Service Delivery Assessment April 2015 100895 Water Supply and Sanitation in Timor-Leste Turning Finance into Services for the Future This report is the product of extensive collaboration and information sharing between many government agencies, and Timor-Leste organizations. The National Directorate of Basic Sanitation, National Directorate for Water, Ministry of Health, Australian Government Department of Foreign Affairs and Trade (formerly AusAID) BESIK Water Supply and Sanitation Program, and Asian Development Bank have been key partners, together with the Water and Sanitation Program, in analyz- ing the sector. The authors acknowledge the valuable contributions made by the World Bank Country Management Unit, WaterAid, UNICEF, Japan International Cooperation Agency, Cruz Vermelha de Timor-Leste (Red Cross), and National De- velopment Agency. The Task Team Leader for the Service Delivery Assessment (SDA) in East Asia and the Pacific is Susanna Smets. The fol- lowing World Bank staff and consultants have contributed to the service delivery assessment process and report: Isabel Blackett, Penny Dutton, Sandra Giltner, Arlindo Marcal, Rosalyn Fernandes, Joao dos Martires, Maria Madeira, and Almud Weitz. The report was reviewed by Alex Grumbley, Country Representative, WaterAid Timor-Leste and Keryn Clark, Program Director, BESIK Water Supply and Sanitation Program Timor-Leste. The report was peer reviewed by the following World Bank staff and sector colleagues: Michel Kerf, Sector Manager; Shyam KC, Disaster Risk Management Specialist; Lilian Pena Pereira Weiss, Senior Water and Sanitation Specialist; Ansye Sopacua, Sanitation Advisor, BESIK Water Supply and Sanitation Program; and Allison Woodruff, Urban Development Specialist, Asian Development Bank. Thanks go to Luis Constantino, Timor-Leste Country Manager; Towfiqua Hoque, Senior Infrastructure Specialist; and Alexander Jett, Research Analyst for providing comments to the report. The SDA was carried out under the guidance of the World Bank’s Wa­ ter and Sanitation Program and local partners. This re- gional work, implemented through a country-led process, draws on the experience of water and sanitation SDAs conduct­ ed in more than 40 countries in Africa, Latin America, and South Asia. An SDA analysis has three main components: a review of past water and sanitation access, a costing model to as­ sess the ad- equacy of future investments, and a scorecard that allows diagnosis of bottlenecks along the service de­ livery pathways. SDA’s contribution is to answer not only whether past trends and future finance are sufficient to meet sector targets for infrastructure and hardware but also what specific issues need to be addressed to ensure that fi­ nance is effectively turned into accelerated and sustainable water supply and sanitation service delivery. The Water and Sanitation Program is a multi-donor partnership, part of the World Bank Group’s Water Global Practice, sup- porting poor people in obtaining affordable, safe, and sustainable access to water and sanitation services. WSP’s donors include Australia, Austria, Denmark, Finland, France, the Bill & Melinda Gates Foundation, Luxembourg, Netherlands, Nor- way, Sweden, Switzerland, United Kingdom, United States, and the World Bank. WSP reports are published to communicate the results of WSP’s work to the development community. Some sources cited may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed herein are entirely those of the author and should not be attributed to the World Bank or its affiliated organizations, or to members of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The bound- aries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to world- bankwater@worldbank.org. WSP encourages the dissemination of its work and will normally grant permission promptly. For more information, please visit www.wsp.org. © 2015 International Bank for Reconstruction and Development/The World Bank Water Supply and Sanitation in Timor-Leste Turning Finance into Services for the Future Strategic Overview In the Democratic Republic of Timor-Leste, remarkable subsector targets, and relatively clear institutional roles. progress in water supply and sanitation coverage in the last Structures and processes are in place for ministerial bud- 10 years means that the country may meet Millennium De- get preparation, however budgets for urban and rural water velopment Goal targets for overall water supply coverage supply and urban sanitation are unpredictable and fluctuate but is unlikely to do so for sanitation. These targets are for considerably from year to year, and are almost non-existent 78% of the population to have access to improved drinking for rural sanitation. For ‘developing’ services, which relate to water sources, and for 60% to have access to improved expenditure of funds, systems for allocating them equitably, sanitation facilities. The latest figures from the Joint Moni- and securing value-for-money outputs, Timor-Leste needs toring Programme (JMP) of WHO and UNICEF indicate that to improve in the areas of prioritizing budget allocation, in 2011 access was 69% for water and 39% for sanitation. budget execution for major capital works, and reporting on For urban areas these targets have been met or exceeded, expenditure as well as reducing inequality and improving lo- but for rural areas where close to 70% of the country’s pop- cal participation. At the end of the service delivery pathway, ulation lives—many in small remote communities—these Timor-Leste’s scores show poor performance in sustainabil- targets remain out of reach, particularly for sanitation. Rural ity for all subsectors, especially in the area of maintenance. residents account for 92% of the 358,000 people nationally that do not have access to improved water supply, while ru- The key bottlenecks that currently impede progress in ral residents make up 86% of the 704,000 people nationally Timor-Leste’s water and sanitation sector mainly relate to without access to an improved toilet.1 Timor-Leste also has institutional capacity and absence of technical support ser- one of the highest population growth rates in the region at vices, accountability and incentives for sustaining services. 2.4% per annum. If Timor-Leste is to meet its Strategic De- There is a lack of funding to pay for water supply operations velopment Plan vision for 2030—which aims for all citizens and maintenance, including no user fees charged in the ur- to have access to clean water and improved sanitation— ban sector and no clear strategy to effectively support op- then current efforts in sanitation, particularly in rural areas, erations and maintenance in the rural sector. With improved will need to be more intensively supported and scaled up. operations and maintenance, water supply systems could With greater attention to maintenance of rural water sup- last longer, save on replacement costs, and be a more cost ply schemes, Timor-Leste can extend scheme life span and effective investment. Sanitation goods and services, water achieve the nation’s rural water supply targets. supply spare parts and repair services are difficult to obtain in rural areas. District level planning is not coordinated with The analysis of the service delivery pathway for water and all stakeholders. Support and communication from the na- sanitation shows that Timor-Leste performs adequately in tional level to district offices is erratic. Part of this problem the ‘enabling’ phase of service delivery across all subsec- is due to the budget, and administrative constraints and the tors due to the presence of policy guidelines, national and lack of autonomy and incentives the National Directorate 1 Calculated by authors from JMP coverage and population data iv Water Supply and Sanitation in Timor Leste for Water Services (DNSA) has as a government depart- million needed to reach the 2020 targets. There is little firm ment to respond to district operational needs, as well as evidence of intentions for capital spending on sanitation from the current lack of sanitation staff at district level. Both the either government or development partners. This is because water supply and sanitation sector have a shortage of hu- both urban and rural sanitation in Timor-Leste are overwhelm- man resources, especially skilled technical staff. Increased ingly on-site technologies and spending is expected by house- human resources such as community outreach workers are holds, rather than government and development partners. also needed to carry out sanitation promotion activities to motivate households to self-invest in improved sanitation For water supply, the estimated necessary capital expen- in rural areas. ditures amount to approximately 2.4% of the 2013 national budget of US$1.6 billion. Estimated operations and mainte- To achieve government-defined access targets to 2020 for nance costs are 0.4% of the 2013 budget. In the years 2010- water supply (87%) and sanitation (76%), an average of 2012, estimated recent public capital expenditures on water US$39.4 million each year in capital expenditures on wa- and sanitation in Timor-Leste (including donor expenditures) ter supply, and some US$16.4 million per year on capital averaged 1.1% of the budget and 1.5% of GDP. expenditures for sanitation will be needed.2 These figures include estimated hardware