Innovative financing mechanisms for
Transcript of Innovative financing mechanisms for
SANITATION SITUATION IN WAI AND SINNAR
Sanitation challenges in Wai and Sinnar
Wai and Sinnar are two small towns in the state of Maharashtra, India, with 7,580 and 13,112
households respectively
SANITATION PLANNING SUPPORT TO GOVERNMNET
Innovative financing mechanisms for
citywide sanitationM. Mehta *, D. Mehta **, U. Yadav***, J.Jaiswal****, D. Sheth*****,R. Tavkar******
CWAS, CEPT University, Ahmedabad, India,
*[email protected], ** [email protected], ***[email protected], **** [email protected] ,***** [email protected], ******[email protected]
inspiring change www.iwahq.org
C-WAS at CEPT University is established to focus
on improving water and sanitation services in India.
Technical support for
sustainable sanitation solution in
small and medium towns in
Maharashtra, India since 2013
Lessons from city level actions to
State and National level
Partner to State Government of Maharashtra for implementation
of Swachh Bharat Mission (Clean India Mission) in Maharashtra
1 Action-research 2City support
3State support for Swachh Bharat Mission
CEPT model cities
Result: Wai and Sinnar became Open Defecation Free (ODF) with >80% HHs having individual toilets.
Recently Wai and Sinnar has become ODF++
Citizens were not having toilets because of lack of space and fund availability.
2. To make citizens aware about the scheme and also to meet the financial demand - city officials with
CEPT’s support have conducted various awareness generation activities through stakeholder consultation
and community participation and also have guided citizens to take sanitation loans- Continuous process
WAI
SINNAR
No
treatment
facility
Dumped at
solid waste site
Into river or
natural drain
Effluent water
flowing through
open/closed drains.
Irregular emptying
by emptier truck
Septage
Waste
water
Open
Defecation
and High
dependence
on community
toilets
• High emptying
cost
• Not enough
awareness about
regular emptying
Access Collection Conveyance TreatmentDisposal/
Reuse
Performance linked annuity model (PLAM) for engaging private operators
in scheduled desludging services2
All properties
in city
Desludging
company
Local
government
Desludging service once in 3 years
Monthly payment as per
performance based contract
Bank
Escrow
account
Sanitation / property tax
Deliver sludge
to treatment
facility
Capital
costs
O&M
costs
Operational success in Wai – Sinnar
• 800+ scheduled emptying
• Rate of 56 septic tanks per month as compared to
last year’s 7-8 per month
• 88% acceptance rate from HHs for scheduled service
• Eliminated manual scavenging
Sanitation technology
providers
Sanitation ware providers
Financial Lending
Institutions
Residents and students
1. Announcement of 'Own Toilet/ Group Toilet Scheme’ in Wai and Sinnar
Enabling sanitation credit
Through toilet subsidy offered by city + through Swachh Bharat Mission
Swachh Bharat Mission
Susbidy : INR 4,000 +
Swachh Maharashtra Abhiyan
Susbidy : INR 8,000 =
Total = INR 22,000
Launch of Swachh
Bharat Mission
Launch of Swachh
Maharashtra Missionsubsidy of :
Rs10,000
subsidy of :
Rs5,000 -10,000
SINNARWAI
Toilet incentive grant and sanitation loans for construction of household toilets1
Wai Sinnar
Individual
toilets
Community
toilets
Open
defecation2%
Access to types of sanitation
facility (No. of HH)
Household Level Awareness for
Group Toilet Scheme in Wai
Capacity Building of Council’s
staff and toilet contractors
1
3
2
Distributing Handouts
Awareness generation activities
• Day and night announcement in rickshaws
• Community level and Ward level meetings
• Movies and Jingles
• SHG meeting
• Toilet and lender fair
4 To achieve universal
access to individual
toilets households of
Wai and Sinnar are
guided to take
“sanitation loans”
along with
commercial banks
and self-help groups
1 Lack of ULB capacity to
implement scheduled desludging
2 Private sector involvement
• Economics of Scale encourages
private operator to get involved
• Hired private operator through
transparent bidding process wherein
Private operator need to bring in trucks
and manpower
3 Finance through Sanitation Tax
• Tax collected as part of their property
tax through a sanitation tax paid
annually.
• Households paying small sanitation
tax to finance operations instead of
high emptying charges
4 Risk coverage through Escrow
Mechanism
• Local government is supposed to keep 3
month payment in the account to mitigate
private operator’s payment risk.
Risk coverage through performance linked
Payment
• Payment on the bases of bills produced for septic tanks
emptied by private operators per month.
5
Funding issues were addressed through subsidy and space issue were addressed through group toilets
Crowd funding for upgrading school toilets4
Result: Sinnar Council decided to take up the responsibility for O&M of the toilet facilities of all
the public schools using child and women welfare funds.
https://www.youtube.co
m/watch?v=NF7xzLFnN
qc
To provide access to toilets to students of
Sinnar, CEPT with Milaap platform decided to
crowd fund the toilet.
