Sanitation Financing & Investment Assessment
SNV Netherlands Development Organisation
SNV is an international not-for-profit development organisation, working in 38 countries in Africa, Asia, and Latin America. SNV specializes in supporting the resourcefulness of development actors by developing local capacities, improving performance and services, strengthening governance systems, helping to create access for excluded groups and by making markets work for the poor. Our global team of advisors use their specialised expertise in Agriculture, Renewable Energy and WASH to improve the health and livelihoods of millions of people, with a focus on the poor and marginalized groups.
The Water, Sanitation and Hygiene Sustainable Development Goals (WASH SDGs) Programme
SNV understands safe urban sanitation and hygiene services as a pre-condition for health and economic development in cities. With urban growth in Indonesia averaging 4.4% a year (World Bank, 2016), a failure to invest in urban sanitation will become a barrier for almost any development. Access to sanitation is a human right and governments are the duty bearers of progressive realisation of this right. With the Sustainable Development Goals (SDGs), Indonesia's government has committed to work towards universal access to safely managed sanitation services and improved hygiene.
Through its DGIS funded WASH SDGs programme, SNV supports local governments of Bandar Lampung & Metro Cities in Lampung Province and Tasikmalaya City in West Java Province to achieve sustainable and inclusive city-wide sanitation service in their area. In partnership with national and government counterparts, the WASH SDGs programme aims to improve the way human waste is managed by addressing the entire sanitation chain and answering different needs among the population with appropriate and sustainable service delivery models.
During the WASH SDGs programme inception phase, SNV will conduct Sanitation Financing & Investment assessment. The assessment is to deepen our understanding of Sanitation financing & Investment of city government has allocated, received and spent to achive universal and sustainable WASH services in Bandar Lampung, Metro, and Tasikmalaya.
Scope and Purpose
Given the human rights to sanitation, sanitation planning needs to ensure that no groups are marginalized or excluded from having access to the full sanitation value chain. Planning for long lasting services requires identifying and estimating the costs of sanitation service systems over their lifetime in order to understand what finances are needed and when.
Universal and sustainable access to sanitation will not be achieved if it is seen as merely a government responsibility instead of a greater public concern. Urban sanitation is complex and it need more than building toilets, a whole-systems approach is needed, from safe containment to collection, transport, treatment and re-use, as well as engagement with stakeholders and institutions operating at all levels, and need huge financial investment.
Issues about financing urban sanitation involves much more than speaking about financing the technologies, but also to address public institutions and private that need to be in place to provide sanitation service and not only a toilet.
It will never be able to provide universal access if these services are seen as a personal responsibility instead of a wider public concern.
Securing funding for wastewater service delivery was a challenge in Indonesia. Although government of Indonesia has increased and prioritised water and sanitation as one amongst the 10 program priorities budget in 2018 APBN (National Budget) to 4% (Rp. 11.9 Trillion) while last year it was included under housing and public facility budget about 2.3% (Rp. 29.7 Trilion). However, sanitation also includes solid waste and drainage which have greater visibility and compete with wastewater for the sanitation budget. Consequently, only a small portion of these sanitation budgets were specifically allocated for wastewater.
Furthermore, The Pokja Sanitasi (a multi sector sanitation working group) appointed at provincials/district/city levels to facilitate and oversee planning and implementation struggling in securing sanitation budget because local governments are required to use the 'nomenclature' provided by MOHA when identifying program and activities to be funded by the APBD.
Researchers from IRC's WASHCost program have identified the main lifecycle cost items according to "when they are incurred" in the sanitation lifecycle:
a. Initial investment - community engagement, project preparation, system design, site preparation and installation, commissioning, etc. Also includes service extensions.
b. Regular day-to-day operations - operation and maintenance of hardware , administration & management, regular community engagement, etc.
c. Intermittent maintenance - minor repairs & replacements (e.g pumps), desludging etc, required relatively short time intervals.
d. Major rehabilitations, replacement and asset renewal - major activities required at relatively long time intervals, such as repairs & replacements of aging infrastructure elements.
