Water and Sanitation Program: REPORT The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States Lessons from Liberia Dominick de Waal and Max Hirn July 2015 Authors: Dominick de Waal and Max Hirn The Water and Sanitation Program is a multi-donor partnership, part of the World Bank Group’s Water Global Practice, supporting poor people Photo credits: Anusa Pisanec in obtaining affordable, safe, and sustainable access to water and sanitation services. WSP’s donors include Australia, Austria, Denmark, Acknowledgements Finland, France, the Bill & Melinda Gates Foundation, Luxembourg, The authors would like to thank the Government of Netherlands, Norway, Sweden, Switzerland, United Kingdom, United Liberia’s Ministries, Departments and Agencies that were States, and the World Bank. at the forefront of this work including Assistant Minister George Yarngo at the Ministry of Public Works and Mr Disclaimer Charles Allen, Managing Director of the Liberia Water The findings, interpretations, and conclusions expressed herein and Sewer Corporation without whom this work would are entirely those of the author and should not be attributed to the not have been possible. World Bank or its affiliated organizations, or to members of the Board of Executive Directors of the World Bank or the governments they The team thanks Chantal Richey, Deo-Marcel Niyungeko, represent. The World Bank does not guarantee the accuracy of the Anusa Pisanec, Abdul Koroma, Joseph Collins and Heather data included in this work. The boundaries, colors, denominations, and Skilling for their part in delivering the technical assistance other information shown on any map in this work do not imply any and their inputs to the paper. Thanks also to peer reviewers judgment on the part of the World Bank concerning the legal status of Kremena Ionkova and Stephan Massing for their comments any territory or the endorsement or acceptance of such boundaries. and additional inputs. Copyright Statement The technical assistance described in this paper was made The material in this work is subject to copyright. Because The World possible with support from USAID and all other donors to Bank encourages dissemination of its knowledge, this work may be WSP’s Multi Donor Trust Fund. reproduced, in whole or in part, for noncommercial purposes as long as full attribution to the work is given. © 2015 International Bank for Reconstruction and Development/The World Bank The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States Lessons from Liberia Dominick de Waal and Max Hirn July 2015 www.wsp.org Contents Executive Summary.......................................................................................................................................................... v Abbreviations and Acronyms............................................................................................................................................vi I. Introduction.............................................................................................................................................................1 II. Liberia’s Post-war WASH Situation: Anatomy of a Broken Sector.......................................................................3 From Emergency Response towards Country-led Development.........................................................................4 III. IV. Generating a Detailed Picture of Need as an Input to National Planning............................................................7 Box 1: Pioneering New Data Collection Technologies during the Liberian Waterpoint Infrastructure Survey...............9 V. Facilitating a Multi-Stakeholder Planning and Review Process.........................................................................10 Box 2: Reflections on the 2011 Liberia WASH Compact.........................................................................................10 Box 3: Joint Sector Reviews: A Mechanism to Promote Sector Learning and Transition to Country-led .Development. ..............................................................................................................................................11 VI. Informing the Multi-Stakeholder Dialogue - Translating Sector Data into Detailed Investment Plans.............13 VII. Breaking the Capacity Conundrum with Hands-on Technical Assistance.........................................................15 VIII. Lessons for Practitioners......................................................................................................................................16 IX. Conclusion. ............................................................................................................................................................17 .................................................................................................................................................................18 Bibliography. iv Executive Summary The choice made early in the post-conflict transition by The SIP provided direction to existing sector allocations and the international community to directly fund WASH has also been a strategic tool that has influenced increased service delivery through non-state actors rather than bilateral and multilateral aid into the country following through the Liberian government undermined both sector the Ebola virus outbreak, including spurring the World policy dialogue and the formation of robust government Bank’s re-engagement in Liberia’s WASH sector. These aid institutions able to lead and orchestrate service delivery by flows should seek to better connect policy dialogue within non-state actors. individual sectors to higher-level dialogue on state-building. This will help to resolve bottlenecks beyond WASH specific The lack of a substantive policy dialogue – particularly institutions – such as on decentralization – that have in the 2003 to 2007 period – meant that a fragmented potential to enhance the reach and rate of service delivery. institutional setup emerged across a number of ministries It will also reinforce mutual accountability among domestic with no clear locus of policy authority. An earlier move and donor sector actors driving up investment levels to to funding water, sanitation and hygiene (WASH) service those needed for universal access. delivery through country systems (for both urban and rural WASH) – as was done in the health sector – would have This paper aims to inform this new wave of support to been a point of leverage to influence institutional reforms Liberia’s WASH sector by looking back at service provision and build a nucleus of capacity in the Government of Liberia in the country over the period 2003 to 2015 and reflecting (GoL’s) institutions responsible for WASH on which future on the transition from the post-war emergency response to capacity building could have capitalized. the nascent development response. The paper first describes key trade-offs encountered by the international community Starting in 2011, the Water and Sanitation Program (WSP), in this transition, describing choices made in Liberia that the United States Agency for International Development held back government capacity to orchestrate a national (USAID) and other development partners provided response to service delivery. It then goes on to describe how technical assistance to a multi-stakeholder sector planning WSP and other development partners have, since 2011, process that has played a key role in addressing this early worked with the government of Liberia to build and attract mistake transitioning the sector from one dominated by a investment to a country-led WASH development program. humanitarian response approach, to one that is based on The paper presents lessons for sector practitioners operating a longer-term development approach. This TA has helped in post-crisis transition situations – both those in developing build a detailed picture of service delivery and generated country governments and their