expenditures by households, Failure to meet financing gaps and address institutional and which, especially for rural sanitation, are expected to self- sustainability bottlenecks will result in Timor-Leste falling invest. In addition an average of US$7 million per year short of meeting its water and sanitation targets. The wider (US$5 million for water supply and US$2 million for sanita- implications are that the country’s progress on economic, tion) will be needed to finance operation and maintenance health and social development will be hampered. of rural and urban infrastructure. Critical public funding is necessary for sanitation “software”, such as human and This Service Delivery Assessment (SDA) takes a long-term operational resources for behavior change communication view of Timor-Leste’s ambitions. It has been conducted as campaigns, monitoring and regulation, and private sector a multi-stakeholder process under the leadership of the Di- development to elicit households to invest in their facilities. rectorate General for Water and Sanitation within the Min- For rural sanitation alone, it is estimated that US$976,000 istry of Public Works. Through a facilitated process, stake- per year is needed for such software spending. holders have agreed on intermediate targets, and identified bottlenecks in water and sanitation service delivery that Estimated annual capital expenditure planned for the next need to be addressed. Agreed priority actions to tackle three years (2013-15) is US$29.4 million for water supply of Timor-Leste’s water supply and sanitation challenges have which about 20% is from development partners. This is an been identified to ensure finance is effectively turned into annual shortfall of US$10 million compared to the US$39.4 services. These priority actions are: 2 Authors’ calculations based on SDA financial model Service Delivery Assessment v Sector wide priority actions Institutional 1. Increase autonomy, incentives and accountability of DNSA for providing urban water supply services. 2. Clarify asset ownership and maintenance roles in rural water supply schemes. 3. Strengthen service delivery at district and subdistrict levels by increasing human resources, technical capacity, and im- proving coordination between programs. 4. Continue dialogue on private sector involvement in service provision and review options appropriate for the stage of sec- tor development to tackle weak capacities in service delivery. Finance 5. Increase capital works budget execution by improving capacities in public procurement, tendering, and contract man- agement processes and documentation. 6 Develop costing guidelines to ensure that future project plans for capital investment (hardware) are accompanied by budgets for the required level of technical assistance (software), especially for rural water supply and rural sanitation. 7. Improve sector financial coordination by annually reporting in one consolidated place, all sources of capital and non- capital funds expended on WASH. Monitoring 8. Improve data quality and analytical use of the water, sanitation and hygiene information system (SIBS). 9. Improve performance monitoring, and public disclosure for urban water supply to increase accountability. 10. Synchronize monitoring data and definitions from different sources into robust national monitoring systems. Priority Actions for Rural Water Supply 1. Establish clear policies and define government and community responsibilities for O&M of rural water systems. 2. Ensure budget is available for technical support systems for O&M services of community-managed schemes. 3. Increase functionality of water supply schemes by a) improving the spare parts supply chain, b) increasing numbers and skills of technical staff in districts, and c) professionalizing management of rural water supply through contracting of NGOs and the private sector. 4. Make district budgets transparent to show water supply funding from DNSA, decentralized projects, development part- ners and NGOs. Priority Actions for Urban Water Supply 1. Develop a roadmap for urban water sector reform and regulatory framework that will increase the autonomy of DNSA/ service providers, introduce incentives to drive performance improvements and establish separate regulatory functions. 2. Roll out wider tariff reform to fund operations and maintenance and increase sustainability of water systems. 3. Reinforce coordination between agencies involved in local planning, urbanization, water supply, and drainage including district coordination. 4. Improve water quality of service provision, including testing regimes and disclosure. vi Water Supply and Sanitation in Timor Leste Priority Actions for Rural Sanitation and Hygiene 1. Increase budget allocation for rural sanitation promotion and marketing (“software”) to implement the National Basic Sanitation Policy. 2. Increase human resources and build capacity of community health workers, sanitation promoters, local volunteers, to achieve open defecation free sucos. 3. Strengthen sanitation markets and ensure supplies of sanitation materials and services in all 13 districts. 4. Strengthen the targeting of sanitation subsidies as part of the vulnerable households program and ensure an appropriate delivery mechanism that does not undermine a market-based approach. 5. Develop integrated national and district plans for increasing sanitation access; monitor and evaluate these plans. Priority Actions for Urban Sanitation and Hygiene 1. Implement Dili Sanitation and Drainage Master Plan stage 2. 2. Prepare Sanitation Master Plans for the remaining 12 district capital towns (excluding Dili). 3. Improve septage collection and maintenance of septage facilities. 4. Increase the human resources capacity for sanitation in each district capital town (reflecting population size and sanita- tion needs in district towns). Service Delivery Assessment vii Table of Contents Strategic Overview ..............................................................................................................................................................iv Table of Contents .............................................................................................................................................................. viii Abbreviations and Acronyms...............................................................................................................................................ix 1. Introduction................................................................................................................................................................... 1 2. Sector Overview: Coverage and Finance Trends.......................................................................................................... 4 3. Reform Context........................................................................................................................................................... 13 4. Institutional Framework............................................................................................................................................... 17 5. Financing and Its Implementation............................................................................................................................... 23 6. Sector Monitoring and Evaluation............................................................................................................................... 26 7. Subsector: Rural Water Supply................................................................................................................................... 29 8. Subsector: Urban Water Supply................................................................................................................................. 33 9. Subsector: Rural Sanitation and Hygiene................................................................................................................... 37 10. Subsector: Urban Sanitation and Hygiene.................................................................................................................. 41 11. Conclusion.................................................................................................................................................................. 45 Annex 1: Scorecard and Evidence for Scoring.................................................................................................................. 49 Annex 2: Assumptions and Inputs for Financial Model...................................................................................................... 