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Sustainable Water and Sanitation in Africa (Suwasa) Final Report September 30, 2009–September 29, 2015

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Sustainable Water and Sanitation in Africa (Suwasa) Final Report September 30, 2009–September 29, 2015 FP SUSTAINABLE WATER AND SANITATION IN AFRICA (SUWASA) FINAL REPORT SEPTEMBER 30, 2009–SEPTEMBER 29, 2015 NOVEMBER 2015 This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech. This report was prepared with support from the United States Agency for International Development (USAID), under Contract No. AID-EPP-I-04-04-00019, Task Order No. 4: Sustainable Water and Sanitation in Africa (SUWASA). Implemented by: Tetra Tech ARD 159 Bank Street, Suite 300 Burlington, VT 05401 USA Tel: (802) 495-0282 Fax: (802) 658-4247 Website: www.usaid-suwasa.org Cover Photo: SUWASA SUSTAINABLE WATER AND SANITATION IN AFRICA (SUWASA) FINAL REPORT SEPTEMBER 30, 2009–SEPTEMBER 29, 2015 NOVEMBER 2015 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. TABLE OF CONTENTS LIST OF FIGURES AND TABLES .............................................................................................III ACRONYMS AND ABBREVIATIONS ....................................................................................... V EXECUTIVE SUMMARY ......................................................................................................... VII 1.0 BACKGROUND AND OBJECTIVES ............................................................................... 1 1.1 URBAN WATER AND SANITATION CHALLENGES IN SUB-SAHARAN AFRICA ADDRESSED BY SUWASA ................................................................................................................... 1 1.1.1 The Challenge of Improving Overall Sector Policy, Institutional, and Legal Framework ..................................................................................................... 2 1.1.2 The Challenge of Improving Regulation, Governance, and Accountability ...... 3 1.1.3 The Challenge of Utility Reforms .................................................................... 4 1.1.4 The Challenge of Financial Sustainability ....................................................... 4 1.1.5 Urban Sanitation: A Challenge for African Cities ............................................ 6 1.2 OVERALL SUWASA OBJECTIVES AND PRINCIPLES ...................................................... 6 1.3 IMPLEMENTATION APPROACH ..................................................................................... 7 1.3.1 Sector Reforms: Support for Increased Autonomy and Accountability ............ 8 1.3.2 Regulatory Reforms: Establishing and Strengthening of Regulatory Agencies 8 1.3.3 Commercial Financing: Building Linkages for Private Sector Finance ............ 8 1.3.4 Utility Reforms: Support for Increased Performance and Customer Orientation...................................................................................................... 9 1.3.5 Sanitation Reforms: Citywide Approaches to FSM and Investment Planning .. 9 1.4 PROJECT IDENTIFICATION AND SELECTION PROCESS .................................................. 9 1.5 KEY IMPLEMENTATION PARTNERS AND STAFFING .......................................................11 2.0 REFORM PROJECTS .....................................................................................................14 2.1 ETHIOPIA: WATER AND SANITATION SERVICES IN HAWASSA TOWN ..............................14 2.2 KENYA: INNOVATIVE FINANCING FOR THE URBAN WATER SECTOR ..............................18 2.2.1 Kisumu, Kenya: Financing Household Connections to Increase Access to Safe Water ....................................................................................................19 2.2.2 Nakuru, Kenya: Financing Pre-Paid Meters to Improve the Quality of Service ..........................................................................................................21 2.2.3 Kenya II: Innovative Financing for the Urban Water Sector ...........................23 2.3 LIBERIA: SUPPORT FOR ECONOMIC REGULATION OF THE WATER SECTOR ...................28 2.4 MOZAMBIQUE: LICENSING AND REGULATING PRIVATE WATER OPERATORS .................31 2.5 NIGERIA: EBONYI, BAUCHI, AND RIVERS STATE REFORMS ...........................................34 2.5.1 Ebonyi, Nigeria: Water Sector Reform ...........................................................34 2.5.2 Bauchi, Nigeria: Reform of the Urban Water Sector ......................................39 2.5.3 Rivers, Nigeria: Rivers State Water Sector Reform .......................................43 2.6 SENEGAL: SANITATION FOR THE URBAN POOR ...........................................................47 SUWASA FINAL REPORT: SEPTEMBER 30, 2009–SEPTEMBER 29, 2015 i 2.7 SOUTH SUDAN: REFORMING THE URBAN WATER AND SANITATION