Grant Assistance Report

Project Number: 45520-001 July 2012

Proposed Grant Assistance

Independent State of Samoa: Community Sanitation

Project (Financed by the Japan Fund for Poverty Reduction)

CURRENCY EQUIVALENTS (as of 25 June 2012)

Currency Unit - tala (ST)

ST1.00 = $0.43 $1.00 = ST2.33

ABBREVIATIONS

ADB – Asian Development Bank ANM – Aiga ma Nuu Manuia CPS – country partnership strategy JFPR – Japan Fund for Poverty Reduction MNRE – Ministry of Natural Resources and Environment MOF – Ministry of Finance MOH – Ministry of Health MOU – memorandum of understanding MWCSD – Ministry of Women, Community, and Social Development MWTI – Ministry of Works, Transport, and Infrastructure NCB – national competitive bidding PUMA – Planning and Urban Management Agency SSDP – Samoa Sanitation and Drainage Project STC – Sanitation Technical Subsector Committee SWA – Samoa Water Authority

NOTE

In this report, "$" refers to US

Vice-President S. Groff, Operations 2 Director General X. Yao, Pacific Department (PARD) Director I. Matsumoto, Urban, Social Development, and Public Management

Division (PAUS), PARD Team leader A. Roberts, Young Professional, PARD Team members K. Emzita, Senior Counsel, Office of the General Counsel

S. Lee, Principal Social Development Specialist, PARD T. Miyao, Procurement Specialist, Central Operations Services Office

J. Williams, Senior Environment Specialist, PARD N. Sapkota, Safeguards Specialist, PARD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

JAPAN FUND FOR POVERTY REDUCTION (JFPR) JFPR Grant Proposal

I. Basic Data

Name of Proposed Activity Community Sanitation Project

Country Independent State of Samoa

Grant Amount Requested $2,000,000

Project Duration 4 years

Regional Grant Yes / No

Grant Type Project / Capacity building

II. Grant Development Objective(s) and Expected Key Performance Indicators

Grant Development Objectives: The project’s overall goal is to give vulnerable households sustainable access to better sanitation in targeted regions of Samoa. The vast majority of Samoan households rely for their sanitation services on non-functioning, leaking septic tanks. This sanitation infrastructure pollutes groundwater and urban streams, damages such aquatic ecosystems as mangroves and coastal areas, and adversely impacts the residents’ health. Samoa has the highest reported incidence of typhoid of all the Asian Development Bank’s Pacific developing member countries. Typhoid periodically reaches epidemic levels and is especially prevalent in poor households in low-lying settlements in urban Apia, the capital city. The rates of diarrheal diseases are also high. The project will help improve public and environmental health in the participating regions. It will establish and pilot an innovative delivery method and institutional arrangements for providing subsidized sanitation infrastructure to low-income households. The project will establish a foundation to enable the government to establish and expand a national sanitation scheme that will help households replace and maintain their on-site sanitation infrastructure.

1 The

scheme’s sustainability will be ensured by increasing the government’s capacity to enforce existing health and environmental regulations and to monitor sanitation assets and water quality.

Expected Key Performance Indicators (maximum 5 indicators): 1. 20% of households participating in sanitation scheme by 2016 are low-income households. 2. 150 applications are submitted to the project sanitation scheme in each year of operation. 3. 400 septic tanks are built and certified by 2016. 4. Of installed septic tanks that require routine maintenance, 80% have undergone one maintenance

cycle by 2016. 5. Of households that fail septic tank inspections, 80% receive a fine by 2016.

III. Grant Categories of Expenditure, Amounts, and Percentage of Expenditures

Category Amount of Grant Allocated in

$

Percentage of Expenditures

1. Civil works 1,524,000 76.2

2. Equipment and supplies 0 0

3. Training, workshops, seminars, public campaigns

169,594 8.5

4. Consulting services 108,000 5.4

5. Grant management 72,726 3.6

6. Other inputs 25,750 1.3

7. Contingency 99,930 5.0

TOTAL 2,000,000 100.0

Incremental cost 0

1 On-site sanitation refers to septic tanks, various types of latrines, and other similar sanitation technology.

2

JAPAN FUND FOR POVERTY REDUCTION

JFPR Grant Proposal Background Information

A. Other Data

Date of Submission of Application

19 August 2011

Project Officer (Name, Position) Andrea Roberts, Young Professional

Project Officer’s Division, E-mail,

Phone

PAUS, aroberts@adb.org, x6529

Other Staff Who Will Need

Access to Edit and/or Review the

Report (Enter the names of all

staff, e.g., team members, who will

need access to this application.)

Ikuko Matsumoto, Director, PAUS

Sunhwa Lee, Principal Social Development Specialist, PAUS

Jean Williams, Senior Environment Specialist, PATE

Nogendra Sapkota, Safeguards Specialist, PATE

Emerlinda Macalintal, Operations Assistant, PAUS

Sector Water supply and other municipal infrastructure and services

Subsector(s) Water supply and sanitation

Theme Environmental sustainability, Inclusive social development

Subtheme(s) Urban environmental improvement

Targeting Classification TI-H

Name of Associated ADB

Financed Operation(s)

Samoa Sanitation and Drainage Project

(L2026/L2440/G0114)

Executing Agency Ministry of Finance

Grant Implementing Agency(ies)

(Names, Exact Address, Contact

Persons, E-mail, Phone, Fax)

Name: Planning and Urban Management Agency (PUMA)

Address: Development Bank of Samoa Building, Savalalo, Apia

Contact Person: Tagaloa Jude Kohlhase, Assistant Chief Executive

Officer, PUMA

E-mail: jude.kohlhase@mnre.gov.ws

Phone: +685 23800

Fax: +685 23176

B. Details of the Proposed Grant

1. Description of the Components, Monitorable Deliverables and/or Outcomes, and Implementation Timetable

Component A

Component Name Pilot Sanitation Scheme

Cost ($) 1,766,656

Component Description The project will pilot an innovative delivery method and institutional arrangements within existing Samoan government agencies to provide subsidized infrastructure to low-income and vulnerable households that will replace their on-site sanitation systems. Vulnerable households include landless individuals, unemployed (especially unskilled youth who are mainly found in new settlements close to urban Apia), single income households, and families with many children.

2

The pilot scheme will focus on villages in urban Apia, northwest region of the main island of Upolu, and northeast region of Upolu.

2 Ministry of Finance of Samoa. 2008. Strategy for the Development of Samoa 2008–2012. Apia.

3

3

Ap

pe

ndix

2

The selection of villages for the pilot scheme was based on several criteria. Collectively, the selected villages demonstrate the following characteristics: high incidence of diarrhea and typhoid, a mix of urban and rural areas, high population density, low-lying, near waterways or environmentally-sensitive areas, a mix of topography, a mix of coverage by the Samoa Water Authority (SWA) and Independent Water Schemes Association, and available data from the national sanitation survey. This will allow diversity in pilot household types and ensure that the sanitation scheme is tested in a variety of scenarios. To effectively test the sanitation scheme for implementation nationwide, the pilot will cover 470 households, with an average of 7 members each. This elevates the project’s total cost. Based on the project criteria, the villages selected for the pilot are Leone, Vaisigano, Maluafou, Aai o Niue, Tufuiopa, and Tauese in urban Apia; Toamua, Puipaa, and Levi in the northwest region of Upolu; and Eva, Salelesi, Fusi, and Falefa in the northeast region of Upolu. This selection will be validated by the government once implementation commences. The pilot will involve about two-thirds of the approximately 760 households in the 13 villages. This participation rate will be large enough to improve overall public and environmental health in the communities. All village residents will be invited to apply to take part in the scheme and will be selected based on their income levels and the current state of their sanitation infrastructure (see Appendix 7 for the selection matrix). The households selected will receive either a 75% or a 100% subsidy towards the cost of new septic tanks, based on their household income.

3 In-kind and/or cash contributions will be

required and will be determined by their assigned subsidy level.

The septic tanks for urban Apia will be procured and constructed

first. Those for the northwest region of Upolu will be built next,

followed by the septic tanks for the project villages in the northeast

region of Upolu. The tanks for the northwest and northeast regions

of Upolu will be procured in separate batches but concurrently. Two

types of agreements will be signed: (i) contracts between the

implementing agency and contractors, and (ii) memorandums of

understanding (MOUs) between the implementing agency and

participating households. In-kind and/or cash contributions will be

collected from households prior to construction when the MOUs are

signed. Construction will be supervised by project consultants and

certified by staff of the Ministry of Works, Transport, and

Infrastructure (MWTI).

Monitorable Deliverables/Outputs 1. 125 sanitation scheme applications approved per year on

average over the life of the project

2. 400 septic tanks built and certified by 2016

Implementation of Major Activities:

Number of months for grant

activities

34 months

3 The project will focus on household sanitation because the Ministry of Health (MOH) has already implemented a

schools sanitation project and most commercial and institutional buildings in urban Apia are connected to a new sewerage network built with Asian Development Bank (ADB) assistance through the Samoa Sanitation and Drainage Project (L2026/L2440/G0114).