67 viii Water Supply and Sanitation in Timor Leste Abbreviations and Acronyms ADB Asian Development Bank ADN National Development Agency Aldeia ‘Sub-village’ or hamlet. There are 2,225 aldeias in Timor-Leste. AusAID Former Australian Agency for International Development, now Department of Foreign Affairs and Trade (DFAT) BESIK Be’e Saneamentu no Ijiene iha Komunidade = AusAID Rural Water Supply and Sanitation Project CAP Community Action Planning CLTS Community Led Total Sanitation DNSB Direcção Nacional de Saneamento Básico = National Directorate for Basic Sanitation DNSA Direcção Nacional de Serviços de Água = National Directorate for Water GDP Gross Domestic Product GoTL Government of Timor-Leste IMF International Monetary Fund JICA Japan International Cooperation Assistance JMP Joint Monitoring Programme (for water and sanitation by UNICEF and WHO) MCK Mandi, Cuci, Kakus – [Indonesian] public facility combining bathing, washing, and toilet facilities MDG Millennium Development Goal NGO Non-Government Organization O&M Operations & Maintenance ODF Open Defecation Free PAKSI Planu Asaun Komunidade ba Saneamentu no Ijiene = Community Action Plan for Sanitation and Hygiene PDID Programa Dezenvolvimentu Integradu Distrital = Integrated District Development Program PDD Programa Dezenvolvimentu Desentralizadu = Decentralized Development Program PDL Programa Dezenvolvimentu Lokál = Local Development Program Sanitation Sanitation refers to the provision of facilities and services for the safe disposal of human urine and faeces. It excludes solid waste collection and drainage. SAS Serviço de Água e Saneamento =Water & Sanitation Service (District level) SDA Service Delivery Assessment SIBS Sistema Informasaun Bee no Saneamentu = water and sanitation information system SISCa Servisu Integradu da Saúde Komunitária = Integrated Community Health Services Suco Lowest level administrative unit equal to town or village. There are 442 in Timor-Leste UNICEF United Nations Children’s Fund VIP Ventilated Improved Pit latrine WASH Water, Sanitation, and Hygiene WHO World Health Organization WSP World Bank - Water and Sanitation Program Service Delivery Assessment ix 1. Introduction Water and sanitation Service Delivery Assessments (SDAs) The scorecard looks at nine building blocks of the service are taking place in seven countries in East Asia and the Pacif- delivery pathway, which are grouped in three categories: ic region under the guidance of the World Bank’s Water and three building blocks or functions that refer to enabling Sanitation Program (WSP) and local partners. This regional conditions for putting services in place (policy develop- work, implemented through a country-led process, draws on ment, planning new undertakings, budgeting processes); experience of water and sanitation SDAs conducted in more three functions that relate to developing the service (ex- than 40 countries in Africa, Latin America and South Asia.3 penditure of funds, equity in the use of these funds, service output); and three functions that relate to sustaining these The SDA analysis has three main components: a review of services (facility maintenance, expansion of infrastructure, past water and sanitation coverage, a costing model to as- use of the service). Each building block is assessed by sess the adequacy of future investments, and a scorecard stakeholders against usually three specific indicators which that allows diagnosis of bottlenecks along the service de- are scored from 0 to 1, and then aggregated to provide a livery pathway. These components are not directly linked to score for that building block of between 0 and 3. (Refer An- each other, but in combination they produce a picture of the nex 1 for detailed scoring and criteria). The scorecard uses country’s WASH status and critical issues in the sector. The a simple color code to indicate: building blocks that are SDA’s contribution is to answer not only whether past trends largely in place, acting as a driver for service delivery (score and future finance are sufficient to meet sector targets for in- >2, green); building blocks that are a drag on service deliv- frastructure and hardware, but what specific issues or bottle- ery and require attention (score 1–2, yellow); and building necks need to be addressed to ensure finance is effectively blocks that are inadequate, constituting a barrier to service turned into accelerated and sustainable water supply and delivery and a priority for reform (score <1, red). sanitation service delivery. Bottlenecks can occur throughout the service delivery pathway—all the institutions, processes The SDA analysis relies on an intensive, facilitated consul- and actors that translate sector funding into sustainable ser- tation process, with government ownership and self-as- vices. Where the pathway is well developed, sector funding sessment at its core. The assessment is undertaken for four should turn into services at the estimated unit costs. Where subsectors: rural water, rural sanitation, urban water and the pathway is not well developed, the capital investment re- urban sanitation. Through the SDA process, an evidence- quirements to achieve targets may be gross underestimates based participatory analysis has been conducted to better as additional finance may be needed to “unblock” the service understand what undermines progress in water supply and delivery bottlenecks such as developing institutional capac- sanitation and what the Government of Timor-Leste can do ity and improving sustainability. to accelerate progress to achieve its 2020 targets. 3 For example refer to: Africa CSO synthesis report: http://www.wsp.org/sites/wsp.org/files/publications/CSO-Synthesis-Report.pdf Service Delivery Assessment 1 A series of meetings and sanitation and water supply sub- The analysis aims to help Timor-Leste assess its own ser- sector workshops with core stakeholders during 2013, to- vice delivery pathway for turning finance into water supply gether with reviews of reports and budgets, has provided and sanitation services in each of the four subsectors. Spe- the information for this SDA. Sources of evidence are pro- cific priority actions have been identified through consulta- vided in footnotes, references section and in Annex 1. The tion with government and other sector stakeholders. SDA process took place in 2012/2013 with data collection between September 2012 and September 2013. The report This report has been produced by WSP and validated by the reflects the situation at the time and may not include the Government of Timor-Leste and other stakeholders. latest data and information. Figure 1.1 outlines the timeline of the SDA process in Timor-Leste. Figure 1.1 Timeline of SDA in Timor Leste September 2012 Introduction of SDA to stakeholders October 2012 Financial and background data November 2012 Data collection, stakeholder meetings February 2013 Data analysis, scorecard assessment March 2013 Stakeholder workshops on water and sanitation scorecards May 2013 Data analysis and gap identification June 2013 Stakeholder workshops to present preliminary findings, identify subsector priority actions July 2013 Consolidation and checking of data August 2013 Financial modelling September 2013 Stakeholder workshop to finalize priority actions; draft preliminary report October 2013 Internal review of preliminary report December 2013 Draft report for review by stakeholders and peer reviewers January 2014 World Bank peer review meeting March 2014 Final SDA Report 2 Water Supply and Sanitation in Timor Leste Figure 1.2 Map of Timor Leste 125o 126o INDONESIA 127o Wetar Island 8o TIMOR-LES TE 8o International boundary Lirah Kisar Island Island District boundary National capital Atauro District capital Island Strait of Wetar Biquele Town, village Cape Cape Maumeta Lutra Aimoco Airport Vali Cape Meno Road Berau Usso Lautem Com Cape Issi Tutuala Maina 1 Mehara 0 10 20 30 km Cape Bondura Cape Cutcha Matolana Baucau Laivai Jaco 0 5 10 15 20 mi Run Baucau Fuiloro Island Comoro Metinaro Manatuto Bucoli Laga Lospalos Laleia Vemase BAUCAU Atelari Luro Liquica Dili DILI Laclo Cai Rui Quelicai LAUTEM Cape Bazar Baguia Corimbala Maubara Tete Railaco Aba Loré MANATUTO Venilale LIQUICA Gleno AILEU Iliomar Cape Punilala Lissapat Ossu Uatucarbau De Loré Ermera Aileu Cape Laclubar Lacluta VIQUEQUE Watulari Cape Bauc Atabae Hatolia Ima Letefoho Dilor Cape Cape Aidabaleten Turiscai Barique Viqueque Caissae Fotocapo BOBONARO ERMERA Maubisse Soibada Luli Moleana Hato Builico Beaco Batugade Atsabe Maliana MANUFAHI Fatuberliu Natarbora Cape 9o Balibo Ainaro Deilubun 9o Atapupu Bobonaro Same Alas Atambua AINARO 127o Mape Hotu-Udo Lolotoe Zumalai Cape Timor Sea o 124 00' 124o 30' Fatolulic Metidot Fatomean COVA Cape Halilulik LIMA Cacetec o 9 00' 9o 00' Fohorem Savu Sea INDONESIA Suai Tilomar Cape Pante Kotafun Suai Macasar Cape Tafara Wini OECUSSE Nitibe Citrana Oe Silo Kefamenanu o 9 30' INDONESIA Passabe 9o 30' The boundaries and names shown and the designations o 124 00' o 124 30' used on this map do not imply official endorsement or 125 o acceptance by the United Nations. 