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Financing Local Governance for Sustainable WatSan Service Delivery: HYSAWA Model
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Financing Local Governance for Sustainable WatSan Service Delivery: HYSAWA Model

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

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

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Financing Local Governance for Sustainable WatSan Service Delivery: HYSAWA Model Financing Local Governance for Sustainable WatSan Service Delivery: HYSAWA Model Presentation Transcript

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