4

Component B

Component Name Public Awareness

Cost ($) 94,248

Component Description The project will make households more aware of the importance of properly functioning septic tanks, how they are built and maintained, and the health implications of poor maintenance. Public awareness campaigns will target all of the approximately 15,000 households in the three pilot regions, whether they are project participants or not. These campaigns will be coordinated with ongoing sanitation and hygiene awareness campaigns and build on them, making use of materials that have been accepted by the community. The results of the awareness efforts will be monitored through existing Ministry of Women, Community, and Social Development (MWCSD) monthly household surveys. The project’s public awareness activities will (i) advertise the pilot scheme to encourage households from

selected villages to participate; (ii) inform participating households about pilot scheme

procedures; (iii) inform participating households in layman’s terms about how

septic tanks are constructed, operated, and maintained; (iv) inform the general public about the adverse effects on human

health and waterways of leaking septic tanks (or the absence of appropriate on-site sanitation infrastructure altogether), the consequences of not regularly emptying septic tanks (usually every 3–5 years), and the connection to hygiene practices;

(v) inform participating households about maintenance monitoring and enforcement procedures to encourage them to carry out regular maintenance of their sanitation infrastructure and avoid penalties; and

(vi) inform participating households about potential financing sources to help cover their cash contributions, if applicable.

Monitorable Deliverables/Outputs 1. 150 applications submitted to the sanitation scheme in each

year of operation

2. 12 monthly MWCSD meetings attended by community members

3. 9 television broadcasts, radio shows, and newspaper articles

produced

4. Leaflets distributed to 80% of households in three pilot regions

Implementation of Major Activities:

Number of months for grant

activities

9 months, ongoing monitoring for the duration of the project

Component C

Component Name Financial and Technical Sustainability

Cost ($) 139,096

Component Description The pilot will establish the structures and procedures needed and train the necessary skilled personnel to implement the sanitation scheme across the rest of Samoa after the pilot is complete. Training by individual consultants in construction supervision, septic tank inspections, asset management, and water quality testing will give sanitation officials the ability to manage the scheme after the pilot ends. The project will also build capacity by guiding the government’s leadership in the day-to-day management of the pilot, by on-the-job coaching by the two full-time individual consultants,

5

5

Ap

pe

ndix

2

and by training implementing agency staff in ADB disbursement procedures and financial management. PUMA and the MWTI will carry out random inspections of septic tanks in both project and nonproject households in participating villages and throughout the pilot regions to monitor sanitation assets and enforce acts and regulations. PUMA will aim to carry out 1,000 inspections per year during 2014–2016. The imposition of fines when septic tanks fail these inspections will incentivize households to replace or upgrade their on-site sanitation system themselves (if they can afford to) and to maintain properly constructed septic tanks through minor repairs and by emptying them regularly and disposing of the contents properly.

4

The project will provide participating households with financial support for one maintenance cycle so that they will learn routine maintenance procedures and will have the know-how required to maintain their new septic tanks after the project ends.

The project will help the government to evaluate the pilot’s

implementation and the scheme’s delivery method and prepare a

preliminary design and budget for the national expansion of the

sanitation scheme. Financial sustainability is ensured through the

scheme’s inclusion in a costed sector-wide plan that will receive

government and development partner support.

Monitorable Deliverables/Outputs 1. Of installed septic tanks that require routine maintenance, 80%

have undergone one maintenance cycle by 2016.

2. 1,000 inspections carried out each year during 2014–2016.

3. Of households that fail septic tank inspections, 80% receive

fines by 2016.

Implementation of Major Activities:

Number of months for grant

activities

40 months

2. Financing Plan for Proposed Grant to Be Supported by JFPR

Funding Source Amount ($)

JFPR 2,000,000

Government 135,850

Other Sources (Please identify) 0

Total 2,135,850

3. Background

1. Poor hygiene practices and septage pooling have major adverse health impacts in populated areas, including a high incidence of typhoid and diarrheal diseases. Leaking septic tanks also contaminate reefs and marine life. The leaks from improperly designed and

4 Under the Planning and Urban Management Act (2004, amended in 2005), fines may be imposed for carrying out

development without consent or other breaches of the act. Under the Water Resources Management Act (2008), fines may be imposed for discharging pollutants into the water resources of Samoa or other contraventions of the act. The Ministry of Health Act (2006) allows for the imposition of fines for breaches of public health standards relating to any aspect of water quality. The 2006 Wastewater and Sewerage Regulations allow fines to be imposed for discharging hazardous substances into public sewers or waterways. The 1992 National Building Code lays out septic tank construction standards to which households must adhere.

6

constructed and poorly maintained tanks occur for several reasons: minimal enforcement of septic tank design standards, poor construction methods, and lack of public awareness of proper septic tank construction and maintenance requirements. The vast majority of households in Samoa rely on non-functioning septic tanks that are beyond repair. These septic tanks present no visible problems to households and, because they leak, do not seem to need to be emptied. Households are not familiar with maintenance needs and procedures or used to shouldering maintenance costs. Because poor sanitation practices have been the norm for so long, it is difficult to incentivize households to improve their sanitation systems, even though the septic tank of almost every household is not functioning and needs to be replaced or rehabilitated. 2. The government’s poverty reduction strategy (Strategy for the Development of Samoa 2008–2012)5 and ADB’s 2008–2012 country partnership strategy (CPS) for Samoa6 prioritize the sanitation sector to improve environmental and public health conditions. Both strategies recognize the importance of improving sanitation infrastructure and increasing access to sanitation services to reduce poverty and achieving sanitation-related Millennium Development Goals. Both strategies aim to improve the physical infrastructure for sanitation and the ability of the government and the private sector to deliver sanitation services. 3. To guide sanitation investments and improve wastewater systems and management in Samoa, the government approved the 2009 National Sanitation Policy and prepared the 2011 National Sanitation Masterplan. The plan established new septic tank construction standards for inclusion in the National Building Code; recommended appropriate improved sanitation systems; and proposed improvements to the processes for granting development consent, granting building permits, supervising construction, licensing service operators, and collecting sanitation data. To prepare the master plan, a national sanitation survey was undertaken to gauge the state of sanitation in urban and rural households, the willingness and ability of households to pay for sanitation services, and household awareness of sanitation issues. The survey found that households would be willing and able to pay up to 10% of the approximately $4,000 construction cost of a septic tank. Consultations revealed that this contribution would need to be in-kind for many households, particularly rural ones. The project’s subsidy percentages reflect this level of willingness and ability to pay and the project will allow in-kind contributions from all participating households. Maintenance costs of about $100 every 3 to 5 years were found to be affordable for most households. A scheme to improve on-site sanitation was identified as a priority in the 2009 National Sanitation Policy and in the rolling three-year medium-term expenditure framework for Samoa’s water sector.

4. Innovation 4. Many previous projects have failed to overcome the affordability, capacity, cultural, and knowledge barriers to improving sanitation in Samoa or to provide households with incentives to replace their leaking septic tanks or to help the government conduct inspections, enforce relevant acts and regulations, impose fines, and better manage sanitation assets. An innovative approach is needed and the project takes lessons learned from these previous projects into account. These include the need to (i) work within existing government institutions, (ii) establish a direct household–government relationship, (iii) undertake community consultations during design and implementation, (iv) employ construction supervisors, and (v) follow existing development approval procedures and enforce existing acts and regulations. The project will include an innovative combination of government-led delivery methods, financial incentives,

