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Institutional Profile - Rural Water Supply and Sanitation Fund Board

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PREFACE<br />

Clean drinking water <strong>and</strong> sanitation are of primary concern in terms of health improvement,<br />

environment protection <strong>and</strong> poverty alleviation. Since clean water <strong>and</strong> sanitation are basic<br />

rights, GoN is committed to deliver such services to its people. Access to clean water <strong>and</strong><br />

sanitation is not a technical issue but it is also a crucial component of social <strong>and</strong> economic<br />

development. <strong>Rural</strong> <strong>Water</strong> supply <strong>and</strong> <strong>Sanitation</strong> <strong>Fund</strong> Development <strong>Board</strong> (The <strong>Board</strong>) has<br />

been extending such sustainable <strong>and</strong> socially acceptable services with the support of partner<br />

organizations including prime role of the concerned communities. The <strong>Board</strong> has delivered<br />

water <strong>and</strong> sanitation facilities to around 0.6 million rural people in RWSSP-I <strong>and</strong> it is targeted<br />

to deliver such facilities to more than 0.8 million rural people in RWSSP-II.<br />

This document is an attempt to spread the message of successful dem<strong>and</strong> driven <strong>and</strong><br />

participatory approach, working modalities, community procurement <strong>and</strong> financial<br />

transparency <strong>and</strong> all about the <strong>Board</strong>. This document may help to underst<strong>and</strong> about the<br />

<strong>Board</strong>’s implementation procedures that could be internalized <strong>and</strong> consolidated in water<br />

supply <strong>and</strong> sanitation sector as well as other development sectors. This will also help to<br />

partner organizations <strong>and</strong> communities for accessing of such facilities that could support to<br />

meet <strong>Board</strong>’s objectives <strong>and</strong> in tern to the GoN. It welcomes all comment <strong>and</strong> suggestions<br />

from any sector <strong>and</strong> person so that the <strong>Board</strong> will further strengthen <strong>and</strong> fulfill its responsibilities<br />

in future.<br />

March 2007<br />

Arjun Narsing Rayamajhi<br />

Executive Director


CONTENTS<br />

Background 1<br />

Objectives 2<br />

Key Strategy <strong>and</strong> Working Modality 3<br />

Organization <strong>and</strong> Management 4<br />

Program Component 5<br />

Scheme Cycle 6<br />

Program Implementation 10<br />

Eligibility Criteria for Support Organization 11<br />

Scheme Eligibility Criteria 12<br />

Social Inclusion 13<br />

Finance Transparency 14<br />

Monitoring, Evaluation <strong>and</strong> Supervision 15<br />

Role of Women in Scheme Implementation 15<br />

Promotion of Private Sector 16<br />

Coordination <strong>and</strong> Linkage 17<br />

Materials for Sharing 18<br />

Ssurces of <strong>Fund</strong>ing 18<br />

ABBREVIATION AND ACRONYMS<br />

ADDCN Association of District Development<br />

Committees of Nepal<br />

CAP Community Action Plan<br />

CBO Community Based Organization<br />

DDC District Development Committee<br />

DFID Department for International Development<br />

DTW Deep Tube Well<br />

DWSS Department of <strong>Water</strong> <strong>Supply</strong> <strong>and</strong> Sewerage<br />

GoN Government of Nepal<br />

HSE Health <strong>and</strong> <strong>Sanitation</strong> Education<br />

I/NGO International/Non Government<br />

Organization<br />

IDA International Development Association<br />

IP Indigenous People<br />

IPDP Indigenous People Dalit People<br />

JAKPAS Janatako Khanepani Tatha Sarsafai<br />

Karyakarm or People’s Drinking <strong>Water</strong><br />

<strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong> Program<br />

JGF Japanese Grant Facility<br />

KHASKOSH Khanepani Tatha Sarsafai Kosh Bikas<br />

Samittee<br />

MCTG Mother <strong>and</strong> Child Tap St<strong>and</strong> Group<br />

MoLd Ministry of Local Development<br />

MPPW Ministry of Physical Planning & Works<br />

NAVIN National Association of VDCs in Nepal<br />

NFE<br />

RWH<br />

RWSSFDB<br />

RWSSP-I<br />

RWSSP-II<br />

S0<br />

SA<br />

SARAR<br />

SRLF<br />

STW<br />

TAC<br />

UNDP<br />

VDC<br />

VHP<br />

VMW<br />

WB<br />

WSUC<br />

WSUG<br />

WTSS<br />

Non Formal Education<br />

Rain <strong>Water</strong> Harvesting<br />

<strong>Rural</strong> <strong>Water</strong> <strong>Supply</strong> & <strong>Sanitation</strong> <strong>Fund</strong><br />

Development <strong>Board</strong> (The <strong>Board</strong>)<br />

First <strong>Rural</strong> <strong>Water</strong> <strong>Supply</strong> & <strong>Sanitation</strong><br />

Project<br />

Second <strong>Rural</strong> <strong>Water</strong> <strong>Supply</strong> & <strong>Sanitation</strong><br />

