WASH Coordination ProjectPrioritized List of Potential Reform Interventionsin Bauchi and Kaduna States

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ACTIVITY INFORMATION Program Name: Water, Sanitation and Hygiene Coordination Project

(WCP)Activity Start Date and End Date: November 1, 2016 to October 31, 2018

Name of Prime Implementing Partner: Development Innovations Group (DIG)

Contract/Agreement Number: AID-620-TO-16-00003

Name of Subcontractors/ Subawardees: DAI

Geographic Coverage(cities and or countries): Kaduna and Bauchi States, Nigeria

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CONTENTS

Activity Information...............................................................2Contents................................................................................3ACRONYMS............................................................................41. Executive summary.........................................................52. Background......................................................................63. Key Sector Gaps Identified...............................................74. Prioritized Activities for Immediate Period of Intervention in

Bauchi and Kaduna........................................................115. Prioritized Interventions List with Scope and Timing—Bauchi

......................................................................................136. Prioritized Interventions List with Scope and Timing—Kaduna

......................................................................................177. Mainstreaming Gender into Prioritized Interventions.....248. Conclusion.....................................................................25

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ACRONYMSAfDB African Development BankBSWSB Bauchi State Water and Sewerage BoardBSWSC Bauchi State Water and Sewerage CorporationCLTS Community-Led Total SanitationCoP Community of PracticeCSO Civil Society OrganizationDAI Development Alternatives IncorporatedDFID UK’s Department for International DevelopmentDIG Development Innovations Group FMWR Federal Ministry of Water ResourcesKSWC Kaduna State Water Corporation KSWSRC Kaduna State Water Sector Regulatory CommissionM&E Monitoring and EvaluationNGN Nigerian NairaNUWSRP-3 Third National Urban Water Sector Reform ProjectNRW Non-Revenue WaterNWSA Nigerian Water Supply AssociationPCRC Performance Contract Monitoring and Review CommitteePIP Performance Improvement ProgramPIP/SIP Performance /Successor Improvement ProgramSWA State Water AgencySUWASA Sustainable Water and Sanitation in AfricaUNICEF United Nations Children’s FundUSAID United States Agency for International DevelopmentUSD United State DollarsWASH Water, Sanitation and HygieneWB TTL World Bank Task Team LeaderWCP Water, Sanitation and Hygiene Coordination ProjectWSP Water Service Providers

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1. EXECUTIVE SUMMARYThis report was developed by the Development Innovations Group (DIG) under the WCP, a 24-month project financed by the United States Agency for International Development (USAID).  The purpose of the WCP is to achieve the dual benefits of improved health and well-being for Nigerians through increased and more financially sustainable access to WASH services, and to build the confidence of the public in the government’s ability to deliver basic services. The WCP focuses on the generation of sector data that is critical to the development of further programming in water and sanitation and on immediate service improvements that can be achieved in the short term.

This report is the result of a targeted suite of activities designed to improve governance and accountability in the WASH sector in Bauchi and Kaduna, Nigeria. It describes a list of priority interventions that could bring about substantial improvements in the WASH sector in these two states. It draws from the Development Innovations Group’s (DIG) analysis of a rapid urban water sector stocktaking, conducted from February to May 2017 by the WCP, including a review of sector donor funding matrices and consultations with development partners including the World Bank, African Development Bank (AfDB), UK’s Department for International Development (DFID), United Nations Children's Fund (UNICEF), WaterAid, and the European Union, as well as government departments, ministries and agencies at the Federal Level.

Following discussions with the USAID TOCOR and with officials of the State Water Agencies in Bauchi and Kaduna, the Chief of Party, the Deputy Chief of Party, and the M&E and Institutional Development Specialist developed a list of prioritized WASH interventions. They subsequently shared the list with sector stakeholders and State Water Agencies’ officials, and per the feedback they received, finalized the scope and timing of these interventions. This report focuses on potential interventions and the scope and timing of proposed interventions.

This report presents the WCP findings and proposals for focused interventions for the State Water Agencies (SWAs) in Bauchi and Kaduna, developed through consultations with relevant stakeholders in both states. It presents two key intervention areas of focus from a lengthy list of proposed interventions. To arrive at this shortlist of two focus areas, the WCP shared a draft prioritized list of interventions with stakeholders for their feedback, based on an earlier scoping of the urban WASH sector analysis at the national and the state levels (Bauchi and Kaduna), the Updated Profile of Urban WASH Sector report submitted to USAID in June 2017. The WCP also held various meetings with Bauchi and Kaduna utilities, the Kaduna State Water Sector Regulatory Commission (KSWSRC), both State Commissioners for Water Resources, the AfDB financed reform consultants, 2ML Consulting Ltd. in Kaduna, the World Bank Task Team Leader for Bauchi and feedback from USAID.

