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Water Supply and Sanitation in Timor-Leste

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Water Supply and Sanitation in Timor-Leste Service Delivery Assessment April 2015 Water Supply and Sanitation in Timor-Leste Turning Finance into Services for the Future This report is the product of extensive collaboration and information sharing between many government agencies, and Timor-Leste organizations. The National Directorate of Basic Sanitation, National Directorate for Water, Ministry of Health, Australian Government Department of Foreign Affairs and Trade (formerly AusAID) BESIK Water Supply and Sanitation Program, and Asian Development Bank have been key partners, together with the Water and Sanitation Program, in analyz- ing the sector. The authors acknowledge the valuable contributions made by the World Bank Country Management Unit, WaterAid, UNICEF, Japan International Cooperation Agency, Cruz Vermelha de Timor-Leste (Red Cross), and National De- velopment Agency. The Task Team Leader for the Service Delivery Assessment (SDA) in East Asia and the Pacific is Susanna Smets. The fol- lowing World Bank staff and consultants have contributed to the service delivery assessment process and report: Isabel Blackett, Penny Dutton, Sandra Giltner, Arlindo Marcal, Rosalyn Fernandes, Joao dos Martires, Maria Madeira, and Almud Weitz. The report was reviewed by Alex Grumbley, Country Representative, WaterAid Timor-Leste and Keryn Clark, Program Director, BESIK Water Supply and Sanitation Program Timor-Leste. The report was peer reviewed by the following World Bank staff and sector colleagues: Michel Kerf, Sector Manager; Shyam KC, Disaster Risk Management Specialist; Lilian Pena Pereira Weiss, Senior Water and Sanitation Specialist; Ansye Sopacua, Sanitation Advisor, BESIK Water Supply and Sanitation Program; and Allison Woodruff, Urban Development Specialist, Asian Development Bank. Thanks go to Luis Constantino, Timor-Leste Country Manager; Towfiqua Hoque, Senior Infrastructure Specialist; and Alexander Jett, Research Analyst for providing comments to the report. The SDA was carried out under the guidance of the World Bank’s Wa ter and Sanitation Program and local partners. This re- gional work, implemented through a country-led process, draws on the experience of water and sanitation SDAs conducted in more than 40 countries in Africa, Latin America, and South Asia. An SDA analysis has three main components: a review of past water and sanitation access, a costing model to as sess the ad- equacy of future investments, and a scorecard that allows diagnosis of bottlenecks along the service de livery pathways. SDA’s contribution is to answer not only whether past trends and future finance are sufficient to meet sector targets for infrastructure and hardware but also what specific issues need to be addressed to ensure that fi nance is effectively turned into accelerated and sustainable water supply and sanitation service delivery. The Water and Sanitation Program is a multi-donor partnership, part of the World Bank Group’s Water Global Practice, sup- porting poor people in obtaining affordable, safe, and sustainable access to water and sanitation services. WSP’s donors include Australia, Austria, Denmark, Finland, France, the Bill & Melinda Gates Foundation, Luxembourg, Netherlands, Nor- way, Sweden, Switzerland, United Kingdom, United States, and the World Bank. WSP reports are published to communicate the results of WSP’s work to the development community. Some sources cited may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed herein are entirely those of the author and should not be attributed to the World Bank or its affiliated organizations, or to members of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The bound- aries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to world- [email protected]. WSP encourages the dissemination of its work and will normally grant permission promptly. For more information, please visit www.wsp.org. © 2015 International Bank for Reconstruction and Development/The World Bank Water Supply and Sanitation in Timor-Leste Turning Finance into Services for the Future Strategic Overview In the Democratic Republic of Timor-Leste, remarkable subsector targets, and relatively clear institutional roles. progress in water supply and sanitation coverage in the last Structures and processes are in place for ministerial bud- 10 years means that the country may meet Millennium De- get preparation, however budgets for urban and rural water velopment Goal targets for overall water supply coverage supply and urban sanitation are unpredictable and fluctuate but is unlikely to do so for sanitation. These targets are for considerably from year to year, and are almost non-existent 78% of the population to have access to improved drinking for rural sanitation. For ‘developing’ services, which relate to water sources, and for 60% to have access to improved expenditure of funds, systems for allocating them equitably, sanitation facilities. The latest figures from the Joint Moni- and securing value-for-money outputs, Timor-Leste needs toring Programme (JMP) of WHO and UNICEF indicate that to improve in the areas of prioritizing budget allocation, in 2011 access was 69% for water and 39% for sanitation. budget execution for major capital works, and reporting on For urban areas these targets have been met or exceeded, expenditure as well as reducing inequality and improving lo- but for rural areas where close to 70% of the country’s pop- cal participation. At the end of the service delivery pathway, ulation lives—many in small remote communities—these Timor-Leste’s scores show poor performance in sustainabil- targets remain out of reach, particularly for sanitation. Rural ity for all subsectors, especially in the area of maintenance. residents account for 92% of the 358,000 people nationally that do not have access to improved water supply, while ru- The key bottlenecks that currently impede progress in ral residents make up 86% of the 704,000 people nationally Timor-Leste’s water and sanitation sector mainly relate to without access to an improved toilet.1 Timor-Leste also has institutional capacity and absence of technical support ser- one of the highest population growth rates in the region at vices, accountability and incentives for sustaining services. 2.4% per annum. If Timor-Leste is to meet its Strategic De- There is a lack of funding to pay for water supply operations velopment Plan vision for 2030—which aims for all citizens and maintenance, including no user fees charged in the ur- to have access to clean water and improved sanitation— ban sector and no clear strategy to effectively support op- then current efforts in sanitation, particularly in rural areas, erations and maintenance in the rural sector. With improved will need to be more intensively supported and scaled up. operations and maintenance, water supply systems could With greater attention to maintenance of rural water sup- last longer, save on replacement costs, and be a more cost ply schemes, Timor-Leste can extend scheme life span and effective investment. Sanitation goods and services, water achieve the nation’s rural water supply targets. supply spare parts and repair services are difficult to obtain in rural areas. District level planning is not coordinated with The analysis of the service delivery pathway for water and all stakeholders. Support and communication from the na- sanitation shows that Timor-Leste performs adequately in tional level to district offices is erratic. Part of this problem the ‘enabling’ phase of service delivery across all subsec- is due to the budget, and administrative constraints and the tors due to the presence of policy guidelines, national and lack of autonomy and incentives the National Directorate 1 Calculated by authors from JMP coverage and population data iv Water Supply and Sanitation in Timor Leste for Water Services (DNSA) has as a government depart- million needed to reach the 2020 targets. There is little firm ment to respond to district operational needs, as well as evidence of intentions for capital spending on sanitation from the current lack of sanitation staff at district level. Both the either government or development partners. This is because water supply and sanitation sector have a shortage of hu- both urban and rural sanitation in Timor-Leste are overwhelm- man resources, especially skilled technical staff. Increased ingly on-site technologies and spending is expected by house- human resources such as community outreach workers are holds, rather than government and development partners. also needed to carry out sanitation promotion activities to motivate households to self-invest in improved sanitation For water supply, the estimated necessary capital expen- in rural areas. ditures amount to approximately 2.4% of the 2013 national budget of US$1.6 billion. Estimated operations and mainte- To achieve government-defined access targets to 2020 for nance costs are 0.4% of the 2013 budget. In the years 2010- water supply (87%) and sanitation (76%), an average of 2012, estimated recent public capital expenditures on water US$39.4 million each year
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