5 Ministry of Finance of Samoa. 2008. Strategy for the Development of Samoa 2008-2012. Apia.

6 ADB. 2008. Country Partnership Strategy: Samoa, 2008-2012. Manila.

7

7

Ap

pe

ndix

2

maintenance support, increased capacity to enforce relevant acts and regulations, and knowledge sharing through public awareness activities. These measures will ensure that septic tanks meet Samoan standards; new sanitation infrastructure is maintained over time; vulnerable, low-income households are the primary beneficiaries of the sanitation scheme; and the government is able to test the delivery method of the scheme and its suitability for national expansion. 5. Project design. The project is innovative because the delivery method is integrated within existing government structures and procedures. The government’s Sanitation Technical Subsector Committee (STC) will provide project implementation advice, as it does for other sanitation sector projects. 7 Staff from PUMA, the implementing agency, will lead the implementation of the project as part of their regular responsibilities. The project will help STC members fulfill their sanitation sector mandates. It will provide support to the MWTI to supervise septic tank construction, to PUMA to carry out septic tank inspections, and to the MOH to monitor water quality. Staff from these agencies will not only be trained in these skills but will also carry out their tasks during the pilot and thereby gain valuable hands-on experience in what will remain their responsibilities after the project ends. The government will evaluate the implementation of the pilot as part of its plan to expand the pilot sanitation scheme nationally. 6. Financial incentives. To encourage households to replace their septic tanks, the sanitation scheme will subsidize either 75% or 100% of the cost of installing new septic tanks for the participating households, depending on their ability to contribute and the household characteristics. The implementing agency will pay a contractor directly to procure and build the septic tanks to ensure subsidies are used for the intended purpose. The scheme will leverage household cash and in-kind contributions where possible, while supporting low-income and vulnerable households. Households that can afford a cash contribution will be asked to pay upon signing their MOUs. The requirement that households first apply to participate in the scheme is an initial step toward signaling demand for and awareness of improved sanitation services. Qualification for subsidies will be verified through the application process. Application questions will address household income, sources of income, the number of household members, and the number of elderly and young residents. Village chiefs and/or village mayors will endorse household applications as a check on the information they contain. 7. Maintenance support. Another innovation will be financial support for the first maintenance cycle of the new septic tanks. Participating households will be facing septic tank maintenance costs for the first time and the subsidy support for the first emptying of their tanks will make them aware of what needs to be done to operate and maintain the tanks properly and introduce them to the expense involved. A combination of vouchers and household contributions will be tested through the project. Funds from the JFPR grant will be earmarked for the septic tank maintenance subcomponent at the outset of the project. Households in the 100% subsidy band will receive a voucher to cover 75% of the cost of one maintenance cycle, which is approximately $100. Households in the 75% subsidy band will receive a voucher worth 50% of the cost of one maintenance cycle. The vouchers will be converted to cash on submission to the implementing agency of evidence that the service has been rendered (e.g., a receipt from a private operator). Voucher validity will end with the physical completion of the project. 8. Enforcement. Compliance fines are allowed under the Water Resources Management Act, the Planning and Urban Management Act, the Ministry of Health Act, and the Wastewater and Sewerage Regulations but they are not widely imposed due to capacity constraints within the responsible agencies. The project will assist the MWTI in supervising septic tank

7 Members of the STC include MOF, PUMA, MOH, SWA, MWTI, MWCSD, and Ministry of Natural Resources and

Environment (MNRE). The STC reports to the Joint Water Sector Steering Committee established by the Cabinet.

8

construction and PUMA in carrying out inspections of household septic tanks in the pilot regions and help the two agencies issue the notices and compliance mandates specified in the relevant acts and regulations. Fines may be imposed for those convicted of breaching the relevant acts and regulations. Standard appeals processes for Samoan courts would apply. These measures will ensure all households in pilot regions undertake proper construction, operation, and maintenance of their septic tanks, and may incentivize some households to replace their sanitation infrastructure themselves. These measures will give the staff of PUMA, the MWTI, and other government entities experience in inspecting septic tanks and enforcing relevant acts and regulations, which will continue after the end of the pilot phase. 9. Knowledge sharing. Knowledge sharing will take place through two key mechanisms: (i) public awareness activities and (ii) the project evaluation report. Public awareness activities will reinforce the message to participating households and the general public about the importance of proper septic tank construction and maintenance. The project evaluation report will be distributed to all stakeholders so that lessons learned can inform the design of the national expansion of the scheme, as well as future subsidy programs for household-level infrastructure.

5. Sustainability 10. Sustainability will be ensured through four mechanisms: (i) capacity development, (ii) public awareness, (iii) maintenance support, and (iv) design of the national expansion. Capacity development activities will improve the managerial, financial, and technical capacity of government staff to supervise septic tank construction, monitor septic tank performance, manage assets, and enforce the building and environmental codes and relevant acts and regulations. Public awareness activities will reinforce the message to participating households and the general public about the importance of proper septic tank construction and maintenance and will make them aware of the legal provisions regarding septic tanks, water quality, and health, and the associated fines of the relevant acts and regulations. Maintenance support provided by the project will introduce participating households to the regular septic tank maintenance cycle and proper maintenance activities and requirements. Project consultants and an external evaluator will help the implementing agency to design the national expansion of the community sanitation scheme, drawing on lessons learned from the pilot scheme, and to source funding for the expansion so that more households can rehabilitate their on-site sanitation infrastructure and the health benefits from improved sanitation will be felt more widely.

6. Participatory Approach

11. A participatory approach was used to design the project and strong stakeholder involvement will continue throughout project implementation. 12. Design phase. Three formal meetings were organized with the STC to discuss technological and financing options, consultations, and existing infrastructure services. All members of the STC were consulted individually regarding each agency’s current functions and the role they expected to play in the pilot scheme. Information from such meetings was incorporated in the final design of the institutional framework. 13. A project presentation was made to about 80 traditional leaders from villages around the country. A meeting was held with village chiefs from Togafuafua, Tuloto, and Tangamanono and with the secretary of the Laulii village council. The specifics of the pilot scheme were explained to community stakeholders, who expressed the need for such a scheme in their villages to

9

9

Ap

pe

ndix

2

improve family health and the environment. They strongly supported the in-kind contribution provision and recommended that project team consult with households during implementation. 14. Implementation phase. Government and community stakeholders will lead the implementation of the project. The STC will advise the implementing agency on project implementation and coordinate the inputs required of the participating government agencies (see Appendix 5 for further details on implementation arrangements). 15. The public awareness campaign at the start of the project will disseminate information about the project, eligibility criteria, and subsidy levels in pilot villages and thus generate demand (see component B). Based on this information, each household will decide whether it wants to apply to participate in the scheme. Each completed application will be signed by the local village chief, village mayor, and/or the government liaison officer to verify its information. Village women’s committees will be instrumental in encouraging households to participate and in monitoring septic tank maintenance through their regular surveys.

Primary Beneficiaries and Other Affected Groups and Relevant Description

Other Key Stakeholders and Brief Description

Approximately 470 households participating in the pilot will receive new on-site sanitation infrastructure. Approximately 15,000 households will be reached through the awareness campaigns and inspections. Community councils and women’s committees will benefit from increased capacity in carrying out public awareness campaigns, community liaison, and monitoring. PUMA will benefit from training and on-the-job mentoring as the implementing agency. Members of the STC will benefit from increased capacity and the testing of the sanitation scheme.

Nongovernment organizations active in targeted areas will benefit from increased capacity in carrying out public awareness campaigns and monitoring.

7. Coordination

16. Representatives of the Japan International Cooperation Agency (JICA) in Samoa and the Embassy of Japan in New Zealand were consulted on the concept paper and JFPR grant proposal. JICA and the embassy support the proposed project. They pointed out that solid waste management and water are development focus areas in Samoa for the Government of Japan. Therefore, the proposed project is fully in line with and complements Japan’s priorities in Samoa. Both JICA and embassy officials stressed the importance of maintaining the new septic tanks and sustaining the sanitation scheme financially after the end of the project. 17. An advisor to the MOF, funded through the European Union’s budget support program, attended the consultation meetings with the STC. His valuable input regarding the suitable technology and scope for the sanitation scheme was taken into account in the final design. An advisor to the SWA, also funded through the European Union’s budget support program, was consulted regarding the design and implementation of the previous ADB-funded project that supplied and installed 101 septic tanks in urban Apia.

10

18. The World Bank and the Australian Agency for International Development are not active in the sanitation sector in Samoa.

8. Detailed Cost Table

19. Please refer to Appendix 3 for the detailed cost estimates and Appendix 4 for the funds flow arrangement. C. Link to ADB Strategy and ADB-Financed Operations

1. Link to ADB Strategy 20. ADB’s 2008–2012 CPS for Samoa recognizes that many Samoan households lack access to public services, including high-quality sanitation services. Accordingly, the CPS aims to improve the physical infrastructure for sanitation as well as the ability of the government and the private sector to deliver sanitation services. By establishing and piloting the sanitation scheme, the project will (i) bring high-quality sanitation infrastructure to poor households, (ii) strengthen the government’s ability to deliver sanitation services and enforce sanitation standards, and (iii) involve the private sector in constructing and maintaining new sanitation infrastructure. The project will contribute to ADB’s goal of improving public services and reducing poverty in Samoa.

Document Date of Last Discussion

Objective(s)

Pacific Approach 2010–2014

Approved October 2009

Operational priority: urban development, water, sanitation

Samoa Country Partnership Strategy 2008–2012

Approved September 2008

Outcomes: improved infrastructure and improved access to public services and enhanced quality of public services delivery

Samoa Country Operations Business Plan 2012–2014

Approved July 2011

Outcomes: Improved sanitation, drainage, and wastewater disposal

2. Link to Specific ADB-Financed Operation

Project Name Samoa Sanitation and Drainage Project (SSDP)

Project Number L2026/L2440/G0114

Date of Board Approval 27 November 2003

Loan Amount ($ million) 13 million

3. State the above-mentioned project’s development objective

21. The goal of the SSDP was to improve the environment and public health in Apia by helping upgrade urban infrastructure for drainage and sanitation as well as by building urban management capacity. Project activities concluded in June 2011. As part of this project, 101 precast tanks were installed in four villages of urban Apia: Taufusi, Tufuiopa, Togafuafua, and Tauese. The SSDP highlighted the need for further on-site sanitation support in Samoa. 22. Of the 13 villages that will participate in the proposed project, only two (Tufuiopa and Tauese) were involved in the SSDP. The proposed project will cover approximately 66% of households in these 13 villages. This concentrated intervention to upgrade sanitation infrastructure will result in stronger environmental and public health impacts within the pilot

11

11

Ap

pe

ndix

2

villages, as well as in villages downstream of the pilot villages, than if the pilot households were less concentrated. The proposed project builds on work undertaken by SSDP but adds value to the sanitation sector by establishing the delivery method for the sanitation scheme. By setting up and testing the mechanisms and institutional arrangements for providing financial support to households to rehabilitate or replace their sanitation infrastructure, the proposed project provides the foundation for the government to expand the sanitation scheme nationally, ensuring that the health benefits will be felt more widely.

