Arrangements and cost of providing support to rural water service providers

Smits, S. … [et al.] (2011). Arrangements and cost of providing support to rural water service providers. (WASHCost working paper ;  no. 5). The Hague, The Netherlands, IRC International Water and Sanitation Centre.  42 p. :  1 fig., 16 tab.  37 ref.
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This joint WASHCost and Triple-S paper is about the costs of providing direct and indirect support to rural water service provision. It provides an overview of the features such support entails, how those features can be organised, what they cost and how they can be financed. It also provides recommendations to countries for strengthening support. The paper is based on a desk review of existing literature from seven countries and an analysis of primary cost data collected by the WASHCost project in Andhra Pradesh (India), Mozambique and Ghana in 2010 and 2011.

Ladders for assessing and costing water service delivery

Moriarty, P. … [et al.] (2011). Ladders for assessing and costing water service delivery. (WASHCost working paper; no. 2). 2nd ed. The Hague, The Netherlands, IRC International Water and Sanitation Centre. iv, 19 p. : 5 fig., 5 tab. 14 ref.
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This working paper introduces the concept of service levels, grouped as sequential rungs on a ladder, as a way of differentiating between broad and recognisable types (levels) of service. By developing this metaphor, a structure is provided to analyse the data being collected in different countries and settings, not just in terms of the technologies being used, but in terms of the domestic water services being received. The paper introduces water service levels and explains how these can be used as integral components of an analytical tool for applied research or benchmarking. It is best read together with Working Paper 3: Assessing sanitation service levels. Both papers are aimed at providing a framework for data analysis of life-cycle costs. This second edition reflects the experiences of applying this methodology in Burkina Faso, Ghana, Mozambique and India (Andhra Pradesh).

Life-cycle costs approach: costing sustainable services

Fonseca, C. … [et al.]. (2011). Life-cycle costs approach : costing sustainable services. (WASHCost briefing note ; 1a). The Hague, The Netherlands, IRC International Water and Sanitation Centre. 37 p. :  6 fig., 7 tab.  22 ref.
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This briefing note describes the life-cycle costs approach and why it was developed. It explains the main cost components for water and sanitation in rural and peri-urban areas. Detailed cost breakdowns are presented in the annexes. Different types of analysis can be made with disaggregated cost information: comparing costs of infrastructure components, comparing the cost of services delivered or comparing the costs of difference service delivery models. The briefing note explains the building blocks used in the life-cycle costs approach for all these types of analysis and explores how these fit with different accounting practices. It explains why the WASHCost Project has adopted a regulatory accounting approach to calculate aggregated total expenditure costs and  provides a step-by-step approach to comparing and reporting costs.

Meeting the challenge of financing water and sanitation : tools and approaches

OECD (2011). Meeting the challenge of financing water and sanitation : tools and approaches. (OECD studies on water). Paris, France, OECD Publishing. 142 p. : 13 fig., 5 tab.
ISBN : 9789264120525 (PDF) ; 9789264120518 (print)
doi: 10.1787/9789264120525-en

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This report provides an overview of key issues related to financing the water and sanitation sector in both developed and developing countries (part 1), and presents tools and approaches developed by OECD for both policy makers and practitioners (part 2).

Part 1 is organised in three chapters. Chapter 1 identifies the investments required to build, operate and maintain the infrastructure for providing sustainable water and sanitation services. It then examines the health, economic and environmental benefits of water supply and sanitation (WSS).

Chapter 2 assesses the current state of WSS and examines investment needs, identifies the financing sources, and estimates the financing gaps to reach internationally agreed targets.

Chapter 3 examines where the money is going to come from, including from a combination of efficiency gains, adjusted targets and additional financial resources; the “3Ts” – tariffs, taxes and transfers; and repayable financing.

In part  2, chapter 4 begins by introducing the tools developed by OECD to address the key financing issues described in part 1.

Chapters 5 to 10 include brief descriptions of the following tools:

• Strategic Financial Planning for WSS at national or regional level – the FEASIBLE tool
• Financial planning tool for water utilities
• Multi-year investment planning tool for municipalities
• Guidelines for performance-based contracts
• Water Utility Performance Indicators (IBNET)
• Private sector participation in water infrastructure – checklist for public action

Patel Grand Challenge launches with competition to create world’s first “Smart Pot”

The University of South Florida’s (USF) Patel School of Global Sustainability through its Center for Global Solutions launched the first Patel Grand Challenge at the International Water Association’s Development Congress in Malaysia on 21 November 2011. The challenge invites inventors in developing nations to create a low-cost and easy-to-use water purification device that could save millions from the perils of contaminated drinking water.

The challenge was issued by Dr. Kiran C. Patel during the congress’ opening ceremony to over 600 delegates from around the globe. (To access more details, conference photos, and press coverage go here)

The challenge welcomes pre-proposal submissions through March 2012. Five applicants will be shortlisted and awarded up to US$ 8,000. The five finalists will be invited to prepare full proposals that will be reviewed by an international panel of experts at a major event. The winning proposal will receive up to US$ 100,000.

