Sector Investment Plan (SIP) for the Water, Sanitation and Hygiene (WASH) sector in Liberia (Summary Report)

Summary Report Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page i of 65 Preface This document provides a summary of the Sector Investment Plan (SIP) for the Water, Sanitation and Hygiene (WASH) sector in Liberia. The summary SIP has been produced to provide an introduction to the WASH sector investment plans – in the longer term until 2030 and in detail for the first five years as described in the SIP 2012 17. This summary SIP document is intended for sector stakeholders and the public in general to pro vide an overview of the challenges, targets and funding needs in the sector; while the detailed SIP documents provides comprehensive information for the sector institutions, the Government of Libe ria and Development Partners. The SIP documentation has been developed through a consultative process with the sector stake holders as represented in the National Water, Sanitation and Hygiene Promotion Committee and in particular the Ministry of Lands, Mines and Energy, the Ministry of Public Works, the Liberia Water and Sewer Corporation and the Ministry of Health. The process has been supported by the World Bank Water and Sanitation Programme and the com plementary WASH Sector Capacity Development Plan has been supported by the United Nations Children's Fund - UNICEF and the Government of Japan. Liberia WASH SIP 2012-17 SIP Summary Report Jan 2013 Page ii of 65 Foreword Liberia, under the leadership of President Ellen Johnson Sirleaf, has prioritised water, sanitation and hygiene as necessities for its citizens in the new millennia. During the course of her first term in office the President participated in and authorized activities intended to improve clean water delivery in Liberia through pipe borne water delivery systems as well as protected well water for citizens in the rural and less accessible communities. In May 2011, the President signed the Water and Sanitation (WASH) compact that aligns the principles of the Sanitation and Water for All, (A Global Framework for Action) to subsequent sector planning that has brought improvement to planning in the sector. The Government has south to implement its WASH activities through the Ministry of Public Works, specifically through the department of Rural Development and Community Services that has respon sibility to supervise and implement the WASH Sector Strategic Plan (2012-2017) and WASH section of the Agenda for Transformation (AfT). These plans are products of the reform process in the Liberian water, sanitation and hygiene (WASH) sector, driven by the Liberia WASH Compact commitments to improve sector capacity, financing and financing mechanisms. These plans also call for investing both external and internal resources in the WASH sector in order to help Liberia achieve the vision articulated in the Water Supply and Sanita tion Policy (2009) of “using clean water supply and safe sanitation as a vehicle for reducing the water supply and sanitation related disease burden, increasing productivity, promoting human welfare and setting the nation on a path towards long-term sustainable growth, development and poverty reduc tion.” This entire process is part of the administration’s Agenda for Transformation, Step Towards Liberia Rising 2030. This follows the ‘Lift Liberia Poverty Reduction Strategy’ (PRS) that helped raise Liberia from post-conflict emergency reconstruction and positioned it for future growth. While the Agenda for Transformation may not in itself provide all the solutions to Liberia’s problems, it is the first step towards achieving the goals set out in Liberia Rising 2030, Liberia’s long term vision of social econom ic development, intended to make Liberia a middle income country by 2030. The Agenda for Trans formation supports the principles of the Paris Declaration of Aid Effectiveness, the Accra Action Plan, and the New Deal for Engagement in Fragile States, to all of which Liberia is a signatory. The goal of Liberia’s WASH agenda is several folds including: 1) To establish and strengthen institu tional capacity to manage, expand and sustain Liberia’s WASH services; 2) increase equitable access to environmentally friendly and sustainable water and sanitation services and promote hygiene be haviour change at scale; 3) establish information management systems and strengthen monitoring, data collection, communication and sector engagement and 4) improve sector financing and financ ing mechanisms. We have made progress in delivering safe and adequate water and sanitation services to our people through the various WASH activities and agreements. Today we can say that the sector is a priority emphasized in national documents and commitments outlining the future of our nation. This ensures that the prioritization of the sector will continue into the future while acknowledging that much more needs to be done. Atty. Samuel Kofi Woods, II MINISTER Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page iii of 65 SIP Highlights WASH LIBERIA SIP • This document is the WASH Sector Investment Plan SIP 2012-17 based on the Sector Strategies and the planning outlook to 2030 • The current coverage with water and sanitation services is low and reaching the 2017 Sector Targets and the 2030 Targets of access for all Liberians requires large investments and decisive action • Action is needed on all fronts: completion of the institutional set-up; capacity development at all levels; and increased funding. In particular urban services require major funding to reach the targets and achieve longer term goals of full cost recovery • The following pages summarise the highlights of the SIP 2012-17 in the context of the long-term 2030 needs Access to water is low and many facilities are no longer working • Serious economic development, quality of life and health challenges caused by: • largely non-functioning piped water and sewerage infrastructure in Monrovia • low coverage with adequate facilities in areas outside the capital combined with a low functionality rate of existing point water sources • Access to water is estimated at 56% in rural areas, 65% in urban areasW h e re t h e W A S H S e ct o r is n o w Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page iv of 65 Access to improved sanitation is low and serious environmental sanitation problems • Access to sanitation is: • 15% in rural areas • 57% in Monrovia • 43% in other urban • An estimated 35% of existing clinics and schools do not have adequate W&S facilities. • Solid waste management services are only available in Monrovia covering an estimated 55% of the solid waste in the capitalW h e re t h e W A S H S e ct o r is n o w Attainable targets defined according to the national development agenda • Liberia’s development agenda sets the WASH sector targets: • In 2030 Liberia is a middle income country with access to adequate services for all • The 2017 targets reflect the MDGs and the ‘Agenda for Transformation’ • Emphasis on hygiene and shift towards piped water systems in urban areas and sewerage in Monrovia Sub-sector 2012 2017 2022 2030 WS Monrovia 65% 93% 96% 100% WS Other Urban 66% 93% 96% 100% WS Rural 56% 67% 80% 100% San Monrovia 57% 61% 80% 100% San Other Urban 43% 61% 75% 100% San Rural 15% 52% 70% 100% Solid Waste Monrovia 55% 60% 90% 100% Solid Waste other urban 0% 0% 25% 25% 50% 100% W h e re t h e W A S H S e ct o r n e e d s to g o Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page v of 65 The WASH Sector has a supportive policy environment Foundation for the SIP is the supportive WASH Sector Policy Framework: • The IWRM Policy, Nov 2007 • The ‘Water Supply and Sanitation Policy’ Nov 2009 • The Liberia WASH Compact: Sanitation and Water for All, May 2011 • The ‘Water, Sanitation and Hygiene Sector Strategic Plan’ 2012-2017, April 2012 W h a t G u id e s th e W A S H S e ct o r Institutional arrangements sound but incomplete H o w t h e W A S H S e ct o r is o rg a n is e d National Water, Sanitation and Hygiene Promotion Committee – NWSHPC Composition: All Line Ministries/Agencies Will operationalise Sector Policy, Strategy, Planning, Technical Support, Coordination, M&E, HRD, Capacity Building, Decentralization, Programs, Financing, NGO Support, MIS, Donor Coordination Water Supply & Sanitation Commission – WSSC Composition: Experts in Water & Sanitation, Economics, Sociology, Law, Public Health, Environment, Finance Will regulate Tariffs, Licenses, PPPs, Service Standards, Water Laws compliance Rural Water Supply and Sanitation Bureau (RWSSB) Rural WSS: conurbations with population <5000 Directorate of Community Mobilization & Hygiene Promotion (DCMHyP) Software & demand generation NGOs, CBOs NATIONAL WATER RESOURCES AND SANITATION BOARD – NWRSB (Composition – MLME, MOA, MOF, MPW, MFA, MOHSW, MGD, LWSC, EPA, International Development Partners & Others) LWSC Urban WSS: conurbations with population >5000 NWRSB and WSSC not yet appointed Decentralisation process important for service delivery Key: Resource developer/manager Service regulator Service provider/facilitators Support organisations Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page vi of 65 Sector Targets The SIP quantifies the WASH Sector Targets • The SIP 2012-17: • provides information on investment requirements, current plans and gaps to reach the Sector Strategic Plan targets • is based on existing sector policy and strategy and ongoing and proposed programmes • New projects have been identified, scoped and costed to fill gaps between sector strategy targets and current programme H o w t h e S IP C o n tr ib u te s Existing ongoing and Proposed programmes New projects to fill gaps between targets and existing programmes SIP 2012-17 The SIP analyses funding requirements depending on data and policy variables Sector investment Model (SIM): • Provides data analysis and calculation of the funding requirements based on targets; • Enables decision making on priorities and service level targets depending on strategic choices to be made T h e S IP C o st E st im a te s Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page vii of 65 Major investment requirements until 2030 – mainly in urban areas 3,500 mUSD cost to 2030 of providing: • piped water for urban population • point sources or piped systems for rural population • sanitation for all with sewerage for 50% of Monrovia • W&S for institutions • solid waste service in urban areasT h e C o st o f R e a ch in g t h e T a rg e ts Possibility for cost recovery for urban services – need decisive policy decisions Main features of sector funding: • Large investment inputs needed until 2030 in infrastructure • full cost recovery for urban services possible provided substantial tariff increases (10% annually) and improved operational efficiencies are achieved • Full cost recovery tariffs will need social safeguards W h e re w il l t h e m o n e y co m e f ro m Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page viii of 65 Substantive funding needed to reach the 2017 targets Within the longer term 2030 estimates, the 2012-17 SIP provides the details of the WASH sector funding requirements to reach the 2017 targets: • 400mUSD needed to achieve the WASH targets for 2017; • 52% of the total (208mUSD) will be needed to reach the targets of water, sanitation and solid waste management in urban areas; • 18% of the total (71mUSD) is required for WASH services in rural areas; • 12% of the total (48mUSD) is needed for water and sanitation services in schools, clinics and public areas; and • 18% of the total sector investments (74mUSD) is needed for sector capacity building. T h e S IP 2 0 1 2 1 7 i n a N u ts h e ll 59mUSD needed for investments in water services in Monrovia Monrovia Water The SIP will provide access to water for 93% of Monrovia’s population in 2017 by: • completion of the ongoing and planned rehabilitation of the White Plains System to its original capacity of 59,000m3/d • Two new groundwater schemes • Substantial investments in water distribution • A programme to ensure potable water quality for the population served by point water sources • Design of expansion of the White Plains System to double capacity • The estimated funding needs for the improvements are 59mUSD and 32mUSD is available from the existing funding leaving a funding gap of 27mUSD. T h e U rb a n S IP 2 0 1 2 1 7 i n a N u ts h e ll Funding needs in 1000USD Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page ix of 65 37mUSD needed for investment in sanitation services in Monrovia Monrovia Sanitation Access to improved sanitation for 61% of Monrovia’s population in 2017 by: • rehabilitation of the sewerage system • households improving their toilet facilities • land lords improving the sanitation facilities for rented accommodation • MCC implementing communal toilet facilities for dense settlements and public toilet facilities in market places and other public areas • A sanitation master plan study to bring clarity to the serious hygiene and environmental sanitation issues facing Monrovia - define the approach to sanitation: extent of the future sewerage system and the possible technological alternatives for on-site sanitation solutions • The estimated funding needs for the improvements are 37mUSD and only 4mUSD is available from the existing funding leaving a funding gap of 33mUSD. T h e U rb a n S IP 2 0 1 2 1 7 i n a N u ts h e ll 71mUSD needed for investments in water services in 23 other Cities Cities Water The SIP 2012-17 for Cities Water Supply will provide access to water for 93% of the urban population by: • Completing the piped water systems in 6 Cities: Buchanan, Kakata and Zwedru (AfDB) and Sanniquelle, Robertsport and Voinjama (LMWP/USAID) • Piped systems in additional 3 cities identified to : Gbarnga, Harbel and Ganta. • Programme of ensuring that existing communal and private point sources provide potable water • The main challenges are related to sustainability, cost recovery and the management and O&M arrangements i.e. the role of LWSC and the local government authorities in Counties and Municipalities. • The estimated funding needs for the improvements are 71mUSD and 18mUSD is available from the existing funding leaving a funding gap of 53mUSD. T h e U rb a n S IP 2 0 1 2 1 7 i n a N u ts h e ll Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page x of 65 13mUSD needed for sanitation in the 23 Cities Cities Sanitation Access to improved sanitation for 61% of the urban population will be achieved by: • a comprehensive urban sanitation programme for household sanitation including awareness campaign • construction of public toilets, • construction of sludge treatment works and collection equipment in cities with water projects • capacity building of local craftsmen and businesses to construct latrine slabs and septic tanks • The estimated funding needs for the improvements are 13mUSD. Only about 1mUSD is available from the existing project funding leaving a funding gap of 12mUSD. T h e U rb a n S IP 2 0 1 2 1 7 i n a N u ts h e ll 23mUSD needed for investment and O&M of Solid Waste Management in urban areas Solid Waste Management • The SIP 2012-17 includes completion of EMUS Phase 1 and implementation of the planned EMUS Phase 2 with a target of collecting 60% of Monrovia’s solid waste. • Solid Waste Management in the 23 Cities includes implementation of solid waste collection and disposal systems in the 9 towns where piped water systems are implemented together with the sludge collection systems and treatment facilities. • The main challenges in the solid waste management services relate to sustainability and cost recovery for services. • The estimated funding needs for the solid waste management activities are 20mUSD in Monrovia and 8mUSD in the cities. Presently there is a funding gap of 17mUSD. T h e U rb a n S IP 2 0 1 2 1 7 i n a N u ts h e ll Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xi of 65 51mUSD needed for investments in rural water services until 2017 Rural Domestic Water Supply Access to water for 67% of the rural population will be achieved by: • rehab of non-functioning water points • implementation of new hand dug wells, boreholes, springs and piped systems. • Focus on capacitating the County WASH Teams to plan, oversee implementation and monitor, and capacitating the national Departments in MPW and MOHSW to provide guidance and support to the County Teams. Pilot programmes are proposed: • Pilot county capacity building programme • Private sector capacity for hand drilling • Guidelines for spring catchments • Capacity building for hand dug wells • Drilling contract for boreholes The estimated funding needs for rural water supply are 51mUSD and 41mUSD is available from the existing funding leaving a gap of 10mUSD. Communities will contribute at least 10% of the construction cost and all O&M costs. T h e R u ra l S IP 2 0 1 2 1 7 i n a N u ts h e ll 16mUSD needed for Hygiene and Sanitation in Rural Areas Hygiene and Sanitation Access to improved sanitation for 52% of the rural population is ambitious in view of the present coverage estimated at 15%. The target will be achieved by: • a comprehensive programme for implementation of the CLTS approach led by the County WASH teams with support from the MOHSW at national level and supported by the ongoing NGO programmes. • The private sector will manage Sanitation Centres and distribute and sell SanPlats. • Public and institutional sanitation for schools and health centres will be an important part of the programme. • The estimated funding needs for rural sanitation and hygiene are 16mUSD and 6mUSD is available from the existing funding leaving a funding gap of 10mUSD. T h e R u ra l S IP 2 0 1 2 1 7 i n a N u ts h e ll Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xii of 65 48mUSD needed for investments in water and sanitation for institutions Institutional Water and Sanitation Institutional W&S include: • Water and sanitation facilities for Schools with a target of full coverage within a 10 year period • Water and sanitation facilities for Health centres within 10km walking distance serving max 3500 people and 2 new clinics per county per year to be achieved in a 15 year period • Public sanitation facilities ( with water supply) with a minimum of 1 facility per district and a maximum of 3000 persons per facility. • Cost recovery mechanisms are foreseen for the public facilities • The estimated funding needs for Institutional W&S are 48mUSD and 11mUSD is available from the existing funding leaving a funding gap of 37mUSD. T h e R u ra l S IP 2 0 1 2 1 7 i n a N u ts h e ll 74mUSD needed for implementation of the WASH Sector Capacity Development Plan The WASH Sector Capacity Development Plan (CDP): • The estimated funding needs for implementing the CDP is 74mUSD with 6mUSD funded through the AfDB Urban programme leaving a funding gap of 68mUSD.Obj 1 human capacities of GoL at nat. level Obj 2 institutional capacities of GoL at nat. level Obj 3 GoL human capacities at sub-nat. level Obj 4 institutional capacities at sub-nat. level Obj 5 human and institutional capacities through action research / pilot projects Obj 6 human capacities of CSOs, the private sector and the media Obj 7 institutional capacities of CSOs, the private sector and the media Obj 8 the enabling environment Obj 9 education and training institutions W A S H s e ct o r C a p a ci ty D e ve lo p m e n t P la n Includes CD support team and recurrent costs for the nat. teams. Includes transport and office packages for county, district and health facilities + operational costs Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xiii of 65 Challenges related to adequate funding and implementation capacity • Implementation challenges fall in two groups: Funding: • The investment needs are high and the WASH sector is competing for funding with other economic sectors • Division of WASH activities in four different sectors (in the Medium Term Budgeting Process) presents a challenge in a combined effort to promote the WASH funding • Private participation possible but private finance is costly in the present situation in Liberia Capacity to implement: • Emerging institutional framework with human and institutional capacity gaps at all levels (national – counties – municipalities – private sector) • Institutional roles for WASH at local level not yet