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Government of Bangladesh Ministry of Foreign Affairs, Denmark

Support to Water Supply and Sanitation Sector 2012-2015 (SWSSS)

Bangladesh

PROGRAMME DOCUMENT

Final

J.No. 104.Bang.814-300 November 2010

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Table of Content

1 INTRODUCTION ................................................................................................................. 1

2 NATIONAL AND SECTOR CONTEXT ........................................................................ 2 2.1 National Economic and Social Context ........................................................................ 2 2.2 Policies and Strategies in the WSS sector ...................................................................... 2 2.3 Sector Stakeholders and Institutions .............................................................................. 2 2.4 Status and Development Plans of Water and Sanitation Sector ................................ 3 2.5 WSS sector financing ....................................................................................................... 4 2.6 Coordination ..................................................................................................................... 4 2.7 Cross-cutting issues and priority themes ....................................................................... 4

3 Objective ................................................................................................................................... 5 3.1 Development objectives .................................................................................................. 5 3.2 Immediate objectives ....................................................................................................... 6

4 Description of components ................................................................................................... 7 4.1 Policy Support Component (PSU) ................................................................................. 7 4.2 HYSAWA Fund Component ......................................................................................... 8

5 Cross-cutting issues and priority themes ............................................................................ 10

6 Budget ..................................................................................................................................... 12

7 Management and organisation ............................................................................................. 13 7.1 Management .................................................................................................................... 13

8 Financial management and procurement ........................................................................... 15 8.1 Assessment of Sector Budget Support Eligibility ....................................................... 15 8.2 Work Planning and Budgeting ...................................................................................... 16 8.3 Flow of Funds ................................................................................................................. 16 8.4 Financial/Accounting Manual ...................................................................................... 17 8.5 Auditing ........................................................................................................................... 17 8.6 Procurement .................................................................................................................... 18

9 Monitoring, reporting, reviews and evaluations ................................................................ 20 9.1 Monitoring ....................................................................................................................... 20 9.2 Reporting ......................................................................................................................... 20 9.3 Monitoring Indicators .................................................................................................... 21 9.4 Reviews ............................................................................................................................ 22

10 Key assumptions and risks ................................................................................................. 23 10.1 Assumptions .................................................................................................................. 23 10.2 Key Risks ....................................................................................................................... 23 10.3 Pre-conditions ............................................................................................................... 24

11 Programme Implementation Plan ..................................................................................... 25 11.1 Inception Phase............................................................................................................. 25 11.2 Implementation Phase ................................................................................................. 25

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Annex 1 - SWSSS Budget in DKK .......................................................................................... 26

Annex 2 - HYSAWA Fund Budget.......................................................................................... 28

Annex 3 - PSU Budget ............................................................................................................... 31

Annex 4 - SWSSS Expenditure per Danish Fiscal Year ........................................................ 33

Annex 5 - SWSSS Expenditure per Bangladeshi Fiscal Year ............................................... 35

Annex 6 – Component Descriptions ........................................................................................ 37

Annex 7 – Gender Rolling Plan ................................................................................................. 38

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List of Abbreviations ADP Annual Development Programme BB Bank of Bangladesh BBS Bangladesh Bureau of Statistic CDF Community Development Forum CHT Chittagong Hill Tracts CLTS Community Led Total Sanitation CP Cooperating Partner DPHE Department of Public Health Engineering EoD Embassy of Denmark FMO Fund Management Office GDP HH

Gross Domestic Product Household

HIES Household Income and Expenditure Survey HR Human Resource HYSAWA Hygiene, Sanitation and Water Supply INTOSAI International Organisation of Supreme Audit Institutions ISA International Standards of Auditing LCG Local Consultative Group LGD Local Government Division LGED Local Government Engineering Department LGI Local Government Institution M&E Monitoring and Evaluation MD Managing Director MDG Millennium Development Goals MICS Multiple Indicator Cluster Survey MLGRD&C Ministry of Local Government, Rural Development and Cooperative MoU Memorandum of Understanding MTBF Mid Term Budgetary Framework NILG National Institute for Local Government NSAPR National Strategy for Accelerated Poverty Reduction PD Project Director PNGO Partner NGO PPR PPP

Public Procurement Rules Public Private Partnership

PRSP Poverty Reduction Strategy Paper PSU Policy Support Unit SBS Sector Budget Support SDP Sector Development Plan SIP Sector Investment Plan SO Support Organisation SWAp Sector Wide Approach SWSSS Support to the Water Supply and Sanitation Sector UP Union Parishad WASA Water Supply and Sewerage Authorities WSS Water Supply and Sanitation WSSPS Water Supply and Sanitation Programme Support

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1 INTRODUCTION

Bangladesh has during the last couple of decades made significant achievements in the water supply and sanitation (WSS) sector. Access to domestic water supply, through affordable and easy to install hand pumps, is almost universal in the rural areas. Significant improvement in sanitation coverage is also being achieved through Community-Led Total Sanitation (CLTS) campaigns and many other initiatives. Despite the improvements in the coverage of both sanitation and water supply, many issues still hamper the delivery of sustainable water and sanitation services. Some of the challenges include the needs for institutional reforms, modernisation and strengthening of sector institutions and not least of the Union Parishads (UPs) and other Local Government Institutions (LGI), the development of regulatory frameworks etc. The prevailing problem of arsenic contamination of groundwater and the lowering of the ground water table due to excessive extraction of groundwater for irrigation also continues to be a real challenge in terms of sustainable improvement of the water supply coverage. Sector policies and strategies have been developed in a large number of areas (with decentralisation as a prominent exception) but so far GoB has not succeeded in setting up a common framework for future development. However, it is expected that the forthcoming revised Sector Development Plan (SDP) will include action plans for the development of the strategic, institutional and regulatory sector framework and a roadmap for moving towards a Sector Wide Approach (SWAp). Danida has been supporting the WSS sector in Bangladesh for more than three decades. Many impressive achievements have been made over the years in terms of improved water supply and sanitation coverage, especially in the coastal belt region where at least 3-4 millions of people have received improved access to hygienic sanitation and portable drinking water. The support has also included assistance to ITN at the technical university BUET to introduce appropriate technologies in the curricula of the engineering students and support to establish a policy unit in LGD and to develop several policies. This new phase of Support to the Water Supply and Sanitation Sector will be limited and focused on two areas only: support to policy work and to large scale implementation of WSS. The programme will continue to focus on hygiene promotion, water supply and sanitation in rural areas. This third phase of Danish support to WSS sector (entitled Support to the Water Supply and Sanitation Sector - SWSSS) has a duration of 4 years (2012-2015) and will comprise two components: 1. The Sector Policy Support Component and 2. The HYSAWA Fund Component. The Danida contribution to the SWSSS totals DKK 200 million (BDT 260 crore).

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2 NATIONAL AND SECTOR CONTEXT

2.1 National Economic and Social Context

Bangladesh has a population of around 160 million and is one of the most densely populated countries in the world with more than 1100 persons per square kilometre. Bangladesh achieved its independence in 1971. Since then the GDP has more than tripled in real terms, the food production has also increased in a similar magnitude. The population growth rate has declined from 2.9% per annum in 1974 to 1.2% in 2009. The incidence of poverty has been declining. The national head count index of poverty declined from 56.6% to 40.0% in 2005. In 2009 the poverty level is estimated to be between 31.1% and 32.5%1. Despite rises in household income, income distribution remains highly unequal. The bottom 40% which coincides with the proportion of poor in total population receives only 14.4% of the total income whereas on the other hand the top 5% receive nearly 27% of the total income in 20052. Various studies indicate that “hard core” poor are mostly women. Regional disparities exist: The poverty incidences in the three western Divisions namely Khulna, Barisal and Rajshahi were 45.7%, 52.0% and 51.2% respectively in 2005 while the incidences of poverty in eastern Divisions namely Dhaka, Chittagong and Sylhet were 32.0%, 34.0% and 33.8% respectively3. In a majority of cases Bangladesh is on track with prospects of earlier attainments of some targets. Bangladesh has successfully achieved gender parity in primary and secondary education and is on track on poverty reduction and other areas like net enrolment ratio in primary education and reduction in child mortality. However, several areas are lagging behind, which include primary school completion rate, adult literacy rate and access to safe water.

2.2 Policies and Strategies in the WSS sector

The functioning of the water and sanitation sector in Bangladesh is governed by a comprehensive set of policies and strategies which includes National Policy for Safe Water Supply & Sanitation 1998, National Policy for Arsenic Mitigation and Implementation Plan 2004, National Sanitation Strategy 2005 and Pro-Poor Strategy for Water and Sanitation Sector 2005. The Policies in general address the outstanding issues in the sector. However, when it comes to implementation of those policies they are usually not followed by concrete targets and a timeframe, financial allocations and government directives.