The scoping identified seven critical sector activity gap areas including (i) commitment of state Governments to reforms, with various laws which still need

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implementing; (ii) the need for a service delivery strategy for low-income households to enhance targeting; (iii) the need for accountability and good governance structures to improve regulation, participation and citizens’ voice; (iv) weak urban sanitation and hygiene structures and the near absence of a program to manage the huge challenge of fecal sludge in urban areas; (v) the growing concern that small towns are not receiving the attention they merit amongst the many WASH sector challenges; (vi) scaling up learning and knowledge sharing in the sector; and, (viii) weak synergy across government and development partner activities.

Based on the feedback received, the WCP proposed a list of priority activities for the short to medium term. The WCP will focus on two key intervention areas: (i) providing support to the state reform program and (ii) enhancing revenue collection and billing efficiency, for both SWAs. The report presents a detailed list, scope and timing of interventions for each state as feedback to the SWAs in the hope that they have other funding opportunities to address the issues they have identified.

2. BACKGROUNDThe WASH Coordination Project builds on the experience of SUWASA and coordinates with the World Bank, the AfDB, and others as it launches new or deepened investment and technical assistance programs. The WCP is encouraging the implementation of on-going urban water and sanitation utility reforms in Bauchi and Kaduna by providing targeted technical assistance and capacity building support to the states. The WCP Task 3 (Targeted Technical Assistance and Capacity Building) supports this goal of promoting governance improvements by focusing on institutional arrangements and mechanisms to underpin sector transparency and accountability. The purpose of this report is to provide a list prioritized interventions that support reform momentum and advance good governance.

The interventions discussed in this document were developed following the rapid urban WASH sector stocktaking exercise, conducted from February to May 2017. During this time, the WCP team met with representatives of development organizations supporting WASH activities, notably the World Bank, African Development Bank, United Kingdom, European Union and United Nations Children's Fund. Among other things, the team assessed progress on the Third National Urban Water Supply Reform Project as well as WASH interventions in low-income communities and small towns. These discussions took place during the following meetings: A series of tripartite meetings between the State Government, the World Bank

and the WCP to agree on a six-month plan to transition the Bauchi State Water Board into a corporate entity;

A series of meetings between the Kaduna State Government, 2ML Consulting (a reform consultant for Kaduna State) and the WCP;

A meeting between 2ML Consulting and the WCP; and, An internal WCP meeting to review the identified sector gaps and harmonize

recommended activities from the above meetings.

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Promoting governance improvements is particularly relevant in Bauchi and Kaduna States. In these two states, the World Bank and the AfDB are promoting governance reforms, as well as the development and rehabilitation of WASH infrastructure. The World Bank, in collaboration with the Bauchi State Government, is rolling out a USD 65 million investment under the Third National Urban Water Sector Reform Project (NUWSRP-3). The AfDB, in collaboration with the Kaduna State Government and other partners, is investing USD 100 million in the Zaria Water Supply Expansion and Sanitation Project with a component focused on reform of the Kaduna State Water Corporation (KSWC). Both of these projects have dedicated allocations for supporting the State Water Agencies to advance ongoing governance reforms. For instance, with AfDB support, a performance improvement program (PIP) has been established at the KSWC with a target based performance contract issued to all Area Managers.

WASH development partners in Nigeria have been working to improve WASH sector accountability, but progress has been limited. Sector reform efforts are hindered by the magnitude of the challenge, unsteady political will, and a lack of incentive for change, among other issues. In response, development partners and donors, including USAID, are coordinating approaches through the WASH Working Group of the Country Assistance Framework Partners and the Water Supply and Sanitation Donor Coordination Group to reinforce messages, achieve scale, and increase the adoption of performance expectations, performance incentives, and performance-based financing.

USAID/Nigeria is a key member of the WASH community and provides critical input, notably through its past SUWASA activities. Since 2012, USAID has been coordinating closely with the World Bank to maximize the impact of WASH interventions. With the WCP, USAID is establishing similar relationships with AfDB to similarly coordinate impact.

To identify and harness the strategic entry points for USAID/Nigeria within the landscape of current donor activity in Bauchi and Kaduna States as well as relevant federal entities, the WCP Team began consulting WASH sector stakeholders soon after the project launch. These consultations provided insight into the donor terrain in Nigeria, including activities across the federal, state, and utility levels, that are relevant to USAID’s planned work in Bauchi and Kaduna. Consultation also helped to quickly identify immediate areas of potential collaboration in Bauchi and Kaduna States.

To develop the prioritized list of interventions, the findings of the rapid stocktaking of the urban WASH sector informed discussions between key WASH sector stakeholders and the WCP Team.

The rapid urban water and sanitation sector stocktaking and consultation conducted by the WCP resulted in an Updated Profile of WASH Sector Activities in Bauchi and Kaduna States, submitted to USAID in June 2017. That document helped to identify WASH sector gaps and possible areas of collaboration that could contribute to USAID’s goal of prioritizing governance and capacity support interventions for WASH in both states. That document has informed the development of this Prioritized List of Potential Reform Interventions in Bauchi and Kaduna States, presented herein.