SECTORS ...............50 2.8 UGANDA: ECONOMIC REGULATION OF URBAN WATER SERVICES ................................56 2.9 ZAMBIA: COST RECOVERY FOR URBAN WATER SERVICES ..........................................59 3.0 LESSONS LEARNED .....................................................................................................63 3.1 POLICY REFORMS TO INSTITUTIONALIZE ACCOUNTABILITY AND AUTONOMY OF SERVICE PROVIDERS ARE CRITICAL, BUT REQUIRE STRONG LOCAL POLITICAL LEADERSHIP TO SUCCEED .................................................................................................................63 3.2 ESTABLISHING REGULATORY BODIES IS A PARTICULARLY CONTENTIOUS AND LENGTHY POLITICAL PROCESS .................................................................................................63 3.3 TARGET REFORM INTERVENTIONS WITH THE PERFORMANCE PATHWAY FOR WATER UTILITIES .................................................................................................................64 3.4 WATER OPERATOR PARTNERSHIPS ASSIST IN JUMPSTARTING OPERATIONS IN FRAGILE ENVIRONMENTS ..........................................................................................65 3.5 INFORMATION AND COMMUNICATION TECHNOLOGY CAN HELP FILL SECTOR INFORMATION GAPS .................................................................................................65 3.6 THE PRIVATE SECTOR CAN PLAY A VITAL ROLE IN FILLING SERVICE GAPS UNDER AN EFFECTIVE REGULATORY FRAMEWORK .......................................................................65 3.7 COMMERCIAL FINANCING FOR WATER UTILITY INFRASTRUCTURE REQUIRES SIGNIFICANT ENABLING ENVIRONMENT AND MARKET PRECONDITIONS ...........................66 3.8 UNCLEAR INSTITUTIONAL RESPONSIBILITIES AND SIGNIFICANT CAPACITY GAPS HINDER PROGRESS ON URBAN SANITATION ...........................................................................67 3.9 LOCAL WASH SYSTEMS CAN BE ADVANCED IN FRAGILE ENVIRONMENTS IS POSSIBLE BUT REQUIRES FLEXIBILITY ........................................................................................67 3.10 SMALL INVESTMENTS CAN LEVERAGE TECHNICAL ASSISTANCE TO INSTITUTIONAL REFORM EFFORTS ...................................................................................................68 3.11 GENDER EQUITY REMAINS A CRITICAL CHALLENGE .....................................................68 4.0 PROMOTION OF BEST PRACTICES .............................................................................69 4.1 KNOWLEDGE PRODUCTS AND SHARING .....................................................................69 4.1.1 International and Regional Conferences ........................................................70 4.1.2 SUWASA Knowledge Forum .........................................................................72 5.0 M&E INDICATORS AND TARGETS ...............................................................................73 5.1 SUMMARY OF SUWASA PERFORMANCE INDICATORS ................................................73 5.2 ANALYSIS OF PERFORMANCE RESULTS ......................................................................73 6.0 FINANCIAL SUMMARY ..................................................................................................78 ANNEX I: TECHNICAL AND M&E REPORTS ........................................................................ I-1 ANNEX II: PERFORMANCE PATHWAY FOR WATER UTILITIES ........................................ II-1 ANNEX III: CITYWIDE APPROACH FOR SANITATION ....................................................... III-1 ANNEX IV: SUWASA COMMUNICATION DOCUMENTS ..................................................... IV-1 ii SUWASA FINAL REPORT: SEPTEMBER 30, 2009–SEPTEMBER 29, 2015 LIST OF FIGURES AND TABLES Figure 1. SUWASA ACTIVITIES MAP ...................................................................................... vii Figure 2. THE VICIOUS SPIRAL OF PERFORMANCE DECLINE OF UTILITIES ...................... 2 Figure 3. SUWASA STAFF ORGANIGRAM (MARCH 2014) .....................................................12 Figure 4. SUWASA FIELD SUPPORT DIAGRAM .....................................................................12 Table 1. SUWASA RESULTS AND ACHIEVEMENTS ............................................................. viii Table 2. SUWASA PROGRAM PERFORMANCE INDICATOR TARGETS .............................. xiii Table 3. CORE PRINCIPLES PROMOTED BY SUWASA ......................................................... 7 Table 4. SUWASA REFORM INITIATIVES ...............................................................................10 Table 5. SUWASA IMPLEMENTING ORGANIZATIONS ..........................................................11 Table 6. NEW TARIFF STRUCTURE FOR HTWSSSE .............................................................15 Table 7. PROJECT
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