Community Managed Project approach

Arto SuominenCTA/COWASH/MoWE/Ramboll

What the Policy and Strategy Says?

• Promote the development of water supply on participation-driven and responsive approaches without compromising social-equity 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.

• 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

More policy and strategy quotes….

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 onCompatibility 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 usualDonorDonor GoE

Supplier or service

provider

Supplier or service

provider

ConstructionConstructionCommunity

Handing over

Poor ownership as the community considers that the constructed system is not theirs

Main principle of CMPDonorDonor GoE

CommunityCommunity

Supplier or service

provider

Supplier or service

provider

ConstructionConstruction

Hi community participation, high ownership and high functionality rate

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 financier3. Procuring all materials, equipment and services4. Managing the construction/rehabilitation5. Managing the project finance (own contribution and external

support) and administration6. Controlling the performance (operation and maintenance,

social/public audits)

Why Community Managed Project approach?• Increased ownership

Improved functionalityIncreased 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?

Materials and equipmentMaterials and equipment

Technical support Technical support

Financial support Financial support

Institutional support Institutional support

Enabling environment

Capacity building supportCapacity building support

M&E

Fund flow options in CMPDonor

BoFEDBoFED

MoFEDMoFED

MFIMFI

Sector BureauSector BureauRegional Government

Regional Government

WoFEDWoFEDCMP project managed by

WASHCO

CMP project managed by

WASHCO

Procurement by WASHCO Community

contribution

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

Thank You