clear e.g. responsibilities in towns and cities outside Monrovia Is i t p o ss ib le t o a ch ie ve t h e s e ct o r ta rg e ts ? Action and pro-active engagement with Government and DPs needed to implement coherent WASH sector programme • Steps to addressing Implementation challenges: Funding: • Pro-active participation in the Government Planning and Budgeting (MTEF) process to ensure WASH objectives are well represented; • Presentation of ‘implementable’ programmes to financiers; • Consensus on the institutional roles and focus on cost recovery; • Ensuring transparency and accountability in procurement, financial management and quality control of implementation. Capacity to implement: • Prioritise implementation of the Capacity Development Plan as an integrated part of SIP implementation • Comprehensive Programme Management Assistance at sector level to avoid fragmented projects without lasting service improvements • Advocacy for completion of the institutional framework with NWRSB and WSSC • Active engagement in decentralisation process • Immediate action by the NWSHPC to develop TORs for the sector support programmes defined in the SIP and Capacity Development PlanW h a t to d o t o a ch ie ve t h e s e ct o r ta rg e ts Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xiv of 65 V is io n f o r th e S IP Decisive action needed to go from serious environmental sanitation problems to human dignity in 5 years Photo Credit: Chantal Richey/Tearfund Photo Credit: Jens Vad/ PEMconsult The SIP is documented in detail SIP Documentation: The detailed background and the SIP estimates are presented in this ‘SIP Summary Report’ and further details are provided in: • Volume I: Liberia WASH SIP Final Report, supplemented with ⁻ Volume II Annexes with Detailed Data ⁻ Volume III: Annexes with Sector Documentation and SIP Process ⁻ Volume IV: Planning Tools (SIM, UCET and Appraisal Tool) Capacity Development Plan: Comprehensive info on the Capacity Development Plan available in: • Liberia WASH sector – Capacity Dev. Plan, 2012-17, Final, Nov 2012 • Liberia WASH sector – Capacity Dev. Needs Assessment, Final, Oct 2012 The Documents and planning tools available on the WASH Liberia Web-site: http://wash liberia.org or on the WASH SIP DVD available from the NWSHPC Secretariat. D e ta il e d in fo rm a ti o n o n t h e S IP Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xv of 65 Contents Preface ..................................................................................................................................................... i Foreword ................................................................................................................................................. ii SIP Highlights .......................................................................................................................................... iii List of Abbreviations and Terminology ................................................................................................ xvii 1 Introduction and General Approach ............................................................................................... 1 1.1 Background to the Sector Investment Plan (SIP) .................................................................... 1 1.2 WASH Sector Institutions ........................................................................................................ 2 1.3 The Existing Water and Sanitation Situation .......................................................................... 3 1.4 General approach and prioritisation ....................................................................................... 7 2 Strategic Investment Plan 2030 ...................................................................................................... 9 2.1 The Strategic Financial Planning Methodology ..................................................................... 10 2.2 Total WASH Sector Funding Needs ....................................................................................... 12 2.3 Scenarios for the Strategic Investment Plan ......................................................................... 14 3 Urban SIP 2012-17 ........................................................................................................................ 16 3.1 Monrovia Water Supply ........................................................................................................ 17 3.2 Monrovia Sanitation & Hygiene ............................................................................................ 19 3.3 Cities Water Supply ............................................................................................................... 23 3.4 Cities Sanitation & Hygiene ................................................................................................... 25 3.5 Solid Waste – Monrovia and Cities ....................................................................................... 26 3.6 Urban SIP – Summary and Conclusions ................................................................................ 27 4 Rural SIP 2012-17 .......................................................................................................................... 29 4.1 Domestic water supply ......................................................................................................... 31 4.2 Domestic Sanitation and Hygiene ......................................................................................... 32 4.3 Summary and Conclusions – Rural SIP .................................................................................. 34 5 Institutional Water Supply &Sanitation ........................................................................................ 35 6 Capacity Development Plan .......................................................................................................... 37 7 Sector Financing ............................................................................................................................ 38 7.1 Budget Preparation in the context of a MTEF ...................................................................... 38 7.2 Implementation Capacity Issues ........................................................................................... 40 7.3 Funding Modalities ............................................................................................................... 40 7.4 Available Funding for WASH ................................................................................................. 40 7.5 Fundraising Possibilities ........................................................................................................ 41 8 Comments on Action Plan for Implementation ............................................................................ 43 9 Detailed Information on the Liberia WASH SIP ............................................................................. 46 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xvi of 65 List of Tables Table 1-1: Targets per sub-sector ........................................................................................................... 2 Table 2-1: Total WASH Sector Funding needs ...................................................................................... 12 Table 2-2: WASH Sector Funding Sources and Funding Gap ................................................................ 13 Table 2-3: Public financing needs for WASH Activities ......................................................................... 14 Table 2-4: Key variables for the four Scenarios .................................................................................... 15 Table 3-1: Funding Needs and Available Funding for Monrovia Water................................................ 19 Table 3-2: Funding Needs and Available Funding for Monrovia Sanitation and Hygiene .................... 22 Table 3-3: Prioritising Cities Water Supply Facilities ............................................................................. 23 Table 3-4: Funding needs and available funding for water supplies to Cities ...................................... 25 Table 3-5: Funding needs and available funding for Sanitation and Hygiene in Cities ......................... 26 Table 3-6: Funding needs and available funding for Solid Waste ......................................................... 27 Table 3-7: Urban SIP funding needs and available funding .................................................................. 28 Table 4-1: Rural Water Investments ..................................................................................................... 32 Table 4-2: Funding needs and available funding for rural hygiene and sanitation .............................. 33 Table 4-3: Rural WASH Funding Needs and Available Funding ............................................................ 34 Table 5-1: investment requirements for institutional facilities ............................................................ 36 Table 6-1: Summary of the costs of the CD plan .................................................................................. 37 Table 8-1: Pros and Cons of Combining TA Programmes ..................................................................... 44 List of Figures Figure 1-1: Map showing access to water in rural and urban areas ....................................................... 4 Figure 1-2: Map showing access to sanitation in rural and urban areas ................................................ 6 Figure 2-1: Strategic Financial Planning Methodology ......................................................................... 10 Figure 2-2: Water and Sanitation Access Targets ................................................................................. 11 Figure 2-3: Total WASH Sector Funding needs ..................................................................................... 12 Figure 2-4: WASH Sector Funding Sources and Funding Gap ............................................................... 13 Figure 2-5: Public Financing needs for WASH Activities ....................................................................... 14 Figure 2-6: Average Annual funding needs to 2017, 2022 and 2030 ................................................... 15 Figure 3-1: Urban SIP funding needs and available funding ................................................................. 28 Figure 4-1: Water points constructed or rehabilitated in 2011/12 ...................................................... 29 Figure 4-2: Rural WASH Funding Needs and Available Funding ........................................................... 34 Figure 7-1: Linking Policies, goals and objectives to budget formulation ............................................ 39 Figure 7-2: The Budget Sectors ............................................................................................................. 39 Figure 7-3: Available Funding for WASH ............................................................................................... 41 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xvii of 65 List of Abbreviations and Terminology AfDB African Development Bank AWF African Water Facility BFP Budget Framework Paper BPN Budget Policy Notes CBO Community Based Organisation CDF County Development Fund CLTS Community Led Total Sanitation DCMHyP Directorate of Community Mobilization and Hygiene Promotion in MOHSW (presently functions carried out by DEOH) DEOH Division of Environmental and Occupational Health DPs Development Partners EMUS Emergency Monrovia Urban Sanitation FISH Fostering Innovative Sanitation and Hygiene in Monrovia GIS Geographical Information System GOL Government of Liberia IWRM Integrated Water Resources Management LHS Liberia Hydrological Survey LISGIS Liberia Institute for Statistics and Geo-Information Services LMWP Liberia Municipal Water Project (USAID funded) LWSC Liberia Water and Sewer Corporation M&E Monitoring and Evaluation MCC Monrovia City Corporation MDGs Millennium Development Goals MOE Ministry of Education MOF Ministry of Finance MOHSW Ministry of Health and Social Welfare MIA Ministry of Internal Affairs MLME Ministry of Land, Mines, and Energy MPEA Ministry of Planning and Economic Affairs MOPW Ministry of Public Works MTEF Medium Term Expenditure Framework MWSSP Monrovia Water Supply and Sanitation Rehabilitation Project NGO Non-Governmental Organisation NRWSSP National Rural Water Supply and Sanitation programme NWRSB National Water Resources and Sanitation Board NWSHPC National Water, Sanitation & Hygiene Promotion Committee NWSSP National Water Supply and Sanitation Policy ODF Open Defecation Free O&M Operation & Maintenance PPP Public-Private Partnerships PRS Poverty Reduction Strategy PVC Polyvinyl chloride RWSSB Rural Water Supply and Sanitation Bureau SIM Sector Investment Model SIP Sector Investment Plan SWM Solid Waste Management TA Technical Assistance TOR Terms of Reference UCET Unit Cost Estimating Tool UNDP United Nations Development Program Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page xviii of 65 UNICEF United Nations Children’s Fund USAID United States Agency for International Development USD United States Dollars (kUSD = 1000 USD; mUSD = 1,000,000 USD) UWSSP Urban Water Supply and Sanitation Project (AfDB funded) VIP Ventilated Improved Pit (latrines) WASH Water, Sanitation & Hygiene WB The World Bank WHO World Health Organization WSP Water and Sanitation Program, World Bank WSS Water Supply and Sanitation WSSC Water Supply and Sanitation Commission PPP A partnership where the public institution retains the ownership of assets and provided the investment funding. The private partner is a service provider. Sanitation The hygienic disposal of human excreta, it does not include solid waste Urban The built up areas of the 24 cities listed in the WASH Sector Strategic Plan Rural All areas that are not urban Peri-urban The areas around towns/ cities which are inside the administrative urban boundaries but outside the ‘built-up’ area in the core of towns/ cities that are planned to be supplied with piped water systems. Peri-urban areas are in cluded in the Rural SIP CLTS Communities are facilitated to conduct their own appraisal and analysis of open defecation (OD) and take their own action to become ‘ODF’ (open defe cation free). Domestic Sanita tion Facilities Sanitation facilities that people use when they are at home. This includes: Household facilities used exclusively by one household Shared facilities owned by a landlord and managed and used by a small group of households Communal facilities provided by public authorities, the community or a private operator Only domestic sanitation is considered when estimating coverage Institutional Sani tation Facilities Sanitation facilities provided: At institutions such as schools and clinics At public places such as markets and bus stops for use by the public when they are away from home. Institutional sanitation facilities provide additional sanitation services over and above domestic sanitation for when people are away from home and do not contribute to the coverage calculations On-site Sanitation Technologies/ facilities Sanitation facilities such as Pit Latrines, Ventilated Improved Pit (VIP) Latrines, EcoSan Toilets or flush or pour-flush toilets connected to a septic tank that is not connected to a sewer. Funding Needs The total need for funding of WASH activities including O&M cost Public Financing Needs The need for financing the WASH activities that is not covered by the user contributions e.g. tariffs in urban areas and payment for O&M in rural areas. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 1 of 65 1 Introduction and General Approach This Chapter provides information on the overall policy and institutional framework for the WASH sector in Liberia and a description of the existing situation in relation to water and sanitation ser vices and solid waste management. Present situation: The present access to water is estimated at 56% in rural areas, 65% in Monrovia and 66% in the other urban areas provided mainly through point sources 1 . Access to sanitation is estimated at 15% in rural areas, 57% in Monrovia and 43% in other urban areas provided mainly through on-site sanitation facilities. An estimated 35% of existing clinics and schools do not have ad equate water and sanitation facilities. Solid waste management services are only available in Mon rovia covering an estimated 55% of the solid waste in the capital. The main challenges are the water quality and hygiene issues caused by the largely non-functioning piped water and sewerage infrastructure in Monrovia; and the low coverage with adequate facilities in areas outside the capital combined with a low functionality rate of existing point water sources. General Approach: This 5 year Sector Investment Plan (SIP 2012-17) provides information on in vestment requirements, current planned investments and investment gaps to reach the targets set in the Sector Strategic Plan. The SIP 2012-17 should be understood as the integral first part of a longer term development plan with a target horizon of 2030. For this reason, this SIP includes basic estimates of longer term requirements to complement the focus on the core planning period of 2012-17. The SIP 2012-17 is based on existing sector policy and strategy and ongoing and proposed pro grammes. Where gaps have been identified between sector strategy requirements and current pro posed programmes, new projects have been identified, scoped and costed at an overall level to en sure a comprehensive plan that can achieve the targets. The data analysis and calculation of funding requirements are done using the Sector investment Model (SIM) designed to describe the longer-term funding requirements towards achieving the 2030 goals of water and sanitation services. The SIM enables decision-making on priorities and service level targets by estimating the funding requirements depending on strategic choices to be made. 1.1 Background to the Sector Investment Plan (SIP) Liberia is in transition from a civil war that ended in 2003 to its goal of becoming a middle income country by 2030. This journey is seen as having three phases. To move towards mid-income status, it is crucial for Liberia to shift from externally driven, humanitarian 1 Statistics based on data from the Water point Atlas (MPW 2011), LISGIS and information from sector institu tions Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 2 of 65 emergency assistance, which dominated the first post-war years, towards nationally owned service delivery that can guarantee stable development in the long-term. At this juncture, the ‘Sector Investment Plan’ (SIP) is a key tool for the Water Sanitation & Hygiene (WASH) sector to complete the shift from phase 2 to phase 3 by providing details on the need for rehabilitation of existing, and the expansion of water and sanitation infrastructure. The development of the SIP is guided by the policy and strategy documents that the water sector has produced over the last few years to determine the future direction of the WASH sector: The National Integrated Water Resources Management (IWRM) Policy, Nov 2007, addresses the overall water management issues and sets the policy and strategies against the Government's overall goals for social and economic development, The ‘Water Supply and Sanitation Policy’ Nov 2009 sets out the future institutional arrangements and provide key policy statements in relation to water and sanitation services, The Liberia WASH Compact: Sanitation and Water for All: A Global Framework. May 2011 – sets out a roadmap of themes based on the four commitments and related cross cutting issues. The WASH Compact was signed by the President and the SIP will be one of the key instruments through which the commitment of the Presidency to the WASH sector can be transformed into concrete achievements. The ‘Water, Sanitation and Hygiene Sector Strategic Plan’ 2012-2017. April 2012 – provides detailed guidance to the institutional responsibilities and strategies for implementation of the ‘WASH Compact’ and the sector policies. The present SIP document substantiates and details the investment requirements for reaching the water and sanitation services targets set in the Sector Strategic Plan. The existing coverage estimates and the targets per sub-sector are summarised in Table 1-1. Table 1-1: Targets per sub-sector Sub-sector 2012 coverage 2017 target 2022 target 2030 target Water supply Monrovia 65% 93% 96% 100% Other Urban 66% 93% 96% 100% Rural 56% 67% 80% 100% Sanitation Monrovia 57% 61% 80% 100% Other Urban 43% 61% 75% 100% Rural 15% 52% 70% 100% Solid Waste Monrovia 55% 60% 90% 100% Cities on 5yr plan 0% 25% 50% 100% Cities not on 5yr plan 0% 0% 25% 100% The SIP is complemented by the ‘WASH Capacity Development Plan’ which details the institutional development activitites and outcomes that are needed to ensure sustainable and cost effective implementation of the SIP. 1.2 WASH Sector Institutions Overall coordination and decision making: The decision-making structures for the WASH sector are defined clearly in the WASH Policy and the Sector Strategic Plan with clear mandates for the ‘Na tional Water Resources and Sanitation Board’ (NWRSB) and the ‘National Water, Sanitation and Hy giene Promotion Committee’ (NWSHPC) to ensure coordination and coherent decision making Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 3 of 65 amongst the various agencies involved in the sector. The NWSHPC exists and meets monthly and is supported by the NWSHPC Secretariat. The NWRSB is not yet appointed. Regulation: The ‘Water Supply and Sanitation Commission’ (WSSC) will regulate tariffs, licenses, Public-Private-Partnerships (PPPs), Service Standards, Water Laws compliance etc. The WSSC is not yet established however interim arrangements are being put in place awaiting the formal legal es tablishment. Service provision in rural areas: The policy documents clarify that at national level, the implementa tion will be supported by the ‘Directorate of Community Mobilization & Hygiene Promotion (DCMHyP) (presently the Division of Environmental and Occupational Health) in the Ministry of Health and Social Welfare (MOHSW) for software and demand generation and by the ‘Rural Water Supply and Sanitation Bureau’ (RWSSB) (presently the National Rural Water & Sanitation Programme in the Bureau of Community Services) in Ministry of Public Works (MOPW) for support to implemen tation of rural water and sanitation at County level. The implementation capacity at county level is expected to gradually develop through the de-concentration of the national ministries staff to coun ty level and eventually full decentralisation. The vision is that actual construction of rural water and sanitation will be done by the private sector managed by the County Governments Service provision in urban areas: The ‘Liberia Water and Sewer Corporation’ (LWSC) will have re sponsibilities for the water and sewerage service provision in urban areas. Municipalities and town authorities are envisaged over time to develop capacity and assume responsibilities for WASH ser vices including solid waste management in cities and towns outside Monrovia. 