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These proposed interventions are designed to complement other development partners’ investments, and are presented for consideration and concurrence by USAID.

3. KEY SECTOR GAPS IDENTIFIEDA summary of the key sector gaps identified through the rapid urban water and sanitation sector stocktaking and consultation conducted by the WCP is provided below. These gap areas also represent potential areas of collaboration. The WCP has elaborated a list of prioritized governance and capacity support interventions in Bauchi and Kaduna States in these areas. The summarized findings are presented under seven critical sector activity gap areas:

1. Commitment of State Governments to reforms: The leadership of Bauchi and Kaduna States remains committed to reforms in the WASH sector. In Bauchi, the World Bank-funded Third Urban Water Sector Reform Project has had a promising start. Furthermore, with support from the WCP, the State Governor demonstrated a commitment to continue the reform process, initiated by the previous administration, by putting in place a six-month program to transition the water utility into a corporate entity that is financially viable. Stakeholder interviews revealed that this step is rebuilding confidence in the development community. Laws and policies that were written recently to guide the reform process need to materialize, or the government will lose credibility.

The State Governor in Kaduna is also committed to reforms in the WASH sector. This commitment is exemplified in the continued participation in and support of the Zaria Water Supply Expansion and Sanitation Project in Kaduna State, which includes a focus on reforming the Kaduna State Water Corporation. The Zaria Water Supply Expansion and Sanitation Project provides a model for the complex issue of counterpart funding and the need to build a funding structure that incorporates different institutions’ interests and development objectives. It demonstrates continuity of governance as it enables completion of a project initiated almost ten years ago. The Kaduna reform is held up by the absence of a substantive senior management team. A Managing Director needs to be appointed and trained to lead the Kaduna State Water Corporation (KSWC).

2. Service delivery strategy for low-income households: The expected WASH Poverty Diagnostic Analysis report and the UNICEF WASH Bottleneck Analysis will provide tools for better understanding poverty and improving low-income services in the WASH sector. These documents will be particularly helpful to the Kaduna State Water Corporation, where 50,000 new meters are planned, 10,000 of which are earmarked for low-income households. KSWC would benefit from developing a low-income household service strategy. The Bauchi State Water and Sewerage Corporation is currently reviewing its customer enumeration data. Poor data and knowledge of its customer base

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and the poor categorization of service options does not augur well for targeted service delivery and revenue collection.

3. Promoting accountability and good governance through regulation,

participation and citizens’ voice: States struggle with defining and establishing a WASH regulatory system. The Performance Monitoring and Information System, proposed under NUWSRP-3, provides an opportunity for the government to monitor the performance of water boards and test a framework for a National Water Sector Regulatory System. Customer engagement and feedback is generally weak. The roles of CSOs and community groups have been minimal during the design and implementation of WASH sector reforms. A formal regulatory system should provide a platform for social and economic accountability and responsiveness. Kaduna State has only recently (December 2016) established a regulatory commission, the Kaduna State Water Sector Regulatory Commission, in response to the need for a regulatory system.

4. Strengthening urban sanitation and hygiene structures: A key gap in the progress of NUWSRP-3 in Bauchi has been the near absence of clear actions on sanitation and hygiene while, in Kaduna, the sanitation component of the Zaria Water Supply Expansion and Sanitation Project focuses on solid waste management and public toilet development.

Responsibility for sanitation is a challenge, as there is no commonly agreed institutional home for the sanitation sector – it falls into a space between the Water Corporation, State Environmental Protection Agency, and individuals. Just as pressing is the absence of a national water and sanitation policy. However, the Bauchi State Water and Sewerage Corporation has the manadate for fecal sludge management in urban areas of Bauchi State, under the new Urban Water Law 2014.

The agreed strategy for achieving universal sanitation coverage in rural areas in Nigeria is the Community-Led Total Sanitation (CLTS) approach. Some stakeholders also recommended a CLTS approach, coupled with sanitation marketing, be adopted in urban areas to improve the demand for sanitation services. As the demand for latrines increases, however, the lack of systems for the evacuation, transportation, treatment and disposal or reuse of fecal sludge is compounded.

An important challenge that remains unresolved, however, is that of fecal sludge management as the demand for sanitation services has increased in areas where CLTS has been successfully implemented, particularly in small towns and peri-urban areas. There is a near absence of a clearly articulated plan or strategy for managing the fecal sludge accumulating from the increased use of latrines and toilets.

5. Addressing the WASH challenges of small towns: There is a growing concern that small towns are not receiving the attention they merit amongst the many WASH sector challenges. Some of the development partners recommended USAID support the establishment of small-town agencies at

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the state level to promote better management and coordination of sanitation investments in small towns and growing urban centers. The costs and benefits associated with this recommendation would need to be looked at very carefully; that said, we are generally sceptical about establishing new structures.

6. Scaling up learning: Under the Small Towns Water Supply and Sanitation Program, demonstration projects helped to refine the concepts of community participation, ownership, and management in the financing of sustainable water supply and sanitation services. The demonstration projects also provided learning tools and verification that small-town water projects can be viable and sustainable.

