Water and Sanitation Program: End of Year Report, Fiscal ...pubdocs.worldbank.org/en/.../WSP-EndYear2016-Report-02122016.pdf · 1 Water and Sanitation Program: End of Year Report,

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Water and Sanitation Program: End of Year Report, Fiscal Year 2016

The Water and Sanitation Program is a multi-donor partnership, part of the World Bank Group’s Water Global Practice, supporting poor people in obtaining affordable, safe, and sustainable access to water and sanitation services.

Photo Credit:Unless stated, all photos used in the report are from World Bank Flickr account.

November 2016

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1. Introduction | 1

2. Sharing Global Knowledge | 5

3. Scaling Up Rural Sanitation and Hygiene | 9

4. Creating Sustainable Services through Domestic Private Sector Participation | 17

5. Supporting Poor-Inclusive Water Supply and Sanitation Sector Reform | 25

6. Targeting the Urban Poor and Improving Services in Small Towns | 31

7. Adapting Water Supply and Sanitation Delivery to Climate Change Impacts | 39

8. Delivering Water Supply and Sanitation Services in Fragile and

Conflict-Affected States | 43

9. Global Communications and Advocacy | 51

10. Administration and Finance | 57

Annex 1: Fiscal Year 2016 Disbursements by Country | 63

Table of Contents

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Evolving, Educating, and Integrating

Over the last 40 years, the Water and Sanitation Program (WSP) has led or supported many of the advances made within the water and sanitation sector. As a multi-donor partnership, we’ve evolved from our early mission of focusing on improving and testing low-cost water and sanitation technologies to a global leader providing best practices around the world.

WSP has now fully integrated its work into the World Bank’s Water Global Practice (GP). This integration is helping to incorporate decades of field-based technical assistance to leverage the World Bank’s finance and knowledge systems under one management structure.

Your help and guidance have also helped finalize the new Global Water Security and Sanitation Partnership between the World Bank and its development partners to achieve a water-secure world for all. The Partnership builds on a long history of collaboration and will provide critical resources and thought leadership to tackle increasingly complex water resource challenges.

This new framework supports the analytical work and technical assistance that has been the foundation of WSP’s mission to foster a more holistic approach by providing new opportunities to test innovations, build capacity where it is needed most, and shape the future of client demand for the financial resources and expertise offered by the World Bank and other development partners.

WSP will continue to grow to meet the Sustainable Development Goals (SDGs), which lay out ambitious challenges for the water sector. Our focus will broaden to encompass all five priorities identified by the Water GP: sustainability, inclusion, investment in institutions and infrastructure, financing, and

Manager’s Message

resilience to ensure that countries are able to respond to water shocks and stresses as a result of climate change.

WSP’s decades of work to advance the rural sanitation agenda through technical assistance and affordable technologies are being mainstreamed into the country programs. On the urban front, WSP’s holistic approach to help cities create more integrated citywide sanitation plans has gained momentum, contributing to the development of World Bank projects that recognize the need for a mix of onsite and sewerage systems to create sustainable services for all.

This report outlines the outcomes in fiscal year 2016 along with highlights summarizing the successes from the last six years of our Business Plan. This year, with your support, we’ve helped expand sanitation services, strengthened domestic service providers to expand services, strengthened our work in fragile environments and climate resilience, and continued to produce global products that help share knowledge across boundaries to help providers in one country learn from each other.

In closing, we would like to thank all the donors for their active participation and support in “co-creating” the Global Water Security and Sanitation Partnership. We anticipate that it will be operationalized in early 2017, and will take the long and time-honored tradition of WSP to a new level of ambition, commensurate with the vision set out through the SDGs. We thank you.

Jyoti Shukla, Senior Manager, Water and Sanitation Program,Water Global Practice

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Introduction

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The Water and Sanitation Program is a multi-donor partnership administered by the World Bank Group (WGB) as part of the Water GP. WSP works with governments, donors, academia, civil society, and the private sector to help secure affordable, safe, and sustainable access to water and sanitation services for the poor. WSP works in 38 countries across Africa, East Asia, Latin America and the Caribbean, and South Asia.

Initially established in 1978 as a cooperative between the World Bank and the United Nations Development Program to explore cost-effective technologies and models for consumers, WSP has supported several advances in the water and sanitation sector over the last three decades. The focus of our work has evolved from looking at the technologies needed to expand access to a broader approach that addresses the needs of the sector from a more holistic perspective. With more than 130 staff, WSP works closely with World Bank operations and government clients to scale up innovative approaches, encourage policy reform, and build institutions, and plays a vital role in achieving World Bank Group goals of eradicating poverty and boosting shared prosperity.

WSP works in six core global business areas under the 2011–2016 business plan, which is coming to a close this year. Each business area addresses critical global water and sanitation challenges to bring lasting solutions that improve access for the poor. All six business areas are not implemented in every WSP focus country. Specific activities at the country and regional levels are selected in accordance with client demand and WSP’s overall country and strategic priorities.

Scaling Up Rural Sanitation and Hygiene. WSP helps expand sanitation services by supporting governments in strengthening enabling environment conditions to deliver at-scale and sustainable access to sanitation services for the poor. With a focus on building a rigorous evidence base to support replication, WSP combines Community-Led Total Sanitation (CLTS), behavior change communication (BCC), and sanitation marketing to generate sanitation demand and strengthen the supply of sanitation products and services, ultimately resulting in improved health conditions of people in rural areas.

Creating Sustainable Services through Domestic Private Sector Participation. With the increasing difficulty of the public sector to meet the service delivery needs of the poor, the private sector can play a pivotal role in bridging water and sanitation service delivery gaps by partnering with the public sector to provide innovative and low-cost water and sanitation solutions to the poor. WSP supports governments to strengthen the ability of the domestic private sector to provide the poor with sustained and cost-effective water supply and sanitation services.

Supporting Poor-Inclusive Policy Reform. Almost two in three people lacking access to clean water survive on less than US$2 a day, with one in three living on less than US$1 a day. More than 660 million people without sanitation live on less than US$2 a day. WSP supports governments to implement poor-inclusive policies, strategies, and sector reform. WSP also works to strengthen the voice and capacity of citizens, including the poor, to demand greater accountability and responsiveness from public officials and service providers.

Introduction1

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Introduction

Targeting the Urban Poor and Improving Services in Small Towns. More than half of the world’s population lives in urban areas. This number is expected to grow to 66 percent by 2050. Urban growth rates are much faster in developing countries. On average, more than 5 million people migrate to cities each year, resulting in inadequate provision of water and sanitation services. WSP works with national and municipal governments to expand sustainable water and sanitation services for the poor residing in dense urban and peri-urban areas and small towns.

Adapting Water Supply and Sanitation Delivery to Climate Change Impacts. Poor countries are the most vulnerable to the impacts of climate change. Changes in weather patterns and resultant weather-related disasters pose many risks for agriculture, food, and water supplies. WSP supports

governments to manage risks associated with climate change and other natural disasters in the water and sanitation sector. WSP also aims to deepen knowledge on the links between water, sanitation, and climate change.

Delivering Water Supply and Sanitation Services in Fragile and Conflict-Affected States. About 1.2 billion people live in countries affected by fragility and conflict. Poverty is also largely concentrated in fragile states. More than half a billion people are living in poverty in the 33 fragile states defined by the World Bank Group. Providers of water and sanitation services in fragile countries are in great need of strengthened policies, capacity, and infrastructure to provide sustainable access. WSP works with a wide variety of partners in fragile states to encourage governments to prioritize water and sanitation and develop solutions that work in these environments.

Globally, 1.2 billion people live in areas without adequate water supply, one in nine lacks access to safe drinking water, and by some estimates every minute a child dies of water-related diseases. (United Nations)

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Sharing Global Knowledge

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WSP’s knowledge base builds evidence to inform sector policies and strategies and support the design, implementation, and monitoring and evaluation of water and sanitation programs. WSP generates knowledge through rigorous analytics and research, and is able to rapidly share this knowledge through its extensive network of partners and critical stakeholders spread across the world. As part of the Water GP, WSP continues to generate research and evidence to offer governments and partners the know-how and tools to deliver at-scale sustainable water and sanitation services for the poor. WSP’s knowledge base informs the design and implementation of World Bank lending operations, further enhancing the impact of WSP’s work in all areas.

In fiscal year 2016, WSP produced 108 publications including field notes, technical briefs, World Bank economic and sector work, and knowledge products exceeding the 2016 milestone of 100. Twenty percent of those publications were peer reviewed, slightly more than the previous year. This brings the total number of publications produced since 2011 to 687. Based on the ratings of the online client perception survey conducted in February 2016, on average 78 percent of respondents seemed satisfied with WSP’s knowledge products surpassing the milestone of 60 percent.

WSP’s knowledge products continued to bring to the forefront complex water and sanitation challenges plaguing the sector to support decision-making processes for governments, World Bank operational teams, and other sector stakeholders. A number of WSP knowledge products were also published in the specialized journals Waterlines, Journal of Water and Health, and the Journal of Regulatory of Economics. WSP’s empirical work ranged from estimating the investments needed to

achieve the SDGs to country-tailored technical assistance to support innovative solutions for improving access to the poor.

The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and HygieneWSP collaborated with the World Bank, the United Nations Children’s Fund (UNICEF), and the World Health Organization (WHO) to assess the global costs of meeting the water, sanitation, and hygiene (WASH)-related targets associated with extending two levels of WASH services to unserved households by 2030.

The new report demonstrates the cost implications of adopting different service levels for both water supply and sanitation. The research concluded that current levels of financing can cover the capital costs of achieving universal basic service for drinking water, sanitation, and hygiene by 2030, provided resources are targeted to the needs.

Extending basic WASH services to the unserved will cost US$28.4 billion per year, or 0.10 percent of the GDP of the 140 countries included in the report. However, the capital investments required to achieve the water supply, sanitation, and hygiene SDGs amount to about three times the current investment levels. The capital financing required to extend safely managed water supply and sanitation services to the unserved is approximately 0.39 percent of the GDP, or a little over three times the historical financing trend of extending access to the unserved. However, significantly greater capital spending is needed in Sub-Saharan Africa, where slow progress to date means capital expenditures of 2 percent of GDP would be needed to close the SDG gap on WASH, and in Southern Asia, which requires

Sharing Global Knowledge2

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Sharing Global Knowledge

0.86 percent of GDP. The total capital cost of meeting targets 6.1 and 6.2 is estimated to be US$114 billion per year (see Figure 1).

Lessons Learned from Transitioning Fragile States from Emergency to DevelopmentWith humanitarian response focusing on crises, there is often less attention in fragile states on capacity building. The challenge to (re-)establishing sustainable services in low-income countries affected by fragility, conflict, and violence (FCV) is defined as the “capacity conundrum.” The conundrum is, essentially, how to build the capacity of institutions to deliver sustainable water services while addressing the short-term emergency of providing services to those affected by conflict and crisis.

WSP’s new report, Delivering Water Supply and Sanitation in Fragile States: The Transition from Emergency to Development—Evidence from Country Case Studies in Africa, examines how to tackle the capacity conundrum by rebalancing the relative effort placed on delivering water supply directly versus the effort that is placed on

building the sector institutions that deliver and oversee water supply services in the medium to long term.

The research is derived from WSP’s work over the last year in eight countries in Africa. This work confirms that the current approach results in the vast majority of aid being delivered directly by international agencies and non-state actors—an approach that persists for too long after the peak of the crisis (six to 10 years).

Providing Water to Poor People in African Cities Effectively: Lessons from Utility ReformsAfrica’s urban population will triple by 2050. People in these rapidly growing cities need safe, convenient, and reliable water supplies. However, the proportion of Africa’s urban population with improved water supply has barely grown since 1990. Furthermore, the urban population with water piped to their premises has declined, from 43 percent in 1990 to 33 percent in 2015. Poor families are the least likely to have water piped to their

Number of publications, including field notes, technical briefs, World Bank economic and sector work, and knowledge products produced by WSP in fiscal year 2016.

Figure 1: CoSTS oF SAFElY mAnAgED WASH SERvICES ExCEED bASIC SERvICES bY THREE TImES

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Note: Ending open defecation, or open defecation-free, has a target year of 2025. **Safely managed sanitation costs are those for safe excreta management alone; they exclude latrine costs. WASH – Water, Sanitation and Hygiene; oD – Open Defecation; WatSan – Water and Sanitation


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premises, and will bear the brunt of inadequate water supplies.

A WSP report, Providing Water to Poor People in African Cities Effectively: Lessons from Utility Reforms, assesses how some cities have been able to provide water services to poor people relatively well. The report offers lessons learned from these relative successes and identifies the key factors that contributed to good service provision for the poor in some cities.

The research involved the collection and analysis of substantial comparative data on service delivery to the urban poor in 17 African cities. The report offers practical evidence-based research to understand how five of these water utilities have achieved both stand-out performance generally and have succeeded in serving growing numbers of poor people in their cities.

The report finds that turning utilities around is possible, but a catalytic event can create a space for reform, and savvy political and technical leaders need to seize these opportunities. The findings from the cases in the study on services to the poor highlight three distinct but interrelated avenues of inquiry: how reforms are started, how reform momentum is built,

Figure 2: DRIvIng AnD SUSTAInIng REFoRm

Sustaining the reformBuilding the momentum

build

Internal capability and culture

Alliances external to the utility

Formal rules and structures

Forge

Create

Starting the reform

Preserve

Embed

Strengthen

Catalytic event or space for

reform

Professional technical

leader

Secure political leader

and how successful outcomes are sustained. A catalytic event, such as a cholera outbreak or a change in the political landscape, can create a space for reform, but savvy political and technical leaders need to seize the opportunity to formulate a mutually beneficial partnership. Together they must help shape networks and alliances for change and start to embed the reform legacy. Success is possible only if the balance of political economy pay-offs remains in favor of reform, and—once achieved—in favor of sustained good service, even as the attractions of predation on the utility increase (see Figure 2).

This report has been of tremendous value to African utilities and has been highlighted at numerous engagements at international and regional forums such as the International Water Association and the African Water Association, and at the World Bank Water Week.

A second study, The Performance of Water and Wastewater Utilities in Africa, was developed with extensive support by the WSP-housed International Benchmarking Network for Water and Sanitation Utilities’ (IBNET) global database on wider utility performance. It provides extensive new and updated data from utilities across Africa.

The common features present in all cases reviewed in the report were analyzed to understand how cities start reform, build momentum, and sustain reform.

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Scaling Up Rural Sanitation and Hygiene

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Steady improvements have been made to advance sanitation globally, but much work remains to be done. In Southern Asia, 110 million people have gained access to improved sanitation services since 1990. However, the number of people practicing open defecation has increased in sub-Saharan Africa from 181 million in 1990 to 229 million in 2015.

WSP’s Scaling Up Rural Sanitation and Hygiene business area works with both governments and the local private sectors to build capacity and strengthen performance monitoring, policy development, and financing to develop and institutionalize large-scale, sustainable rural sanitation programs. With a focus on building a rigorous evidence base to support replication, WSP combines Community-Led Total Sanitation (CLTS), behavior change communication (BCC), and sanitation marketing to generate demand for sanitation and strengthen the supply of new products and services that lead to improved health for people in rural areas.