126 o Map No. 4111 Rev. 11 UNITED NATIONS Department of Field Support November 2011 (Colour) Cartographic Section Service Delivery Assessment 3 2. Sector Overview: Coverage and Finance Trends Context Timor-Leste is the second smallest country by population (GDP) growing by an average of 11.9% per year since 2007. in Southeast Asia with 1.066 million people in 2010.4 Most In 2012 Timor-Leste’s GDP was estimated to be US$4.173 people—750,000 or 70% of the population—live in rural ar- billion, with GDP per capita of approximately US$3,730.8 eas, and 316,000 people (30%) live in urban areas. Growth has been underpinned by public spending, how- ever inflation is persistently high at 11%. To improve social Timor-Leste is a post-conflict country, emerging from a 24- development the country has introduced a wide range of year history of occupation and violent struggle for indepen- social safety net programs and rural labor employment op- dence, as well as internal conflicts between 1999 and 2006.5 portunities. Human development indicators have improved, When the Indonesian army withdrew from Timor-Leste in particularly in the health area, although childhood nutrition 1999, as much as 70% of the country’s infrastructure was status remains severe. At 58%, Timor-Leste has one of the destroyed.6 Since gaining independence in 2002, Timor- highest incidences in the world of stunting of children un- Leste has made strides in restoring stability and rebuild- der age, with 33% severely stunted. Almost half (45%) of ing the country. This progress is due to a conscious effort children under age 5 are underweight, and 19% are acutely by government to make the provision, and restoration, of malnourished or wasted.9 Poverty incidence remains high at key public services and infrastructure a priority for its peo- 41% in 2009.10 Rural poverty is higher than urban poverty ple, together with complementary initiatives from NGOs.7 owing to low agricultural productivity and limited access to Since 2006 Timor-Leste has experienced strong economic roads and markets. Regional poverty disparities also exist, growth, with the country’s real Gross Domestic Product with poverty being worst in the central region. 4 National Statistics Directorate and United Nations Population Fund (2011) Population and Housing Census 2010, Dili: Government of Timor-Leste. Only Brunei has a smaller population with 434,000 people. 5 Timor-Leste is a fragile state, and member and chair of the “g7+” - a voluntary association of countries that are or have been affected by conflict and are now in transition to the next stage of development..Refer: http://www.g7plus.org/ 6 As much as 70% of Timor-Leste’s infrastructure—houses, schools, shops, offices, irrigation systems, water supplies, and nearly 100% of the country’s electrical grid—were destroyed during the retaliatory withdrawal of the Indonesian military in late 1999. For water supply this included pumping stations, transmission pipes, valves and tanks. Numerous sources describe the level of destruction, including: (1) The World Bank, Timor-Leste Overview, viewed 29 August 2013, (2) Government of Timor-Leste (2011) Strategic Development Plan 2011-2030. p.81 (3) ICRC Update No. 99/04 on ICRC activities in Indonesia/East Timor 11-10-1999 Operational Update. Available at: http://www.icrc.org/eng/resources/ documents/misc/57jq22.htm [viewed 16/4/2013]. (4) eye witness accounts: ABC 7:30 Report, Transcript 27/9/1999, Indonesia’s scorched earth policy levels East Timor. Available at: http://www.abc.net.au/7.30/stories/s55114.htm. 7 World Bank (2009) Community Based Development and Infrastructure in Timor-Leste: Past Experiences & Future Opportunities. AusAID – East Asia and Pacific Infrastructure for Growth Trust Fund [pdf] Available at: http://documents.worldbank.org/curated/en/2012/01/16414897/timor-leste-comunity-based- development-infrastructure-timor-leste-past-experiences-future-opportunities 8 International Monetary Fund, World Economic Outlook Database, April 2013, viewed 2 September 2013, ; 9 National Statistics Directorate , Ministry of Finance, and ICF Macro. (2010). Timor-Leste Demographic and Health Survey 2009-10. Dili, Timor-Leste: NSD and ICF Macro, UNICEF (2013) Improving Child Nutrition-The achievable imperative for global progress. New York:UNICEF 10 International Monetary Fund, (2012) IMF Country Report No. 12/24 Democratic Republic of Timor-Leste: 2011 Article IV Consultation—Staff Report; Informational Annex; Debt Sustainability Analysis; and Public Information Notice. Washington: IMF 4 Water Supply and Sanitation in Timor Leste Coverage: Assessing Past Progress access has increased, rural improved sanitation access has dropped from 32% in 2000 to 27% in 2011. Importantly, Progress has been made in increasing access to improved during the same period, rural open defecation reduced from water supply, and for sanitation, reducing open defeca- 55% to 37%, indicating an uptake in use of basic sanita- tion according to the Joint Monitoring Programme (JMP) tion facilities in rural areas, but not use of a toilet which is of WHO and UNICEF.11 It is difficult to accurately assess considered “improved” and is more durable. A further 9% coverage rates during the Indonesian occupation.12 The of households share improved toilets (generally shared be- JMP estimates a gain in access to improved water supply tween two households from the same family) however these of 15% between 2000 and 2011 (from 54% to 69% access are not counted in the JMP estimates.15 No sewerage sys- nationally).13 These gains are impressive given the fragility tem exists in Timor-Leste’s urban areas yet, with the most of the country and the high demand for many basic ser- common types of improved toilets being pit latrines with vices and infrastructure immediately after Independence. slabs, pour flush to a pit or septic tank, and Ventilated Im- Piped water systems have contributed to these gains far proved Pit (VIP) latrines. Improved toilets in rural areas are more in rural areas than in urban areas. Access to im- typically pit latrines with slabs and VIP latrines. proved water supply is 93% in urban areas, yet fewer than half of these households (45%) have a piped water con- Population growth hampers increased access to improved nection to the yard or house, and for those that do, service sanitation. Timor-Leste has one of the highest population quality is often poor. For rural areas, the most common growth rates in the Asia-Pacific region, with an annual types of improved water source are public tap/standpipe, growth rate of 2.41% between 2000 and 2010.16 Between and household yard connections—typically sourced from 1995 and 2011 the population grew by 300,000 people yet gravity fed piped systems, protected well or spring, and only 135,000 people gained access to improved sanitation boreholes.14 during the period. In 2011, 167,000 more people were with- out access to improved sanitation than in 2000, indicating Unlike water supply, national access to sanitation has barely that the absolute number of people without access to im- increased. The JMP estimated national access to improved proved sanitation is increasing. Access to improved water sanitation at 37% in 1995, 37% in 2000, and just 39% in supply has kept ahead of population growth with 344,000 2011 (see Figure 2.1). Although urban improved sanitation people gaining access during the period.17 11 According to the JMP, an improved drinking-water source is one that, by the nature of its construction, adequately protects the source from outside contamination, particularly fecal matter eg. piped water into dwelling, piped water to yard/plot, public tap or standpipe, tubewell or borehole, protected dug well, protected spring, rainwater. An improved sanitation facility is one that hygienically separates human excreta from human contact eg. flush toilet, piped sewer system, septic tank, flush/pour flush to pit latrine, ventilated improved pit latrine (VIP), pit latrine with slab, composting toilet. 12 Prior to Indonesian withdrawal, AusAID estimated national access rates to improved water supply were around 66% in 1999. Refer: Commonwealth of Australia, December 2000. East Timor – Final Report of the Senate Foreign Affairs, Defence and Trade References Committee, p.17 [pdf] Canberra: Commonwealth of Australia. Available at: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=fadt_ctte/completed_ inquiries/1999-02/east_timor/report/index.htm. 13 Based on the 2010 Census figures of 66% 14 National Statistics Directorate and United Nations Population Fund (2011) Population and Housing Census 2010, Dili: Government of Timor-Leste. 15 Sharing of toilets is common in Timor-Leste. The 2010 Census indicates about 25% of households using any type of toilet are sharing. 16 National Statistics Directorate and United Nations Population Fund Population and Housing Census of Timor-Leste, 2010. Government of Timor-Leste Vol 2: Population Distribution by Administrative areas p. xxi. Available at http://www.mof.gov.tl/wp-content/uploads/2011/06/Publication-2-English-Web.pdf 17 Authors’ calculations using JMP coverage and population data Service Delivery Assessment 5 Figure 2.1 Timor-Leste: Progress in water supply and sanitation 1995 – 2020 (estimated) Water Supply Sanitation Improved water supply coverage Improved sanitation coverage 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 1995 2000 2005 2010 2015 2020 1995 2000 2005 2010 2015 2020 Government estimate Government target Government estimates Government target JMP Estimates MDG target JMP improved estimates MDG target JMP Piped Source: JMP (2013); MOH (2012); and government targets used for SDA costing analysis. Access: Targets and Future Trends urban areas, nor the recent efforts in the rural sector, par- ticularly in rural sanitation, since the last JMP update in The national MDG target for access to improved water sup- 2011. These are discussed more fully in the chapters 7, 8, ply is 78% by 2015, with sub-targets set by national au- 9 and 10 of this report. thorities of 75% for rural and 81% for urban water supply. The country’s national MDG target for access to improved The National Strategic Development Plan 2011-2030 is sanitation is 60%, with sub-targets of 55% for rural areas clear about the need for universal access to clean water and 64% for urban areas. (see Table 2.1) and sanitation for reasons of public health, employment, economic development, and management of water re- Timor-Leste is likely to meet its overall MDG target for sources. The end goal of the Strategic Development Plan is water supply but is unlikely to do so for sanitation. The that by 2030 all citizens in Timor-Leste have access to clean country has already surpassed its sub-target for urban water and improved sanitation. Intermediate targets to 2020 water supply and for urban sanitation. Rural water supply are not all articulated in the Strategic Development Plan. appears to be on track to meet its sub-target as long as Hence to estimate sector financial requirements by 2020, sufficient operations and maintenance (O&M) is provided targets have been agreed in consultation with stakehold- to keep schemes working. Rural sanitation is lagging and ers, which are aligned with the Ministry of Public Works’ is unlikely to meet the MDG sub-target. However these Five-Year Water and Sanitation Action Plans (2013-2017) figures present a simplistic view of progress which does and the targets articulated in the draft Strategic Sanitation not take into account the quality of services delivered in Plan (2020). These are presented in table 2.1. 