2.3 Sector Stakeholders and Institutions

Government: Local Government Division (LGD) is responsible for overall monitoring and governance in relation to providing access to water and sanitation, policy formulation, regulation and overall strategic planning for the sector. The different agencies under LGD are: (i) Department of Public Health Engineering (DPHE) – mainly responsible for providing technical support to UPs for water and sanitation services in rural and urban areas that are

1 NSARP II, December 2009 2 BBS, Household Income and Expenditure Survey (HIES), 2005. No national level HIES are carried out after 2005. 3 A Strategy for Poverty Reduction in Lagging Regions of Bangladesh by General Economic Division of the Planning Commission, March 2008.

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not served by WASAs. (ii) Water Supply and Sewerage Authorities (WASAs) in Dhaka, Chittagong and Khulna cities, (iii) Local Government Engineering Department (LGED), (iv) Local Government Institutions (LGIs) in the urban (City Corporations and Municipalities) and rural areas (mainly UPs) responsible for managing implemented communal water and sanitation systems and (v) National Institute for Local Government (NILG), which is responsible for capacity development of local government bodies. NGOs and Civil Society: They have been working at grassroots level in different fields, with participation of the local people. The NGO‟s have been supporting government and other programmes with motivation and education targeting mostly poor communities. Civil society members are mostly involved in providing guidance and advocacy works. Individuals and Private Sector: Many individuals in the rural and urban areas install their own tube wells and sanitation facilities in their houses. Private sector entities like private contractors, suppliers and consultants are involved directly or indirectly in the WSS sector development. Development Partners: The WSS sector is supported by DPs such as World Bank, ADB, DFID, JICA, Unicef, Dutch and Danida. External assistance to the sector has been reduced in recent years with DFID phasing out, whereas AusAid is coming. The World Bank and ADB are mainly financing individual large urban infrastructure projects and JICA, Unicef, AusAid and Danida are in the rural areas.

2.4 Status and Development Plans of Water and Sanitation Sector

The Multiple Indicator Cluster Survey (MICS) carried out by BBS and Unicef in 2009 shows that 85.2% people have access to improved water sources (rural 83.4% and urban 93.3%). In the case of sanitation the national coverage is 80.4% (rural 78.9% and urban 86.4%) with improved sanitation facilities. However, when hygienic latrine is considered (pan with water seal) the national coverage descends to 38.9% (rural 32.8% and urban 63.4%). It should be noted that it is estimated that the arsenic problem discovered some 15 years ago in reality has reduced the coverage of water supply to appropriately 75 %. On top of this, a very large number of tube wells run dry in the dry season due to insufficient depth and lowering of groundwater tables as a result of excessive abstraction of groundwater for irrigation. During the dry season the cities and urban areas are usually hit by serious water crises among others caused by energy and power shortages, which affect pumping stations around cities and around the country. Some estimates therefore put the actual coverage percentage at around 60 % for water supply when taking all these factors into consideration. The figures for sanitation might also give a distorted picture, as most latrines are not hygienic and open defecation is still not fully eradicated in rural and urban areas. The relatively high coverage does not necessary reflect the satisfactory functioning of the sector. Deep-rooted poverty and people living in geographically hard to reach and vulnerable areas like hills and Chars (river islands) have isolated a large proportion of population from the development mainstream. Even though there are several programmes for arsenic mitigation, today about 15 to 20 million people are consuming arsenic contaminated water. There are increasing problems of lowering of ground water level, excessive salinity – these problems now extends to about half of the country and are apprehended to deteriorate further due to climate change and wiping out the achievements made so far. The sanitation coverage is high and is expected to achieve near universal coverage by 2013 but according to

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the MICS report a large proportion (42%) of them are without water seal meaning that they are not fully capable to stop disease transmission. The present public service delivery mechanism is top-down and do not always reflect the needs and aspiration of the common people. The institutional arrangements are not adequate to meet the sector challenges; the division of roles and responsibilities among the sector agencies are unclear and often overlapping. The coordination and monitoring mechanisms need to improve and there is strong need to build the capacities of sector agencies and communities. In the above background the government is preparing a revised Sector Development Plan (SDP)4 and it is expected to be approved during 2010. The SDP will cover a period of 15 years divided into short, medium and long-term plans. The SDP will clearly define the roles and responsibilities of the various stakeholders, outline necessary sector reforms, and propose strategic development plans for the large cities, secondary and small towns, rural areas and Chittagong Hills Tract. Finally, it is expected that the SDP will include a road map for the transition to a SWAp in the WSS sector, i.e. a common framework under which projects and programmes are planned, coordinated, implemented and monitored.

2.5 WSS sector financing

For the last few years the government had started practicing Mid Term Budgetary Framework (MTBF) for a period of 3 years in more than 20 Ministries and Divisions including LGD. Under MTBF the fund available for the WSS sector is about USD 200 million per year against a requirement of about USD 350-400 million per year for the next five years to meet the sector objectives5. The resource gap is expected to be covered by additional contributions from the government and DPs.

2.6 Coordination

The water and sanitation sub-committee of the Local Consultative Group (LCG) is an informal platform for the donors and other stakeholders to exchange views. The National Forum for Drinking Water Supply (chaired by the secretary LGD) is a formal body where the government agencies, donors and other stakeholders meet. Recently PSU has supported establishing twelve thematic groups6 under the National Forum to provide technical assistance in preparing different thematic areas in SDP and also to provide guidance in implementing the themes. The SDP also envisage drawing a road map for SWAp in the sector and ensuring sector coordination and monitoring.

2.7 Cross-cutting issues and priority themes

The basis of inclusion of cross cutting and priority theme issues in the programme is the national policies of Bangladesh and the development policies of Denmark, most notably the Constitution of Bangladesh and national sector and general policies and strategies of the country as well as the Strategy for Denmark‟s Development Cooperation: Freedom from Poverty – Freedom to Change, July 2010. The Constitution of Bangladesh (Articles 27 and 28 ) ensures equal rights to all citizens, and prohibits discrimination against any citizen on the grounds of religion, race, caste, sex or

4 Original SDP was prepared in 2005 5 Short Term SIP for 5 years prepared under SDP 6 The thematic groups are hard to reach areas, water quality, arsenic, disaster management and climate change, R&D, hygiene, environmental sanitation, drinking water resource management, sector reform and institutional reform, monitoring and evaluation, cross-cutting issues and PPP

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region. Subsequently several policies for different areas are prepared such as the National Policy for Empowerment of Women 2001 (section 6.8 specifically on water and sanitation) and Bangladesh Disability Welfare Act 2001. The general policies and strategies are laid down in NPAPR II (2009-11) while water and sanitation specific issues are mentioned in the National Policy for Safe Drinking Water and Sanitation 1998. The Updated Poverty Map of Bangladesh 2009 (by BBS, The World Bank and FAO) may also be used to target poorer section on the country.

The five priorities for Danish development policy are i) growth and employment, ii) freedom, democracy and human rights, iii) gender equality, iv) stability and fragility and v) environment and climate. The programme will contribute within the water and sanitation sector framework to most of these priorities by promoting local businesses, creating jobs, involving local authorities and communities in decision making and choice regarding development activities, enhancing gender equality in recruitment, career development and choices regarding options and placement of water and sanitation facilities as well as ensuring sustainable and climate proofed technical options.

3 OBJECTIVE

3.1 Development objectives

Bangladesh‟s development objectives and implementation plans are traditionally prepared as 5-Year Plans. However, in order to put emphasis on poverty reduction the first Poverty Reduction Strategy Paper (PRSP) entitled Unlocking the Potentials: National Strategy for Accelerated Poverty Reduction (NSAPR I) was prepared for 2005-2008 as a medium-term strategy to achieve the MDGs by 2015 and to achieve accelerated growth focusing on development of human resources and the infrastructure.

The present government has adopted a long-term development Vision, which will be reflected in the Perspective Plan (2010-2021), is under preparation. In order to achieve the vision as many as 12 sets of targets for different sectors are set for the macro economy. One of such targets are ”Ensure living accommodation for the entire population by 2015, supply pure drinking water for the entire population by 2011 and bring each house under hygienic sanitation by 2013”. This target is also in the Election Manifesto of the present government and indeed reflects the importance of water and sanitation sector in the development agenda.

The NPAPR II (Steps towards Change) for 2009-11 has been revised by the government in December 2009. The NPAPR II was prepared in the light of the development vision, Election Manifesto and the need for policy continuity. It also considered the MGDs to be achieved by 2015. The programme will support the poverty reduction development objective within in the 6th Five-Year Year.

Under the national context the development objectives of the Programme is

Reduced poverty within the 6th Five-Year Plan and Poverty Reduction Strategy development objectives for safe water and sanitation in Bangladesh.

