ACCESS TO SAFE WATER FOR THE BASE OF THE PYRAMID SEPTEMBER 2011 LESSONS LEARNED FROM 15 CASE STUDIES In collaboration with: Sponsored by: …if we stOP THINKING OF THE POOR AS VICTIMS OR AS A BURDEN AND START RECOGNIZING THEM“ AS RESILIENT AND CREATIVE ENTREPRENEURS AND VALUE-CONSCIOUS CONSUMERS, A WHOLE NEW WORLD OF OPPORTUNITY WILL OPEN UP. C.K. Prahalad ” Professor and author of the concept of the Bottom of the Pyramid The people’s moTIVATION AND THEIR ENTHUSIASM AT THE SIGHT OF WATER RISING FROM THE EARTH “ IS AN EXPERIENCE IMPOSSIBLE TO DESCRIBE. Boubacar Macina” Co-founder and Manager of 2AEP ACKNOWLEDGEMENTS The authors would like to thank the social entrepreneurs who shared their innovative work, the leaders within corporations and NGOs who carved the space for something new, and the experts who contributed insights over the course of this study. Your support and commitment are deeply appreciated. CASE STUDIES 2AEP: Boubacar Macina, Denis Desille, Daniel Faggianelli AGUATUYA: Marie Claude, Arteaga, José Antonio Becerra, Gustavo Heredia, Renato Montoya, Carolina Patiño, Fredy Rojas Balibago: Jayson Anselmo, Allam Kahil, Cristino Panlilio, Alfredo Salinda Healthpoint Services E-Health Points: Amit Jain Hindustan Unilever: Deepak Saksena Hydrologic: Olaf Evjen Olsen Inter Aide/ Baseda: Olivier Celaries, John Chimukho, Mr. Nkhalamu, Fabrice Vandeputte IWADCO: Elsa D. Mejia Manila Water: Gerry Ablaza, Lia Marie Guerrero Naandi Water: Adrien Couton, Manoj Kumar, Rao S. Nageswara PSI Kenya: Mbogo Bunyi, Daun Fest, Gerishon Gachoki, Cecilia Kwak, Ashley Latimer, James Makiri, Wanjiru Mathenge, Isaac Onyonyi Sarvajal: Priyanka Chopra, Sameer Kalwani, Anand Shah, Anuj Sharma, Jay Subramanian Sénégalaise des Eaux: Abdul Ball, Mamadou Dia, Aladji Dieng, Waly Ndour, M. Ngningue (Direction de la Maintenance du Ministère de l’Hydraulique), Cheikh Tidiane Fall Suez Environnement PALYJA: Philippe Folliasson, Vincent Fournier Tinkisso/ Antenna: Carole de Bazignan, Julie Bergamin, Aboubacar Camara Veolia Environnement Redal and Amendis: Xavier Joseph, Olivier Gilbert, Thomas Hascoet PROJECT GUIDANCE FROM CONSORTIUM MEMBERS Fadila Belmounes, Maurice Bernard, Aymeric Blanc and Janique Etienne (AFD), Sjef Ernes (Aqua for All), Taco De Nies (BoP Innovation Center), Sonny Bardhan and Colin Buckley (CIFF), Mamadou Dia and Eric Tauziac (Finagestion), Marc Ter Haar (Norit), Jean-Pierre Barral and Alan Follmar (Proparco), Sandra Cats (PvW3), Arjen Nauta (PWN Technologies), Myriam Bincaille, Alexandre Brailowsky, Solenne de Gromard, Pascale Guiffant, Jean-Pierre Mas and Alain Mathys (Suez Environnement), S.V.K. Babu, Olivier Gilbert, Jean-Marie Gugenheim, Pierre-Alain Mahé and Patrick Rousseau (Veolia Environnement), Adriaan Mels (Vitens-Evides International) ADDITIONAL INPUT Marc Manara and Rik Vyverman (Acumen Fund), Denis Chavanis (Aquasure), Klaas vander Ven and Sendhil Nadarajan (Basic Water Needs), David Schaub Jones and Ken Caplan (Business Partners for Development), Alexandre Guinet (BeCitizen), Henk Holtslag (Connect International), Robin Simpson (Consumers International), Richard Franceys (Cranfield University), Helen Richards (DFID), Irène Serot-Almeras (Fondation Ensemble), Christopher Gasson (Global Water Intelligence), Jacques Monvois, Frederic Naulet (GRET), Michael Kremer (Harvard University), Daniel Lantagne (Harvard University/ CDC), Emmanuel Chaponnière (Hydroconseil/ FIPAG), Mike Roberts, Tapan Pattanayak and Nrusingha Charan Mohanty (IDE), Russell Sturm and Will Davies (IFC), Catarina Fonseca (IRC), Sean Granville-Ross (Mercy Corps), Sidharta Vermani (PATH India), Emillie Goransson and Helen Holm (SIDA), Bastienne Vriesendorp (Solar Now), Christophe Leger (Vergnet Hydro), Paul Polak (Windhorse), Jean-Francois Rambicur, Jean-Fabrice Mathieu and François Jaquemond (1001 Fontaines) A FEW PRELIMINARY CONSIDERATIONS FOR THE READER The authors of this report refer to the concept is government support and will. When of Base of the Pyramid (BoP) as defined in the such support is present, both public and seminal work of C.K. Prahalad in ‘The Fortune private utilities can expand water services at the Bottom of the Pyramid’, which refers to significantly, including to the poor. Yet such the four billion poor who live on less than US$2 examples take time to spread, especially in a day. However, poverty – and lack of access light of the urban migration challenges that to safe water - is determined by many other will face the cities of Africa and Asia in the factors other than income, such as access to coming decades. Hence, the need to look at and type of housing, legal status (or the lack (sometimes temporary) alternatives that can thereof), and other region-specific. alleviate the burden on these populations in the