31426 Developing Private Sector Supply Chains to Deliver Rural Water Technology Water and Sanitation Program The Rope Pump: Private An international Sector Technology partnership to help the poor gain sustained access to improved Transfer From water supply and sanitation services Nicaragua to Ghana In the rural water supply and sanitation sector, goods and services (technology, training, repair services, financial and technical services, and facility management) are supplied to customersthroughasupplychain from manufacturers, importers, and service providers through a network of distributors. Payment flows in the opposite direction. BASIC SUPPLY CHAIN CUSTOMERS (COMMUNITIES, INDIVIDUALS) Goods and Services Payment (Handpumps, spare parts, repairs, DISTRIBUTORS credits) (RETAILERS, WHOLESALERS) Payment Goods and Services SUPPLIERS (MANUFACTURERS, SERVICE PROVIDERS) Users of Ghana with their new pump. TheSupplyChainsInitiativeis Summary a global initiative led by the The Nicaraguan rope pump has stimulated widespread interest throughout Central Water and Sanitation Program. America due to its low cost, efficiency, durability and low maintenance needs. The pump Collaborating partners include is based on a centuries-old design that was refined during the 1980s and 1990s. Suit- governmentdepartments,NGOs, able for use at either a community or family level, the pump operates as well as other, and bilateral and multilateral more expensive pumps such as the Afridev and India Mark II at groundwater depths of agencies.Theaimofthisinitiative up to 50 meters. The Swiss Agency for Development and Cooperation (SDC), seeing the is to develop practical tools that potential for `South-South' technology transfer of the pump, supported the principal Nica- enableandencouragetheprivate sector to provide goods and raguan manufacturer, Bombas De Mecate S.A. (BOMESA), in setting up a Technology services related to rural water Transfer Center between 1996 and 1998. Working with counterparts in the West African supply and sanitation. The country of Ghana, supported by the Water and Sanitation Program (WSP), BOMESA has initiative's first phase will focus successfully established the capacity to both produce and install the pump in that country. on increasing the understanding The experience has shown the great potential for such a transfer to bring a low-cost, of the dynamics of the private reliable pump to countries where handpumps can help meet the challenge of delivering sector supply chains for sustainable rural water supply. handpumps, spare parts, and sanitation equipment. 5 Background not carry out (see Supply Chains Series for use in irrigation. In 1988 the gov- No. 2: Afridev Handpumps in Pakistan). ernment showed interest in develop- The rope pump is a centuries-old ing the pump for drinking water pur- In rural areas in many technology, with records of designs poses. By 1990 a private firm, Bombas countries, the dispersed from ancient China and turn-of-the- De Mecate S.A. (BOMESA), had started nature of the population has made century France. It has been used suc- manufacturing a version of the handpumps the technology of choice cessfully for supplying both communi- pump. Production since that time has for potable water supply. Handpumps ties and individual families, but until increased dramatically, and BOMESA require lower upfront costs and less recently was typically suitable only for now manufactures over 150 pumps maintenance than piped networks. groundwater depths of less than 10 per month. Another private manu- Despite these natural advantages, meters. Whereas these older designs facturer, Taller Lopez-Erlach (TLE), throughout the 1960s and 1970s it suffered in the long-run from their lim- has a similar output, and there are became clear that `Northern' handpump ited applicability, the rope pump ­ now technologies were not always appli- found throughout Nicaragua and else- cable to a developing country frame- where in Central America ­ has over- work. Pump repair and maintenance come these initial design limitations. often proved problematic, as did the This achievement has made the rope availability of imported parts. In the pump comparable in functionality to early 1980s, the WSP Handpumps more expensive pumps. Project sought to address these issues by developing the concept of `Village Level Operation and Maintenance' The Rope Pump (VLOM) ­ a concept that was based on the involvement of the user commu- in Nicaragua nity in maintenance, and technology suited to this. The donor community The majority of Nicaragua's invested considerable resources in 4.5 million people live on Pvc-pipe with rope and piston developing `appropriate technology' lowlands bordering the Pacific. Surface pumps such as the India Mark II and water is typically polluted and there is Afridev pumps. However, these pumps widespread use of groundwater still pose problems of high cost and sources, whether these be community sometimes complex supply chains for or family wells. In the early 1980s, a Cross-section of parts; in addition, there are always Belgian technician developed a varia- rope pump some types of repair that the users can- tion on the classical rope pump design on a hand-dug well Guide box BOX 1: THE ROPE PUMP The principal elements of the rope pump are a pulley wheel, a rope with pistons attached, a pipe that enters the well, and at the base of this pipe, a guidance device for the rope. As the crankshaft is turned the rope drags the pistons up the pipe, trapping the water above them and ejecting it at the surface. The pump functions well at groundwater depths of up to 50 meters. Due to the simple and sturdy design of the pump, maintenance needs are very limited and can easily be handled by the community or local artisan. The rope itself is the most likely part to break down, and can either be easily and cheaply replaced locally or patched up without difficulty. Makeshift repairs do not significantly detract from pump performance. 