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3.2 Immediate objectives

Within the above development objective the two components will comprise the following immediate objectives: PSU Component:

A permanent water supply and sanitation policy unit established in LGD

LGD enhancing Water Supply and Sanitation Policy and Strategy Framework through implementation of the Sector Development Plan.

HYSAWA Component:

Local government institutions‟ capacity strengthened for service delivery in water supply and sanitation in the intervention areas

Hygiene behavior improved in the intervention areas

Access to hygienic sanitation and safe drinking water improved in the intervention areas

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4 DESCRIPTION OF COMPONENTS

4.1 Policy Support Component (PSU)

Danida has provided support to policy development in the WSS sector since the late 90s. In the WSSPS-I, the Unit for Policy Implementation (UPI) was included as a component to support the Local Government Division in preparing and formulating policies, strategies and guidelines of GoB. In the WSSPS-II, the Policy Support Unit (PSU) became the successor of the UPI with the same function to be carried out under different implementation modalities. During the formulation of the SWSSS, the need for a plan to integrate the policy functions into the Local Government Division (LGD) organogramme has been discussed with a view to sustaining policy support as a routine government function and ensuring national ownership. It has been agreed that the WSS policy functions should be mainstreamed into the LGD organogramme during the SWSSS implementation period (2012-2015) with a view to GoB fully taking over core functions and funding of the policy unit by 2015. This process will be supported through the first immediate objective of the component including training of key PSU/LGD staff. Danida support to funding of core operational costs of PSU and staff expenditure (advisers and support staff) will decrease throughout the component period with a view to a full take-over by GoB in 2015. Up to the present, activities in the WSS sector in Bangladesh remain dominated by projects and previous attempts to establish a common framework for future sector development have not had the expected impacts in terms of increased coordination, harmonisation and alignment in the sector. It is expected that a revised Sector Development Plan (SDP) to be approved by GoB in 2010 will clearly define the roles and responsibilities of the various stakeholders, outline necessary sector reforms, propose strategic development plans for enhancing water supply and sanitation (WSS) coverage and approve a road map for the transition to a SWAp in the WSS sector. The Sector Policy Support Component will provide funding for the implementation of the action plans deriving from the SDP in terms of policy, institutional and regulatory framework. The PSU will play a lead role in piloting, coordinating, and monitoring the SDP implementation. Climate change issues at policy and strategy levels will be addressed by the PSU in areas like mainstreaming of policy documents, strategies, sector plans, and vetting guidelines; and dissemination of best practices in ongoing climate change adaptation activities. It is expected that a detailing of the component outputs and indicators pertaining to the implementation of the SDP (immediate objective 2) will be detailed when the plan has been approved by GoB. The Component will have a budget totalling approximately BDT 23.75 crore, of which Danida will provide 82%. GoB co-funding totalling 18% of the total component budget is

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foreseen for activities related to the implementation of the SDP and a gradual increase of government funding of PSU core operational expenditure.

4.2 HYSAWA Fund Component

The HYSAWA Fund was established with the purpose to create an independent financial institution for funding of WSS services through UPs. The Fund is established under the Companies Act and provides an opportunity for Government of Bangladesh and DPs to provide funding for Rural WSS through a basket arrangement. A Board comprising of representatives from public sector, NGOs, and DPs manages the Fund. GoB, Danida, and AusAid finance the Fund. The HYSAWA Fund will support water supply and sanitation activities in three districts in the southern coastal belt, in five districts in the North-western region and in three districts in the Chittagong Hill Tracts, in total app. 350 Union Parishads (UP). The Fund is working under the guiding principles of providing decentralized rural water supply and sanitation service delivery by UPs and ensuring community ownership. The activities to be directly implemented by UPs and by community organisations (Community Development Forum (CDF), will include promotion of improved hygiene practices, improved access to safe drinking water and hygienic sanitation by poor and vulnerable groups. The UPs will be capacitated and given technical and financial support to ensure successful implementation. The UP schemes will be identified through a bottom up participatory planning process. The Fund is expected to assist approximately 350 UP. The HYSAWA Fund will sign MoU with interested UPs. The UP staff and elected members will be given formal training in accounting and bookkeeping, project design, tendering and monitoring. The UPs will receive assistance from support organisations (SO) in connection with the preparation and implementation of the UP schemes. A partner NGO (PNGO) contracted by the UPs will deliver hygiene promotion and sanitation promotion integrated through CLTS. The communities being motivated are expected to install their own latrines. Local contractors contracted by the UPs will construct the water supply. The SOs are contracted by the FMO to train and support the PNGOs, who will mobilise the CDFs in the UPs. In the longer term HYSAWA Fund is expected to demonstrate an effective decentralized service delivery model through local governments. Once such a delivery model is created, it can be used for other public services like rural infrastructure, primary health care and mass education. As the model is based on permanent government structures and the prevailing capacities of private sector; it can easily be scaled up for undertaking large-scale decentralized investment programmes. The areas were the activities will be implemented will be selected based on a series of criteria including: 1) There are defined needs for WatSan projects, i.e. un- or underserved poor and disadvantaged communities in terms of water supply and sanitation, 2) There is no duplication of WatSan activities in the local area, 3) UP functionaries are willing to participate in the project, 4) Good audit track record, 5) Previous experience in management of development work, 6) Economics of scale (UPs located in one specific area, e.g. a district), and 7) Technical solutions are readily available so that there is no uncertainty and no time gap to develop new technologies. Based on these criteria the working areas are expected to be: the low water table areas in 1) Rajshahi Division 2) Dhaka Division, selected areas of 3) Chittagong Hill Tracts and Coastal Belt districts if time and funds permit.

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It is estimated that app. 1.200.000 and 800.000 people will get access to improved water supply and to hygienic sanitation through the HYSAWA Fund. The Component will have a budget totalling approximately BDT 347.2 crore, of which Danida will provide approximately 50%, GoB 10%, other CPs 25% and Community 15% of the total component budget.

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5 CROSS-CUTTING ISSUES AND PRIORITY THEMES The Programme will work with crosscutting issues and priority themes both from a policy perspective and an implementation perspective in line with Bangladeshi and Danish policy priorities. The work of the PSU is guided by GoB‟s overall policies and priorities and by the SDP. PSU will continue the ongoing work of mainstreaming crosscutting issues and priority themes, including climate change consideration, into strategies and guidelines. HYSAWA will ensure that crosscutting issues and priority themes are considered during planning and implementation. Poverty concerns are mainstreamed into GoB policies, strategies and guidelines. The interventions implemented will be designed and implemented to support poverty alleviation. HYSAWA will adopt possible actions at the grass root level in accordance with the National Strategy for Accelerating Poverty Reduction (2009-2011), the sixth Five Year Development Plan 2010-2014, and the LGD pro-poor strategy. Growth and employment will be promoted by employing local contractors, consultants, advisers and support staff to the extent possible. It is also expected that investments in better health and time consuming access to drinking water and sanitation will generate additional opportunities for boosting the local economy to the benefit of local communities and households. Freedom, Democracy, Human Rights and Gender will be promoted in practical ways through the programme and to the extent possible sought mainstreamed into GoB policies, strategies and guidelines. The communities will have offered choices and opportunities to make own decisions and be responsible for planning and designing their schemes. The communities will also be encouraged through the community management promotion (CMP) approach to be able to address broader issues like equitable resource allocation and human rights, particularly improving the vulnerable situation of the poor and women. Providing an active role in development for people with disability (PWD) in designing and implementing projects at local level is important. Accessibility is vital to sustainability and communities will be assisted to find appropriate solutions that will meet the needs of vulnerable community members. The community organizations will comprise three groups: (a) poor, (b) women and (c) general public, i.e., including richer sections of the community. This structure will ensure equity-based representation of poor, both women and men, and help all segments of the communities to bring their relevant agenda in the village development plan. The PSU will promote gender equality concerns at the policy and strategy level by ensuring the gender equality is properly reflected in policies and strategies and this is being monitored. Female participation in national and foreign training programmes, study tours, seminars and workshops shall also be strengthened and monitored. The HYSAWA FMO will ensure that SOs and PNGOs promote and mainstream gender equality concerns in the implementation and activities, including ensuring gender sensitive designs and location of sanitation and water supply facilities. A more equally employment of women and men shall also be more effectively encouraged and followed by the Programme and its Components. Effective dissemination of gender policies and strategies of GoB, Danida and other DPs shall be encouraged in the Programme and by it partners. Good Governance will especially through HYSAWA be ensured by

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establishing systems for accountability, proper use of procurement rules, community participation and transparency through mandatory public disclosure systems. Proper handling of funds will be addressed by setting up an accountability relationship with the people and a mandatory and transparent public disclosure system. Environmental improvement activities are by HYSAWA undertaken under the CLTS campaign. This improves the local environmental situation in terms of cleanliness, proper waste management, etc. All the community schemes are technically appraised at the Upazila level, which includes environmental assessments. Climate Change. Both components will implement the recommendations made for them by the Climate Change Management Plan for the Water and Sanitation Sector prepared in 2008-09. The programme will also provide indirect support to the National Climate Change Strategy and Action Plan (revised in 2009). It is expected that the LGD through the PSU and the DPHE will play a leading role in developing practical measures to mitigate climate change and ensure that these are adopted and implemented. PSU will strengthen policy support and coordination related to climate change issues in the water and sanitation sector.