development partners. clear priorities for capital investments reflected in the Liberia WASH Sector Investment Plan (SIP). The SIP and TA to improve the operational efficiency of sector institutions, specifically the main utility, has mobilized an additional US$30m in investments for WASH in Liberia. www.wsp.org v Abbreviations and Acronyms AfDB African Development Bank DDRR Demobilize, disarm, rehabilitate and reintegrate DfID United Kingdom’s Department for International Development DGIS Dutch Directorate-General for International Cooperation DRC Democratic Republic of Congo EU European Union GoL Government of Liberia GPOBA Global Partnership of Output-Based Aid GPS Global Positioning System FY Financial Year IDA International Development Association JSR Joint Sector Review LWSC Liberia Water and Sewer Corporation MDGs Millennium Development Goals MTEF Medium Term Budget Framework MoF Ministry of Finance MoH Ministry of Health MPW Ministry of Public Works MWSSRP Monrovia Water Supply and Sanitation Rehabilitation Project NGOs Non-governmental organizations NWSHPC National Water Sanitation and Hygiene Promotion Committee NOCAL National Oil Company of Liberia OECD Organisation for Economic Co-operation and Development PRS Poverty Reduction Strategy PBA Program-Based Approach SIP Sector Investment Plan SSP Sector Strategic Plan SPR Sector Performance Report SWAp Sector-wide Approach to Planning TA Technical Assistance WASH Water, sanitation and hygiene WHO World Health Organization WSP Water and Sanitation Program - Africa of the World Bank UN United Nations UNICEF United Nations Children’s Fund USAID United States Agency for International Development vi I. Introduction Development aid to Liberia has been extraordinarily The dearth of investment in the country’s WASH sector high, yet little has been allocated to the water, sanitation has been accompanied by and has contributed to a and hygiene (WASH) sector. At its peak in 2010, Liberia deep-seated lack of absorption capacity. The absence received US$358 per capita in aid flows, higher than any of government institutions capable of systematic sector other country in Africa and one of the highest levels in the planning, coordination and capacity to implement WASH world. Yet in the decade to 2011 aid allocated for WASH improvements is a real barrier to the possibility of channeling averaged just over US$2 per capita (OECD 2015). sector investment through country systems. Domestic allocations to the WASH sector were also low, The persistence of this critical bottleneck can be traced to a estimated at only US$2.5m or 0.4 percent of the national post-war “capacity conundrum”. The wartime destruction budget in 2013-14 (Government of Liberia 2014). of infrastructure and institutional capacity, combined Altogether, domestic and external funding for WASH in with the urgent need to react post-conflict, discouraged Liberia has averaged between US$25 to 30m annually donors and Liberia’s own finance ministry from investing over the past three years, falling far short of the estimated in run-down state institutions in favor of working through US$120m needed per year to reach national or Millennium alternative systems. Yet, bypassing state institutions has Development Goal (MDG) targets (Government of kept these in a diminished state and thus limited the Liberia 2013, 12). sector’s capacity to absorb finance and turn it into services – so inhibiting investment. This conundrum was further Liberia’s WASH sector faces real and complex structural entrenched as government attention in post-war Liberia problems rooted in the post-conflict emergency response. was focused on the countless pressing challenges, many of For many years after the war, the WASH sector remained which were given greater political priority (such as road highly fragmented and lacked cohesive planning, with building, electricity, health) or simply seen by government ineffective government institutions remaining on the as not needing attention as they were being dealt with by sidelines. Non-state actors provided emergency relief, but non-state actors. lacked the overview and reach to deliver services equitably across the country, or to put in place management systems and processes to sustain interventions effectively. LIBERIA US$25M - US$30M Population Average annual domestic and external funding for WASH in 4.397 million Liberia over the past three years. LIBERIA growing at an annual rate of 3.9 percent US$120M (2014 National Census) $2,027 billion (http://data.worldbank.org/country/liberia) Estimated amount needed per year to reach national or Millennium Development Goal (MDG) targets www.wsp.org 1 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Introduction Over the past four years WSP has focused its technical Specific activities have included: i) generating a picture assistance and advisory support to work with government, of service delivery in the sector through high quality but donors and civil society actors in Liberia to overcome this difficult-to-collect data; ii) structuring this data into projects capacity-conundrum and attract additional investment in a sector investment plan (SIP); iii) playing an active flows to the WASH sector. The primary strategy has been role in a multi-stakeholder planning and review process; to strengthen country systems and institutions and to draw and, iv) providing hands-on TA preparing institutions for them back into overseeing and delivering WASH services. investment. WSP has also played an active part in a multi-stakeholder national planning and review processes with the broad aim This work has contributed to transitioning the sector from of helping the government orchestrate the sector by defining its externally driven emergency phase to an increasingly national priorities and investment projects more clearly. country-led development approach, helping mobilize at least an additional US$ 30m in investments to the Liberian WASH sector. Xxxxxxxxxxxxx x xxxxxxxxxxx xxxx xxxxxxxxxxxxxxxxxxxxxxxxxx 2 II. Liberia’s Post-war WASH Situation: Anatomy of a Broken Sector Liberia’s post-war capacity conundrum had long trapped the war decade is closely linked to the weakness of national WASH sector in a low-capacity, low-funding equilibrium, sector institutions. In rural areas, the Ministry of Public and as a result, large sections of the population have Works (MPW) – a large institution primarily devoted to remained dangerously exposed to unsafe water and sanitary construction of roads and buildings – hosted a division conditions. Access to improved sanitation was below 20 mandated to manage rural water, sanitation and hygiene percent in the early 2000s and WASH-related diseases such programs. However, MPW has struggled with chronic as diarrhea were common. Cholera, in particular, remains technical and financial capacity gaps, operating with endemic. Liberia experienced an outbreak of over 34,000 personnel that have only basic levels of education supported cases in 2003 and has consistently reported over 1,000 cases with an annual budget below US$100,000 in past years, a year up to 2011 (WHO 2012). More recently, unsafe according to a 2014 Sector Performance Report. A sector WASH services and the lack of proper hygiene practices capacity development plan completed in 2012 indicated contributed “to the propagation of the Ebola virus”, and that MPW staff lack training, equipment and funds for was even listed as a “critical factor” in the context of hand- core duties including pump maintenance, monitoring washing in schools (United Nations / World Bank / EU / the functionality of water points, or development of AfDB 2015). infrastructure (Government of Liberia 2014). While access to improved water sources has been reported In urban areas, the Liberia Water and Sewer Corporation as high as 61% nationally in the early 2000s and up to 75 (LWSC) is responsible for the provision of water and percent in 2012 (WHO/UNICEF 2014), these figures sanitation