Recognizing 4Ts (Tariffs, Taxes, Transfers & Trade) for sanitation lifecycle costs can be seen as below:
Anticipated lifecycle costs
Major Costs
- Investment cost (upfront & rehabilitation)
Regularly occuring costs
- O & M Costs
Revenues
The 4Ts
- Tariffs : Payments from users
- Taxes : contributions from all levels of government originating from domestic taxes
- Transfers : Funds from international donors and charitable entities
- Trade : Income from sale of waste-derived products
The above lifecycle of the sanitation service, the 4Ts streams, the revenues from tariffs, government contributions, donor support and sewage reuse products (4Ts) cover the anticipated costs over the lifecycle of the service. There could be a financing gap between required costs and potential revenue streams that are available. The assessment is about identifying financial & investment in sanitation for the above 3 cities.
Approach & Methodology
A three-step process is recommended for the Sanitation Financing & Investment:
1. Desk review based on:
- Secondary information on Sanitation Financing & Investment of the 3 targeted cities.
These reviews provide preliminary conclusions on the main sanitation funding and investment related issues in the programme. This first analysis will narrow down the additional issues to be assessed in the field:
- Identify feasible and desirable sanitation infrastructure for the past 3-5 years in Bandar Lampung, Metro and Tasikmalaya cities.
- Identify financing requirement (lifecycle costs)
- Identify financing sources (4Ts)
- Identify best combination of finance sources.
2. Sanitation Financing & Investment assessments in the targeted locations will take through qualitative research and interviews, guided by the questions identified after the analysis and informed by the above lifecycle cost. The additional fieldwork and analysis taken up will provide location-specific findings on Sanitation financing & investment assessment.
Following this broader, contextual analysis, the Sanitation Financing & Investment assessment will then focus on how the identified issues affect universal and sustainable access to WASH services. This analysis will be structured along the main key focus.
3. Focus on WASH aspects for the programme:
a) What, where and how much are the current funding streams for sanitation & hygiene in Bandar Lampung, Metro and Tasikmalaya for the past 5 years (or at least 3)
b) How have these funds been used so far and why (the level and type of investment reflects the city's priorities)
c) What are the constraints and opportunities for sanitation financing at city level (considering the 4Ts)
d) Recommendations for a more efficient use of existing funds and to capture new funds
Deliverables
The expected deliverables from the selected consultants are:
1. Detailed Sanitation financing and Investment assessment protocol, including assessment questions and detailed methodology
2. Draft assessment report in English, with a 4 pages summary in Indonesian
3. A PowerPoint presentation with the key findings and recommendations, in Indonesian, to be delivered to the programme partners in the 3 selected cities
4. Finalised assessment report in English, with a 4 pages summary in Indonesian, within seven days of receiving comments
The outline of the assessment report can be seen below:
1 Scope and purpose of Sanitation Financing and Investment assessment
2 Secondary information on Sanitation Financing and Investment in the programme area
3 Baseline findings on Sanitation Financing and Investment in the programme area
4 Preliminary conclusions about key Sanitation Financing and Investment issues in the programme area
4.1 Main Sanitation Financing related issues
4.2 Main Sanitation Investment related issues
4.3 Assessment questions
5 Methodology
6 Findings :
6.1 Sanitation Financing related issues
6.2 Sanitation Investment related issues
9 Conclusions and recommendations taking into account the sub programmes ToC
Responsibilities
SNV
* Advise on the assessment set up and design, provide feedback as required;
* Pay the fee and costs related to the research;
* Assist with arranging contact with relevant stakeholders, interview, FGD, and workshop arrangement as required.
Consultants/Assessment Team
* Lead the assessment, including methodology design, implementation (primary data collection and secondary data review), and report writing;
* Involve SNV and relevant local government in the assessment process.
Timeframe
The research will be starting from 4th June 2018 and is expected to be completed by 29th June 2018.
Budget
SNV will cover consultants' service fee, travel and accommodation costs in assessment area, and activity costs according to SNV's internal policy.
The applicants are requested to submit a financial proposal in line with activities and results.
Implementation Arrangement
Consultants will report to SNV's WASH Governance expert and will work closely with the programme's Team. Payment will be made in IDR to the agreed account.
Qualifications
Assessment team should be experienced professionals with minimum 5 years' experience in Public Financing & Investment assessment in Indonesia, preferably with WASH background. The proposed team may consist of the leading researcher and supporting researchers to conduct the data collection.
The consultants must be fluent in Bahasa Indonesia and able to write report in English.
Application Process
Please send the application documents as follow:
* Application letter
* CV of the team
* Sample of a Sanitation Financing & Investment assessment report
* Technical and financial proposal
to indonesia-procurement@snv.org<
#only shortlisted candidate will be contacted#
For more information on SNV please refer to our website: www.snv.org<http://www.
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