18 Government of Timor-Leste and UNDP (2009) The Millennium Development Goals, Timor-Leste. Available at: www.undp.org 6 Water Supply and Sanitation in Timor Leste Table 2.1 Timor-Leste: Water supply and sanitation targets used for SDA estimates Sub-sector JMP 2011 data MDG target 2015 Target used in SDA 2020 Source of 2020 target Proportion of Population with access to an improved water source Calculated from Strategic Development Plan targets for 2020; weighted National 69% 78% 87% for assumed rural population of 67% of total population and urban population is 33% Ministry of Public Works’ Water Action Plan 2013-2017 target for 2020 Rural 60% 75% 80% (refers to access to potable, secure and constant supply of water). Ministry of Public Works’ Water Action Plan 2013-2017 (refers to access Urban 93% 81% 100% to 24-hour supply in Dili and district centers) Proportion of Population with access to improved sanitation Calculated from weighted average of rural target for 2020 and urban National 39% 60% 76% target for 2020; assuming rural population is 67% of total population and urban population is 33% 2020 target calculated from the assumed 2030 target from Draft Rural 27% 55% 68% Strategic Sanitation Plan. Calculated: weighted average of urban targets from Draft Strategic Urban 68% 64% 93% Sanitation Plan which are 100% access in Dili and 82% access in district capitals (assuming that Dili population is 60% of total urban population) Note: UN-agreed MDG targets apply only to national access to water and sanitation; subsector targets have been set by national authorities for 2015 The Government’s goal for rural water is access to a po- the future scenario is that the majority of households will table, secure and constant supply of water.19 The Ministry of have individual connections, with public taps remaining in Public Works’ strategy to achieve this includes construction low income areas. Baucau, Manatuto, Lospalos and Suai, of new water supply systems, rehabilitation of non-func- are high priority district towns where the water situation is tioning systems, and improving the capacity of O&M staff.20 critical.21 Public standpipes will remain the dominant technology, and are preferred by government as being suitable and afford- The draft Sanitation Strategic Plan proposes a goal to make able for Timor-Leste. Timor-Leste “open defecation free” (ODF). Stakeholders suggest achieving ODF by 2017 – the end of the current The goal for urban water is to provide 24-hour potable wa- government’s term. Following this, rural areas expect in- ter supply to Dili and district capitals. According to the creased access to hygienic toilets by moving households government’s Five-Year Plan this will be achieved by se- up the sanitation ladder i.e move from shared to private curing water sources, building storage capacity, increas- latrines, improve pit latrines to pour flush toilets. The pro- ing and repairing water transmission networks, connecting portion of pit latrines is expected to fall as people get used households, and introducing user tariffs. In urban areas to using a toilet and invest resources in improving their 19 Government of Timor-Leste (2011) Strategic Development Plan 2011-2030 20 Ministry of Public Works (2012) Five Year Action Plans 2013-2017 21 Government of Timor-Leste (2011) Strategic Development Plan 2011-2030 Service Delivery Assessment 7 existing basic household toilets, combined with greater Investment Requirements: access to low cost materials. In urban areas the expected Testing the Sufficiency of Finance trend will be the increased use of toilets connected to sep- tic tanks, and in Dili to commence connecting households Given the assumed 2020 national targets (see Table 2.1), to decentralized wastewater treatment systems. The gov- about US$39.4 million needs to be invested each year until ernment’s vision is consistent with household aspirations 2020 on water supply infrastructure and about US$16.4 for improved sanitation in urban areas. million on sanitation infrastructure.23 For water supply, the estimated necessary capital expenditures amount to The Five-Year Plans of the Ministry of Public Works repre- approximately 2.4% of the 2013 national combined sources sent the goals of the current government, but are not fully budget of US$1.6 billion. In addition to infrastructure capital developed to address institutional development, capacity, expenditure, an average of US$6.9 million per year would be and full budget needed to implement the plans. Activities of needed to finance operation and maintenance of current and other ministries, NGOs and donors are part of these plans future infrastructure (see Table 2.4). Estimated operations for the first year only.22 Improving water and sanitation ser- and maintenance costs are 0.4% of the 2013 budget. In vices in Dili is a high priority for national government, and is the years 2010-2012, estimated public capital expenditures where the bulk of the Ministry’s urban water and sanitation on water and sanitation in Timor-Leste (including donor budget will be allocated, with district towns largely over- expenditures, which are included in the country’s combined looked for capital investment. budget) averaged 1.1% of the budget and 1.5% of GDP. Table 2.2 Timor-Leste: Estimated Annual Capital Spending Needed 2011-2020 to Reach 2020 Coverage Goals, US$ million Coverage Investment Requirement Population requiring New Replacement Estimated Sector/Subsector 2011 Target 2020 access Public Share Capital of Capital Other Total of Total Capital Cost Capital % % ‘000/year $US million/year Water supply Rural water supply 60% 80% 41 6.4 12.9 0.0 19.3 15.5 Urban water supply 93% 100% 24 8.9 11.2 0.0 20.1 16.3 Water supply total 69% 87% 65 15.2 24.1 0.0 39.4 31.9 Sanitation Rural sanitation 27% 68% 44 1.0 1.9 0.0 2.9 0.0 Urban sanitation 68% 93% 37 9.8 3.2 0.5 13.5 11.7 Sanitation total 39% 76% 81 10.8 5.1 0.5 16.4 11.7 Note: Public Expenditures include domestic (government) and external (development partners and NGOs) sources. Estimated Other requirements include rehabilitation, treatment requirements for existing coverage and natural disasters. Totals may not sum due to rounding. Source: SDA estimates based on financial model 22 Contributions from donors and NGOs to the sector targets were developed after the Action Plans were approved, and include NGO and donor contributions and water supply schemes under decentralization programs. 23 These figures were calculated from the mid-period year of 2011. 8 Water Supply and Sanitation in Timor Leste The Government of Timor-Leste together with the IMF supply, particularly rural water supply, has been a priority area in have identified lack of adequate infrastructure as a major recent government plans, with a corresponding rise in the capital constraint to economic development in the country, and a budget of the main institution overseeing water and sanitation, major feature of government budgeting in the period 2012- the Directorate General for Water and Sanitation. However, most 2016 is anticipated to be infrastructure. A 2012 IMF consul- of the capital for rural water supply has been through various de- tation projected a rise in capital spending from about 33% concentrated programs and funds such as the Programa Dezen- of total government spending in 2010 to about 55% in the volvimentu Desentralizadu (PDD). These programs do not provide period 2013-2016.24 In 2011 the government created an in- funding for household toilets, only for public and shared com- frastructure fund for major undertakings. Also, combining munity toilets. Consequently any sanitation investments through infrastructure with decentralization, the country has used decentralization programs have no direct impact on progress to- local development funds and programs extensively to has- wards MDG sanitation targets. ten construction of local infrastructure in line with commu- nity priorities. The major budget resource for Timor-Leste is The government’s financial commitment to urban and rural its Petroleum Fund, which stood at close to US$12 billion water