Toilet condition: Before After
• State resolution- local bodies should use
50% 14th Finance Commission grants for
sanitation-Sinnar has built FSTP using it
• Swachhata Kosh–part of Swachch Bharat
Mission- Sinnar has formed a committee
Mobilizing Corporate Social Responsibility (CSR) funds3
HSBC is contributing via CSR funds
to help Sinnar to sustain the ODF
status and to move toward ODF++
Ongoing
Projects
Results Based Grant Model
Scale of
Impact
Measurement
of Outcomes
Timeframe
for outcomesOperational Feacal sludge
treatment plant(FSTP)
OD Spot and SWM
dumpsite development
Sinnar: FSTP
Landscaping
Need for identifying innovative financing mechanisms
• Lack of ULB capacity; Technical and financial capacity
• To reduce financial and technical burden on ULB by..
o Involving private operators in feacal sludge septage
management service provision
o Leveraging private financing options for public services
• To improve financial viability of these services, while ensuring
citywide coverage and affordable prices for services
• To enhance the quality of investments in the implementation of
the sanitation programmes led by the urban local body,
INNOVATIVE FINANCING OPTIONS
Other financing mechanisms5
Project Conceptualizer
• Assessment of school toilets and identifying infrastructure gaps and investment requirement
Crowd funding platform : Milaap:
• Bring together the project conceptualizer and the crowd
Raised 4.28 lakhs from 70 donors in just two months
Support Toilets for children in Zapwadi School
Formed a committee for efficient use of funds
Urban forest PPP for public toilet River development Grey water management
Emerging experience of innovative financing in
Wai and Sinnar can be scaled up to other 4000
small and medium cities (~40% of India’s
population), of India and emerging economies
like India.
Way forward
CWAS-CEPT University partnered with Wai Municipal Council and Sinnar Municipal Council to implement innovative financing mechanisms for citywide faecal sludge and septage management services with the support of government of Maharashtra.
Center for water and sanitation-CEPT University. (2015). The City Sanitation Plan (CSP) Wai municipal council
Retrieved from https://pas.org.in/Portal/document/UrbanSanitation/uploads/CSP_Wai_full%20report.pdf
Center for water and sanitation-CEPT University. (2015). The City Sanitation Plan (CSP) Sinnar municipal
council Retrieved from https://pas.org.in/Portal/document/UrbanSanitation/uploads/CSP_Sinnar_full_report.pdf
Center for water and sanitation-CEPT University. (2015). Support to cities in achieving ODF status Retrieved from
https://pas.org.in/Portal/document/UrbanSanitation/uploads/Support%20to%20cities%20to%20develop%20and%
20implement%20demand-based%20scheme%20for%20'own%20toilets'.pdf
Center for water and sanitation-CEPT University. (2015). School sanitation in small towns assessment and
investment requirement in Wai Retrieved from
https://pas.org.in/Portal/document/UrbanSanitation/uploads/School%20sanitation%20Wai.pdf
Center for water and sanitation-CEPT University. (2015). School sanitation in small towns assessment and
investment requirement in Sinnar Retrieved from
ttps://pas.org.in/Portal/document/UrbanSanitation/uploads/School%20sanitation%20Sinnar.pdf
Center for water and sanitation-CEPT University. (2016). Awareness generation initatives under
Swachh bharat mission (SBM) for Wai & sinnar cities in Maharashtra Retrieved from
https://pas.org.in/Portal/document/UrbanSanitation/uploads/Swachh%20Maharashtra%20Mission%20for%20Urba
n%20Areas_SMMUA%20for%20Wai%20and%20Sinnar.pdf
Center for water and sanitation-CEPT University. (2017). Model Tender Document For DBOT project for FSTP
Retrieved from
https://pas.org.in/Portal/document/UrbanSanitation/uploads/Model_bid_document_for_Emptying_CEPT.pdf
Center for water and sanitation-CEPT University. (2016). Crowd funding for Sanitation Retrieved from
https://pas.org.in/Portal/document/UrbanSanitation/uploads/Crowdfunding%20for%20Sanitation.pdf
Center for water and sanitation-CEPT University. (2017). Assessing Demand for Sanitation credit in Sinnar city
Retrieved from
https://pas.org.in/Portal/document/ResourcesFiles/pdfs/Sinnar%20Sanitation%20Survey%2020Toilet%20construc
tion,%20usage,%20and%20SBM%20subsidy.pdf
Center for water and sanitation-CEPT University. (2017). Enhancing the Supply of Sanitation Credit in
Maharashtra :Existing Arrangements and Emerging Options Retrieved from
https://pas.org.in/Portal/document/UrbanSanitation/uploads/Enhancing%20the%20Supply%20of%20Sanitation%2
0Credit%20in%20Maharashtra%2020Existing%20Arrangements%20and%20Emerging%20Options.pdf
Center for water and sanitation-CEPT University. (2016). Assessing Credit Options for Household Sanitation in
Urban Areas Retrieved from
https://pas.org.in/Portal/document/ResourcesFiles/pdfs/Assessing%20Credit%20Options%20for%20Household%
20Sanitation%20in%20Urban%20areas.pdf
Center for water and sanitation-CEPT University. (2018). Mobilizing sanitation credit through urban SHGs a Case
of MAVIM, Maharashtra Retrieved from
https://pas.org.in/Portal/document/ResourcesFiles/pdfs/Mobilizing%20sanitation%20credit%20through%20urban
%20SHGs%20-%20A%20case%20of%20MAVIM,%20Maharashtra_12%20Dec%2018.pdf
Center for water and sanitation-CEPT University. (2019). Performance based Contracts for Private Sector in
FSSM services in Maharashtra, India: Presentation at FSM5 Retrieved from
https://pas.org.in/Portal/document/ResourcesFiles/Performance%20based%20Contracts%20for%20Private%20S
ector%20in%20FSSM_CEPT_FSM5.pdf
Center for water and sanitation-CEPT University. (2019). Perspective of a Desludging Enterprise on Performance
Based Contract in Maharashtra, India: Presentation at FSM5 Retrieved from
https://pas.org.in/Portal/document/ResourcesFiles/Perspective%20of%20a%20private%20desludging%20enterpri
se%20for%20scheduled%20emptying_CEPT_FSM5.pdf
USAID (2017) State of Urban Water and Sanitation in India – USAID.TERI
Picture courtesy: All the images are captured by C-WAS,CEPT university