Editor's Note: A new report from the World Bank's Water and Sanitation Program finds that meeting global WASH goals will require not only additional public funding, but also improved resource allocation and service efficiency. In this post, Guy Hutton shares key findings from the report along with some next steps. You can find the original post here.
When the Millennium Development Goals (MDGs) were signed, a commitment was made to deliver improved water and sanitation to half the unserved population. This ambitious target was met for water but not for sanitation, with 2.4 billion people still lacking improved sanitation in 2015. The first part of our new study, The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene, estimates the cost of finishing what was started as part of the MDG target.
The study found that globally current levels of financing are likely to cover the capital costs of achieving universal basic WASH by 2030. The global capital costs amount to $28.4 billion per year (range: $13.8 to $46.7 billion). However, despite this good news, the current allocations need to be redirected and there will need to be significantly greater spending on sanitation (accounting for 69% of the cost of basic universal WASH) and operations and maintenance, as well as in the most off-track countries which are mainly in sub-Saharan Africa and South Asia.
But this isn’t the full story.
Even while the MDG sanitation target was not met a new global target was set, as part of the Sustainable Development Goals (SDGs). The targets and proposed indicators within the water goal (6.1 and 6.2) talk about ‘safely managed’ services, which includes continuously-available, on-plot water supply and an improved service chain to ensure safely managed fecal waste. When these additional services are costed, they amount to approximately $87 billion per year (range: $61 to $123 billion). Then, we needed to add the basic sanitation and hygiene cost, as well as part of the basic water cost (as many households will not go direct to safely managed water). This takes the cost of achieving targets 6.1 and 6.2 to about $114 billion per year (range: $74 to $116 billion). At 0.39% of the sum of gross domestic product (GDP) of the 140 included countries (range: 0.26 to 0.55%), $114 billion per year requires an additional 0.27% of global GDP spent on WASH, hence requiring massive additional in-flows of financing to the sector.
As these funds are unlikely to be met in any major way from traditional bi- or multilateral aid, it is likely that the investments need to be met from the growing tax revenues of developing country governments and from the private sector recognizing the business potential in the long-term provision of WASH services.
And perhaps, this is the most important part of the story.
Sustained universal coverage requires more than capital inflows: financial and institutional strengthening will be needed to ensure that capital investments translate into effective service delivery.
Tariff policies will need to be strengthened but affordability will remain a critical issue, especially in low-income countries and communities where even the operational costs of basic WASH can add up to more than 5% of the poverty income levels.
Understanding costs is an important part of planning and implementing services to reach universal coverage, but financing should be viewed as part of a broader strengthening of the services system that includes development of technology, private suppliers and providers, policy reform, institutional strengthening, regulation and improved monitoring and evaluation. Financing needs to be planned for operational costs, as well as the capital cost numbers presented above.
Of course, some of the estimates presented here are at best back-of-the-envelope calculations, as there are so many unknowns such as current service levels and underlying cost data are at times weak. However, the results of this study provide some hard-to-ignore findings such as where the majority of costs (and challenges) are likely to occur, and they provide a basis for discussing global, regional and national priorities. The study provides an approximate global number on the costs of meeting two of the 169 targets, which should be compared with the costs and financing for achieving the other SDG targets, thus enabling an overall prioritization of the development agenda, such as has already been started by theCopenhagen Consensus Center, an exercise which was also conducted for water and sanitation.
In order to encourage deeper analysis, the underlying worksheets are available online for countries to rework the calculations made in this study based on different input data. However, these superficial assessments should not replace the implementation of detailed investment plans and financing strategies within each country as well as at sub-national level.
This study is a collaborative effort by the World Bank, the United Nations Children’s Fund (UNICEF), the World Health Organization (WHO), and a range of sector partners engaged in the post-2015 process revolving around the new Sustainable Development Goal framework. The task team leader is Guy Hutton, senior economist at the Water and Sanitation Program (WSP) at the World Bank, supported by Mili Varughese, WSP operations analyst. In addition, the team consists of Eddy Perez, Jema Sy, Luis Andres, and Chris Walsh. Rifat Hossain (WHO) from the WHO/ UNICEF Joint Monitoring Programme for Water Supply and Sanitation conducted the coverage forecasts in 2015 for the baseline. Full acknowledgements are provided in the report.
Editor’s Note: This post highlights Blue Planet Network’s long-standing peer review and crowd-sourcing platform, along with examples of collaboration and knowledge sharing among BPN’s members. It was authored by Lisa Nash, CEO of Blue Planet Network.