supply and urban sanitation, and taking these de- at the end of 2012. concentrated funds into account, means that unlike many countries in the region, government funding for water sup- For water supply and sanitation, the implications of an emphasis ply and sanitation hardware in Timor-Leste exceeds sup- on infrastructure plus the way it is funded are profound. Water port from development partners. Table 2.3 Timor-Leste: Anticipated/Proposed Investment (Capital Expenditure) in Water Supply and Sanitation 2013- 2015 (US$ million per annum) Anticipated Public Capital Expenditure 2013-2015 Anticipated Annual surplus Sector/Subsector External household capital Domestic % of SDA Estimated (deficit) (Development Total expenditure (government) Requirement Partners/ NGOs) US$ million/year Water supply Rural 13.0 67% 1.7 14.7 3.6 (1.0) Urban 10.6 50% 4.1 14.7 3.4 (2.0) Water Supply Total 23.6 60% 5.8 29.5 6.9 (3.0) Sanitation Rural 0.0 0% 0.0 0.0 1.0 (1.9) Urban 4.7 35% 0.0 4.7 0.8 (8.1) Sanitation Total 4.7 28% 0.0 4.7 1.7 (10.0) Notes: Investments that do not expand coverage are not included. While there is NGO investment in water supply, it was not possible to determine comprehensively (many small NGOs operate “off budget”). Most NGO expenditure in sanitation, especially in rural sanitation, is non-capital spending, such as technical assistance and capacity development (“software”). The percentage of estimated requirement is calculated as anticipated government expenditure over total requirements (from Table 2.2). Annual surplus/deficit is the difference between the annual investment required (Table 2.2) and anticipated. Totals may not add up due to rounding. Source: SDA estimates based on information supplied by government, development partners, and NGOs. 24 RDTL 2013 p.19 Service Delivery Assessment 9 Part of the reason for little to no capital expenditure for sani- keting; incentive financing (vouchers, rebates etc), and en- tation is that, according to Timor-Leste policy, households abling environment costs such as training. are expected to invest in their own sanitation facilities, ex- cept for a limited subsidy program proposed for disadvan- The following charts summarize the information presented taged households, and community incentives that could in tables 2.2 and 2.3. offset some sanitation hardware costs. The SDA model cal- culates anticipated household investment as a figure lev- Figure 2.2 Required versus anticipated and recent eraged by government capital expenditure, which is likely expenditure to be small, especially for onsite sanitation. Actual future Total water supply household investment is likely to be higher if household 45 40 self-investment can be successfully stimulated by govern- 35 ment and external non-capital, “software” spending, e.g. Annual investment 30 in million USD sanitation promotion, community mobilization, etc. In the 25 following charts, the anticipated household investment for 20 sanitation is thus not “guaranteed” and the projected ‘defi- 15 cit’ in sanitation spending presents the same high leverag- 10 5 ing of self-investment by households. 0 Total Anticipated Recent Although anticipated government and development partner investment investment investment requirement 2013-2015 2010-2012 capital spending is substantial, it is probably not sufficient to achieve the 2020 goals. This is partly due to the need to Total sanitation consider replacement costs of existing and new infrastruc- 18 ture until 2020, as well as ambitions for networked sewer- 16 age in the capital. In addition, software costs to mobilize 14 Annual investment in million USD rural households to build toilets is a Ministry of Health bud- 12 10 get line item, yet no budget had been forthcoming from the 8 Ministry of Health up to 2013. 6 4 2 Future software costs for rural sanitation have been estimat- 0 ed for the Rural Strategic Sanitation Plan at US$8.79 mil- Total Anticipated Recent lion between 2012 and 2020, or an average of US$976,000 investment investment investment requirement 2013-2015 2010-2012 per year.26 This includes costs for demand generation and sanitation promotion (including government programs), Household Domestic Replacement strengthening sanitation supply including sanitation mar- External Other New 25 Refer Policy statement 8, Timor-Leste National Basic Sanitation Policy 2012, p10 26 Pers. comm. Andy Robinson - draft cost estimate for Sanitation Strategic Plan implementation 8/11/2013. Annual cost breakdown is US$4.9 million for demand generation; US$0.59 million for sanitation supply strengthening; US$2.5 million for incentive program; and US$0.8 million for enabling environment costs. 10 Water Supply and Sanitation in Timor Leste Figure 2.4 Overall annual and per capita investment requirements and contribution to anticipated financing by source Rural water supply Urban water supply Rural sanitation Urban sanitation Total : $ 19,300,000 Total : $ 20,100,000 Total : $ 2,900,000 Total : $ 13,500,000 Per capita (new): $ 156 Per capita (new): $ 368 Per capita (new): $ 19 Per capita (new): $ 292 Domestic anticipated External anticipated Household anticipated Deficit investment investment investment Figure 2.6 shows the different sources of finance for the four Rural sanitation targets will not be achieved without consid- subsectors. It indicates that households are expected to be erable self-investment by households. It seems clear that the major source of funding for rural sanitation, and while do- the “software” necessary to leverage household expendi- mestic budgets are significant for the water sector, donors tures, (such as for operational expenses of rural sanitation also contribute to urban water supply. There are deficits in staff and local promoters) is insufficient to elicit this house- investment requirements in all subsectors. Given the conser- hold self-investment. vative assumptions used for SDA estimates of future govern- ment expenditures (particularly in determining decentralized Table 2.4 presents estimates of additional funding neces- fund allocations for water supply), it seems likely that Timor- sary for the annual operation and maintenance of water Leste has adequate budget resources to reach water supply supply and sanitation facilities. It indicates that water sup- targets, provided that operations and maintenance can be ply and sanitation requires annual funds of US$5.3 million funded and implemented in order to maintain functionality. and US$1.6 million respectively. This is about 13% of the required annual capital expenditure for water supply, and On-site urban sanitation coverage is already high, and plans 10% of the required annual capital expenditure for sanita- for a decentralized wastewater treatment system for Dili by tion. Most of these funds are expected to be used in urban 2020 likely depend more on capacity and implementation areas. than on budget resources. Service Delivery Assessment 11 Table 2.4 Annual operation and maintenance requirements O&M Subsector US$ million/year Rural water supply 1.9 Urban water supply 3.4 Water supply total 5.3 Rural sanitation 0.2 Urban sanitation 1.4 Sanitation total 1.6 Source: SDA Model Note: O&M costs are presented as an indicative minimum requirement, assumed to be 3% of the capital cost for water supply piped onto premises or public taps, and 1.5% of the capital cost of other types of water supply technologies. For sanitation, the estimate is 3% of the capital cost for networked sewerage and for pour flush/flush into tanks or pits, and 1.5% for other technologies. This is a standard calculation for the region. For Timor-Leste maintenance costs may well be higher. Totals may not add-up due to rounding 12 Water Supply and Sanitation in Timor Leste 3. Reform Context The following section discusses some of the achievements supply and sanitation to a national priority and sets a goal and work in progress in reforming and developing the over- for universal access to water and sanitation by 2030, but it all WASH sector since Independence. lacks detail on planning and how the goal will be achieved. The Ministry of Public Works’ recent Five-Year Action Plans A Challenging Legacy at Independence 2013-2017 for water supply and sanitation are general plans for achieving goals by subsector, but similarly lack Since Independence in 2002, Timor-Leste’s water supply, details such as a prioritized and costed investment plan, sanitation and hygiene (WASH) sector has been developing and implementation plan for the district level. The Minis- with the assistance of international development partners try of Health’s Five-Year Plan has limited information about and NGOs, but not without extreme challenges posed by sanitation and hygiene. years of violent foreign occupation, massive destruction of infrastructure, displacement, and political instability.27 Any Water Supply Reform Needs Updating and a gains in water and sanitation coverage during the period of comprehensive Roadmap Indonesian military control were wiped out by the departing Indonesian army and anti-independence militia following Decree No. 4/2004, implemented quickly after Indepen- the referendum for self-governance in 1999.28 As recently dence, currently guides the water sector, covering strategic as 2006, riots in Dili caused further infrastructure destruc- planning and day-to-day activities.29 This