Project<br />

Support Organization<br />

Service Agency<br />

Self-Esteem, Associative Strength,<br />

Resourcefulness, Action planning,<br />

Responsibility<br />

<strong>Sanitation</strong> Revolving Loan <strong>Fund</strong><br />

Shallow Tube Well<br />

Technical Appraisal Committee<br />

United Nations Development Program<br />

Village Development Committee<br />

Village Health Promoter<br />

Village Maintenance Worker<br />

World Bank<br />

<strong>Water</strong> <strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong> User<br />

Committee<br />

<strong>Water</strong> <strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong> User Group<br />

Women Technical Support Service


BACKGROUND<br />

T<br />

he <strong>Rural</strong> <strong>Water</strong> <strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong> <strong>Fund</strong><br />

Development <strong>Board</strong> (the <strong>Board</strong>) was established on<br />

March 14, 1996 by Government of Nepal (GoN)<br />

through Formation Order under the Development<br />

<strong>Board</strong> Act, 1956, based on the studies <strong>and</strong> findings<br />

of a field-tested pilot project known as JAKPAS (Janta<br />

Ko Khanepani Tatha Sarsafai Karyakarm or People’s<br />

Drinking <strong>Water</strong> <strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong> Program).<br />

Preparation studies for the pilot project were carried<br />

out with funding by the United Nations Development<br />

Program (UNDP) <strong>and</strong> a grant from Japanese Grant<br />

Facility (JGF) <strong>and</strong> executed by the World Bank/IDA<br />

for a period of three years during 1993-96. The <strong>Board</strong><br />

was established in order to bring about fundamental<br />

changes in the conventional supply-oriented approach<br />

to adopting a dem<strong>and</strong> driven <strong>and</strong> participatory<br />

development approach in rural water supply <strong>and</strong><br />

sanitation delivery mechanism in the country.<br />

Currently, the <strong>Board</strong> is implementing the Second<br />

<strong>Rural</strong> <strong>Water</strong> <strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong> Project (RWSSP-<br />

II, 2004-2009) which is a follow-on to First <strong>Rural</strong><br />

<strong>Water</strong> <strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong> Project (RWSSP-I, 1996-<br />

2003) with some improvements by incorporating the<br />

lessons learnt <strong>and</strong> overcoming the deficiencies in<br />

RWSSP-I.<br />

The Project has been implemented with main<br />

assistance from the World Bank/ International<br />

Development Association (IDA) <strong>and</strong> co-financed by<br />

UK, Department for International Development,<br />

DFID-Nepal (Batch-IV onwards) together with GoN<br />

<strong>and</strong> the communities. Ministry of Physical Planning<br />

& Works is the line Ministry of RWSSFDB.<br />

The <strong>Board</strong> has been implementing a dem<strong>and</strong> driven<br />

community based <strong>Rural</strong> <strong>Water</strong> <strong>Supply</strong> <strong>and</strong> <strong>Sanitation</strong><br />

Projects to promote cost-effective <strong>and</strong> sustainable<br />

development. The focus of the Project is to empower<br />

rural communities in service delivery with full<br />

emphasis on community ownership <strong>and</strong> responsibility<br />

in conformity with GoN’s RWSS sector policy.<br />

Participatory development process in all stages of<br />

the project cycle including operation <strong>and</strong><br />

maintenance has been adopted <strong>and</strong> recognized.<br />

Emphasis has also been accorded to community<br />

mobilization throughout the Development <strong>and</strong><br />

Implementation phases, to awareness creation <strong>and</strong><br />

to increasing the role of women, IP, Dalit <strong>and</strong><br />

disadvantaged people in decision-making process,<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

1


health, hygiene <strong>and</strong> sanitation <strong>and</strong> income <strong>and</strong><br />

employment generation. Overall management of the<br />

Project is done by the community. The <strong>Board</strong> allocates<br />

resources through its partners known as Support<br />

Organizations (SOs) that are national/ international<br />

non- governmental organizations, private sector firms<br />

<strong>and</strong> community-based organizations. Consultancy<br />

firms known as Service Agencies (SAs), hired by the<br />

<strong>Board</strong>, are utilized to assist in providing technical,<br />

institutional <strong>and</strong> operational support to both SOs<br />

<strong>and</strong> communities in various stages of the project<br />

cycle. Thus, the <strong>Board</strong> has promoted public private<br />

partnership model in programme implementation.<br />

OBJECTIVES<br />

The overall objective is to promote costeffective<br />

<strong>and</strong> sustainable rural water supply<br />

<strong>and</strong> sanitation projects in order to reduce<br />

rural poverty with full emphasis on community<br />

ownership <strong>and</strong> responsibilities. The Project<br />

aims to raise the living st<strong>and</strong>ard of rural<br />

people by:<br />

• Improving sector institutional<br />

performance <strong>and</strong> mainstreaming “<strong>Fund</strong><br />

<strong>Board</strong>” approach in the Government’s<br />

system, <strong>and</strong><br />

• Supporting communities to form inclusive<br />

local water supply <strong>and</strong> sanitation user<br />

groups that can plan, implement, <strong>and</strong><br />

operate drinking water <strong>and</strong> sanitation<br />

infrastructure that delivers sustainable<br />

health, hygiene <strong>and</strong> productivity benefits<br />

to rural households.<br />

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KEY STRATEGY<br />

• The <strong>Board</strong>, takes only facilitating roles <strong>and</strong><br />

keeps organization small <strong>and</strong> effective;<br />

• Community institutions are established <strong>and</strong><br />

community capacities are appropriately<br />

strengthened <strong>and</strong> assisted in project<br />

identification, planning, implementation <strong>and</strong><br />

managing the project; <strong>and</strong><br />

• Support organizations such as NGOs <strong>and</strong><br />

private sector organizations are mobilized to<br />

support community for capacity building <strong>and</strong><br />

implementation of the project.<br />

WORKING MODALITY<br />

• Dem<strong>and</strong> Driven <strong>and</strong> Participatory Approach<br />