2 at least a dozen other small-scale pump never exceeded $10 (and in fact participants in the market. THE HISTORY OF was less than $5 in all but one area It is estimated that over 7,500 THE ROPE PUMP surveyed). By comparison, the annual pumps were sold and installed in Nica- IN NICARAGUA maintenance cost for pumps in India ­ ragua in 1999, and that over half of predominantly India Mark IIs ­ ranged Nicaragua's rural population have Early 1980s: Belgian technician between $59 and $107. heard of the pump ­ a result appar- develops a variation on the clas- The upfront cost of the rope pump ently due to the extensive marketing sical rope pump design. is also significantly less than for Afridev that the pump has received by the 1988: The government develops or India Mark II pumps. The same study manufacturers. The marketing as pump for drinking water purposes found that in Nicaragua India Mark II well as the receptive attitude of the and post-hurricane demand pumps sold for $750 (with similar Nicaraguan government have been swells rapidly. prices for Afridev pumps) while the important factors in the pump's success. 1990: Bombas De Mecate S.A. equivalent rope pump sold for $110. In the early 1990s the Nicaraguan (BOMESA) commences manu- The imported pumps are harder to government added the locally pro- facturing, selling to low-income installandmaintainandrelyonimported duced rope pump to the list of pumps rural families. parts, whose delivery may be problem- selected for use in the rural water sec- 1995: Private sector demand has atic. Therefore, in Nicaragua for wells tor, even though at that time the tech- been augmented by interest from at a depth of less than 60 m, the rope nology was still under development. ENACAL and NGOs. IRC report on pump has been preferred to either This is an example of the government's Nicaraguan Rope Pump. imported pump. attitude which facilitated the emer- 1996-98: Technology Transfer In addition to its efficiency, low gence of the market for the rope pumps Division created within BOMESA ­ cost and reliability, the rope pump's despite the fact that the other pumps, produces transfer kit. simple technology means that, given all imported, received support from 1999: Production surpasses 7,500 a rudimentary in-country manufac- external agencies in all aspects of the pumps a year. Ghanaian authori- turing base, it can be both produced distribution and maintenance chains. ties and others investigate trans- domestically and repaired locally, features which contribute greatly Supply fer possibilities. to sustainability. Both BOMESA and TLE manufacture a variety of pumps for communal and and donors, and government organi- family use. TLE sells self-assembly kits zations. During the first couple of years The Rope Pump that are put together and sold by local of production, private clients made up workshops. Installation can be per- the majority of BOMESA's customers, in Ghana formed on request by either firm, but while subsequently demand from tends to be prohibitively expensive. As donors, NGOs and government has The Government of Ghana a result, BOMESA provides an instal- expanded rapidly. Private clients, how- launched the National lation manual and a short training ever, remain a significant source of rev- Community Water and Sanitation course to customers. TLE, on the other enue for both major manufacturers. Program in 1991 to accelerate access hand, maintains a network of install- of rural communities to sustainable ers throughout the country whom they Affordability water and sanitation services. The recommend to pump buyers. The buyer One of the keys to the rapid spread agency responsible ­ the Community pays the installer directly. of the rope pump in Nicaragua has Water and Sanitation Agency been its low cost allied to its reliability (CWSA) ­ works with the active par- Demand and low maintenance needs. A study ticipation of communities, NGOs and Demand for the pumps comes from performed for the WSP found that the the private sector. Communities three sources: rural families, NGOs annual maintenance cost of the rope receive government assistance in 3 improving their services, but are Ghana, initially supporting several fully installed. Representatives of the ultimately responsible for the opera- local manufacturers through guaran- workshops in Ghana have since visited tion and maintenance of their facili- teed purchase schemes and by under- Nicaragua to undergo further training ties, drawing upon the private sector taking outreach work with communi- in both technical and marketing issues. for goods and services. ties in order to install a number of trial The key to this technology transfer CWSA presently supports the instal- pumps. If successful, the project could has been its `South-South' nature. lation of four types of pumps, but finds be scaled up. The manufacturing of the Many of the characteristics of the rural its reliance on imports for both the pumps would be entirely privately areas and the local private