decree defines tion and disruption of services. The country’s instability urban and non-urban areas and how they will be served. made reform difficult, however important reform initiatives For urban areas, piped water supply is to be provided in in recent years have positively shaped the rural and urban declared water supply zones, under the management of the sectors. Water Supply and Sanitation Authority (now the National Directorate of Water Supply - DNSA). In rural areas, com- National Plans Provide Goals but Lack Detail munity water management groups have been given prime responsibility for supplying water to communities using lo- The Government’s Strategic Development Plan to 2011- cal methods to raise revenues for operations, with technical 2030 signifies a shift from a period of building a sovereign input and oversight provided by DNSA.30 The rural respon- state to detailing a development plan and vision for the next sibility for DNSA is not fully elaborated in the decree and 20 years. The Strategic Development Plan elevates water introduces some ambiguity in their role. 27 Independence occurred May 19, 2002. The period of Portuguese rule (1515-1975) included local revolt and benign neglect of the population’s needs. Until the 1950s, the capital Dili had no water supply, electricity, telephone lines, or paved roads. Source: ‘Understanding the Tipping Point, Dili, Timor-Leste’. http://www.urbantippingpoint.org/cities/dili/ viewed 16/4/2013. 28 Infrastructure including Mandi, Cuci, Kakus (MCK) – Indonesian public facility combining bathing, washing, and toilet facilities were built during Indonesian occupation. Source: Dutton, P and Siregar, R (2010). Timor-Leste Urban Sanitation Assessment, WSP. 29 Government of Timor-Leste (2004) Approval for the Modalities of Distribution of Water for Public Consumption, 11 February 2004. 30 Local methods of revenue raising include trading of livestock and collective fund raising. Individual household fee collection is not a cultural practice in rural areas. Service Delivery Assessment 13 Community participation in rural water supply planning has sanitation improvement includes establishing the National been formalized through the Rural Water Community Action Directorate of Basic Sanitation (DNSB) in the Ministry of Planning (CAP) Guidelines, developed by the government in Public Works, which—thanks to strong senior leadership of 2005, with AusAID support. These guide both infrastructure the Secretary of State—has effectively increased the profile development and community planning to support stake- of sanitation.32 holders to implement WASH programs in rural communi- ties. Following a review of the community engagement, Replacing the hastily introduced post-Independence 2002 the CAP guidelines are currently being revised to improve Sanitation Management Decree, the National Basic Sanita- consultation with the community and extend community tion Policy was endorsed in 2012 after wide consultation, engagement over the entire project cycle, improve social and has done much to unify the sector approach. The inclusion (disability and gender), and harmonize the pro- Policy comprehensively covers urban and rural areas, and cess with decentralized project approaches to water supply household, institutional and community sanitation; guides development. In particular, community representation in the all sector stakeholders on the policy principles, policy in- monitoring is an added feature. struments and financing rules that should be utilized; and clarifies the roles and responsibilities of the various stake- A National Water Supply Policy (currently being drafted) is holders.33 The main focus is on safe excreta disposal and needed to update Decree-Law 4/2004 and provide a policy hygiene behaviors, but the policy also covers solid and haz- framework to allow future legislation to be developed. The ardous waste disposal, and drainage. The policy sets out new policy will reflect the rapid development of the sector, an integrated and staged approach to achieving a healthy provide a long-term vision and clarify institutional roles of environment, with open defecation free (ODF) sucos being the DNSA and broader stakeholders, and outline arrange- the first target. The immediate challenge and focus is for ments for water resource management, asset ownership, dissemination, comprehension, and implementation of the and financing. policy at district level and below, while improving coordina- tion between Ministry of Health, Ministry of State Adminis- A drag on the development of utilities and urban water ser- tration, DNSA and DNSB.34 vices is the lack of tariffs for urban areas. Tariffs were intro- duced briefly between 2004-2006, but since the Dili riots Following approval of the National Basic Sanitation Policy, in 2006 people in Dili have not paid for water. With ADB work began in 2012 on a draft Strategic Sanitation Plan to assistance, trials of metering and tariffs in three subzones guide priorities and actions to achieve sanitation targets. in Dili are currently underway to reintroduce water tariffs.31 Initially covering rural areas, the Strategic Plan clearly states sanitation targets, identifies priority groups and geographic Sanitation Reform Delayed but now Founded on areas, determines the best use of subsector resources and Progressive Policy capacity, and proposes tracking of suco sanitation using five levels of achievement – the first being ODF sucos. Until recently, sanitation has been a low priority for gov- ernment, reflected in limited institutional capacity within Timor-Leste has largely abandoned subsidies for house- government, and ad hoc planning and development driven hold toilets, instead adopting subsidy-free sanitation pro- by low and unpredictable budget allocations. Evidence of motion and triggering behavior to end open defecation, the government’s increasing commitment to and priority for through Community Led Total Sanitation (CLTS). Initially 31 Ministerial Diploma October 2009 – How to regulate/implement a system of tariffs. 32 Decree Law No. 1/2011 on Organizational Structure of Ministry of Infrastructure, Article 25 Directorate of National Basic Sanitation Services. 33 Timor-Leste National Basic Sanitation Policy, approved by the Council of Ministers in January 2012. 34 Pers. comm. Vice Minister for Health, 21/11/2012. 14 Water Supply and Sanitation in Timor Leste trialed in 2008, CLTS has now been adopted by the gov- to greater partnership alignment with government develop- ernment as a primary component within the Community ment plans, and an emphasis on technical advice and ca- Action Plan for Sanitation and Hygiene (PAKSI) program pacity building. developed by the Ministry of Health and under trial in selected districts. Government and partners now mostly On a Path to Decentralization follow a consistent approach of subsidy-free sanitation.35 Currently being developed is a Program of Assistance for Timor-Leste is committed to decentralization and has devel- Basic Sanitation that targets vulnerable households iden- oped strategies and a legal framework to delegate spend- tified by the Ministry of Social Solidarity with support to ing and management to 13 local district governors, although improve sanitation.36 transformation to full decentralization is not likely until at least 2014. Ministry of State Administration policy guidelines Sanitation and drainage is a priority for the capital Dili and (2008) outline a “single-tier” of municipal government which the government has shown a willingness to adopt new will merge sub-district and district administrations into mu- technologies not used in Timor-Leste before. In 2012 the nicipalities to deliver services, specifically civil registration, government commissioned and funded the preparation of primary health, primary education, water and sanitation, and a Sanitation and Drainage Masterplan for Dili.37 This master local roads. It is intended that most sub-district offices will plan proposes a staged approach to sanitation in Dili, cul- be kept as service-providing extension units. minating in up to eight decentralized wastewater treatment systems by 2025. Stage 2 of the Masterplan, which sets up Funding for decentralized infrastructure development, new organisational and regulatory frameworks and builds through block grants, has been in place since trials of the one decentralized wastewater treatment plant in central Dili, Programa Dezenvolvimentu Lokal (PDL) in 2004. The PDL has been submitted to Ministry of Finance for tendering. now operates in all 13 districts. Other programs include the This suggests the government is prepared to fund some as- Pakote Referendum in 2009, the Programa Dezenvolvimen- pects of urban sanitation itself. The Master Plan proposes tu Desentralizadu (PDD) begun in 2010, which was split into that by 2030 separate government agencies exist for man- PDD1 and PDD2. The Programa Nasional Dezenvolvimentu aging policy, regulation and operations to improve account- Suku (PNDS) for small scale community projects at suco ability, oversight and performance management. (village) level including water supply and sanitation is pres- ently under trial in five districts, but set to begin full fund Development Assistance Influenced Reform disbursement in 2014. Development partners, both donors and international Community-selected projects under the decentralization NGOs, have been integral to the introduction of new ideas programs include water supply schemes and public sani- and practices in Timor-Leste – for example, community tation.38 However participatory methods at aldeia (hamlet) planning approaches, CLTS, gender, disability, monitoring level are weak, technical quality of some water and sanita- tools, and more lately focus on asset management, opera- tion projects has been below standard, value for money has tions and maintenance and service provider reform. Sup- been questioned, and, without provision for maintenance, port has been long term, with the nature of development some schemes have failed.39 Due to poor coordination at partner assistance transforming over the last 10 years from district level, decentralized (and NGO) water and sanitation emergency response and standalone infrastructure projects projects seem to be operating outside of the mainstream 35 Some cash incentive programs exist, for example Red Cross provides a cash incentive of $20 as a reward for a select few households who have developed an understanding of hygiene as part of its integrated water, sanitation, hygiene, disaster preparedness, and livelihoods program, however this is very small scale and does not cover the cost of sanitation hardware. 