• Resource Allocation through SOs <strong>and</strong> Communities<br />

• Local Resource Mobilization with Informed Choice<br />

of Technical <strong>and</strong> Service Level Options<br />

• Community Procurement <strong>and</strong> Financial Transparency<br />

• Equity in <strong>Water</strong> <strong>Supply</strong>, Health, Hygiene <strong>and</strong><br />

<strong>Sanitation</strong><br />

• Social Inclusion (Women, IP, Dalit <strong>and</strong><br />

Disadvantaged People)<br />

• Capacity Building of Governmental <strong>and</strong> Nongovernmental<br />

Organizations<br />

• Quality Control through Participatory Monitoring<br />

<strong>and</strong> Evaluation<br />

• Cost-Effective Service<br />

• Operation <strong>and</strong> Management of Schemes by<br />

Communities<br />

• Backing Government’s Goal of Poverty Alleviation<br />

• Coordination, Linkages <strong>and</strong> Partnership Building<br />

with Local Authorities <strong>and</strong> Other Programs<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

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ORGANIZATION AND MANAGEMENT<br />

The new Formation Order<br />

provides operational autonomy to<br />

the <strong>Board</strong> <strong>and</strong> allows it to frame<br />

its own rules <strong>and</strong> regulations.<br />

The <strong>Board</strong> is supervised <strong>and</strong><br />

managed by a seven members<br />

<strong>Board</strong> comprising of two<br />

government joint Secretaries<br />

(one each from MPPW <strong>and</strong><br />

MoLD) one representative each<br />

from ADDCN <strong>and</strong> NAVIN, two<br />

professionals representing<br />

NGOs <strong>and</strong> one from the private<br />

sector nominated by GoN for a<br />

three years term. According to<br />

the provisions of the Formation<br />

RURAL WATER SUPPLY AND SANITATION<br />

FUND DEVELOPMENT BOARD ORGANIZATION CHART<br />

Order, the nominated<br />

professional members that<br />

includes at least one woman<br />

member, have more than ten<br />

years’ experience in the field of<br />

rural water supply<br />

<strong>and</strong> sanitation, engineering,<br />

participatory rural development<br />

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<strong>and</strong> health <strong>and</strong> sanitation. Chairperson<br />

of the <strong>Board</strong> is elected from among the<br />

<strong>Board</strong> Members for a three-year term. The<br />

Executive Director of the <strong>Board</strong> Secretariat<br />

acts as Secretary of the <strong>Board</strong>.<br />

<strong>Board</strong> policies are implemented from its<br />

head office, located at Kathm<strong>and</strong>u.<br />

Altogether 48 staffs including the<br />

Executive Director are recruited on a<br />

competitive basis for a fixed term, with<br />

possibility of extension based on<br />

satisfactory performance. They include<br />

seven managers - an Executive Director,<br />

a Deputy Executive Director, <strong>and</strong> five<br />

Division Chiefs (Planning <strong>and</strong> Operation,<br />

Monitoring <strong>and</strong> Evaluation; Technical;<br />

Human Resource/Program Development;<br />

<strong>and</strong> Administration Divisions); three<br />

Regional Managers, nine Officers, eleven<br />

Portfolio Managers <strong>and</strong> eighteen support<br />

staffs. At least two of the seven managers,<br />

if available, should be women to ensure<br />

addressing of gender issue in the <strong>Board</strong>’s<br />

programs. The <strong>Board</strong> members frame<br />

<strong>Board</strong> rules <strong>and</strong> operating procedures.<br />

The operating procedures are detailed<br />

<strong>and</strong> presented in the implementation<br />

manuals. There is also a provision of<br />

appointing a Technical Adviser for<br />

advising the Executive Director on<br />

management issues of the <strong>Board</strong>.<br />

PROGRAM<br />

COMPONENTS<br />

The <strong>Board</strong> provides grant assistance to communities <strong>and</strong> SOs<br />

for the implementation of rural water supply <strong>and</strong> sanitation<br />

programs, which also comprises a number of other components<br />

to make it an integrated aproach.<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