WSP provides critical knowledge and technical assistance to governments to make transformational changes to policies, institutions, and programs to achieve accelerated access to improved sanitation for the rural poor. The critical building blocks for the program include: (i) building demand for improved sanitation through BCC and a CLTS approach; (ii) strengthening the supply of sanitation products and services; and (iii) developing an enabling environment that meets the increased supply and demand and ensures at-scale delivery of sanitation services.

Activities in some countries, such as Niger, have ended, and new activities have started or are being planned in Bangladesh, Ghana, and Nepal. In the next four years, WSP’s work as part of the Water GP will incorporate the lessons of at-scale rural sanitation programs in World Bank operations and address knowledge gaps to ensure affordable, sustainable access for the poorest.

Key Program results

While locations of support are changing, in fiscal year 2016, WSP measured results in 26 program locations across 13 countries where WSP has traditionally had rural sanitation activities.1

Since the baseline was established, WSP has helped governments increase access to sanitation services for 49 million people: 25 million people have gained access to sanitation services, and 24 million people have stopped practicing open defecation.2 In addition, WSP’s efforts to assist governments in strengthening the enabling environment for at-scale service delivery has helped leverage approximately US$2.9 billion in investments for rural sanitation.

These achievements were made possible through incremental changes in enabling environment conditions to help governments implement large-scale sanitation programs. WSP measures improvements in eight enabling environment dimensions that are critical for scaling up and sustaining rural sanitation


1 The rural sanitation program is being implemented in the following 26 locations: Cambodia, Ethiopia, India (states of Bihar, Jharkhand, Meghalaya, and Rajasthan), Indonesia (provinces of Bali, Central Java, East Java, Nusa Tenggara Barat, and West Java), Kenya, Lao PDR, Niger, Pakistan (provinces of Azad Jammu Kashmir, Khyber Pakhtunkhwa and Federally Administered Tribal Areas, Punjab, and Sindh), Philippines, Senegal, Tanzania, Uganda, and Vietnam. In India, Indonesia, and Pakistan, WSP is working at both the national and subnational levels.2 The results framework for the program provides a method for determining the proportion of total access resulting from WSP’s direct contribution. Based on estimates from the country monitoring tool, on average, the program contributes about one-third of the results achieved, with government clients responsible for the remaining increases. The proportion of contribution varies from country to country depending on level and intensity of WSP engagement vis-à-vis other sector stakeholders present in the country.

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initiatives. These enabling environment dimensions are: (i) policy, strategy, and direction; (ii) institutional arrangement; (iii) program methodology; (iv) implementation capacity; (v) availability of products and tools; (vi) financing; (vii) cost-effective implementation; and (viii) monitoring and evaluation (see Figure 3). Progress against the enabling environment dimensions is measured in all 26 program locations in an effort to separately monitor progress at the provincial level for countries such as India, Indonesia, and Pakistan.

In fiscal year 2016, the largest impact was made on the financing enabling environment criteria, where 10 countries made progress (see Figure 4). Since the baseline was established, the most significant progress has been made around methodology; policy, strategy, and direction; and institutional arrangements. While no country reached every output indicator, many reached a high-level status, with 18 locations achieving targets in program methodology; 17 in policy, strategy, and direction; and 15 in institutional arrangement. Each of these areas made 50 percent progress across all countries combined.

Figure 3: ovERAll PRogRESS ACHIEvED ACRoSS THE PRogRAm loCATIonS In THE EnAblIng EnvIRonmEnT DImEnSIonS FRom bASElInE THRoUgH FISCAl YEAR 2016

WSP’s country-monitoring tool tracks progress against the eight enabling environments dimensions across the 26 program locations in 13 focus countries. Progress in each dimension depends on attainment of several sub-indicators. This graph indicates program locations that have achieved at least one sub-indicator for each dimension.


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Policy, Strategy, and DirectionWSP helps governments develop policies, strategies, and action plans that make rural sanitation a national and subnational priority and instills the political will and ownership to effectively implement large-scale sanitation programs.

Significant progress was made in Kenya to ensure universal access to sanitation. With a team of law experts, sanitation consultants, and policymakers, WSP helped the government manage the nationwide consultation process and finalize the policy and legislative documents launched in May 2016.

In Uganda, as of September 2016, 109 of 111 counties (98 percent) submitted sanitation data. WSP helped analyze and benchmark the performance of each district and prepare the sanitation component of the annual sector performance report.

In Central Java, Indonesia, WSP helped mainstream the sanitation policies of the national legislative framework at the provincial and district levels by offering local learning workshops to help fast track and carry out sanitation programs. WSP’s technical support

in five focus provinces helped mainstream community-based sanitation and accelerate the expansion of sanitation services. As of December 2015, the pilot provinces triggered 48 percent of the 26,383 villages to end open defecation. In addition, 5,052 villages were verified as open defecation free (ODF); of these, 3,400 (67 percent) were in the five focus provinces. During this time, 11 million people gained access to improved latrines; of these, 8 million people (73 percent) were in WSP focus areas.

Institutional Arrangements Scaling up rural sanitation requires effective institutions with sufficient resources to carry out their roles, and regular opportunities for coordination and partnership between the government, private sector, and civil society. WSP supports the institutions responsible for rural sanitation in their development of adequate operational structures with dedicated budgets and coordination mechanisms to effectively carry out their roles and responsibilities and establish links with other sectors.

In Bali Province, Indonesia, WSP helped strengthen the capacity of the secretariat that implements the national sanitation strategy.

Figure 4: PERCEnTAgE oF PRogRAm loCATIonS REPoRTIng PRogRESS In THE EnAblIng EnvIRonmEnT In FY16

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Consultants worked with provincial health offices to make sure that community-based sanitation programs matched local policies and financing. WSP also provided technical assistance to help create web-based monitoring and evaluation tools, onsite and online training programs, and BCC educational materials.

Program Methodology To be effective, a country’s program methodology should be clearly articulated and supported by all stakeholders. The program methodology includes the specific activities needed to achieve rural sanitation at scale. WSP helps national and subnational institutes adopt a clear program methodology to ensure at-scale service delivery of rural sanitation programs.

In lao PDR, WSP helped the National Center for Environmental Health and Water Supply (Nam Saat) develop a CLTS toolkit to help standardize and replicate this approach throughout the country. As a result, there has been a greater focus on behavior change in all the country’s sanitation programs. So far, more than 10 local and international nongovernmental organizations (NGOs) rolled out CLTS across 31 districts in 10 provinces.

WSP played an important role in shaping the sanitation strategy by documenting lessons learned through regional and national learning exchanges, workshops, and seminars for local and central government officials and other partners in the southern, rural region of the country. This also included support to integrate sanitation into livelihood and nutrition projects in poor villages with a high prevalence of malnutrition.

Implementation Capacity To implement large-scale sanitation programs, institutions must have the capacity to carry out their roles and responsibilities, including adequate human resources, systems, and procedures needed for program methodology, and the ability to continually monitor program effectiveness. WSP helps strengthen capacity of government institutions at all levels to effectively plan, implement, and monitor large-scale sanitation programs.

In vietnam, WSP provided technical assistance to help the government assess the skills and capabilities of the health agency to scale up rural sanitation. The result was an assessment and action plan as well as the development of a formal training curriculum utilized throughout the whole country. These training packages have been offered to health staff and other promoters in 21 provinces for Northern Mountain and Central Highland regions.

In Pakistan, WSP helped build capacity of the key stakeholders to scale up provincial rural sanitation programs in three provinces, comprising approximately 75 percent population of the country. These efforts ultimately leveraged additional funds for the government through the development of World Bank-funded sanitation, nutrition, and hygiene projects.

These programs offered affordable technology options and infrastructure rewards to communities becoming 100 percent ODF. This year, more than 300 officials were trained in CLTS, totaling more than 1,300 officials at 41 events over the past four years. WSP also


49Million

Number of people who have increased access to sanitation services due to WSP’s help to governments: 25 million people having gained access to sanitation services, and 24 million people having stopped practicing open defecation.


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played a critical role linking policy work to local-level pilots, creating and testing innovative programming, and building partnerships with like-minded organizations such as UNICEF.

Availability of Products and ToolsAvailability of low-cost sanitation products and use of effective behavior change tools play an important role in encouraging people to invest in improved sanitation. WSP worked in a number of countries to increase the availability of new products that respond to consumer preferences with appropriate marketing and quality-assurance controls, eliminate supply chain barriers, and develop evidence-based tools to encourage behavior change.

To offer the poor a wider range of appropriate and affordable toilet products and services, WSP worked with the government, NGOs, and microfinance institutions in the Philippines to prototype and field test products and tools to make sure they passed technical standards required by regulatory agencies. Training sessions were held for local masons and artisans who distribute the products to help them build financially viable businesses in the project pilot areas. This work is leading to the development of a one-stop shop model, where everything needed for the construction of a toilet can be purchased and households can find the option that suits them best. As a result of the training, new marketing business models have emerged, such as municipal enterprises, microfinance-led franchising models, and local cooperatives, all of which will strengthen the local sanitation supply chain.

In Ethiopia, WSP’s technical assistance supported the implementation of the One WASH National Program (OWNP), of which the World Bank is the largest donor. The OWNP brings together four ministries to improve the effectiveness of financing in the WASH Sector, increase access to water and sanitation services, and ultimately improve health.

Significant support from WSP in Ethiopia helped establish a formal government mechanism for the development of sanitation markets. The mechanism has been established through the creation of new partnerships at the national and subnational levels between government health institutions and agencies new to the sector, such as the business development agency and the vocational training agency. The initiative includes capacity building for sanitation entrepreneurs on technology development and business skills, as well as support for them to access financing and connect to market opportunities. WSP’s technical support has also resulted in the Ministry of Health developing new BCC guidelines for implementation in the OWNP and beyond.

Financing Without sufficient financing for programmatic costs such as training, salaries, transportation, and supplies, rural sanitation programs are likely to be ineffective. WSP helps to improve financing conditions in the focus countries by supporting governments to develop appropriate funding plans that provide adequate funds for demand creation and supply improvement, ensure availability of these funds for national and subnational governments, achieve effective budget utilization, and promote fund expansion and sustainability. WSP also facilitates government clients in extending the outreach of rural sanitation programs by encouraging additional funds from governments and the private sector.

In Cambodia, WSP has been supporting the government’s efforts to transfer the rural sanitation function to districts as part of broader decentralization reform. For the last three years, WSP has been helping district administrations prepare their sanitation plans to mobilize more funding from the lowest tiers of the government. This has led to their ability to conduct BCC events for rural households and to work with latrine suppliers at the village level. As of June 2016, WSP’s efforts have led to 1,515 villages hosting BCC

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events, resulting in 13,202 latrines sold to rural households by local latrine suppliers. This accounts for an increase in sanitation access of around 5 percentage points in the 10 pilot districts within the implementation period.

Cost-Effective ImplementationWith limited resources and competing demands in developing countries, rural sanitation programs must demonstrate cost-effective use of resources. WSP equips government institutions with adequate awareness of how to implement cost-effective measures and build their capacity to effectively collect and use cost data.

In the Philippines, WSP jointly developed a monitoring tool to track the progress of sanitation programs with the Department of Health and local government units. The tool has been being rolled out to at least 50 municipal health offices. With the continuous generation of rural sanitation data, WSP plans to do a more comprehensive analysis on cost effectiveness for both hardware and software interventions. WSP also plans to utilize the newly developed Economics of Sanitation Toolkit to update programming costs to inform budget allocations at both national and subnational levels. In Punjab Pakistan, WSP supported the government’s US$4M sanitation program with capacity building about more cost-effective modalities, which resulted in helping 3,663 villages in all 36 districts to stop practicing open defecation. To date, 1,170 villages have achieved ODF status. Consumer research helped assess preferences and cost-effective sanitation options to make the programs sustainable.

Monitoring and EvaluationLarge-scale sanitation programs require regular monitoring and periodic evaluation to effectively identify strengths and weaknesses in program methodology, implementation arrangements, and cost efficiencies. Policymakers must be willing and able to use monitoring processes to make rapid adjustments to their program. Overall monitoring responsibility must be at the highest level of the program, but it must be based on information collected at the local government or community level. WSP supports governments in developing and implementing robust monitoring systems to help government officials make course adjustments to programs based on real-time information from the ground.

Nearly five years ago, WSP began helping the Ministry of Health in Uganda develop a management information system for rural sanitation, including designing the data collection tools and establishing a database. This data was analyzed to evaluate district performance, identify key constraints, and take corrective action. The monitoring results continue to be used to inform new sanitation programs and develop implementation guidelines for the funds under the sanitation budget line. The monitoring system is now well established, and by the end of 2015, all 111 districts had submitted their sanitation data. WSP helped analyze the results to prepare the sanitation component of the annual sector performance report.

Lessons and Opportunities

WSP’s 40 years of experience in rural sanitation will guide future interventions as it integrates with the Water GP. The SDGs’ call for ending open defecation requires WSP to better understand how sanitation can be effectively integrated into other single and multisectoral programs. WSP needs to ensure that future activities address the lack of sanitation in education and health facilities, with a special

1,515 Number of villages hosting BCC events in Cambodia, as of June 2016 resulting in 13,202 latrines sold to rural households by local latrine suppliers.



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focus on the sanitation needs of women and girls. WSP also needs to expand the great work on fecal sludge management to rural areas.

If the rural sanitation agenda is led by traditional engineering or water departments, there are limitations to the program’s effectiveness. Ministries, with village-level staff familiar with BCC, such as the Ministry of Health, are often more successful as the lead agency on sanitation. That said, one ministry or agency alone will be less effective. Getting

multiple branches of government working together to address rural sanitation needs is more successful and can elevate the urgency and speed of improved sanitation coverage and increase political will. For example, the Ministry of Health is sometimes not effective at mobilizing the private sector, so the chamber of commerce or other agencies might be a better fit. In addition, working with multisector programs to address stunting issues seems to have promise.

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Creating Sustainable Services through Domestic Private

Sector Participation

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The domestic private sector provides a powerful avenue to increase access to and quality of water supply and sanitation services to the poor. An estimated 2.4 billion people lack access to improved sanitation, and 663 million lack access to safe drinking water, resulting in significant health and economic losses for countries across the globe.3

Market projections for sanitation show a value of over US$2.5 billion, with the poor representing a quarter of this market. An estimated 20 million people are projected to get their water from rural piped water schemes managed by the private sector by 2025, creating a market worth at least US$90 million a year.4

This presents a substantial opportunity for the private sector to engage in the market and provide water and sanitation services to the poor. However, perceived risk by financiers and lack of information on both the investor and investee side are a barrier to growth in private-sector finance. This requires helping the private sector to better understand existing opportunities, smoothing out information asymmetries, supporting local sanitation markets, and strengthening the technical and managerial capacity of local service providers.

