Economic Assessment of Sanitation Interventions in Vietnam - WSP

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Economic Assessment of Sanitation Interventions in Vietnam | Annex TablesProjectRationalImplementerProgram approach andactivitiesImpactsLessonsEnvironmental sanitation project for Buon Ma Thuot CityImprovement of the environmental sanitation situation in this 3 rd category town in the centralhighlands, characterized by low-incomes, and including ethnic minorities, from technical and financialsupport from a bilaterial grant by Danida. Future expansion is expected under the loan conditions(2001 – 2009). Site U5 is for the current study, 2001 – 2009.Urban Management and Environmental Sanitation Company of Buon Ma Thuot cityConstruction of a separate sewerage and drainage system, household connection, treatment ofwastewater, and reuse of treated wastewater for coffee irrigation. Communication activities.While Tan Tien used to be the city’s ‘trash bag’, the environment has now been improved and thestreets are clean. All residents are willing to cooperate with the urban environment company in trashcollection, and to pay a fee.Diseases related to a polluted environment and solid waste (for example, diarrhea and sore eyes) havedecreased.People’s knowledge has been improved: people better understand the dangers and negative impactsof a polluted environment on health, and at the same time, people gather garbage at the right place,and agree voluntarily to connect to the drainage system.The quality of treated wastewater is compatible with coffee tree irrigation. Residual wastewaternutrients have reduced the need for supplemental fertilizer. Calculations show the cost of supplyingreclaimed wastewater was equal to or less than alternative supply costs. Reclamation of wastewateralso provides a reliable, sustainable water supply to help reduce poverty among subsistence farmers,including those from ethnic minorities.The Buon Ma Thuot City separate sewerage system is the first of its kind in Vietnam. The connectionof households to a separate sewer system has never before been attempted in Vietnam. Thus, theexperience gained through this project should provide valuable insight for similar future projects.The selected sewerage option was a low-cost, small-bore sewerage scheme, based on plasticsand pipelines. The combination of waste stabilization ponds and water reclamation presents a goodexample of a successful low-cost sanitation option.Early planning of house connection activities is essential. For example, the house connectionadministrative unit must take an active role in promotion to end-users. The institutional frameworkmust decree mandatory connection.IEC promotion will stimulate positive community response.Government capital subsidy to households creates favorable conditions for implementation, but toensure the financial sustainability of the sanitation system, the “polluter pays” principle should beapplied.ProjectRationalImplementerProgram approach andactivitiesWater supply and sanitation for small towns program (WSPST)Improvement of water supply and sanitation situation in the 4th and 5th category towns in thenorthern delta and mountainous areas, with technical and financial support (grant and loan) from theFinish Government (2002 – 2011).Department of Construction in four provinces: Hai Phong, Hung Yen, Thai Binh and Bac Kan.Provision of centralized water supply systems under the loan agreement provided that the capitaland operation and management (O&M) costs of the system will be fully recovered. Constructionof drainage and sewerage systems in the central parts of the towns using low-cost technologies;involvement of a broad group of stakeholders in the different steps of the approach; broad capacitydevelopment program of good quality, especially for water and sanitation sector stakeholders;revolving fund and micro-finance for toilet facility improvement through local Women’s Union.Communication activities.118Economic Assessment of Sanitation Interventions
Economic Assessment of Sanitation Interventions in Vietnam | Annex TablesImpactsLessonsThe WSPST program contributes to the sustainability of water and sanitation services for the smalltowns covered. This is the first time in Vietnam an official development assistance (ODA) project hassupported 4th and 5th category towns in water supply and sanitation. The emerging model is in linewith the overall decentralization and privatization processes and provides an important opportunity forthe different stakeholders to define their new roles and responsibilities and to develop their capacityaccordingly. Support takes the shape of day-to-day guidance in the preparation and implementationof the investment projects according to the policies and capacity development of the differentstakeholders.Important policies for the water and sanitation sector were developed during Phase I of the program,notably Decree 117 for the provision of clean water and Decree 88 for sewerage and drainagemanagement in urban areas. The WSPST program has been instrumental in developing Decree 117and continues to be instrumental in working out the practical modalities for its implementation. Theprogram is also at the forefront of the implementation of Decree 88 in