sector are pumps and spare parts to be problem- financed, allowing a sustainable pro- similar in the two countries, and pros- atic. CWSA would thus like to promote duction, installation and repair base pects for establishing a financially self- the local manufacture of lower cost to develop. sustaining private sector base for the pumps in Ghana. With the financial Following the CWSA visit to Nicara- production, installation and repair of support of a World Bank-supported gua, the WSP agreed to fund a three- rope pumps in Ghana is good. The project, CWSA staff made a short visit phase transfer process. Under the first World Bank, WSP and CWSA have to Nicaragua in May of 1999 to inves- phase in 1999, BOMESA helped iden- been deeply involved during the early tigate the potential for transferring the tify several Ghanaian workshops suit- stages of the transfer. It is expected, rope pump to Ghana. Representatives able for the production of the rope however, that both demand and sup- met with the Technology Transfer Divi- pump. The local availability of materi- ply for rope pumps will flourish inde- sion of BOMESA, a division that has als required for manufacturing was pendently after this initial support. been set up with the help of both confirmed while some parts (such as ENACAL and SDC. They were suitably the ceramic guide box and the pistons) impressed by the efficiency, reliability, were supplied from Nicaragua during Technology low cost, and availability of rope pumps the initial phases of the transfer. The in Nicaragua and saw potential for capacity for producing these parts Transfer: The private sector development of the in-country was found to exist and will Potential pump in Ghana. ensure long-term local supply. Produc- CWSA wanted to nurture a local tion has now commenced in Ghana production base for the pumps within and several pumps have been success- Unlike many past examples of technology transfers from the `North', the transfer for the rope pump from Nicaragua to Ghana offers great promise. It is based on the idea that the private sector of different countries can come together in mutu- ally beneficial cooperation to manufac- ture and sell the rope pump. The part- nership offers great potential for the private sector in both countries ­ with cooperation, both sides can benefit from the demand for a low-cost, reli- able handpump. With respect to the specifics of the technology transfer and capacity for companies to launch this type of prod- uct, several significant factors are out- The production of the first pump in Sindigo, Savelugu District, Northern Region of Ghana. lined here. 4 potential for a successful transfer else- that demand should be high wherever THE TRANSFER where. Resistance from the govern- there are a large number of low- PROCESS ment or other agencies makes it very income rural households with no access difficult for sustainable private sector to piped distribution water. A tradition The transfer process from Nicara- provision to take root. of using family wells for drinking water gua to Ghana consisted of three is helpful, as this will facilitate rope phases. Supply pump adoption and lower the capital PhaseI(November15toNovem- A local supply chain needs to be cre- cost where existing wells can be used. ber 26, 1999): ated with demonstrable links to the Evidence also indicates that in the Technical assistance provided via community. It should also be short beginning the role of state extension correspondence and a two-week enough so that rope pump manufac- agencies, NGOs, and donors will be visit by BOMESA to the Ghanaian turing will form an important part of extremely important in mobilizing authorities to help with selection revenue and encourage long-term demand for the pump. BOMESA stresses of suitable manufacturers, confirm commitment by the supplier. Given the that a successful trial installation, with the availability of materials, sup- low technology nature of the pump, the product quality assured and followed by ply technology transfer manuals, appropriate pump manufacture mate- marketing and information campaigns, and help commence production. rials should be easily available in the is of great importance. Demand must country. Installation and repair require- prove sustainable once initial support Phase II (February 7 to Febru- ments also need consideration, with the is withdrawn. ary 10, 2000): Nicaraguan example providing a use- BOMESA hosted two Ghanaian ful model. Financing technicians in Nicaragua for fur- Due to the simplicity of the pump, a Financing and willingness to pay for ther training, dealing with the au- specific supply chain for spare parts is producers is critical to the success of tomatization of production, mar- not required. A majority of the parts the transfer. If manufacturers require keting techniques and financial can usually be found at the local gro- seed capital, governments or donors management. cer or hardware shop. could provide this. This should take Phase III (June 19 to June 30, place preferably in the initial phases 2000): Quality control only. In Ghana a guaranteed initial Installation of the trial-run of 100 Quality control of the raw materi- purchase provided the incentive to pumps in Ghana, further techni- als, manufacturing, and the installation develop initial production capacity. cal assistance from BOMESA cov- of the pump are key elements of suc- The need for independent cost ering quality control, branding and cess. A standard of quality should