WSP’s Domestic Private Sector Participation (DPSP) program works with country stakeholders in 14 countries to grow their capacity and leverage the private sector to improve quality and access to water supply and sanitation. It places a focus on building

markets better able to serve the poor.5 The WSP market-based theory of change was refined across the program lifespan through action learning and research. Critical success factors were outlined in the theory of change, and these served to delineate the preconditions needed for pro-poor water and sanitation markets to scale up.6

Country projects have closed this year, but some activities are being incorporated into broader Water GP technical assistance activities and approaches. Knowledge work related to this business area is being integrated into the Water GP’s new Global Solutions Groups (GSGs) for water and sanitation under the WSP umbrella. The water supply and sanitation GSG is comprised of thematic focal points, of which the following four, (1) Financing Universal Access, (2) Building Sustainable Urban Utilities, (3) Institutions, Policies and Incentives, and (4) Partnering with the Private Sector to Deliver Results, represent the next generation of activity building off DPSP and the development finance needs that have come to the forefront to meet the SDGs.

Key Program results

The DPSP program ended in mid-2016, and many country activities started the closeout period during the preceding year.7 From January through December 2015, the local private sector expanded water and sanitation services to 2.1 million people with WSP assistance under the DPSP program. This

Creating Sustainable Services through Domestic Private Sector Participation

3 WHO/UNICEF Joint Monitoring Program. 2015. “Progress on Sanitation and Drinking Water: 2015 Update and MDG Assessment,” Geneva, World Health Organization.4 Sy, Jemima, Robert Warner, and Jane Jamieson. 2014. Tapping the Markets: Opportunities for Domestic Investments in Water and Sanitation for the Poor. Washington, DC: World Bank.5 These countries are Bangladesh, Benin, Burkina Faso, Cambodia, India, Indonesia, Kenya, Mozambique, Nicaragua, Niger, Peru, Philippines, Senegal, and Uganda.6 The critical success factors include Market Opportunity, Business Environment, Viable Product and Value Chain, Firm-level Capacity, Access to Finance, Public-Sector Capacity, and Industry-Level Capacity.7 As a result, minor assumptions had to be made on certain data points for a few countries in order to be consistent with data in previous years.

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in turn propelled the cumulative result since program inception to 6.1 million beneficiaries. Over the lifespan of the program, WSP has leveraged a total of US$82.5 million in private-sector investments, and influenced over US$217 million in investments made by a combination of donors and development finance institutions.8

Through program activities, WSP learned that the private sector is unlikely to succeed without a supportive business environment, stable political situation, and favorable public attitudes toward the private provision of services. Once an enabling environment is established, the next course of action involves fostering confidence of market actors. At the broader level, the market necessitates stronger industry-level capacity and public-sector support.

Expanding Access to Water and Sanitation with the Private SectorMore than 200 million people are without access to improved water, and 1.1 billion lack access to improved sanitation in the 14 countries where DPSP programs are implemented. Current funding options are not sufficient to close this gap, and will require work with the domestic private sector to create innovative methods to reach the poor. From January to December 2015, WSP’s support to the domestic private sector helped 850,000 people gain access to improved sanitation. The total number of beneficiaries since program start is 2.1 million people.9

HigHLigHt 1: SUPPoRTIng PUblIC-PRIvATE PARTnERSHIPS In bEnIn

In Benin, WSP and the International Finance Corporation helped develop four subsidized public-private partnerships (PPPs) to extend water supply into rural areas to increase access for the poor. The result was improved access for 48,500 people. Building on the lessons learned, the Government of Benin approached the World Bank to scale up implementation of the innovative approaches used to improve the delivery and affordability of services in rural and small towns.

The Water GP initiated technical assistance to streamline the government’s strategies and institutional reforms to scale up the service delivery models for the SDGs in rural water. The aim is to catalyze the impact on the ground of an anticipated International Development Association (IDA) loan with the mission of improving water supply targeted at 200 rural and small towns through the subsidized concession model, originally spearheaded by DPSP.

8 The DPSP results are tracked directly from entrepreneurs and service providers through their financial statements and technical reports for the outgoing calendar period January–December. Therefore, there is a time lag in the ability of the program to report quantitative data. The annual report presently outlines progress for the period January–December 2015.9 Access to improved sanitation services is measured by counting the annual number of new households acquiring sanitation or handwashing facilities multiplied by the average household size in the area covered by the respective sanitation providers. 10 Access to improved water services is measured by calculating the number of households served through additional piped water connections and standpipes in each of the tracked piped water systems and multiplying this figure by the average household size in the area covered by the piped water scheme.

Firms supported by WSP’s work with the private sector enabled 1.25 million people to gain access to improved water supply in 2015, exceeding the number of beneficiaries in the previous years by 14 percent. This brings the total number of people obtaining improved access to water services, as a result of DPSP, to 4 million since 2011.10


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WSP’s success in expanding access to the population contributed to government support and interest in continuing project activities. This was the case in Benin, where the model has been expanded to other locales in the country (Highlight 1).

A target group for WSP activities is the poor, and a 30 percent minimum target was set to ensure inclusivity in the program. In

2015, 72 percent of people benefiting from improved water and sanitation services, as a result of DPSP, were poor. Figure 5 shows the proportion of poor beneficiaries reached throughout the program lifespan.

Increasing Private-Sector InvestmentInvestment level can help gauge private-sector interest in the market. WSP looked at investments of both public and private

Figure 5: ToTAl nUmbER oF PooR AnD non-PooR bEnEFICIARIES REACHED

Figure 6: PRIvATE-SECToR InvESTmEnTS In WSS (US$)

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providers. A rise in investment is interpreted as increased investor willingness to participate in the market. In 2015, WSP mobilized US$26 million in private investments from small and medium enterprises. Given that a number of program activities were in the closeout process during 2015, this is a notable amount. Investments in Peru represented over one-third of the total achieved.

Since 2011 the cumulative amount influenced in private-sector investments for DPSP is US$82.5 million. Targets were established annually for the period 2012–2014. Figure 6 illustrates how the investments achieved far surpassed the target amount, representing increased interest and willingness of the private sector to engage.

Growing Markets Served by the Domestic Private SectorMarket viability and growth is observed through increased revenue generation and the increase in publicly managed water schemes brought under private operation. From January to December 2015, the volume of revenues generated by DPSP-supported private-sector firms across the WSP focus countries was US$630 million. This represents a 6 percent increase from the previous year. Peru contributed substantially to the high revenues, reporting US$596 million for water and sanitation schemes. All other firms generated an aggregate of US$34 million.

In 2015, 44 new piped water schemes were brought under private management through WSP’s technical assistance. Since program inception, a total of 495 schemes have been managed by the private sector.

Meanwhile, the number of business support service providers and financial intermediaries working on water and sanitation, which experienced a 65 percent increase during the prior year, showed slight growth in 2015. This is likely a result of the DPSP projects’ closing-out activities. Service providers offered assistance

to 1,714 domestic businesses working in water supply and sanitation, a significant increase from the prior year.

Financial and Operational CapacityStrengthening the technical and managerial skills of firms offering water and sanitation services is a critical component for overall sector improvement, and it has been a key area for WSP support. To assess financial and operational capacity, WSP looked at a range of measurement indicators, including profit margin, operating ratio, nonrevenue water, collection efficiency, staff per connection, coverage, hours of water supplied, and metering efficiency.

For piped water schemes that provided revenue and expenditure data, 84 percent indicated an operating ratio of less than 1 (signifying that revenues were sufficient to cover expenses) in 2015. In absolute terms, the total number of water providers breaking even and supported by WSP has quadrupled since 2011. Of those water schemes reporting, 226 generated gross profit margins greater than 3 percent in 2015. For the sanitation service providers, it is assumed that 99 percent are able to break even and generate profit margins greater than 3 percent.

Average nonrevenue water rates across all tracked operators in 2015 showed a drop throughout the life of the program. Final projections for average nonrevenue for all schemes in 2015 was approximately 21 percent compared to 24 percent a year earlier. The collection efficiency of the total number of water schemes that reported for 2015 was 84 percent, representing a modest increase from the preceding year.

The figures for staff per connection for piped water schemes experienced little change from the prior year; albeit, there was an increase in the total number of participating WSP



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schemes. In 2015, 70 percent of participating providers in 1011 of the 14 focus countries had eight or fewer staff per 1,000 connections compared to 54 percent at the beginning of the program reporting in 2011. Over the lifespan of WSP’s work, the proportion of schemes with more than 10 staff per 1,000 connections decreased from 30 percent to 23 percent. The changes in figures for staff per connection from program onset through 2015 are a testament to increased operational efficiency achieved through DPSP support. The majority of WSP-supported schemes have far less staff than the global average of 27 staff per 1,000 connections reported in IBNET.

From January to December 2015, 216 schemes reported supplying water for at least 16 hours per day, a 13 percent increase from the year before. Average coverage levels and metering efficiency are assumed to be unchanged from the prior year.

In the water sector in Cambodia, WSP provided business development and technical support to a third of private water operators, which led to performance improvements (nonrevenue water, pressure, service coverage, connection growth) benefiting 350,000 consumers. After development of 20 detailed investment studies, 16 loans were approved by a local commercial bank, for a total value of $US4.4 million. Two more loans are in the pipeline, bringing the total to US$5 million. By 2020, around 150,000 additional people are expected to be connected, and approximately 300,000 people will benefit from the improvements in water quantity, reliability, and quality offered by these schemes.

Strengthening Public Institutions Recognizing the critical nature of a robust public sector for support to private-sector activity and effectiveness in serving the poor, WSP provided capacity-building support and employed a five-point scale to measure capacity, where those with a rating of 5 represent the highest level of progress in institutional strengthening. In 2015, WSP worked with 27 national and 132 local public institutions that maintained a scale of 2 to 4, surpassing the 2014 goal of 10 national and 100 local public institutions maintaining this score range (see Figure 7). A scale range of 2 to 4 indicates that these institutions maintained appropriate policies and regulations with skilled staff and adequate implementation and supervision arrangements. In Senegal, the Ministry grew its capacity to develop and administer PPPs (Highlight 2).

11 Bangladesh, Burkina Faso, Cambodia, Peru, Indonesia, Kenya, Mozambique, Niger, Philippines, and Senegal.

HigHLigHt 2: RAISIng THE SHARE oF PRIvATE-SECToR InvolvEmEnT

In Senegal, WSP helped strengthened capacity of the government to effectively manage PPPs to support water sector reforms. In 2014, a rural public asset-holding company (OFOR) was set up to manage rural water service delivery countrywide on behalf of the state, with a mandate to enable PPP transactions in rural water.

The first PPP transaction was completed at the end of 2014 for operation through a 10-year lease contract of two large multivillage rural water supply schemes reaching 350,000 people.

The second transaction (lease contract) was completed in March 2016 for the operation of 285 rural water supply schemes reaching about 1,400,000 people living in Thies and Diourbel regions (Central West). Three more transactions are planned to raise the share of private-sector involvement to 75 percent by the end of 2017.

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Influencing Donors and GovernmentsWSP estimated its influence by measuring new funding for the water and sanitation sector that drew on market-based approaches and findings from programming. In 2015, WSP support to the private sector contributed to the mobilization of US$46 million in funding for the sector. Since 2011, the total amount of donor and government funding DPSP has influenced for water and sanitation is US$217 million, far exceeding the overall program target.


While DPSP officially closed this year, the action-based learning approach adopted in the program provided evidence for the market-based approach put forth in the theory of change. Project activities across the 14 DPSP countries demonstrated significant achievement in leveraging the domestic private sector for water supply and sanitation. WSP’s success has resulted in an evolution for some of the projects into broader World Bank initiatives, as was the case for Bangladesh, Benin, and Cambodia. It was an intentional part of WSP strategy to influence World Bank investments, and naturally facilitate adoption and scaling of successful projects into future World Bank efforts. The new structure of the World Bank—with Global Practices and GSGs—makes it easier to incorporate the learning from DPSP into new activities.

Looking forward, the World Bank Water Practice has the potential to scale access through greater integration of private-sector-

inclusive approaches into operations, and this agenda complements both the Financing for Development agenda and the High-Level Panel on Water.

It is now more essential than ever to significantly expand the options offered by the private sector as the SDGs highlight the pressing issue of access to finance, particularly infrastructure investment, which is critical for the water and sanitation sector going forward.

The GSG focus area Financing Universal Access for Water Supply and Sanitation was initiated in 2016 to build on the important lessons learned from the DPSP program, earlier World Bank efforts to scale up private-sector investment, the Financing for Development agenda, and with consideration toward the recent launch of the SDGs. The objective of the program is to assist select countries by helping them identify opportunities for commercial financing for infrastructure development in the water supply and sanitation sector. By doing so, it will contribute to SDG 6 for universal access to water and sanitation, which will require a massive increase in financing that cannot be met solely by donors and governments.

The financing gap puts pressure on concessional financing providers to explore ways to make their funding go further through leveraging commercial finance. In developing countries, increasing the level of commercial financing for the sector would allow service providers to borrow and invest in service expansion and quality improvement, without having to wait

Figure 7: STREngTHEnIng InSTITUTIonS: CAPACITY lEvEl oF PUblIC InSTITUTIonS (2015)

WSP worked with 27 national and 132 local public institutions that maintained a scale of 2 to 4.

Institution Type Scale 1 Scale 2 Scale 3 Scale 4 Scale 5 Total number

Local 71 93 31 8 3 197

National 9 18 6 3 37



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for scarce public resources or concessional funding. For this to be achieved, there is also a need to increase efficiency by improving both financial and operational efficiency.

Efficiency gains will contribute to the generation of financial surpluses, allowing water service providers to access new sources of investment that can help leverage additional funds into the sector and reduce borrowing costs compared to a fully commercial arrangement, thus accommodating affordability and/or political constraints.12 The use of blended finance can initiate steps toward the long-term goal of increased commercial financing, which will begin to create new understandings, relationships, and potential new opportunities between the water and the financial sectors.

The Financing Universal Access program aims to build on the increasing profile of the financing gap issue and promote the use of blended finance as one approach to leverage domestic commercial finance. It will do this through dialoging with key counterparts and stakeholders; developing knowledge and capacity products to help address the gap; and assisting in developing markets for alternative-financing options, testing new financing approaches, and incorporating alternative designs and lessons learned into financing products. The program offers a continued evolution in the Water GP’s approach to financing objectives.

12 Blended finance refers to the complementary use—or “blending”—of both concessional and commercial finance to make below-market-rate investment funding available to targeted projects.

HigHLigHt 3: SCAlIng UP SAnITATIon: FUnDIng mICRoFInAnCE InSTITUTIonS WITH oUTPUT-bASED AID

In 2009, WSP piloted a sanitation marketing initiative in Bangladesh to leverage private-sector resources and help households adopt improved sanitation. It was scaled up in 2011. This resulted in World Bank funding for output-based aid (OBA) in 2016 to target poor households. This funding will channel OBA subsidies to two leading microfinance institutions (MFIs), one of which is a public wholesale MFI.

The initiative will blend concessional and commercial financing. The two MFIs provide wholesale loan financing to 20 retail MFIs (partner organizations) to finance household sanitation loans as well as sanitation loans directly to households. The World Bank will also provide technical assistance for promoting sanitation marketing.

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Supporting Poor-Inclusive Water Supply and Sanitation

Sector Reform

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Despite sustained economic growth in the last decade, progress in water supply and sanitation service coverage shows persistent and structural inequities. A growing body of evidence suggests a widening inequality between the rich and the poor that accentuates the gap in accessing basic services in the developing world. These inequities in service delivery to the poor are often the result of political economy factors, poor governance, and weak institutions that lead to poor design and implementation of policies and programs.