services, with a stated vision to ensure “safe are misleadingly optimistic as many “improved” sources drinking water throughout Liberia” and to “meet the water are demonstrably unsafe. In the capital Monrovia, the needs of all [urban] residents” (LWSC 2015). However, it has majority of the population relies on point sources such as yet to demonstrate the capacity to meet this ambitious goal hand-dug wells, with less than 15 percent having access to in the post-war period. As late as 2012, an institutional audit piped water. A WSP-financed water quality study found called LWSC “an organization in crises [sic]”, “financially the majority of Monrovia’s protected point sources to be insolvent”, “unable to meet basic service deliverables […] heavily contaminated with coliform bacteria and nitrates with most of its infrastructure left inoperable or in poor and so unsafe for drinking (UHL & Associates 2011). condition”, an organization in “firefighting mode with Outside Monrovia, most cities have no piped supply at all. almost all of its limited capacity dedicated to dealing with Even in 2012, over 20 percent of the rural population still daily emergencies” (GBSI / Government of Liberia 2012). resorted to surface water as their main source of drinking water. Tests on small sets of water samples from rural point sources indicate that up to 40 percent of water points in rural counties such as Sinoe are also unsafe for drinking. 15% of households in Monrovia have access to piped water, while the majority rely on point sources such as hand-dug wells. The lack of sufficient sector investment in the first post- II. From Emergency Response towards Country-led Development WSP’s engagement in 2010 came on the back of significant in Liberia’s dense urban environments, especially given the progress in delivering basic water and sanitation services absence of proper sewer systems, fecal sludge management under the international emergency response following the systems or any organized system of chlorination. Yet, even end of the civil war. During the initial humanitarian support the larger UN agencies and NGOs were unwilling to phase after the 2003 peace agreement, a host of non-state build the desperately needed piped water and sanitation actors mobilized a nationwide response that increased the infrastructure in urban areas and develop the related number of improved public water points built annually capacity. At the same time, the national utility was in from around 100 in 2003 to 300 in 2004 and to a peak crisis, lacking any significant investments to restore its of 1,435 in 2007 (World Bank 2011). Over 45 percent of infrastructure or capacity. these points were built by UN agencies and international NGOs, approximately a third by smaller NGOs, local This “capacity conundrum”, that is, the undermining churches, communities, companies and private individuals, of local systems through the use of parallel emergency and 4 percent by the Government of Liberia (GoL) (World systems, is neither unique to the WASH sector nor to Bank 2011). The government was still a transitional one and Liberia. After crises and in the absence of an effective had little involvement in either directing or implementing government, a common modus operandi is that non-state service delivery. These predominantly non-state efforts actors (particularly NGOs and UN agencies) step in to were the driving force for raising access to protected water provide urgent humanitarian relief and, in extreme cases sources by 14 percent between 2000 and 2012 (WHO/ such as Liberia, effectively manage the country. This type of UNICEF 2014). engagement involves the deployment of peacekeeping forces, setting up a national transitional government, initiating The focus in the early years was on meeting the short- DDRR programs (demobilize, disarm, rehabilitate and term needs of people following the war. However, these reintegrate) and restoring basic services. The UN presence, initiatives did not provide a working service delivery model vital in the early stages of transition to prevent conflict, that could be sustainably scaled up to achieve the national promote stability and meet basic needs, soon faced difficult targets of universal coverage by 2030. Projects focused on trade-offs in balancing quick wins and confidence-building quick impact and did not seek to establish longer-term measures with institution and state building measures. goals of cost recovery. Similarly, sanitation interventions Getting this balance right makes the difference between focused on building simple pit latrines but did not promote leaving states without the capacity to direct or deliver hygiene. As a result, up to a quarter of water points failed basic services versus building a core state capacity that is within the first year, with barely half still fully functional able to orchestrate non-state actors and to progressively after five years due to poor management practices and a lack replace humanitarian-oriented with development-oriented of supply chains for spare-parts (World Bank 2011). service delivery capacity as the transition to development progresses. Where non-state actors continue to dominate In urban areas, where at least half of Liberia’s population service delivery after the humanitarian response period – in is concentrated, the hand-pump driven model of service the case of Liberia around four years after 2003 – the state’s delivery deployed in the first few years of the post-conflict role will remain weak, preventing the opportunity to foster period has simply been inadequate both in technology a virtuous cycle of country-led service delivery that builds and scale. As the 2011 Uhl water quality study showed, the citizens’ confidence in state institutions. hand-pumps, whether shallow or deep, appear unsuitable 4 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | From Emergency Response towards Country-led Development Timeline and key events in Liberia’s transition from emergency to development Emergency Transition Development Response Response Response 2003 - 2007 2008 - 2010 2011 - 2014 • Peace settlement 2003 • NGO WASH • Water Point Mapping 2011 • UNMIL Peacekeeping Consortium formed • Liberia WASH Compact mission set up 2003 • Developmentally- 2011 • First elected oriented INGO • NWSHPC operationalised government 2006 interventions gather 2011 pace • Momentum for restoring • Sector Strategic Plan 2011 basic services builds • INGO capacity building • Capacity Development Plan 2003 - 2007 with government and 2012 local NGOs • Funding for • Sector Investment Plan humanitarian • AfDB project with 2012 interventions drops off LWSC signed 2008 • Joint sector reviews 2013 2007 • First WASH sector and 2014 policies gazetted 2009 2014 Ebola outbreak pushes Liberia back into an emergency response phase These emergency response dynamics started to change after Sanitation Rehabilitation Project (MWSSRP) a US$23m 2007, when UN and INGOs engaged with the first elected investment from the African Development Bank (AfDB). post-war government that assumed power in 2006. As Despite these positive developments, however, the transition Liberia’s Water and Sanitation Policy described it: towards long-term planning and at-scale investments continued to be extremely slow. “From the end of the war to end of the Interim Government, [efforts] concentrated on At LWSC, the MWSSRP investments were hampered by humanitarian issues. With the coming of the low absorption capacity, and two years after its original present Government at the beginning of 2006, closing date in 2010, disbursements stood at only 55 percent the focus has moved to include the rehabilitation (AfDB 2012). The MWSSRP project restored LWSC’s and upgrading of water supply and sanitation production capacity to approximately 15 percent of its pre- infrastructure in order to restore them to the pre- war level (Government of Liberia 2013, 58) and managed war condition and improve them where possible” to