1.3 The Existing Water and Sanitation Situation Access to water of drinking water quality is a huge challenge in Liberia. The country is blessed with high rainfall however the access to clean water is limited by the lack of functioning infrastructure. The majority of the population collects water from unimproved or partly protected sources such as shallow wells or surface water sources. Worsening water quality is a challenge for the un-protected as well as the protected water sources. Access to sanitation facilities is also a challenge with only about 30% of the population using improved sanitation facilities according to the 2008 population census data. Urban Water Supply LWSC has traditionally provided water to Monrovia and the “urban” areas outside Monrovia, de fined as cities with populations greater than 5000 or cities which are County Capitals, but over the last two decades these systems have not been operating. Currently only Monrovia and Kakata have partly operating water supplies. Bensonville is to a limited extent supplied by an extension from the Monrovia piped system. Non-functioning water infrastructure exists in Buchanan, Gbarnga, Kakata, Voinjama, Zwedru, Harper, Greenville, Sanniquellie and Robertsport. LWSC is in a reform process to adapt its role, vision and structure for the huge increase in responsibilities that the proposed expan sion of the water and sanitation systems would require. To ensure targeted institutional capacity development the SIP supports an assessment of the institu tional responsibilities related to piped water services, in particular in the towns outside Monrovia in light of the implementation of the decentralisation policy. Therefore, although in the medium-term the county and/ or city administrations may take on this responsibility as part of the national decen Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 4 of 65 tralisation process, we have assumed that piped water supply in urban areas is the responsibility of LWSC in the short term. Non-piped water supply, including within Greater Monrovia, will be the re sponsibility of MOPW in the short term. The existing coverage with point sources is important in the present situation; however for future planning it is important to recognise that although the water points provide access to water it is well known that shallow groundwater in densely populated urban areas without good sanitation cover age is most likely to be severely contaminated bacteriologically as documented by the 2010 WSP water quality study in Monrovia. Therefore, and to be able to provide the higher service level of house and yard connections, piped systems are planned in the cities. The access to urban and rural water facilities is illustrated on Figure 1-1. Figure 1-1: Map showing access to water in rural and urban areas Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 5 of 65 Rural Water Coverage and Technologies Data on existing coverage in rural areas is available from the recently completed Water Point Atlas and from the 2008 Population Census by Liberia Institute for Statistics and Geo-Information Services (LISGIS). The estimates of the present coverage that forms the basis for the SIP calculations of the investment requirements to reach the coverage targets are based on: 1) the number of persons served in 2008 based on the 2008 population census data 2) + the population served by the water points implemented between 2008 and 2011 according to the water point mapping data 3) + the water points implemented in the 2011/12 financial year according to the data collected from the implementers as part of the SIP development. Current rural water supply systems in Liberia are predominantly hand dug wells with some bore holes and a few protected springs and piped systems. Access varies across the country as illustrated on Figure 1-1: Map showing access to water in rural and urban areas. Urban Sanitation, Hygiene and Solid waste management Two basic project approaches for sanitation and hygiene have been used in the past and are pro posed for the future in the Sector Strategy:  Piped sewer systems with sewage treatment for the more built up areas of the larger cities and in particular Monrovia.  Awareness campaigns to promote the construction of household latrines and good personal hygiene practices such as hand washing. The piped sewer systems clearly fall under the remit of LWSC, and the responsibility for non-piped sanitation appears to fall under the municipalities with policy and strategic guidance by the MOHSW. The SIP assumes that non-piped sanitation will be the responsibility of Monrovia City Corporation (MCC) within Monrovia and of the Municipalities in other urban areas. In addition to the two main methods for access to sanitation facilities, communal facilities are implemented in the densely popu lated poorer settlements where household facilities are not affordable or technically possible. The communal facilities are operated and maintained by private or community based organisations based on user payments. There has been an active implementation of solid waste improvements in Monrovia through: the Emergency Rehabilitation Project, the Emergency Monrovia Urban Sanitation (EMUS) Phase 1 Pro ject which is currently about half way through its programme (2009-13) and the planned EMUS Phase 2 project which will extend coverage to virtually all of Greater Monrovia. The SIP has therefore used the EMUS projects as the 2012-17 plan for Monrovia and has used the same model to outline proposed new projects in the 9 Cities. The EMUS Phase 1 project collects approximately 55% of the estimated solid waste generated in greater Monrovia (Oct 2011). There are no formal solid waste collection and disposal arrangements in any of the other Cities and there is no target for coverage in 2017 in the WASH Strategy. Rural Sanitation The general approach used in rural areas in Liberia is that domestic sanitation and hygiene im provements will be delivered using the Community Led Total Sanitation (CLTS) approach. This ap proach is based on raising demand for sanitation in households so that households construct their Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 6 of 65 own improved sanitation: the WASH programme does not provide any financial support to house hold for the construction of latrines or septic tanks. The programme provides communication and training inputs to achieve behavioural change and facilitates the availability of appropriate materials in sanitation centres at district level. In addition, demonstration latrines are constructed under the programme together with on-site sanitation for schools and clinics. CLTS has been used for some time in Liberia and uses the concept of villages being recognised as Open Defecation Free (ODF) as part of the incentive mechanism for households and communities. The present access to sanitation in urban and rural areas is illustrated on Figure 1-2: Map showing access to sanitation in rural and urban areas. Figure 1-2: Map showing access to sanitation in rural and urban areas Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 7 of 65 Institutional Water and Sanitation The SIP addresses institutional water and sanitation facilities under three headings: Public Facilities: access to toilet and water facilities in public areas such as market places, bus-stops, public offices etc. in urban areas and rural towns, Facilities for pupils and teachers in schools, Facilities for staff and patients in health clinics. Data is not readily available on the existing public facilities. The water point mapping identified the schools without water facilities and the infrastructure division in the MOHSW has provided the data on clinics and the number of existing clinics without water supply. There is no precise data available on the existing sanitation facilities at schools and clinics; however it is estimated that 35% of the ex isting health facilities do not have adequate water and sanitation facilities. The options for water supply sources for institutions are similar to rural water, however the con struction programme for rural clinics in the MOHSW is implementing water facilities consisting of a well or borehole with a submersible pump and overhead tanks that will supply the clinic as well as provide water for the toilet facilities and hand washing. The technologies used for institutional and public sanitation facilities are double pit VIP latrines or flush toilets. 1.4 General approach and prioritisation The SIP 2012-17 is intended to provide information on investment needs, current planned invest ments and investment gaps to reach the targets set in the Sector Strategic Plan. The SIP is based on existing sector policy and strategy and ongoing and proposed programmes. Where gaps have been identified between sector strategy requirements and current proposed programmes, new projects have been identified, scoped and costed at an overall level to ensure a comprehensive plan that can achieve the targets. The SIP 2012-17 does not, however, develop or expand sector strategy nor does it present detailed design and costing and implementation plans for the proposed new projects included in the SIP for the sake of completeness; these will need further work to develop them properly. The prioritisation between the sub-sectors (urban/ rural and water/ sanitation) is therefore accord ing to the priorities set in the Sector Strategic Plan for the SIP 2012-17. Cost Estimates: The data analysis and calculation of funding requirements are done using the Sector Investment Model (SIM). The SIM is designed to describe the longer-term funding requirements to wards achieving the 2030 goals for water and sanitation services according to four different scenari os: i) Baseline Scenario; ii) High Growth Scenario with Urban Development Focus; iii) High Growth Scenario with Rural Development Focus; and iv) Low Growth Scenario. (Described further in 2.3) The objective of the SIM is to inform decision-making on priorities and service level targets by estimating the funding requirements depending on strategic choices to be made. The unit cost inputs to the SIM are provided by the Unit Cost Estimating Tool (UCET) that provides estimates on different components of water and sanitation facilities according to country specific input costs and area variables. There are big variations in unit costs depending on implementation methods, competition levels, and these will change over time. The changing global environment and more open trade, changes in construction prices e.g. due to Chinese contractors and more effective and mature client practice in Africa with reduced corruption and general more effective procure Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 8 of 65 ment and contract management will all change the investment requirements. It is therefore im portant to regularly monitor the unit prices and update the planning tools to continuously provide good financial estimates for the sector budgeting and planning. Sources of Data: the main sources of data for the SIP are: i. The numerous studies and reports that have been produced over recent years on the water supply, sanitation and solid waste arrangements in Monrovia and the Cities ii. The 2008 LISGIS Population census data with information on population and use of different types of improved water sources and sanitation facilities in approximately 17,000 locations; iii. The 2011 water point atlas with detailed information on the type, installation year and op erational status of approximately 10,000 point sources; iv. Data collection from implementers (Non-Governmental Organisations (NGOs) and MOPW) on their activities in the 2011/12 financial year and plans for the coming 5 years v. Data from the Ministry of Education (MOE)/ LISGIS on approximately 5000 schools; vi. Data from the MOHSW on health institutions There are gaps and limitation in data quality e.g. complete sanitation data is only available from the 2008 census, there is inadequate data on water and sanitation facilities in schools, clinics and public areas and LISGIS location codes are not used consistently in the sector surveys. The various data sources have been harmonised using the LISGIS location coding and incorporated in an expanded Geographical Information System (GIS) based on the water atlas GIS that allows for analysis of the key aspects of the water and sanitation planning such as technology mix and location of population compared to water sources. Rural – urban demarcations: the SIP uses the following division between the Rural SIP and the Ur ban SIP: Only the 24 cities listed in the Sector Strategic Plan are included in the Urban SIP and the Urban SIP only covers the built up area in each of these 24 cities and this area is defined as “the city” for SIP purposes Where the built up area is significantly smaller than the city boundary, piped systems will be limited to the built up area. The areas between the built up area and the city boundary will be served by point sources and covered by the Rural SIP. Where the built up area extends beyond the city boundary the piped system will cover the built up area and this built up area will be included in the Urban SIP. The area which extends beyond the city boundary will be removed from the Rural SIP. The Rural SIP covers all areas except the built up area of each of the 24 cities (including Monrovia) covered in the Urban SIP and therefore includes all small towns and the peri urban areas around the cities. Population Projections: The population projections in the SIP are based on the 2008 population cen sus data and a district by district assessment of population growth. The population dynamics are not well known; however the assumed trend is that population growth is largest in the towns and in are as with economic growth and therefore the map of economic development-corridors has been used to ‘score’ the districts. The average overall population growth in Liberia according to these estimates is 2.2% which is in line with the LISGIS medium growth scenario. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 9 of 65 2 Strategic Investment Plan 2030 This Chapter provides information on the Strategic Investment Plan with a planning horizon until 2030. These longer-term estimates for 2030 provide the context for the subsequent, detailed sub sector estimates of this SIP’s core-planning period 2012-17. The Sector Investment Model (SIM) de scribes the funding needs and the available funding in the WASH sector in Liberia. The structure of the SIM is described and the results are presented for Rural, Urban and Institutional water and sani tation respectively for reaching full coverage by 2030. The total funding requirement (including O&M) is estimated at 3.4 billion USD to reach the 2030 targets and there is a substantial funding gap of about 450mUSD for the first five years and in total a gap of 1.5 billion USD to reach the sector targets in 2030. The annual public financing needs for WASH are expected to increase from a present level of about 50mUSD to 200mUSD in 2017/18 and thereafter decrease to less than 50mUSD in 2030 as the cost recovery for urban services is expected to contribute substantially to sector funding. Urban water: the investment requirements are based on the target of piped water to the urban population in 2030 – a dramatic shift from the present supply from mainly point sources. The analy sis shows that the policy goal of full cost recovery can be achieved by 2030 provided annual tariff increases of 10% above inflation are implemented and operating efficiencies are improved. The an nual funding requirements are around 75 to 100m USD. Urban Sewerage: the funding requirements for sewerage are presented for: Scenario 1 aiming at 50% of the population in Monrovia being connected to the sewerage system and 2% of the popula tion in the other urban areas by 2030; and Scenario 2 aiming at 100% of the urban population cov ered by sewerage services in 2030. The annual funding requirements are approximately 40mUSD for Scenario 1 and 80 to 100m USD for Scenario 2. The analysis indicates that cost recovery can be achieved provided tariff increases of around 7% annually above inflation are implemented. Solid Waste Management: The annual funding requirements for solid waste services in all urban areas are estimated to increase from 10mUSD to about 30mUSD in 2030 with users paying an in creasing part. Rural water: the funding requirements include the cost of: providing new facilities; replacing existing infrastructure that outlives its lifespan; rehabilitating the existing water points that are broken down; O&M and capacity building for community management. The annual funding requirement is approximately 10mUSD. Domestic sanitation: the funding requirements for rural areas are based on the CLTS strategy and cover the cost of triggering the CLTS process and follow-up hygiene education and M&E. The sanita tion targets in urban areas will be achieved by a combination of access to the sewerage systems and promotion of different on-site technologies. The annual funding requirements for hygiene and sani tation promotion are in the range of 6 to 8m USD. Institutional W&S: the estimates include public toilet facilities and water and sanitation facilities in schools and in health centres in rural and urban areas. The investment requirements are in the range of 10mUSD annually. Sector Capacity Development: annual funding for implementation of the Capacity Development Plan and overall sector coordination and management ranges from an initial high of about 20mUSD deceasing to about 5mUSD towards 2030. