World Bank

1
Senegal Increasing Access to On-site Sanitation
An ONAS-AFTU2 initiative
OBA Learning Event SDN Week February 27,
2008 Sylvie Debomy Sr. Urban Specialist AFTU2,
World Bank
2
Sector Background

• Low access to sanitation. More than 40 of the
  population of the Dakar region has no access to a
  proper sanitation system, the huge majority being
  among the poorest quintiles of income.
• Lack of appropriate technical options.
  Conventional sewerage is neither technically nor
  economically feasible in most parts of many
  cities however, until recently on-site sanitation
  was not backed up by regulations nor by technical
  staff.
• Limited public resources. The sanitation
  surcharge (US0.10/m3) levied on water charge for
  the Sanitation Utility is insufficient to finance
  capital investments and operations. A tariff
  reform underway for end of 2008.
• Challenges To develop a clear oriented-result
  approach, expand the technical options available,
  involve small-scale contractors, develop
  community outreach and support services, develop
  matching grants mechanisms for demand based
  sanitation services.

3
The Long Term Water Supply ProjectSanitation
Program for Peri-urban Communities of Dakar

• US81.3M LTWSP launched in 2001 to support WSS
  sector reform, of which US28M for on-site and
  semi-collective systems.
• More than 63,000 household sanitation facilities
  built between 2003 and 2006 (beyond the initial
  target of 60,000, two years ahead of schedule), 3
  sludge treatment facilities, and 6
  semi-collective sewers. More than 85,000 demands
  pending.
• Package of 21 technical options available with
  attractive matching subsidy (between 24 and max
  63/cap depending on the options) and an
  important social intermediation support with
  development of access to microcredit.
• Implemented by AGETIP (contract management
  agency), with OBA-type payment approaches, with
  small contractors for works and CBO for
  generation of demand, Hygiene Education and
  follow-up.

4
Structuring of IDA Project
PLT Project Unit
Validation And review of annual plans
Monitoring Committee
Technical and Financial reporting
Monitoring/ Control
Transmission of Annual plans and reporting
Validation And review of annual plans
ONAS
Transmission of Investment projects and reporting
AGETIP
Coordination Monitoring Review
Selection, Monitoring, Payment
Private Operators Engineering Works Training
consulting firms
NGOs/CBOs
Beneficiaries
5
Key stakeholders

• Institutional Arrangements (Public-Private
  Partnership)
• Process is facilitated by experience operators
  (AGETIP), CBOs, private contractors, and a
  committed government agency
• ONAS Public Agency in charge of policy, planning
  and some control
• AGETIP is a private contract management Agency
  with an incentive for cost reduction, subject to
  WB and Senegalese control (bi annual audits,
  reports, ISO 9000 certification) with a proven
  record of performance and approved manual of
  procedures (procurement) and short payment time
  two days)
• Private Contractors are Small-scale contractors
  selected on minimal technical quality and closely
  supervised by supervision consultant.
• CBOs are trained and supervised by AGETIP,
  permanence on project depends on performance
  measured monthly, provide critical mediation and
  education services to ensure sustainability.

6
Performance and Outputs

• The outputs of the project upon which the IDA
  subsidies are disbursed to AGETIP include
• Advance for 4 month (based on the submission of
  a work program) and representing 20 of the
  delegated amount
• AGETIP submit request for payment once the
  disbursed amount reach 30 of the advance. The DP
  amount reflect the number of facilities built,
  and intermediation activities carried and paid by
  AGETIP out minus an amount of 20. The outputs
  are verified by ONAS sanitation utilities (the
  list of facilities provide by AGETIP including
  technical features and GPS positioning) before
  payment.
• The outputs of the project upon which IDA
  subsidies are disbursed by to small contractors
  include
• Materials 40
• Certified installed facilities (with on-site
  verification) 50
• Retention payment for one year to ensure quality
  functioning of the facilities. 10
• The outputs of the project upon which IDA
  subsidies are disbursed by to CBO
• Advance 20
• Performance indicators reached and verified by
  AGETIP and ONAS on a sample (nb of household
  visits, registered demand for facilities, Hygiene
  education sessions)

7
GPOBA Pilot Scheme (1)

• Approach Build upon the WB successful
  experience regarding technology and
  implementation arrangements but bring innovation
  in terms of (i) incentives to reduce costs, (ii)
  efficiency of subsidy, (iii) control and
  disbursement mechanism
• Objective and Geographical Targeting To reach
  about 15,000 peri-urban households in Dakar poor
  neighborhoods with a verified demand for on-site
  sanitation.
• Expected Outputs 1) Household on-site facilities
  only (no semi-collective sewer) 2) Improved
  efficiency of the subsidy mechanism (overall
  average reduction of 15)
• Available technology Simple and environmentally
  safe options and technically proven 5 selected in
  a menu of 21 options to dispose grey and brown
  waters (i) washing basin with soakway, (ii)
  shower with soakway, (ii) pour flush latrines,
  (iv) pour flush latrine with shower and (v)
  septic tank

8
GPOBA Pilot Scheme (2)

• Sustainability has been factored into the project
  design in several ways
• Subsidies are one-off investment subsidies, and
  not for consumption.
• Importance has been attached to guaranty the
  affordability of facilities emptying, and
  enhancing maintenance, as well as improve the
  management of sludge treatment facilities.
• Demand driven including user contribution (25)
• AGETIP proven record for sustainable projects
• Scale up Significant interest Next IDA loan and
  PEPAM (MDG national program)?
• GPOBA Scheme in progress (i) Small scale
  entrepreneurs and CBO have been recruited for the
  first PIP programs. (ii) First PIP and request
  for advance sent to ONAS by AGETIP. (iii) ONAS
  has recruited technical auditor and (iv) AGETIP
  is fine tuning the baseline.

9
Structuring of GPOBA Project
Independent Monitoring Agent
Special Account
ONAS
GPOBA
Implementation agreement
Transmission of Investment projects and reporting
AGETIP
Coordination Monitoring Review
Selection, Monitoring, Payment
Private Operators Engineering Works Consulting
firm
NGOs/CBOs
Beneficiaries
10
Challenges for an OBA scheme

• Building trust Convincing the public utility of
  the feasibility of this non-conventional scheme
  and Building confidence between Beneficiaries and
  public actors that the scheme will be effectively
  implemented
• Defining the right contribution of beneficiaries
  (Estimated WTP/ effective CTP) and payment
  schedule. Buying power of low-income households
  has decreased.
• Disbursement arrangement Need the swift payment
  capacity of AGETIP to incite SSP to get involved
  and compete. Finding the right balance between
  small contracts and larger contracts to avoid
  costs implication.
• Issue of the subsidy amount set in dollar in a
  FCFA (EURO) country. High depreciation of the
  USD.
• High increase of cement price and problem of
  availability of intrans (a number of large
  priority government investments projects).
• Finding the right consultants !
• Bringing on board world bank FMS and procurement
  staff. Aligning understanding and procedures.

11
Some outputs
ShowerTCM
TCM Manual Discharge Toilet
ShowerBALP
Shower
Toilet
12
Thank you.
Please visit us at www.gpoba.org