4. List the project’s main components

No. Component Name Brief Description

1. Drainage and floodways 1.1 Rehabilitate floodway and storm drains

1.2 Construct supporting facility for drainage works and equipment for drainage system improvements

1.3 Provide supplementary assistance to drainage work management

1.4 Train staff of the SWA, the MWTI, and PUMA in drainage management

1.5 Raise community awareness of and support for improved drainage services and their delivery systems

2. Sanitation 2.1 Build reticulated central business area pressure sewer system

2.2 Build Sogi wastewater treatment plan

2.3 Construct septage collection and treatment system for urban Apia

2.4 Build on-site sanitation infrastructure for low-lying households (101 households in Apia)

2.5 Train staff of the SWA, the MWTI, and PUMA in wastewater and sanitation management

2.6 Raise community awareness and support of improved sanitation and wastewater services and their delivery systems

5. Rationale for Grant Funding Versus ADB Lending

23. JFPR grant funding was sought because this project will pilot a new approach to providing sanitation services at the household level. This will help the government test an innovative way to give poor and vulnerable households better sanitation that has the potential to be expanded for use nationally. Grant funding is required to test this innovative method so it can be scaled up to provide sanitation infrastructure and improved sanitation across Samoa. D. Implementation of the Proposed Grant

1. Provide the Name of the Implementing Agency

Planning and Urban Management Agency (PUMA)

24. The MOF will be the executing agency and PUMA will be the implementing agency. PUMA has assigned its assistant chief executive officer and its principal urban management officer to the project. 25. PUMA chairs the STC, which will oversee the project and advise the implementing agency on implementation, consultant recruitment, procurement, and household applications. Members of the STC include the MOF, PUMA, the MNRE, the MOH, the SWA, the MWTI, and

12

the MWCSD. The STC reports to the Joint Water Sector Steering Committee established by the Cabinet. Members of the STC have experience in implementing donor-funded sanitation projects. These have included the ADB-funded SSDP in the case of SWA and MWTI, the World Bank-funded Infrastructure Asset Management Project in the case of PUMA, and the schools sanitation project in the case of the MOH. Please refer to Appendix 5 for more information on implementation arrangements. 26. Nine individual consultants will be recruited by the implementing agency to assist in project implementation. Three individual consultants (national)—a sanitation scheme coordinator, a sanitation engineer, and a sanitation scheme administrator—will be recruited to form the project coordination team. The consultants will report to the implementing agency and will assist with procurement, construction supervision, project management, capacity development, and public awareness activities. Four individual consultants will also be recruited to design and deliver capacity development training and public awareness campaigns. A project evaluation consultant and the external auditor will also be recruited. Recruitment of consultants will adhere to ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). Two ADB staff consultants will be engaged to train implementing agency staff on ADB’s procurement and disbursement procedures and financial management. 27. The implementing agency will procure individual household septic tanks in three batches through national competitive bidding. All procurement under the project will be in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time). Until national standard bidding documents approved by ADB are available in Samoa, ADB’s standard bidding documents will be used by the project. Please refer to Appendix 8 for more information on procurement.

2. Risks Affecting Grant Implementation

Type of Risk Brief Description Measure to Mitigate the Risk

Governance A lack of government capacity to manage and provide financing for the sanitation scheme over the long term could threaten its sustainability.

Additional human resources required to implement the project have been identified. The skills required for effective project implementation will be provided by project consultants. The project will train government agencies in the inspection of physical works and monitoring of new infrastructure. A combination of incentives and enforcement measures for septic tank maintenance has been identified to render the investments made by the project sustainable in the long term. Assistance in the design of the national expansion of the scheme and in sourcing funds for the expansion will help widen the reach of the sanitation scheme.

Household / Community Commitment

Poor households may not be willing and able to contribute financially to improved sanitation to access the sanitation scheme and to maintain their sanitation systems over time.

Appropriate subsidy levels based on the socioeconomic condition of households have been designed to maximize participation of poor households. Community awareness activities will

13

13

Ap

pe

ndix

2

be implemented to disseminate information on the importance of septic tank maintenance, how to undertake maintenance, and the health and legal implications of not maintaining sanitation infrastructure. The project will be implemented in close coordination with community leaders and the MWCSD to ensure that it reaches the intended targets.

Project Targeting Proper targeting of the sanitation scheme may be difficult to achieve, resulting in subsidy leakage to non-targeted households.

The target regions for the pilot scheme have been selected based on known poor public health and environmental conditions. The design of the sanitation scheme (including two subsidy bands, cash and in-kind contributions, and maintenance support) will ensure that low-income households receive project benefits.

Infrastructure Development Capacity

A lack of government capacity to enforce environmental standards, drainage regulations, and code breaches may jeopardize the project’s success.

Enforcement mechanisms (e.g., construction supervision and certification, ongoing monitoring, enforcement support for relevant acts and regulations, and community awareness) have been incorporated in project design to help the government enforce applicable acts, regulations, and codes.

3. Incremental ADB Costs

Component Incremental Bank Cost

Amount requested $0

Justification Not applicable

Type of work to be rendered by ADB Not applicable

14

4. Monitoring and Evaluation

Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E

20% of households participating in sanitation scheme by 2016 are low-income

Samoa water sector annual reports

Water Sector Coordination Unit of the Ministry of Natural Resources and Environment produces an annual review of progress made in implementing the government’s Water for Life plan.

125 sanitation scheme

applications approved per year

on average over the life of the

project

Samoa water sector annual reports, sanitation scheme coordinator’s progress report

Water Sector Coordination Unit of the Ministry of Natural Resources and Environment produces an annual review of progress made in implementing the government’s Water for Life plan. Sanitation scheme coordinator will report twice annually to the STC using data from household applications.

400 septic tanks built and certified by 2016

Sanitation scheme coordinator’s progress report

Sanitation scheme coordinator will report twice annually to the STC using data from household applications, contractors reports, and MWTI certifications issued.

150 applications submitted to sanitation scheme in each year of operation

Sanitation scheme coordinator’s progress report

Sanitation scheme coordinator will report twice annually to the STC using data from household applications.

Of installed septic tanks that

require routine maintenance,

80% have undergone one

maintenance cycle by 2016

Central database operated by the implementing agency, sanitation scheme coordinator’s progress report

Sanitation scheme coordinator will report twice annually to the STC using data from septic tank maintenance sub-component and redeemed vouchers.

1,000 inspections carried out each year during 2014–2016

Central database operated by the implementing agency, sanitation scheme coordinator’s progress report

Sanitation scheme coordinator will report twice annually to the STC using data from the asset management database established to monitor septic tanks and from septic tank maintenance subcomponent and redeemed vouchers.

Of households that fail septic tank inspections, 80% receive a fine by 2016

Central database operated by the implementing agency, sanitation scheme coordinator’s progress report

Sanitation scheme coordinator will report twice annually to the STC using data from the asset management database established to monitor septic tanks.

15

15

Ap

pe

ndix

2

5. Estimated Disbursement Schedule

Fiscal Year (FY) Amount ($)

FY2012 163,518

FY2013 711,492

FY2014 1,019,992

FY2015 104,998

Total Disbursements 2,000,000

----------------------------------------------------------------------------- Appendixes

1. Design and Monitoring Framework (mandatory) 2. Summary Cost Table (mandatory) 3. Detailed Cost Estimates (mandatory) 4. Fund Flow Arrangement (mandatory) 5. Implementation Arrangements (mandatory) 6. Summary Poverty Reduction and Social Strategy (SPRSS) (mandatory) 7. Household Selection Matrix 8. Procurement Plan

Appendix 1 16

15

Ap

pe

ndix

2

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance

Targets/Indicators Data Sources/Reporting Mechanisms

Assumptions and Risks

Impact

Improved public and environmental health in targeted areas

Number of reported national cases of gastroenteritis and diarrhea is reduced from 2,019 in 2009 to less than 1,000 by 2016

Monitoring reports produced by the MOH

Assumption

The government commitment to funding the sanitation sector and to operating the sanitation scheme continues.