To address these issues, WSP supports sector reform in 16 countries by providing evidence-based knowledge and technical assistance to help strengthen national and subnational systems to help the poor obtain affordable, safe, and sustainable access to water and sanitation services and provides a strong entry point for reform.13 The program supports poor-inclusive sector reform and develops pro-poor policies that align with the World Bank’s primary goal of eliminating extreme poverty. WSP also strives to strengthen the voice and capacity of citizens, especially the poorest, to demand greater accountability and responsiveness from public officials and service providers.

Key Program results

WSP aims to provide evidence-based knowledge to improve decision-making and to demand greater accountability and responsiveness from public officials and service providers.

A portfolio review this year covered 35 new projects that started after June 2015 in order to measure additional results for fiscal year

Supporting Poor-Inclusive Water Supply and Sanitation Sector Reform

2016. It shows that 91 percent of projects included a poverty assessment to inform project design and that 91 percent of projects include pro-poor indicators that measure access for the poor. Eighty-five percent of the projects included capacity building for governments and partners to reach the poor. The findings provide important insights for task team leaders to improve the focus on the poor.

Two data collection initiatives continued this year that inform country strategies and mainstream poverty and gender analysis into the sector, improve targeting of programs, and support current and future World Bank operations. This includes the country-level WASH Povery Diagnostic, IBNET, and the integration of gender in the design of WASH policies and World Bank lending operations.

The WASH Poverty Diagnostic, a WSP flagship initiative, aims to inform country policy and program design by generating an evidence base on the relationship between WASH service delivery, monetary and nonmonetary poverty, and the nature of inequalities in WASH services. This includes leveraging knowledge from multidisciplinary teams in multiple GPs within the World Bank. Data is collected from many sources, including a benchmarking tool on utility performance.

Performance Benchmarking to Improve Urban Services for the PoorThe WSP-funded IBNET is a standard benchmarking tool that has been used by the World Bank and many utilities for more than 15 years. This master database contains data and statistical information on more than 4,500 urban water and sanitation providers

13 The pro-poor sector reform work is being implemented in Benin, Bolivia, Burkina Faso, Cambodia, Democratic Republic of the Congo, Honduras, India, Indonesia, Kenya, Lao PDR, Mozambique, Nicaragua, Niger, Pakistan, Peru, and Vietnam.

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and is continually updated. This year, data was added from more than 1,000 companies from 35 countries. Additionally, a separate database on tariffs became fully functional in January 2016; it contains information on more than 1,600 utilities from 186 countries and territories. Since 2011, WSP has supported 315 urban water and sanitation providers to strengthen performance monitoring and accountability arrangements. Three ongoing Water GP global studies are using IBNET data to bring new knowledge on utility turnaround, global aggregation of utilities, and urban water and the economic frontier.

The success of IBNET is reflected in the usage metrics, which increased 30 percent in the last fiscal year, from 5,000 to approximately 6,500 new users per month. The database has also started to include data on gender, with indicators on the number of women employed in utilities, number of women in engineering positions, and total salaries paid to female staff annually. This information will be crucial to understanding the role of women in leadership positions and the evolution over time.

Performance benchmarking in 32 municipal local authorities in Zimbabwe is being greatly encouraged by the government to develop robust performance data to improve water supply and sanitation sector revenues. IBNET data also informed the two regional studies mentioned later in the report on utility performance and improving urban services to the poor.

This year, IBNET released a report on the performance assessment during 2011–2013 of utilities in nigeria, with a focus on water provision services through state water authorities (SWAs), or water boards. The report highlights how institutional weaknesses affect customer costs, subsidies to the sector, and the financing required to scale up investment, which is assessed at US$6 billion in the next 10 years for the country to achieve universal

water supply coverage and sustainable 24/7 water service. By the end of calendar year 2016, five years of sector performance will be available in the IBNET database.

In addition, municipal water projects in mozambique and Angola added IBNET data to inform their Project Appraisal Documents (PADs), which set forth the World Bank’s appraisal and assessment of the feasibility of, and justification for, the projects.

The IBNET team provides methodological support to international organizations. It is actively working with WHO/UNICEF SDG working groups to set a global standard for performance assessment of wastewater treatment plants. A joint toolkit was developed and data collection was initiated in several countries around the world. The IBNET team is also participating in review and development of performance indicators at the International Standards Organization (ISO). The benchmarking data is also being used by GIZ in Kenya, the Asian Development Bank in Pakistan and South Pacific, and ADERASA in Latin America.

Data from IBNET is also being used by the flagship WASH Poverty Diagnostics, a multipractice initiative to understand the challenges and opportunities in WASH service delivery. The data is used to inform the state of governance in a particular country through the performance assessment of its utilities benchmarked against other utilities in the same country and in the region.

315Number of urban water and sanitation providers supported by WSP to strengthen performance monitoring and accountability arrangements since 2011.


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Supporting Poor-Inclusive Water and Sanitation ReformWater Supply, Sanitation, and Hygiene (WASH) Poverty DiagnosticThe WASH Poverty Diagnostic is a global initiative that is being implemented in 18 countries across six regions. The research will inform country policy and program design to improve service delivery to the poor by generating an evidence base on the relationship between WASH service delivery, monetary and nonmonetary poverty, and the nature of inequalities in WASH services. The research aims at defining the following: the poor and vulnerable population; the level of access and quality of WASH services as compared to better off segments of society; the linkages with inadequate WASH services and human development indicators such as health; and the binding constraints to improve the quality of services for the poor and vulnerable who lack them, and defining the role that institutions play in service delivery.

Country teams aim to address four core questions:

• Whoandwherearethepoorandvulnerablepopulations (using government national definitions)?

• WhatistheirlevelofaccessandqualityofWASH services as compared to better off segments of society?

• WhatarethelinkagesbetweeninadequateWASH services and human development indicators such as health?

• Whatarethebindingconstraintstoimprovethe quality of services for those who lack them, and what is the role that institutions play in service delivery?

The availability of existing data and information influences how far teams can go in addressing these questions; however, teams are using innovative techniques and in some cases collecting primary data to provide new insights.

Pro-poor units may improve data on poor customers, and thereby enable utilities to plan for and respond more effectively to service needs and problems. (Photo Credit: Kathy Eales).

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There are a few unique features of this initiative that make this work programmatically relevant for government and development partners: (i) exploits data to go beyond national statistics and understand subnational variation and inequality; (ii) maps the spatial distribution of WASH services across a country with poverty and health; (iii) applies innovative techniques using country-level data to link WASH with health and education outcomes; and (iv) is developing a framework for institutional analysis to understand binding constraints and the role of institutions. The nature of this work necessitates multidisciplinary teams, including staff from the World Bank’s Water, Poverty, Health, and Governance GPs, which have been formed at both the global and country levels.

Some preliminary findings include:

In bangladesh, the analysis finds that most districts perform well in serving the richest 60 percent of the population, meaning that people who belong to the richest three wealth quintiles have relatively high access to water sources that go beyond “improved,” which include elements of safely managed water such as being free of E. coli and being on premises. However, only four of the 64 districts can be classified as high performing when considering these attributes of access among the poorest 40 percent. The research team is working on understanding the determinants of this inequality.

In Indonesia, the study team took advantage of a unique dataset that includes information on WASH, child height for age, and cognitive development. This dataset follows a cohort of children over time, providing a more robust understanding of a causal relationship between WASH and child height for age. Preliminary analysis shows significant effects of children’s height for age and the relationship with the level of open defecation in a community. The team is exploring whether these effects translate into a child’s cognitive development later in life.

In nigeria, preliminary research is starting to shed light on the functionality of different water schemes, highlighting that up to 30 percent of water points fail within the first year of construction. Analysis on the survival rate of water points indicates that location within the country, proper maintenance, type of technology, and who is promoting the technology are determinants of functionality.

Qualitative research in Tajikistan shows that quantitative data collected through existing household surveys masks two facts around access to a piped source. First, there are problems with the continuity and quality of the household’s main water supply, and second, as a consequence, many households rely on additional water sources, which are not captured in the available quantitative survey data. The majority of focus group participants who were connected to a centralized piped system stated that they also rely significantly on other sources for drinking and domestic water because their piped water source is unreliable. In rural areas, the qualitative research found that households typically have three drinking water sources to cope with lack of availability throughout the year.

In mozambique, research finds that WASH poverty and inequalities overlap with other health and development vulnerabilities. These patterns persist for child health, maternal health, and education. These overlapping inequalities can exacerbate the effects of inadequate WASH, for example by concentrating the combined impact among children who are more likely to be vulnerable to the effects of inadequate WASH due to poor nutrition and health access. In addition, poor WASH access among population groups facing barriers to education participation may further exacerbate educational inequality by gender and economic level. Lastly, mothers who are already vulnerable to poor maternal health (e.g., nutrition and access) also bear the burden of lower WASH services and the time burden that entails for collecting water.



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Gender Dimensions in WASH Policies and Strategies WSP completed a 12-country review of gender dimensions of WASH policies. The findings show that women have different needs relating to water and sanitation and that very few policies highlight the emerging themes of school WASH and menstrual hygiene management.

While efforts to mainstream gender in WASH interventions exist, gender-mainstreaming efforts face the risk of being piecemeal and difficult to replicate without a clear and long-term policy focus. The report will serve as a reference document for clients, partners, and World Bank teams in reforming sector policies; it should also prompt ideas for addressing gender gaps in sector design, implementation, monitoring, and evaluation.


Monitoring systems such as the IBNET and WASH Poverty Diagnostics are essential to ensure that the poor have access to safe

water and improved sanitation. Aside from the overarching benchmarking work, however, the dialogue around utility studies has added process-related perspectives on performance enhancement and monitoring. In addition, several country-specific engagements have demonstrated the value of comparative benchmarking, and have helped countries develop an interest in using data to assist reform and service improvement interventions. Although IBNET provides critical benchmarking data for service delivery, the WASH Poverty Diagnostics provide another layer of data that will inform other constraints that are outside utility performance.

Using these tools, the Water GP and Governance GP are co-creating a framework to analyze institutions to better understand service delivery in the broader governance environment. Through the testing and application of this framework over the next year, the initiative will inform how the Water GP analyzes institutions and identifies solutions that are both technically and politically feasible.

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Targeting the Urban Poor and Improving Services in

Small Towns

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The scale and density of urban environments heightens the importance of ensuring that their residents have safe, convenient, and reliable sanitation and water services. With over 50 percent of the world’s population already living in urban areas, and this number projected to increase to 66 percent by 2050, this urgency continues to grow.

Service delivery lags behind urban population growth, especially in Asian and African cities and towns where 90 percent of the projected growth is anticipated. Moreover, poor people are the least likely to have services of the required quality. Improved urban sanitation coverage in rapidly urbanizing regions has increased only slightly over the last 20 years—by 35 percent to 684 million people. Access to “improved water” has increased marginally since the Millennial Development Goals (MDGs) were adopted in 2000—for instance, from 83 to 85 percent in Africa, with access to piped water in urban Africa even declining from 42 to 38 percent since 1990.

Key Program results

The bridging phase of integrating WSP into the World Bank Water GP offers opportunities to optimize the combination of investment and targeted knowledge management to achieve greater effect. The challenge is to ensure that the most vulnerable will no longer bear the brunt of inadequate water supplies, across cities and towns of different sizes.

The SDGs have taken the discourse toward a more qualitative measuring of progress, especially the safety and sustainability of water and sanitation services. This gives an immediacy to the emphasis that WSP has placed on

Targeting the Urban Poor and Improving Services in Small Towns

policy clarity and coherence, and institutional accountability, performance, financial viability, and capacity. This necessitates planning for and delivering water and sanitation services as part of broader urban management, while also considering water scarcity, urbanization, and economic development.

Continuing a gradual trend in recent years, the focus on citywide urban policy, planning, management, and service improvements has been sustained. In the new structure of the Water GP, with its substantial expertise in water resource management, a greater emphasis on Integrated Urban Water Management (IUWM) is likely to continue, rather than standalone water and sanitation interventions.

Influencing Policy and Strategy for Improved Service Delivery WSP has supported 20 national policies in 14 countries and strategies over the last six years to more effectively address water and sanitation service delivery needs for poor consumers in cities and small towns.14

In India, following the release of the WSP-supported 2008 National Urban Sanitation Strategy, the government now requires any urban sanitation improvement proposals from states and cities to include non-network systems and proposals. The target is 500 cities with populations of 100,000 and above, which clearly has considerable prospects of vast impact. India’s US$746 million Atal Mission for Rejuvenation and Urban Transformation program specifically prioritizes septage management. The 14th Finance Commission’s guiding document for fiscal transfers from national to state governments has recommended capital expenditure for septage

14 These countries are Bangladesh, Bolivia, Cambodia, Democratic Republic of the Congo, Honduras, India, Indonesia, Kenya, Laos PDR, Mozambique, Pakistan, the Philippines, Tanzania, and Zambia.

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15 World Bank projects are the Kenya Water Security and Climate Resilience Program, Coastal Region Water Security and Climate Resilience Program, and Water and Sanitation Services Development Project (WASSIP-2).

management in all cities and towns in the country, and has continued to require reporting on Service Level Benchmarks as a condition for the release of municipal performance grants.

WSP worked with the Government of bangladesh last year to revise the Ministry of Local Government Sector Development Plan (SDP) for the water and sanitation sector up to 2025. This year, technical assistance under the World Bank-supported Dhaka and Chittagong Water Supply and Sanitation Improvement projects has concretized the impacts from last year’s efforts, with the utilities adopting an integrated approach that includes a mix of network and nonnetwork sanitation solutions.

In Pakistan, WSP supported the Government of Punjab in preparation of a policy paper on performance-based grants to incentivize and track the performance of five water and sanitation agencies (WASAs) serving more than 20 million people in the province. The findings are anticipated to inform the fiscal year 2016–2017 budget for water sanitation in the Punjab province.

The Philippines has translated policy progress into concrete outcomes. With WSP support, the government developed a policy framework on regulation by the National Water Resources Board, conceptualized to encourage numerous disaggregated water utilities to be regulated. A critical input to the policy framework is the Listahang Tubig or Water Registry, the first ever national survey of water service providers that reports key performance indicators useful for policy formulation and benchmarking.

In vietnam, WSP supported the Quang Nam province in developing a comprehensive and integrated provincial master plan for water and sanitation service toward 2030. The master plan has been the basis for piloting innovations for expanding service delivery beyond administrative boundaries and climate

change. The new model has been endorsed by the Ministry of Construction (MOC), and has potential to be scaled up through new policies developed by MOC.

In Papua new guinea, work has continued to ensconce the first-ever WASH Policy, which was adopted in early 2015 with extensive support from WSP. The work has resulted in the preparation of multiple World Bank urban and peri-urban water investments, worth US$55 million, and with a distinct impact on services in poor urban settlements. WSP has continued to support institutional capacity development, especially to advance services to the poor, and with marked attention to excluded groups, such as women who are vulnerable when attempting to use WASH facilitates located remotely from their homes.

WSP’s advisory services in Kenya over the last five years have helped align the legal and institutional frameworks for water and sanitation to the newly decentralized constitution promulgated in 2010.