7. Promoting synergy across government and development partners activities: The project investment plan for the Third Urban Water Sector Reform Project has identified clear water production, transmission, distribution, and extension works. The plan also addresses reform targets and institutional strengthening and management issues. There are concerns, however, that some of the World Bank-funded activities in the plan may replicate activities already implemented by the USAID-funded SUWASA initiative.

Current status of State Water Agencies – Bauchi and Kaduna

In addition to the above, the findings from a study the WCP Team conducted on the Update Profile of Urban WASH Sector1, establish the existing conditions and operational baseline on the current status of the Kaduna and Bauchi utilities as a basis to justify the proposed interventions. This study identified the following existing gaps and challenges of KWSC:

Poor corporate governance and management systems, including poor performance improvement plans, business plans, customer service charters and annual performance plans;

Staff attitude and resistance to organizational changes with internal delegate management program held back by this issue;

Old and dilapidated bill production mechines23 leading low cost recovery, with the KSWC largely relying on subsidy from Government and development partner, as collected revenue covers only about 73% of operating costs;

Absence of a well-defined strategy to address the challenge of NRW and maintain corporate asset;

The need for an up to date customer enumeration data base for some of the strategic business units of the utility such as parts of Zaria, Kafanchan, Kwoi, Zonkwa, Ikara and Birnin Gwari;

Absence of an integrated management information systems resulting in duplication and inconsistencies of operational and financial information;

1 The Update Profile of Urban WASH Sector was submitted to USAID in June 2017, with a revised version submitted in August 2017. Please see this report for more details on the conditions and ongoing efforst by the SWAs to address these challenges. 2 Currently, the utility spend two weeks in printing bills with a very inefficient system. A modern system will reduce the bill printing time to three days and ensure improved revenue collection.3

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Absence of any concerted effort to address sanitation; Absence of strategy to mainstream gender in its operations, engage current

and prospective custimers and focus on serving low income settlements, despite the existence of a National Low-Income Household Strategy (LIHSS); and,

Aging and dilapidated infrastructure including water disinfection equipment and water treatment plants and asset management plans.

In Bauchi, the situation is not much different. The BSWSC, with the support of USAID funded SUWASA, set out in May 2011, to create an enabling environment for service delivery and the establishment of full operational and financial autonomy, accountability and efficiency. At that time, the key bottlenecks identified as inhibiting the utility’s operations included absence of a clear policy and legislative frameworks, institutional arrangements, autonomy of operation, governance practices and accountability frameworks4. With the support of SUWASA several improvements were recorded through the development of relevant policy instruments, institutional frameworks, and the provision of technical and institutional support. The improvements catalyzed the $65 million World Bank investment in BSWSC. In spite of the gains, the BSWSC has been held back by the following:

Inability to implement existing laws, instruments and mandates from the reform process initiated under SUWASA and ongoing World Bank support third National Urban Water Sector Reform Program (NUWSRP-3);

Incomplete execution and implementation of key components of the organizational development activities and chamge management plans to address major staffing issues such as skill-set for technical staff, career progression, head count plan and strategy for re-alignment of staffing;

Weak cost recovery due to low tariffs, poor billing and metering; Absence of a well-defined NRW strategy to address the challenges of water

loos and unaccounted for water; Inaccurate designed customer enumeration exercise leading to poor

customer data base and billing and collection challenges; Weak cost recovery due to low tariffs, poor billing, no metering and high non-

revenue water ratio; Absence of any concerted effort to address sanitation; Absence of strategy to mainstream gender in its operations, engage current

and prospective custimers and focus on serving low income settlements, despite the existence of a National Low-Income Household Strategy (LIHSS); and,

Absence of asset management plans for the aging and dilapidated infrastructure including for water disinfection, water treatment and power control panels and capacitor power banks.

4 SUWASA (October 2014) Water Sector Reforms in Bauchi State, End of Project Report,

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4. PRIORITIZED ACTIVITIES FOR IMMEDIATE PERIOD OF INTERVENTION IN BAUCHI AND KADUNA

To meet the requirements in the project description which mandates the WCP to work with relevant stakeholders to finalize the list, scope and timing of the proposed interventions, the WCP shared a draft prioritized list of interventions with stakeholders for their feedback. The proposed interventions benefited from the findings of the focused analysis on the SWAs of Bauchi and Kaduna by the WCP in the Updated Profile of Urban WASH Sector report submitted to USAID in June 2017. Various meetings were held with the State Water Agencies in Bauchi and Kaduna and the Kaduna State Water Sector Regulatory Commission. Meetings were also held with both the Bauchi and the Kaduna State Commissioners for Water Resources and the AfDB financed reform consultants, 2ML Consulting Ltd. In Bauchi, a series of tripartite meetings between the Bauchi State Government, the World Bank and the WCP also helped to identifiy areas of focus for the Bauchi State Water and Sewerage Corporation. After consultation with USAID, further discussions were held with both SWAs to finetune the below list of targeted activities that will be implemented to support ongoing work to improve governance and accountability in the WASH sector of Bauchi and Kaduna States. It was developed from the analysis of the findings of the rapid urban water sector stocktaking, conducted in February – May 2017 by the WCP, and the various consultations outlined above.