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6 BUDGET The budget of the SWSSS for the period 2012-2015 totals BDT 307.45 crore (DKK 236.5 million) with the distribution showed below. Exchange Rate: 1 DKK = 13 BDT BDT (Lac)

Total DKK (thousand)

Total Danida GoB Danida GoB

A. Sector Policy Support Component 1950 457 2407 15,000 3,515 18,516 B. HYSAWA Fund Component 22655 4288 26942 174,269 32,981 207,250 C. Reviews, Audits etc. 650 0 650 5,000 0 5,000 D. Unallocated Funds 745 0 745 5,730 0 5,730 Total 26,000 4745 30745 200,000 36,496 236,496

It is assumed that additional funding totalling BDT 112.7 crore will be provided by other DPs to the HYSAWA Fund for the period 2012-2015. The budget per component immediate objectives and including the contribution of other DPs and beneficiary communities is as follows:

Lac BDT Danida GoB Other DPs

Community

Total

A. Sector Policy Support Component 1,950 457 2,407

IO. No. 1 Support the establishment of a permanent WSS policy unit in LGD

429 323 648

IO. No. 2 Assist LGD in enhancing WSS Policy and Strategy Framework through implementation of the SDP

1,209 134 1,343

Long term international adviser 312 312

B. HYSAWA Fund Component 22,655 4,288 11,265 7,108 45,316

IO no. 1

Strengthen capacity of local government institutions‟ service delivery in water supply and sanitation in intervention areas

6,783 742 1,582 8,811

IO no. 2 Improve hygiene behaviour in intervention areas

3,125 625 625 4,375

IO no. 3 Improve access to hygienic sanitation and safe drinking water in intervention areas

12,747 2,921 9,045 7,108 31,822

C. REVIEWS, AUDITS ETC. 650 650

D. UNALLOCATED FUNDS 745 745

TOTAL 26,000 4,745 11,265 7,108 49,118

The detailed budget in DKK is presented in Annexe 1 and the detailed budget of the two components per outputs in Annex 2 and 3. The expected distribution of expenditures per fiscal year (Danish FY and Bangladeshi FY) is presented in Annexe 4 and 5.

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7 MANAGEMENT AND ORGANISATION

7.1 Management

Sector Policy Support Component The PSU will be headed by a full time Project Director (PD) seconded by the GoB. The full authority for the administrative and financial management of the Component will be with the PD. The PD will have the rank of Deputy Secretary and he/she will be assisted by 2 full-time GoB professional staff (rank of Senior Assistant Secretary) to be assigned to the PSU, 1 international adviser, 3 national advisers and a lean administrative staff. The above staffing level will apply for the first two years of the component and is subject to revision when the policy functions are mainstreamed into the LGD organogramme. The PD will be responsible for the day-to-day management of the component and report to the Joint Secretary of the Water Wing in LGD. As a national steering committee has not yet been established in the WSS sector, overall steering of the Sector Policy Support Component will be handled by a committee comprising the Secretary of the LGD and the Ambassador of EoD. This committee will meet twice a year (December/January and June/July), or whenever required, to review progress reports, endorse annual work plans and budgets before submission to Planning Commission and Ministry of Finance, to agree on the ToR and to the fielding of the annual audit team and to address major issues and constraints to component implementation. PSU will follow government procedures in terms of planning, budgeting and implementation. This committee will further take decisions on annual and technical reviews and on adjustments of the scope and budget distribution of the PSU budget. The decisions from the committee meetings will be documented in minutes. The PSU will report on progress to MLGRD&C and the EoD. HYSAWA Fund Component The component will be fully managed by the HYSAWA Fund. The Governing Board is overall responsible for the Fund and gives policy directions to the Managing Director that is responsible for the day-to-day management. The Board has members from both public and private sector as well as members from the donors supporting HYSAWA and is chaired by the Secretary LGD. The Board will follow the Memorandum and Articles of Association approved by the registrar of the companies and the agreements signed with the respective donors as long as these are not in conflict with the Memorandum and Articles of Association. The Board will approve HYSAWA policies and procedures as well as work plans and budgets. The HYSAWA Fund Management Office (FMO) will be responsible for the fund administration, monitoring and auditing. Some of these functions will be outsourced to specialized individuals or agencies. These specialised individuals or agencies will act under the

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supervision of the FMO. The FMO will be staffed with a Managing Director, supported by Director Programme, Director M&E, Director Finance and Admin & HR Manager. Each director and manager will be supported by a small number of professional staff. HYSAWA Fund will retain its current slim structure and operate with a minimum number of permanents staff and outsource tasks as mentioned above. As mentioned above, the Governing Board of HYSAWA constitutes the supreme decision making body of the HYSAWA Fund and comprises representatives from GoB (LGD, other ministries and DPHE), funding agencies, UPs and civil society representatives. Overall decision making regarding the HYSAWA Fund Component will thus be the responsibility of the Board. The FMO will report on progress to the Board with copy to MLGRD&C and the development partners.

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8 FINANCIAL MANAGEMENT AND PROCUREMENT

8.1 Assessment of Sector Budget Support Eligibility

An assessment has been carried out to assess whether the programme would be eligible for sector budget support (SBS). This analysis is based on the 10 criteria set out in Danida‟s Guidelines for Programme Management (July 2009). The sector level criteria presented in Annexe 6 include: 1. The sector policy and planning framework; 2. Development results achieved and documentation of these; 3. Public financial management issues for the sector; 4. Partnership situation at the sector level; and 5. Joint-financing mechanisms/ arrangements for the sector. The analysis carried out indicates that conditions are not yet fulfilled to envisage providing SBS to the water and sanitation sector in Bangladesh. Major constraints to the sector funding through SBS include: Although the framework for sub-sector policies and strategies, including a pro-poor strategy for sector investments is quite comprehensive, there are no clear policies/ strategies on e.g. decentralisation of responsibility for WSS delivery. A national programme for future sector development based on the goals set out in the PRS II including a planning and monitoring framework is yet to be developed. A Sector Development Plan (SDP) currently being prepared might constitute a first step towards a national sector programme. The GoB reporting system is input-based and does not include output and results-based monitoring and reporting. Presently the ministry in charge of water supply and sanitation does not have a full-fledged monitoring system making it possible to monitor sector progress on a reliable and regular basis. According to an overall analysis carried out by the EoD, the functioning of the national auditing institutions, systems and procedures is still not up to international standard and much remains to be desired. The National Auditors Office has a limited independence and a weak and insufficient capacity. It is not likely that national audit institutions, systems and procedures will comply with necessary standards prior to commencement of the WSSPS III. Although the ministry responsible for water supply and sanitation is one of the ministries now included in the MTBF process, the financial management systems and accounting departments within the MLGRD&C are considered as being weak and poorly functioning. Corruption is still widespread in Bangladesh. Even though some efforts are made to fight corruption Bangladesh still ranks as the 134 most corrupt country out of 178 in 2010. However, even though GoB strive to fight corruption much still remains to be done. Coordination between GoB and DPs in the WSS sector remains weak and there are presently not any joint DP financing mechanisms in place except for Dhaka WASA development framework.

7 Corruption Perception Index 2009, Transparency International.

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Although conditions are not yet fulfilled to providing the Danish support through SBS, the SWSSS will be aligned to national procedures to the extent possible. This alignment includes mainstreaming of the WSS policy functions into the Local Government Division, a gradual take-over by GoB of core funding of the policy unit through the Revenue Budget and budgeting and procurement in accordance with national procedures.

8.2 Work Planning and Budgeting

Annual component work plans and budgets will be prepared as rolling semi-annual work plans and budgets and should be timed with the preparation of the GoB Revenue Budget and the Annual Development Programme (ADP). The components will report on progress on a semi-annual basis and follow the GoB‟s fiscal year planning and budgeting cycle. Semi-annual progress reports will be submitted to EoD and other development partners, if needed. In the HYSAWA Fund component, draft work plans and budgets will be submitted by the Managing Director of HYSAWA to the Board for approval. Upon approval, the Managing Director will forward a request for release of funds to the EoD. The Board will approve the work plans and budgets, and the Managing Director will on this basis forward request to EoD for funding. In the PSU component, draft work plans and budgets will be submitted by the Project Director of the PSU to the Secretary of the LGD, the Joint Secretary of the LGD Water Wing and the EoD for approval. Upon approval, the Project Director of PSU will forward a request for release of funds to the EoD.