Outcome

Vulnerable households in targeted areas have sustainable access to improved sanitation

20% of households participating in sanitation scheme by 2016 are low-income households

Samoa water sector annual reports

Assumptions

Public awareness campaigns are successful in motivating low-income households to participate. Low-income households remain committed to the scheme.

Outputs Risks

1. Targeted sanitation scheme established and operational

1.1. 125 sanitation scheme applications approved per year on average over the life of the project

Samoa water sector annual reports Sanitation scheme coordinator’s progress report

Households in the 75% subsidy band are not willing to pay their contribution. Costs of septic tank systems are higher than previous estimates, requiring a reduction in number of households benefiting.

1.2. 400 septic tanks built and certified by 2016

Sanitation scheme coordinator’s progress report

2. Community awareness of sanitation, hygiene, and septic tank maintenance heightened

2.1. 150 applications submitted to sanitation scheme in each year of operation

Sanitation scheme coordinator’s progress report

3. Sanitation scheme is financially and technically sustainable

3.1. Of installed septic tanks that require routine maintenance, 80% have undergone one maintenance cycle by 2016

Central database operated by the implementing agency Sanitation scheme coordinator’s progress report

3.2. 1,000 inspections carried out each year during 2014–2016

Central database operated by the implementing agency Sanitation scheme coordinator’s progress report

3.3. Of households that fail septic tank inspections, 80% receive a fine by 2016

Central database operated by the implementing agency Sanitation scheme coordinator’s progress report

Activities with Milestones 1. Targeted sanitation scheme established and operational

1.1. Confirm selection of pilot villages based on the following criteria: high incidence of diarrhea and typhoid, mix of urban and rural, low-lying, high density, proximity to waterways, proximity to environmentally-sensitive areas, mix of topography, mix of SWA and Independent Water Schemes Association coverage, and availability of existing data from national sanitation survey by Q4 2012.

1.2. Distribute household applications throughout pilot villages to collect information on existing sanitation infrastructure, socioeconomic situation, and health status of applicant households by Q2 2013.

1.3. Select households for participation in the sanitation scheme using selection matrix (see Appendix 7) and determine their subsidy level by Q4 2013.

1.4. Determine infrastructure requirements and in-kind contributions of participating households by Q4 2013. 1.5. Prepare tender documents using information on participating households (infrastructure requirements,

in-kind contributions, and subsidy level), as per ADB guidelines for NCB by Q4 2013. 1.6. Evaluate bids and select septic tank construction and installation contractor for batch 1 by Q2 2014. 1.7. The implementing agency and selected batch 1 contractor sign a civil works contract for the construction

Inputs Grant: JFPR—$2,000,000

Government of Samoa—$135,850 in-kind contribution:

This will include transport (vehicle and fuel), government staff time, office space

Appendix 1

17

of batch 1 septic tanks by Q2 2014. 1.8. The implementing agency and each participating household sign an MOU detailing the responsibilities of

each party and the in-kind and cash contributions to be made by the household (depending on its determined subsidy level) by Q2 2014.

1.9. Collect in-kind and/or cash contributions (depending on determined subsidy levels) from households by Q2 2014.

1.10. Request development consent from PUMA for each participating household and construction approval from the MWTI, following required procedures by Q3 2014.

1.11. Construct the septic tanks of participating households, with the MWTI and project consultants supervising construction Q4 2014.

1.12. Request inspection and certification of works at relevant stages by MWTI staff, as outlined in the civil works contract by Q4 2014.

1.13. Repeat steps 1.6–1.12 for batch 2 and 3 septic tanks from Q3 2014 to Q1 2015. 2. Community awareness of sanitation, hygiene, and septic tank maintenance heightened

2.1. Design public awareness activities by Q1 2013. 2.2. Participate in monthly meetings with village chiefs and the MWCSD throughout the project. 2.3. Broadcast television and radio shows by Q3 2013. 2.4. Publish newspaper articles and advertisements Q3 2013. 2.5. Distribute leaflets to NGOs and other local community liaison agencies to distribute to villages and

households. Private septic tank maintenance companies will also be asked to distribute this information by Q3 2013.

2.6. Participate in National Environment Week and sanitation and hygiene events at schools to promote the pilot scheme and national expansion by Q4 2013.

2.7. Liaise with other relevant public awareness schemes being implemented under other externally funded and government-funded projects throughout the project duration.

2.8. Monitor increased awareness through existing MWCSD monthly surveys throughout the project. 3. Sanitation scheme is financially and technically sustainable

3.1. Gather baseline data for the key performance indicators and design and monitoring framework indicators through the household application process by Q4 2013.

3.2. Earmark funds from the JFPR grant for the septic tank maintenance subcomponent (managed by PUMA), which includes maintenance vouchers, septic tank inspections, and water quality tests Q4 2013.

3.3. Provide each participating household with a voucher entitling it to a subsidized maintenance service (the amount of maintenance support is determined by the household’s subsidy band) by Q2 2014.

3.4. Design and deliver training for implementing agency staff in ADB disbursement procedures and financial management by Q1 2013.

3.5. Design and deliver training for sanitation officials in National Building Code septic tank construction and maintenance provisions by Q2 2014.

3.6. Design and deliver training for MWTI and PUMA officials in proper inspection of septic tank infrastructure by Q4 2014.

3.7. Design and deliver training for MOH, MWTI, and PUMA staff in developing procedures for improved septic tank maintenance monitoring and rules enforcement by Q1 2015.

3.8. Design and deliver training for the MOH, the MWTI, and PUMA in asset database management to support increased knowledge of septic tank conditions and improved tracking of septic tank inspections and maintenance by Q3 2013.

3.9. Design and deliver training for MOH staff in collection and analysis of waterways samples by Q2 2013. 3.10. PUMA carries out inspections of septic tanks and issue fines to households found to be in violation of

acts and regulations from Q1 2014 to Q3 2016. 3.11. The MOH collects water samples in participating villages and tests for quality from Q3 2013 to Q3 2016. 3.12. Households select a septic tank maintenance company to empty their septic tanks, pay this company

and obtain proof of service rendered, and present proof of service rendered and the voucher to the implementing agency for partial reimbursement from Q1 2015 to Q3 2016.

3.13. Document all lessons learned from the procurement and installation of all three batches, public awareness and capacity development activities, and maintenance procedures from Q1 2015 to Q3 2016.

3.14. Prepare an evaluation report and circulate for stakeholder feedback by Q4 2015. 3.15. Prepare a preliminary design and budget for the national expansion of the sanitation scheme based on

lessons learned from the pilot phase by Q1 2016. 3.16. Assist in sourcing additional financing to implement the national expansion by Q2 2016.

and office equipment for project consultants, and public awareness and capacity building event costs.

ADB = Asian Development Bank; JFPR = Japan Fund for Poverty Reduction; MOH = Ministry of Health; MOU = Memorandum of Understanding; MWCSD = Ministry of Women, Community, and Social Development; MWTI = Ministry of Works, Transport, and Infrastructure; NCB = National Competitive Bidding; NGO = non-government organization; PUMA = Planning and Urban Management Agency; Q1 = first quarter; Q2 = second quarter; Q3 = third quarter; Q4 = fourth quarter; SWA = Samoa Water Authority. Source: Asian Development Bank.

18

Ap

pe

ndix

2

SUMMARY OF COSTS

Component A:

Pilot Sanitation

Scheme

Component B:

Public Awareness

Component C:

Financial & Technical

Sustainability

Amount

($)

Amount

(%)

1. Civil Works 1,524,000 1,524,000 76.2

2. Equipment and Supplies 0 0.0

3. Training, Workshops, Seminars, and Public Campaigns 86,248 83,346 169,594 8.5

4. Consulting Services 90,000 18,000 108,000 5.4

5. Grant Management 72,726 72,726 3.6

6. Other Inputs 25,750 25,750 1.3

7. Contingencies (0-10% of total estimated grant fund)1 79,930 8,000 12,000 99,930 5.0

Subtotal JFPR Grant Financed 1,766,656 94,248 139,096 2,000,000 100.0

Government Contribution 2 59,000 42,000 34,850 135,850

Other Donor(s) Contributions (e.g. from NGOs, multi-and

bilateral aid agencies)0

Community's Contributions (mostly in-kind) 3 TBD

Total Estimated Costs 1,825,656 136,248 173,946 2,135,850

Incremental Costs0

Source(s): Asian Development Bank.1 Use of Contingencies requires prior approval from ADB.

3 Community in-kind and cash contributions will be determined through the household application process to the subsidy scheme.

2 Government in-kind contributions include transport (vehicle and fuel), government staff time, office space and office equipment for project consultants, and public awareness and capacity building

JFPR = Japan Fund for Poverty Reduction, NGOs = non-government organizations.