WSP has been supporting the national government to formulate policies and develop a legal framework and promote dialogue between the different tiers of government. Using its role in three major World Bank investment projects, WSP has also worked from a tangible service delivery engagement level to assist the different levels of government address institutional reforms.15 A major issue has been

20Number of national policies in 14 countries and strategies that WSP has supported over the last six years to more effectively address water and sanitation service delivery needs for poor consumers in cities and small towns.


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the interjurisdictional bulk water management issues in the coastal region, where Mombasa, Kenya’s second largest city, relies entirely on water resources from neighboring counties. WSP has worked closely with the World Bank operations team to find functional and politically legitimate arrangements to manage cross-county water flows in the region as well as to improve overall quality of water and sanitation services in Mombasa.

Strengthening Capacity of Service ProvidersWSP supported 65 operators in adopting cost-effective methodologies to improve service delivery to the poor living in small towns and informal settlements. The capacity-building measures extend beyond enabling operators to adopt cost-effective expansion and more efficient delivery of services. WSP also supports operators in demanding effective and informed responses to governance issues in the sector.

In Peru, a pilot focused on customer-oriented management approaches helped five utilities incorporate client perspectives in management processes, reducing the gap of expectation and perception of services between the utility and clients and giving the poor voice.

In mozambique, WSP developed the overall framework for delegated management services with small service providers to extend services to underserved areas. This model has been institutionalized in 38 towns, reaching between 10,000 and 100,000 people. In the city of Maputo, WSP supported seven micro-enterprises that delivered solid waste management services to also provide improved (nonmanual) fecal sludge management services in unplanned inner city areas. This is now being replicated, with strong municipal backing, by new partners in other parts of the city. WSP also helped leverage US$0.5 million from the ProMaputo Urban Project to upgrade the city’s sanitation department. A major urban sanitation lending operation has now been included in the provisional framework for investments in

the next round of International Development Association (IDA) funding, starting in 2018.

In Sri lanka, WSP helped create a hybrid PPP contract combining onsite infrastructure improvements and regular desludging. The pilot project will benefit around 3,785 poor households and demonstrate the service sustainability benefits of integrating onsite improvements, regular desludging, and safe/regulated disposal.

Ongoing technical assistance in Pakistan to establish an autonomous urban water and sanitation utility in Peshawar has resulted in the replication of the approach to Abbottabad and Mardan, two other cities in the Khyber Pakhtunkhwa province (KP), each with around 2 million people.

WSP supported the World Bank contribution to the design of institutional and governance structures, including introducing performance

HigHLigHt 4: CUSTomER FEEDbACK ImPRovES CUSTomER SERvICE

Kenya’s MajiVoice initiative has been one of WSP’s most rewarding engagements to help improve accountability. Cooperation with the regulator has created clearer performance indicators.

This has led to the MajiVoice customer feedback system which has been piloted in Nairobi and Nakuru in 2013–2015 to provide an integrated solution that increases accountability by facilitating submission and tracking of complaints by customers.

The implementation of mobile phone-based customer feedback software for the country’s largest water utility helped increase recorded complaints rate by tenfold, resolution rates climbed from 46 percent to 94 percent, and time for resolution also halved.

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contracts, as well as assisting with the analysis of infrastructure needs and financial status. Jointly with the World Bank’s Social and Urban Practice (GPSURR), a flagship report on “Karachi Transformation” was delivered, with a specific component on governance reforms and infrastructure needs related to water and sanitation services. The estimated cost to improve municipal service delivery is US$2.5 billion, and the World Bank is at an advanced stage of discussion with the government on a program to provide up to US$700 million for a new bulk water, sewerage treatment, and water augmentation infrastructure, as well as reforms to reduce water loss and achieve institutional reform.

In vietnam, WSP supported Can Tho city in strengthening its capacity to manage urban sanitation. This entailed reviewing its capacity

and institutional improvement needs, setting up an agency and new mechanism for coordinating and prioritizing investments in urban sanitation, and developing a strategy and plans for strengthening the capacity of stakeholders.

The Philippines has rolled out sewerage projects in 17 highly urbanized cities and fecal sludge management nationwide from 2010 to 2020, supported through an urban sanitation strategy developed with WSP technical assistance. The policy was amended to increase the subsidy for sewerage and septage management projects from 40 to 50 percent. This is anticipated to form the basis for a substantial pipeline of projects supported by the US Agency for International Development (USAID), Asian Development Bank (ADB), and Japan International Cooperation Agency (JICA).

Urban Africa: Rapidly growing and densifying. (Photo Credit: Kathy Eales).



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To provide convenient access for poor customers, some utilities focus on water piped to the premises, while others at least endeavor locating public taps near where people live, and ensuring that the unit price of water is affordable. (Photo Credit: ONEA, Ouagadougou, Burkina Faso).

Enhancing Performance Monitoring and Accountability ArrangementsWSP has supported 315 urban water and sanitation providers to strengthen performance monitoring and accountability arrangements to inform service planning and improvements.

In vietnam, WSP supported World Bank operations to support the Ministry of Construction’s efforts to update and expand the sector performance database in compliance with IBNET. This is the first time the performance indicators of 13 drainage and wastewater service utilities for years 2013 and 2014 have been established and made publicly available on the Internet.

In India, as part of scaled-up implementation of mobile-to-web citizen feedback surveys, eight cities (total population of more than 5 million) have been covered under the Service Level Benchmarking (SLB) Connect initiative, with 1.8 million benefiting from the initiative through mobile-to-web citizen feedback surveys in two cities. This has also been integrated into the design of the World Bank-supported 24/7 water supply project in Karnataka as part of mainstreaming citizen engagement in World Bank operations. This is now being scaled up to 10 cities (with over 10 million population), and the SLB Connect systems are being extended to support national city sanitation ratings in 75 cities across India.

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Using Knowledge to Shape Policy and DialogueTo further WSP’s research in the high-profile economic and sector work (ESW) assignment on Fecal Sludge Management: Diagnostics for Service Delivery in Urban Areas, WSP helped disseminate the findings at Stockholm Water Week and via partners and professional networks.

The impacts have already gone beyond the materials developed. The approach developed has become an integral part of a much wider discussion within the World

Bank about developing more financially viable and operationally sustainable approaches to sanitation. It has already influenced the design of World Bank investment programs in several countries, including Zambia, Ethiopia, Indonesia, India, and Vietnam.

WSP support of a new water sector development project component has focused on getting fecal sludge management under control in unplanned areas, where manual emptying and direct discharge abound and cholera is endemic when not epidemic. The design work is in progress, but has already

Figure 8: IDEnTIFYIng InSTITUTIonAl ImPEDImEnTS To ImPRovE FECAl SlUDgE mAnAgEmEnT

The fecal waste flow diagram, one of the fecal sludge management tools, can be used to give stakeholders an appreciation of the urban sanitation situation. It supports city service delivery assessment, political analysis, and prognosis for change. This helps identify the institutional impediments to improving fecal sludge management. It also includes a service delivery action framework that sets out recommendations on appropriate actions depending on the current status of fecal sludge management and its determinants in the city.

A new contribution is the Urban Sanitation Status Index, which assists in the spatial prioritization across a city. The work is presented in a summary report, which outlines how to apply the tools. with a compilation of the data collection instruments, sample terms of reference for consultants, and case studies.

http://www.worldbank.org/en/topic/sanitation/brief/ fecal-sludge-management-tools

DIAGNOSTICS & DECISION SUPPORT

1. Fecal Waste Flow Diagram

PROGRAM DESIGN

2. City Service Delivery Assessment

3. Prognosis for change: Political Economy Analysis

Developed under this study

Developed under other initiatives

Fecal Sludge techncal tools:

Quantification

Characterization

Treatment design

Urban Sanitation Status Index (USSI)

Institutions, systems, enabling environment

Technical design & costing

Prioritization

FSM Costing tool

Institutions,Financing

Sludge volumes & characteristics

Spatial data

Costs

5. Intervention Options Assessment Framework4. Service Delivery Action Framework



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opened perspectives on increasing access and reducing the cost of pit emptying by installing decentralized fecal sludge treatment units through small-scale emptiers capable of working in crowded spaces to complement tanker services provided by the private sector.

WSP helped develop a new investment in a multi-donor partnership with the European Investment Bank and the African Development Bank, where the World Bank contribution specifically aims to promote innovative nonnetworked approaches to sanitation improvements in peri-urban areas. This has now been taken forward through an Urban Sanitation Status Index, and an updated fecal sludge service delivery chain diagram (Figure 8) to support monitoring sanitation improvement resulting from the implementation of the US$65 million Lusaka Sanitation Program (LSP).

In Africa, two major regional analytical pieces—Providing Water to Poor People in African Cities Effectively: Lessons from Utility Reforms and The Performance of Water and Wastewater Utilities in Africa—have supported engagement with governments, service providers, and regulators. Together, the reports fill a gap in the literature of the utilities’ performance in Sub-Saharan Africa and expand on the determinants for performance, identify traditional and nontraditional mechanisms for reaching the poor, and highlight critical elements for turning bad-performing utilities around. (See the “Sharing Global Knowledge” section.)


The creation of the Water GP provides new opportunities to scale up the impacts of investments in the urban water and sanitation sector. WSP has developed notable ways of using such experiences and lessons, and now, as part of the overall Water GP, it can apply the learning in an environment where the investment resources and wider cross-sector knowledge of the World Bank Group as a whole can be mobilized and leveraged for greater effect than what WSP on its own has been able to achieve.

The foremost lesson has been that pro-poor interventions should be placed within citywide urban development policies, programs, and investments to achieve maximum impact and sustainability. In the fast-growing cities of the developing world, accessing water is a daily struggle for many families, and failure to deliver water and sanitation services to low-income communities places all city residents at risk, not only the poor. Climate change adds urgency to the need to address the challenges of water scarcity, urbanization, natural disaster, and economic development together as part of integrated urban water management, rather than make standalone water and sanitation interventions.

Technical support must extend beyond capacity building for individual institutions and innovative technical approaches. The Water GP will be instrumental in approaching sector issues through an integrated urban framework and strengthening the governance and relationships between key institutions, not only for water and sanitation service delivery, but also for cities and towns as a whole.

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Adapting Water Supply and Sanitation Delivery to Climate

Change Impacts

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The impacts of climate change will increase water stress as well as the number of extreme weather events such as floods and droughts. Urbanization and the rapid growth of large cities will be accompanied by an increase in highly vulnerable urban communities living in formal settlements. The poor are most vulnerable to these challenges because they have less access to resources to cope with extreme weather events and are often marginalized in decision-making.

Over the last six years, WSP’s Climate Change activities have focused on a small subset of countries to mainstream climate change adaptation (CCA) and disaster risk management (DRM) approaches into sector policy frameworks and practice. Because WSP’s climate change activities ended in fiscal year 2015, there are minimal results and milestones to report for fiscal year 2016.

In summary, WSP strengthened the capacity of six utilities to mainstream DRM and CCA measures. More than 400 stakeholders from 17 countries participated in a wide range of training events.16 WSP also worked with nine governments in mainstreaming CCA and DRM in national and subnational water and sanitation policies.

Key Program results

New research began in April 2016 to identify viable, proven options for climate-resilient practices in urban water supply and sanitation utilities that can be applied in developing countries. An improved understanding of these options and opportunities will help the World Bank’s Water GP improve its advice to country

Adapting Water Supply and Sanitation Delivery to Climate Change Impacts

clients for introducing climate-resilient practices in urban water supply and sanitation utilities. This work will provide an important foundation to enhance the climate resilience of water supply and sanitation services. The final global study will be completed in early 2017 and will be followed by a roadmap for utility management about what they need to know about climate risks and decision-making under uncertainty.

As of June 2015, WSP has supported governments in their efforts to mainstream CCA and DRM in nine national and subnational water and sanitation policies and strategies in Latin America and Asia (Vietnam). Given the limited engagement in WSP climate change activities over the business plan period, WSP was unable to achieve the 2015 milestone. In the next funding cycle, WSP hopes to significantly scale up its engagement in the subsector through increased integration within the Water GP.

Raising the Profile of the Effect of Climate Change on WaterOver the last six years, WSP made progress in raising awareness of the impacts of climate change for the water sector through evidence-based knowledge, advocacy, and dialogue. While bolivia, Peru, and vietnam were officially part of the Climate Change business area, WSP also worked in Costa Rica, Dominican Republic, El Salvador, guatemala, Honduras, nicaragua, and Panama to assess the status of disaster risk management in water supply and sanitation for the Central American and Dominican Republic Forum for Drinking Water and Sanitation (FOCARD-APS) members through a subregional economic and sector work project.

16 Bolivia, Peru, and Vietnam are part of the Climate Change business area. However, WSP also worked in Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Panama to carry out the assessment on the status of disaster risk management in water supply and sanitation for the FOCARD-APS members through a subregional economic and sector work project. WSP also implemented the water security pilot in India.

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Adapting Water Supply and Sanitation Delivery to Climate Change Impacts

In Central America, WSP has worked alongside the World Bank, which has partnered with the United Nations International Strategy for Disaster Reduction, Inter-American Development Bank, and others to raise awareness among client countries in Central America by providing them with a set of tools to help them better understand the risk of adverse natural events.

Supporting Policymakers to Manage RisksWSP worked closely with the World Bank’s Disaster Risk Management Unit to support the major water supply and sanitation utilities in incorporating probabilistic seismic risk assessments in their operative plans in Tegucigalpa, Honduras, and Arraijan and Puerto Armuelles, Panama. Initiated in 2008, the Central American Probabilistic Risk Assessment (CAPRA) aims to strengthen institutional capacity for assessing, understanding, and communicating disaster risk, with the ultimate goal of integrating disaster risk information into development policies and programs.

Building Institutional Capacity to Respond to RisksIn bolivia, urban expansion has significantly increased domestic and industrial water demands in the country. WSP has been supporting the Ministry of Water and Environment (MMAyA) to develop a wastewater reuse policy through economic and sector studies on water reuse and optimization of treatment models to deliver nutrient-rich water. WSP facilitated the creation and operation of a Wastewater Reuse Joint Commission to define policies, strategies, and interventions, and to operationalize wastewater reuse related lines of action outlined in the National Water and Sanitation Plan. WSP’s support has helped MMAyA formulate the first strategic guidelines for the promotion of safe wastewater reuse practices.

Achieving water security will be critical to achieving the MDGS.

Over the last six years, WSP made progress in raising awareness of the impacts of climate change for the water sector through evidence-based knowledge, advocacy, and dialogue.


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As a follow-up of this initial work, in fiscal year 2016, WSP has developed a programmatic approach that will provide inputs for the design of the National Wastewater Treatment Plants Strategy to be prepared by MMAyA between 2016 and 2017. One of the key features of this strategy is that wastewater will be regarded as an asset, to be reused particularly for irrigation. The proposed activities will include an economic and technical assessment of wastewater reuse which will identify current best practices in reuse, alternative technologies, and will carry out an economic analysis of the costs of implementing wastewater reuse for irrigation purposes


WSP’s experience over time has revealed that while delivery of sustainable and resilient WASH services is intrinsically linked to climate change, tools to understand and manage these linkages are scarce. Adaptation options and effective strategies also exist, but their context for implementation and potential to

reduce climate-related risks differ across countries and regions. Inadequate sector representation in the institutional policy and regulatory frameworks, poor governance, and weak organizational capacities are some of the most common constraints hindering the mainstreaming of CCA and DRM in the sector. Analysis of climate finance flows show that the sector is not optimally utilizing funds available to support adaptation to climate change.