8.3 Flow of Funds

The arrangement for the flow of funds that has been agreed upon is based on the current arrangement being followed by EoD in other sectors. Two bank accounts will be established, one for the PSU and one for the HYSAWA Fund. Danish funds for the two Components will be disbursed by the EoD to the individual component accounts based on requests by the Project Director of PSU or by the Managing Director of HYSAWA FMO. Supporting documentation in the form of a bank balance statement and the budget for the coming 6 months shall be attached to the fund request. Funds from GoB will be released based following the procedures described by the Ministry of Finance. The component accounts will be BDT accounts in a commercial bank in the name of the component. Drawing rights for the two accounts at component level will be as follows: PSU BDT Bank Account: The Project Director of the PSU HYSAWA BDT Bank Account: The Managing Director of the HYSAWA A system of joint signatures on all payments shall be applied both at the PSU and at the HYSAWA Fund. GoB funds for the HYSAWA fund will be transferred to the HYSAWA BDT account from the ADP following the guidelines for fund release and utilisation for development projects issued by Ministry of Finance.

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GoB funds for the PSU Component will be channelled through the treasury system both for expenditures to be covered through the Revenue Budget (salaries of GoB seconded staff) and expenditures to be covered through the ADP. In the HYSAWA Component, the applying agencies from GoB, SO, PNGO and the private sector will manage funds/sub-grants primarily for capacity building and facilitation services to UPs within the guidelines/framework provided by HYSAWA for financial and procurement management. Each implementing partner/PNGO will be individually responsible for its own audits but will provide financial and procurement reports to HYSAWA and fund request to HYSAWA on a quarterly basis. A detailed guideline for implementing partners will be developed by HYSAWA during the inception phase and approved by the Board. The UPs will be responsible for fund management at the field level. The detailed procedures for planning, budgeting and implementation at the field level by UPs and other partners are given in the UP financial and procurement guidelines developed by HYSAWA. Funds from the HYSAWA will be released in instalments – the instalment will be released upon reaching some predetermined milestones. The Secretary of UP will be responsible for fund management and will keep record of expenditure, prepare financial reports and send these to the HYSAWA. The Secretary will receive formal training by the UP training provider and support by the SO. The matching contribution of beneficiary communities for water supply and sanitation facilities will be deposited to the separate accounts maintained by UP for HYSAWA activities. In the case of self-help items like household sanitation, the villagers will directly and fully contribute cash and labour. The Danish funding will through the DPP or TPP be registered by GoB as contribution to the ADP.

8.4 Financial/Accounting Manual

On the basis of the Financial/Accounting Manual prepared for the Water Supply and Sanitation Sector Programme Support Phase II, the PSU shall elaborate a financial management/accounting manual for the PSU component to be approved at the end of the inception phase by both the EoD and the GoB. The manual shall give an explicit description of the component‟s accounting procedures and of the organisation of the accounting function and the accounting system and related systems. The manual shall stress the programme/project management‟s responsibility to maintain a sound record-keeping system, and to control the use of funds in relation to achievement of objectives. For the HYSAWA Fund component, the service rules, staff manual and implementation manuals approved by the Board will be applied. A system of joint signatures on all payments shall be applied for the PSU and for the HYSAWA Fund.

8.5 Auditing

The Project Director of the PSU is responsible for the financial management and maintenance of accounts in PSU. The EoD will contract external auditors. The accounts shall be audited annually in accordance with either International Standards of Auditing (ISA) or

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audit standards issued by International Organisation of Supreme Audit Institutions (INTOSAI)8. The audit report, including a financial statement for the financial period audited and the memorandum of examination shall be forwarded to the EoD, along with the management response, if any, no later than six months following the end of the accounting period. For the HYSAWA Fund component, auditing will take place at two levels: the auditing of the HYSAWA funds account and the auditing of the PNGOs. The HYSAWA Board is responsible for the Fund and the MD is responsible for the financial management and maintenance of accounts. The HYSAWA accounts at both levels will be subject to annual audits. The HYSAWA Fund audits will take place in accordance with the Danida rules and procedures. The PNGOS will be responsible for their own audits. These audits shall include - but not be limited to - inspection of accounting records including examination of supporting documentation of the transactions, confirmation of cash and bank holdings, checking of bank reconciliation, direct confirmation of accounts receivables, and verification of physical inventories and fixed assets. The audits shall include a test of compliance with the accounts manual, and an audit of the procurement function. In addition, the HYSAWA Fund will yearly commission special audits of accounts and management of its PNGOs and UPs on a random basis. The donors may also undertake or commission financial control visits, audit of any project or sub-projects/PNGOs and value for money and procurement audits if situation warrants. The audit report shall be forwarded to the Board for approval and copies distributed to GoB and EoD no later than six months following the end of the accounting period. EoD will, if feasible together with other DPs, undertake an annual external audit of the HYSAWA Component in accordance with international standards as described above. The Comptroller and Auditor General of GoB maybe undertake audits of the programme and its components PSU and HYSAWA Fund.

8.6 Procurement

Procurement in the two components shall be done in compliance with GoB rules, i.e. the Public Procurement Rules (PPR). The DPs may also undertake or commission procurement audits as and when needed. In the HYSAWA component, procurement responsibility will be as follows: HYSAWA FMO: Support Organisations (jointly with UP representatives), UP training providers, SO training providers and companies/institutions specialised in M&E, quality assurance of service/construction contracts and financial monitoring and audits. UPs: PNGOs and WSS construction/supervision works. The SO and PNGO contracts will be fixed price contracts.

8 www.intosai.org

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Contracting and payment of international consultants and the international long term adviser will be done by the EoD according to Danida/EU procedures based on Terms of Reference suggested by the beneficiary organisation. EoD and the beneficiary organisation will do selection of the international consultants jointly. Although the Danish Ministry of Foreign Affairs will enter into contracts with the consultants, these will report to and be responsible to the component management. Procurement of services related to the budget lines administered directly by the EoD will be done in accordance with Danida/EU rules.

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9 MONITORING, REPORTING, REVIEWS AND EVALUATIONS

9.1 Monitoring

The PSU Component will detail a monitoring system (including verifiable indicators) at the start up of the component and include the system in the Inception Report. The monitoring system shall be elaborated by integrating indicators agreed upon in the road map for the implementation of the Sector Development Plan. HYSAWA has developed a monitoring system that focus on monitoring the key activities of implementation of WSS schemes. Monitoring is carried out at three levels: Community level, UP level and National level. The community monitoring system will monitor village level activities, particularly behaviour change and environmental sanitation parameters (stopping open defecation, installation and use of latrines, hand washing, homestead cleanliness, etc.). The UP will be responsible for progress monitoring and reporting of the status of different works and contracts (design completed, tender floated, work order issued, progress of hardware and software works, etc.). The existing UP WatSan Committee will be responsible for monitoring and reporting. The UP will forward the UP progress report to the HYSAWA as per guidelines. At National level data will be collected and analysed on quarterly basis and used by management and the Board level. The M&E functions will be outsourced to an expert organisation that will report to HYSAWA.

9.2 Reporting

To suite the requirements both for GoB and GoDK fiscal year reporting, two progress reports will be provided by each component, one in July and one in January. The PSU Component will submit component progress reports and financial reports to the Joint Secretary of the LGD Water Wing, the Secretary of the LGD and the EoD. Reporting will be done in accordance with Danida guidelines. If other DPs decide to fund the PSU, a uniform reporting format will be developed. When the PSU functions are integrated in the LGD in 2014, normal GoB progress reporting procedures (ADP monitoring reports) will apply. However, separate financial reports as required by Danida will still be submitted to the EoD. Three months after the start of the component, the PSU Management will prepare an Inception Report in line with Danida‟s Guidelines for Programme Management for approval by the LGD and the EoD. The Inception Report will provide a detailed overview of activities carried out during the inception phase as well as detailed work plans and budgets for the first year of operation and indicative work plans and budgets for the remainder of the programme period. Furthermore, a revised and detailed monitoring system (including verifiable indicators) shall be elaborated by integrating indicators agreed upon in the road map for the implementation of the Sector Development Plan. Finally, the inception report shall include the draft financial management/accounting manual mentioned above. The HYSAWA component will report monthly to GoB as per guidelines; and prepare semi-annual progress reports and quarterly financial statements to EoD and other donors. The reports will be forwarded through the Board. The progress report will present physical and financial progress against approved plans and budgets. The progress reports will also include

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detailed work plans and budgets for the following period for discussion and approval by the HYSAWA Board. HYSAWA will further prepare an Annual Report for the Fund. Three months after the start of the component, the HYSAWA Fund will prepare an Inception Report for approval by the HYSAWA Board. The Inception Report will provide detailed work plans and budgets for the first year of operation and indicative work plans and budgets for the remainder of the programme period. At the end of the programme period both components will prepare project completion reports. The report will be prepared as described in Danida‟s Guidelines for Programme Management and submitted to both GoB and Danida. The draft completion report shall be submitted three months before completion of the programme.