Inputs

19 A

pp

end

ix 2

DETAILED COST ESTIMATES

AmountMethod of

Procurement 3

Component A. Pilot Sanitation Scheme Subtotal 1,745,726 1,686,726 59,000 0 TBD 1

1.1 Civil Works1.1.1 Septic tanks and soak pit systems tanks 470 3,200 1,504,000 1,504,000 0

1.1.2 Latrine upgrade latrines 20 1,000 20,000 20,000 0

1.2 Consulting Services1.2.1 Sanitation Engineer (National) months 12 7,500 90,000 90,000 0

1.3 Management and Coordination of this Component 1.3.1 Sanitation Scheme Coordinator (National) months 18 1,812 32,616 32,616 0

1.3.2 Sanitation Scheme Administrator (National) months 30 1,087 32,610 32,610 0

1.3.3 Operational costs (e.g., office supplies, communications, etc.) months 30 250 7,500 7,500 0

1.3.4 MOF, PUMA, and STC members staff time months 16 2,000 32,000 0 32,000

1.3.5 Office space and office equipment months 36 250 9,000 0 9,000

1.3.6 Local transport and fuel months 36 500 18,000 0 18,000

Component B. Public Awareness Subtotal 128,248 86,248 42,000 0 0

2.1 Training, Workshop, Seminars, and Public Campaigns2.1.1 Materials (e.g., printing, meeting space, etc.) lump sum 20,000 10,000 10,000

2.1.2 Consultant - Public Awareness (national) months 9 6,000 54,000 54,000 0

2.1.3 Sanitation Scheme Coordinator (National) months 4 1,812 7,248 7,248

2.1.4 Sanitation Engineer (National) months 2 7,500 15,000 15,000

2.2 Management and Coordination of this Component 2.2.1 MOF, PUMA, and STC members staff time months 16 2,000 32,000 0 32,000

Component C. Financial and Technical Sustainability Subtotal 161,946 127,096 34,850 0 0

3.1 Other Inputs3.1.1 Septic Tank Maintenance Sub-component (emptying/disposal) voucher 250 75 18,750 18,750 0

3.1.2 Septic Tank Maintenance Sub-component (testing/inspections) lump sum 7,000 7,000

3.2 Training, Workshops, Seminars, and Public Campaigns3.2.1 Construction, inspection, and monitoring/enforcement procedures for septic tanks participant 6 400 2,400 1,200 1,200

3.2.2 Asset database development and management participant 6 300 1,800 900 900

3.2.3 Sampling and analysis for chemical and microbiological parameters of waterways participant 6 250 1,500 750 750

3.2.4 Trainer - construction supervision and inspection (national) months 2 6,000 12,000 12,000 0

3.2.5 Trainer - asset database development (national) months 2 6,000 12,000 12,000 0

3.2.6 Trainer - water testing (national) months 2 6,000 12,000 12,000 0

3.2.7 Sanitation Scheme Coordinator (National) months 8 1,812 14,496 14,496

3.2.8 Sanitation Engineer (National) months 4 7,500 30,000 30,000

3.3 Consulting Services 3.3.1 Consultant - project evaluation (national) months 2 6,000 12,000 12,000 0

3.3.2 Consultant - external auditor (national) months 1 6,000 6,000 6,000 0

3.4 Management and Coordination of this Component 3.4.1 MOF, PUMA, and STC members staff time months 16 2,000 32,000 0 32,000

Components A to C = Subtotal Subtotal 2,035,920 1,900,070 135,850

Contingency (Maximum 10% of Total JFPR Contribution) 99,930 99,930 0

TOTAL Grant Costs Total 2,135,850 2,000,000 135,850 0 TBD 1

Incremental Cost Details 0

TOTAL Incremental Costs 0

Source(s): Asian Development Bank.

3 See Appendix 8 for Procurement Plan.

2 Government in-kind contributions include transport (vehicle and fuel), government staff time, office space and office equipment for project consultants, and public awareness and capacity building event costs.

Cost Per

UnitSupplies and Services Rendered

Costs

Total

Contributions

CommunitiesGovernment

2

Other

DonorsJFPR

Unit

Quantity

Units

JFPR = Japan Fund for Poverty reduction, MOF = Ministry of Finance, PUMA = Planning and Urban Management Agency, STC = Sanitation Technical Subsector Committee, TBD = to be determined.

1 Community in-kind and cash contributions will be determined through the household application process to the subsidy scheme.

Ap

pe

ndix

3

Appendix 4 20

18

Ap

pe

ndix

2

FUND FLOW ARRANGEMENT

1. Civil works and consulting services for the Community Sanitation Project in Samoa will generally be paid through direct payment method. The Asian Development Bank (ADB) will channel Japan Fund for Poverty Reduction (JFPR) funds for other expenses directly to a JFPR imprest account, which will be opened and maintained by the implementing agency in Apia, Samoa, at a bank endorsed by the executing agency and acceptable to ADB, to facilitate day-to-day local expenditures of the JFPR project. As the executing agency, the Ministry of Finance (MOF) will be kept informed by the implementing agency about all transactions, and receive copies of all financial statements and audit reports. The JFPR imprest account will be managed by the implementing agency on the principles of a co-signatory arrangement with the MOF, based initially on the first 6-month activity plan and related budget and afterwards on the approved annual work plan and budget. All work plans and budgets will be prepared by the implementing agency and endorsed by the government’s Sanitation Technical Subsector Committee (STC). 2. ADB will initially channel funds to the imprest account as advance for day-to-day project implementation during the inception period and will replenish funds to the imprest account based on the replenishment requests from the implementing agency through the executing agency. Withdrawal applications for imprest account liquidation or replenishment will be accompanied by full documentation. The imprest account ceiling will be the equivalent of 6 months of expenditures to be financed through the imprest account or $50,000, whichever is lower. Detailed implementation arrangements, such as the flow, replenishment, and administrative procedures, will be detailed in the grant implementation manual and be established between ADB and the government through the JFPR Letter of Agreement. The schematic fund flow for the JFPR project is shown in Figure 1.

21 Appendix 4

20

Figure 1: Fund Flow Arrangements for Japan Fund for Poverty Reduction Project

$1,504,000 332,820$

$27,500

$10,000

$25,750

$99,930Contingencies

Component B: Public Awareness

Component C: Financial &

Technical Sustainability

Consulting Services

Grant Imprest Account held at

Implementing Agency

Component A: Pilot Sanitation

Scheme

$1

63

,18

0

ICB procurements

Asian Development Bank

.

Appendix 5 22

18

Ap

pe

ndix

2

IMPLEMENTATION ARRANGEMENTS

A. Project Implementation and Management 1. Executing and implementing agencies. The Ministry of Finance (MOF) will be the executing agency and the Planning and Urban Management Agency (PUMA) will be the implementing agency. PUMA has assigned two staff members to the project—the assistant chief executive officer and the principal urban management officer. Three individual national consultants—a sanitation scheme coordinator, a sanitation engineer, and a sanitation scheme administrator—will be recruited by PUMA to form the project coordination team. This will be done in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time) and with the executing agency’s procedures to the extent that they do not violate ADB’s guidelines. The consultants will report to PUMA and will assist with procurement, construction supervision, project management, capacity development, and public awareness. 2. Four additional individual national consultants will be recruited by PUMA to design and deliver capacity development training and public awareness campaigns. The public awareness consultant, construction supervision and inspection consultant, asset database development consultant, and water testing consultant will be recruited in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time), as will a project evaluation consultant and the external auditor that PUMA will also recruit as individual national consultants. Two ADB staff consultants will be engaged to train implementing agency staff on ADB’s procurement and disbursement procedures and financial management. 3. As implementing agency, PUMA’s critical functions will include:

(i) recruiting project consultants and procuring civil works contractors; (ii) processing household applications, selecting the households that will participate

in the project, and determining their subsidy allocations; (iii) entering into memorandums of understanding with households and contracts with

contractors; (iv) overseeing the septic tank monitoring, maintenance, inspection, and enforcement

processes; and (v) evaluating the pilot sanitation scheme and preparing a preliminary design for the

national expansion. 4. Sanitation Technical Subsector Committee. PUMA chairs the government’s Sanitation Technical Subsector Committee (STC), which will oversee the project and advise the implementing agency on project implementation, consultant recruitment, procurement, and household applications. Members of the STC include the MOF; PUMA; the Ministry of Natural Resources and Environment (MNRE); the Ministry of Health (MOH); the Samoa Water Authority (SWA); the Ministry of Works, Transport, and Infrastructure (MWTI); and the Ministry of Women, Community, and Social Development (MWCSD). The STC reports to the Joint Water Sector Steering Committee established by the Cabinet. At the STC’s discretion, a working committee that will report to the STC may be established specifically for the project. 5. In addition to their role on the STC, members will have the following responsibilities within the project:

(i) The MOF will assist in the management of the Japan Fund for Poverty Reduction (JFPR) imprest account and submission of withdrawal applications to ADB with full documentation.

(ii) PUMA and the MNRE will implement the day-to-day activities of the project, monitor septic tanks and soak pits, and respond to leakages and odor complaints.