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SCHEME CYCLE<br />

The Project follows a Maximum of 37 <strong>and</strong> 39 months’<br />

project cycle in hills gravity flow <strong>and</strong> Terai ground water<br />

schemes respectively with Pre-development,<br />

Development, Implementation <strong>and</strong> Post Implementation<br />

Phases.<br />

The scheme cycle takes into account the seasons, harvests<br />

<strong>and</strong> holidays, <strong>and</strong> their influence on site accessibility,<br />

water source yield measurement, availability of labor,<br />

conditions <strong>and</strong> timing for construction, as well as time<br />

needed to process the selection of SOs <strong>and</strong> schemes,<br />

the development <strong>and</strong> implementation phase proposals<br />

<strong>and</strong> the contracts. Each Fiscal year a new batch of<br />

schemes with a new scheme cycle is introduced. Each<br />

scheme-cycle consists of four main phases as briefly<br />

described below.<br />

THE PRE-DEVELOPMENT PHASE<br />

The Pre-development Phase<br />

of a scheme lasts for about<br />

12 <strong>and</strong> 17 months in hills<br />

gravity fiow <strong>and</strong> Terai ground<br />

water scheme respectively<br />

<strong>and</strong> begins in October of any<br />

given year. Its main objective<br />

is to identify <strong>and</strong> select SOs<br />

<strong>and</strong> schemes that meet<br />

<strong>Board</strong>’s eligibility criteria to<br />

enter into partnership among<br />

the <strong>Board</strong>, SOs <strong>and</strong><br />

communities. Support<br />

organizations selected for<br />

any one batch are retained<br />

in the following batch subject<br />

to their satisfactory<br />

performance. Additional<br />

SOs are selected in each<br />

new batch depending on the<br />

availability of schemes. The<br />

selection is made<br />

transparently through public<br />

announcement in the month<br />

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of October each year, adopting<br />

comprehensive screening<br />

procedures, including site<br />

verifications, laid down in the<br />

manuals. The selected SOs submit<br />

pre-feasibility studies of schemes<br />

in collaboration with needy <strong>and</strong><br />

willing communities, <strong>and</strong> in<br />

consultation with concerned<br />

village <strong>and</strong> district development<br />

committees, for <strong>Board</strong> appraisal.<br />

The schemes are reviewed against<br />

<strong>Board</strong>’s eligibility criteria, which<br />

includes on-site appraisals, before<br />

they are approved for <strong>Board</strong><br />

financing. Upon approval of the<br />

schemes, the SOs submit<br />

proposals for community<br />

development activities. The<br />

proposals form the basis for the<br />

preparation <strong>and</strong> finalization of<br />

development phase contracts<br />

between the <strong>Board</strong> <strong>and</strong> the SOs.<br />

The SOs are required to inform<br />

<strong>and</strong> consult with the concerned<br />

village <strong>and</strong> district development<br />

committees on all future activities<br />

to be held in the communities.<br />

THE DEVELOPMENT PHASE<br />

The Development Phase lasts<br />

for about 12 months <strong>and</strong> begins<br />

in November of the second year<br />

with development phase<br />

contracts conducted between<br />

the <strong>Board</strong> <strong>and</strong> the SOs. Under<br />

such contract the <strong>Board</strong><br />

provides financing for staff,<br />

logistic <strong>and</strong> other management<br />

cost, two lumpsums: one for the<br />

sanitation revolving loan fund<br />

(SRLF), the other to reimburse<br />

the SOs for their costs incurred<br />

for pre-feasibility studies of the<br />

approved schemes, <strong>and</strong> costs<br />

for other miscellaneous<br />

activities. The contract includes<br />

a comprehensive terms of<br />

reference for the SOs for<br />

activities to be undertaken under<br />

the development phase.<br />

Payments to the SOs are made<br />

in three installments, linked with<br />

the completion of specific tasks<br />

under the contracts.<br />

The development phase activities<br />

include: orientation <strong>and</strong> training<br />

to SOs’ staff; community preparation;<br />

<strong>and</strong> finalization of tri-partite<br />

contracts among the <strong>Board</strong>, SOs<br />

<strong>and</strong> communities. The SOs<br />

implement community development<br />

activities, which include<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

7


HSE, NFE (optional), preparation<br />

of community action planning<br />

(CAP) for the implementation <strong>and</strong><br />

management of the schemes,<br />

legal registration of water <strong>and</strong><br />

sanitation users’ groups<br />

(WSUGs), formation of water<br />

<strong>and</strong> sanitation users’ committee<br />

(WSUCs) <strong>and</strong> discussions <strong>and</strong><br />

community decisions on technical<br />

<strong>and</strong> service level options, detailed<br />

design of the schemes <strong>and</strong><br />

preparation of the<br />

implementation phase proposals.<br />

During this phase, the<br />

communities open bank<br />

accounts, collect cash<br />

contributions to meet part of the<br />

construction cost, <strong>and</strong> also the<br />

first year’s operation <strong>and</strong><br />

maintenance cost in advance. Promotion <strong>and</strong> construction of<br />

household latrines are also started.<br />

The implementation phase proposals form the basis for the<br />

preparation <strong>and</strong> finalization of implementation phase contracts.<br />