The feedback received suggests the below list of priority activities for the immediate period of intervention, through October 2018:

Bauchi:

1. Support for the Transition Plan to implement the new Urban Water Sector Law 2014 and the Executive Memo issued by the State in February 2017, with the following key outputs:

o Reconstitution and training of the Board of Directors of the BSWSC and the rebranding of the BSWSB to BSWSC;

o Composition of the PCRC (Performance Contract Monitoring and Review Committee) as a unit within the Ministry of Water Resources;

o Implementation of the sanitation mandate under the new Urban Water Sector Law 2014;

o Signing of Performance Contracts between the State Government and BSWSC; and,

o Development of a BSWSC Strategic Action Plan (Program of Action for performance improvement).

2. Improving revenue collection and bill efficiency:o Provide capacity building and training on Non-Revenue Water

reduction.o Provide technical support for installation of water meters (household).

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o Provide technical and capacity building support in the areas of billing and collection.

3. Stakeholder engagement and communications:o Provide capacity building support to improve customer service and

satisfaction.o Facilitate the review of water tariff and improve public engagement.

Kaduna:

1. Support for the reform plan to implement the new Kaduna Urban Water Sector Law 2016 and Kaduna State Water Services Regulatory Commission Law 2016, with the following key outputs:

a. Utility Board and Management—train KSWC and KSWSRC Boards of Directors, new Managing Director for KSWC, and develop Board Charter and Bylaws governing the activities of the boards;

b. Sanitation—facilitate Agenda Setting Workshops for urban WASH sector agencies to strengthen synergy for sanitation delivery and agree an urban sanitation service delivery system;

c. Regulation—establish regulatory frameworks5, instruments and synergy among relevant agencies for water supply (and sanitation services) providers, including KSWC; and,

d. Utility improvement—monitor and assess Performance / Successor Improvement Program (PIP/SIP) developed with support of 2ML to secure quick wins in production efficiency, financial sustainability and customer engagement.

2. Improving revenue collection and bill efficiency:a. Reducing Non-Revenue Water (NRW)

o Facilitating a NRW capacity building program for technical staff to include training on leak detection and pipe burst repairs.

o Procurement and installation of Flow and Bulk meters (5 flow and 3 bulk meters).

b. Increasing revenue collectiono Capacity development and training for commercial / billing team on

billing and collection processes.o Upgrade billing system by procurement of two Genicom 6320

printers (approximately NGN13 million, or USD 41,000).

3. Stakeholder engagement and communications:a. Customer orientation and stakeholder’s engagement to communicate

economic value of water, reform processes and benefits, water policy, and law amongst others.

5 In discussions with KSWSRC, seven initial regulations, standards and guidelines are planned to be developed, including: (i) Regulation on Borehole Drilling, (ii) Regulation on Package Water Production, (iii) Standard for Borehole Drilling Business, (iv) Standard for Water Supply Metering and Billing, (v) Guidelines for Control of Non-Revenue Water, (vi) Guidelines for Issuance of Permits and Licenses, and (vi) Guidelines for Establishment and Operation of Water Consumer Associations.

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The WCP will focus on two interventions: 1) Providing support to the state reform program and 2) Enhancing revenue collection and billing efficiency for both SWAs. In the following table, government agencies were selected as collaborating agencies. In sections where donors and other partners are suggested, they have programs in Kaduna and or Bauchi States. The budget is difficult to determine at this time, however, a more detailed workplan and budget will be prepared under the Year 2 WCP workplan.

The following list, scope and timing of interventions for each state, presented in Section 5, will be presented to the SWAs as feedback in the hope that they have other funding opportunities to address the issues identified.

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5. PRIORITIZED INTERVENTIONS LIST WITH SCOPE AND TIMING—BAUCHI

The table on the following pages present the summary list, scope and timing of prioritized interventions that would support reform momentum and advance good governance in Bauchi State.

Key areas of sector gap

Project objective & timescale

Prioritized Interventions in Bauchi

Specific Scope of Intervention, as applicable

Proposed Timeline up to October 20186

Urban WASH Utility Reform

Maintain State Governments’ commitment to reforms

Support the State Commissioner and World Bank Task Team Leader (WB TTL) to implement the Six-Month Transition Plan for the Bauchi State Water and Sewerage Corporation (BSWSC). Specifically: Constitute the

Governing Board for BSWSC, train Board Members and develop a Board Charter and by-laws governing the activities of the Board;

Develop and implement an institutional systems strengthening plan to improve BSWSC operational efficiency; and

Develop terms of reference for the provision of consultancy services (to be financed by WB) to establish a performance management system

July 2017 – June 2018

Six Month Transition Plan for the Bauchi State Water and Sewerage Corporation

6 The WCP Team has proposed a timeline for interventions we believe is optimal based on meetings we have had to date with all stakeholders. It will be important for all stakeholders, including the entities being supported, to remain committed to the process in order to achieve the timeline proposed herein.