rehabilitate about 25 percent of LWSC’s 200-kilometer (Government of Liberia 2009) network (AfDB 2012). Though important, the progress made did not match the need. In 2013, water losses in the existing network were still at 80 percent of production volumes and The return of an elected government with a longer-term it has been estimated that to supply the unserved population focus was matched by increasing coordination among non- of the capital, up to 6,000 kilometers of piped network state actors. The Liberia WASH Consortium, for example, would be necessary (World Bank 2014, 23). Operational brought together the main NGOs active in the sector. In inefficiencies revealed by the 2012 audit meant that to the the urban sector, LWSC benefited from its first significant extent that infrastructure was restored; LWSC was still not in external investment in 2008, the Monrovia Water Supply and a position to provide regular services or to cover its costs. www.wsp.org 5 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | From Emergency Response towards Country-led Development In the rural WASH sub-sector, nascent government had reliable data on rural WASH infrastructure, and no institutions were not able to replace decreasing external systematic planning to define priority interventions and investments in rural areas, reflected in the declining rate of attract investment had been carried out. An advocacy water points constructed after 2007 (World Bank 2011). paper written by the Liberia NGO WASH Consortium Government institutions responsible for rural WASH sector at the time highlighted two critical bottlenecks: the slow remained fragmented with responsibilities split between progress made in operationalizing policies to address the the Ministry of Lands, Mines and Energy (MoLME), the ineffective, fragmented sector structure, and the lack of a Ministry of Health and Social Welfare and the MPW. comprehensive nationwide assessment of WASH facilities, None of these ministries or the NGO WASH Consortium a precondition for improved planning. 6 IV. Generating a Detailed Picture of Need as an Input to National Planning WSP responded to the government’s call for support data and seeing that the epicenter of previous cholera during Africa Water Week in 2010 by embarking on an outbreaks had been in Monrovia, WSP commissioned a ambitious nationwide water point infrastructure mapping specific investigation into the quality of water sources in exercise to create a reliable baseline for the sector. Working the capital city. with the MPW and UNICEF, WSP deployed innovative technology (see Box 1) to survey all protected water points Twenty percent of the water points in this inventory were in the country within a six-month period – over 10,000 in randomly selected for sampling, with selection stratified total – in the rural and urban areas of Liberia. This survey to ensure representation from areas of the city prone to established the first post-war baseline of point-source water cholera outbreaks. Water samples included 204 public water infrastructure in the country, providing a vital evidence points that included protected hand dug wells fitted with base for systematic planning. hand-pumps (71%), unprotected hand dug wells (10%), boreholes with hand-pumps (9%), kiosk sources that were The water point mapping exercise had also mapped supplied by the LWSC distribution network (6%), and taps improved water points in Monrovia, including protected or below ground reservoir vaults also supplied by the LWSC hand-dug wells, drilled wells with hand pumps, kiosks piped distribution network (4%). supplied by tanker trunks, and LWSC standpipes. Monrovia was predominately served by hand-pumps with The results pointed to a high level of fecal contamination in less than five percent of households being covered directly most of Monrovia’s formal and informal water supply (See by LWSC’s piped network. Building on this point-source figure 3 and 4). The investigation revealed that 57 percent Figure 1: “Corridor of Need” containing 75% of Figure 2: Persons without adequate access to Liberians without adequate access to safe water safe water in shades of red (green represents adequate access, grey areas without population) www.wsp.org 7 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Generating a Detailed Picture of Need as an Input to National Planning Figure 3: Map showing the study area and Figure 4: Fecal contamination in Monrovia by locations at which water samples were collected source type in Monrovia of the samples had extremely high levels of E. coli while 22 point atlas that was published based on the data. A number percent had nitrate concentrations that exceeded Liberia’s of development partners, including UNICEF, explicitly own standards. (Kumpel Forthcoming) incorporated the data into project designs to improve the targeting of investment. But the greater opportunity to use Building a detailed picture of sector service delivery this data as the basis for a results-based financing initiative generated clear messages on what needed to be done in the was not taken up by GoL or its development partners. sector, both in the rural and urban context. In the rural context, the water point mapping identified that there was Similarly, the results of the water quality data had greater a clear need to better match available capacity (state and impact on the strategy of non-state actors than it did within non-state) with needs in poorly served areas – especially in the GoL. The data was a key factor in WSP’s decision to the corridors of relatively high population density. In the start working with the LWSC to stabilize its operations urban context, the water quality monitoring pointed to the and to support the LWSC’s bid for capital budget in 2013 need to move away from hand-pumps in urban areas and (see section 7). stabilize LWSC’s operations so that better quality piped water could be delivered in urban areas. A less direct but important result was that a local consultant involved in the water point mapping and water quality However, in both cases the GoL’s institutions responsible surveys transitioned to the MPW and started publishing for WASH struggled to act on this planning data without the data along with other key sector documents, such as further technical assistance. In the case of rural water the water policy, online. Working with a dynamic Assistant supply, the MPW did initiate a system to coordinate and Minister, the two became a focal point in the GoL for the capture new water points being built or rehabilitated by dialogue on WASH, an important step in initiating the non-state actors but failed to enforce it or make the new multi-stakeholder planning and review process described in data available regularly. However, there was some voluntary next section. re-prioritization by non-state actors responding the water 8 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Generating a Detailed Picture of Need as an Input to National Planning Box 1: Pioneering New Data Collection Technologies during the Liberian Waterpoint Infrastructure Survey During the 2010-11 Waterpoint Infrastructure Survey in Liberia, WSP was one of the first agencies worldwide to successfully use smartphone based mobile-to-web data collection applications at national scale. WSP has since advised on one particular application (FLOW), and has used this and similar applications (Fulcrum, DoForms) at scale both in Liberia and subsequently in Sierra Leone, the Republic of Congo and the Democratic Republic of Congo (DRC). These applications have helped provide proof-of-concept for a new best-practice in large-scale survey data collection. Relying on smartphones equipped with touchscreen, camera and GPS, which have become available for less than US$100 in the past five years, this new best practice in field surveying offers at least four advantages over traditional pen and paper methods: time and financial savings, greater ease of use, improved