The ineffectiveness of national institutions and lack of importance given to water security in government policies can also be attributed to poor sector coordination, fragmented responsibilities for water, and absence of concrete water security frameworks. Moving forward, WSP needs to ensure that this learning is adequately integrated into future water supply and sanitation interventions within the Water GP. Climate change is at the forefront of the water agenda for the Water GP to bring together water security with more traditional components of water including water supply, sanitation, irrigation, and water resources.

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Delivering Water Supply and Sanitation Services in Fragile and Conflict-Affected States

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Conflicts, economic crises, and natural disasters in low-income countries not only leave water supply infrastructure damaged, but also decimate government capacity to deliver basic services. As a result, emergency funding is often channeled to humanitarian agencies that deliver water and sanitation services directly to affected populations. Although this provides urgently needed emergency relief, it does not set in place the foundations for government institutions to oversee and sustain services once the crisis has passed.

Finding ways to build the capacity of country institutions to oversee and maintain WASH services, while humanitarian agencies address the immediate needs of those affected by conflict and crisis, has been at the center of WSP’s work in fragile states. The technical assistance aims to support fragile, conflict, and violence (FCV)-affected countries to transition their water supply and sanitation subsectors from being dominated by ad hoc emergency interventions to country-led sector development programs.

Key Program results

Over the last six years, the WSP provided technical assistance to eight countries in Sub-Saharan Africa17 as well as to Haiti, Papua New Guinea, Timor Leste, and conflict-affected areas of Pakistan.

In all the countries, other than Democratic Republic of Congo, WSP had to initiate and build a relationship with government and development partners from scratch. Although the interventions across all countries were developed with the same objective—transitioning to country-led development


programming—the specific interventions were shaped by country context and opportunities, with a focus on gathering basic data for service delivery and assessing billing systems to find short-term delivery-service improvements.

As WSP integrated into the broader Water GP across both its operational and knowledge management units, it provides an opportunity to integrate and mainstream the staff and their expertise for translating this type of upstream technical assistance into investment projects in fragile states.

In addition to directly managing operations in liberia and Somalia, members of the WSP fragile states team are playing key analytical and advisory roles in existing operations in Haiti, nigeria, Pakistan, Papua new guinea, and Zimbabwe as well as in developing new operations in Central Africa Republic, Cote d’Ivoire, guinea-bissau, Kiribati, madagascar, Sierra leone, and Yemen. The integration with the Water GP is also opening greater opportunities to address water resource issues in conjunction with water supply and sanitation services both in specific operations—such as understanding the whole water cycle in Kiribati—and at an analytical level, as discussed in a forthcoming World Bank report on the interaction between water stress and fragility.

This year, WSP published five new papers, including a report on sustaining investments in WASH in Liberia and the potential scope and nature of socioeconomic and environmental impacts in Somalia. In the last six years, WSP has published a total of 21 studies and reports and made all the underlying data public, surpassing the 2016 milestone.

17 The countries in Africa were Democratic Republic of Congo, Liberia, Nigeria, Republic of Congo, Sierra Leone, Somalia, South Sudan, and Zimbabwe. In South Sudan, the technical assistance was curtailed due to the resurgence of intense civil conflict.

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Rural Water Supply Urban Water Supply Rural Sanitation Urban Sanitation2010

Average Score

Change between 2010-2015

2015 Average Score

2010 Average Score


2015 Average Score

2010 Average Score


2015 Average Score

2010 Average Score


2015 Average Score

Enabling Developing Sustaining Enabling Developing Sustaining Enabling Developing Sustaining Enabling Developing Sustaining

Liberia 1.5 0.50 -0.17 0.17 1.7 1.5 0.67 0.17 0.50 1.9 1.2 0.50 1.3 0.8 0.17 -0.33 -0.17 1.1

ROC 1.2 0.00 -0.17 0.00 1.1 1.5 0.00 -0.17 -0.17 1.4 1.3 -0.50 -0.33 -0.33 0.9 1.5 -0.17 -0.17 0.17 1.3

Zimbabwe 0.8 1.17 -0.33 0.67 1.3 1.2 2.17 0.83 0.67 2.4 0.8 0.67 0.17 0.33 1.2 1.3 1.67 0.67 1.00 1.9

S. Sudan 0.8 0.67 0.17 1.17 1.5 0.7 1.00 0.50 0.83 1.5 0.7 1.00 0.33 -0.17 1.1 0.4 0.67 0.17 0.17 1.1

DRC 0.9 0.90 0.17 0.33 1.2 1.4 -0.17 0.33 0.00 1.4 0.6 0.00 0.17 0.17 0.7 0.4 -0.33 -0.33 0.17 0.4

Sierra Leone

1.4 0.00 0.00 0.00 1.4 1.5 0.50 0.17 0.67 1.9 1.4 0.17 0.00 0.00 1.4 1.2 -0.33 -0.50 0.50 1.3

Nigeria 1.4 0.33 0.17 0.00 1.6 1.4 0.33 -0.17 0.00 1.5 1.3 0.00 -0.50 0.00 1.1 1.3 -0.83 -0.50 -0.17 0.8

All Water Supply All Sanitation

1.24 0.54 0.11 0.35 1.57 1.02 0.19 -0.08 0.12 1.12

All Sub-sectors

1.13 0.36 0.01 0.23 1.34


18 The baseline for this indicator is drawn from the published results of the 2010 African Ministers’ Council on Water regional synthesis report, Pathways to Progress: Transi-tioning to Country-Led Service Delivery Pathways to Meet Africa’s Water Supply and Sanitation Targets, 2011, Washington, DC: World Bank.

WSP also consolidated and documented the lessons emerging from the last five years into a synthesis report based on the work across the eight countries in Africa, Water Supply: The Transition from Emergency to Development Support. Evidence from Country Case Studies in Africa. (See the “Sharing Global Knowledge” section).

Creating Enabling EnvironmentsAs of June 2016, progress against the enabling environment score is estimated at 1.34, thus falling below the 2016 milestone of 2 (see Figure 9).18 Although there is wide variation in country and subsector progress underlying this average score, no country has reached the target score of 2 across all subsectors. Progress on the enabling environment scores over the last five years has been modest due to a combination of positive steps and negative shocks experienced in the countries and WASH subsectors that WSP works in. For example, technical assistance and monitoring of the enabling environment was suspended in South Sudan in 2014. The indicator also does not capture progress made in fragile states for

which there was not a 2010 baseline; these include Haiti, Pakistan, Papua New Guinea, Somalia and Timor Leste.

The greatest areas of progress have been urban water, with some progress in rural water supply but very limited progress in urban and rural sanitation. Zimbabwe, particularly its urban water subsector, has made significant progress with positive developments in policy and donor funding. Less progress was made in the Republic of Congo, where government has used its own oil revenues to increase investment in the water sector, but with no clear policy direction, resulting in very poor water point sustainability (see Figures 10 and 11). However, this year, following very limited

Number of new papers published by WSP this year, including a report on sustaining investments in WASH in Liberia and the potential scope and nature of socioeconomic and environmental impacts in Somalia.

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Figure 9: CHAngE In SCoRES FoR SERvICE DElIvERY PATHWAYS bY CoUnTRY AnD SUbSECToR ACRoSS SEvEn AFRICA CoUnTRIES FRom 2010 To 2016

The greatest improvements have been in urban water, with some progress in rural water supply, and limited progress in sanitation.


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interest over the first four years of the business plan, the government requested WSP support for developing a new policy, which is in the final stages of development.

To understand the differential progress, it is important to understand how the technical assistance interacted with three contextual factors in each country: (i) when relative to the start of the post-crisis period, WSP engaged in the country; (ii) the intensity of the relationship with sector civil servants; and (iii) the degree to which WSP worked in collaboration with other external partners.

Of these process aspects, the timing of the technical assistance intervention relative to the start of the post-crisis was most critical. Although identifying the start of the post-crisis period can be difficult, particularly where there is no definitive peace settlement, it is possible by tagging the start of post-crisis period to sector events such as the restarting of utility operations, restarting of water point construction, or a specific disease outbreak.

The earlier WSP got involved in a country after these critical sector events, the greater the influence on the transition trajectory of the sector. In Zimbabwe, WSP got involved very soon

after the 2008 cholera outbreak and was able to create strong partnerships with both sector civil servants and with other external responders (both humanitarian and development).

By contrast, WSP only got involved in liberia in 2011 and in Sierra leone in 2012, nearly a decade after their respective peace settlements. In addition to making it more difficult to develop trusted relations with sector civil servants and to break into established networks of external partners, it was observed that as time passes the combined effect of unmanaged aid and the entrenchment of alternative service providers makes it ever more difficult to reestablish arrangements between sector oversight institutions and non-state service providers.

The intensity of the relationship with sector civil servants was pivotal in adding value. In most of the countries, WSP developed strong relations with civil servants adept at shaping and managing the process. Leaders at Guma Valley Water Corporation (GVWC) in Sierra leone, for example, were very clear about their need to replace their utility billing system and carry out a customer enumeration survey. They quickly took over the management of the firm hired to carry out the work and developed new ways of using the data generated using SMS

Figure 10: nUmbER oF WATER PoInTS ConSTRUCTED bY YEAR In REPUblIC oF Congo

Figure 11: PERCEnTAgE oF FAIlED WATER PoInTS bY YEAR oF ConSTRUCTIon In REPUblIC oF Congo

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Finding ways to build the capacity of country institutions to oversee and maintain WASH services, while humanitarian agencies address the immediate needs of those affected by conflict and crisis, has been at the center of WSP’s work in fragile states.

text messages to let customers know their outstanding balances with the utility. In Somalia, with virtually no external partners involved in financing government-led service delivery or oversight, sector civil servants skillfully matched the technical assistance resources for corporate governance with their local political connections to put in place the board of directors for Hargeisa Water Agency (HWA).

The degree to which WSP worked in collaboration with other external partners reflected a growing realization that building government capacity for sector oversight had to be matched with brokering multistakeholder agreements with external partners. Achieving a real transition from emergency to development programming required mutual accountability for sector results—external partners had to be transparent and accountable to government for their results and vice versa. In liberia, WSP invested a great deal of time and effort in supporting the multistakeholder compact

compared with Sierra Leone where WSP did not have a continuous in-country presence. The compact in Liberia has helped the government shift the relationship with external actors from that of passive recipient toward one in which sector oversight institutions play a greater role in defining strategy and resource allocation

Influencing Investments to Improve Service DeliverySince the baseline was established, WSP has influenced over US$535 million in financing. This includes direct influence on US$248 million of World Bank WASH financing, and US$287 million of indirect influence on the projects of other donors and developing country governments. Over US$40 million of this was leveraged in fiscal year 2016, mainly through World Bank investment projects in Somalia and Zimbabwe becoming effective and the IDA allocation for the water projects in Papua New Guinea being raised from US$50 to US$70 million.



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WSP has used the steadily increasing integration with operations to influence the design and implementation of World Bank operations, specifically supporting water sector investments in non-IDA countries reliant on multi-donor trust funds that are in arrears, such as in Somalia and Zimbabwe, as well as in IDA countries.

In Somalia, the Water and Agro-pastoral Livelihoods Pilot that was designed by WSP is now under implementation. The project will improve access to, and management of, small-scale water sources and enhance the capacity of the government to implement small-scale water interventions in targeted arid lands. The project will provide improved WASH access to 35,000 people and their livestock. The project is managed by the respective ministries of the environment of Somaliland and the Regional State of Puntland. As this is financed by the State and Peace-Building Fund (and not IDA), WSP is supervising the project together with the Agriculture GP.

The Zimbabwe National Water Project builds on years of WSP-financed upstream work on Zimbabwe’s national water policy, service-level benchmarking with municipal local authorities, and sector regulation. The project, financed by a multi-donor trust fund, was designed by an integrated WSP and operations team. The project will improve access and efficiency in water services in seven selected growth centers benefitting more than 50,000 people. It will also strengthen planning and regulation capacity for the water and sanitation sector. Negotiations have been completed and the project will become effective in the next month.

In liberia, additional financing made available during the Ebola virus supported a new urban water supply project that will increase access to piped water supply services in the project area in Monrovia and improve the operational efficiency of national utility Liberia Water and Sewer Corporation (LWSC). The project was designed by a WSP team working closely with

operations colleagues and building on intensive technical assistance work to improve cost recovery at LWSC. The project will improve water access for 65,000 people in Monrovia, set the groundwork for investment in other smaller towns in Liberia, and set up an urban sanitation investment.

WSP also worked closely with the operations teams to design and prepare new IDA projects in Liberia ($10 million), Papua New Guinea (US$70 million), and Haiti (US$50 million).

The project in Papua new guinea supports the implementation of the National WASH Policy to develop, establish, and strengthen the sector institutional and financing structures set out in the policy. The investment will target rural areas and small towns, strengthening planning and backstopping mechanisms at the deconcentrated level (regions) as well as improving capacity to respond to emergencies.

WSP has also continued to influence the financing of other development partners through less direct means, including encouraging donors to use the evidence base generated by WSP on the efficiency and effectiveness of service delivery models in fragile states. For example, WSP’s evaluation of so-called “autonomous water schemes” in Democratic Republic of Congo identified 520 autonomous water systems, 83 percent of which were functional, serving more than 4 million people. These water supply networks, constructed over the last 30 years with donor funding, were common service delivery models,

Amount influenced by WSP in financing This includes direct influence on US$248 million of World Bank WASH financing, and US$287 million of indirect influence on the projects of other donors and developing country governments.

+US$535 Million

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but little was known about their location, size, number served, technology, or financial viability. The evaluation has encouraged the African Development Bank (AfDB) to adopt the model for a new rural water supply program, the Project for the Reinforcement of Socio-Economic Infrastructure (PRISE) in Kasai Oriental and Occidental.


WSP’s work to support fragile states over the last five years has brought greater clarity on how development interventions can play a role in rebuilding sector institutions as a counterbalance to the effort put into providing emergency relief. The mainstreaming of WSP into the Water GP will provide be ample opportunity for putting these lessons into practice across operations in fragile states.

There is a high premium to initiating development interventions early in the post-crisis period. Intervening early sets in place the foundations for building sector oversight capacity and initiating utility reform that can help prevent countries from getting locked into unsustainable aid modalities and can stem the proliferation of alternative water sources. As time passes, the effort and capacity required to overcome what become operational norms and vested interests increases. Contextual factors change and crystalize around dominant service delivery modalities. Political incentives to tackle cost recovery wane and aid modalities get entrenched, making the transition to development programming more difficult.

Looking ahead as WSP integrates with the Water GP and the SDG period, there are two groups of fragile states that the World Bank will need to work closely with. The first group

will be low-income countries. As the Bank’s largest IDA clients move into middle-income status (such as India, Ghana, Vietnam), the population served by IDA will shrink from ~3 billion to 1 billion by 2025.