be recovery by the private operators can- steps to develop a durable rela- agreed to and applied by the principal not be overstated. If this is only tionship between the Nicaraguan producers in a country/region. The achieved through distortions in the and Ghanaian manufacturers. experience in Nicaragua has shown market, due to government or donor This phase is to be followed by an that inferior reproductions of the pump intervention, then production will evaluation of the pump's local by `artisans' that are cheaper and remain dependent upon such distortions. acceptance and performance in below standard can damage the repu- early 2001. tation of the pump (see Supply Chains Support to marketing Series No.1: The Treadle Pump: An Marketing and promotion are NGO Introduces a Low-cost Irrigation extremely important in establishing the Institutional climate Pump to Bangladesh). demand for the pump. To promote The favorable institutional climate sustainability, the manufacturer should was a key element in the successful Demand incorporate costs of marketing into the emergence of the pump in Nicaragua A WSP study Rural Water Supply in price of the pump. Careful branding and is important in determining the Nicaragua: The Rope Pump indicates is also important. However, a large 5 promotion campaign is a heavy cost have given it high social acceptance for the manufacturer and the industry in Nicaragua and elsewhere, while to assume alone. A recent study by its low-technology nature permits SDC, Poverty Alleviation as a Business, local manufacturing. Experience has Water and Sanitation Program recommends the launching of a sig- shown that it exhibits significant nificant promotion and marketing cam- potential for `direct' technology 1818 H Street NW paign for the pump. The study suggests transfer from company-to-company Washington DC 20433 USA that this could be done as a public and should be of great interest to investment and that such a campaign policy-makers and the private sec- Phone: +1 (202) 4739785 could be a good investment for donor tor alike. Several key issues remain Fax: +1 (202) 5223313, 5223228 water and sanitation programs. regarding the dissemination and E-mail: info@wsp.org transfer of this technology: Web site: http://www.wsp.org Conclusion · the role of external agencies, the government, and the private sector in supporting the process Community Water and The Nicaraguan rope pump · the types of arrangement between Sanitation Agency (CWSA) has significant potential. private companies from Nicaragua and Fidelity HSE. RING ROAD CENTRAL PMB, KIA, ACCRA, GHANA Its low cost, efficiency and reliability other companies in the world to facili- Tel: 233 21 779102 tate dissemination and assure a sus- Fax: 233 21 24 58 46 WILLINGNESS TO PAY tainable high quality production E-mail: cwsd@ghana.com · the extent of demand and potential Bombas de Mecate S.A. Willingness to pay by users is also for similar transfers in other countries. Technology Transfer Division important, and this has been found These and others issues will be dis- P.O. Box 3352 Managua, Nicaragua to exist where financing for them cussed in two upcoming events: Fax: 00-505-278 4045 E-mail: ropepump@ibw.com.ni is available. The national public 1) May 2001: Workshop in Nica- utility (ENACAL) in Nicaragua has ragua, organized by the Handpump Water and Sanitation Program François Münger implemented a pilot project with Technologies Network (HTN), SDC, E-mail: fmunger@worldbank.org CARE and SDC in which micro- and BOMESA in partnership with the credit is made available for the International Resource Center (IRC) Other publications in this series: 1. The Treadle Pump: An NGO Introduces purchase of family rope pumps. and the WSP. The workshop is de- a Low-cost Irrigation Pump to This pilot, carried out in a poorer signed to inform national rural wa- Bangladesh area of the country, has shown that ter supply policy-makers and inter- 2. Afridev Handpumps in Pakistan the population exhibits both a will- national decision-makers of the 3. Arsenic Mitigation in West Bengal and Bangladesh ingness and a capacity to repay the rope pump technology. Structured 4. The Growth of Private Sector loan for the pump in one year. actions to support the rope pump Participation in Rural Water Supply Demand for the pump for both technology transfer process will be and Sanitation in Bangladesh domestic and small-scale garden- also defined. The workshop should ing purposes exists, provided that increase the visibility of the rope February 2001 suitable credit is available. It is also pump across the international rural The Water and Sanitation Program is notable that the pump is not water supply sector. an international partnership to help the regarded as an inferior good ­ a 2) End of 2001: Workshop in poor gain sustained access to improved water supply and sanitation services. "product for the poor". Many Ghana, led by CWSA, private sec- The Program's funding partners are the middle-class families also use it, tor investors and others with the sup- Governments of Australia, Belgium, and ownership comes with no port of the WSP. Opportunities for Canada, Denmark, Germany, Italy, social stigma. stimulating market demand through- Japan, Luxembourg, the Netherlands, out West Africa will be discussed. Norway, Sweden, Switzerland, and the United Kingdom; the United Nations Development Programme, and The World Bank. 6 Created by Write Media E-mail: writemedia@vsnl.com Printed at PS Press Services Pvt Ltd