This presentation was given at the 3rd IWA Development Congress "Catalysing Urban Water" which took place in Nairobi in October 2013. Sophie Trémolet presents a roadmap for designing urban sanitation projects. Targeted at donors, policy and decision makers, this roadmap guides the financing of urban sanitation from inception to implementation.

1. DELIVERING URBAN SANITATION AT
SCALE
A ROADMAP FOR DESIGNING URBAN
SANITATION PROJECTS
Sophie Trémolet, October 15th, 2013, Nairobi

2. A.
The urban sanitation challenge in low
and middle income countries

3. Diverse urban sanitation challenges in
SSA
3

4. 4
Urban sanitation : growing
challenges

Rapid urbanisation. By 2030, 6 out of every 10 people will live in a
city
Region
Annual urban population growth (WB database,
2011)
World
2.11 %
Sub-Saharan Africa
3.92 %
Middle East & North
Africa
2.43 %
East Asia & Pacific
2.60 %
South Asia
2.57 %
Latin America &
Caribbean
1.49 %
OECD members
1.06 %
Low income
3.7 %

Access gap is likely to grow in low income countries with rapid
urbanisation

The existing infrastructure is insufficiently maintained and rapidly

5. Who is paying for urban sanitation?
5


Insufficient sewerage charges – can barely cover
operating charges and almost never
On-site sanitation markets are inefficiently structured
and do not receive adequate support from the public
sector


In Dar Es Salaam, the Municipality spent only 0.3% of its budget on onsite sanitation in 2009 to serve a population of about 1 million. 99% of
public spending goes to sewerage, which served 10% of the population
(WaterAid, 2013)
Currently, the vast majority of urban sanitation
investments are funded through donor support, hence
the need for strengthening the quality of those
investments

6. 6
Donor allocations: a shift to
sanitation?

Donors’ commitments to sanitation went from 30% to
60% of total commitments to water sector in last two
years
Donors' commitment to WASH (USD
millions) OECD DAC database
3500
3000
2500
2000
1500
1000
500
0
2010
2011
Sanitation (basic and large systems)
Water (drinking water and large systems)

7. Ongoing emphasis on large systems
7

Donors’ investments still largely in large sanitation
systems – this share has been increasing in last 2 years
(OECD data)
1800
1600
1400
1200
1000
800
600
400
200
0
Large sanitation systems
Basic sanitation
2010
2011
All Donors, Total
2010
2011
2010
2011
DAC
Multilateral, Total
Countries, Total

8. B.
EIB / KFW / AFD Guidance document
An overview

9. A joint initiative on urban sanitation
9

Joint initiative between EIB, KfW and AFD to collaborate on the
design and implementation of urban sanitation projects, to share
methods and lessons

Collectively these agencies are involved in the design and
implementation of a variety of urban sanitation projects, at different
scales and in different areas


Jointly through the mutual reliance initiative


Through direct loans
With possibility of matching grant funds from the European Commission
They identified a lack of operational guidance documents for
urban sanitation planning for governments and development
banks

Existing guidance often takes a micro-planning view of the market, some
of them at a community level

“Master plans" produced by international consultants are often too

10. Guidance document - overview
10

Key features

Objective: help formulate better decisions for designing sanitation
investments in urban areas in low and middle-income countries

Target audience: primarily aimed at governments and development
banks designing urban sanitation investments

Integrated approach to urban sanitation: focus on “urban sanitation
systems”


All types of sanitation (domestic use but also taking account of industrial uses)


Areas that make up the “urban continuum”, based on population density
criteria
Other related sectors (such as water) are to be dealt with in conjunction
Sets out a roadmap for designing sanitation
projects/programmes:

Carry out a diagnostic of existing sanitation services in a given area
with urban characteristics

Design sanitation interventions that tackle identified challenges in a
sustainable manner

11. Learning from diverse experiences
11
Nationa
l level
Rura
l
area
s
Small
town
s
Medium
towns
Geographical
Focus
Ghana
ONAS
(Tunisia)
Morocco
Albania
Batumi
(Georgia)
Blantyre
Larg EU city/regionalisation projects
Kisumu
e.g. Portugal/Italy
(Malawi )
e
(Kenya)
Bizerte (Tunisia)
town
s
Lilongwe
Maseru (Lesotho)
Rwanda (Kigali)
Capital
Kampala
Bamako (Mali) Ouagadougou Type of
city
investmen
ts
Large sewerage
Both
On-site sanitation
systems/ infrastructure

12. Some practical challenges
12

How do you get municipal governments to focus on
addressing sanitation issues?