short-term. To assess the potential and scope of each solution reviewed in this report, the As for rural areas, existing solutions have authors chose to categorize them along two proven it is possible to develop adapted, dimensions: quality of raw water and density sustainable solutions for low-density, remote of population. There exists, clearly, other areas – including in areas experiencing heavy important factors to consider when assessing water pollution. However, the scaling-up of the local applicability of a solution, such as the these initiatives requires more philanthropic availability of raw water. These other factors support, as well as significant marketing are described in the chapters that discuss the innovation to boost penetration levels. prerequisites to implementing each type of Finally, the focus of this study is on safe water solution. solutions only. However, we understand that The latest UNICEF and WHO research on similar solutions need to be explored in the access to water shows encouragingly that for field of sanitation. This is particularly true for about 90% of the 1.7 billion people living in cases where safe water access translates into developing countries who have access to piped bringing large quantities of water into homes, water, water is safe. Today, utility operators – which need to be evacuated and treated. This public or private – have proven it is possible aspect is essential in terms of health and to provide quality services in an affordable hygiene outcomes. and sustainable manner in urban areas. Hence, this report does not specifically look at the innovations many of these operators are Disclaimer promoting, so that the remaining 10% without access to safe water can equally benefit. Hystra are the authors of this Report. The findings, interpretations, views and For the other 300 million urban dwellers who conclusions expressed herein are those of do not have access to pipes, or protected the authors and do not necessarily reflect the views of the seven sponsors financing sources (that deliver safe water), it appears this work. that a key factor to drive network expansion INTRODUCTION Over the past five years, dozens of innovative, The Report aims to understand why, by safe water solutions have gained increasing analyzing the obstacles these projects face, ground across the world: NGOs are setting- suggesting strategies to help overcome up enterprises manufacturing and offering them, and bring innovations to scale. low-cost, effective water filters; social A major finding was that all the proposed entrepreneurs are managing networks strategies would require the creation of of hundreds of mini-treatment plants in entire new industries, rather than the growth villages experiencing heavy water pollution; of a few organizations. Unprecedented local entrepreneurs are building networks collaboration is needed to make this of low-cost, stand-alone pipe networks in happen: public authorities have to craft and poor suburbs and towns; and both public implement effective water regulation, local and private utilities have proven it is possible entrepreneurs have to invest their time and to expand public water services to the poor energy into innovative products and services, peripheries of large cities. While some philanthropists need to fund sector-wide innovations were developed in collaboration initiatives, and large corporations must with individual country authorities, many evolve new business models. None of them developed in areas not yet reached by public can succeed on their own. services. We hope this Report will contribute to What makes these projects distinctive is that making this vision a reality. they try to serve the Base of the Pyramid in a sustainable manner, by offering quality We also want to thank the Consortium of services at a price that the poor are willing public, philanthropic and private sponsors and able to pay. that made this work possible. Integrating their different perspectives has been critical This Report is first meant as a testimony in shaping recommendations that go beyond of the work of these innovators and their playing field and to find solutions for entrepreneurs – their creativity, vision and the sector as a whole. energy. But it also analyses what works best, and where: it categorizes the most exciting solutions (e.g., water filters, treatment units, Olivier Kayser or small decentralized piped networks), and Hystra identifies which environments would be more appropriate to scale them up. Yet, while these innovations have already provided millions of poor people with access to safe water, they struggle to scale-up and reach the estimated two billion people who still do not have access to safe water today. ABSTRACT More than 2 billion poor people lack