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 10 of 65 2.1 The Strategic Financial Planning Methodology The planning tools developed for preparing the WASH Strategic Investment Plan 2030 aim at provid ing a transparent and long-term overview of the overall financial needs of the WASH sector in Liberia in order to meet its targets. The tools developed will enable the sector to better manage any finan cial gaps through policy dialogue on sector strategies (how to increase sector efficiency and effec tiveness) and through enhanced fund-raising and revenue generation. The strategic financial planning methodology consists of 3 interrelated processes: Derivation of an expenditure forecast based on macro-economic forecasts and characteristics of sector demand; Derivation of available sector finance based on macro-economic forecasts and characteristics of sector supply; Derivation of financing gap and a process for adjusting demand and supply factors to manage the gap in financing. This methodology is outlined in Figure 2-1. The existing coverage and facilities (data) when combined with considerations of coverage targets over time (policy and technical variables) and the overall macro-economic context will provide the basis for an expenditure forecast, both capital and recur rent. The sources of potential finance combined with the rules governing public transfers and user charges (technical and policy variables) and the overall macro-economic context will provide the ba sis for a projection of available finance, both capital and recurrent. Figure 2-1: Strategic Financial Planning Methodology The projection of available finance is based on the fund ing from different sources such as the Government’s budgets, Development Part ners (DPs), existing and pipe line development loans as well as the rules that govern tariffs and subsidies. Some of the funding sources are likely to be earmarked for investment expenditures (loans and grants), recurrent expenditures (tariffs and government funding) and capacity building (grants) The difference between the expenditure forecast to meet targets and the projection of available fi nance arising from the rules and sources of finance result in a financing gap (or surplus) – this can then be managed by changing the “variables” within the demand side and supply side. These varia bles will be both policy variables e.g. coverage targets and tariffs and technical variables e.g. specifi cations, technology mix, unit costs. This iterative process will allow different scenarios to be devel oped and provide an evidence based policy decision support. Supply Macro-economic forecast Existing Facilities and Situation Targets •Level •year Rules governing: •Public transfers •User charges •Private sector finance Sources of Finance: •User Charges •Public budgets •Private fin. Inst. •Donors and IFIs Expenditure forecast •Investment expenditure •O&M expenditure Project available finance for •Investment expenditure •Recurring expenditure •Capacity Building etc Financing Gap Change •Targets •“Rules” •Finance Sources Demand Change •Prices •Production/ Income •Public Revenues Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 11 of 65 Figure 2-2: Water and Sanitation Access Targets The Sector Invest ment Model (SIM) has been developed to analyse the expendi tures and available finance for the WASH sector in Liberia. The results presented be low are based on the targets illustrated in Figure 2-2. The tar gets for 2017 are ac cording to the MDG targets outlined in the Sector Strategic Plan and the target for 2030 is access to wa ter and sanitation services for all Liberi ans in accordance with the Govern ment’s Vision for Li beria as a middle in come country. The SIM is based on various policy varia bles, some of the most important for WASH sector financ ing are the tariffs paid by urban consumers and the operating efficiencies of the ur ban utilities due to the large portion of the sector invest ments that are need ed for urban services. The results shown below are assuming that substantial tariff increases (in the scale of 10% annual increases above inflation) and improvements in operating efficiencies will make it possible, in line with the sector policies, for the urban services to be self-financing at the end of the planning period. 0 1 000 2 000 3 000 4 000 5 000 6 000 Ju ly 2 0 1 3 Ju ly 2 0 1 4 Ju ly 2 0 1 5 Ju ly 2 0 1 6 Ju ly 2 0 1 7 Ju ly 2 0 1 8 Ju ly 2 0 1 9 Ju ly 2 0 2 0 Ju ly 2 0 2 1 Ju ly 2 0 2 2 2 0 3 0 1 0 0 0 p e rs o n s Population served - Water Rural Pop un-served Urban Pop un-served Rural Pop served Urban Pop served - Private Point Sources Urban Pop served - Communal Point Sources Urban Pop served - Piped Systems 0 1 000 2 000 3 000 4 000 5 000 6 000 Ju ly 2 0 1 3 Ju ly 2 0 1 4 Ju ly 2 0 1 5 Ju ly 2 0 1 6 Ju ly 2 0 1 7 Ju ly 2 0 1 8 Ju ly 2 0 1 9 Ju ly 2 0 2 0 Ju ly 2 0 2 1 Ju ly 2 0 2 2 2 0 3 0 1 0 0 0 p e rs o n s Population served - Sanitation Rural Pop un-served Urban Pop un-served Urban Pop served - on-site Urban Pop served - sewerage Rural Pop served - on-site Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 12 of 65 2.2 Total WASH Sector Funding Needs The total WASH sector funding needs are shown in Table 2-1 2 and Figure 2-3 based on detailed cal culations per subsectors 3 as presented below, The funding needs are dominated by the investments for water and sewerage services in urban areas (even with the lower scenario 1 coverage target for sewerage services). The urban investment calculations in the SIM are based on modules for the 24 Cities and the variations in urban funding needs for the different years are due to the timing of when major urban projects in the specific cities are scheduled to start. The rural investments calculations are based on coverage targets for the districts in the target years of 2017, 2022 and 2030 and there fore the funding requirements show a more even distribution over the planning period. Table 2-1: Total WASH Sector Funding needs Figure 2-3: Total WASH Sector Funding needs The funding needs are the totals and include the O&M costs and therefore it becomes important to look at the part of the funding that is provided by the users directly as payment of tariffs or payment 2 The total column on this and all subsequent tables calculates the totals for 2012 to 2030 and is therefore the sum of the annual totals + 8 x the average for 2022 to 2030 in the second last column 3 Water and Sanitation for schools and clinics are included in row 4 ‘Hygiene, Sanitation and Institutional W&S’ Funding Needs Sector Funding Needs (mUSD) - Scenario 1 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Av. 2023 30 Total 2012-30 Rural Water 9.8 10.6 11.4 11.2 11.5 10.8 10.7 10.6 10.5 10.4 10.9 194.8 Urban Water 8.0 32.4 48.4 72.1 86.2 102.9 97.6 107.0 107.8 106.3 102.4 1 587.9 Urban Sewerage 1.2 4.0 13.5 18.3 26.5 29.6 33.0 34.5 32.7 36.8 50.6 634.7 Hygiene, Sanitation, Instutional W&S 14.1 16.3 16.6 17.1 17.4 19.8 20.6 21.1 21.7 22.4 17.4 326.5 Solid Waste Management 9.5 10.2 11.0 11.8 12.7 13.8 15.9 18.2 20.5 23.0 31.3 397.3 Sector Capacity Development 8.3 19.9 15.4 15.3 15.3 12.3 10.7 9.2 7.7 6.1 4.6 156.9 Sector Management and Coordination 2.1 3.4 4.2 5.0 5.2 5.3 4.6 4.2 3.5 2.8 2.1 57.4 Total 53.1 96.8 120.5 150.8 174.9 194.5 193.2 204.8 204.4 207.9 219.3 3 355.5 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 13 of 65 for O&M of rural water systems. The estimates of funding from users (tariffs, rural O&M and contri bution to capital cost, user payment for solid waste) and the information on funding from govern ment budgets and various donors for the immediate 5 year period as well as the estimated funding available from revenues paid by the extractive industry concessions for WASH in counties are shown on Table 2-2 and Figure 2-4. It is obvious that there is a huge funding gap in the short- to medium-term, while over time the an ticipated user payments will assist in closing the gap in the longer term. Table 2-2: WASH Sector Funding Sources and Funding Gap Figure 2-4: WASH Sector Funding Sources and Funding Gap In analysing the funding gap it is important to look at the ‘public’ financing needs for the WASH sec tor – here understood to mean the funding needed for WASH activities that are not coming directly from the users. The public financing needs per subsector are shown on Table 2-3 and Figure 2-5. It is clear that the main financing need in the short and medium term is from the urban water and sewerage services while these towards 2030 can be self-financing as implied by the minimal public financing needs for urban services in the 2023-30 period – naturally assuming that the substantial tariff increases are implemented and operating efficiencies are improved. Sector Funding Total Sector Funding (mUSD) - Scenario 1 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Av. 2023 30 Total 2012-30 User Payments 3.9 6.3 10.0 15.5 23.4 37.1 46.2 57.0 69.3 82.9 166.7 1 685.1 Committed Government, Donor and NGO funding 23.6 21.8 23.7 9.8 5.9 3.2 3.6 3.9 4.3 4.7 6.9 160.1 Total Sector Funding 27.5 28.1 33.7 25.3 29.3 40.3 49.8 60.9 73.6 87.6 173.6 1 845.2 WASH Sector Funding Needs (average) 53.1 96.8 120.5 150.8 174.9 194.5 193.2 204.8 204.4 207.9 219.3 3 355.5 Funding Gap 25.6 68.7 86.8 125.5 145.6 154.2 143.4 143.9 130.7 120.3 45.7 1 510.4 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 14 of 65 Table 2-3: Public financing needs for WASH Activities Figure 2-5: Public Financing needs for WASH Activities 2.3 Scenarios for the Strategic Investment Plan The SIM is programmed to prepare estimates for funding needs for 4 scenarios: i) The Baseline Scenario – used as the most likely scenario and used in the presentation of results above. ii) High Growth Scenario with Urban Development Focus – presents the results for economic devel opment focussing on urban development and related high population growth in urban areas and focus of investments on urban services and reduced targets for rural areas iii) High Growth Scenario with Rural Development Focus– presents the results for economic devel opment focussing on rural development and related higher population growth in rural areas and focus of investments on rural services and reduced targets for urban areas iv) Low Growth Scenario – with reduced targets in both rural and urban areas. The SIM is intended as an interactive tool that can be used by the planners in the water sector to analyse the consequences of changing targets and other policy variables. The following summary results of the scenario analysis is therefore only included here to show the differences in the water sector investment needs based on the different variables and is not intended as a comprehensive presentation of the outputs from the analysis that is possible in the SIM. The key variables (targets) used in the SIM for the results presented below for the four scenarios are shown in Table 2-4. Public Financing Needs Total Public Financing Needs (mUSD) - Scenario 1 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Av. 2023 30 Total 2012-30 Rural Water 7.8 8.4 9.0 8.8 9.0 8.2 8.0 7.8 7.6 7.4 7.4 141.4 Urban Water and Sewerage incl point sources 7.5 32.5 54.5 77.8 92.4 99.1 89.0 90.1 77.9 68.5 0.5 693.2 Hygiene, Sanitation and Instutional W&S 14.1 16.3 16.6 17.1 17.4 19.8 20.6 21.1 21.7 22.4 17.4 326.5 Solid Waste Management 9.4 10.0 10.7 11.4 12.1 12.7 14.0 15.3 16.6 17.7 20.7 295.1 Sector CD, Management and Coordination 10.4 23.3 19.6 20.3 20.6 17.6 15.4 13.4 11.1 8.9 6.7 214.3 Total 49.2 90.5 110.5 135.3 151.5 157.4 147.0 147.8 135.0 125.0 52.7 1 670.4 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 15 of 65 Table 2-4: Key variables for the four Scenarios Policy Variables Scenario 1 Baseline - Business as usual Scenario 2 High growth with urban focus Scenario 3 High growth with rural focus Scenario 4 Low growth Coverage 2017 2022 2030 2017 2022 2030 2017 2022 2030 2017 2022 2030 Rural Water Services 67% 80% 100% 67% 72% 80% 67% 80% 100% 67% 72% 80% Urban WS (Pipe & Point Sources) 93% 96% 100% 93% 95% 100% 30% 38% 50% 30% 38% 50% Annual tariff increases 10% 8% 7% 10% 6% 4% 5% 3% 2% 0% 0% 0% Domestic Sewerage Monrovia 15% 30% 50% 38% 75% 100% 6% 10% 15% 3% 5% 10% Other Cities 0% 1% 2% 25% 50% 100% 4% 7% 15% 0% 0% 0% Sanitation Coverage Monrovia 61% 80% 100% 90% 100% 100% 60% 65% 75% 60% 65% 70% Other Cities 61% 75% 100% 61% 75% 100% 61% 75% 75% 61% 75% 75% Rural Sanitation Coverage 52% 70% 100% 52% 70% 100% 52% 70% 100% 25% 35% 50% Schools W&S 10 years to cover all 10 years to cover all 5 years to cover all 20 years to cover all Clinics W&S 2 clinics/county/yr 2 clinics/county/yr 3 clinics/county/yr 1 clinics/county/yr The summary results are illustrated on Figure 2-6 for the different planning periods. Figure 2-6: Average Annual funding needs to 2017, 2022 and 2030 The differences between the four scenarios obviously become more pronounced in the later plan ning periods. The target of full sewerage coverage in urban areas in scenario 2 shows how this will dominate the sector funding needs. The presentation of the detailed 2012-17 Sector Investment Plan is based on the variables presented above for Scenario 1. 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Sc e n a ri o 1 Sc e n a ri o 2 Sc e n a ri o 3 Sc e n a ri o 4 m U S D Average Annual Funding Needs to 2017 InstW&S Hy&San Sew UWS RWS 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Sc e n a ri o 1 Sc e n a ri o 2 Sc e n a ri o 3 Sc e n a ri o 4 m U S D Average Annual Funding Needs 2018-22 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Sc e n a ri o 1 Sc e n a ri o 2 Sc e n a ri o 3 Sc e n a ri o 4 m U S D Average Annual Funding Needs 2023-30 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 16 of 65 3 Urban SIP 2012-17 The Urban SIP 2012-17 aims at providing access to water for 93% and to sanitation for 61% of the urban population by 2017. The SIP includes a description of the key issues facing service delivery in urban areas related to capacity for implementation; sustainability, cost recovery and O&M; and the cost estimates for investments. This is followed by detailed information on: Monrovia Water Supply – describing the existing situation, planned projects and the investment plans for water supply in Monrovia Monrovia Sanitation and Hygiene – describing the sewerage, sanitation and hygiene issues and existing and planned projects and investment requirements for sanitation and hygiene Cities Water Supply – describing the existing situation, planned projects and the investment plans for water services in the 23 Cities that are regarded as urban Cities Sanitation and Hygiene – describing the sanitation and hygiene issues and existing and planned projects and investment requirements for sanitation and hygiene in the 23 Cities Solid Waste, Monrovia – describing the existing situation with solid waste in Monrovia and the plans for solid waste management in the greater Monrovia area Solid Waste Cities – describing the plans for providing solid waste management services in the 23 Cities The investment funding requirements to achieve the targets are estimated to 207mUSD and the presently available project funding amounts to 65mUSD leaving a substantial funding gap of 142mUSD to achieve the 2017 targets in urban areas. The funding gap is mainly in relation to water services in Cities. In case adequate funding is not mobilised, the following needs to be considered: 1. Focus on the urban water investments on Monrovia and the already planned 6 Cities and on en suring that the many existing point sources in the towns are delivering safe water 2. Place emphasis on the substantive issues around how best to address the urban sanitation issues in Monrovia and also in the Cities 3. Clarify the responsibilities for supporting the Municipalities and County administrations in the provision of services in the Cities 4. The streamlining and fast tracking of service delivery – especially in relation to the urgently need ed improvements in services in Monrovia – and the proposed programme management assis tance to LWSC Implementation capacity: It is clear from the review of existing documents that the urban water and sanitation sector suffers from serious constraints in managing implementation with problems in pro gramme management, project management and contract management. When analysing the imple mentation of the urban water projects in Monrovia over the past 5 years it is evident that the delays in implementation are caused by i) internal capacity constraints in LWSC and difficulties in coordinat ing and managing funding from different financing agencies with different procurement and report ing requirements and ii) external delays from the financing agencies in disbursements and providing the required approvals. This needs to be allowed for in some way in the SIP 2012-17 and therefore Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 17 of 65 programme management support is suggested. The programme management support would pro vide overall project planning, procurement and implementation support to ensure effective planning and achievement of targets. Cost recovery: The Sector Strategic Plan is clear that users must pay at least all of the Operation and Maintenance (O&M) costs but that tariffs can be designed to allow cross subsidies from the richer consumers to the poorer. The current water supply in Monrovia suffers from severe restriction on income to LWSC, not only because tariffs are too low, but because:  The distribution system does not reach most consumers partly because customer connections are not made but also because with only 200km of distribution system for 1 million people, the network is not very dense and many people are too far away from the system.  Only a very small proportion of the population has a water connection and it is likely that a huge number of people are connected to the system illegally.  Customer records are poor and few household connections have working meters.  The billing and collection system is weak, which when combined with the above technical prob lems leads to a very high level of Non-Revenue Water. 3.1 Monrovia Water Supply The highlights of the SIP 2012-17 for Monrovia Water Supply are: The 2017 target of access to water for 93% of Monrovia’s population will be achieved by completion of the ongoing projects and the planned rehabilitation of the White Plains System to its original ca pacity of 59,000m 3 /d complemented by two new groundwater schemes and substantial investments in water distribution as well as a programme to ensure potable water quality for the population served by point water sources. The proposed projects are: 1. Programme management covering the water and sanitation projects that are to be undertaken in Monrovia, ensuring coordination and preparing the outline designs for the new projects: water dis tribution extension project; dug well improvement project; water supply expansion project and also covering the sewerage and on-site sanitation activities (estimated cost 2.4mUSD). 2. Monrovia Water Distribution Project – covering full rehabilitation of the existing distribution sys tem and extension of the system to cover 77% of Greater Monrovia as well as a comprehensive leakage reduction programme and installation of new consumer connections (estimated cost 23.0mUSD). 3. Monrovia Well Protection Project – covering improvements to 1032 existing communal wells in order to improve the water quality serving 250,000 people and hygiene promotion to ensure potable water from private wells (estimated cost 0.5mUSD). 4. Monrovia Water Supply Expansion Project – covering the design of the extension of the Monrovia piped water supply system to meet the needs of Greater Monrovia in 2022 by doubling the capacity of the White Plains production to 118,000m 3 /d. (estimated cost 0.8mUSD). The estimated funding requirements for the improvements are 59mUSD and 32mUSD is available from the existing funding leaving a funding gap of 27mUSD. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 18 of 65 The sector strategy is based on achieving the coverage target of 93% by 2017. This will be achieved in Monrovia by the outline projects proposed in the strategy i.e. rehabilitating the White Plains Sys tem to its original capacity of 59,000 m 3 /d, two supplementary groundwater based systems and im provements to the distribution system, with the remainder of the population served by non-piped protected sources. Technologies: The main technologies for the Monrovia piped systems have already been decided in the Urban Water Supply and Sanitation Project (UWSSP) II and are primarily rehabilitation of the White Plains water treatment plant using rapid gravity filters and standard pumping and transmis sion arrangements. The two new groundwater schemes also use conventional technologies. The proposed new scheme to expand and rehabilitate the distribution system should use conventional technologies such as Polyvinyl chloride (PVC) pipes and standard valves and meters for new and re placement works. The project to upgrade the non-piped sources is limited to providing a regular well chlorination programme to try to mitigate the inevitable contamination from polluted groundwater. Time Scales: Recent water supply and solid waste projects have taken significantly longer than planned to construct and longer delays have been experienced in starting up projects, particularly getting Development Partner’s approvals and doing procurement. The SIP has therefore used realis tic but not overgenerous timescales: achieving the proposed timescales will need a new approach and sustained effort from all parties. Ongoing Projects: Monrovia has two ongoing water supply projects: i) MWSSRP: the Monrovia Wa ter Supply and Sanitation Rehabilitation Project which is the emergency rehabilitation of the White Plains System to 15,000 m3/d 25% of its original capacity. The project is substantially completed; ii) UWSSP II – Monrovia Element: Rehabilitate the White Plains piped system to its original capacity of 59,000 m3/d and construct two new groundwater systems of 7000 m3/d each. Provide various ca pacity building inputs. Proposed Projects: The 4 new projects that are needed to supplement the existing projects in order to achieve the sector targets for 2017 are described in outline below. Project 1: Programme Management Consultancy - the function of these consultants will be programme managing and coordinating all of the water and sanitation projects that are to be undertaken in Monrovia, this function includes: scheduling, quality control, cost control, reporting to LWSC, tendering and contract management of all of the delivery contracts; preparing a Sanitation Master Plan for the city; preparing the outline designs for the new projects: Water distribution extension project; Dug well improvement project; Water supply expansion project; Fiamah Sewage Treatment Plant; On-site sanitation project; Sewerage expansion project (if this is what is agreed from the master plan) The consultancy would not include the various consultancy assignments already identified in the current African Development Bank (AfDB) funded project, including: design review and construction supervision of the AfDB funded project and the various Technical Assistance (TA) and capacity development assignments. Project 2: Monrovia Water Distribution Project: full rehabilitation of the existing distribution system and extension of the system to cover 77% of Greater Monrovia as well as a Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 19 of 65 comprehensive leakage reduction programme and installation of new consumer connections. Project 3: Monrovia Well Protection Project: Improvements to 1032 existing communal wells in order to improve the water quality serving 250,000 people and hygiene promotion to ensure potable water from private wells Project 4: Monrovia Water Supply Expansion Project: design of the extension to the Monrovia piped water supply system to meet the needs of Greater Monrovia in 2022 by doubling the capacity of the White Plains production to 118,000 m3/d. The Sector Strategy aims to have the design completed during the 2012-17 SIP Summary of Expenditure and Funding for Monrovia Water Supply: The funding needs and the available funding for water supply in Monrovia is summarised in Table 3-1 below. There is a substan tial funding gap to reach the targets implied in the Sector Strategic Plan targets of more than USD 25 million – mainly on the improvements and expansion of the distribution network to actually reach the users and fulfil the coverage targets as described above. Table 3-1: Funding Needs and Available Funding for Monrovia Water 3.2 Monrovia Sanitation & Hygiene The highlights of the SIP 2012-17 for Monrovia Sanitation & Hygiene are: The 2017 target of access to improved sanitation for 61% of Monrovia’s population will be achieved by a combination of: i) rehabilitation and extension of the sewerage system so that the present discharge of untreated sewage is reduced; ii) households improving their toilet facilities up the sanitation ladder: connecting to the sewerage system, constructing septic tanks, constructing improved on-site latrines; iii) land lords improving the sanitation facilities for rented accommodation; iv) MCC implementing communal toilet facilities for the population in dense settlements where on site facilities are not possible and v) MCC implementing public toilet facilities in market places and other public areas Funding Needs (kUSD) Status 2012/13 2013/14 2014/15 2015/16 2016/17 TOTAL MWRSSP Contract 1 200 0 0 0 0 1 200 URWSSP II (Monrovia) Planned 2 024 7 866 9 293 7 750 3 620 30 553 Programme Mmt Consultants Proposed 0 610 610 610 610 2 440 Monrovia Water Distribution Proposed 0 518 2 045 10 225 10 225 23 013 Well Protection Proposed 0 27 323 119 0 469 Monrovia Expansion Proposed 0 0 0 0 832 832 Total Funding Needs 3 224 9 021 12 271 18 704 15 287 58 507 Available funding(kUSD) MWRSSP AfDB 1 200 0 0 0 0 1 200 UWSSP White Plains & Other Rehab AfDB 2 024 7 866 9 293 7 750 3 620 30 553 GOL Subsidy to LWSC GOL 0 0 0 0 0 0 Total Available Funding 3 224 7 866 9 293 7 750 3 620 31 753 Funding Gap (kUSD) 0 1 155 2 978 10 954 11 667 26 754 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 20 of 65 A sanitation master plan study is urgently needed to bring clarity to the serious hygiene and envi ronmental sanitation issues facing Monrovia. It will define the overall approach to sanitation in Mon rovia and in particular the extent of the future sewerage system and the possible technological al ternatives for temporary or permanent on-site sanitation solutions, addressing the complex finan cial, institutional, socio-economic, environmental and technical issues related to sanitation. The estimated funding requirements for the improvements are 37mUSD and only 4mUSD is available from the existing funding leaving a funding gap of 33mUSD. The WASH Sector Strategy has set a target of 61% coverage of improved sanitation facilities in urban areas by 2017 and the plan assumes that piped sewer systems will be the main way that sanitation will be achieved in Monrovia. The existing sewer system covers only 14% of Greater Monrovia so to achieve 61% coverage through piped sewerage by 2017 is not realistically possible, and therefore although the long term strategy for sanitation in Monrovia is to provide an extensive piped sewer system, for the SIP 2012-17 the coverage targets will be achieved as a combination of sewerage and on-site solutions. The sanitation interventions described in this SIP will thus be a combination of i) rehabilitation and extension of the sewerage network and treatment plant so that the present discharge of untreated sewage is reduced; ii) households improving their toilet facilities up the sanitation ladder: connecting to the sewerage system, constructing septic tanks, constructing improved on-site latrines; iii) land lords improving the sanitation facilities for rented accommodation; iv) MCC implementing commu nal toilet facilities for the population in dense settlements where on-site facilities are not possible and v) MCC implementing public toilet facilities in market places and other public areas. The SIP includes the preparation of a ‘sanitation master plan’ to guide the sanitation activities. The master plan will assess the possibilities for sanitation solutions that fulfil the service level require ments and are environmentally safe, technologically appropriate and economically feasible. Ongoing Sanitation Projects: Monrovia has 2 major ongoing projects: i) UWSSP II: which covers Monrovia and three Cities has a small sanitation component for rehabilitation of sewer lines in cen tral Monrovia and Sinkor and construction of 16 Ecosan systems and 27 VIP latrines in markets and schools; ii) FISH - in 2011 MCC presented a proposal to the African Water Facility (AWF) of the AfDB for the Fostering Innovative Sanitation and Hygiene in Monrovia (FISH) Project. This project has been included under ongoing projects since funding is likely to be approved. It is a 36 month project fo cussing on improved facilities for handling the sludge from septic tanks and improved communal sanitation facilities for about 6000 persons. Proposed Sanitation Projects: the following 4 projects are proposed to reach the targets for sanita tion in Monrovia in addition to the Project 1: Programme Management Consultancy as described in the water section of the report that will also address sanitation: Project 2: Sanitation Master Plan for Monrovia: needed urgently and the work could be done by the Programme Management Consultants to avoid time consuming separate procure ment processes and for the master plan study to lead directly into formulation and im plementation of investment programmes. This high level master plan concentrates on i) the overall approach to sanitation in Monrovia and in particular the extent of the future Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 21 of 65 sewerage system and the possible technological alternatives for temporary or permanent on-site sanitation solutions; ii) financial sustainability and consumers’ ability and willing ness to pay for piped sewerage; iii) the future institutional arrangements, including re sponsibilities for piped sewer systems and non-piped sanitation and tariff requirements for a financially sustainable sewerage system; iv) Technical issues such as sewage treat ment options and a deep sea outfall, different sewage treatment processes and the sludge implications, septic tank options including how to dispose of the effluent if this is not connected to a sewer, options for public toilets. Project 3: Fiamah Sewage Treatment Plant has a scope of constructing a new sewerage treatment plant at Fiamah with a capacity of 23,000 m 3 /d to serve the rehabilitated existing sewer system. This can only start once the master plan has confirmed that a sewerage treat ment plant at Fiamah is appropriate but planning and securing funding for the project should start as soon as possible. This is the part of the sanitation projects that would re quire most funding in the 2012-17 period as it includes the complete renovation of the existing system. The project plan assumes that a traditional approach with detailed de sign by a consultant is used, but this is one project where a design and build approach should be seriously considered. Project 4: Monrovia On-Site Sanitation Project: The improvements to the central sewerage system and treatment plant will improve the environmental conditions in Monrovia, but since the households using flush toilets, either connected to the working parts of the sewerage system (discharging mainly untreated to the surface drains and wetlands) or connected to septic tanks, are already considered as covered in the statistics, the improvements to the sewerage system will not in itself contribute to reaching the coverage targets. The hygiene education and improvements to the sewerage system and septic tank emp tying is likely to result in households ‘moving up the sanitation ladder’ – getting connect ed to the sewerage network, building flush toilets to replace pit latrines etc. and although this is important for improved hygiene and living conditions, it also does not in itself con tribute to the numerical count for reaching the coverage targets. The main increase in coverage to achieve the target coverage of 61% by 2017 will there fore need to come from households presently using unlined and uncovered pit latrines or open defecation that will invest in improved pit latrines or other toilet facilities. A sub stantial increase could also be achieved by enforcing the bylaws that oblige landlords to make toilet facilities available for rented accommodation. These improvements will need to come from the households’ and the landlords’ own in vestment in sanitation facilities in accordance with the policy of no subsidy for household sanitation facilities. A comprehensive hygiene education and sanitation promotion cam paign is therefore needed to ensure that this takes place. Improvements in access to water and sanitation facilities in public places (like markets) are also important to achieve a general improvement in the environmental sanitation conditions in Monrovia. Private or community organisations will operate the facilities on a cost recovery basis with the users paying for the use of the facility. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 22 of 65 These considerations should be regarded as preliminary and only for the purpose of the SIP attempting to quantify the investments in sanitation promotion and public toilets in Monrovia – the sanitation master plan will be able to provide a better and a more sub stantive plan for the sanitation investments. Project 5: Monrovia Sewerage and treatment Expansion Project: For the purpose of the SIP the extension assumes that the existing system which drains to Fiamah cannot be extended due to limitations of the Fiamah site area. Three new satellite systems will be constructed as proposed in the Sector Strategic Plan (and in the NCL Study 4 ) and the design of those are included in the 5 year plan. Summary of Expenditure and Funding for Monrovia Sanitation & Hygiene The estimated funding needs for the hygiene and sanitation activities in Monrovia are presented in the table below. Table 3-2: Funding Needs and Available Funding for Monrovia Sanitation and Hygiene The funding gap as well as the implementation challenges for reaching the sanitation targets implied in the Sector Strategic Plan are very substantial –in Monrovia alone, additional funding of more than 30 million USD will be required. 4 Monrovia Expansion & Rehabilitation of Three County Capitals Water Supply & Sanitation Project Feasibility study, August 2009, NCL Engineering Services Ltd and Funding Needs (kUSD) Status 2012/13 2013/14 2014/15 2015/16 2016/17 Total URWSSP II (Monrovia) Planned 200 732 732 434 41 2 139 FISH Planned 0 900 900 898 0 2 698 Programme Mmt Consultants Planned 0 610 610 610 610 2 440 Sanitation Master Plan Proposed 0 1 150 0 0 0 1 150 Fiamah STP Proposed 0 303 838 8 838 8 838 18 817 On-Site Sanitation Proposed 0 728 2 183 2 183 2 183 7 276 Sewerage Expansion (design) Proposed 0 0 0 0 2 500 2 500 Total Funding Needs 200 4 423 5 263 12 963 14 172 37 020 Available funding(kUSD) UWSSP 200 732 732 434 41 2 139 FISH 0 600 600 600 0 1 800 Total Available Funding 200 1 332 1 332 1 034 41 3 939 Funding Gap (kUSD) 0 3 091 3 931 11 929 14 131 33 081 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 23 of 65 3.3 Cities Water Supply The highlights of the SIP 2012-17 for Cities Water Supply are: The 2017 target of access to water for 93% of the urban population will be achieved by implement ing piped water systems in 9 Cities as targeted in the Strategic Plan: Buchanan, Kakata and Zwedru funded by AfDB and the Liberia Municipal Water Project (LMWP) in Sanniquelle, Robertsport and Voinjama funded by USAID. The last 3 cities were identified using the ‘Prioritisation Tool’ to be: Gbarnga, Harbel and Ganta. To reach the coverage target, it must be ensured that the existing com munal and private point sources provide potable water in the Cities that have not been prioritised for piped systems. The main challenges in relation to water services in the Cities are related to sustainability, cost re covery and the management, operation and maintenance arrangements i.e. the role of LWSC and the local government authorities in Counties and Municipalities. The estimated funding requirements for the improvements are 71mUSD and 18mUSD is available from the existing funding leaving a funding gap of 53mUSD. Targets and Assumptions: the target for urban water supply coverage in 2007 is 93%. The Sector Strategic Plan allows for a total of 9 Cities to be supplied in the 2012-17 programme and it is clear that supplying 9 out of 23 cities will not achieve the target coverage, actually 15 of the largest Cities would need to be covered by piped systems if the coverage target should be reached by only con sidering piped water. The SIP therefore includes costing for all 23 Cities and nine prioritised cities (including the ongoing projects in 6 cities) would be included in the budget. A Prioritisation Tool has been developed that considers the four factors: i) the need for the project in a particular city; ii) unit costs and design status; iii) institutional and financial aspects; and iv) risks. The scoring using the Pri oritisation Tool was done in collaboration with the SIP Task Force and later adjusted according to updated coverage figures and cost estimates. The results are shown in Table 3-3. Table 3-3: Prioritising Cities Water Supply Facilities Priority Cities Total Score The Need for the Project Project Design & Costs Institu tional & Financial Risks Project Funding Existing WS 1 Buchanan 81.20 47.00 18.15 8.40 7.65 AfDB Yes 2 Gbarnga 81.10 48.00 16.75 8.65 7.70 Yes 3 Kakata 71.70 41.00 15.15 7.65 7.90 AfDB Yes 4 Bensonville 69.20 38.00 16.75 5.40 9.05 Yes 5 Harbel 65.40 31.00 17.40 7.95 9.05 No 6 Ganta 65.30 37.00 13.90 6.70 7.70 No 7 Sanniquelle 64.70 37.00 11.65 7.75 8.30 USAID Yes 8 Greenville 63.40 37.00 11.00 8.00 7.40 Yes 9 Harper 62.25 37.00 11.00 7.20 7.05 Yes 10 Zwedru 62.15 35.00 11.90 7.70 7.55 AfDB Yes 11 Robertsport 59.35 31.00 11.50 8.05 8.80 USAID Yes 12 Tubmanburg 58.20 32.00 11.00 6.90 8.30 Yes 13 Voinjama 57.20 34.00 11.50 4.80 6.90 USAID Yes Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 24 of 65 14 Foya 52.55 27.00 10.90 7.40 7.25 No 15 Sacleapea 51.80 25.00 10.75 7.40 8.65 No 16 Cesstos City 50.35 23.00 10.65 8.80 7.90 No 17 Pleebo 49.00 24.00 10.75 6.95 7.30 No 18 ZorZor 47.60 20.00 10.75 8.65 8.20 No 19 River Gbeh 46.95 23.00 7.65 7.90 8.40 No 20 Bopolu 44.83 18.00 10.38 8.30 8.15 No 21 Barclayville 44.30 21.00 7.75 7.75 7.80 No 22 Fish Town 43.55 23.00 4.75 7.75 8.05 No 23 Kamplay 40.15 18.00 7.50 6.90 7.75 No The 6 ongoing projects are not in the six top ranked cities because the selection was based on cities with existing water infrastructure rather than considering the needs in all 23 cities as done in the prioritisation tool. Bensonville was earlier served by an extension of the Monrovia piped system and the need for rehabilitation and extension could most effectively be carried out as an integrated part of the Monrovia water system development. This means that the three additional cities to be funded within the initial SIP five year period are: Gbarnga, Harbel and Ganta. Ongoing Projects: there are two ongoing projects covering 6 towns ongoing: i) The AfDB Funded Three Towns (Kakata, Buchanan and Zwedru) restoring piped water supply to the majority of the city areas and the SIP has included the coverage and the costs as given by the project for the water sup plies. Ii) The Liberia Municipal Water Project (LMWP) funded by the United States Agency for Inter national Development (USAID) (Sanniquelle; Robertsport and Voinjama) are at a much earlier stage of development than the AfDB funded projects and have a very different philosophy with focus on financial and institutional sustainability and are considering low cost solutions such as mini piped schemes or boreholes with handpumps. The LMWP do not include sanitation or hygiene but include capacity building for the transfer of responsibilities from LWSC to the municipalities and/or commu nities. Summary of Expenditure and Funding for Cities Water Supply: The funding needs for water supply to Cities are presented in Table 3-4. The funding needs are based on the existing budgets for the AfDB funded projects (although likely to be exceeded if the 3 towns are to be covered entirely by piped systems); the Unit Cost Estimating Tool (UCET) investment cost estimates for the LMWP since the cost estimates and budgets from USAID are not available. In the available funding part of the table it has been assumed that the funding for these 3 cities will be made available in full by USAID. The estimates also include an estimate of the water quality testing and well chlorination programme that would be required to regard the existing wells in the towns without water systems as safe water sources. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 25 of 65 Table 3-4: Funding needs and available funding for water supplies to Cities The estimates presented in Table 3-4 reveals that there is a considerable funding gap of close to USD 50 million to reach the targets set in the Sector Strategic Plan. 3.4 Cities Sanitation & Hygiene The highlights of the SIP 2012-17 for Cities Sanitation & Hygiene are: The 2017 target of access to improved sanitation for 61% of the urban population will be achieved by developing and starting the implementation of a comprehensive urban sanitation strategy. This will include awareness and communication campaign, construction of public toilets in market places and other public areas, capacity building of local craftsmen and businesses to construct latrine slabs and septic tanks and to provide a septic tank emptying service and construction of a simple sludge treatment works and collection equipment in each city to treat septic tank and pit latrine sludge in cities where water projects are implemented. The sanitation and hygiene project would be implemented by the Municipalities in close cooperation with the MOHSW and the WASH Implementation Teams in the Counties. The estimated funding needs for the improvements are 13mUSD. Only about 1mUSD is available from the existing project funding leaving a funding gap of 12mUSD. Targets: The Sector Strategy has a target of 61% coverage of improved sanitation by 2017 and in cludes a project to construct sewer systems in “six cities including Monrovia” and it is assumed that this implies treatment plants for these sewer systems. The sector now seems to have concerns about piped sewerage in the Cities, with uncertainty about future responsibility for water and sani tation in Cities and large questions over the viability of piped water supplies in these cities. For the purposes of the draft SIP it has been assumed that non piped sanitation will be provided and that facilities for septic tank emptying and sludge treatment will be established in cities where water sys tems are implemented. Ongoing Projects: UWSSP II is the only ongoing sanitation project in the Cities and includes only a very limited number of institutional and public toilets. Funding Needs (kUSD) Status 2012/13 2013/14 2014/15 2015/16 2016/17 TOTAL Buchanan AfDB 0 285 1 425 1 140 0 2 850 Kakata AfDB 0 165 825 660 0 1 650 Zwedru AfDB 0 151 754 603 0 1 508 Voinjama USAID 0 0 1 580 2 106 1 580 5 266 Sanniquellie USAID 0 0 1 606 2 142 1 606 5 355 Robertsport USAID 0 0 488 650 488 1 626 Ganta SIP 0 802 3 206 9 618 2 405 16 031 Gbarnga SIP 0 942 3 766 11 299 2 825 18 832 Harbel SIP 0 815 3 260 9 780 2 445 16 299 WQ Testing and clorination programme for point sources SIP 148 370 370 370 222 1 481 Total Funding Needs 148 3 529 17 280 38 369 11 570 70 897 Available funding(kUSD) URWSSP II (3 cities) AfDB 0 601 3 004 2 403 0 6 008 3- cities USAID 0 0 3 674 4 899 3 674 12 246 Total Available Funding 0 601 6 678 7 302 3 674 18 254 Funding Gap (kUSD) 148 2 928 10 603 31 067 7 896 52 643 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 26 of 65 Proposed Projects: Cities Sanitation and Hygiene Project - is proposed to start as soon as possible to supplement the AfDB funded project in those three towns and to provide sanitation in the LMWP/ USAID supported town and the remaining towns. The sanitation and hygiene project would be im plemented by the Municipalities in close cooperation with the MOHSW and the WASH implementa tion Teams in the Counties. The methodology, promotional techniques and the use of private sector sanitation centres would be similar to the approach described for the CLTS programme in rural are as. The scope of the work would be: i) Development of a comprehensive and long term urban sanita tion strategy; ii) long term awareness and communication campaign; iii) construction of hygienic la trines or toilets in all schools, health centres and hospitals; iv) Construction of public toilets in mar ket places and other public areas; v) Construction of simple sludge treatment works and collection equipment in each city to treat septic tank and pit latrine sludge in cities where water projects are implemented. The programme will include capacity building of local craftsmen and businesses to construct latrine slabs and septic tanks and to provide a septic tank emptying service. The budgets for institutional facilities are included in the Institutional SIP. Summary of Expenditure and Funding for Cities Sanitation and Hygiene: The Implementation would be led by the municipality in each of the cities with support from the County WASH Teams and con sultants. The estimated funding needs and the available funding is shown in Table 3-5. Table 3-5: Funding needs and available funding for Sanitation and Hygiene in Cities 3.5 Solid Waste – Monrovia and Cities The SIP 2012-17 for Solid Waste Management in Monrovia is based on completion of the ongoing EMUS Phase 1 Project and implementation of the planned EMUS Phase 2 Project with a target of collecting 60% of Monrovia’s solid waste. The estimated funding needs for the solid waste manage ment activities are 15mUSD for which funding is yet to be secured. The SIP 2012-17 for Solid Waste Management in the 23 Cities is proposed to include implementation of solid waste collection and disposal systems in the 9 towns where piped water systems are imple mented together with the sludge collection systems and treatment facilities. The estimated funding needs for the solid waste management activities are 8mUSD for which funding is yet to be secured. The main challenges in the solid waste management services relate to sustainability and cost recov ery for services. Targets: The Sector Strategy does not give targets for solid waste however the EMUS Phase 2 Project has set a target of collecting 60% of Monrovia’s solid waste and this has been taken as the target in Funding Needs (kUSD) Status 2012/13 2013/14 2014/15 2015/16 2016/17 Total Sanitation in AfDB project Planned 0 67 333 266 0 666 Household Sanitation Promotion Proposed 0 269 1 077 3 232 808 5 386 Public latrines Proposed 0 58 232 696 174 1 161 Sludge treatment in 9 towns Proposed 0 114 454 1 362 341 2 271 Sanitation TA Proposed 0 180 720 2 160 540 3 600 Total Funding Needs 0 687 2 817 7 717 1 863 13 084 Available funding(kUSD) Sanitation in 3 cities AfDB 0 67 333 266 0 666 Total Available Funding 0 67 333 266 0 666 Funding Gap (kUSD) 0 621 2 484 7 451 1 863 12 418 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 27 of 65 the SIP for Monrovia. In addition to the EMUS project there are two ongoing projects targeting solid waste in Monrovia: the ‘Primary Solid Waste Collection in Poor Communities’ and the ‘Collection Centres & Educational Campaign’ projects. It is proposed to implement solid waste management systems in the cities where water piped water systems and sludge collection and treatment facilities are implemented. These will be implemented in collaboration with the Municipalities and it could be advantageous to combine the sludge collec tion investments with setting up parallel systems for solid waste management. The TA consultant proposed for the sanitation activities could be given responsibilities also for the solid waste since the technological challenges and the clients (Municipalities and Counties) are the same. There are no ongoing projects in the cities and the proposed project is based on the approach being used in Mon rovia. The budget for the combined programmes for solid waste in Monrovia and the 9 cities and the avail able funding according to the information collected from the Government of Liberia (GOL) budgets and DPs are presented in Table 3-6. The figures indicate a substantial funding gap, since the continu ation of the EMUS project and the implementation of the proposed programme for solid waste in the 9 cities are new and unfunded activities. Table 3-6: Funding needs and available funding for Solid Waste 3.6 Urban SIP – Summary and Conclusions The Urban SIP has been prepared on the basis of the targets set in the Sector Strategic Plan (as de scribed under Scenario 1) and the interactions with the Task Force and stakeholders on the draft SIP. It is obvious that the targets and the funding requirements are very ambitious. The funding needs and available funding is summarised in Table 3-7 and Figure 3-1 below. The Urban SIP and the sce nario analysis in the SIM will form the basis for discussions on realistic ambition levels and for exam ple if: 1. The urban water investments should focus on Monrovia and the already planned Cities and fo cus on ensuring that the many existing point sources in the towns are delivering safe water – and not include additional cities. 2. The substantive issues around how best to address the urban sanitation issues in Monrovia and also in the Cities 3. The responsibilities for supporting the Municipalities and County administrations in the provi sion of services in the Cities – and how the water sector can best support the decentralisation Funding Needs (kUSD) Status 2012/13 2013/14 2014/15 2015/16 2016/17 Total Monrovia EMOS Project implementation Ongoing 2 780 2 100 2 150 3 150 5 050 15 230 Primary SW Collection in Poor Communities Ongoing 1 484 804 471 0 0 2 759 Collection Centers & Educational Campaign Ongoing 500 720 730 31 0 1 981 Solid waste management in 9 cities (Invest) Proposed 0 118 470 1 410 353 2 350 Solid waste management in 9 cities (O&M) Proposed 1 170 1 170 1 170 1 170 1 170 5 850 Total Funding Needs 5 934 4 912 4 991 5 761 6 573 28 170 Available funding(kUSD) Funder Landfill GOL 1 120 0 0 0 0 1 120 Collection Centers & Educational Campaign GOL 500 720 730 31 0 1 981 EMUS Project LRTF 2 780 2 000 0 0 0 4 780 Primary SW Collection in Poor Communities BMGF 1 484 804 471 0 0 2 759 Total Available Funding 5 884 3 524 1 201 31 0 10 640 Funding Gap (kUSD) 50 1 388 3 790 5 730 6 573 17 530 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 28 of 65 without being critically dependent on general capacity building and implementation managed by other sectors. 4. The streamlining and fast tracking of service delivery – especially in relation to the urgently needed improvements in services in Monrovia – and the proposed programme management assistance to the urban sector. Table 3-7: Urban SIP funding needs and available funding Figure 3-1: Urban SIP funding needs and available funding Funding Needs (kUSD) 2012/13 2013/14 2014/15 2015/16 2016/17 Total Water Monrovia 3 224 9 021 12 271 18 704 15 287 58 507 Sanitation Monrovia 200 4 423 5 263 12 963 14 172 37 020 Water Cities 148 3 529 17 280 38 369 11 570 70 897 Sanitation Cities 0 687 2 817 7 717 1 863 13 084 Solid waste 5 934 4 912 4 991 5 761 6 573 28 170 Total Urban SIP Funding Needs 9 506 22 572 42 621 83 514 49 464 207 678 Available funding 2012/13 2013/14 2014/15 2015/16 2016/17 Total Water Monrovia 3 224 7 866 9 293 7 750 3 620 31 753 Sanitation Monrovia 200 1 332 1 332 1 034 41 3 939 Water Cities 0 601 6 678 7 302 3 674 18 254 Sanitation Cities 0 67 333 266 0 666 Solid waste 5 884 3 524 1 201 31 0 10 640 Total Urban SIP Available Funding 9 308 13 390 18 836 16 383 7 335 65 252 Funding Gap 198 9 182 23 785 67 131 42 130 142 426 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 29 of 65 4 Rural SIP 2012-17 The Rural SIP 2012-17 aims at providing access to water for 67% and to improved sanitation for 52% of the rural population by 2017. The SIP includes a description of the key issues facing water and sanitation services in rural areas related to capacity for implementation; demand driven approach and household implementation; sustainability, cost recovery and operation and maintenance, pri vate sector involvement and cost estimates. Current implementation is characterised by NGO driven programmes and significant implementation by households for systems such as shallow wells, rainwater harvesting and latrines. The implementa tion capacity exists in the ongoing NGO-programmes, however a major shift in implementation ca pacity between the counties is needed to implement a coherent national programme. A key issue for the future implementation capacity is thus how to best utilise the present NGO implementation ca pacity and gradually change the mode of operation to achieve the longer term vision of Counties planning and managing water and sanitation implementation and implementation through the local private sector contractors and NGOs. The clarification of the issues is followed by a detailed description of the implementation modalities and investment plans for ‘Domestic Water Supply’ and ‘Domestic Sanitation and Hygiene’. The estimated funding requirements for the improvements are 67mUSD and 47mUSD is available from the existing funding leaving a funding gap of 20mUSD. Implementation Capacity: Current implementation is characterised by NGO driven programmes with funding from DPs (90%) or own funding (10%) and very minor implementation by central gov ernment (<10% of water points) and significant implementation by households for systems such as shallow wells, rainwater harvesting and latrines. The NGO programmes have grown out of previous emergency programmes in internally displaced camps. The process of decentralising WASH responsibilities to Counties is ongoing and presently there is limited implementation capacity for rural WASH in the Country administrations. The present level of implementation based on the data collected from implementers is shown in Figure 4-1. Figure 4-1: Water points constructed or rehabilitated in 2011/12 0 50 100 150 200 250 Constructed/Rehabilitated Water Points - 2011/2012 RHDW NHDW RBH NBH Legend: RHDW: Rehabilitated hand dug well NHDW: New hand dug well RBH: Rehabilitated borehole NBH: New borehole Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 30 of 65 The implementation capacity needed to achieve the targets for the 5yr planning period is similar to the existing implementation capacity; however the present implementation is concentrated in the counties with a large emergency response for the 2011 Cote d’Ivoire emergency and the future im plementation aiming for equity between the counties is very different. A major shift is needed e.g. increase in Bong, Grand Bassa and River Cess and a substantial decrease in Grand Gedeh, River Gee, Maryland and Grand Kru. A key issue for the future implementation capacity is thus how to best utilise the present NGO im plementation capacity and gradually change the mode of operation to achieve the longer term vision of: i) Counties planning and managing water and sanitation implementation; ii) Funding for county implementation through an appropriate financing mechanism and other sources e.g. contributions to counties from concessions; and iii) Implementation through the local county or district based pri vate sector contractors and NGOs. Sustainability is perhaps the most important single consideration in rural WASH since facilities that quickly fall into disrepair represent a significant waste of funding, destroy user morale and make achieving the Millennium Development Goals (MDGs) a distant dream. There are many dimensions to sustainability including technical, environmental, social, economic and financial sustainability. In particular gender issues are important for sustainability of individual schemes and sustainable schemes lead to reduced poverty with increased ability to fund O&M. In the context of the SIP, sus tainability is, however, primarily an issue about financial sustainability for O&M and ensuring clear ownership and management of the facilities. It is assumed that the vast majority of the facilities will be non-piped and will be owned and managed by communities or households. Private Sector Involvement in rural WASH is foreseen to be the usual one of design and construction through contracts as well as to provide installation and maintenance services for hand pumps. The private sector will not be used for commercially driven concession investments; however they may have a role to play in the management, operation and maintenance of any piped schemes that are identified. Cost Estimates are based on forecasts for the future technology mix (proportion of population served by wells/ boreholes/ protected springs/ piped systems) and the unit cost per installation or per person. The future technology mix is estimated based on the available hydrogeological infor mation on potential for shallow groundwater (wells) or deeper groundwater (boreholes); estimates on the availability of springs and data on town settlements in the rural areas where piped systems might be the most appropriate technology. The unit costs are based on the UCET that provide cost estimates per technology in different areas of the country depending on groundwater potential, and distances etc. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 31 of 65 4.1 Domestic water supply The highlights of the SIP 2012-17 for Domestic Water Supply in rural areas are: The 2017 target of access to water for 67% of the rural population will be achieved by a programme of repair and rehabilitation of existing non-functioning water points and implementation of new hand dug wells, boreholes, spring protections and pipe systems. The rural water programme will fo cus on capacitating the County WASH Teams to plan, oversee the implementation and monitor the provision of rural water services, and capacitating the national Departments in MPW and MOHSW to provide guidance and support to the County Teams. The vision is that implementation will be funded mainly from a common financing mechanism; that NGOs will continue to play a significant part in delivering projects; that counties will lead on delivery and that private companies will carry out much of the actual construction. Communities will contrib ute at least 10% of the construction cost and be responsible for all operation and maintenance costs. The AfDB funded design of the rural programme is expected to define the detailed implementation strategies and funding mechanisms and to facilitate continued activities and progress in rural WASH, it is suggested to implement a number of pilot activities that can, on one hand provide valuable ex periences that will inform the formulation of the comprehensive rural programme and, on the other hand continue to provide the much needed improved facilities to the rural population. The following specific programmes are proposed: 1. Pilot county capacity building programme 2. Development of private sector capacity for hand drilling of shallow wells 3. Development of guidelines for implementation of spring catchments 4. Capacity building programme for hand dug well construction 5. Tendering of drilling contract for 50 boreholes The estimated funding needs for rural water supply are 54mUSD and 43mUSD is available from the existing funding leaving a funding gap of 10mUSD. Ongoing Projects: the planned NGO activities are declining compared to the present implementation level according to the data collected from NGOs; however this is only a reflection of the planning horizon for most of the organisations and not that necessarily the activity level will be declining. The National Rural Water and Sanitation Programme in the MOPW is implementing a limited number of dug wells and institutional latrines in cooperation with the Counties. Proposed pilot activities The start of the AfDB funded design of the rural water programme has been long delayed compared to the original schedule and to facilitate continued activities and pro gress in rural WASH, it is suggested to implement a number of pilot activities that can, on one hand provide valuable experiences that will inform the formulation of the comprehensive programme and, on the other hand continue to provide the much needed improved facilities to the rural popula tion. The following specific programmes are proposed: 1. Pilot county capacity building programme 2. Development of private sector capacity for hand drilling of shallow wells Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 32 of 65 3. Development of guidelines for implementation of spring catchments 4. Capacity building programme for hand dug well construction 5. Tendering of drilling contract for 50 boreholes Summary of Expenditure and Funding for rural water: The SIM is used for estimating the invest ments that are needed in new water facilities and rehabilitation and replacement of existing sys tems. The funding for rural O&M is included in Table 4-1 according to the estimates from the UCET and the O&M costs are assumed to be covered by the communities. The available funding include the user payment for O&M and the community contributions of 10% to the investment costs as well as data from the GOL budgets and from the DPs and NGOs on the capital and donor budgets. Infor mation is also included on the concession funding for County development activities assuming that the Counties will use 10% of the funding for rural water. The estimates indicate that there is a con siderable funding gap of about 25% for rural water – it should be noticed that the data does not indi cate any GOL capital budget for rural water, after the 2012/13 FY. Table 4-1: Rural Water Investments 4.2 Domestic Sanitation and Hygiene The highlights of the SIP 2012-17 for Domestic Sanitation and Hygiene in rural areas are: The 2017 target of access to improved sanitation for 52% of the rural population is ambitious in view of the present coverage estimated at 15%. The target will be achieved by a comprehensive programme for implementation of the CLTS ap proach led by the County WASH teams with support from the MOHSW at national level and sup ported by the ongoing NGO programmes. The private sector will manage Sanitation Centres and dis tribute and sell SanPlats. The demand driven CLTS approach implies that subsidies will not be pro vided for household or shared domestic sanitation. Communal facilities for domestic sanitation will not be provided however public and institutional sanitation for schools and health centres will be an important part of the programme. The estimated funding needs for rural sanitation and hygiene are 16mUSD and 6mUSD is available from the existing funding leaving a funding gap of 10mUSD. Investment in Rural Water (kUSD) 2012/13 2013/14 2014/15 2015/16 2016/17 Total 5yr Investment in new water points 3 672 3 784 3 888 3 985 4 074 19 404 Investment in rehabilitation of water points 1 117 1 490 1 862 1 490 1 490 7 449 Investment in replacement of water points 2 097 2 198 2 301 2 404 2 507 11 506 Investment in Community Capacity Building 816 932 1 055 1 082 1 160 5 046 Funding for emergency projects 770 756 729 627 554 3 436 Rural O&M 1 349 1 432 1 518 1 607 1 699 7 604 Total Rural Water Funding needs 9 821 10 593 11 353 11 195 11 483 54 445 Available funding User Payment for O&M in rural areas 1 349 1 432 1 518 1 607 1 699 7 604 User Contribution to Capital Cost 689 747 805 788 807 3 836 Government Capital and Recurrent 287 0 0 0 0 287 Donor Grants 4 774 2 325 5 100 4 163 0 16 362 County Funding (concessions) 1 550 1 938 2 325 2 674 2 941 11 427 NGO Funding 806 806 806 806 806 4 028 Total Sector Funding 9 454 7 247 10 554 10 037 6 253 43 544 Funding Gap 367 3 346 799 1 158 5 230 10 901 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 33 of 65 Targets and Assumptions: the Sector Strategy has set a target-coverage of 52% by 2017 for im proved sanitation facilities in rural areas and this target has been used in the SIP. The strategy as sumes that a demand driven CLTS approach will work in a relatively short timescale and this is a very BIG assumption and the sanitation coverage targets are very ambitious. Ongoing Projects: there are considerable sanitation and hygiene activities ongoing in Liberia mainly through the cooperation with NGOs Proposed Projects: the planned AfDB design of the rural water supply and sanitation programme is the main planned project that will develop the detailed strategy for the implementation of hygiene and sanitation promotion in rural areas. The programme is expected to result in guidelines for an enhanced WASH county team programme and a ‘Sanitation strategy’ that will be assessing the rele vant technologies and community acceptance of different technologies – development of guidelines and methodologies for CLTS and hygiene education; customising international tool kits for hygiene and sanitation promotion to Liberian context. Since the start of the AfDB programme has been de layed compared to the original schedule, it is proposed (in-line with the suggestions for rural water) that a pilot programme for two to three counties should be implemented to test and gain experi ence in how the counties can be leading the water, sanitation and hygiene activities in an integrated manner. The Pilot Project no 1: county capacity building programme as described above should include all the aspects of sanitation and hygiene promotion including the establishment of sanitation centres and monitoring the progress of the CLTS approach. The MOHSW/ Division of Environmental and Oc cupational Health (DEOH) would play a lead role in developing the guidelines and supporting the NGO tasked with carrying out the pilot programme. Summary of Expenditure and Funding: the funding needs and the available funding for rural hygiene and sanitation are shown in Table 4-2. The estimates are based on the budget estimate for CLTS trig gering and monitoring per community and estimates on the number of communities to be covered in order to reach the targets The available funding is based on the information from GOL budgets and the data collection from DPs and NGOs. The main part of the NGO funding originates from DP grants (listed under Donor Grants) and only the NGO funding from own sources are shown in the line with ‘NGOs’. Table 4-2: Funding needs and available funding for rural hygiene and sanitation Investment in Rural Hygiene and San (kUSD) 2012/13 2013/14 2014/15 2015/16 2016/17 Total 5yr Investment in CLTS triggering 2 912 2 857 2 807 2 763 2 723 14 062 County/ district level promotion of sanitation centres 291 286 281 276 272 1 406 National level development of guidelines and monitoring 146 143 140 138 136 703 Total Rural Sanitation Funding needs 3 348 3 285 3 229 3 177 3 131 16 171 Available funding GOL 71 0 0 0 0 71 Donor Grants 1 670 688 1 700 1 388 600 6 045 NGOs 0 0 0 0 3 3 Loans 0 0 0 0 0 0 Total available funding 1 741 688 1 700 1 388 603 6 119 Funding Gap 1 608 2 598 1 529 1 790 2 528 10 052 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 34 of 65 The funding gap is approximately 70% and discussions are needed on the feasibility of the sanitation and hygiene plan considering the comments above on the ambition level for the hygiene and sanita tion activities. 4.3 Summary and Conclusions – Rural SIP The summary of the funding needs and available funding is shown in Table 4-3 and in Figure 4-2. There is an obvious funding gap and the main issues for discussion and clarification are: 1. The implementation issues and the programmes for capacity building at national and county level. The issues around the responsibilities for water and sanitation services in the Cities are linked to the responsibilities for piped systems to the rural towns. 2. How best to bridge the gap in timing of the formulation of the rural water and sanitation pro gramme under the AfDB support and the feasibility of the proposed programmes in rural water (pilot projects for NGO facilitation of continued implementation and capacity building at county level; hand drilling; spring catchments; borehole drilling). 3. The ambition level for rural sanitation – achieving the very high increase in coverage will be a miracle – how best to present the programme balancing between a realistic programme and paying adequate attention to sanitation and hygiene Table 4-3: Rural WASH Funding Needs and Available Funding Figure 4-2: Rural WASH Funding Needs and Available Funding Rural WASH (kUSD) 2012/13 2013/14 2014/15 2015/16 2016/17 Total 5yr Rural Water 9 821 10 593 11 353 11 195 11 483 54 445 Rural Hygiene and Sanitation 3 348 3 285 3 229 3 177 3 131 16 171 Total Rural WASH Funding needs 13 170 13 878 14 581 14 372 14 615 70 616 Available funding 2012/13 2013/14 2014/15 2015/16 2016/17 Total 5yr Rural water funding 9 454 7 247 10 554 10 037 6 253 43 544 Rural Hygiene and sanitation funding 1 741 688 1 700 1 388 603 6 119 Total available funding 11 195 7 935 12 254 11 424 6 856 49 663 Funding Gap 1 975 5 943 2 328 2 948 7 759 20 953 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 35 of 65 5 Institutional Water Supply &Sanitation The SIP 2012-17 for Institutional Water and Sanitation include investments in water and sanitation facilities in schools and health centres in rural and urban areas as well as public toilet facilities in public places such of market places, bus-stops, official buildings in the rural towns (public facilities in Cities are included in the Urban SIP). The targets aim at full coverage for schools within a 10 year period and implementation of 2 new clinics per county per year in accordance with the MOHSW infrastructure plans, implying a 15 year period to reach a coverage with health centres level 1 within 10km walking distance serving max 3500 people. The target for public facilities is to have a minimum of 1 facility per district and a max imum of 3000 persons per facility. The general approach is to provide these services in a similar way to the water points, i.e. the com mon Fund together with the infrastructure budgets in MOHSW for clinics and MoE for schools will contribute to the capital cost but the beneficiary institution/ users will pay all of the operation and maintenance costs. Cost recovery mechanisms with user payment are expected to be established for the public facilities at markets and bus-stops. The estimated funding needs for Institutional Water and Sanitation are 48mUSD and 11mUSD is available from the existing funding leaving a funding gap of 37mUSD. Targets: institutional water supply and sanitation include i) public facilities in markets and public places; school facilities for pupils and teachers and facilities at health centres for patients and staff. In the absence of data on public facilities in rural areas, it is assumed that there are no facilities at the market places, bus-stops and official buildings in the rural towns and communities. The targets are variables in the SIM and the investment estimates presented below are based on the target of at least one public facility per district in 2017 with a maximum of 3000 persons per public facility using the population in the rural towns only as the target population. The water point mapping identified the schools without water facilities and the investment esti mates presented below assumes that these schools also do not have sanitation facilities. 10 years has been used as the target for achieving full coverage with water and sanitation facilities in all schools. The investment estimates include new facilities in all schools identified without facilities and replacement of the existing facilities in all schools according to the normal lifespan for water and sanitation facilities. The MOHSW aim at clinics within a walking distance of 10 km and 3,500 persons for Clinics level 1 as identified in the ‘Essential Package for Health’. These targets have been used to estimate the re quirements for new health facilities combined with the MOHSW data on existing facilities without water facilities. The Ministry aims at implementing 2 new clinics per county per year and this implies a 15 years implementation programme to achieve the targets for walking distance and maximum persons per facility. Summary of Expenditure and Funding: the estimates of the investment requirements for institu tional facilities are presented in Table 5-1. Data for clinics and schools is not segregated into the ru Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 36 of 65 ral and urban areas, so the investments in facilities for schools and clinics are for all institutions in both urban and rural areas while the public facilities are only for the rural towns and investment re quirements in the 24 cities is included in the urban SIP document. Table 5-1: investment requirements for institutional facilities Investment in Institutional Facilities (kUSD) 2012/13 2013/14 2014/15 2015/16 2016/17 Total 5yr Public Latrines (Rural Towns) 130 708 686 737 789 3 050 Schools Water and Sanitation 6 286 6 538 6 791 7 043 7 295 33 953 Clinic Water and Sanitation 2 006 2 086 2 170 2 257 2 347 10 866 Total Institutional Funding needs 8 422 9 332 9 647 10 036 10 431 47 868 Available funding Ministry of Health funding for Clinics 2 006 2 086 2 170 2 257 2 347 10 866 Total available funding 2 006 2 086 2 170 2 257 2 347 10 866 Funding Gap 6 416 7 246 7 477 7 780 8 084 37 003 Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 37 of 65 6 Capacity Development Plan The SIP 2012-17 includes the funding needed for implementation of the WASH Sector Capacity De velopment Plan (CDP). The CDP covers the strengthening of human and institutional capacities at national and sub-national levels as well as in the private sector, media and education and training institutions to ensure capacity and a conducive enabling environment for WASH implementation. The CDP is designed to be an integrated part of the implementation of investment programmes for improved service provision as well as including parts with a longer term focus such as capacitating the education sector to provide for the WASH sector human resource needs. The estimated funding needs for implementing the CDP is 74mUSD with 6mUSD funded through the AfDB Urban programme leaving a funding gap of 68mUSD. The WASH Sector Capacity Development Plan was developed with support from United Nations Children’s Fund (UNICEF) and support from Japan for the Capacity Needs Assessment in parallel with the formulation of the SIP. The resulting plan and costing is presented below. Table 6-1: Summary of the costs of the CD plan Major Activities Total costs (USD) 1 To strengthen human capacities of GoL at national level 5,631,250 2 To strengthen institutional capacities of GoL at national level 29,279,712 3 To strengthen human capacities of GoL at sub-national level 1,898,000 4 To strengthen institutional capacities of GoL at sub-national level 23,215,700 5 To strengthen GoL human and institutional capacities through pilot pro jects 3,395,000 6 To strengthen human capacities of CSOs, the private sector and the me dia 210,000 7 To strengthen institutional capacities of CSOs, the private sector and the media 700,000 8 To strengthen the enabling environment (laws, regulations, policies, strategies, guidelines, advocacy) 2,475,000 9 To strengthen education and training institutions and develop new or improved courses 7,380,000 Grand total 74,184,622 Please refer to the WASH Sector CD Plan, 2012-17 for full details Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 38 of 65 7 Sector Financing This chapter presents first the Government of Liberia procedures for preparation of the Medium Term Expenditure Framework (MTEF) and the annual budgets and thereafter the modalities in place for funding from concessions for County development activities since these are expected to present an increasing source for financing the Counties’ WASH activities. The information available on the current budgets for the next 5 years from the Government and Development Partners for WASH ac tivities are presented. The present funding is approximately 25mUSD per year and the identified funding for the 5 year period from the 2012/13 to the 2016/17 Financial Year is approximately 70mUSD. Lastly this chapter presents the fundraising possibilities for financing the SIP with information on the global donor environment, the different aid modalities and techniques for mobilising finance as well as some guiding remarks for Liberia WASH finance seekers. The pertinent issues for financing the SIP include: 1. Pro-active participation in the MTEF planning and budgeting process to ensure that the WASH objectives are well represented; 2. Presentation of ‘implementable’ programmes to potential financiers; 3. Consensus on the institutional roles and responsibilities and focus on sustainability and prospects for cost recovery; 4. Ensuring transparency and accountability in management of procurement, financial management and quality control of implementation. 7.1 Budget Preparation in the context of a MTEF The Medium Term Expenditure Framework (MTEF) approach to planning and budgeting links the budget preparation activities to the objectives defined in development policies and reforms. To im prove likelihood of success of reforms, MTEF includes extensive and intensive consultations (and consensus building) among the Ministry of Finance (MOF) (Budget Office) and the various ministries and agencies. It is therefore said that MTEF marries a top down approach beginning with the an nouncement of the MOF of its medium term macro-economic and fiscal projections and the re sponse by the activity based planning done by the various ministries and agencies. The result of this process is the compilation, by the MOF, of a Draft Medium Term Budget Framework Paper (BFP) with inputs from all ministries and agencies, which becomes a key reference for the preparation of the Annual Budget. 7.1.1 Linking Policies and Strategies to Sector Budget Formulation At the core of MTEF is the need to link long, medium and short term policies, goals and objectives, at the national and sector levels. Likewise, links should also be explicit between national and sector priorities at each period in time. (i) Long Term – At the national level, Poverty Reduction Strategy (PRS) II (the Agenda for Trans formation - a five year national strategy for development) is aimed at setting the stage to Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 39 of 65 achieve the Liberia Rising 2030 vision through three very explicit strategies: i) Investment in in frastructure, ii) Investing in people; and iii) Investing in institutions, especially to promote pri vate sector development and foster economic growth. At the sector level, the WASH sector strategy sets the strategy for the next five years, and the SIM as described above can assist in assessing the investments that are needed to achieve the Liberia Rising 2030 vision. The de tailed SIP 2012-17 plans and funding needs should inform the MTEF planning and budgeting process. Figure 7-1: Linking Policies, goals and objectives to budget formulation (ii) Medium Term – Once long term issues are clarified or solved in relation with the water and sani tation sector, focus has to be placed on the medium term, which in the context of MTEF is the next three fiscal years. At the national level, the MOF compiles a draft National Medium Term BFP based on the review of the performance of the last two fiscal periods and the expected outturns of the current Financial Year (FY). The draft BFP contains proposed budget for the next fiscal and projections for the next two following years. This draft national BFP includes funding for activities/ projects to be implemented in the next three years and which have to be aligned with achieving long term national development goals and objectives. The BFP is compiled based on the Budget Policy Notes (BPNs) prepared by each sector; i.e., each sector prepares its own BPN, where it reviews the performance of last two years and expected outturns of current year and proposes activities/ projects to achieve sector goal and objectives. (iii) Short Term – The Annual Budget is prepared using the MTEF. As a result, we have the Draft An nual Budget that reflects the annual budget allocations of all ministries and agencies for the new Fiscal Year taking into account long and medium term goal and objectives. In the case of Liberia the Draft Annual Budget is complemented with a Public Sector Investment Plan. It is based on this documents that Liberian ministries and agencies will get the funding for their re current and investment activities. Figure 7-2: The Budget Sectors The WASH sector appears in four different budget sectors and since this is not very rational for consistent sector plan ning, consideration for a WASH budget sector could be pre sented to Government. Solid Waste Management is under the Municipal Government Sector, Hygiene and Quality of Drinking Water is under the Health Sector (MOHSW), Urban Water Supply, Sewerage, and Waste Water Treatment Plants (LWSC) as well as Liberia Hydrological Services (LHS) is in the Energy and Environment Sector, Rural Water Supply is in the Infrastructure and Basic Service Sector (MOPW). Sector Budget Policy Note (BPN): Goals & Objectives + activities/projects Detailed Spending Agency Budgets MTEF + National BFP ANNUAL BUDGET Long Term Medium Term Agenda for Transformation (PRSP-II) Sector Strategic Plans (e.g. WS&S+H strategy) N a tio n a l Short Term (An nual) S e cto r 1. Pub Admin 3. Transp & Acc. 4. Sec&Rule Law 6. Soc Dev Servic 7. Education 9. Agriculture 11. Ind. & Comm 2. Municipal Gov. 5. Health 8. Energy & Envir 10. Inf + Bas Serv Solid Waste Mng Hygiene & Q of DW Urb W+S+WWTP Rural Water & San Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 40 of 65 7.2 Implementation Capacity Issues The WASH Sector budget can be increased, provided it contributes to PRS-II (agenda for Transfor mation), but capacity to implement budgets is a major issue. At present, the Government Invest ment Projects to be implemented during the current Fiscal Year amount to USD 249 million and in general implementation capacity is regarded as a constraint for effective implementation. The use of PPPs in a pragmatic way to deliver results e.g. the use of ‘System-Planning – System-Design-Procure and Supervise’ contracts or ‘Design-Build-Operate’ contracts. The options of involving the private sector in overall implementation management combined with design and build contracts is pro posed in the SIP 2012-17 as an option to ensure that adequate implementation capacity is available for realising the sector investment plans. 