How do you select what to invest in?


E.g. in most EECCA countries, responsibilities for sanitation have
been devolved to local governments, which are grossly
underfunded and under-prioritising sanitation
e.g. Kigali (Rwanda) has no sewerage system but needs are
primarily in the dense urban center to support economic growth:
do you invest in sewerage or on-site sanitation systems?
How do you convince users to invest in sewerage
connections, particularly when they have recently made
investments in on-site sanitation solutions?

13. A step-by-step roadmap
13
Step 0 – Rapid Assessment and definition of project concept
Step 1 - Diagnostic: What sanitation challenges can the project address?
1.2 Understand the demand side of the
1.1 Assess the policy, institutional
sanitation market
and regulatory frameworks
What is the current sanitation
situation in the project area?
1.3 Understand the supply side of
1.4 Understand current sector
the sanitation market
financing and assess financing needs
1.5 Identify critical issues and prioritize interventions
Output 1 - Assessment report

14. A step-by-step roadmap (2)
14
Step 2 – Design: What will the sanitation project do?
2.1 Identify the appropriate geographical scope for the intervention
2.2 Define the project's activities, including technological and service provision options
2.3 Identify the appropriate service provider(s) and the support they need
2.4 Define a sustainable financing strategy for the project’s activities
2.5 Set up institutional arrangements to implement the project
2.6 Identify and design any associated sector reforms
Output 2 - Project design document
Step 3 – Implementation: How will the sanitation project be carried out?
3.1 Draw up a budget and an investment, operation and financing plan
3.2 Conduct the financial and economic analysis of the proposed activities
3.3 Carry out an environmental and social impact assessment of the proposed options
3.4 Define institutional & contractual arrangements, including procurement plan
3.5 Define a Monitoring and Evaluation framework
Output 3 – Project documentation

15. The “toolbox”
15

Two types of tools
 Diagnostic/ analysis tools
 Information fiches on key thematic subjects

A few examples
 Analysis of key drivers for sanitation sector reform
 Spreadsheet for capturing key sanitation sector characteristics
and estimating flows by types of waste streams
 Analysis of sanitation market structure and possibilities for reform
 Ways to involve NGOs: sample TORs?
 Methodological “fact sheet” to conduct the economic evaluation
of sanitation investments

16. Some key messages – Diagnostic
phase
16

Base the design of the project / programme on a Master
plan




Where existing sewerage coverage is limited, combine
network-based investments with investments in nonnetwork systems




At national level, as in Albania (KfW project )
At city-level (EIB in Kigali, AFD / KfW in Bamako)
If such Master Plan does not already exist, identify sources of support
for its development
In some cases network systems take precedence (Kigali) or
modest investments in on-site (Lesotho)
Allocate funding for strengthening public development of on-site
sanitation systems (Bamako)
Place exclusive focus on on-site sanitation (Ghana)
Understand current sector market structure and how
reforms could be introduced: to reduce costs, improve
efficiency or enable cross-subsidies

17. Key messages – Design &
implementation
17

Identify suitable partners based on a thorough institutional assessment
 To provide technical assistance and support: utilities can have a key role to
play in this area (Burundi)
 To support non-network interventions investments: EIB engaged NGOs in
Malawi (Water for People and WaterAid) to deliver services in urban slums
 To channel funding for microfinance: EIB and Gates Foundation to channel
funding to rural banks via ARB Apex Bank in Ghana

Involve multiple funding partners to blend financing
 Grant funds for capacity development or innovative aspects (Ghana)
 Loan funding from development banks (although repayment might be an issue
where there is no utility)

To build political will and support, provide performance-based financing and
sequence investments once a number of milestones are reached
 Municipal service agreements (used by KfW in Serbia, Montenegro, Bosnia)
identify milestones to be met by municipalities to obtain further programmatic
support
 Performance-based financing for District Assemblies and stimuli for innovation
(Ghana)