Only those communities who successfully complete the<br />

development phase activities, <strong>and</strong> are willing to participate in the<br />

implementation phase, submit implementation phase proposals.<br />

8<br />

<strong>Institutional</strong> <strong>Profile</strong>


services (WTSS) for income<br />

generating activities; <strong>and</strong> source<br />

protection.<br />

THE IMPLEMENTATION PHASE<br />

The Implementation Phase lasts for transport) <strong>and</strong> for other<br />

about 13 <strong>and</strong> 10 months in hills<br />

gravity fiow <strong>and</strong> Terai ground water<br />

schemes respectively <strong>and</strong> begins in<br />

August of the second year. Tripartite<br />

implementation phase contracts<br />

are conducted among the <strong>Board</strong>,<br />

SOs <strong>and</strong> the communities,<br />

represented by WSUCs.<br />

complementary activities, <strong>and</strong> the<br />

other for SO staff <strong>and</strong> logistic <strong>and</strong><br />

other management cost. The<br />

implementation phase activities<br />

include: training to SOs’ staff<br />

<strong>and</strong> community members;<br />

procurement of non-local<br />

materials <strong>and</strong> transportation;<br />

collection of local materials;<br />

Under the contracts, the <strong>Board</strong> construction of water supply<br />

provides two types of financing - schemes; promotion <strong>and</strong><br />

one for the construction of water<br />

supply schemes (non-local<br />

materials, skilled labor, <strong>and</strong><br />

construction of household <strong>and</strong><br />

school latrines; establishment of<br />

women’s technical support<br />

In this phase, payments are made<br />

in two separate accounts:<br />

construction cost to SOcommunity<br />

joint accounts, <strong>and</strong><br />

community development cost to<br />

SO accounts. Both payments are<br />

made in two installments for<br />

construction, <strong>and</strong> three<br />

installments for community<br />

development, linked to the<br />

completion of specific tasks under<br />

the contracts. The contract also<br />

includes a comprehensive<br />

terms of reference for the<br />

communities <strong>and</strong> SOs for the<br />

activities to be undertaken under<br />

this phase.<br />

The outcome of the<br />

implementation phase is the<br />

consolidation of all development<br />

<strong>and</strong> implementation phase<br />

activities, a completed <strong>and</strong><br />

functioning water supply <strong>and</strong><br />

sanitation scheme, <strong>and</strong> trained<br />

WS UC <strong>and</strong> community members<br />

to operate <strong>and</strong> maintain the<br />

scheme.<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

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POST IMPLEMENTATION PHASE<br />

Post Implementation phase, introduced in<br />

RWSSP-II considering sustainability aspect<br />

learnt from RWSSP-I, is devoted for<br />

strengthening proper monitoring <strong>and</strong><br />

linkage development with stakeholders,<br />

particularly with local government. In this<br />

phase support is provided mostly for skill<br />

development to the community regarding<br />

smooth functioning of scheme <strong>and</strong><br />

documentation of monitoring activities.<br />

Community people take responsibility of<br />

operation <strong>and</strong> maintenance for<br />

sustainability of the scheme.<br />

PROGRAM IMPLEMENTATION<br />

The <strong>Board</strong> provides technical, institutional <strong>and</strong> financial<br />

support to SOs <strong>and</strong> communities to implement rural water<br />

supply <strong>and</strong> sanitation schemes <strong>and</strong> other related activities.<br />

To increase ownership <strong>and</strong> sustainability, beneficiary<br />

communities, represented by water supply <strong>and</strong> sanitation<br />

users’ committees (WSUCs), implement schemes with the<br />

Technical assistance of SOs. The community-based<br />

dem<strong>and</strong>-driven approach to scheme identification,<br />

design, construction, operation, <strong>and</strong> maintenance moves<br />

the emphasis from the traditional physical infrastructure<br />

development to community development approach in<br />

order to increase beneficiaries’ participation in decisionmaking,<br />

implementing their decisions, <strong>and</strong> sharing the<br />

benefits of the schemes.<br />

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ELIGIBILITY CRITERIA FOR<br />

SUPPORT ORGANIZATION<br />

To ensure that only competent <strong>and</strong> qualified SOs<br />

are selected to work in partnership with the <strong>Board</strong><br />

<strong>and</strong> communities, the <strong>Board</strong> transparently applies<br />

the following eligibility criteria for the SO selection:<br />

• Evidence of legal registration of the SO;<br />

• Constitutional provision of the SO to engage<br />

in rural water supply <strong>and</strong> sanitation or rural<br />

development activities;<br />

• Updated, audited, <strong>and</strong> certified accounts;<br />

• Proven track record of at least two years in<br />

participatory rural water supply <strong>and</strong> sanitation,<br />

<strong>and</strong>/or related community development activities;<br />

Each new SO is evaluated by the Technical Appraisal<br />

Committee (TAC) of the <strong>Board</strong> <strong>and</strong> assessed at the<br />

field, particularly concerning its track record <strong>and</strong><br />

staffing capacity before selection, using a ranking<br />

system provided in the implementation manuals. TAC<br />

recommends top-ranking SOs in required number<br />

to the <strong>Board</strong> for approval.<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

