Financing Local Governance for Sustainable WatSan Service Delivery: HYSAWA Model


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WASH 2011 conference: Enamul Kabir & Mahmudul Ahsan, HYSAWA & AusAID, Bangladesh

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Financing Local Governance for Sustainable WatSan Service Delivery: HYSAWA Model

  1. 1. Financing Local Governance for Sustainable WatSan Service Delivery: HYSAWA Model <br />Enamul Kabir & Mahmudul Ahsan<br />HYSAWA & AusAID, Bangladesh<br />
  2. 2. Bangladesh: Key facts and Figures <br />Population 160 Millions<br />4500 Union Councils – Average population 25000;<br />Relies on central Government and ADP for finance;<br />200 old institutions but week capacity;<br />Nationally, water access 50%(?)*<br />Sanitation coverage 51.5*;<br />Historically, WatSan service delivery and financing by Central GOB departments (DPHE, LGED); *Bangladesh Improved Standard<br />
  3. 3. HYSAWA: Key facts and Figures <br />GOB, Danida and Australian AID collaborating to supporting HYSAWA Fund; Born in 2007<br />Autonomous, non-profit financial Institution; <br />Guided by a Board, Chaired by Secretary LG Division;<br />Testing out a model of decentralized, demand-driven WatSan service delivery by Local Government Institutions;<br />An instance of PPP model (Loose) at the lowest tier of LGIs;<br />700 Union Councils (15% of total UP as sample)<br />Financial and managerial authorities delegated to LGIs;<br />
  4. 4. Goal & Developmental Objectives<br />‘To contribute to the GOB’s policy to reduce poverty through improved and sustainable public health and environment and to reach the MDG for WATSAN<br />‘To develop and demonstrate a model of sustainable hygiene, sanitation and water supply service delivery through LGIs in consultation with local people’.<br />
  5. 5. Immediate objectives<br />WATSAN objectives<br />Improve hygiene behaviour and practices;<br />Promote community-led total sanitation;<br />Increase coverage of safe water supply <br />LGI empowerment and capacity building objectives;<br /><ul><li>Strengthen the capacity of LGIs and other stakes;
  6. 6. Promote greater devolution of administration and financial authority to LGIs</li></li></ul><li>Why LGI?<br />A permanent Institution;<br />GoB political, constitutional , MDG and PRSP commitments and obligation to develop LGIs;<br />Led by Local leadership;<br />People still depend on them;<br />Week institutions but have potential for further development and empowerment;<br />Low overheads and relatively low pilferage;<br />
  7. 7. P-NGO<br />UC<br />SO <br />and <br />Training<br />HYSAWA<br />CDF Formation, Scheme/CLTS planning, implementation<br />Service providers<br />(contractors)<br />HYSAWA Approach with LGIs<br />CDF (Community)<br />
  8. 8. Strategies towards Sustainability<br />Capacity building & Hands-on support (WatSan planning, Governance, Procurement and Finance Management) <br />Demand responsive financing;<br />Financial and Management authority to LGIs<br />Promoting participation: Community & UC level<br />Promoting user-pay principle but “Safety net”;<br />Promoting systems and tools for Transparency and Accountability;<br />Simple technology – easy and affordable O&M;<br />Program Approach and Technology invites PPP; <br />
  9. 9. Key learning:<br /><ul><li>LGIs can effectively manage WatSan projects, However:
  10. 10. Capacity building needs to Continue
  11. 11. LGIs will have to depend on the grants From the central government & DPs;
  12. 12. To reduce dependency, they need to identify and generate their own income;
  13. 13. Allowed to retain and use income locally;</li></li></ul><li>Potentials for Financial Sustainability<br />Budget US$30 million – community US$10 million; <br />100% Household Latrines worth US$8 million;<br />10-20% WatSan Infrastructure cost US$2 million plus land;<br />Large schemes leased out to private party;<br />Connection fee & monthly water tariff for Pipe;<br />100% O&M cost for small schemes;<br />User fee for Public Toilets;<br />LGI overheads is low<br />
  14. 14. Financial Sustainability: What should LGI do<br /><ul><li>Identify and generate its own resources;
  15. 15. local tax collection - gain people’s trust
  16. 16. hypothecated tax for services people like;
  17. 17. Leasing out infrastructure, market places
  18. 18. Attract GOB and DPs’ attention by demonstrating:
  19. 19. effective leadership and long-term plan
  20. 20. efficient use of resources;
  21. 21. good governance; </li></li></ul><li>Financial Sustainability: What should LGIs do<br /><ul><li>Participatory planning with communities to identify needs & plan, women & poor particularly:
  22. 22. Apply cost sharing principle – Ownership!
  23. 23. on a sliding scale;
  24. 24. Simple technology, affordable and easy O&M;
  25. 25. Lease-out large technology for O&M
  26. 26. Explore PPP, especially expensive for technos;
  27. 27. Back-ups left in the Community:
  28. 28. Community/ users’ skills training
  29. 29. Volunteers and mechanics </li></li></ul><li>What central government should do for LGI Sustainability<br /><ul><li>Decentralize & Empower: core administrative and management functions – not just project function;
  30. 30. continue to build LGI capacities: both staff and competency – hands-on essential;
  31. 31. increase resource allocation for development projects – MDG/ PRSP commitment;
  32. 32. Allow LGI to diversify and retain local income;
  33. 33. Provide supportive supervision.</li></li></ul><li>Thank<br />