Economic Assessment of Sanitation Interventions in Vietnam - WSP

Economic Assessment of Sanitation Interventions in Vietnam | Annex TablesProjectRationalImplementerProgram approach andactivitiesImpactsLessonsSanitation marketing project in Binh Trieu commune, Thang Binh district, Quang Nam ProvinceEnhancing environmental sanitation awareness and demand responsiveness, as well as capacitybuilding for the sanitation service provider, through sanitation marketing activities in low-income ruralcommunities in the central region, with technical and financial support from an International NGO, IDE(2003-2004). Site R5 of the current study.IDE Quang NamIEC activities and trainingWaste water mostly runs onto gardens and becomes absorbed into the soil.Although garbage collection exists, it is conducted once per week. Therefore garbage is kept insidehouses or piled in market areas, polluting the environment.Only 200 of 600 households in the project area have access to clean water. In addition, a sand plantlocated close to the residential area has negative impacts on underground water, decreasing the waterreserve for agriculture.Some 30% of households in the selected area do not have latrines, so open defecation takes place inthe forest or on sand banks. The remaining 70% of households have pit latrines or one-vault latrines.The decrease in the prevalence of diarrhea among children aged under 16 in both the experiment andcontrol groups was significant, and appears to be the result of two factors: the substantial increase inhousehold access to hygienic latrines; and the significant improvement of key hygiene practices withinthe experiment core target groups. Cluster key indicators for hygiene practices were: consistent useof sanitation facilities; improved rates of hand washing with soap; and safe excreta disposal. The coretarget groups were defined as the primary child caregivers and children under 16 years old.A reliance on external support (IDE) was crucial, as this was central to the development by privateoperators of a marketing campaign that involved significant research, the use of communicationprofessionals, and the employment of different media strategies.Perhaps the most important finding was that the increase in demand among the experiment groupwas achieved without the use of capital cost subsidies. This was accomplished through the useof locally available market innovations that suited local lifestyles, and most importantly, througheffective communication. During project implementation, rural households made more than 10,000investments in improved latrines from local, small-scale service providers at full market cost. Theuse of external subsidies for business development and promotion is often more sustainable thansubsidizing sanitation hardware, because once demand is stimulated and the market is established,suppliers take over promotion even if external funds are withdrawn. This also means that theconsumer does not have to experience a sudden price shock from unsubsidized hardware, which hasled to the collapse of many past sanitation programs. Prior to the project, IDE had encountered thisand other negative consequences of subsidizing sanitation hardware in Vietnam.Private sector providers can now continue to serve rural communities well beyond the duration periodof the project. It has been shown that masons can supply spare parts and provide post-sale servicesto existing customers, cater to the demands of new customers, and even expand their customer baseand businesses through innovative local promotional strategies.Full cost recovery also offers better hope for the sustainability of sanitation investment. Whenhouseholds consciously choose to purchase a facility representing more than 10% of their annualbudget, the likelihood that they will properly use and maintain the facility is high. It is not surprisingthat post-sale services have now emerged in the local sanitation market in the project areas.Consumers making such an important investment tend to demand increased accountability fromservice providers.122Economic Assessment of Sanitation Interventions