UNICEF – ADB Regional Workshop on the Role of

Non-State Providers in Basic Service Delivery

ADB HQ, Manila, Philippines
19-20 April 2010

Non-State Delivery of
Water and Sanitation Services:
Sharing Lessons Learned

Rudolf Frauendorfer
Asian Development Bank

The views expressed in this presentation are the views of the author(s) and do not necessarily reflect the views or policies of the Asian
Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality,
accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor
does it make any representation concerning the same.
 Water Supply and Sanitation Coverage
Water supply coverage – on track
Sanitation coverage – mixed results
More work needs to be done in Cambodia, Indonesia, Lao PDR,
Mongolia, Fiji, Kiribati, Papua New Guinea and Timor Leste.

While the progress in meeting quantitative targets is

significant and laudable, there are continuing concerns over
the quality of the services.
It is estimated that 90% of Asia’s wastewater is discharged untreated
– polluting groundwater, rivers and coasts.
 What needs to be done?
Create an enabling environment
Sanitation policies and plans
Institutional arrangement
Capacity development
Sustainable and affordable financing and
cost recovery mechanism
Increase awareness and
involve stakeholders
Hygiene and sanitation education in schools
Social marketing of sanitation
Working with communities: in planning,
financing, construction, operation and
management of facilities
 What needs to be done?
Increase investments
It is estimated
Allocate budget for sanitation that the annual
Promote partnership with the private costs of meeting
sector the 2015
sanitation target
Support small-scale providers and are about $7
entrepreneurs billion for
Increase public awareness and involve sanitation
stakeholders to stimulate demand facilities, and $53
billion for
Address affordability and sustainability
wastewater
issues
treatment.
Address administrative and legal
constraints
 What needs to be done?
Target the poor
Work with NSPs
Information, education
and capacity development
Participation of the poor in
planning, implementation
and monitoring
Partnership between the
local governments, poor
communities and NSPs
Innovative financing
approaches
Output-based aid:
Nepal, Philippines
Microfinancing:
Bangladesh, Philippines
Revolving fund: India
Viet Nam
 NSPs: Responding to Fill the Gap
Water NSPs
Informal private water providers
Small-scale independent providers and small water enterprises
Civil society organizations (NGOs, FBOs, CBOs) supporting
community-based management
PPP operators for water services

Sanitation NSPs
Small private providers – typically support household-level
services, such as construction of toilets, emptying pits,
desludging septic tanks, supplying component parts, etc.
Civil society organizations supporting community-based
management, sanitation promotion and marketing
PPP operators – typically large-scale urban water and
sewerage systems
NSPs: Responding to Fill the Gap
Engaging with stakeholders
Promotion, social marketing, advocacy, CLTS
Hygiene, sanitation and health education
Empowerment and capacity development
Community based solutions
Marketing low cost solutions

Providing technological options

Small piped network
Septage management
Decentralized wastewater treatment
Reuse of waste: ecosan toilets, biogas

Introducing innovative financing

 Issues and Actions
Issues Actions needed
Governance Government priority
Inclusion of NSPs in plans and strategies
Institutional support for NSPs
Coordination and collaboration between
central and local governments, public
utilities, NSPs and development agencies

Regulation Clear areas for NSP engagement

Contracts and permits
Performance standards
Tariff regulation
Water allocation rights
 Issues and Actions
Issues Actions needed
Effective service Performance monitoring and benchmarking
delivery Access to affordable and appropriate
technologies and delivery systems

Financial Accessible and affordable financing

mechanisms
Targeted subsidies
Flexible payment terms; socialized fee
structure
Capacity Business planning
development Tariff/user fee structuring
needs Technical
Knowledge on water resource protection
ADB’s Contribution
Technical assistance
Urban services for the poor
Pilot and demonstration activity
Financing models for small-scale water
providers (PHI)
Small-piped networks (PHI, IND, VIE)
Output-based aid
water supply connections and HH
latrines (NEP)
Lending
Private concessionaire (INO)
 Lessons Learned
Enabling environment
Stakeholder awareness and participation
Institution building
Partnerships among stakeholders
Commitment from users to contribute
financially
 Lessons Learned
Social marketing, community-led initiatives
Consideration of social aspects
Adequate support systems and capacity
development on technical, financial and
management options.
Provision of water supply and sanitation
services as an entry point for other
development initiatives.
Sanitation coverage in Asia is increasing
Quality of service still major concern
NSPs cover 10-50% of the population
Address institutional, legal and financial constraints
Successful WSS programs of NSP that can be
replicated and scaled up
Engage communities and partner with the private
sector to improve efficiency in service delivery
Support non-state providers to reach the uncovered
sectors, especially the poor
UNICEF – ADB Regional Workshop on the Role of
Non-State Providers in Basic Service Delivery
ADB HQ, Manila, Philippines
19-20 April 2010

THANK YOU

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