data safety and accuracy, and better management control. Financial savings can be substantial. The primary source of financial savings from mobile-to-web surveying is the reduction in surveying time and the abolishment of manual transcription of data from paper forms to computers. In the Liberia and Sierra Leone projects, it is estimated that eliminating post-survey transcription alone saved up to 5.7 percent of project costs and over 600 workdays, more than offsetting hard- and software costs. Cost-savings are closely related to data safety: loss or spoilage of questionnaires can cause enormous re- surveying costs. Mobile-to-web data collection apps minimize this risk by allowing regular back-up to an online dashboard. This is a major advantage not only over pen and paper, but previous “PDA” devices without network connection. Regular data uploads from the field can also be a critical advantage if rapid availability of data is required in emergencies such as the recent Ebola epidemic. A further benefit of uploading data regularly is that it enables near-real-time tracking of the performance of surveyors by survey management. Data accuracy can also increase by using mobile-to-web surveying, not just due to the elimination of transcription errors, but due to the automatic recording of GPS coordinates, the ability to photograph or scan certain complex items instead of capturing them by typing (or example. bill numbers during the customer enumeration), and because mandatory fields can prevent accidental incomplete questionnaire submissions. As WSP’s work in Liberia has shown, such off-the-shelf apps are viable, indeed, highly advantageous even in the complex environment of fragile states. The many advantages of smartphone-based surveying apps – from significant cost savings, to more accurate data, greater ease of use, better data safety and more accurate, real- time project monitoring – constitute a real step forward in survey administration. www.wsp.org 9 V. Facilitating a multi-stakeholder planning and review process As the data became available, the government of Liberia increased its effort to assume sector leadership. A WASH Box 2: Reflections on the 2011 Liberia Compact in 2011 was a critical turning point. Signed by WASH Compact the President of Liberia, it committed the government to strengthen institutional capacity, reinforce efforts to The development of the Liberia WASH Compact provide equitable services, support sector monitoring was the result of a Joint Mission undertaken with the support of the Government of Liberia and the and improve sector-financing mechanisms. The WASH Sanitation and Water for All initiative. This was the Compact created a new National Water Sanitation and first time sector representatives from nearly all Hygiene Promotion Committee (NWSHPC), a multi- agencies (bi-lateral, multi-lateral and civil society) stakeholder body led by the MPW that provided a locus working in the Liberian WASH sector came together of authority and coordination for rural WASH for the first under the leadership of government (led by the time. The NWSHPC developed a Sector Strategic Plan Ministry of Planning). At the time many sector (SSP) a roadmap in-line with the four commitments in representatives managing investments in Liberia the WASH compact (see box 2) though did not specify the were based in other countries and so had not met infrastructure investments required in the sector. before. To realize the WASH Compact’s commitment to improved The compact was a very simple document that service delivery and to provide a mechanism to lobby for, outlined commitments to the WASH sector arranged review and update both the SSP and the SIP, WSP and around four key thematic areas, for delivery over a UNICEF supported the government ministries and agencies two-year time period, to: involved in the sector to hold the first Liberian Joint Sector • Strengthen Institutional Capacity Reviews (JSR) in 2013 and 2014 (see box 3). While the first • Ensure Equity, Prioritize Service Provision JSR in 2013 was mainly an information sharing exercise, • Develop a Monitoring System inputs from a senior Ugandan water sector official, brought • Improve Sector Financing Mechanisms in as an observer, convinced the government of the need to prepare a Sector Performance Report (SPR) prior to the Based on reviews of the Compact, the most 2014 JSR a proposal then supported by WSP. significant result has been the improved coordination and networking across the WASH In 2014, the Government of Liberia published the sector in Liberia. Regular meetings of the sector country’s first Sector Performance Report on WASH. This coordination committee (the NWSHPC) provided report brought key information for decision-making to the a forum for information sharing and a focus for second WASH Joint Sector Review in May 2014. The SPR sector discussions. The four commitments of the collated information from surveys, studies and reports for 2011 Compact formed the structure of the Sector Strategic Plan (SSP) and the WASH section of the stakeholders to use as an evidence base to debate and agree second Poverty Reduction Strategy (PRS II, 2012- priorities for action. 17). The SSP set out a detailed roadmap of actions for sector actors and the four pillars above have The report was written by a team of Liberian authors provided a focus for the work of the sector as well identified from the key WASH ministries and agencies. as for joint sector reviews (JSRs). The support team helped find and repackage data from the Institute of Statistics and Geo-Information Services and supported a robust process of peer review, discussion and 10 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Facilitating a multi-stakeholder planning and review process Box 3: Joint Sector Reviews: a mechanism to promote sector learning and transition to country-led development Joint Sector Reviews (JSRs) are an established mechanism for prioritization of sector action in many developing countries and across a number of sectors including health, education, agriculture, energy and water. They are generally designed to jointly review (donors, government and civil society) the implementation of sector plans or to assess sector performance and to agree on actions to address constraints in implementation or to improve performance on a half-yearly, annual or biennial basis. JSRs were established in the early 1990s as part of implementing sector-wide approaches (SWAp) a term used in development circles but closely linked to Program-Based Approaches (PBAs), part of an OECD-wide move towards monitoring sector outcomes rather than inputs or outputs. Though the JSR has its origins as a review mechanism within the SWAp, today they are carried out in contexts without a formal SWAp. Though little research has been done on the impact of JSRs in the WASH sector, JSRs have been in use in the health and education sectors for over 20 years and were experience1points valuable for alignment of partners with the sector policy, strategic plan and budget. They are important fora for sharing information, discussing strategies, policy dialogue with a wider audience and with a comprehensive view on the sector as a whole. JSRs have a potential to improve plans, mobilize additional resources and promote mutual accountability. Persistent challenges reported in the health and education sectors include: • The timely availability of good quality data as well as national capacity to perform strategic analysis. • How to ensure that relevant JSR recommendations are integrated in decentralized plans. • How to balance between a drive for more participation and good technical and policy discussions. • How to ensure meaningful participation and further develop mutual accountability in the context of a growing tendency among donors to ask for a direct attribution of results. • How best to integrate meaningful aid and development effectiveness criteria in monitoring performance. • How to