9.3 Monitoring Indicators

The progress of the Programme will be monitored against the objective indicators for the two components. These indicators are:

Objective/Output Indicator

PSU Component

Immediate Obj. no. 1: A permanent water and sanitation policy unit established in LGD

WSS policy unit formally established in LGD by

January 2014

WSS policy unit (salaries and core office

operations) fully funded by GoB from 2015

Immediate Obj. no. 2: LGD enhancing the Water and Sanitation Policy and Strategy Framework through implementation of the Sector Development Plan.

The implementation pace for the SDP

recommendations as laid down in the SDP road

map is respected.

HYSAWA Component

Immediate Obj. no. 1: Local government institutions‟ capacity strengthened for service delivery in water supply and sanitation in the intervention areas

% of UP capable of planning and implementing

local WSS projects

Immediate Obj. no. 2: Hygiene behavior improved in the intervention areas

% of population washing hands with soap

Immediate Obj. no. 3: Access to hygienic sanitation and safe drinking water improved in the intervention areas

% of HH using hygienic sanitation

% of HH with access to safe water supply

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9.4 Reviews

Reviews of the components will be conducted when found necessary by the GoB, Danida or other DPs. If possible, these reviews will be integrated into a joint sector review process or be carried out jointly with other DPs contributing to the PSU or the HYSAWA.

The annual review of the HYSAWA Fund will be timed to coincide with release of the Annual Report (beginning second quarter of the calendar year). It is anticipated that the annual reviews will be thematic reviews with in-depth assessment of different part of HYSAWA‟s activities. Efforts will be made to undertake reviews jointly with other partners to the extent possible, both for PSU and HYSAWA.

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10 KEY ASSUMPTIONS AND RISKS

10.1 Assumptions

The key assumptions for successful implementation of the PSU component are that sector stakeholders and development partners will regard the PSU as a fully owned GoB unit, that GoB is committed to mainstreaming WSS policy functions into the normal LGD organogramme and will ensure that the deadline set for the official recognition of the policy unit is met, and that GoB views the forthcoming Sector Development Plan and the actions plans regarding the future institutional, regulatory and policy setting that will derive from it as the overall framework for sector development in the years to come. The overall assumptions for successful implementation of the HYSAWA Component are that local administration at different levels will cooperate actively with the Fund and its activities and that the model of devolution of authority to UPs is accepted by the policy makers and UPs and line agencies that are used to working under supply driven modes will fulfil their envisaged role in the proposed demand driven process. It is also an assumption that other donors are ready to contribute to the HYSAWA Fund.

10.2 Key Risks

The key risks related to the implementation of the PSU Component are that:

LGD counterpart staff designated to work in the PSU may be assigned late, have other conflicting duties or do not allot sufficient time to the working of the Unit, which may lead to delays or inaction. Keeping the experience from the WSSPS II in mind, it is important to ensure that GoB staff for the PSU is in place from the start of the Component and that they are full-time committed to their work. This will be mitigated by ensuring a process that allows for a timely GoB approval of the programme and the Component. Other DPs may not be willing to contribute to the implementation of the Sector Development Plan. Danish funding to the WSS sector is only a small part of the entire requirement for funding and support to the sector and the SDP. Negotiations should continue with GoB and DPs for ensuring adequate funding of the Plan.

Other DPs may be reluctant in moving towards a SWAp. Sector Coordination, harmonisation among donors and alignment to national procedures remain weak in the WSS sector in Bangladesh. The SDP, however, constitutes a golden opportunity for GoB and DPs to move towards more harmonisation and sector coordination in the sector. The initiation of joint annual sector reviews with a view to assessing progress of SDP implementation might be a good starting point.

The main risks related to the implementation of the HYSAWA Component are:

Misappropriation of funds as different levels The risk will be mitigated through a robust risk minimisation strategy. HYSAWA will establish fiduciary control on the UP HYSAWA bank accounts and provides close monitoring and regular reporting. This will be supplemented by capacity building.

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The contracting process for implementation may be influenced or interfered with by local power structure. This will be mitigated through transparency in selecting contractors, possibly through a system of pre-qualification and through formal and on-the-job capacity building, the latter by SO.

HYSAWA is not well linked with the line agencies and government administrative tiers at District and Upazila levels and unable to draw technical and administrative assistance The Chairperson of the HYSAWA Fund Board who is also the secretary LGD is expected to facilitate proper linkage between HYSAWA and government offices.

DPHE district and Upazila staff might provide insufficient support to UP in the scheme implementation HYSAWA Board will request the Chief Engineer, DPHE to issue a letter to instruct DPHE staff ad district and Upazila level to assist the UPs with the implementation.

10.3 Pre-conditions

It is a pre-condition that:

The GoB will ensure that a policy unit for WSS is created as an integrated part of the normal organogramme of the Local Government Division by the end of the first half of

2014 by the latest and that salaries and core operational costs of the unit is fully covered by the GoB through the Revenue Budget and the ADP by January 1st 2015. Failure to meet these deadlines might lead to reconsideration by Danida of the support provided through the Sector Policy Support Component.

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11 PROGRAMME IMPLEMENTATION PLAN

11.1 Inception Phase

Three months after the start of the component, the PSU Management will prepare an Inception Report in line with Danida‟s Guidelines for Programme Management for approval by the LGD and the EoD. The Inception Report will provide a detailed overview of activities carried out during the inception phase as well as a detailed work plans and budgets for the first year of operation and indicative work plans and budgets for the remainder of the programme period. Furthermore, a revised and detailed monitoring system (including verifiable indicators) shall be elaborated by integrating indicators agreed upon in the road map for the implementation of the Sector Development Plan. Finally, the inception report shall include the draft financial management/accounting manual mentioned above. The HYSAWA FMO will also prepare an Inception Report three months after start of the implementation. This report will include detailed work plans and budgets for the first year of operation and an indicative work plan and budgets for the remainder period of the programme. The HYSAWA MD will present the Inception Report to the Board for approval.

11.2 Implementation Phase

The planning, implementation and reporting cycles and requirements are described in the two component descriptions. The programme will be reviewed at least every second year. These reviews will, if possible, be integrated into a joint review process and carried out jointly with other DP‟s supporting PSU and / or HYSAWA. EoD and LGD will jointly carry out an assessment of the fulfilment of the precondition for the PSU Component by the end of first half of 2014.

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Annex 1 - SWSSS Budget in DKK

27

SWSSS BUDGET in DKK

DKK (thousand) Danida GoB Other DPs Community Total

A. Sector Policy Support Component 15,000 3,515 0 0 18,516


3,302 2,482 0 0 5,785


9,298 1,033 0 0 10,331

Long Term International Adviser 2,400 0 0 0 2,400

B. HYSAWA Fund Component 174,000 32,981 86,650 54,684 348,584

IO no. 1

Strengthen capacity of local government institutions‟ service delivery in water supply and sanitation in intervention areas

52,000 5,705 12,263 0 70,145

IO no. 2 Improve hygiene behaviour in intervention areas

24,000 4,809 4,809 0 33.655

IO no. 3 Improve access to hygienic sanitation and safe drinking water in intervention areas

98,000 22,467 69,578 54,684 244,784

C. REVIEWS, AUDITS ETC. 5,000 0 0 0 5,000

D. UNALLOCATED FUNDS 6,000 0 0 0 6,000

TOTAL

200,000 36,496 86,553 54,684 377,830

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Annex 2 - HYSAWA Fund Budget

29

HYSAWA FUND COMPONENT – DETAILED BUDGET

GoDK GoB Other

Donors Community Total

Output.1

Technical, financial and management capacities of 350 LGIs increased through supply-driven capacity building support from training, capacity building partners and HYSAWA FMO.

3.065 470 755 - 4.290

Output.2 LGIs exercising the administrative and financial authorities delegated to them in a transparent and accountable way.

3.718 272 839 - 4.828

Output.3 Hygiene behaviour/practice improved in the participating communities.

3.125 625 625 - 4.375

Output.4 Access to sanitaion facilities and its proper use achieved in the participating communities improved.

3.135 690 1.478 3.973 9.275

Output.5 Access to safe water source and safe water use increased in the participating communities

9.612 2.341 7.567 3.136 22.656

TOTAL amount in Lac BDT

22.656 4.398 11.264 7.108 45.425

1. Ref

No Output GoDK GoB

Other Donors

Community Total

Output.1

Technical, financial and management capacities of 350 LGIs increased through supply-driven capacity building support from training, capacity building partners and HYSAWA FMO.