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for BSWSC.

Create enabling environment to increase access to piped water networks; improve reliability of water production and supply; and strengthen the financial viability of the BSWSC as a commercial and sustainable water supply utility

Upon consultation with and with input from the State Commissioner, BSWSC Managing Director, and WB TTL, provide technical assistance to the Managing Director of BSWSC to: Develop a five-year

strategic business plan with proposal for organizational restructuring;

Develop and implement a two-year capacity building program to improve staff skills and competencies to plan for Non-Revenue Water (NRW), customer enumeration and billing, unit budgeting, and management of corporate assets;

Develop BSWSC asset management strategy to support its operations;

Develop and implement a Performance Improvement Plan (PIP) in coordination with the World Bank to secure quick wins in production efficiency, financial sustainability, and customer engagement; and,

Draft a finance manual that complies with generally accepted international accounting standards.

July 2017 – Oct 2022

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Service delivery strategy for low-income households

Upon consultation with and with input from the State Commissioner for Water Resources and the World Bank TTL, provide technical assistance to BSWSC to: Develop and

implement a low-income household service strategy;

Establish a low-income customers service unit; and,

Upon consultation with and based on input from WaterAid, provide technical assistance to BSWSC to pilot a low-income water supply service delivery system.

July 2017 – Oct 2020

Regulation of Urban WASH Sector

Regulatory unit requires and promotes accountability and good governance of the service provider

Upon consultation with and based on input from the WB TTL, provide technical assistance to the Commissioner for Water Resources to: Establish a Regulatory

/ Performance Contract Review Committee unit within the Ministry of Water Resources to provide immediate services on WCP economic, environmental and quality regulations to water and sanitation services providers including BSWSC; and,

Develop and manage the performance contract system to oversee the Board of Governors as well as the Managing Director and various heads of

Establishing the Regulatory unit as a small secretariat in the first instance, build its capacity and then scale up

July 2017 – Oct 2018

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departments in BSWSC.

Regulatory regime promotes customer / community participation and voice

Upon consultation with and based on input from the WB TTL, provide technical assistance to the BSWSC Managing Director, to: Develop a customer

charter; Develop a customer

engagement strategy to clarify and deepen understanding of customer preferences and utility response; and,

Provide technical assistance to CSOs identified under the WCP CSO mapping exercise to engage and participate in urban reform.

July 2017 – Oct 2018

Strengthening Urban Sanitation Structures

Prioritize urban sanitation and hygiene

Upon consultation with and based on input from WB TTL, and WaterAid, provide technical assistance to: Local CSOs and

Nigerian Water Supply Association (NWSA) to promote urban sanitation through advocacy, campaigns, and events at critical times such as global and national sanitation days; and,

CSOs identified under the WCP CSO mapping exercise to engage and participate in urban sanitation.

July 2017 – Oct 2018

BSWSC establishes and operates a sanitation service

Upon consultation with and based on input from DFID and WaterAid, provide technical assistance to BSWSC to: Establish a sanitation

Bauchi City as a case study for implementing the provisions

July 2017 – June 2020

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delivery system in Bauchi

service delivery system by setting up a fecal sludge management (FSM) pilot.

for urban sanitation as a mandate for the BSWSC

WASH Challenges of Small Towns

State acknowledges and articulates a strategy for addressing the emerging challenges of small towns

Provide technical assistance to WSC Managing Director to: Articulate a strategy

for addressing the emerging challenges of small towns and expanding services to all towns under BSWSC’s mandate; and,

Promote better management and coordination of sanitation investments in small towns and growing urban centers.

July 2017 – Oct 2020

Scale up Learning

Strengthen a culture of learning and knowledge exchange among urban WASH professionals

Upon consultation with and based on input from the National Water Supply Association and National Water Resources Institute, provide technical assistance to the BSWSC to: Document and share

learning from the WCP and BSWSC on the CoP Platform; and,

Organize learning events, peer-to-peer support, learning exchanges and tours as may be relevant.

July 2017 – Oct 2018

Donor Coordination and Harmonization with State Priorities

Maximize impact and synergy across government and development partner activities

Actively provide technical support and participate in the Tripartite Six-Month Transition Plan Team between Bauchi Government, the World Bank and WCP.

Upon consultation with

July 2017 – Oct 2018

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and based on input from WaterAid, provide technical assistance to WASH sector system strengthening with a focus on policies and strategies to: Improve efficiency and

sustainability of donor’s investments in Bauchi State WASH sector; and

Provide technical assistance to Bauchi Town to improve sanitation service delivery.