23 Appendix 5

22

(iii) The MWTI will inspect and certify installed septic tanks. (iv) The MWCSD will manage community liaison during the application and

installation phases and provide vital input to the monitoring process through women’s village representatives. Both its Women’s Division, which operates the women’s committees, and its Internal Affairs Division, which is part of the STC, will manage community participation in project implementation and monitoring. Efforts will be coordinated with a family village well-being program, the Aiga ma Nuu Manuia (ANM), which offers community support through the provision of technical assistance by the ANM working group on areas for improved well-being. The ANM is led by Women’s Division of MWCSD.

(v) The SWA will provide technical advice and support during project implementation. Given its expertise in civil and wastewater engineering, it will review the technical specifications of the construction tenders and acting as a member of the tender evaluation panel.

(vi) The MOH will monitor the project’s impacts on health. 6. Procurement and consulting services. All procurement under the project will be in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time). Recruitment of consultants will follow ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).

Figure 1: Implementation Arrangements Chart

Executing Agency Ministry of Finance

Implementing Agency Planning and Urban

Management Agency

Sanitation Technical Subsector Committee

MOF, PUMA, MNRE, MOH, SWA, MWTI, and MWCSD

Project Coordination Team Sanitation Scheme Coordinator

Sanitation Engineer Sanitation Scheme Administrator

Participating Households Approximately 470 in urban

Apia and northwest and northeast regions of Upolu

Civil Works Contractors One each for urban Apia

and northwest and northeast regions of

Upolu

Consultants Public Awareness,

Capacity Development, and Evaluation

Appendix 5 24

18

Ap

pe

ndix

2

B. Disbursements/Funds Flow 7. Grant funds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Civil works and consulting services will generally be paid through direct payment method. To facilitate day-to-day local expenditures of the JFPR project, ADB will channel JFPR funds for other expenses directly to a JFPR imprest account, which will be opened and maintained by the implementing agency in Apia, Samoa at a bank endorsed by the executing agency and acceptable to ADB. The imprest account will be established, managed, replenished, and liquidated in accordance with ADB's Loan Disbursement Handbook. 8. Interest earned on the JFPR imprest account can be used for the project subject to ADB's approval, within the approved total amount of the JFPR funding. Upon completion of the JFPR project and before closing of the JFPR imprest account, any unutilized interest should be returned to the JFPR fund account maintained at ADB. If the remittance fee and other bank charges are higher than the amount of interest earned, such interest need not be returned to the JFPR account maintained at ADB. 9. The ceiling of the imprest account should not exceed the equivalent of 6 months of estimated expenditures to be financed from the imprest account or $50,000, whichever is lower. Withdrawal applications for imprest account liquidation or replenishment will be accompanied by full documentation. Detailed implementation arrangements, such as the flow, replenishment, and administrative procedures, will be detailed in the grant implementation manual and be established between ADB and the government through the JFPR letter of agreement. C. Auditing of Project Accounts 10. Annual audits by independent auditors will be conducted. The auditor’s reports will be submitted to ADB within 6 months after the end of the fiscal year and closing date. The auditor’s report will include the certified copies of the audited accounts and financial statements, with separate auditor’s opinion on the use of imprest account under the JFPR project.

25 Appendix 6

24

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY Country: SAMOA Project Title: Community Sanitation Project

Lending/Financing Modality:

Japan Fund for Poverty Reduction (JFPR) Project Grant

Department / Division:

Pacific Department / Urban, Social Development, and Public Management Division

I. POVERTY ANALYSIS AND STRATEGY

A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy

Through its objectives to develop on-site sanitation infrastructure, increase access to public services, reduce poverty, and improve public and environmental health, this project supports the government’s Strategy for the Development of Samoa 2008-2012

1 and the Asian Development Bank (ADB) 2008–2012 country partnership strategy (CPS) for Samoa.

2

Samoa’s poverty reduction strategy for 2008–2012 aims to ensure sustainable economic and social progress and prioritizes the improvement of water and sanitation services. It considers these services to be important economic infrastructure for creating a more attractive business environment and for increasing public access to basic social services as a facet of poverty reduction. The government’s strategy for achieving its sanitation goals is outlined in its water sector plan and framework for action for 2008–2013, which aims to ensure community access to water of suitable quality and appropriate quantities to meet all reasonable health, environmental, and economic development needs. To achieve this goal, sanitation, drainage, and wastewater treatment and disposal methods must be improved.

ADB’s CPS for Samoa recognizes that many Samoan households lack access to public services, including high quality sanitation services. Accordingly, the CPS aims to improve the physical infrastructure for sanitation as well as the ability of the government and the private sector to deliver sanitation services.

B. Poverty Analysis Targeting Classification: Targeted intervention - household

1. Key Issues

The average annual salary in Samoa is ST12,963 but figures vary substantially between regions. In urban Apia, the average annual salary is ST15,972. It is ST10,017 in the rest of the main island of Upolu (excluding urban Apia and northwest Upolu).

3

Average annual household income in the country is ST27,345 but this also ranges from ST20,904 in non-urban Upolu to ST35,903 in urban Apia.

4 The government’s 2010 poverty report indicates that the average incidence of basic needs poverty is

20.1% of households nationally.5

A high incidence of waterborne diseases like diarrhea and typhoid have been reported in rural areas of Samoa affected by poor socioeconomic conditions and in low-lying areas of urban Apia. Poor health restricts an individual’s productive potential and economic opportunities and causes losses of income due to illness and increased expenses for medical treatment. Anecdotal evidence suggests that some rural residents do not seek needed medical help so that they can avoid the expense of travelling to Apia. Leaking septic tanks in low-lying areas, the results of which are at times visually evident in the nearby waterways, pose particular health threats to vulnerable residents of urban Apia. Access to safe water and sanitation facilities is essential for good health and providing it is a key way to reduce the hardships and raise the standard of living of the poor and vulnerable.

2. Design Features

This project will provide improved sanitation infrastructure by building septic tanks for low-income and vulnerable households, who cannot afford effective on-site treatment and disposal systems. The eligibility criteria for participation in the project are based on socioeconomic conditions and the project will target low-income, vulnerable households, particularly in rural areas and in low-lying areas of urban Apia. Communities from the northwest region of Upolu have been selected because the Ministry of Health reports that they have a high incidence of waterborne disease. Participating villages in urban Apia are situated along two major waterways—the Apaula Stream and the Vaisagano River. Improvement in sanitation infrastructure along their banks will help improve the environmental quality of the waterways overall and benefit the health of residents nearby and downstream who will not be direct participants in the project.

Special provisions have been included to ensure that poor, vulnerable, and lower-income households are the principal project beneficiaries. These include (i) providing a 100% subsidy for the poorest households (i.e.), those below the national poverty line that cannot afford to make

any financial contribution to infrastructure costs); (ii) providing a 100% subsidy for other vulnerable households, such as those with multiple young children or multiple elderly

residents; (iii) providing a 100% subsidy for households that have a pit latrine and are unable to install a septic tank to upgrade to a

ventilated improved pit latrine;6

(iv) prioritizing the selection of lower-income households from among applicants in the 75% subsidy band, using income estimates based on household characteristics such as number of members, levels of employment and types of jobs, and stated ability to provide a financial contribution;

Appendix 6 26

25

Ap

pe

ndix

2

(v) permitting in-kind contributions to be provided by participating households, which will substantially reduce the cash cost of participating in the scheme; and

(vi) informing participants of potential financing options to help cover their 25% contribution, if applicable.

Local construction companies and consultants will be involved in the scheme, which will not only help the local economy but will also expand its human resource capacity. By bringing sanitation services to poor and vulnerable households, the project will help Samoa achieve its priorities in the sanitation sector and its poverty reduction goals. Upgraded sanitation systems will contribute towards the improvement of waterways in the long run, removing a key source of poor health among vulnerable households.

C. Poverty Impact Analysis for Policy-Based Lending (Not applicable)

II. SOCIAL ANALYSIS AND STRATEGY

A. Findings of Social Analysis

Households in Samoa often lack access to good sanitation due to a lack of knowledge and insufficient financing. The national sanitation survey found that, in general, knowledge of what a septic tank does and how it works is low. Very few respondents know how wastewater is broken down in septic tanks and only 19% of the urban residential respondents know that these tanks store wastewater. These knowledge barriers play a role in the low proportion of households with properly functioning septic tanks. The national sanitation survey found that less than half of septic tanks had been emptied in the last 5 years, indicating a very high level of leakage, and that only around half of septic tanks had a properly constructed soak away pit. Without this, septage flows to a road drain or across the ground in the property, causing negative health impacts and high incidence of waterborne disease. The survey also found that households would be willing to pay up to 10% of the construction cost of a septic tank but consultations revealed that this contribution would need to be in-kind for many households, particularly rural ones. The project’s subsidy percentages reflect this willingness-to-pay level and the project will allow in-kind contributions from all participating households. Knowledge barriers will be overcome through training and public awareness activities.