11


SCHEME ELIGIBILITY CRITERIA<br />

Each scheme accepted for<br />

financing has to meet the<br />

following eligibility criteria as<br />

mentioned in the Rules:<br />

1 A scheme must meet one or<br />

more of the following Need<br />

<strong>and</strong> Economic Viability criteria:<br />

• The benefit/cost ratio of the<br />

scheme is at least 1.5. This<br />

is assured during predevelopment<br />

by following<br />

conditions<br />

a) Time saving per household<br />

per day should be more<br />

than 2 hrs for gravity, RWH<br />

<strong>and</strong> DTW, 45 min for STW<br />

<strong>and</strong> 1.75 hr. for dug wells<br />

schemes <strong>and</strong><br />

b) Estimated per capita cost<br />

should be within threshold<br />

given in the manual or<br />

c) Average per capita water<br />

availability at present is less<br />

than 15 ltr. or<br />

d) Majority of the households<br />

(>50%) are dependent on<br />

heavily polluted water.<br />

2 A scheme must meet the<br />

following Technical criteria:<br />

• The proposed water source<br />

should be unpolluted,<br />

undisputed, <strong>and</strong> yields at<br />

least 45 liters per capita<br />

per day (if there is no other<br />

solution, <strong>and</strong> existing<br />

sources are heavily<br />

polluted or provide under<br />

15 lpcd, a minimum of 25<br />

lpcd is also acceptable).<br />

The scheme must meet the<br />

engineering st<strong>and</strong>ards <strong>and</strong><br />

service levels prescribed in<br />

the <strong>Board</strong>’s technical<br />

manual, <strong>and</strong> the scheme<br />

proposal must include<br />

measures to mitigate<br />

adverse environmental<br />

consequences.<br />

3 A scheme must meet the<br />

following criteria on<br />

Sustainability <strong>and</strong><br />

Willingness to pay:<br />

• The community contributes<br />

to the capital cost covering<br />

all unskilled labor, locally<br />

available materials,<br />

porterage of non local<br />

materials <strong>and</strong> the cash<br />

contribution is at least<br />

2.5% of the hardware cost<br />

in the Gravity <strong>and</strong> 10% in the Ground<br />

water. Community also contributes all<br />

additional costs for service levels<br />

higher than basic service level those<br />

provided under <strong>Fund</strong>’s technical<br />

manual;<br />

• The community makes satisfactory<br />

operation <strong>and</strong> maintenance<br />

arrangements, including engaging<br />

a village maintenance worker,<br />

establishing a system for collecting<br />

maintenance funds on a regular<br />

basis, <strong>and</strong> paying the first year’s<br />

operation <strong>and</strong> maintenance cost in<br />

advance which is 3% of the total<br />

scheme construction cost in the Hills<br />

<strong>and</strong> 4% in the Terai;<br />

• A WSUG is formed <strong>and</strong> registered<br />

under the <strong>Water</strong> Resources Act<br />

12<br />

<strong>Institutional</strong> <strong>Profile</strong>


comprising all beneficiary families, <strong>and</strong><br />

a WSUC with representatives from each<br />

cluster, including at least 33% women<br />

members, is constituted to manage the<br />

implementation, operation <strong>and</strong><br />

maintenance of the scheme; <strong>and</strong><br />

• All households in the community<br />

are covered.<br />

The above eligibility criteria are applied to schemes to qualify for both<br />

the development <strong>and</strong> implementation phases of the scheme cycle.<br />

SOCIAL INCLUSION<br />

Basic design of the project is<br />

‘dem<strong>and</strong> driven approach’ where<br />

every willing household in the<br />

community is included as<br />

beneficiary of the project. RWSSP-<br />

II poses special focus on social<br />

inclusion (gender, caste/ethnic<br />

<strong>and</strong> disadvantaged people). This<br />

would promote open <strong>and</strong><br />

meaningful participation of poor,<br />

women <strong>and</strong> the excluded groups<br />

in activities related to improved<br />

water supply <strong>and</strong> sanitation. They<br />

are involved in decision making<br />

process from pre-development to<br />

implementation phase. The<br />

following aspects are<br />

consolidated <strong>and</strong> integrated for<br />

ensuring social inclusiveness.<br />

• Inclusion of Social mapping<br />

focusing on ethnic<br />

information in Prefeasibility<br />

Form<br />

• Provision of up to 50%<br />

Subsidy to poor including IP,<br />

Dalit <strong>and</strong> disadvantaged<br />

people in community cash<br />

contribution<br />

• Service extended to Remote<br />

Areas (generally inhabited by<br />

poor including IP, Dalit <strong>and</strong><br />

disadvantaged people)<br />

• Provision of support for<br />

transportation cost in Remote<br />

Areas<br />

• Information dissemination<br />

about the <strong>Board</strong> policy,<br />

working modalities, etc. in<br />

different nine IP languages<br />

• Priority given in selection of IP<br />

<strong>and</strong> Dalit sensitive SOs <strong>and</strong><br />

selection of IP <strong>and</strong> Dalit staffs<br />

in SOs, SAs <strong>and</strong> the <strong>Board</strong><br />

• Capability enhancement of<br />

the staff of <strong>Board</strong> <strong>and</strong> partner<br />

organizations to support in<br />

social inclusion<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

13


FINANCIAL TRANSPARENCY<br />

The community implements the scheme under a tripartite<br />

agreement among the <strong>Board</strong>, SO <strong>and</strong> community. The<br />