get tackle institutional and systemic issues. Sources used include (IHP+ 2013) and (Holvoet 2009) refinement. Over two hundred attendees spent the two The multi-stakeholder planning and review process has days reviewing the Sector Performance Report, listening to improved sector coordination including greater circulation each other’s points of views and deciding on the best way of information among actors and has created a focus for forward for the sector by prioritizing actions. The event set annual reporting on the activities in the Sector Strategic a high precedent for the next Joint Sector Review, which Plan. However, key institutional changes such as setting should be held following the end of the 2015 fiscal year. It up the Water Supply and Sanitation Commission and a will be important to identify a local coordinating team, and National Water Resources and Sanitation Board have been any necessary external support, to take a lead role in again slow, undermining momentum on other equally important preparing an updated SPR. At least six months should be steps such as consolidating sector monitoring and attracting allocated for this task, which should also include more sector investment which were to be done by these institutions inputs from the county level. (Government of Liberia 2012). Furthermore, more support will be required to help the government maximize the SPR www.wsp.org 11 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Facilitating a multi-stakeholder planning and review process and the JSRs and to use them as a means to assess sector development assistance in low-income politically stable performance. Data on the relation between inputs and countries is likely one of main reasons for this. There are outputs in the sector is still far too fragmented to enable a also no internal or external oversight mechanisms to hold quantitative analysis of sector performance. the GoL and partners in the sector accountable to specific commitments. The ministries of finance, planning or the The principle of mutual accountability, in turn, is not well President’s Office, for example, currently play a very limited understood among actors – both by the GoL’s water sector role in the multi-stakeholder planning and review process. institutions and by development partners in the water sector. Similarly, there are no obvious external budget support or The persistence of highly contractual norms of humanitarian peace and state-building goal processes that could be used aid in Liberia instead of the more collaborative norms of as accountability mechanisms. 12 VI. Informing the Multi-stakeholder Dialogue by Translating Sector Data into Detailed Investment Plans WSP supported a sector investment plan (SIP) to deepen Government of Liberia to prioritize the preparation of a stakeholders’ understanding of the specific infrastructure US$ 10 million investment in water supply and sanitation investments required to make progress in the sector. that is derived from the SIP. When effective, this will constitute the first stand-alone investment project in the The SIP was a strategic initiative that translated the high- WASH sector by the World Bank in post-war Liberia and level targets set out in the Government’s “Agenda for is a step in the transition to country-led development as the Transformation” and SSP respectively into discrete WASH project will be executed by LWSC, providing opportunity investment projects, estimating associated costs and time- for building implementation capacity through learning- scales required to improved coverage across urban and rural by-doing. Liberia. Published by the MPW, the SIP defined priority projects for WASH both urban and rural areas, providing WSP has also used the SIP to inform its work with the the government with a credible plan and well-defined needs World Bank’s Global Partnership of Output-Based Aid to approach investors both domestic and donor. to develop a project to connect up to 8,000 additional households in poorer neighborhoods at a cost of The SIP and associated dissemination activities have helped approximately US$5 million. A GPOBA funded scoping mobilize at least US$30 million in additional funding study was successfully completed in late 2014, though commitments for the Liberian WASH sector since 2013 the project will likely be conditional on both the World and has played a vital role in the re-engagement of the World Bank infrastructure investment and a continued improved Bank as an active funder of the Liberian WASH sector. In performance of LWSC (see next section). May 2015, the World Bank initiated a dialogue with the Table 1: Additional Funding Mobilized by the Sector Investment Plan Donor Implementer Project Amount Status World Bank/ LWSC Urban Water and Sanitation US$10m Allocated, project initiation pending IDA Infrastructure World Bank/ LWSC Pro-poor Connection Subsidies US$5m Feasibility study completed, GPOBA project initiation pending DfID UNICEF/MPW Rural WASH Project – Eastern US$6.5m Under implementation Liberia (£4.75m) DfID MPW / Sustainable WASH in Fragile US$12.5m Not disbursed due delays caused Liberia WASH Contexts by Ebola Epidemic Consortium (£4.5m) DGIS UNICEF Accelerating Sanitation and Water US$4m Under implementation for All in Liberia Firestone LWSC Water and Sanitation System in tba Feasibility study ongoing Harbel NOCAL LWSC Water and Sanitation System in tba Feasibility study ongoing Ganta The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Informing the Multi-stakeholder Dialogue by Translating Sector Data into Detailed Investment Plans In addition to the US$10m in IDA and potential GPOBA investments in SIP priority projects in the secondary cities funding, the SIP has also played a key role in the mobilization of Harbel and Ganta, however, the investment amount is of the rural WASH project in Eastern Liberia implemented yet to be determined subject to ongoing feasibility studies. by UNICEF in conjunction with MPW, financed by the United Kingdom’s DfID at cost of US$7 million, as well as While significant, these investment figures still fall the renewal of funding for the Liberia WASH Consortium short of the US$120 million a year needed to reach the by DfID at a volume of US$12.5m (though this could not MDGs.1 Even though the SIP packaged sector data into be disbursed during the funding window due to the Ebola specific investment projects, it initially struggled to attract outbreak). The Dutch Directorate-General for International additional funding from outside the sector and country. Cooperation (DGIS) funded an SIP related project through However, increased aid flows into the country following UNICEF at a volume of US$ 4m. In the aftermath of the the Ebola virus outbreak have been influenced by the SIP, Ebola epidemic, two private actors – the Firestone Company which was used to program the new funds. and the National Oil Company of Liberia committed to 1 The SIP was launched by the Vice President of Liberia, the US Ambassador, the World Bank and the African Development Bank at the 2013 JSR, was disseminated both in hard and electronic versions. 