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(NAC) – National Water, Sanitation and Hygiene (WASH) Sector

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(NAC) – National Water, Sanitation and Hygiene (WASH) Sector Government of Zimbabwe National Action Committee (NAC) – National Water, Sanitation and Hygiene (WASH) Sector Zimbabwe WASH Sector Public Private Partnership (PPP) Framework Stakeholder Consultative Report On Documentation of Ongoing PPP Initiatives/Models in 8 districts August 2015 WASH Sector PPP Strategic Framework Field Report Page 1 Contents List of Tables ......................................................................................................................................... 2 1. Introduction ............................................................................................................................... - 3 - 2. Ongoing Financial Brokering and Supply Chain Financing Support Systems ................... - 3 - 2.1. WASH Inputs Manufactures ........................................................................................... - 4 - 2.2. WASH Inputs Wholesalers .............................................................................................. - 4 - 2.3. Local Dealers or Outlets ................................................................................................... - 5 - 2.4. Local WASH Service Providers i.e. Latrine Builders and Village Pump Mechanics . - 6 - 2.5. Consumers of WASH services – Communities and Households ................................... - 6 - 3. On-Going Business Models ...................................................................................................... - 6 - 4. Current PPP Enabling Factors .................................................................................................. 16 5. Key Sector Practices that Threatening Sustainable PPP Approaches ................................... 19 6. Proposed PPP Approaches Roll out Strategies ........................................................................ 22 7. PPP Approaches Marketing Themes ........................................................................................ 23 8. Current PPP Implementation Challenges ................................................................................ 24 9. PPP Business Case ...................................................................................................................... 26 List of Tables Table 1; PPP Business Models, Best Practices and Lessons Leant ........................................................................ 8 Table 2: Current District Specific Identified PPP Enabling Factors ..................................................................... 17 Table 3: PPP Inhibiting Sector Practices .............................................................................................................. 20 Table 4: PPP Roll Out Strategies .......................................................................................................................... 22 Table 5: PPP Marketing and Communication Thematic Areas ............................................................................ 23 Table 6: Current PPP Implementation Challenges ............................................................................................... 24 Figure 1: General PPP Enabling Factors ......................................................................................... 16 Figure 2: Overall PPP Roll Out Inhibiting Factor ........................................................................... 19 WASH Sector PPP Strategic Framework Field Report Page 2 1. Introduction This report is one of the key deliverable of the key deliverables of the step by step process of developing the WASH Sector Public Private Partnership Framework. Its overall objectives is to present a discussion on the findings from the stakeholder consultative process aimed at collecting stakeholder inputs and suggestions in the process of developing the WASH Sector PPP framework. It is important to note that this report is not part of the WASH Sector PP Framework but is a collection of stakeholder suggestions onto key supposed components of the WASH Sector PPP Framework. The collected stakeholder inputs will be subject to the Project Management Team (PMT) interrogation and appraisal for their viability and possible inclusion into the main WASH Sector PPP Framework. It is also important to note that other important aspects of the WASH Sector PPP Framework have already been attended to during the October 2014 stakeholder consultative workshop held in Harare. These key areas include: Discussion of the concept and different forms of PPP including the identification of the possible PPP model the Zimbabwe WASH Sector can possibly consider for adoption. Justification for adoption of the PPP approaches in the WASH sector in Zimbabwe. A SWOT analysis of the PPP approaches in the Zimbabwean WASH sector. Specifically this report intends to highlight findings from the stakeholder consultative process on the following issues. Assessment of the on-going financial brokering and support systems to all the WASH Supply chain players. Review ongoing district business models for the best practices and lessons learned. Review ongoing supply chain actors financing mechanisms for the best practices and lessons learnt (manufacturers, wholesalers, distributors.) Reviewing ongoing community based financing mechanisms for best practices and lessons learnt. Review best practices and lessons learnt from existing MOUs models in all local authorities and develop a generic model. It is also important to note that conclusion of this stage will lead to the implementation of the following planned processes: Participatory development of the PPP communication and information management strategy. Drafting and presentation of the PPP Strategic Framework. Finalization and presentation of the final WASH Sector PPP Strategic Framework. 2. Ongoing Financial Brokering and Supply Chain Financing Support Systems The assessment of on-going financial brokering or financial support services focused on the following key players along the WASH inputs supply chain: WASH inputs supply manufacturers. WASH Inputs wholesalers. Community based WASH Inputs retailers. Community based WASH outputs and services providers. These comprise the Latrine Builders and the Village Pump Mechanics (VPM). Households and communities as the final end-users or consumers of WASH inputs and services. WASH Sector PPP Strategic Framework Field Report Page - 3 - Field evidence also revealed that WASH inputs are largely seasonal and the development of the WASH Sector PPP Strategic Framework need to take this into account. WASH inputs are in higher demand during the off-agricultural season. The onset of the agricultural season means rural communities whose livelihoods are basically agriculture based will invest most of their time and household resources in agricultural activities. It was also established from field evidence that WASH inputs can be classified in two major categories based on their respective demand and consumption patterns i.e. fast and slow moving inputs. Fast moving inputs – these have shorter shelf life span and include multi-purpose inputs and they are largely used in construction of sanitation facilities key among them being cement, fly screen, reinforcement wire and of late especially in Zaka District plastic squatting pans. Their prices are also fairly low and can be accessed by most rural households and consumers. Slow moving inputs – these are mainly inputs that are used in construction, rehabilitation, operation and maintenance of water supplies/facilities. Once manufactured to standard and fitted correctly, these last long. These include leather cup, nuts and bolts and gauze wire. It is also important to note that wholesaler who traded in WASH related products classified these products as general hardware commodities. The need for WASH sector promotion of the WASH commodities to a level where they can be classified, viewed and traded as such cannot be overemphasized. 2.1. WASH Inputs Manufactures Currently there are no financial brokering or support systems that are targeted at manufacturer of WASH inputs in Zimbabwe. Field evidence indicated that there has been no efforts to develop any business linkages between the WASH inputs manufacturers with the exception of Bikita District that has made efforts to link V&W Engineering with the local dealers in the district. However, the linkages were never followed up to levels of establishing any concrete business linkage strategies or mechanisms. The initiative was abandoned at the introductory stages. It is also important to note that sector business linkages with the manufacturers were reported to be more pronounced at national level and Implementing Partners (IP) Head Office levels where direct bulk purchases of WASH inputs are done. However, the linkages are just limited to procurement and supply of WASH inputs and do not involve development of business relations that incorporate Public Private Partnership strategies. Proposals where that WASH inputs manufactures needs to develop business linkages with wholesalers that involve supply of WASH inputs on credit. Operations of credit lines will enable wholesalers to also on-supply to retailers on credit. It is important to note that operation of credit line are also in place for other goods. 2.2. WASH Inputs Wholesalers In all the districts visited wholesalers existed and operated from either the District main business centres (Growth Points or Towns &Cities). The following are some of the immediate examples: . In Makonde District, Stockday Hardware operates from Chinhoyi
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