community operates a joint account with SO to manage<br />

the scheme implementation. The <strong>Board</strong> transfers all<br />

construction related funds to this joint A/C where 2.5%<br />

of community cash contribution to invest for construction<br />

work is initially deposited. The community in support of<br />

SO manages the entire scheme-related procurement<br />

that constitutes non-local materials like pipe, cement,<br />

fittings, etc. through the joint account. The SO as joint<br />

signatory ensures quality of materials procured. Each<br />

SO <strong>and</strong> community is required to maintain accounts of<br />

income <strong>and</strong> expenditure in the formats provided by the<br />

<strong>Board</strong>, <strong>and</strong> regularly provide the <strong>Board</strong> with updated<br />

actual scheme accounts on expenditure of any payment<br />

before a next payment is made. Independent auditors<br />

recruited by the <strong>Board</strong> finally audit their accounts.<br />

<strong>Board</strong>’s Materials Quality Spot- check mechanism<br />

further ensures quality of materials as per st<strong>and</strong>ard.<br />

Apart from this, the community also manages <strong>and</strong><br />

mobilizes funds received from the <strong>Board</strong> through<br />

SOs for <strong>Sanitation</strong> Revolving Loan <strong>Fund</strong> (SRLF) <strong>and</strong><br />

Women Technical Support Service (WTSS) <strong>Fund</strong>.<br />

Public auditing is exercised in each scheme during<br />

<strong>and</strong> after completion of the scheme in front of the<br />

community at mass meetings. Financial audit is also<br />

done in order to ensure better financial<br />

management <strong>and</strong> transparency. Information related<br />

to funding sources <strong>and</strong> contributions are displayed<br />

on a display board in each community.<br />

Local resource mobilization <strong>and</strong> community<br />

contribution to the program has been the inherent<br />

characteristic of RWSSFDB. The community identifies<br />

different options <strong>and</strong> makes choice of technical<br />

options including service level options such as<br />

community or private household connection of tap<br />

<strong>and</strong> provision for future expansion, type of tap-st<strong>and</strong><br />

<strong>and</strong> toilets, etc. Higher-level option means higher<br />

level of community contribution.<br />

14<br />

<strong>Institutional</strong> <strong>Profile</strong>


MONITORING, EVALUATION<br />

AND SUPERVISION<br />

The <strong>Board</strong>, set up as a facilitating<br />

agency, maintains that the<br />

primary managers of specific<br />

schemes are the WSUCs <strong>and</strong><br />

SOs. However, the <strong>Board</strong> adopts<br />

a comprehensive monitoring,<br />

evaluation <strong>and</strong> supervision system<br />

for both the development <strong>and</strong><br />

implementation phases to ensure<br />

technical quality <strong>and</strong> effectiveness<br />

of beneficiary participation. The<br />

<strong>Board</strong> also monitors<br />

implementation progress, impact<br />

of the investments made, <strong>and</strong> the<br />

quality of performance of the<br />

SOs. Such monitoring puts<br />

emphasis on the responsibilities<br />

<strong>and</strong> interests of communities <strong>and</strong><br />

SOs in terms of process, outputs<br />

<strong>and</strong> quality control. The <strong>Board</strong><br />

has adopted third party<br />

monitoring system which is being<br />

carried out through the selected<br />

service agencies (SAs) i.e.,<br />

private consultancy firms. The<br />

<strong>Board</strong> also conducts impact as<br />

well as other strategic studies for<br />

lession learnings.<br />

ROLE OF WOMEN IN SCHEME<br />

IMPLEMENTATION<br />

The <strong>Board</strong> upholds the importance of women<br />

involvement in all stages of a scheme cycle,<br />

because they are the main collectors, users<br />

<strong>and</strong> managers of household water. At the<br />

same time, they are the ones who influence<br />

family sanitary habits through their central<br />

role in family hygiene, child care <strong>and</strong> food<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

15


preparation. For this reason,<br />

the <strong>Board</strong> promotes the role of<br />

women in five key areas:<br />

(i) Representation of at least<br />

33% women members in<br />

WSUC is m<strong>and</strong>atory <strong>and</strong><br />

preferably one to undertake<br />

the responsibility of<br />

treasurership;<br />

(ii) HSE <strong>and</strong> NFE activities focus<br />

on women;<br />

(iii) Women are encouraged to<br />

take advantage of Women’s<br />

Technical Support Services<br />

(WTSS) program, providing<br />

specific skill <strong>and</strong><br />

management training to<br />

increase the scope of income<br />

generating activities, <strong>and</strong><br />

help women gain access<br />

to formal credit systems;<br />

(iv) Women are encouraged to<br />

form Mother <strong>and</strong> Child Tap<br />

St<strong>and</strong> Groups (MCTGs) to<br />

collect monthly operation<br />

<strong>and</strong> maintenance fees, <strong>and</strong><br />

to maintain sanitation<br />

condition at tapst<strong>and</strong>s; <strong>and</strong><br />

(v) Selection <strong>and</strong> training to<br />

Village Health Promotor (VHP).<br />

PROMOTION OF<br />

PRIVATE SECTOR<br />

The main objective of the Government to establish <strong>and</strong><br />

operationalize the <strong>Board</strong> is to gradually transfer the water supply<br />

<strong>and</strong> sanitation service delivery responsibility to the private sector.<br />

