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!!!
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