WASHplus Weekly: Focus on WASH & Financing

Issue 199| July 17, 2015 | Focus on WASH & Financing

Thanks to Jonathan Annis of TetraTech for suggesting this week’s topic. Resources and studies in this issue include 2015 discussion forums and webinars hosted by the Sustainable Sanitation Alliance (SuSanA), a series of WASH financing briefs, and new USAID Urban Pathway manuals.


Urban Sanitation Finance – From Macro to Micro Level, SuSanA Thematic Discussion, June–July 2015. Link
This discussion forum was structured along three themes: Public Finance, Microfinance, andCity Level Sustainable Cost Recovery and was supported by six experts on sanitation finance who provided leadership and addressed questions raised by forum users. Summaries of the discussions are available here.

Webinar about Results-Based Financing (RBF) for Sanitation – April 29, 2015. SuSanA. Link
This webinar was organized under the knowledge management initiative of the Building Demand for Sanitation program of the Bill & Melinda Gates Foundation. Peter Feldman moderated the webinar with support from Pippa Scott and Pete Cranston of Euforic Services. The Stockholm Environment Institute and the SuSanA Secretariat served as hosts.


Finance Brief 1: Domestic Public Finance for WASH: What, Why, How? 2015. G Norman. Link
This report defines domestic public finance as funds derived from domestic taxes, raised at the national or local level. Domestic public finance is only part of the solution to service delivery in poor communities; user finance and donor finance are also part of the mix. Likewise, domestic public finance forms part of a wider governance puzzle: improving WASH services requires not just more government investment, but also diverse other elements including (for example) clear institutional mandates.

Finance Brief 2: Universal Water and Sanitation: How Did the Rich Countries Do It?2015. Public Finance for WASH. Link
This finance brief briefly summarizes the history of water and sanitation services provision in the U.S., the U.K., and South Korea, and considers whether this historical experience is relevant to low- and middle-income countries today.

Finance Brief 3: Municipal Finance for Sanitation in Three African Cities, 2015. B Edwards. Link (Download free but registration required)
This discussion paper reports data on municipal public finance for sanitation in three African cities, based on in-country examination of available budget records: Ga West Municipality, part of the Greater Accra conglomeration in Ghana; Maputo, capital of Mozambique; and Nakuru County in Kenya, including the city of Nakuru.

Finance Brief 4: DRM and WASH in the Financing for Development Agenda, 2015. C Fonseca. Link
This finance brief summarizes the increasing relevance of domestic resource mobilization (DRM) in supporting the ambitious goals of the Sustainable Development Agenda. It details how DRM is understood in key documents being prepared for the Financing for Development global meeting and what needs to happen to make public and private domestic finance relevant for supporting universal access to water, sanitation, and hygiene.

USAID SUWASA Pathways for Urban Water and Sanitation, 2015. SUWASA. Link
The SUWASA Pathways are tools developed to share experiences, deliver key messages, and provide links to useful resources such as manuals, case studies, templates, and reports. The SUWASA Pathways were developed by the SUWASA team in consultation with project partners including officials from government ministries, municipalities and regulatory agencies, utility managers, managers of dedicated funding units, private operators, commercial bank representatives, civil society, and development partners. The objective of the pathways is to communicate complicated reform topics in a highly accessible manner to a broad range of sector stakeholders and to assist with envisioning and sequencing reform efforts.

Developing Microfinance for Sanitation in Tanzania, 2015. S Tremolet. Link
This report presents the findings of a one-year action research project on sanitation microfinance in Tanzania funded by SHARE. It describes the activities carried out under the action research and extracts emerging lessons on the potential for developing sanitation microfinance through capacity building and networking.

Embedding Access to Finance into Sanitation Programmes: A Step-by-Step Approach, 2015. S Tremolet. Link
This report, initially commissioned by WaterAid East Africa, proposes a step-by-step approach that NGOs or other public actors could take to identify what role(s) they can play in increasing access to finance for sanitation. The step-by-step approach involves an analysis of the sanitation microfinance market.

Review of Results-Based Financing (RBF) Schemes in WASH: A Report to Bill and Melinda Gates Foundation, 2015. Castalia Strategic Advisors. Link
This report investigates what works where, and why, in results-based financing (RBF) in WASH. In so doing, it also uncovers what does not work. It aims to create guidance for future interventions and identify areas for further research. RBF is an aid mechanism where payments are made upon verification of the delivery of desired outputs, or the performance of desired behaviors.

CO2 and H2O: Understanding Different Stakeholder Perspectives on the Use of Carbon Credits to Finance Household Water Treatment Projects. PLoS One, April 2015. S Summers. Link
Carbon credits are an increasingly prevalent market-based mechanism used to subsidize household water treatment technologies. This involves generating credits through the reduction of carbon emissions from boiling water by providing a technology that reduces greenhouse gas emissions linked to climate change. This study explores the perspectives of carbon credit and WASH experts on household water treatment carbon credit projects.

Pump-Priming Payments for Sustainable Water Services in Rural Africa. World Development, Oct 2015. J Koehler. Link
Using unique observational data from monitoring hand pump usage in rural Kenya, the authors evaluate how dramatic improvements in maintenance services influence payment preferences across institutional, operational, and geographic factors. Public goods theory is applied to examine new institutional forms of hand pump management. Results reveal steps to enhance rural water supply sustainability by pooling maintenance and financial risks at scale supported by advances in monitoring and payment technologies.

Mapping Current Incentives and Investment in Viet Nam’s Water and Sanitation Sector: Informing Private Climate Finance, 2015. N Trujillo, ODI. Link
This report summarizes findings from the application of a diagnostic tool as a first step to support governments and other stakeholders seeking to design interventions to mobilize private finance for climate-compatible development. Using this diagnostic tool in Vietnam’s water and sanitation sector allowed the authors to make two distinct sets of findings that are useful for actors who want to mobilize private climate finance.

Direct Support Post-Construction to Rural Water Service Providers, 2015. P McIntyre.Link
Community-based service providers need regular, structured support that goes beyond ad hoc technical assistance. Support can come from local government, central government, NGOs, or associations of service providers, or combinations of the above. Findings suggest that effective direct support costs in the range of US $1 to $3 per water user per year.

Economic Assessment of Sanitation Interventions in Southeast Asia: A Six-Country Study Conducted in Cambodia, Indonesia, Lao PDR, the Philippines, Vietnam and Yunnan Province (China) under the Economics of Sanitation Initiative, 2015. Water and Sanitation Program. Link
The type of sanitation evaluated in this study was human excreta management at the household level, focusing on both onsite and off-site sanitation options. Basic hygiene was also included, insofar as it affects health outcomes and intangible factors. In addition to human excreta management, the study considered interventions jointly addressing human waste with domestic wastewater management (especially in urban areas) and animal waste management (in the case of biogas generation).

Triggering Increased City-Level Public Finance for Pro-Poor Sanitation Improvements: The Role of Political Economy and Fiscal Instruments, Dec 2014. J Boex. Link
The goal of this background paper is to provide a general framework for understanding the political economy and fiscal determinants of sanitation service provision by urban local governments. The paper will review existing literature to begin answering several questions: what do we expect to influence spending on local sanitation? Do different fiscal instruments have an impact on expenditure levels? Do increased local revenues lead to increased expenditures over the long term? What role do different stakeholders play in determining expenditure levels?

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