With this objective, the <strong>Board</strong> is designed to operate in<br />

partnership with SOs <strong>and</strong> communities, <strong>and</strong> obtain the services<br />

of national level SAs for technical, institutional, <strong>and</strong> operational<br />

assistances in various stages of scheme implementation.<br />

16<br />

<strong>Institutional</strong> <strong>Profile</strong>


COORDINATION<br />

AND LINKAGE<br />

The vertical <strong>and</strong> horizontal coordination <strong>and</strong><br />

relation with National Planning Commission,<br />

concerned ministries/departments, stakeholders<br />

<strong>and</strong> IDA/World Bank, DFID <strong>and</strong> other concerned<br />

donors working in water supply <strong>and</strong> sanitation at<br />

centre <strong>and</strong> with DDCs, VDCs, Line Agencies, I/<br />

NGOs, CBOs, WSUGs <strong>and</strong> other stakeholders including communities at local level is maintaining well for<br />

making favorable environment <strong>and</strong> smooth implementation/ running of RWSSFDB program in rural areas of<br />

the country.<br />

CENTRAL LEVEL<br />

The <strong>Board</strong> has been continuously <strong>and</strong><br />

successfully contributing to national<br />

policy decisions in RWSSP sector by<br />

participating in the following activities:<br />

• Supporting M&E Unit of MPPW<br />

through providing information regarding<br />

baseline <strong>and</strong> progress/outcome of the<br />

<strong>Board</strong> in given formats.<br />

• Participating in national level meetings/<br />

workshops organized by MPPW <strong>and</strong><br />

sector organizations.<br />

• Participating in National Arsenic<br />

steering Committee Coordinated by<br />

Department of <strong>Water</strong> <strong>Supply</strong> <strong>and</strong><br />

Sewerage (DWSS).<br />

• Participating in National <strong>Sanitation</strong><br />

Steering Committee Coordinated<br />

by DWSS.<br />

LOCAL LEVEL<br />

The <strong>Board</strong> has been maintaining coordination well through<br />

SOs <strong>and</strong> communities with DDC/VDC in implementation<br />

through following mechanism:<br />

• Making m<strong>and</strong>atory to include scheme in District<br />

Development/District Strategic Plan.<br />

• Opening door for VDC <strong>and</strong> DDC in cost-sharing<br />

• Involve DDC/VDC representatives in key milestone/M&E<br />

events.<br />

• Enhance information sharing with sufficient information that<br />

VDC <strong>and</strong> DDC require.<br />

• Include VDC technicians in technical training<br />

• Link DDC/VDC for follow-up supports to community<br />

particularly in Post-Implementation Phase<br />

It is expected that this would further support local government<br />

to adopt dem<strong>and</strong>-driven participatory approaches <strong>and</strong><br />

involving NGOs <strong>and</strong> private sector in implementation of water<br />

supply <strong>and</strong> sanitation projects.<br />

RURAL WATER SUPPLY AND SANITATION FUND DEVELOPMENT BOARD<br />

March 2007<br />

17


SOURCE OF FUNDING<br />

The total <strong>Fund</strong> for RWSSP-II is US $ 41.5 millions<br />

with the share of GoN (28%), IDA/World Bank (61%<br />

as loan) <strong>and</strong> community (11%) till August 2009.<br />

Additionally US $ 27 millions has been provided by<br />

the IDA/World Bank as grant to RWSSP-II with the<br />

time extension up to 2010 to deliver drinking water<br />

& sanitation facilities in 582 communities benefiting<br />

some 4,07,400 additional rural people in Nepal.<br />

Sources of <strong>Fund</strong>ing (US 41.5 millions)<br />

Community (Cash & Kind)<br />

11%<br />

IDA<br />

61%<br />

GoN<br />

28%<br />

MATERIALS FOR SHARING<br />

A. PUBLICATIONS<br />

• SARAR Participatory Tools<br />

• SARAR Participatory Tools H<strong>and</strong> Book<br />

• Health <strong>and</strong> <strong>Sanitation</strong> Manual<br />

• VHP Manual<br />

• VMW Manual<br />

• Annual Reports<br />

• <strong>Institutional</strong> <strong>Profile</strong> of the <strong>Board</strong><br />

• <strong>Water</strong> <strong>and</strong> <strong>Sanitation</strong> Posters<br />

• KHASKOSH Newsletter<br />

• Document in 9 Major IPDP Languages<br />

• Guidelines for Gravity <strong>Water</strong> <strong>Supply</strong><br />

<strong>and</strong> Ground <strong>Water</strong> System Survey,<br />

Design <strong>and</strong> Estimate<br />

• Website: http//www.rwss.org<br />

B. AUDIO VISUALS<br />

• SARAR Participatory Tools<br />

Documentary<br />

• Tapping the Source<br />

Documentary<br />

• <strong>Water</strong> <strong>and</strong> Life Documentary<br />

• <strong>Water</strong> for Health Documentary<br />

• Hamro Pani (Our <strong>Water</strong>) Documentary<br />

• KHASKOSH-Radio Program<br />

(All episodes)<br />

18<br />

<strong>Institutional</strong> <strong>Profile</strong>

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