governance · Government · Water resources management · Water supply · Water utilities · Web sites
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New Procurement Notices for the Global Sanitation Fund in Uganda and Senegal

October 22, 2009 · Comments Off

WSSCC’s Global Sanitation Fund has issued two new calls for tenders and expressions of interest. Below is a brief description, deadline and link for more information related to Country Programme Monitors in Uganda and Senegal.

• Call for Expression of Interest (EOI), Country Programme Monitor, Global Sanitation Fund, Uganda. Deadline date: 5 November 2009
Download the call

• Notice for Open Tender (RFP), Country Programme Monitor, Global Sanitation Fund, Senegal. Deadline date: 16 November 2009
Dowload the call

Please send enquiries about these notices to WSSCC and not to this blog.

About the Global Sanitation Fund

The purpose of WSSCC’s Global Sanitation Fund is to help large numbers of poor people to attain safe and sustainable sanitation services and adopt good hygiene practices. The Global Sanitation Fund is a single pooled fund open to contribution from any source. The money is allocated to Executing Agencies in carefully selected countries, which then grant funds to Sub-Grantees who implement the sanitation and hygiene work programmes agreed for each country. The whole system is closely monitored by WSSCC as well as in country and global audit mechanisms, of which the Country Programme Monitors are an important mechanism.

More information on the Global Sanitation Fund

Comments OffCategories: Africa · Monitoring & evaluation · Sanitation · Tenders · UN
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Asian sanitation data book 2008 includes investment and cost statistics

October 21, 2009 · Leave a Comment

A survey of sanitation in 27 Asian cities, published by the Asian Development Bank, includes statistics on capital investment, O&M expenditures, and revenues and fees for services. The “Asian sanitation data book 2008” features raw data and analyses on the sanitation situation in cities in East and South Asia.

Asian-sanitation-data-book-2008-cover

Of the 27 cities, 1 is in Bangladesh, 3 are in the People’s Republic of China, 4 are in India, 1 in Indonesia, 3 in the Lao People’s Democratic Republic (Lao PDR), 5 in Nepal, 3 are in the Philippines, 2 in Sri Lanka, and 5 in Viet Nam.

Although the information collected was not complete for all cities, the book draws a number of conclusions from the data.

Based on the survey, the key findings related to finance are:

  • Although almost all cities are aware of their sanitation problems, only 40% of responding cities have sanitation plans, and few were able to provide information on capital expenditure and operations and maintenance costs.
  • Most cities that provide sanitation services rely on government funding to pay for capital and operating costs, with only 10% indicating that sanitation fees and charges can cover their costs.
  • Multiple agencies have responsibilities for some aspects of sanitation. However, local government seems to be the primary organization. These organizations were operating under at least several national laws and one local law. These institutional arrangements may frustrate action and reduce accountability.

The findings, despite qualifications about data quality, point to several priority actions that government and other stakeholders need to undertake, including:

  • Simplify institutional arrangements to strengthen accountability and avoid multiple-agency involvement that can cause delays in taking action; set in place a coordinating mechanism.
  • Review operation and maintenance expenditures and cost recovery policies to ensure sanitation providers can sustain operations and extend services.
  • Improve sanitation benchmark indicators and set in place a sanitation information management system that will be regularly updated to help planners and decision makers make investment and operations decisions.
  • As significant investment is needed, consider sourcing funds from beyond government sources—such as the private sector and user fees, and other revenue-generating mechanisms.

ADB (2009). Asian sanitation data book 2008 : achieving sanitation for all. Manila, Philippines, Asian Development Bank. x, 134 p. : 2 fig., 27 tab. ISBN 978-971-561-808-3
Download full document

→ Leave a CommentCategories: Books · Charges · Costs · East Asia & Pacific · Government · Sanitation · South Asia
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Call for proposals – Conflict and Cooperation over Natural Resources in Developing Countries [Deadline 03 Nov 2009]

October 20, 2009 · Leave a Comment

WOTRO Science for Global Development has recently launched the first call of the research programme Conflict and Cooperation over Natural Resources in Developing Countries (CoCooN) – integrated projects.

One of the three themes is: Water resources, conflict and cooperation.

CoCooN is a knowledge, research and innovation programme funded by the Directorate General of Development Cooperation (DGIS) of the Ministry of Foreign Affairs of the Netherlands and the Netherlands Organisation for Scientific Research (NWO). Its aim is to contribute to sustainable development, poverty reduction and the realisation of the Millennium Development Goals (positive change). The objective is to contribute to evidence based policy development and practice in the field of conflict and cooperation over natural resources, and to adequately manage, resolve and learn from conflicts over natural resources.

An Integrated Project (IP) should make clear how it will constitute and operationalise activities and projects for three facilities:

  • Knowledge sharing
  • Trans-disciplinary research
  • Capacity development and training

An IP has to be directed by a consortium and thus the application for an IP has to be submitted by the consortium. A consortium consists of representatives of at least four different partner institutes. These partners include

1. a Southern-based research institute;
2. a Northern-based research institute;
3. a Southern-based non-research institute and
4. a Northern-based non-research institute.

At least one of the institutes should be based in a partner country of Dutch bilateral development cooperation. The consortium nominates a coordinator, who will act as the main applicant.

