Output-Based Aid (OBA) in Sanitation

in support of

Greater Accra Metropolitan Area (GAMA) Sanitation and Water Project

presented by:

Ventura Bengoechea, Lead W&S Specialist

OBA Webinar Series 26 June 2014

Outline

• What / where is the GAMA?

• Country / Sector Context

• IDA’s GAMA Sanitation and Water Project

• Key aspects of OBA’s GAMA Sanitation Facility

• Questions & Answers

What / where is the GAMA? the Greater Accra Metropolitan Area consists of the urbanized areas of the 8 Assemblies shown in the picture plus 3 recently established: La Nkwantanang-Madina, La Dade-Kotopon and Ga Central

Ghana

Country / Sector Context (1/2) • Ghana is urbanizing rapidly, particularly the GAMA

– About 3.6 million people reside in the GAMA (plus a large population commutes to work daily); residents alone may exceed 12 M by 2050

– Nearly 50% of GAMA’s households live in 1 room of a compound house struggling to pay the typical 1 or 2-year lease in advance

• Provision of basic services has not kept up with rapid urban growth and it particularly affects the poor – Most poor people rely on public toilets at US$0.25/use (or practice

open defecation); they also buy water at 10+ times the utility’s tariff – 34% of GAMA population rely on public toilets and 8% do not use

any facility but this (Census 2010) figure seems to be underreported – Provision of toilet facilities to people living in crowded compound

houses present significant social, physical and technical challenges

Country / Sector Context (2/2) • Urban water services provided by single national utility

while sanitation services have been decentralized and fall under the responsibility of local governments (LG) – Piped water systems, where available, are considered public goods

and their costs born by the utility, other than the private connection – Only 10% of people in GAMA have access to sewerage, but it is

often clogged and there is no wastewater treatment – Therefore, most toilet facilities rely on septic tanks or other kind of

onsite sanitation that are considered private (household) goods – Sludge from septic tanks is collected by private vacuum trucks and

most of it ends up discharged untreated into the sea

• GoG is committed to improving sanitation services – this will require increasing demand for, and supply of toilet facilities

through extensive consultations and development of local PS – it will also require sustainable facilities and services

IDA Project Development Objectives

(i) to increase access to improved sanitation and improved water supply in the GAMA, with emphasis on low income communities; and

(ii) to strengthen management of environmental sanitation in the GAMA

IDA Project Development Objectives

IDA Project Components (1/2) • Component 1 - Provision of environmental sanitation and water

supply services to priority low income areas of the GAMA – MMAs will propose priority LICs to benefit from gaining access to

sanitation and water based upon agreed LIC eligibility criteria: – The type and level of toilet facilities and services and water supply

access will be agreed with each LIC through a participatory process – LIC residents will be trained to operate and/or supervise the O&M of

their own sanitation services so that they are sustainable • Component 2 – Improvement and expansion of water distribution

network in the GAMA – improve & expand distribution network to provide piped water to the

targeted people living in LICs. – investments include: installation of transmission mains, booster

pumps and any other facilities required to ensure that water reaches the targeted LICs.

IDA Project Components (2/2) • Component 3 - Planning, improvement and expansion of GAMA

environmental sanitation services – Integrated master plans for liquid waste, solid waste and drainage – critical elements in the sanitation chain to improve collection, treatment

and disposal of wastewater and septic sludge • Component 4 – Institutional Strengthening

– National government: • Strengthen capacity of EHSD at the MLGRD to provide assistance to MMAs • TA to LGPCU to coordinate and support implementation by MMAs and overall project • TA to GWCL to establish unit to deal w/ LICs

– Local Government: • Strengthen capacity of WMDs of GAMA MMAs on integrated planning, procurement,

project management, enforcement of regulations and oversight of service provision

– Other • Support the market development of private sector in the sanitation business • Support the establishment of social accountability to promote good performance

Coordination / Partnerships • GoG-Development Partners W&S Working Group

– Permanent group to coordinate DP’s activities and advise GoG • Active DP’s in GAMA include, among others: AfDB, AFD, Dutch, USAID

• NGO/CSO/Others – Advised during preparation and will assist and facilitate the implementation

• List includes: People’s Dialogue (associated w/ SDI), Global Communities (formerly CHF), Water and Sanitation for the Urban Poor (WSUP), CONIWAS/CONIWAM, etc.

• Cities Alliance – Has provided support for consultations:

• w/ LICs to develop guidelines for participatory approach to design and O&M • w/ MMAs to promote integrated approach to planning, regulation & management

• IFC – Support identification and development of PS in W&S

• Transaction advise for large projects (BOT, concessions) • Support the development of local sanitation market (e.g. selling sanitation)

• GPOBA – Partially subsidy construction and operation of toilet facilities in LICs

OBA Urban Sanitation Facility

• Objective: To increase access to improved sanitation to people living in low income communities in the GAMA by partially subsidizing the access to new and sustainable toilet facilities.

• GPOBA Grant Amount: US$4.85 m – OBA subsidies: US$3.91 m – Implementation support: US$0.94 m

• PIU: Ministry of Local Government and Rural Development

• Subproject implementers: NGOs, equipment providers, private sanitation service providers, community-based organizations, Micro-financing Institutions (MFIs) and MMAs – as current business models providing toilets for compound houses in the GAMA

OBA Urban Sanitation Facility • Expected Outputs:

– Output 1: 6,600 sanitation facilities – Output 2: 6,167 desludging operations

• Number of beneficiaries: 132,000 people in low-income communities (LIC) same as the GAMA targeting criteria

• Total Project Cost: US$8.76 – OBA subsidies: US$3.91 m – Households and tenants US$3.91 m

• Need of pre-financing that can come from different sources such as implementers ,micro-financing, etc.

• User contribution: about 50% of the sanitation facilities and of the desludging costs

OBA Urban Sanitation Facility • Subsidy amount:

-Output 1: 50% of sanitation facility cost, up to a ceiling -Output 2: 50% of desludging operation, up to a ceiling

• Payment structure - Output 1: 75% of the subsidy agreed after the verification of the

installation of the sanitation facilities - Output 1: 25% of the subsidy agreed after the verification of 3 months

of use: (toilet clean, operational and open for everybody in the compound house to use)

- Output 2: 100% of the subsidy agreed after the desludging has taken place by the service provider and upon the verification of an effective quality desludging card (proper method, timely and disposal to an approved site).

• Independent verification - by a third party hired by MLGRD

OBA Urban Sanitation Facility

Questions & Answers

THANK YOU!!!