The remaining 30 or so IDA clients are likely to be mostly fragile and/or post-conflict states. The closer integration of WSP with operations will be an opportunity to mainstream the know-how generated by the fragile states business area during the 2011–2016 business plan. In particular, it will be an opportunity to ensure that financing for WASH received through the World Bank strengthens the use of core country systems in the delivery of services, and avoids channeling funding through parallel systems that undermine the ability of governments to build the institutions and capacity needed to deliver services.

The second group will be middle-income fragile states, mainly but not exclusively in the Middle East and North Africa region, that are experiencing protracted civil conflict (such as Syria and Iraq). Both these countries and their neighboring countries are increasingly finding it hard to cope with a large number of forcibly displaced people putting additional demands on basic services. In these countries, the WASH sector will need to work closely with decentralized levels of government in urban and small municipalities that face huge pressure on their basic services. This will require (i) developing ways to integrate financing for WASH into intergovernmental fiscal transfer mechanisms; (ii) working with service provision entities at the local level to expand services to both displaced and host communities; (iii) improving efficiency of service delivery; and (iv) finding solutions to water resource scarcity.



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HigHLigHt 5: THE TRAnSITIon FRom EmERgEnCY To DEvEloPmEnT SUPPoRT: KEY lESSonS FRom CoUnTRY CASE STUDIES In AFRICA

A common trend in the case studies was that as time goes by it gets harder, not easier, to rebalance the tradeoff between delivering emergency water supply infrastructure and building institutions that deliver sustainable water supply services. This was due both to the build-up of unmanaged infrastructure delivered by the external humanitarian response and a proliferation of alternative service delivery arrangements that had filled the service delivery void.

Variation in the evolution of service provision across countries was influenced by political incentives to get services working on one hand, and the characteristics of alternative service delivery arrangements on the other. Although the emergence of alternative service arrangements was common to all the countries supported, the extent to which these arrangements subsequently dominated service delivery was inversely related to the political incentives to charge for services. Greater political incentives to charge for utility services—observed where subnational authorities were striving to prove themselves in the face of weakening central governments—bolstered utility viability and provided a viable alternative to the temporary coping arrangements.

Building sector oversight. Building sector oversight capacity of ministries responsible for water was the basis for technical assistance to support the transition from emergency to country-led development programming.

Primary data collection on service delivery was an effective entry point for restoring government into a sector oversight role by enabling ministries responsible for water to pinpoint critical sector issues. Government ministries were able to better identify service delivery models and better target sector investments and stimulate new investment in service delivery models that were shown to work well, such as sand dams in Somalia and autonomous piped water systems in DRC.

Although service delivery data were the basis for renegotiating roles with external responders and alternative service providers, the difficulty of upholding these agreements was underestimated. In all countries, the data sparked constructive dialogue on better targeting and management of service delivery between government and sector actors. In two countries—Liberia and Zimbabwe—governments used the data to shift the relationship with the multitude of actors operating in the sector from that of passive recipient toward one in which sector oversight institutions play a role in defining where and how services are delivered.

First steps of utility reform. Technical assistance for utility reform was initiated through short-term, low-cost actions undertaken to improve the level of cost recovery. These actions were an entry point to broader utility reform actions on governance and a precursor to infrastructure investment.

Utility provision can provide a lower cost service, even in extremely fragile operating environments, that can benefit the poor. Supporting utilities to upgrade accounting and billing systems, carry out customer enumeration surveys to update customer databases, and reduce nonrevenue water by regularizing illegal connections helped expand the revenue base and create opportunities to connect new customers and win back market share from more expensive alternative providers. Tackling cost recovery-supported performance improvements was an entry point for broader utility reform. Acting on cost recovery led to direct improvements in revenue trends in utilities in Liberia and Sierra Leone. Cost recovery also provided an entry point to other reform actions focused on human resources and financial management at utilities in Somalia and Nigeria.

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Global Communications and Advocacy

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The Water and Sanitation Program (WSP) employs a diverse range of innovative communication tools to share key knowledge and lessons for use by partners and the global public and to build political will on key issues. This year, WSP continued to leverage its role within the Water Global Practice (GP) to do this more strategically and on a much wider scale, engaging key stakeholders at key moments, fostering partnerships, and developing channels to create a deeper impact.

The communication and advocacy strategy for fiscal year 2016 focused on building internal capacity to engage externally, strengthening the reach of WSP knowledge, and providing evidence-based advocacy on issues such as sanitation and water security. Given the evolution of WSP and the Water GP, it was important to signal a more holistic approach to water and sanitation that recognized that to provide universal access to water and sanitation services by 2030, we must not only ensure sustainability of quality and services, but also increase water efficiency and reuse to protect our already scarce water resources. Building a Community of Communicators

WSP helped build internal support by highlighting the critical importance of water and sanitation to meet the World Bank Group goals of sustainably ending poverty and boosting shared prosperity by 2030. Incorporating WASH-related messages into high-level global engagements, and leveraging internal World Bank channels to connect WASH to health, education, gender, and poverty issues helped keep water and sanitation on the corporate agenda.


WSP supported efforts to strengthen cross-sector collaboration and approaches, including internal engagement targeted at these other sectors. The AskWater campaign built on the Water GP’s new internal knowledge platform and helpdesk and offered a simple channel for World Bank staff to engage.

WSP also helped usher in a more efficient, technologically advanced news monitoring service to help bring the latest external water-related news directly to technical staff. With WSP’s support, the Water GP was also able to offer staff a semimonthly, mobile-friendly platform, accessible from anywhere in the world, to share new experiences, lessons, and insight. This helped other GP staff avoid pitfalls and identify new opportunities for innovation, enhancement, and collaboration, strengthening the global expertise available to clients while offering staff recognition for their work, reinforcing strengthening identity, and encouraging others to share their experiences. To help foster this “community of communicators,” a virtual one-stop guidance shop was also created to remove internal barriers and empower staff to engage with critical external stakeholders.

To help offer potential entry points for clients, partners, and other external stakeholders, the Water GP, with support from the Water Partnership Program (WPP) and WSP, created and shared a digital video package building awareness around the solutions, approaches, and results it offers. These and other materials are among the most downloaded documents on the website.

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Delivering to Clients

WSP support helped create the space for increased operational support to clients for water and sanitation interventions, both through ongoing work with partners on strengthening the external narrative on water and sanitation service delivery and related modalities, and by showcasing client successes through promotion of project stories with lessons and examples of results.

WSP also helped the Water GP drive the dialogue in the public domain by sharing rich lessons and new analyses with key audiences through World Bank Group channels. This year, more than 108 knowledge products with lessons and tools to deliver at-scale and sustainable water and sanitation services for poor people were shared with government clients, World Bank operational teams, and mass audiences including academia, civil society organizations, development partners, sector practitioners, and other global public stakeholders.

This was achieved using a variety of channels, including WSP and World Bank external websites, online marketing channels, email blasts to 10,000 subscribers, social media promotion, World Bank internal channels (e.g., intranet, operational portal, and internal blogs), regional sanitation conferences (AfricaSan, SACOSAN, LatinoSan), and global events. In some places, WSP offered products and technical assistance to help improve stakeholder engagement, communications capacity building, and behavior change communications at the local and national levels to support sustainability and inclusion. Much technical assistance was provided in India to support the national sanitation campaign, Swachh Bharat-Gramin Mission, and in other countries as well.

The website saw a 16 percent increase in usage compared to the previous year, attracting more than 600,000 visitors. WSP

continued its leadership role in social media, with more than 23,000 followers on Twitter, an increase of 58 percent from the previous year. Some of the most influential followers include prime ministers, senators, mayors, and other leaders from countries around the world. These individuals include Mariano Rajoy, Prime Minister of Spain; Kevin Rudd, Former Prime Minister of Australia; Melanie Schultz, Minister of Infrastructure and Environment, Netherlands; Kidero Evans, Nairobi City Governor, Kenya; Mike Schreiner, Leader of the Green Party of Ontario, Canada; US Senator Dick Durbin; and Fredy Marrufo, Mayor of Cozumel, Mexico.

A video, Clean India: Working Models of Rural Waste Management, featuring WSP’s longstanding work in that country garnered 11,500 views this year, totaling 31,537 views since its launch in 2011.

The news media continues to be a strategic audience for WSP given its reach and influence. Media coverage of WSP’s work was featured in the Guardian, Washington Post, Financial Times, Reuters, India TV, and National Public Radio (NPR), among other outlets.

Leading global Advocacy for Water, Sanitation, and Water Security

Although advocacy is not a traditional area of investment for the World Bank Group, WSP helped define the role the World Bank Group can play in advancing progress on a global development challenge such as sanitation. This year, WSP helped leverage World Bank Group platforms, channels, and audiences to build awareness and support at the global and national levels for sanitation, an issue that until a few years ago was still considered taboo in many places.

Advocacy work helped foster US$2.5 billion in new sanitation commitments from the World Bank Group. In September 2015, with support from WSP and other partners, the


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Knowledge products with lessons and tools to deliver at-scale and sustainable water and sanitation services for poor people shared with government clients, World Bank operational teams, and mass audiences including academia, civil society organizations, development partners, sector practitioners, and other global public stakeholders this year.

New followers on Twitter, an increase of 58 percent from the previous year, showing WSP’s continued its leadership role in social media.

+108 +23,000

Major TWiTTEr influEncErs:

25,000

+600,000

Number of YouTube views on WSP’s YouTube channel.

Number of visitors to www.wsp.org; a 16 percent increase in usage compared to the previous year.

@marianorajoy@MrKRudd@MelanieSvH@KideroEvans

MEDia ouTlETs

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Water GP collaborated with the social action organization, Global Citizen, to again support its Global Citizen Festival to continue the global movement to end open defecation and poverty by 2030. Almost 60,000 people gathered in New York’s Central Park to take part in the event, while millions of others tuned in live on NBC and MSNBC. WSP’s support helped raise the issue at the highest internal level to generate maximum external support. World Bank President Jim Yong Kim and Sesame Street’s Big Bird took the stage at the festival to signal the individual, societal, and economic importance of sanitation, hygiene, and behavior change in ending extreme poverty. Dr. Kim provided an update on the World Bank’s US$15 billion commitment announced at the 2014 Global Citizen Festival. He announced that the World Bank Group, together with partners such as the United Nations, BRAC, WaterAid, Water.org, and ONEDROP, had already delivered US$4 billion, which will

provide 20 million people with access to safe sanitation and water. This funding will also help countries protect their citizens, especially children, by teaching healthy behaviors.

Communication activities around events such as World Toilet Day provided an opportunity to further contribute WSP knowledge to advance the global agenda while raising awareness on sanitation issues with global and local audiences.

The cartoon calendar, which has been one of WSP’s most popular products for many years, signaled the evolution of WSP’s approach to service delivery with the theme “A Water-Secure World for All,” further contributing to advancing the Sustainable Development Goals (SDG) agenda while tackling taboos around service provision and sanitation. The cartoons are used and repurposed in different formats to reach wider audiences.

The WSP cartoon calendar, which has been one of WSP’s most popular products for many years, further contributed to advancing the SDg agenda while tackling taboos around service provision and sanitation.



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WSP also contributed to the creation of the High-Level Panel on Water (HLPW), which serves as a platform to help increase attention to the water-related SDGs. Convened by the United Nations Secretary-General and the President of the World Bank Group, the HLPW was announced at the World Economic Forum in Davos in January 2016 and officially launched in April 2016 in New York. Consisting of 11 sitting heads of state and government and one special adviser, the HLPW aims to provide the leadership required to champion a comprehensive, inclusive, and collaborative way of developing and managing water

resources and improving water- and sanitation-related services. WSP support helped ensure that the HLPW continues to include sanitation and service delivery on its agenda.

In FY16, the WSP cartoon calendar, which has been one of WSP’s most popular products for many years, signaled the evolution of WSP’s approach to service delivery with the theme “A Water-Secure World for All,” further contributing to advancing the SDG agenda while tackling taboos around service provision and sanitation.

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Administration and Finance

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Operating under a New Strategic Partnership Framework (2017–2021)

The Global Water Security and Sanitation Partnership, new strategic partnership framework finalized this year, brings together World Bank activities and partnership-funded activities for tracking and reporting World Bank results to IDA and International Bank for Reconstruction and Development donors. The new structure reflects WSP’s new role within the Water GP, aligns with the Water GP’s integrated water agenda, and meets the strategic priorities and legal and administrative requirements of the different donors.


extending of the global Core Multi-Donor trust Fund

In the last fiscal year, WSP was granted a no-cost extension to June 2017 for the Global Core Multi-Donor Trust Fund (MDTF) to help close out the current business plan and finalize strategic planning for future program activities.

Approximately 80 percent of the total funding for the business plan is channeled through the Global Core MDTF. The extension provided critical support to ensure operational and business continuity of WSP programs, and to minimize the risk of any potential disruptions in country engagement that could adversely

10

Figure 12: ComPARATIvE DISbURSEmEnTS – FISCAl YEARS 2011-2016

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impact the significant gains made over the last five years. The extension also helped WSP achieve additional results made possible through new funding received in the last two years of the current business plan.

Disbursements by Fiscal Year

In fiscal year 2016, WSP disbursed US$39.9 million, a 27 percent reduction from fiscal year 2015, but comparable to disbursements in previous fiscal years (see Figure 12). At the end of 2016, cumulative disbursements in the business plan period were US$252 million.

Disbursements by Business Area

Disbursements in the rural sanitation, sustainable domestic private sector, and the poor-inclusive policy reform business areas comprise the bulk of WSP’s disbursements in fiscal year 2016, with a combined total of 80 percent of total spending (see Figure 13). The proportion of the amount disbursed to these three largest business areas is greater than the 77 percent in fiscal year 2015.

Disbursements for domestic private sector business area projects accounted for 15 percent of all disbursements as the program

Figure 13: FISCAl YEAR 2016 DISbURSEmEnTS bY bUSInESS AREA

Disbursements for rural sanitation were highest in East Asia, Africa, and South Asia (see Figure 14). Disbursements in the Supporting Poor-Inclusive Water Supply and Sanitation Sector Reform (Sector Reform) area were highest in latin America, Africa, and global activities. WSP disbursements related to fragile states all occurred in Africa.

Fragile States, 2.12, 6%

Sector Reform, 13.67, 41%

Climate Change, 0.01, 0%

Rural Sanitation, 8.04, 24%

DPSP, 4.89, 15%

Urban Poor, 4.66, 14%


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Figure 14: FISCAl YEAR 2016 REgIonAl DISbURSEmEnTS bY bUSInESS AREA

Figure 15: DISbURSEmEnTS bY bUSInESS AREA – FISCAl YEARS 2011-2016

A large number of activities were completed in fiscal year 2015. Fiscal year 2016 marked the initiation of new activities aligned with the new global Solutions groups. Disbursement for these activities will peak in fiscal year 2017.

