SUSTAINABLE SERVICES AT SCALE European Commission European Investment

SUSTAINABLE SERVICES AT SCALE European Commission – European Investment Bank Seminar Harold Lockwood Catarina Fonseca Christophe Nothomb Brussels June 30 2011

BACKGROUND TO TRIPLE-S AND WASHCOST § Triple-S: a six year research project 2009 – 2014 § WASHCost: a five year research project 2008 2013 § Both managed by IRC in collaboration with partners and both funded by BMGF as part of their WASH learning initiative §. . and both rooted in tackling long-term challenges of sustainable WASH service delivery WATER SERVICES THAT LAST … 2

MUCH EFFORT AND PROGRESS 1990 to MADE 2008: n Tens of billions of dollars invested n Evolving approaches: VLOM, community management, DRA, post-construction support coverage increased from 1. 59 to 2. 32 billion (JMP 2010) n Testing new elements: gender, supply chains, water resource protection WATER SERVICES THAT LAST … 3

BUT MANY CHALLENGES REMAIN n About 730 million still un-served (JMP 2010) 30% - 40% of hand pumps in Africa are not functioning n 88% of investment required for recurrent costs (GLAAS 2010) n Unacceptable failure rates n Waste of investments and health, dignity, well-being and livelihoods affected WATER SERVICES THAT LAST … 4

SO WHAT HAS GONE WRONG? 1. An obsession with coverage and building infrastructure at the scale of the community 2. Financing focused on initial construction and not lifetime costs 3. Lack of investment to improve overall sector capacity @Akvo WATER SERVICES THAT LAST … 5

SO WHAT HAS GONE WRONG? 4. Weak WASH sectors – lack of incentives, political influence and corruption (ignoring the political economy? ) 5. A donor-dominated, fragmented and competing sector WATER SERVICES THAT LAST … 6

INCREASING COVERAGE IS NOT THE WHOLE STORY Breakdowns, failures, nonfunctionality, slippage. . . a tipping point which is now a threat to achieving the MDGs? Build on current progress, but shift from implementation to service delivery WATER SERVICES THAT LAST … 7

THE SERVICE DELIVERY APPROACH Implementation approach Service Delivery Approach Implement Replace Upgrade Time Investment (capital expenditure) WATER SERVICES THAT LAST Investment (operational expenditure) Service level … 8

UNDERSTANDING THE REAL COSTS OF SERVICE DELIVERY § Capital expenditure: one-off investments in § § § hardware and software (Cap. Ex) Operational and minor maintenance Costs of capital expenditure: planned small repairs and maintenance (Op. Ex) Capital maintenance expenditure: large, lumpy rehabilitation and replacement Indirectcostsupport costs (Cap. Man. Ex) Direct support: regular support to communities and operators (Exp. DS) support Indirect support costs: policy development, Directcosts ministries (Exp. IDS) Costs of capital: interest on loans (Co. C) WATER SERVICES THAT LAST Capital expenditure Operational and minor maintenance expenditure Capital maintenance expenditure … 9

MAKING SUSTAINABLE SERVICES WORK AT SCALE § Shift focus from infrastructure to a service delivery perspective § Strengthen sector capacity at all levels for learning, innovation and internal policy development § Move from development partners working in isolation to improved harmonisation and alignment WATER SERVICES THAT LAST … 10

HOW TRIPLE-S WORKS § Working collaboratively and building on what already exists (‘ 80 - 20’ rule) § Always with and through national government leadership § Recognising the importance of the “A systemic approach is required to solve complex problems” political economy in change § Bringing and sharing lessons and documentation from outside § Leveraging investment resources WATER SERVICES THAT LAST … 11

HOW TRIPLE-S APPROACHES SECTOR CHANGE ANALYSING SECTOR PROBLEMS IDENTIFIYING POSSIBLE SOLUTIONS COLLABORATIVE REFLECTION AND LEARNING TAKING LEARNING TO SCALE WATER SERVICES THAT LAST Collectively analysing problems and challenges facing the sector at scale Collectively identifying potential gaps and solutions across the whole sector (taking a systemic approach) Action research and piloting to address the key bottlenecks and trigger issues at different levels Collectively applying learning and proven approaches at scale across different levels in the sector … 12

TRIPLE-S PRINCIPLES FRAMEWORK PRINCIPLES LEVELS OF INTERVENTION WATER SERVICES THAT LAST … 13

WORKING WITH PRINCIPLES FRAMEWORK § Inspiration and reflection – not prescriptive blueprint § Systemic tool that shows inter-connectivity of sector challenges and solutions § Can be used for analysis, planning and monitoring or evaluations WATER SERVICES THAT LAST … 14

WHAT DOES THIS MEAN IN PRACTICE? - SOME BASIC BUILDING BLOCKS Professionalising CBM: • Clarify policy & legislation Recognise alternative management models: • Separation of functions • Local private operators • Support business culture • Support to self-supply Learning and innovation: Capacity support: • Permanent support to learning (funding) • To service providers, including CBM • Creation of platforms at national and local levels • To decentralised local government WATER SERVICES THAT LAST … 15

WHAT DOES THIS MEAN IN PRACTICE? - SOME BASIC BUILDING BLOCKS Support to aid harmonisation: Monitoring service delivery: • SWAp • Measure services not just access • Funding mechanisms – basket, MTEFs Asset management: • Support performance mgt. • Clarify asset ownership Planning for life-cycle costs: • Updated asset inventories • Capital maintenance costs • Asset risk forecasting • Direct and indirect support costs WATER SERVICES THAT LAST … 16

TRIPLE-S IN GHANA § Sits in CWSA and key sector fora § Supports CWSA to strengthen sustainability of its investments (government, donors and loans) § Piloting and demonstrating new modalities – monitoring indicators, review of bye-laws, regulation etc. § Taking learning results to scale § Leveraging World Bank $75 million “CWSA is making a paradigm shift in its approach to rural water supply from focus on project to delivery of services. ” Chief Exec. CWSA loan WATER SERVICES THAT LAST … 17

HOW TRIPLE-S WORKS INTERNATIONALLY § Partnerships and coalitions – World Bank, WSP, USAID, Global Water Challenge (charter), RWSN § Research and documentation - 13 country study and building blocks series § Learning and training events in USA, Europe, Australia WATER SERVICES THAT LAST … 18

POTENTIAL COLLABORATION WITH EC - EIB § In country collaboration § Technical inputs and support e. . g JMP monitoring consultation in Berlin, Af. DB, IADB, RWSN vision § Training in Service Delivery Approach and Life-cycle costs § Joint documentation and dissemination WATER SERVICES THAT LAST … 19

WATER SERVICES THAT LAST www. waterservicesthatlast. org WATER SERVICES THAT LAST … 20