More on the Patel Grand Challenge and the Patel School of Global Sustainability can be found at www.psgs.usf.edu

Full details of the 2011 Patel Grand Challenge will be made available on 15 December 2011 at:
www.psgs.usf.edu/patel-center/section/patel-grand-challenge1

Financing Water and Sanitation for All in Africa, Ouagadougou Burkina Faso, 05-08 December 2011

Organised by the Centre Africain pour l’Eau Potable et l’Assainissement (CREPA), this meeting will focus on the need to improve investment in the water and sanitation sector in Africa. About 200 participants are expected from development organisations, bilateral and multi-lateral groups, civil society organisations as well as governments.

The four-day meeting will include an African Workshop on the pricing of water and sanitation services and sanitation, a ministerial dialogue, a round table of donors, and the launch of an African Forum on innovative local solutions in the field of hygiene, sanitation and drinking water supply.

Read the full announcement (in French)

Netherlands: water escapes ODA cuts in 2012

The Netherlands will increase overseas development aid (ODA) in the water sector next year despite an overall cut of € 958 million in ODA. Total spending for integrated water resources management (IWRM), water and sanitation in 2012 will amount to € 181 million, which is € 54 million more than in 2011. This represents an increase in the allocation for the water sector from 2.4% of ODA this year to 4.1 % in 2012 [1].

Next year € 86 million will go to bilateral water sector aid in 10 countries:

Bangladesh (€ 22.12 million); Mozambique (€ 17.20 million); Indonesia (€ 13.10 million); Benin: (€ 9.35 million); Yemen € 5.94 million) ; Mali (€ 5.50 million); Kenya (€ 4.45 million); Viet Nam (€ 4.02 million); Ethiopia (€  4.00 million); Ghana (€ 0.25 million) [2].

The Netherlands has chosen water as one of its policy spearheads for development aid, together with food security, security and the legal order, and sexual and reproductive health and rights (SRHR) (incl. HIV/AIDS) [3]. The selection of water as one of the spearheads can be partly attributed to the successful lobby of the Netherlands Water Partnership (NWP).

See two recent videos of Dutch-supported drinking water programmes in Benin and Mozambique.

[1] Aan de slag met het nieuwe ontwikkelingsbeleid, Netherlands Government press release [in Dutch], 20 Sep 2011

[2] HGIS-nota 2012, Netherlands Government [in Dutch],  20 Sep 2011

[3] Ministry of Foreign Affairs – Dutch development policy

African Water Facility Call for Concept Notes on Sanitation Improvement for Urban Poor

The African Water Facility (AWF) has issued a Call for Concept Notes under the urban sanitation theme for the urban poor in Sub-Saharan Africa.

The AWF will fund up to ten projects that promise to address the needs and to sustainably improving the sanitation situation of a densely populated urban poor community, or of a small to medium size town relying mainly on latrines and septic tanks.

The funds allocated will vary from € 800 000 to € 1 200 000, for a duration of 24 to 36 months.

The submission deadline is September 30, 2011

Bangladesh: govt sanitation subsidy scheme ineffective, experts say

The government’s subsidy policy for sanitation needs to be more effective and more money should be allocated if Bangladesh is to meet is target of sanitation for all’ by 2013, experts say.

This is the conclusion of a study conducted among 21,121 households by the Human Development Research Centre (HDRC) with the support of WaterAid, UNICEF, and the Ministry of Local Government Division.

Economist Abul Barakat, who led the research team, said a Union Parishad, the lowest tier of the local government, receives Tk 145,000 [US$ 1,910] while a Pourashabha or municipality gets Tk 292,000 [US$ 3,840] a year in sanitation subsidy. “But the allocation is not properly utilised.”

New OECD book: Financing Water and Sanitation

A new book in the OECD Report Series looking at water and sanitation financing in both OECD and developing countries is due for publication on 31 October 2011.

OECD (2011). Financing water and sanitation : challenges, approaches and tools. (OECD report series). London, UK, IWA Publishing. 115 p. (paperback). ISBN: 9781780400327
Price and ordering details

Publisher’s abstract

The investments needed to deliver sustainable water and sanitation services, including the funds that are needed to operate and maintain the infrastructure, expand their coverage and upgrade service delivery to meet current social and environmental expectations, are huge. Yet, most systems are underfunded with dire consequences for water and sanitation users, especially the poorest. Providing sustainable drinking water supply and sanitation services requires sound financial basis and strategic financial planning to ensure that existing and future financial resources are commensurate with investment needs as well as the costs of operating and maintaining services. Some of the key messages of this report are:

• WSS generate substantial benefits for the economy
• Investment needs to generate these benefits are large in both OECD and developing countries
• Tariffs are a preferred funding source, but public budgets and ODA will have a role to play, too
• Markets-based repayable finance is needed to cover high up-front capital investment costs
• Strategic financial planning and other OECD tools can help Governments move forward