Read more

Deadline: 03 November 2009

→ Leave a CommentCategories: Bilaterals · Grants · Research · Water resources management
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Mexico, Mexico City: DF private resellers charge up to 221% more for water – Profeco

October 20, 2009 · Leave a Comment

Private resellers in Mexico’s federal district (DF) are charging up to 221% more than the regular rate for water, according to data from national consumer protection agency Profeco.

The resellers, who operate from tankers, purchase one cubic meter of water for 28 pesos (US$2.10) from the local government and resell it for as much as 90 pesos, a difference of 221%, Profeco reported on its website.

Mexico City water utility SACM charges residents an average of 3.50 pesos per cubic meter.

Many districts in the city have experienced cuts in their water supply, due to the serious drought that is currently affecting the area.

Some of these districts receive water from the government in shifts, which is a free service. However, in many cases residents rely on private suppliers, who offer water at a premium.

Profeco recommended that residents install water saving devices in their homes, which can reduce water usage per person by up to 30,000l/y.

Source: BNamericas [subscritption site], 06 Oct 2009

→ Leave a CommentCategories: Charges · Latin America & Caribbean · Private Sector · Water supply
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New Danida technical note on programme support preparation

October 14, 2009 · Leave a Comment

The Danish Ministry of Foreign Affairs and the Technical Advisory Services have published a ”Technical Note on Programme Support Preparation”. This note accompanies the 2009 version of the Guidelines for Programme Management (GPM). The most fundamental change in programme management, reflected in the revised GPM, is the principle of sector budget support (SBS) as the default modality of Danish sector (and thematic) programme support to the public sector. This is the consequence of the decision taken in the programme committee in June 2008 and the donor commitment in the Accra Agenda for Action (AAA) to make maximum use of country systems.

With a starting-point in the GPM, the note provides the Representations and other concerned parties with additional guidance for the preparation and formulation of support programmes based on the principle that SBS is the default modality. The principle of using SBS as default covers the so called traditional sectors as well as the inter-sectoral and broader thematic areas (such as governance, agriculture, environment). The note therefore applies to all these cases.

Some of the implications of the principle are that,

  • the ten budget support principles now form part of the programme support preparation process
  • the risk identification and assessment becomes more systematic than before
  • those responsible for programme support preparation need a more thorough knowledge of the partner country systems than has been necessary up to now.

Comments or suggestions can be sent by e-mail to UFT [at] UM.dk

Download the full Technical Note

Source: Danida Devforum, 12 Oct 2009

→ Leave a CommentCategories: Bilaterals · Development aid · Policies
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Put your mouth where your money is

October 9, 2009 · Leave a Comment

A recent article by IRIN examines the role of social media in monitoring development aid and promoting transparency.

“An emerging body of websites that can provide instant feedback on the use of aid money is sparking debate about whether such online tools could not only revolutionize non-profit fundraising, but also boost aid accountability.”

After Kwale Subdistrict Hospital in Kenya announced on German fundraising site betterplace.org that it needed money to buy antibiotics to control a cholera outbreak, the first contributions came in after several people people vouched for the project, including one who blogged about a visit to the hospital.

“The ‘web of trust’ that these different actors build will sway the member’s fundraising chances, said Joana Breidenbach, one of the co-founders of betterplace.org. Breidenbach said these sites herald an era of more transparency whereby programme feedback is a click away and can be shared immediately with thousands – and with pictures as proof.”

“Nick Stockton, head of HAP-International, an organization that evaluates and certifies aid agencies, said the new tools have had a positive impact”. Jonathan Waddingham, from fundraising website JustGiving, cited supporters of charity: water who raised money though an online funding event – termed a “Twestival”.  A few weeks later, the supporters could see the wells that they has funded being drilled, live on Internet.

“But Ben Ramalingam, head of research and development at ALNAP, an organization that aims to boost humanitarian performance through better learning and accountability, said while encouraging feedback is a positive development, people should not assume web-posted feedback is representative”.

Ramalingam questioned whether “such mechanisms give a balanced range of information about a particular project” and if they might “give prominence to the most controversial, visible viewpoints.” “Project evaluations should be impartial, independent and balanced”, he said.

“A number of studies have shown that many donors focus more on the act of giving rather than on its long-term impact”, Ramalingam noted. “Givers often lose interest as complex messages start to filter through. How do you better involve the donor in the process of giving and responding to feedback and adapting their giving practices accordingly? I am not sure these websites do that yet…instead you get a snapshot of what has worked and what hasn’t.”

But HAP-International’s Stockton said such feedback is “democratizing the aid business” and betterplace’s Breidenbach added that “projects become viable only through building trust among project implementers, beneficiaries and donors.” “The control comes from the [online] community,” she said. “If you have a critical mass of people involved, then you develop intelligent crowd-sourcing mechanisms…We don’t necessarily remove really silly projects – but they tend to get badly ranked.”

Breidenbach noted that even well-established brand names like Care International, the German Red Cross and World Vision, drawn by online fundraising’s low-cost and efficiency, have posted on fundraising sites in recent months. Experts estimate that traditional “offline” fundraising methods, such as direct mail campaigns, use on average one-third of fundraising revenue.

“These sites do have the potential to add a missing element to the accountability and transparency puzzle,” Ramalingam told IRIN. “If the context is right, a well-articulated and timely bit of project feedback might well trigger an aid agency to change or improve something…but it won’t happen every time.”

Source: IRIN, 07 Oct 2009

→ Leave a CommentCategories: Development aid · Fund-raising · NGOs · Transparency
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