small towns. An important factoris that under Decree 117 the connection fee has been abolished and these costs are incorporated inthe service fee. This has strongly enabled the ability of poorer households to get connected.The WSPST program is making important contributions to the development of a sustainable financialwater and sanitation services model for small towns in Vietnam. Consumers are consulted and madeaware of the tariffs and the benefits for their health. The feasibility of the investments is assessed andfirst results related to collection rates are very satisfactory (almost 100%). The steps made by theprogram in making the paradigm shift from a subsidy/budget model to a public business model arepromising and laudable.WSPST is considered to have encouraged an important evolution in development of the water sectorin the provinces involved, whereby the provincial water enterprises can expand their service area andbuild their capacity beyond the provincial towns.The systematic and comprehensive approach of the project formulation, management, implementationand evaluation of the WSPST provides good lessons and serves as an example for other projects, andfor the preparation of appropriate legislative documentation for the urban water supply and sanitationsector of Vietnam. This includes the following components: a socio-economic survey; ‘willingness topay’ and ‘commitment to connect’ studies and activities that accompany infrastructure development(capacity building, human resource development strategy, management model and financial structure,awareness raising programs, evaluation of different technological options, and project monitoring andevaluation). These kinds of component are often neglected in national budget programs and WSPSTis showing the benefits of these components and the way to bring them into the project cycle.WSPST is an excellent testing field for new approaches and technologies in sanitation involved,especially for low-income areas with differing topographical and other natural, socio-economicalconditions. Separate sewerage and wastewater treatment (off-site) technologies are uncommon inVietnam. The decentralized sanitation scheme, which uses low-cost technology options such assmall bore sewerage, baffled septic tanks with anaerobic filters and constructed wetlands, and wastestabilization ponds seems to have been accepted in the project towns. The applicability of technologyalternatives has been tested under the program and lessons from the first implemented systems willbe taken into account at later stages, and in other projects.The costs of a centralized water supply can be fully recovered even in low-income communities.The key is adequate quality from the service supplier, and appropriate awareness-raising to ensurewillingness-to-pay on the demand side. In terms of water supply technology options, centralizedsystem are often the only ones considered. However, decentralized options should also beconsidered, especially for more remote and/or poor inhabitants. Technologies include rain waterharvesting (on roofs), household-level treatment, and shared water supply connections.Solid waste management should be included in the program, at least in the IEC activities.The program approach is especially strong in increasing the participation of consumers, with specialattention paid to the poor and women. The application of a Service Based Approach instead of aSystem or Project Approach could strengthen poverty reduction even more. The new administrativeand financial tools and mechanisms further develop implementation capacities.The Sanitation Revolving Fund (micro-credit scheme) contribution for poor households andhouseholds close to meeting the poverty criteria should cover the investment cost of sanitationconstruction. Interest rate and payback period conditions should be within the reach of the poor.Delays in project implementation should be foreseen.www.wsp.org119
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Economic Assessment ofSanitation In
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Economic Assessment of Sanitation I
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ForewordTarget 10 of the Millennium
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Glossary of TermsBenefit-cost ratio
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AcknowledgmentsThe Economics of San
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V. National Benefits of Improved Sa
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Table 32. Sanitation coverage, and
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Figure 34. What factors were of mos
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Annex Table E1. Level of satisfacti
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Annex Table J1. Site U1 (Dong Thap,
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PopulationSelected Development Indi
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III.Study MethodsThe study methodol
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IV.Local Benefits of Improved Sanit
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Economic Assessment of Sanitation Interventions in Vietnam - WSP

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