23.58 3.62 5.81 0.00 33,00

Output.2 LGIs exercising the administrative and financial authorities delegated to them in a transparent and accountable way.

28.60 2.09 6.45 0.00 37,14

Output.3 Hygiene behaviour/practice improved in the participating communities.

24.04 4.81 4.81 0.00 33,65

30

1. Ref

No Output GoDK GoB

Other Donors

Community Total

Output.4 Access to sanitaion facilities and its proper use achieved in the participating communities improved.

24.12 5.31 11.37 30.56 71,35

Output.5 Access to safe water source and safe water use increased in the participating communities

73.66 18.01 58.21 24.12 174,28

TOTAL amount in Millions DKK

174,00 33.83 86.64 54.68 349.43

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Annex 3 - PSU Budget

32

SECTOR POLICY SUPPORT COMPONENT – DETAILED BUDGET

Lak Taka Danida GoB Total


429.4 322.7 752.1

Output 1.1 PSU adequately staffed and funded 310.9 322.7 633.6

Output 1.2 LGD assisted in establishing WSS policy unit

7.5 0,0 7.5

Output 1.3 LGD/PSU capacitated to pilote, coordinate and monitor SDP implementation

111.0 0.0 111.0


1,208.7 134.3 1,343.0

International Advisor

312.0 0,0 312.0

Total Component

1,950,1 457.0 2,407.1

DKK (thousands) Danida GoB Total


3,302.00 2,482.31 5,785.38

Output 1.1 PSU adequately staffed and funded 2,392.00 2,482.31 4,873.85

Output 1.2 LGD assisted in establishing WSS policy unit

57.00 0.00 57.69

Output 1.3 LGD/PSU capacitated to pilote, coordinate and monitor SDP implementation

854.00 0.00 853.85


9,297.00 1,033.08 10,330.77

International Advisor

2,400.00 0.00 2,400.00

Total Component

15,000.00 3,515.00 18,516.00

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Annex 4 - SWSSS Expenditure per Danish Fiscal Year

34

EXPECTED DISTRIBUTION OF SWSSS EXPENDITURE

DANISH FICAL YEAR

Lac Taka

2012 2013 2014 2015 Total

GoDK GoB GoDK GoB GoDK GoB GoDK GoB

HYSAWA FUND

Output.1 613 94 919 141 1226 188 306 47 3534

Output.2 779 57 1118 82 1470 107 352 26 3991

Output.3 625 125 937 188 1250 250 312 63 3751

Output.4 627 138 941 207 1254 276 314 69 3826

Output.5 1922 468 2884 702 3845 936 961 234 11953

Total 4566 883 6799 1320 9045 1757 2245 439 27055

SECTOR POLICY SUPPORT

Output 1.1 124 40 121 40 66 94,35 149 634

Output 1.2 3,75 3,75 7,50

Output 1.3 11 33 33 33 111

Output 2.1-2.3 242 27 363 40 363 40 242 27 1343

Intern. TA 156 156 312

Total 536 66 677 80 462 135 275 176 2407

REVIEWS, AUDITS 80 200 200 170 650

UNALLOCATED 520 225 745

TOTAL 5182 949 7676 1400 10227 1892 2915 614 30857

Thousand DKK

2012 2013 2014 2015 Total

GoDK GoB GoDK GoB GoDK GoB GoDK GoB

HYSAWA FUND

Output.1 4,715 723 7,069 1,085 9,431 1,446 2,354 362 27,185

Output.2 5,992 438 8,600 631 11,308 823 2,708 200 30,700

Output.3 4,811 965 7,209 1,446 9,615 1,923 2,400 481 28,850

Output.4 4,823 1,062 7,238 1,592 9,646 2,123 2,415 531 29,431

Output.5 14,785 3,602 22,185 5,403 29,577 7,203 7,392 1,800 91,946

Total 35,126 6,789 52,302 10,157 69,303 13,518 17,269 3,373 208,112


Output 1.1 951 305 931 305 510 726 1,147 4,873

Output 1.2 29 29 58

Output 1.3 85 256 256 256 854

Output 2.1-2.3 1,860 207 2,789 310 2,789 310 1,860 207 10,331

Intern. TA 1,200 1,200 2,400

Total 4,124 511 5,205 615 3,555 1,036 2,116 1,354 18,515

REVIEWS, AUDITS 615 1,538 1,538 1,308 5,000

UNALLOCATED 4,000 2,000 2,000

TOTAL 39,865 7,300 59,045 10,771 78,671 14,554 22,424 4,727 237,358

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Annex 5 - SWSSS Expenditure per Bangladeshi Fiscal Year

36

BANGLADESHI FISCAL YEAR

Lac BDT FY July '11-

June'12 FY July'12-

June'13 FY July'13-

June'14 FY July'14-

June'15 FY July'15-

June'16 Total

GoDK GoB GoDK GoB GoDK GoB GoDK GoB GoDK GoB

HYSAWA FUND

Output.1 307 47 766 118 1073 165 766 118 153 24 3534

Output.2 390 29 949 70 1294 95 911 67 176 13 3991

Output.3 313 63 781 157 1094 219 781 156 156 31 3751

Output.4 314 69 784 173 1098 242 784 173 157 35 3826

Output.5 961 234 2403 585 3365 819 2403 585 481 117 11953

Total 2283 441 5683 1102 7922 1539 5645 1098 1123 219 27055


Output 1.1 62 20 122 40 94 67 33 122 0 75 634

Output 1.2 2 0 4 0 2 0 0 0 0 0 750

Output 1.3 6 0 22 0 33 0 33 0 17 0 111

Output 2.1-2.3 121 13 302 34 363 40 302 34 121 13 1343

Intern. TA 78 0 156 0 78 0 0 0 0 0 312

Total 268 33 606 73 569 107 369 155 138 88 2407

REVIEWS, AUDITS ETC.

40 0 140 0 200 0 185 0 85 0 650

UNALLOCATED 0 0 0 0 260 0 373 0 113 0 745

TOTAL 2591 475 6429 1175 8952 1646 6571 1253 1458 307 30857

thousand DKK

FY July '11-June'12

FY July'12-June'13

FY July'13-June'14

FY July'14-June'15

FY July'15-June'16

Total

GoDK GoB GoDK GoB GoDK GoB GoDK GoB GoDK GoB

HYSAWA FUND

Output.1 2,358 362 5,892 904 8,250 1,265 5,892 904 1,177 181 27,185

Output.2 2,996 219 7,296 535 9,954 727 7,008 512 1,354 100 30,700

Output.3 2,405 482 6,010 1,205 8,412 1,685 6,008 1,202 1,200 240 28,850

Output.4 2,412 531 6,031 1,327 8,442 1,858 6,031 1,327 1,208 265 29,431

Output.5 7,392 1,801 18,485 4,502 25,881 6,303 18,485 4,502 3,696 900 91,946

Total 17,563 3,395 43,714 8,473 60,939 11,838 43,423 8,446 8,635 1,687 208,112


Output 1.1 475 152 941 305 720 515 255 936 0 573 4,873

Output 1.2 14 0 29 0 14 0 0 0 0 0 58

Output 1.3 42 0 171 0 256 0 256 0 128 0 854

Output 2.1-2.3 930 103 2,324 258 2,789 310 2,324 258 930 103 10,331

Intern. TA 600 0 1,200 0 600 0 0 0 0 0 2,400

Total 2,062 256 4,665 563 4,380 825 2,836 1,195 1,058 677 18,515

REVIEWS, AUDITS ETC. 308 0 1,077 0 1,538 0 1,423 0 654 0 5,000

UNALLOCATED FUNDS 2,000 2,865 1,135 6,000

TOTAL 19,933 3,650 49,455 9,036 68,858 12,663 50,547 9,640 11,212 2,363 237,358

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Annex 6 – Component Descriptions

The Component descriptions for the PSU Component and the HYSAWA Fund Component are separate volume

38

Annex 7 – Gender rolling plan

39

The Gender Equality Rolling Plan for Danish Bilateral Programme Support

12 Basic Information

Programme title: Support to Water Supply and Sanitation Programme in Bangladesh, Phase III

Sector: Water Supply and Sanitation

Country: Bangladesh

Budget: (Danida contribution): 200 million DKK

Starting date and duration: January 2012 – December 2016 (5 years)

13 Programme

14 Phase

15 Information Requirements 16 Indication of where the required information can be found in relevant project documents

17 Summary of information available

Identification Provide an assessment on opportunities and constraints for improving the gender equality situation in the given sector with respect to men and women‟s rights, access to resources and political influence based on the below listed elements in the gender equality analysis (see below). 1. National level

i. Int.& regional conventions and commitments)

ii. National strategies, policies, legislation, institutional set-up & capacity

iii. Non-gov. stakeholders

National level 1.i International & regional conventions 1.ii National strategies, policies and legislation:

1.i Bangladesh has signed and ratified the Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW) on the 6th November 1984. Bangladesh is yet to withdraw reservation on articles 2 and 16(1)c on the basis of religious sentiment. In accordance with CEDAW, Beijing Platform for Action and other international commitments have set specific goals which have been included in the Bangladesh National Policy on Advancement of Women (March 1997) and the National Action Plan for Women‟s Advancement in 1998.

