Transcript Community Managed Project approach: an opportunity to

Community Managed Project
approach
Arto Suominen
CTA/COWASH/MoWE/Ramboll
What the Policy and Strategy Says?
• Promote the development of water supply on
participation-driven and responsive
approaches without compromising socialequity norms.
CMP works based on the
community initiative,
community-led principle
More policy and strategy quotes….
• Create and promote a sense of awareness in
communities of the ownership and their
responsibilities for operation and
maintenance of water supply systems
The CMP has proved that the
functionality of the water supply is
high due to the high ownership
More policy and strategy quotes….
• Ensure self-reliance, through the promotion
of local self-financing of programs and
projects, based on the overall socio-economic
development conditions of local communities,
and through appropriate incentive
mechanisms.
• Engage the participation of banks, private
operators, micro financing institutions,
national water fund, and rural credit services,
etc.
More policy and strategy quotes….
• Provide incentives to local stakeholders such
as community groups, manufacturers, and
consulting firms etc. in terms of concessions in
import duties, tax rebates, subsidies, credit
facilities and through other similar economic
instruments to encourage their participation
in the planning, design, implementation and
management of WSS systems
Introduction… CMP approach
• Approach tested for 9 years in two regions in
Ethiopia
• Approach expanded to 5 regions by now
• Over 8,000 water schemes implemented (2,5
million rural users) in 5 regions of Ethiopia
• Functionality rate close to 98%
Joint report of MoWE ad MoFED
January 31, 2010
• Open a serious dialogue with relevant WASH
development partners for the adoption of CDF
as a funding mechanism.
• There is no time to waste, as the sector is falling
behind schedule to reach the UAP targets by
2012
• Amhara and Benishangul-Gumuz regional
governments should be urged to take immediate
steps to scale up the CDF in their regions.
Statement by MoFED Jan 31, 2010 on
Compatibility with Government
Procedures:
• It was established that GoE procedures are
effectively used in CDF.
• Outsourcing fund transfer management to a
financial intermediary (ACSI) was not
perceived to pose a regulatory problem for
scaling up and/or replication in other regions.
Statement by MoFED Jan 31, 2010 on
Quality and Fiduciary Controls:
• The participants found that the Woreda and
community level control mechanisms are not
only sufficient but effective.
• Also, it was found that with minor
modifications to the existing CDF
procurement and financial manuals it can be
mainstreamed with the government
procedures.
Business as usual
Donor
GoE
Poor ownership as the
community considers that the
constructed system is not
theirs
Supplier or
service
provider
Handing over
Community
Construction
Main principle of CMP
Donor
GoE
Hi community
participation, high
ownership and high
functionality rate
Community
Supplier or
service
provider
Construction
What is community management?
A. The community is managing the whole project (not
managed by the district, zone or region)
B. The community management includes
1. Making the application (expressing the demand)
and providing up-front cash contribution
2. Signing of agreement with the supporting
financier
3. Procuring all materials, equipment and services
4. Managing the construction/rehabilitation
5. Managing the project finance (own contribution
and external support) and administration
6. Controlling the performance (operation and
maintenance, social/public audits)
Why Community Managed Project approach?
• Increased ownership
Improved functionality
Increased O&M capacity (supply chain)
• Increased job opportunities at local level
• Increased women empowerment (leadership)
• Efficient use of available district capacity
(redirecting district capacity for facilitation from
implementation)
• Increased implementation efficiency (faster and
cheaper, less wastage of materials)
• Enhancement of local banking sector
What is needed to make community
management possible?
Enabling environment
Materials and equipment
Technical support
Financial support
Institutional support
Capacity building support
M&E
Fund flow options in CMP
Donor
Regional
Government
MoFED
BoFED
Sector Bureau
MFI
WoFED
Procurement
by WASHCO
Community
contribution
CMP project
managed by
WASHCO
Why MFI?
• Flexibility due to the buffering capacity
• O&M savings in MFI (up-front cash contribution or
“community’s matching fund”)
• Personal savings in MFI
• MFI has better outreach than normal banks
• MFI is community focused (it’s main mission)
• Easy to access by rural people
• Credit facility
• For MUS
• For commercial credits (Micro banks)
• Micro insurance development for O&M
• Shared CMP and credit promotion
Main partners in CMP in Ethiopia
Thank
You
Thank You