7.3 Funding Modalities Urban: the likely funding sources for investments in urban water and sewerage infrastructure will be the Government capital budget supplemented with loans from development banks. With the pre sent development stage in Liberia, it is possible for the Government to attract financing with conces sional terms from development banks such as the World Bank, AfDB, KfW and the Arab Banks. Com paratively commercial loans and private sector finance will be expensive and financing the major investments that are needed in Monrovia and the Cities from commercial sources will have the ef fect of either postponing the aim of cost recovery for urban services or result in higher tariff increas es 5 . Rural Funding for project implementation in rural areas is envisaged to be available in two main mo dalities:  Government/ County Management of Funding: Funds provided from the common Fund chan nelled to the Counties through the County Development Fund (CDF) or the funding mechanism established for the development funds available from concessions. Funding and implementa tion managed by the County WASH Team  NGO Management of Funding: Funds provided directly to (or by) an NGO – projects planned and implemented in cooperation with the County WASH Team but funding and implementation managed by the NGOs. 7.4 Available Funding for WASH Information on available budgets for the 2011/12 Financial Year and the immediate 5yr planning period was collected from the Government of Liberia and Development Partners as illustrated in Figure 7-3. The diminishing funding in the later years only reflects the limited planning horizon for the respective funding agencies and should not be taken as an indication of reduced sector funding. The chapters describing the 2012-17 SIP (5 Urban and 6 Rural) compare the available funding to the requirements for meeting the sector targets for the medium term until 2017. 5 The financing module in the SIM can be used for detailing the analysis of different financing options (grants, loans, bonds etc.) for urban water services Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 41 of 65 Figure 7-3: Available Funding for WASH 7.5 Fundraising Possibilities The global donor environment: Concessional bi- and multi-lateral donor assistance to the water and sanitation sector has been US$ 2.7 billion per year worldwide and 85% of bilateral assistance is un der the control of just 10 countries and these same countries are members of and have influence on the major multi-lateral donor agencies. The following characterises the assistance from the top do nor countries:  France champions private sector participation in the water and sanitation sector.  Japan champions concessional support for sanitation and waste water treatment plants.  Germany champions concessional support for urban water supply, sewerage, and waste water treatment plants and urban solid waste management.  The USA can bring support in any area. Particular advantage are the consultant services and pro ject management expertise.  The Netherlands have developed advanced low cost waste water treatment technologies and drinking water production technologies.  Nordic countries have championed donor alignment with host countries initiatives. Donor aid modalities: most donor aid agencies offer grants and loans to developing countries that can be channelled using the following modalities.  Project based finance – With a clear project development objective and based on feasibility studies, a project is funded and implemented as a separate (from the government) “corporate” entity with full financial management autonomy and subject to well defined financial manage ment and auditing rules.  Basket funding – Suitable for the implementation of many small town projects, for which a group of donors can constitute a Basket Funding mechanism.  Program based funding – A “new” development aid modality being introduced by the World Bank under the name of Program for Results (P4R) or Sector Budget Support or as practiced in some countries by the EU and some bilateral donors. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 42 of 65 Techniques for mobilizing finance: from a development aid mobilization perspective, the major hur dles will be building donor confidence and complying with donor financing criteria for the sector. The techniques to build up donor confidence and to comply with financing criteria include:  Strategic sector investment planning and financing techniques – presentation of big picture sec tor investment needs and credible financing options, will be a good starting point.  Project identification and preparation techniques – Donor agencies will need to have tangible projects for finance to be committed. Project preparation techniques include the development of logical framework.  Project financial management techniques – Which show how the project will be managed to comply with fiduciary conditions to the satisfaction of donor agencies.  Project implementation plan and project management techniques – Project implementation is at the core of successful donor funding.  Public financing management techniques – Project implementation in most cases will need country financial contributions – integration in the Public Financial Management/ MTEF plan ning cycle is important. Guide to the Liberian WASH finance seekers: In general, World Bank practices are highly regarded by all donors. Hence, preparation of projects according to Bank Practices can be a guarantee of suc cessful seeking of most donors finance. Moreover, sound projects can only be prepared as part of programs which in turn should be part of National Sector Policies and Strategic Planning exercises. Steps needed by the water sector to facilitate finance for achieving the WASH SIP will include: 1. Pro-active participation in the MTEF planning and budgeting process to ensure that the WASH objectives are well represented in a coherent manner towards the GOL/ Ministry of Finance. 2. Presentation of ‘implementable’ programmes to potential financiers. This SIP and the Capacity Development Plan (CDP) is a starting point defining what needs to be done to achieve the tar gets but a clear coordinated sector programme management support to address the capacity constraints in the sector is needed as further described in Chapter 8. 3. Consensus on the institutional roles and responsibilities. All financiers place emphasis on the sustainability and clear long-term institutional responsibilities and prospects for cost recovery are important – especially related to decentralisation and the roles of local government authori ties in management of services. The cost recovery issues and payment for services are also per tinent when exploring the prospects of private sector participation in the WASH sector. 4. Financiers place emphasis on transparency and accountability and therefore ability of the GOL to ensure transparent management of procurement, financial management and quality control of implementation will be of great importance in the quest to ensure adequate finance for im plementation of the SIP and the CDP. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 43 of 65 8 Comments on Action Plan for Implementation The final chapter of the SIP 2012-17 includes remarks on the implementation arrangements to achieve the two closely interlinked objectives: i) capacity development and ii) implementation. The overarching and longer term objective is to capacitate the Liberian institutions in the WASH sector to fulfil their future mandates (as these may evolve in the sector reform process) while ensuring that implementation takes place so that the Liberian people get much needed improvements to water and sanitation services fast. It is recommended that immediate steps are taken by the NWSHPC and specifically the ‘Capacity Development Task Force’ and the ‘SIP Task Force’ to carry out a facilitated process of developing the TORs for the different aspects of the programme management support that is defined in the SIP and the CDP. The aim should be to reach consensus on a coherent approach to development of the WASH sector. The other and equally important aspect of the implementation of the SIP is the prioritisation and allocation of budgets by the Government of Liberia and here the water sector institutions need to take advantage of the MTEF procedures and present the Government with well-developed and doc umented plans for the WASH activities. The division of WASH in four different MTEF sectors presents a challenge in a combined effort to promote the WASH funding. The implementation challenges are many and simplified they can be grouped into two: i) implemen tation capacity and ii) budgets. Implementation Capacity: The implementation of the rural and urban water and sanitation sub sector investment plans as described in the SIP includes i) TA as part of the planned programmes; and ii) various suggestions for TA for the additional projects proposed in the SIP for Implementation Management such as: A Consultancy to form a WASH Sector Capacity Development Support Team The Urban/ Monrovia Water and Sanitation ‘Programme Management Consultancy’ include sanitation master plan and implementation management of the different water and sanita tion projects in Monrovia The TA/ Consultancy assistance to manage the implementation of the Cities Hygiene and Sanitation Activities covering hygiene education, promotion of household latrines, commu nal and public latrines, septic tank emptying facilities and sludge treatment and solid waste. The proposed County WASH Capacity Development programme for piloting the roles of cen tral and county governments in WASH and continued implementation of water facilities and CLTS The planned AfDB funded design of the Rural Water Supply and Sanitation Programme Study and subsequently the TA required for full implementation of a rural programme A number of other smaller TA assignments e.g. as needed to implement the Capacity Devel opment Plan and the pilot projects suggested for the rural water programme. The possibility of combining all or some of these into one comprehensive Umbrella WASH Support Team needs to be assessed. There are obvious synergies and savings in one programme and there Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 44 of 65 might be advantages such as specific institutions as home for the individual programme and in creased focus and specialised assistance in separating some of the aspects. There are two closely interlinked objectives: i) capacity development and ii) implementation. The overarching and longer term objective is to capacitate the Liberian institutions in the WASH sector to fulfil their future mandates (as these may evolve in the sector reform process) while ensuring that implementation takes place so that the Liberian people get much needed improvements to water and sanitation services fast. Some of the pros and cons of different options are outlined in Table 8-1. Table 8-1: Pros and Cons of Combining TA Programmes Option Pros Cons One Combined Umbrella WASH Support Team – in essence a WASH pro gramme with different TA in puts to support the implementa tion of the CDP and the various sub-sector pro grammes coordi nated by one Programme Sup port Unit refer ring to the NWSHPC Well-coordinated TA with clearly defined respon sibilities Capacity Development integrated in implementa tion activities Coordination between the different national and local level institutions would benefit from an overarching TA programme that promotes the fu ture institutional roles Clear anchor as a support programme to the NWSHP Committee and the Board to promote the envisaged roles of the sector institutions Potentially could be more cost effective than hav ing separate entities The experience has shown that it is extremely dif ficult for the WASH sector to ensure timely coor dination of the different programmes funded by different DPs (e.g. the SIP in relation to the Sector Reform Study, the AfDB rural programme study, the Capacity Development Plan etc.) Too many different professional aspects to be addressed Capacity Development in WASH will be over shadowed by the magnitude of the invest ments needed in urban infrastructure and the focus on programme implementation A combined programme will overpower/ dominate the national institutions Can funding be accessed for one compre hensive programme? It would mean that all ‘eggs would be in one basket ’ – If the consultancy team have high capacity and appropriate broad skills then it will not be a problem, but if they do not have adequate skills for the broad nature of the task, then this could have negative im plications on all elements Separate Capaci ty Development Support Team – this option would have a separate team for support ing the CDP and another pro gramme man agement support team for imple mentation of the sub-sector in vestment pro grammes The skill base of the team is more likely to be stronger in capacity development for WASH, ra ther than urban implementation The capacity building of the higher education es tablishments and training is more likely to gain adequate attention The capacity development for human resource development, institutional development, enabling environment and the higher education and train ing institutions; as well as the softer aspects (sani tation and hygiene promotion) and the rural pro gramme will not be overshadowed by the major urban focus of the investments The capacity development activities are most effective when well-coordinated with implementation It could potentially be less cost effective to have several teams and several teams would need efficient coordination to be effective Separate Rural and Urban Sup port Pro grammes – this option would have separate TA support teams for the sub sectors The TA can be targeting the specific institutions responsible for rural and urban services The technologies and the size of investments are different and urban can easily overshadow rural if combined The process for the planned AfDB assistance to the rural water and sanitation programme could be separated from the rest There are overlaps in institutional responsi bilities – e.g. the supports to cities and rural towns Uncertainties in the role of LWSC in support to Cities outside Monrovia It could potentially be less cost effective to have several teams and several teams would need efficient coordination to be effective These options need to be discussed by the NWSHPC, the ‘Capacity Development Task Force’ and the ‘SIP Task Force’. A facilitated process of developing the TORs for the different aspects of the pro Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 45 of 65 gramme management support and discussing the pros and cons of combining or keeping the pro grammes separate would clarify the issues and enable the sector to arrive at the best solution. The unifying and coordinating role the ‘Umbrella’ could play is particularly important in the complex situation in the WASH sector in Liberia where different institutions in different ministries need to work in a coordinated manner and align to the decentralisation efforts of government, while at the same time reforms are going on and all the sector institutions are in need of capacity development. Some characteristics/ elements of a combined support programme could be: 1. A centrally located WASH Support Unit attached closely to the NWSHPC Secretariat and re sponsible to the Board 2. Specific TA placed in sector institutions e.g. MOHSW on CLTS implementation; MOPW on ru ral water technologies and implementation management; MCC on sanitation in Monrovia (working closely with EMUS II and FISH) etc. 3. Urban Programme Implementation Management unit responsible for procurement and im plementation management of the major urban water and sanitation projects and high level supervision of design, build and operate or other appropriate PPP implementation arrange ments 4. Specific TA responsible for driving the capacity development interventions including all ele ments (human resource development, institutional development, the enabling environment and the development of the education and training institutions) as described in the Capacity Development Plan 5. Specific programme for County Development activities supporting water and sanitation in rural and urban areas outside Monrovia Budgets: The other and equally important aspect of the implementation of the SIP is the prioritisa tion and allocation of budgets by the Government of Liberia and here the water sector institutions need to take advantage of the MTEF procedures and present the Government with well-developed and documented plans for the WASH activities. The division of WASH in four different MTEF sectors presents a challenge in a combined effort to promote the WASH funding and this will need to be dis cussed with the MOF. Liberia WASH SIP 2012 SIP Summary Report Jan 2013 Page 46 of 65 9 Detailed Information on the Liberia WASH SIP The details of the background and the estimates presented in summary above are contained in the SIP Documents and planning tools available on the WASH Liberia Web-site: http://wash-liberia.org or on the WASH SIP DVD available from the NWSHPC Secretariat. The main SIP documents are structured as follows: Volume I: Liberia WASH SIP Final Report 1. Introduction and General Approach 2. The Strategic Investment Plan 2030 3. Sector Financing 4. Urban SIP 2012-17 5. Rural SIP 2012-17 6. Institutional Water Supply & Sanitation 7. Summary of Capacity Development Plan Volume II Annexes with Detailed Data Annex II-A: County Profiles Annex II-B: City Profiles Annex II-C: Options for PPPs Annex II-D: Detailed Tables for 2030 SIP Annex II-E: Detailed Financial Flow Data Annex II-F: Detailed Data on Urban SIP Annex II-G: Detailed Data on Rural SIP Annex II-H: Detailed Data on Institutional W&S Annex II-I: Detailed Data on Capacity Development Volume III: Annexes with Sector Documentation and SIP Process Annex III-A: Sector Documentation Annex III-B: SIP Process Volume IV: Planning Tools Annex IV-A: SIM and UCET Description and User Guidelines Annex IV-B: Appraisal Tool and User Guidelines Capacity Development Plan: comprehensive information is available in: Liberia WASH sector – Capacity Development Plan, 2012-17, Final, Nov 2012; and Liberia WASH sector – Capacity Development Needs Assessment, Final, July-Oct 2012 http://wash-liberia.org/