1.ii

Equal rights for men and women are enshrined in the Constitution of Bangladesh. A „Women Development Policy” was adopted in February 2008. Yet equal inheritance

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National institutional set-up & capacity:

has remained an area of religious sentiment. The PRSP has included gender equality as a cross cutting issue. Government of Bangladesh also took some legal initiatives such as: creating Department of Women Affairs in 1984, enacting Family Courts Law in 1985, enacting Muslim Family Laws (Amendment) Ordinance in 1992, declaring compulsory primary education for women in 1992, declaring free schooling up to class-VIII in 1993, declaring food for education in 1993-94, providing stipends to girl students *from class-VIII to class-X in 1994-97, enacting the Special Tribunal Act in 1995, allowing women to contest in direct election for three reserved seats in the Union Parishad in 1997, enacting the Women and Children Repression Prevention Act in 2000, enacting the Acid Crime Prevention Act and the Acid Control Act in 2002. Acts on Domestic Violence and Sexual harassment are being prepared. Sector policies and strategies for water supply and sanitation, including the Sector Development Plan does include chapters on gender equality. The Ministry of Women and Children Affairs is the lead agency responsible for improving women‟s rights. The National Council for Women‟s Development (NCWD), headed by the Prime Minister, is mandated to provide guidance in the formulation of regulations to ensure women‟s legal rights including prevention of oppression against women. Women‟s development activities are monitored across the sectors by NCWD. To review and update existing laws towards addressing all forms of discrimination against women, a high-powered committee has been formed under the chair or the Minister of Law, Justice and Parliamentary Affairs. A number of legislations have been enacted and some existing laws are modified for

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1.iii Non-Gov. stakeholders

protection of women‟s interest and equal rights, including Women and Child Repression (Special) Act of 1995 and Prevention of Women and Children Repression Act 2000. An Inter-ministerial Committee for prevention of violence against women and children is headed by the Minister of Women and Children Affairs. This committee reviews the national VAW situation at intervals and monitors inter-agency activities. The central prevention of Cell on VAW under MOWCA monitors VAW at national level. District and Upazila level committees provide legal aid to women victims. Special courts have been set up in each district for quick disposal of cases. The water and sanitation sector, especially within government, is male dominated. There are only few women employed in the line ministry and DPHE, and often in lower positions. The NGOs have however many highly qualified women employed. 1.iii There are many well-reputed and leading NGOs which have women rights as their main area of interest. Some of the NGOs have been working on women‟s empowerment through micro-credit, awareness raising on women rights and building capacity to involve women as active leaders in local governance. Several of these e.g. provide services for victims of VAW such as legal assistance and run a shelter home. Several international NGOs such as Oxfam and Action Aid lead major awareness campaigns with local partners concerning women rights. Electronic media focuses programmes like Spot, Drama, Talk show, News, Debate, and Magazine for raising awareness in this regard. Print media also have capacity to promote women rights issues. That is why newspaper editors can allocate a page for

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2. Sectoral level

i. Policies, legislation, institutional set-up & capacity

ii. Indicators, sex-disaggregated data iii. Non-gov. stakeholders

2. Sectoral level 2.i Policies, legislation, institutional set-up 2.ii Indicators

women everyday. The Independent Women's Rights Commission is constituted to monitor compliance with equality provisions, and results of measures to eliminate discriminatory laws, policies and practices. So far, the civil society and non-government stakeholders have played an important role in gender related issues. The water and sanitation sector, NGOs like WaterAid, BRAC, NGO Forum and many others are active in promoting the role of women in the water and sanitation sector.

2.i A significant gender disparity persists in both income and human poverty, especially at the lower end of the income distribution. Overall Bangladesh's performance with regard to achieving gender equality and women's empowerment (MDG 4) remains mixed. There has been a narrowing of the gender gap in most social MDG indicators in general and in the education sector in particular, where, as a result of targeted government policies, female enrolment rates in primary and secondary schools exceeds those for males. However, in other areas such as economic and political participation and adult literacy, much still remains to be done to ensure the rights to survival, livelihood and participation. Gender equality is reflected in policies and strategies of the water and sanitation sector, including in the Sector Development Plan. The challenge is however to implement the good intentions. 2.ii

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2.iii Non-gov. stakeholders (CSOs)

Bangladesh Bureau of Statistics gathers data on some sectors such as general health, reproductive health, and education. However, in many other sectors no indicators have been established. 2.iii See above

Programme Committee

Assessment of major issues, opportunities and constraints Present opportunities and constraints for improving gender equality in the given sector based on the assessment made during identification/formulation. Indicate possible objectives to improve gender equality.

Issues, opportunities and constraints:

Issues, constraints and opportunities The legal and political framework is to a great extent in place, but major issues/constraints for addressing gender equality have been noted:

Issues such as Gender discrimination, domestic violence are not recognized by law.

Approach of implementers of law needs to be changed. They are to understand that violence against women is a 'public' matter as it halts the overall economic development of the country.

There is a lack of capacity among political decision makers and civil servants to implement policies and strategies.

Historically and culturally there is a deeply entrenched practice of discriminating against women, which makes it difficult to create lasting change, especially among the poor and marginalized.

The service-delivery mechanisms are not gender sensitized. Therefore there should be gender and development training for Government official specially police, administration and judiciary cadre.

However, there are also opportunities in the current political context with a female Prime Minister and a notable numbers of female ministers with significant ministries in the cabinet:

The government set up a task force which would take up proposals of appropriate legal amendments, within a

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Objectives to improve gender equality: Opportunities and constraints

stipulated time frame, to make laws consistent with the provisions of CEDAW and the Constitution.

Bangladesh needs to design schemes for compensation, insurance or safety nets for women workers.

There is immense opportunity to enhance the female leadership of local level governance and thus ensure gender sensitivity at lower tier

The proposed programme can promote the gender quality through involvement of women in decision making and management of water supply and sanitation facilities. Since the women most often has the responsibility for the family welfare and the children, women and children are often responsible for collection water and securing water for all domestic purposes. It is therefore very important that women decide where to place the hand pumps and that they are involved in maintenance and operation of the facilities. The components under the programme should encourage and work actively for employing more women in professional positions. Also more opportunities for women in terms of training and education shall be explored and promoted more systematically. Only very few women are employed in government positions, and seldom in senior positions. The water and sanitation sector, especially in government, is dominated by men. The NGOs are more progressive in terms of applying modern recruitment and personnel policies, which also allows women employment and career opportunities in the sector. There are however many well qualified women, who can add real value to the sector. This should be explored more

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actively. Many good guidelines and handbooks on how to promote gender equality in water and sanitation have been developed over the years. The programme should make full use of such materials. The programme should wherever possible appoint gender focal points and support their function and work.

Preparatory Studies

Steps taken to fill knowledge gaps identified in the identification/formulation phase.

Challenges and opportunities for supporting gender equality will be part of the formulation process.

The Danida Gender Equality Toolbox among other instruments will be used during formulation.

Formulation Inclusion of: 1. Objectives on gender equality 2. Strategies and modalities to reach

objectives on gender equality 3. Gender equality indicators 4. Monitoring and evaluation systems

sensitive to gender objectives

Gender equality aspects will be reflected in the programme document and component descriptions.

Gender issues are integrated into government policies and strategies. Gender concerns have been included in the formulation process together with poverty, human rights and disability concerns to ensure that the outcome of the programme benefits the entire community. The HYSAWA Fund actively promotes gender equality in the work with community groups. Gender indicators are included in the monitoring system.

Appraisal Assessment of steps taken to integrate gender equality, including objectives and indicators, in the programme based on recommendations made in the program’s preparatory documents.

Appraisal report

Will be included in TOR and reflected in appraisal of the programme.

Annual Reviews

Assessment of the extent to which progress has been achieved in fulfilling the gender objectives of the program. Recommendations for changes needed to

Review aide memoire

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fulfil stated gender objectives where applicable.

Programme Completion Report

Programme Completion Report

Evaluation

Evaluation Report

support to water supply and sanitation sector 2012-2015 .../media/bangladesh... · government of...

Documents