6. PRIORITIZED INTERVENTIONS LIST WITH SCOPE AND TIMING—KADUNA

The table on the following pages present the summary list, scope and timing of prioritized interventions that would support reform momentum and advance good governance in Kaduna State.

Key areas of sector gap

Project objective

Prioritized Interventions in Kaduna

Specific Scope of Intervention, as applicable

Proposed Timeline upto October 20187

Commitment of State Governments to Reforms

Maintain the State Governments’ commitment to reforms

Upon consultation with and based on input from the State Commissioner for Water Resources, the AfDB Reform Consultants, 2ML Consulting, and DFID’s Dreampipe Challenge, provide technical assistance to KSWC to:

Support the organization of a sensitization and training workshop for the Management and Board Members of

July 2017 – January 2018

7 The WCP Team has proposed a timeline for interventions we believe is optimal based on meetings we have had to date with all stakeholders. It will be important for all stakeholders, including the entities being supported, to remain committed to the process in order to achieve the timeline proposed herein.

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Train KSWC and KSWSRC Boards of Directors and develop Board Charter and bylaws governing the activities of the Boards;

Recruit and train the new Managing Director for KSWC;

Facilitate Agenda Setting Workshops for Urban WASH sector agencies

Develop an Institutional Systems Strengthening program to provide support in areas that will improve KSWC and KSWSRC operational efficiencies; and,

Monitor and assess Performance Improvement Plan (PIP) of KSWC developed with support from 2ML to secure quick wins in production efficiency, financial sustainability, and customer engagement.

the KSWC and KSWSRC on the provisions of the Kaduna State Water Supply and Sanitation Law, 2016.

Support the organization of an Agenda Setting Workshop for the Managements of KSWSRC and KSWC on the Water Sector Reform Programs as related to Urban WASH.

July 2017 – January 2018

Create enabling environment to increase access to piped water networks; improve

Upon consultation with and based on input from the State Commissioner for Water Resources, the AfDB Reform Consultants, 2ML Consulting, and

July 2017 – Oct 2022

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reliability of water production and supply; and strengthen the financial viability of the KSWC as a commercial and sustainable water supply utility

DFID’s Dreampipe Challenge, provide technical assistance to KSWC to:

Develop a five-year strategic business plan with proposal for organizational restructuring;

Develop and implement a two-year capacity building program for KSWC and KSWSRC to improve staff technical skills and competencies to plan for Non-Revenue Water (NRW), customer enumeration and billing, enforcement of regulations, standards and guidelines, alternative dispute resolutions, unit budgeting, and corporate asset management;

Develop KSWC Asset Management Strategy to support its operations; and,

Draft a financial manual that complies with generally accepted international accounting standards.

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Service Delivery Strategy for Low-Income Households

Upon consultation with and based on input from the State Commissioner for Water Resources and the AfDB Reform Consultants, 2ML Consulting, provide technical assistance to KSWC to: Develop and

implement a low-income household service strategy; and,

Establish a low-income household customers service unit, and pilot a low-income water supply service delivery system.

July 2017 – July 2020

Regulation of Urban WASH Sector

Regulatory commission requires and promotes accountability and good governance of the service provider

Provide technical assistance to the Executive Chairman of the Kaduna State Regulatory Commission to: Establish

regulatory frameworks, instruments and synergies with relevant agencies for water supply (and sanitation services) providers, including KSWC.

Provide technical assistance towards the development of 7 start-off Regulations, Standards and Guidelines:

a)Regulation on Borehole Drilling,

Agenda Setting Workshop for Development of Regulations

Development of Draft Regulations, Standards and Guidelines

Stakeholder Workshops on Draft Regulations Standards and Guidelines

Production of Regulations, Standards,

July 2017 – Oct 2018

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b)Regulation on Package Water Production,

c) Standard for Borehole Drilling Business,

d)Standard for Water Supply Metering and Billing,

e)Guidelines for Control of Non-Revenue Water,

f) Guidelines for Issuance of Permits and Licenses, and

g)Guidelines for Establishment and Operation of Water Consumer Associations

and Guidelines

Establishment and Operation of Water Consumer Associations

Regulatory regime promotes customer / community participation and voice

Upon consulation with and based on input from the State Commissioner for Water Resources and the AfDB Reform Consultants, 2ML Consulting, provide technical assistance to KSWC and KSWSRC to: Develop a

customer charter; Develop a

customer engagement strategy to clarify and deepen understanding of customer preferences and utility response; and,

Provide technical assistance to CSOs identified under the WCP CSO mapping exercise to engage and

July 2017 – Oct 2018

24

participate in urban reform.

Strengthening Urban Sanitation Structures

Prioritize urban sanitation and hygiene

Upon consulation with and based on input from WB TTL, and WaterAid, provide technical assistance to : Local CSOs and

NWSA to promote urban sanitation through advocacy, campaigns, and events at critical times such as global and national sanitation days; and,

CSOs identified under the WCP CSO mapping exercise to engage and participate in urban sanitation.