B. Consultation and Participation

1. Provide a summary of the consultation and participation process during the project preparation. Throughout the design phase of the pilot scheme, various consultation meetings were undertaken with members of the Sanitation Technical Subsector Committee (STC), including the Ministry of Works, Transport, and Infrastructure, the Samoa Water Authority, the Ministry of Health, Planning and Urban Management Agency and the Water Sector Coordination Unit (both within Ministry of Natural Resources and Environment), the Ministry of Women, Community, and Social Development (MWCSD), and the Ministry of Finance. These consultations provided information on the current role of each agency in Samoa’s sanitation subsector and helped in formulating their roles and responsibilities in the pilot scheme, including in its implementation and monitoring. Consultations also took place with the councilors and chiefs of villages through a seminar held by the MWSCD to present the pilot sanitation scheme.

2. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring? Information sharing Consultation Collaborative decision making Empowerment

3. Was a C&P plan prepared? Yes No If a C&P plan was prepared, describe key features and resources provided to implement the plan (including budget, consultant input, etc.). If no, explain why. A C&P was not prepared because the following strategies for consulting with stakeholders are incorporated in the project design: (i) survey of stakeholders’ infrastructure and financing needs through the application process, (ii) targeted public awareness campaigns on septic tank construction and maintenance and health impacts of poor sanitation, (iii) regular monitoring of improved awareness and health impacts through community structures, and (iv) consultations with stakeholders during project evaluation and the design of the national expansion.

C. Gender and Development

1. Key Issues

Women in Samoa bear the primary responsibility for household tasks, child care, and caring for sick family members. Improving basic infrastructure services such as sanitation services will promote the health of family members and reduce the housework burdens of women. Women in Samoa play a key role in encouraging good hygienic habits and in maintaining new sanitation infrastructure and services. In Samoa, women are actively involved in development issues at the village level. MWSCD staff currently conduct a household survey once a month on various socioeconomic and infrastructure issues. Women’s committees and the wives of the matais (village chiefs) are heavily involved in village issues. No specific adverse impacts to women are foreseen.

2. Key Actions

The project will target women to participate in the scheme through awareness raising and will provide opportunities for women to participate in project implementation and monitoring. Women’s committee members and youth representatives will help to spread public awareness of the scheme, encourage households to apply to the scheme, monitor project implementation at the village level, and monitor septic tank maintenance and increased awareness. Their role will be particularly important in rural areas participating in the scheme but active women’s committees in urban areas will also play this part. Existing monthly MWSCD surveys will be used to spread awareness of the scheme, collect data for performance monitoring, and garner stakeholder feedback on the success of pilot implementation and how the national expansion should be designed and implemented. The

27 Appendix 6

26

MWCSD will be a key member of the STC. It will be responsible for managing community liaison, coordinating with the Aiga ma Nuu Manuia program, and providing vital monitoring support through women’s representatives in villages.

Gender plan Other actions/measures No action/measure

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Significant/Limited/ No Impact

Strategy to Address Issue

Plan or Other Measures Included in Design

Involuntary Resettlement

No impact. Land acquisition is unlikely to be required to operate the sanitation scheme. All physical works will be restricted to land already owned by the householder.

Full Plan Short Plan Resettlement Framework No Action

Indigenous Peoples

No Impact. There are no Indigenous Persons in Samoa, according to ADB’s definition (i.e., a group or cultural identity distinct from that of the dominant or mainstream society).

Plan Other Action Indigenous Peoples

Framework No Action

Labor

Employment opportunities Labor retrenchment Core labor standards

Limited Impact. Short-term jobs may be generated during construction of septic tanks and other improved sanitation systems, and long-term jobs may be generated by maintenance requirements and the future expansion of the scheme at national level.

Plan Other Action No Action

Affordability

No Impact. The project specifically aims to make improved sanitation services more affordable by targeting subsidies to poor households.

Action No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human trafficking Others(conflict, political

instability, etc.

No other social risks have been identified.

Plan Other Action No Action

IV. MONITORING AND EVALUATION

Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes No

Source: Asian Development Bank. 1 Ministry of Finance of Samoa. 2008. Strategy for Development of Samoa 2008–2012.Apia.

2 ADB. 2008. Country Partnership Strategy: Samoa, 2008–2012. Manila.

3 2006 National Census; Water for Life 2008–2011 Report.

4 2008 Household Income and Expenditure Survey.

5 Basic Needs Poverty Lines and Incidence and Characteristics of Hardship and Poverty Report, August 2010.

6 The ventilated improved pit latrine is a variant on the basic dry pit latrine with several innovative design

improvements to reduce smell, flies, and mosquitoes.

Ap

pe

ndix 7 2

8

HOUSEHOLD SELECTION MATRIX

Notes: 1. This household is rejected because this particular grant is for septic tanks only (except basic dry pit upgraded to VIP latrines) and does not include water cisterns and flushing systems. 2. This household is rejected because septic tank systems should be functional and also unlikely to have adverse effect on waterways, if maintained appropriately. 3. Monthly income is derived from employer’s letter or judgement based on other information, if letter is not available. 4. It is assumed that space for a new tank is available and there is reasonably good access. 5. The project coordination team will need to decide what percentage of household should be targeted for 100% subsidy in a particular village or region. 6. If number of qualified households exceed the number the project can afford, then households will be ranked according to the following criteria: rank 1 – households with lowest income

as stated in employer supporting letter, rank 2 – households with fewest number of members in employment, rank 3 – households with greatest number of children or elders, rank 4 – households with no septic tank, rank 5 – households with no base slab, rank 6 – households closest to waterway.

What type of toilet does the household have?

Does the household have a septic tank?

Is there a base slab?

Is the household close to a waterway?

Rejected (give advice on maintenance)

2

What is the household income?

Greater than ST1500/month

3

Less than ST1500/month

3

How many children less than 12 yrs old are in household? 75%subsidy

4,5,6 100% subsidy

4,5,6

VIP Latrine

Flushed Toilet Basic dry

pit

Rejected (give advice on maintenance)

1

Upgrade to VIP Latrine

100% subsidy

Yes No

Yes No

>10 m <10m

<4 >4

Rejected (give advice on maintenance)

29 Appendix 8

28

PROCUREMENT PLAN

Table A8.1: Procurement Plan

Project Information Pilot Sanitation Scheme

1. Septic tanks and soak pit systems in three regional batches 2. Sanitation scheme coordinator 3. Sanitation engineer 4. Sanitation scheme administrator

Public Awareness 1. Public awareness consultant

Financial and Technical Sustainability 1. Construction supervision and inspection consultant 2. Asset database development consultant 3. Water testing consultant 4. Project evaluation consultant 5. External auditor

Country Independent State of Samoa

Name of borrower Government of Samoa

Project name Community Sanitation Project

Loan reference

Date of effectiveness

Amount ($) 2 million

Of which committed ($) 0

Executing agency Ministry of Finance

Publication for local advertisements

Period covered by this plan August 2012—July 2016 Source: Asian Development Bank.

Table A8.2: Procurement Thresholds—Goods and Related Services and Works

Procurement Method Threshold ($)

National Competitive Bidding for goods and services 100,000 (minimum) Shopping for goods and services National Competitive Bidding for works

100,000 100,000 (minimum)

Source: Asian Development Bank.

Table A8.3: Procurement Thresholds—Consultant Services

Procurement Method Threshold

All consultants (individual consultant recruitment) Not applicable

Source: Asian Development Bank.

Appendix 8 30

Ap

pe

ndix 7 2

8

Table A8.4: Indicative List of Contract Packages Goods, Works, and Consulting Services

1

Location

Contract Description

Estimated Cost

a

($) Procurement

Method

Expected Date of

Advertisement

Prior Review Yes/No

Apia Sanitation scheme coordinator (national)

54,360 Individual September 2012

Yes

Apia Sanitation engineer (national)

135,000 Individual September 2012

Yes

Apia Sanitation scheme administrator (national)

32,610 Individual September 2012

Yes

Apia Public awareness consultant (national)

54,000 Individual December 2012

Yes

Apia Construction supervision and inspection consultant (national)

13,200 Individual October 2013 Yes

Apia Septic tanks and soak pit systems—batch 1

501,333 NCB January 2014 Yes

Apia Asset database development consultant (national)

12,900 Individual June 2013 Yes

Apia Water testing consultant (national) 12,750 Individual January 2013 Yes

Northwest Upolu

Septic tanks and soak pit systems—batch 2

501,333 NCB July 2014 Yes

Northeast Upolu

Septic tanks and soak pit systems—batch 3

501,333 NCB July 2014 Yes

Apia Project evaluation consultant (national)

12,000 Individual July 2015 Yes

Apia External auditor (national) 6,000 Individual July 2015 Yes a Exclusive of taxes, duties, and price contingencies.

1 Until national standard bidding documents approved by the Asian Development Bank are available in Samoa,

standard Asian Development Bank bidding documents will be used by the project.