14 VII. Breaking the Capacity Conundrum with Hands-on Technical Assistance WSP remained conscious of the Liberian capacity WSP is also providing TA support to help break the capacity conundrum during its support to national data collection, conundrum within the utility. LWSC put in place new, pro- investment planning and monitoring, active management that has actively pursued improvements in cost-recovery with WSP’s support. The focus on cost recovery While the Government of Liberia had taken important is critically important given the scale of the subsidies from the steps toward assuming sector leadership, new commitments government and to ensure service sustainability. Cost recovery, to investment remained well below the sector requirements in turn, could only be achieved through strengthening the set out in the SIP. One reason for this was a critical lack of utility’s financial and technical capacity, including customer capacity and credibility within the domestic institutions to management, metering and billing systems, network successfully implement investments. maintenance and loss-reduction. Over the past three years, USAID and WSP have supported LWSC to update its With this in mind WSP, and other partners, have provided customer database and locate and enumerate thousands of hands-on TA both to sector ministries and agencies to their own customers, along with thousands of suspected illegal raise their respective credibility in both planning and as connections, triggering a clampdown on unregistered and non- implementing agencies worthy of investment. paying users. WSP analyzed and precipitated an upgrading of LWSC’s billing system, as well as piloting improved metering- In 2013 WASH related line ministries requested TA and customer acquisition processes. for the preparation of their annual budget request in a format that conformed to the Medium Term Budget The progress made is reflected in clearly positive cost- Framework (MTEF).Capital funding from the national recovery trends. At LWSC, revenues from bill collections budget for WASH had been negligible until 2013 .WSP’s increased from just under US$ 2m in fiscal year 2011 TA supported the ministries and agencies to prepare their (FY11), to US$2.5m in FY13 and US$ 4.7m in FY14 budget requests in the MTEF format and primed staff to (Liberia Water and Sewer Corporation 2014). Though a defend requests at the MoF’s budget hearings. The TA led tariff increase at the start of FY14 played a 30 to 50 percent to increased budget allocations to WASH from US$1m role in the improved revenue performance the remaining to US$3.5m. However, actual expenditures were only has been gleaned from internal efficiencies (see separate US$2.5m due to slow disbursement and a lack of absorption field note on cost recovery). capacity, particularly at the MPW. Furthermore, much of this funding was channeled into subsidizing running costs Along with the clear identification of priority projects in the of LWSC (LWSC 2014). Sector Investment Plan, evidence of this progress in LWSC’s operational efficiency has been catalytic in sparking a WSP’s second line of action has been to initiate work with dialogue between the World Bank and the GoL on a potential development partners (initially USAID) to assess and new US$10m IDA investment in LWSC. Continued strengthen MPW’s systems of financial management and improvements at LWSC will be important to demonstrate to procurement with a view to channeling investments for attract other investors (donor and domestic). WASH through country-systems. This is in line with Paris Declaration on Aid Effectiveness, the Accra Agenda for However, this is only the beginning of breaking out of Action, and the Busan Partnership for Effective Development the capacity conundrum and entering a virtuous cycle in Cooperation, which followed the signing of a government- which country institutions lead a process of identifying to-government (G2G) Fixed Amount Reimbursement and implementing capital investments that in turn improve Agreement (FARA) with the MOHSW and MOF. performance and financials, yielding higher revenue and attracting further investments. www.wsp.org 15 VIII. Lessons for Practitioners The international community faced multiple urgent needs NWSHPC (conceived under the WASH Compact and for humanitarian assistance as well as the challenge of operationalized within the MPW) with the information rebuilding the state following Liberia’s war. The complex to initiate systematic planning. WSP’s and USAID’s trade-offs involved in balancing these short- and medium- continued support ensured that this planning was brought term objectives played out very differently across individual together in a detailed SIP, providing a credible blueprint sectors, depending on the nature of the trade-offs made in for priority projects, some of which have since received each. In the case of WASH services development, partner funding commitments. The GoL institutions responsible direct funding of service delivery by non-state actors from for WASH rallied around the SPR and JSR process and are 2003 to 2010 undermined both sector policy dialogue and taking greater leadership of the development agenda, which the formation of robust government institutions able to has improved sector coordination and information sharing. lead and orchestrate service delivery. LWSC, in turn, has with the recent change in management and hands-on TA, refocused on its core function of service The international community missed the opportunity to delivery and relinquished its claim on policy dialogue – shape the institutional structure of the water sector in the though needs to keep an active role in the multi-stakeholder early post-conflict period. The lack of a substantive policy planning and review process. dialogue – particularly in the 2003 to 2007 period – meant that a very fragmented institutional set-up emerged at the A Sector-wide Approach to Planning (SWAp) can be ministerial level with no clear locus of policy authority. Due built from the bottom-up as well as from the top-down. to the fragmented mandate at ministerial level, there was Many, though not all, of the elements of a SWAp have now no regulatory oversight of LWSC, which started playing a emerged in Liberia albeit through a rather piecemeal process conflicting role that cut across policy and implementation. of sector strengthening (see table 2). Without the top-down Changing the established institutional setup – which has impetus of a budget or sector budget support program – as been unsuccessfully attempted since – remains a challenge was the case, for example, in Uganda in the early 2000s – to ongoing institutional capacity building and sector bringing stakeholders around a common country-led plan, investment. An earlier move to development funding for budget and implementation strategy is a slower process and WASH through country systems (for both urban and rural one that is itself fragile. Continued donor support to the WASH) – as was done in the health sector – would have core coordination mechanisms such as the NWSHPC and been a point of leverage to influence institutional reforms the JSR process – including Sector Performance Report –is and build a nucleus of capacity to orchestrate the actions of essential to continued sector learning and has the potential, non-state actors. in the medium term, for improving alignment of non-state actors with government plans and targets. Providing intensive technical assistance can resolve the capacity conundrum but is more difficult the later Addressing aid and development effectiveness issues is starts. Starting in 2011, WSP and other development requires recourse to a higher level of policy discourse. Only partners supported evidence-based national planning, so much that can be fixed from within a sector and there are monitoring and review processes, which played a key a number of key bottlenecks to the sector that will need to role in transitioning the sector from one dominated be addressed by GoL and its development partners in higher by a humanitarian response approach to one based on level fora or by ministries responsible for core functions. longer-term development. Building a detailed picture of sector service delivery generated clear priorities on what Strengthening mutual accountability between the GoL’s needed to be done in the sector. The national water point institutions and development partners in the water sector baseline survey provided the new sector coordination body would benefit from recourse to an overarching policy 16 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Lessons for Practitioners dialogue provided by either a budget support, PSG or similar and the Civil Service Agency responsible for civil service cross-government process to oversee that commitments reform. This