July 2017 – Oct 2020

KSWC establishes and operates a sanitation service delivery system in Kaduna

Upon consulation with and based on input from the State Commissioner for Water Resources and the AfDB Reform Consultants, 2ML Consulting, provide technical assistance to KSWC to: Establish a

sanitation department, appoint a Director of Sanitation Services, and develop a scope of work on urban sanitation; and,

Upon consulation with and based on input from DFID / UNICEF, provide technical assistance to

July 2017 – Oct 2018

25

KSWC to pilot an urban sanitation service delivery system.

WASH Challenges of Small Towns

State acknowledges and articulates a strategy for addressing the emerging challenges of small towns

Support KSWC Managing Director to: Articulate a

strategy for addressing the emerging challenges of small towns and expanding services to all towns under KSWC’s mandate; and,

Promote better management and coordination of sanitation investments in small towns and growing urban centers.

July 2017 – Oct 2020

Scale up Learning

Strengthen a culture of learning and knowledge exchange among urban WASH professionals

Upon consulation with and based on input from the National Water Supply Association and National Water Resources Institute, provide technical assistance to the KSWC to: Document and

share learning from the WCP and KSWC on the CoP Platform; and,

Organize learning events, peer-to-peer support, learning exchanges and tours as may be relevant.

July 2017 – Oct 2018

Donor Coordination

Maximize impact and

Coordinate with AfDB in implementing the

July 2017 –

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and Harmonization with State Priorities

synergy across government and development partner activities

commercialization and institutional support component of the AfDB loan to KSWC.

Oct 2018

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7. MAINSTREAMING GENDER INTO PRIORITIZED INTERVENTIONS

To ensure that gender is mainstreamed in the proposed prioritized interventions, the WCP team proposes to replicate the SUWASA/Kenya model, adapting it to the Nigerian context. SUWASA/Kenya has transformed Kenya’s highly male-dominated water and sanitation utility sector by assisting Water Service Providers (WSPs) to integrate gender equality mainstreaming in service delivery and institutional operations. SUWASA conducted gender analyses and gender-sensitive market surveys; supported community outreach and education; developed a specialized WSP tool; provided targeted training; and helped WSPs formulate institutional gender policies.For Water Service Providers (WSPs) to understand their existing and potential customers, SUWASA conducted gender analyses and gender-sensitive market surveys. With the findings disaggregated by sex, WSPs identified viable, market-responsive projects that considered how preference for service type, demand for water, and willingness/ability to pay varied for men and women. SUWASA also produced a Gender Equality Mainstreaming Tool for WSPs that can be used under WCP. It recommends steps to address barriers to gender equality mainstreaming in the project cycle, community participation, service provision and operations. In addition, SUWASA trained WSP staff to mainstream gender equality in service development, utility operations, and institutional policies and practice. This assistance culminated in the development of gender equality action plans that applied the newly acquired knowledge and skills. SUWASA’s gender equality mainstreaming efforts yielded impressive results in areas such as labor opportunities, flexible work hours, equal compensation for equal work, and the removal of a land title requirement for service connection. SUWASA/Kenya program partners (the Embu and Meru Water and Sanitation Companies and Water Services Trust Fund) adopted gender policies for the first time and integrated gender indicators in their monitoring tools. Connecting Nigerians with the SUWASA/Kenya beneficiaries can bring about the type of South-South learning (as opposed to North-South) that is considered most effective. With women carrying the disproportionate burden of collecting water for domestic use, SUWASA in Kenya helped WSPs create community outreach and education campaigns that addressed cultural stereotypes regarding the roles of women and men in household water management. As a result of SUWASA’S efforts, WSPs are realizing that adopting gender equality mainstreaming practices not only allows them to meet their mandate of providing equitable service delivery, it makes business sense. Lessons learned from this program can be brought to bear in Nigeria.

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8. CONCLUSIONIdentifying a prioritized list of potential interventions to support the reform momentum and advance good governance in Bauchi and Kaduna States' water sector followed a very well thought out process. If properly implemented, the scheduled activities will greatly assist the on-going reform efforts in the two states. However, considering WCP’s limited implementation period (ending October 2018) and the need to ensure all stakeholders remain engaged and committed to the proposed timeline, it may be difficult to implement all the activities to achieve the desired outcomes within the WCP program. Some of the activities will require the development of instruments and their utilization for a period of time to discern their efficacy. For this reason, a shortlist of priority activities for the immediate period of intervention was developed in consultation with the BSWSC, KSWSRC, KSWC and FMWR and two of the areas identified were selected for the WCP to put focus.

The interventions and the full list, scope and timimg of interventions for each state presented in Section 5, will be presented to the state as feedback from this process to enable the SWAs to continually keep in view in the hope that they can secure other funding opportunites. Working in collaboration with USAID and other stakeholders (Kaduna, Bauchi, FMWR, AfDB and World Bank), the WCP will continue to build on existing reform programs at the federal and state levels to maximize opportunities for success.

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