What if there was a way for the WASH sector to unlock the hidden knowledge of sustainable safe drinking water and sanitation programs?
Blue Planet Network (BPN), an online global platform and network of 90+ WASH funders and implementing organizations, is designed to encourage collaboration, increase impact, and promote a cross-sector focus on project results and lessons learned. This is complemented by an expert crowd-sourcing process — the heart of BPN. Members “peer review” other organizations seeking feedback on their project implementation plans. Utilized collaboratively in a safe space, the peer review process is aimed at unlocking the tremendous knowledge of the global WASH sector. After five years of peer reviewing and crowd-sourcing, we have seen an increase in member standards, discussion, and accountability.
BPN’s WASH community began in 2006 when five WASH NGOs — recognized for their innovation and impact — came together to build a collaborative online forum to improve each other’s programs. Introducing the peer review concept was a new challenge; we knew it would take time to build a large community of NGOs and funders committed to sharing their valuable project knowledge for the good of the sector. Over time, however, these efforts paid off. Our members have shown us so many ways to use our platform.
The BPN member stories below show how the WASH sector — empowered by technology — can collaborate, share learning lessons, and continually help improve WASH sector program impact.
Community Water Center (CWC) and BPN are developing a program in San Joaquin Valley, CA, to help 2,600 people living with nitrate and arsenic-contaminated drinking water. The groundwater has been contaminated with nitrates from the heavy agricultural pesticides used, and from naturally occurring arsenic. Project Well, a BPN member working on arsenic-free wells in West Bengal, India, will support CWC’s efforts by sharing their experience.
- Aguayuda, from Colombia, changed their local staffing plans after applying for membership and discussing staffing options with BPN members Agua Para La Vida, El Porvenir (Nicaragua), and Agua Para La Salud (Guatemala).
- East Meets West (Vietnam, Cambodia) suggested improvements to hygiene practices of a project by Indian BPN member, Ekoventure, that reduced overall costs and improved project sustainability.
- The Chagrin Valley, Ohio Rotary Club, a BPN funding member, facilitated the independent monitoring of projects implemented by member Aqua Clara International in Kenya by local Kenyan Rotarians.
- “Peer visits” in 2011 were launched to empower members from a common region to connect with others in the field, suggest improvements, and train together. The Samburu Project hosted fellow members, Tanzania Mission to the Poor and Disabled (PADI), Aqua Clara International, Sabore Oyie in Kenya and Rajesh Shah of BPN to review their work in northern Kenya, suggest ways to improve sustainability, and share field experiences.
- Gram Vikas and WOTR, Indian BPN members — and the first two recipients of the Kyoto World Water Grand Prize — have advised members on their MANTRA and participatory watershed development programs. The 2012 Kyoto World Water Grand Prize winner, Katosi Women Development Trust (Uganda), is connected to BPN through a long-time member, Global Women’s Water Initiative, and we hope to promote collaboration among these grassroots leaders.
We have seen a significant increase of funder interest in WASH projects because BPN directly connects funders to NGOs and project communities. Although funders may be continents away, they still have an up-close look and hands-on tool to monitor and track project planning, implementation, and impact through our platform. This transparent process increases funder engagement and builds confidence in future funding and investment.
Funding ongoing monitoring efforts is also a cost-effective way to ensure investment dollars continue to have the impact funders seek. Currently, approximately 30 funders, WASH experts and observers, and over 60 international agencies track WASH projects on BPN’s online platform.
Through our close work with WASH funders, NGOs, and communities, we have come to understand that there is no “one size fits all” solution to address the global WASH crisis. Each community and culture is unique, reinforcing the need for an innovative community-owned strategy. By bringing people together to transfer and share knowledge, we enable them to learn what’s been tried, what works, and what doesn't, and then to apply that knowledge to their own unique context. Establishing a culture of learning within and among organizations is vital to improve project outcomes, lower costs, and increase accountability.
Building upon experience and member input, BPN is launching its next generation online platform, “BPN 2.0,” in late 2012. With the growing demand for BPN’s WASH platform, there also comes the need for expanded reporting and analytics, more funder-focused services, project post-implementation tracking, and simplified user experience. BPN will be sharing its work in the coming months with members and other interested organizations in the WASH sector. We look forward to learning from the experience of others to make our offering as valuable as it can be in our common effort to enable sustainable safe drinking water and sanitation for all.