UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery

ADB HQ, Manila, Philippines 19-20 April 2010

NonNon-State Delivery of Water and Sanitation Services

The views expressed in this presentation are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.

Engaging NSPs (WASH)
NSPs have specialist capacity and flexibility to operate in different conditions and offer services. NSPs can help stimulate demand, and respond to changes in demand. Government cannot do it alone: Gov’t can enhance its roles as enabler while NSPs can fill the gap in financing and/or service delivery. Innovation is often driven by NSPs. Cost sharing options can stimulate household demand and financing, and leverage funding from government and other sources.

Key Issues (NSPs/WASH)
Lack of recognition or inclusion Affordability Service quality Pro-poor services Financing Policy Regulation Public awareness Administrative and legal barriers Technical and physical barriers Vested interests (opposition to change, political intervention, corruption) Uncertainty and risk

Issues and Lessons
Issue Need for recognition Lessons New policy for mainstreaming small-scale service providers Facilitate the formalization of the informal providers: lessen the administrative, legal and financing constraints, but subject to regulations Include NSPs in water and sanitation plans and strategies Mapping and registration of NSPs Improve regulation to achieve quality, affordable and sustainable services
Permits, licenses and annual fees Water and wastewater tariff setting Performance-based and technical standards


Improve capacity to enforce laws and regulations Consumer feedback

Issues and Lessons
Issue Vested interests Lessons Develop buy-in and partnership with the communities and local governments Clear contracts and partnership arrangements Consensus-building within the community Financing Provisions of easier credit terms through alternative models and financing windows
Mixed credit and subsidy

Issues and Lessons
Issue Institutional Lessons Variety of partnerships and contracts: Management; PPP; performance-based, etc. Role of communities and households
Consumer feedback mechanism; O&M; monitoring

Pricing/ Affordability

Flexible payment terms and conditions to reach the poor Communities get share in the profits; CSR Different levels of service systems; phased expansion

Quality and sustainability Capacity development

Technical specifications Water quality and service levels Planning and regulation Technology options Promotion and marketing

UNICEF – ADB Regional Workshop on the Role of Non-State Providers in Basic Service Delivery
ADB HQ, Manila, Philippines 19-20 April 2010