Do not neglect the “programme operational design phase” - this can be prove

18. C.
Using the tools: design of the SAWiSTRA
programme in Ghana funded by EIB /
AFD

19. Ghana’s Sanitation Challenges
19

Sanitation coverage rate
amongst the lowest in SubSaharan Africa

Prevalence of open defecation
, shared toilets; no network
solutions, no fecal sludge
management

Decentralised sector with very
limited capacities at local level

Evolving allocation of
responsibilities with leading
“facilitation institution” (CWSA)
for small towns and rural areas

20. EIB’s support for WASH in Ghana
20

Contribute to achieve MDG target for sanitation

Support government strategy for scaling up sustainable
services in small towns / rural areas

Align with evolving institutional setup (increased
decentralisation)

Ensure efficient implementation and long-term
sustainability (focus on outcomes)

Support ongoing sector coordination activities

21. Programme Concept - Objectives
21

Objective 1:
 Develop a programmatic approach to
implement sustainable WASH
schemes at scale in small towns and
rural areas
 Align with ongoing sector development
and support sector coordination

Objective 2: Increase access to water
supply in rural areas and small towns

Objective 3: Increase access to
sanitation in rural areas and small towns
and build WASH facilities in
schools, health centres and community
toilet blocks as appropriate

Objective 4: Implement appropriate
systems and build capacity to ensure
Programme sustainability

22. Applying the diagnostic tool to identify
Challenges for design & implementation
22




National Strategy focused on “CLTS+”  tailor
implementation to different towns / communities
Evolving institutional setup  balance decentralised
decision-making with coordinated implementation at
national level
Scaling-up  identify appropriate sources of finance and
ways to channel large amounts of finance to the
appropriate beneficiaries
Ensure sustainable outcomes  result-based financing
and monitoring mechanisms

23. 23
Applying the diagnostic tool in
Ghana
Step 0 – Rapid Assessment and definition of project concept: intervene
in small towns and rural areas and implement new sector strategy
Step 1 - Diagnostic: What sanitation challenges can the project address?
1.1 Policy / institutional assessment:
• Strategy: Tailor CLTS + for specific needs
• Decentralisation 
capacity challenges
1.2 Demand assessment:
• Variety of situations between small towns
and rural areas
What is the current sanitation
situation in the project area?
1.3 Supply analysis:
Limited supply response, needs
strengthening, no faecal sludge management
1.4 Sector Financing:
Most financing still channelled through
CWSA, despite decentralisation policy
1.5 Critical issues:
create political will at various levels of government, adopt a package of interventions implemented by
different actors at different levels, facilitate involvement of communities, capitalise on existing
institutional arrangements (CWSA), blend funding appropriately, identify financing channels
Output 1 - Assessment report

24. 24
Step 1: Understanding needs to
tailor activities

25. Moving towards implementation
25
Step 2 – Design: What will the sanitation project do?
2.1 Decision to focus on small towns and rural areas
2.2 Support for on-site sanitation combined with (limited) facal sludge management
2.3 Mix of service providers: for planning, facilitation, design and implementation
2.4 Mix of financing sources, including support for household investment via microfinance
2.5 Rely on existing institutional arrangements
2.6 No immediate sector reform needs were identified
Output 2 - Project design document
Step 3 – Implementation: How will the sanitation project be carried out?
3.1 Define budget, investment, operation and financing plan (appropriate fin. sources)
3.2 Conduct the financial and economic analysis of the proposed activities
3.3 Carry out an environmental and social impact assessment of the proposed options
3.4 Define financial flows, institutional & contractual arrangements (procurement plan )
3.5 Define a Monitoring and Evaluation framework
Output 3 – Project documentation

26. 26
Defining institutional setup Balancing local vs. central actors’
roles

27. Defining financial flows:
Channeling financing to micro-actors
27

28. 28
Lessons learned:
How the Guidance document can
help





Flexible enough to be applied across the value chain –
applicability in rural areas / small towns
Can support phases of decision-making from project
identification to design to implementation
Helped translate national strategy into practice and
design tailored solutions
Helped identify interfaces to improve governance and
implementation
Helped optimise funding, including result-based

29. Next steps
29


Estimated publication date: early 2014
Ongoing learning process: much remains to be
learned in the optimal design of urban
sanitation projects and programmes

30. 30
Thank you for your attention!
Sophie@tremolet.com