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closed (compared to 25 percent in fiscal year 2015), while projects targeting urban initiatives at 14 percent of total disbursements were slightly lower than the 15 percent in the previous fiscal year. The absolute spend on projects related to climate change decreased to $0.01 million while that related to delivering water and sanitation services in fragile states decreased from US$3.7 million to US$2.1 million this fiscal year (see Figure 15).

tABLe 1: DonoR ConTRIbUTIonS – FY11-18 (In US$ mIllIon)

Donor Contributions

WSP received US$10.6 million in contributions in fiscal year 2016 (see Table 1). Cumulative contributions of US$246.7 million were received during the full business plan period. In accordance with signed administration agreements, WSP anticipates receiving the unpaid amount of US$2.4 million in the post-business plan period.

Funding Partner PurposeFY11-14Receipts

FY15Receipts

FY11-15Receipts

FY16Receipts

FY17-18Pledged/

Unpaid

TotalFY11-FY18

Austria (Min of Finance)

Global Core - 2.46 2.46 2.46

Australia (AusAid) Global Core 17.36 3.92 21.29 3.59 24.88

Austria (ADA) Global Core 1.89 1.89 1.89

Denmark Global Core 1.12 1.12 1.12

Gates Foundation Global Core 6.00 1.22 7.22 1.22 2.40 10.84

Luxembourg Global Core 0.87 0.87 0.87

Netherlands Global Core 5.50 - 5.50 2.00 7.50

Norway Global Core 1.88 1.88 1.88

Sweden (Sida) Global Core 49.70 4.02 53.72 53.72

Switzerland (SDC) Global Core 5.37 - 5.37 2.41 7.78

United Kingdom (DFID)

Global Core 50.79 9.44 60.23 60.23

Global Core Sub-total 140.48 21.07 161.55 9.22 2.40 173.17

Australia (AusAid) Africa MDTF 4..97 4.97 4.97

Austria (ADA) Africa MDTF 2.11 0.38 2.49 - 2.49

Finland Africa MDTF 13.29 3.34 16.63 16.63

Switzerland (SDC) Africa MDTF 1.47 1.49 2.96 2.96

Australia (AusAid) South Asia Regional Core 3.10 3.10 3.10

Australia (AusAid) East Asia MDTF 4.42 4.42 4.42

Australia (AusAid) East Asia Targeted 2.28 2.28 2.28

Switzerland (SDC) LAC MDTF 3.92 1.55 5.48 5.48

Regional Core Sub-total 35.56 6.77 42.32 - - 42.32

Finland Targeted - Ethiopia 0.43 0.43 0.43

Sweden (Sida) Targeted - Bangladesh 1.05 - 1.05 - 1.05

Switzerland (SDC) Targeted - Bangladesh 3.31 0.47 3.77 - 3.77

USAID Targeted - Pakistan 2.72 1.20 3.92 1.42 5.34

Targeted Sub-total 7.52 1.67 9.18 1.42 - 10.60

United Kingdom (DFID)

SS-DPSP 10.05 - 10.05 10.05

Gates Foundation TSSM 10.57 10.57 10.57

Programmatic Sub-total 20.62 - 20.62 - - 20.62

Total 204.18 29.50 233.68 10.64 2.40 246.72



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Annex 1: Fiscal Year 2016

Disbursements by Country

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Country/Program Cost object DescriptionFY16

Disbursements

AFRICAAfrica Assessment of prepaid systems 5,638

Delivering water supply and sanitation in fragile states 2,115,643

Regional sanitation and hygiene 27,392

Water utilities and the urban poor 551,492

Africa Total 2,700,165

Benin Capacity building for PPP and SS-DPSP 2,892

Streamlining strategies/capacity for SDG 174,780

benin Total 177,672

Burkina-Faso Burkina domestic private sector in water 64,969

Burkina pro-poor sector reforms 112,463

burkina-Faso Total 177,431

Congo, Dem Rep Poverty diagnostic for WASH 354,256

Congo, Dem Rep Total 354,256

Ethiopia Building capacity for sanitation 78,038

Ethiopia WASH poverty diagnostic 332,483

Performance monitoring for sanitation -

Support to Government of Ethiopia to improve UST sanitation

370,209

Sustainable and equitable WASH services 387,167

Ethiopia Total 1,167,897

Kenya Accelerating access to sanitation 9,841

Improve service standards in urban water 14,722

Innovation in urban poor access to water supply and sanitation

8,780

Kenya urban commercial financing—water 463,995

Kenya Water and Sanitation OBA Fund 37,051

Nairobi Sanitation Project 48,835

Plastic latrines impact evaluation 232,797

Strengthening water supply and sanitation delivery to counties

680,104

Supporting the new water policy and act -

Kenya Total 1,496,125

Liberia Improve access to water supply in Monrovia -

Safe WASH services for Liberia 239,576

liberia Total 239,576

Madagascar Fostering integrated urban water management 625,859

madagascar Total 625,859

Mozambique AF/MZ/01 Rural and town water supply 672,011

AF/MZ/02 Peri-urban sanitation and water 16,939

** AF/MZ/03 Sector information system 4,388

Annex 1: Fiscal Year 2016 Disbursements by Country

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Disbursements

JSDF Maputo peri-urban sanitation 21,187

Mozambique basic sanitation and water 159,808

Mozambique WASH Poverty Diagnostic 150,603

Operations support 25,674

Support to AIAS and related entities 4,936

System development and training 18,900

mozambique Total 1,074,447

Niger Niger WASH Poverty Diagnostic 193,220

Niger’s improved water and sanitation services 90,431

Strengthening enabling environment sanitation 40

Strengthening the domestic private sector 326,639

niger Total 610,329

Nigeria NG WASH Poverty Diagnostics 135,083

Sustainable water supply and sanitation services in Nigeria

45,367

nigeria Total 180,450

Senegal Senegal domestic private sector in water and sanitation 707

Strengthening service delivery and regulation 12,120

Strengthening the enabling environment to scale up RS 366,323

Senegal Total 379,150

Somalia Somali resilient multiple use water services 181,178

Somalia Total 181,178

Tanzania Equitable urban water supply and sanitation 14,094

Poor-inclusive sustainable water and sanitation in Tanzania

675,253

Rural sanitation supply and demand 129,461

Tanzania sustainable rural water supply 487,583

Tanzania Total 1,306,391

Uganda DPSP in small towns 154,475

Private sector performance in delivering -

Sanitation diagnostics and FSM 59,703

Strengthening the enabling environment for sanitation 6,290

Uganda Total 220,468

Zambia Enhancing viability of urban utilities 12,615

Peri-urban sanitation improvement 176,499

Zambia Total 189,114

Zimbabwe Enhancing resilience of local authorities 212,042

Zimbabwe Total 212,042

Africa Total 11,292,549


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Disbursements

EAST ASIA AND PACIFIC

Cambodia Cambodia domestic private sector water 322,834

Cambodia rural water supply and sanitation sector improvement support

587,915

Technical assistance—Cambodia sanitation marketing 8,752

Cambodia Total 919,501

East Asia and P EA/REg/43 - Regional knowledge products -

Pacific poor-inclusive water supply and sanitation approaches

406,784

Service delivery assessments for EAP -

East Asia and P Total 406,784

Indonesia DPSP in RWS in Indonesia 142,120

Indonesia rural sanitation market expansion (403)

Indonesia WASH Poverty Diagnostics 224,202

National urban sanitation support program 81,972

Rural sanitation capacity building -

Rural water supply and sanitation services for all in Indonesia

-

Scaling Up Rural Sanitation 510,160

Septage management in Indonesia 284,931

Indonesia Total 1,242,981

Laos Laos impact evaluation rural sanitation 231,229

Sanitation demand creation in Lao PDR 135,489

Sanitation marketing in Lao PDR 187,827

Strengthen Lao WASH sector coordination 788

laos Total 555,334

Philippines Integrating sanitation programming in 4P 224,328

National Water Resources Board permit management process

322,189

Philippines Scaling Up Rural Sanitation 659,965

Technical assistance—Philippines small water utilities 232,474

Philippines Total 1,438,956

Vietnam Rural sanitation NM-CH Vietnam 406,361

Subnational sanitation capacity building 308,205

SupRS: Demand creation and supply chain 352,063

SupRS: Enabling environment 364,960

Vietnam PforR rural water supply and sanitation impact evaluation

27,830

Vietnam water sector reform/regulation -

Water and sanitation provincial master plan for Quang Nam

42,446

vietnam Total 1,501,865

East Asia and Pacific Total 6,065,422

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Disbursements

LATIN AMERICA AND CARIBBEAN

Bolivia Peri-urban/small towns sanitation service 163,217

Revision of water and sanitation preinvestment norms 60,356

Strengthening water and sanitation sustainable services 137,527

bolivia Total 361,101

Central AmericaImproving rural water supply and sanitation national strategies

150,803

MAPAS in CA: Phase II 190,317

MAPAS: Water and sanitation in Central America 340

Regional agenda for sanitation in Central America 66,989

Status of DRM and CCA in water and sanitation in Central America

-

Strengthening water service for all—Central America 56,677

WASH Poverty Diagnostic Panama/Guatemala 218,186

WRM in the dry corridor 79,122

Central America Total 762,434

Ecuador Ecuador WASH Poverty Diagnostic 290,704

SENAGUA institutional strengthening 152,206

Ecuador Total 442,910

Haiti DINEPA technical assistance 823,257

Haiti Country WASH Poverty Diagnostic 216,166

Haiti Total 1,039,423

Honduras Strategy for water supply and sanitation in small towns 151,895

Strengthening sanitation planning in Honduras 72,381

Water and sanitation sector financial policy in Honduras 90,566

Honduras Total 314,842

Latin America SIASAR consolidation and expansion in LAC 560,902

WSP Latin America regional learning 69,131

latin America Total 630,033

Nicaragua Economics of Sanitation Initiative -

Water and sanitation policy reform 204,421

nicaragua Total 204,421

Peru Creating sanitation markets 163,907

Demand management in utilities 188,963

Impact of water and sanitation in private business competitiveness

1,622

LAC WATER Impact Evaluation Workshop 2,573

Latinosan Regional Conference Peru 2016 307,384

Peru optimization of Lima water and sewerage (520)

Peru RAS peri-urban water supply and sanitation service delivery

149,782

Peru: Support water sector modernization 733,497

WASH in school infrastructure 99,175

Peru Total 1,646,382

Latin America and Caribbean Total 5,401,545



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Disbursements

MIDDLE EAST AND NORTH AFRICA

Egypt Capacity building support to the PMU 150,631

Improving water and sewer corporations’ procurement systems

25,810

Support to citizen engagement/GRM 93,645

Support to monitoring and benchmarking systems 105,859

Sustainable rural sanitation in Egypt 188,068

Egypt Total 564,014

Middle East and North Africa Total 564,014

SOUTH ASIA

Bangladesh Bangladesh diarrhea and sanitation 38,174

Bangladesh WASH Poverty Diagnostics 420,977

Bangladesh water supply and sanitation policy reform urban poor

514,245

Bangladesh: Scaling up Rural Sanitation 30,448

DPS Regulatory Framework San Bangladesh 502,951

Private operators and investors in water 110,175

SA/BD/3.2 Poor-inclusive LG reforms -

Skills development of entrepreneurs 58,691

Support to national capacity development 206,400

bangladesh Total 1,882,061

India Benchmarking and citizen voice 409,710

City sanitation plans (7)

Impact evaluation India sanitation/insurance SIEF 116,235

India WASH Poverty Diagnostics 11,325

Institutional capacity and gender -

Programmatic support for Swachh Bharat 17,146

Strengthening client RWS operations 116,136

Strengthening LG sanitation capacity 712,052

Strengthening sector policy rural sanitation 488,672

Support for NUSP 340

Supporting drinking water security pilot (146)

Supporting impact evaluation in water supply and sanitation

-

Technical assistance Minister of Drinking Water and Sanitation

21,693

Technical assistance to selected states 36,612

Tracking sanitation outcomes through ICT -

India Total 1,929,769

Pakistan Capacity development of urban utilities 99,732

Knowledge, capacity and learning activities (98)

Pakistan WASH Poverty Diagnostics 112,021

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Disbursements

PBC for NRW reduction 81,981

Scaling Up Rural Sanitation and Hygiene in Pakistan 554,641

Strengthening rural water providers 70,167

Strengthening urban policy and institutions -

Water and sanitation service delivery assessments Pakistan

118,847

Pakistan Total 1,037,290

South Asia Region Total 4,849,120

GLOBAL

Multi-Regional Economics of Sanitation Toolkit 166,489

Multisector approaches to nutrition-WASH 44,127

Stocktaking community WASH initiatives -

Unlocking ICT potential in WASH -

multi-Regional Total 210,616

World Behavior Change Community of Practice 72,714

Benchmarking of water utilities 743,272

Developing field-level leaders 17,237

Equalizing access to water supply and sanitation 166,030

Financing universal access 181,884

FSM diagnostics for service delivery 601,491

GL/GLO/24: Communication, knowledge, and advocacy

285,328

GL/GPT/22: Water supply and sanitation for the urban poor

-

Global Scaling Up Rural Sanitation-HQ (543)

GWASP-Global sector events-TF094215 88,815

GWASP corporate communications GPM 325

GWASP monitoring and evaluation 349,555

GWASP monitoring and evaluation TF096072 10,815

Improving climate resilience in water supply and sanitation

12,784

KM Coordination in AFR (renamed Sep 2014) 41,703

Post-2015 WASH costs, benefits, finance 86,270

PPP knowledge support to teams and clients 36,548

Pro-poor reform global coordination 723,800

Responding to rapid urbanization 8,164

Strengthening public institutions/DPSP 60,111

Supplemental DPSP global coordination 898,809

Sustainable rural water services 230,398

TWIWP monitoring and evaluation GPM 272,405

WASH integration in multisector programs 56,928

WASH Poverty Diagnostic Global PA 1,257,607

Water Week 2015 (36)


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Disbursements

Water Week 2016 369,603

Water Week May 2015 24,069

WSP Global Knowledge GPT 91,040

WSP knowledge management 31,544

World Total 6,718,670

Global Total 6,929,287PPM 3,629,383

Other 1,227,075

GRAND TOTAL 39,958,394


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World bank/Water and Sanitation Program1818 H Street, N.W.Washington D.C. 20433,United States of America

Telephone: (1-202) 4735977Telefax: (1-202) 5223313, 5223228E-mail: [email protected]

Water and Sanitation ProgramDelta Center, Menengai Road,Upper Hill, P. O. Box 30577–00100,Nairobi, Kenya

Telephone: (254-20) 2936000Office cellphone: (254) 719 057000, (254) 730 176000Fax: (254-20) 2936382E-mail: [email protected]

Water and Sanitation ProgramWorld Bank Office JakartaIndonesia Stock Exchange BuildingTower 1, 9th Floor,Jl. Jend. Sudirman Kav. 52-53,Jakarta 12190, Indonesia

Telephone: (62-21) 52993003Telefax: (62-21) 52993004E-mail: [email protected]

Water and Sanitation ProgramThe World BankHT House, 18-20Kasturba Gandhi Marg,New Delhi 110001, IndiaTelephone: (91-11) 41479301, 49247601E-mail: [email protected]

Water and Sanitation ProgramThe World BankWorld Bank Office, LimaAlvarez Calderón N. 185San Isidro, Lima 27, Perú

Telephone: (51-1) 6222385Telefax: (51-1) 6222319E-mail: [email protected]

www.wsp.org l worldbank.org/water