decentralized capacity will be essential to provide made are binding and regularly reviewed. the reach required to surpass the rate of implementation achieved in 2007 and to systematically address sustainability Equally, progress on increasing capacity for overseeing of rural water supply and sanitation services. WASH service delivery at the decentralized county level will requires action from the ministries responsible for core Without recourse to these higher level processes the functions: the MoF for the planning and budget process, investment required to reach universal access is unlikely to Ministry of Internal Affairs responsible for decentralization be forthcoming. Table 2:. Typical elements of a SWAp (European Commission 2011) Dimensions Typical element Status in Liberia Policy — coherent within the An umbrella policy for the sector WASH policy gazette in 2009 but contains a number of sector, linked to the legislative, weaknesses and inconsistencies planning and institutional framework and well-aligned to A coherent series of reforms planned The 2011 Sector Strategic Plan sets out institutional national policies and priorities and ongoing reform program Finance and budgets —policy A sector budget that captures all Some donor expenditure captured but not NGO and loyal, bring together most expenditure in the sector some UN agency expenditure significant funding in the sector, including from outside the Linkage with a multi-year MTEF Ministries and agencies responsible for WASH are now public sector, clearly link policy integrated into the MTEF process and results Institutions —functional, serve A clear lead agency for the sector The Water Supply and Sanitation Commission has yet overall policy goals, have to be put in place. In the meantime the MPW leads on the necessary capacity to rural water, LWSC on urban water. Responsibility for implement sanitation falls mainly to MoH but MPW is also involved due to the integrated nature of NGO WASH investments A sector-wide capacity-building A WASH capacity assessment and plan was published strategy/plan in 2013 Coordination — ensures that Sector working groups that involve There is a JSR steering group and JSR planning team sector stakeholders, including national and local levels as well as but sector working groups have not been set up development partners, work different ministries and civil society/ effectively together, avoid private sector duplication and prioritize their activities to reach agreed policy Coordination of donors by The NWSHPC is the sector coordination mechanism goals government with representation from Government, donor and civil society A code of conduct/partnership The WASH Compact was a first step in this direction principles but does not directly address issues of aid and development effectiveness Monitoring and accountability A joint sector review (often held A sector review has been held two years running and —ensures transparent sector annually) planning for a third year has started performance and reporting, fosters good governance in the A system of performance The sector monitoring system is still ad hoc. There sector measurement across the institutional has not been a full updating of the 2011 water point boundaries with clear results-based monitoring exercise and there is no routine monitoring. indicators The HH survey system delivers regular nationally representative surveys. Annual sector performance report The first sector performance report was compiled in 2014 17 IX. Conclusion Attracting at-scale WASH investment to fragile states received head of state backing in the form of the national emerging from crisis requires breaking the dead-lock that WASH Compact in 2011. The WASH Compact created the capacity conundrum poses. The capacity conundrum the National Water Sanitation and Hygiene Promotion holds national institutions in their low-capacity post-war Committee (NWSHPC) within the MPW, which has since state as they are bypassed during the emergency response. functioned as a forum for sector leadership and host to the As emergency responders withdraw, however, enfeebled SIP and JSR processes. state institutions struggle to replace their implementation capacity, and are often incapable of providing the leadership In addition to putting in place the essential elements of a in planning, monitoring and implementation required for a SWAp overcoming the capacity conundrum requires hands-on scale-up of support. technical assistance to prospective government implementing agencies. Though WSP’s TA to WASH-related ministries and Liberia confronted this situation in 2007-2008, five years after agencies in engaging with the national budget process helped the end of the war and shortly after the first elected post-war temporarily raise sector allocations, it also revealed more government assumed power. Emergency interventions in rural starkly the absorption capacity problems in the MPW and areas started to wane after 2007, with fragmented government pointed to the continued need to deal with the nuts and bolts water sector institutions unable to fill the implementation gap of MPW’s implementation capacity. However, WSP’s TA to left behind, or to provide effective planning to attract funds improving cost-recovery at LWSC has led to measureable to the sector. In urban areas, the national utility remained financial and operational improvements reflected in the mired in crisis, operating at a fraction of pre-war capacity positive cost-recovery trends over the past fiscal years. and unable to absorb its first significant investment project (MWSSRP) which had disbursed barely 50 percent two years It is this combination of improving both the sector planning after its expected closure date. cycle and hands-on TA that has helped mobilize at least an additional US$30m in investments to the Liberian WASH Starting in late 2010, WSP’s engagement in Liberia aimed to sector and is transitioning the sector towards systematic, address this capacity conundrum by: country-led development. i) Generating a picture of service delivery in the sector through high quality data. As the post-Ebola recovery phase gains momentum in ii) Playing an active role in the multi-stakeholder planning the second half of 2015, there is again the prospect that and review process. development partners face the capacity conundrum. It is, iii) Structuring the data into a sector investment plan therefore, all the more important to re-double efforts to build (SIP). on, not undermine, the modest progress made with domestic iv) Providing hands-on TA preparing institutions for service delivery institutions during the inter-crisis period. investment. This new wave of support to Liberia should also find ways Working with both government institutions and a range of to better connect policy dialogue within individual sectors development partners, WSP conducted a national water point to higher level dialogue on state-building. This will help to baseline survey, a precondition for systematic planning in rural resolve bottlenecks beyond individual sectors – such as on areas; subsequently funded the development of a credible and decentralizing – that have the potential to enhance the reach and detailed national Sector Investment Plan, and; facilitated two rate of service delivery and will reinforce mutual accountability Joint Sector Reviews (JSRs). These interventions have helped among domestic and donor sector actors, driving up investment operationalize and reinforce a shift towards national sector levels to those needed for universal access. leadership initiated by Liberia’s WASH Consortium, which 18 The Intricacies of Attracting and Sustaining Investment in WASH in Fragile States: Lessons from Liberia | Bibliography Bibliography AfDB. Project Completion Report - Monrovia Water Supply and Sanitation Rehabilitation Project. Project Completion Report, African Development Bank, 2012. African Water Association. 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