36 The type of sanitation support is yet to be decided but might include a voucher system, rebates, or cash transfers. Pers. comm. Alex Grumbley 13/9/2013. 37 GoTL funded international technical expertise from a consortium led by Melbourne Water to prepare the Masterplan. 38 Decentralized programs do not fund household toilets, only community toilets eg at villages, markets, schools, bus stations etc. Service Delivery Assessment 15 work and knowledge of sector stakeholders such as district Efforts to improve the quality of infrastructure projects, in- DNSA staff.40 cluding decentralized water supply schemes, are in part ad- dressed by the National Development Agency (ADN). Estab- Each program had or has different rules as to size of infra- lished by decree law in 2011, this agency evaluates the merits structure and different administration and different mecha- of water and sanitation projects planned by individual minis- nisms for prioritization. The PDL as well as the PDD2, and tries; and then monitors, using field staff, the delivery of proj- PNDS programs are administered by Ministry of State Ad- ects and compliance with engineering design and contracts.41 ministration. In late 2011 the government decided on an Other factors that are critical for the sustainability of water integrated mechanism to harmonize deconcentrated devel- supply and sanitation projects such as community participa- opment programs, called Planu Dezenvolvimentu Integradu tion, maintenance, and coordination mechanisms at national Distrital (PDID), which includes PDD1, PDD2 and PNDS. and district level are not part of the Agency’s mandate. Table 3.1: Key dates in the reform of the sector in Timor-Leste Year Event 2002 Independence (official date of international recognition of independence 20 May 2002) 2002 Sanitation Management Decree relating to sewage and wastewater disposal in urban areas, solid waste management, and drainage, 2004 Decree No. 4/2004 dated 11 February promulgated (approves the Modalities of Distribution of Water for Public Consumption) 2005 Community Water and Sanitation Guidelines developed by DNSA 2008 Rural Water, Sanitation, Hygiene Sector Strategy 2008-2011 developed Ministry of Health National Integrated Community Health Services (SISCa) starts – includes promotion of sanitation and personal hygiene at monthly 2008 community outreach in all districts 2011 Timor-Leste Strategic Development Plan 2011-2030 developed – sets targets for water supply and sanitation to 2030 2010 National Census includes questions on household water and sanitation which match JMP format 2010 National Water Supply Policy developed (draft) 2010 Rural water and sanitation monitoring tool (SIBS) introduced 2011 National Health Sector Strategic Plan 2011-2030 launched 2011 National Development Agency established by decree law to assess and supervise capital works projects including in districts 2011 National Directorate of Basic Sanitation (DNSB) established 2012 National Basic Sanitation Policy approved by Council of Ministers 2012 Dili Sanitation and Drainage Masterplan prepared 2012 Ministry of Health trials Community Sanitation and Hygiene Planning program (PAKSI) (includes subsidy free CLTS approach to sanitation promotion) 2012 DNSA and DNSB Five Year Action Plan 2013-2017 prepared 2013 Strategic Sanitation Plan developed 2013 Trial of water tariffs in selected zones in Dili 2013 Planning for trials of operation & maintenance options for rural water supply systems commenced This introduction puts the service delivery pathway in context, which can then be explored in detail using the SDA scorecard. The following Sections 4 to 6 highlight progress and challenges within the WASH sector across three thematic areas—the institutional framework, financing systems, and sector monitoring. The scorecards for each subsector are presented in their entirety in Sections 7 to 10. 39 Shortcomings of projects delivered through decentralized block grants are widely reported by many sector experts, and also reported generally eg. Community Experiences of decentralized development in Timor-Leste, The Asia Foundation/Irish Aid; Dale, P and Butterworth, D. (2010) Articulations of Local Governance in Timor-Leste: Lessons for Local Development under Decentralization. Justice for the Poor Policy Note. World Bank. Washington. Kuehn, S (2010). 40 Reported by district representatives during SDA workshops in March and June 2013. 41 Government of Timor-Leste, Decree Law 2011 National Development Agency. The ADN will eventually evolve to be an economic investment agency in the same vein as national planning agencies in Indonesia, Thailand and Philippines (pers. comm. Alex Sarmento, National Development Agency, 21/11/2013). 16 Water Supply and Sanitation in Timor Leste 4. Institutional Framework Priority actions for institutional framework • Increase autonomy, incentives and accountability of DNSA for improving urban water supply services • Clarify asset ownership and maintenance roles of rural water supply schemes • Strengthen service delivery at district and subdistrict levels including increasing human resources and technical capacity, and improving coordination • Continue awareness building on options for private sector involvement, and reviewing options appropriate for the stage of sector development to address capacity constraints • Increase Government commitment to meeting WASH human resource needs including taking responsibility for staff posi- tions currently funded by donors (if needed) and recruiting adequate numbers of urban and rural staff for DNSB • Clarify the responsibilities and improve coordination between Ministries of Public Works, State Administration, Health, Education, Tourism etc. in water supply, sanitation, hygiene, and water resources WASH sector responsibilities The Ministry of Public Works has lead responsibility for ru- Other ministries and agencies with responsibilities related ral and urban water supply and sanitation through the Di- to WASH are the ADN, Ministry of State Administration, rectorates of Water Supply (DNSA) and Basic Sanitation Ministry of Education, and Ministry of Tourism. Challenges (DNSB).42 A disadvantage of water and sanitation being to effective coordination, particularly between the Ministry within the Ministry for Public Works is the tendency for it of Public Work, ADN, and Ministry of State Administration, to be overshadowed by the roads sector, which is a ma- are due to constantly changing roles and responsibilities of jor priority for the government to achieve strong economic each organization. Efforts are being made by the new Min- growth and improve human development.43 Sector stake- ister of Public Works to improve internal coordination within holders state that insufficient financial commitment is given the Ministry.44 to water and sanitation, and road development projects are favored. However the establishment of a Secretary of State Water Supply for Water and Sanitation is going some way to improve the standing of water and sanitation within the Ministry. The In urban areas the operations and management of Timor- Ministry of Health is the lead agency for health and hygiene, Leste’s 13 urban water supply schemes (servicing Dili and rural sanitation and promotion, through the Department for 12 district capitals) lies with the DNSA. In rural areas DNSA Environmental Health (sanitation) and the Department of has a technical advisory role for community managed water Health Promotion (hygiene promotion). supply schemes according to Decree-Law 4/2004. 42 Within the Ministry of Public Works the Directorate General for Water and Sanitation has three directorates: water supply (DNSA), basic sanitation (DNSB), and water quality and control/water resources (DNCQA). In 2011 DNSB was elevated to a separate directorate, equivalent to DNSA, previously being a unit under the former National Directorate for Water and Sanitation (DNSAS). 43 Timor-Leste Strategic Development Plan 2011-2030. 44 Pers. comm. B da Sousa, ADB, 12/3/2013. Service Delivery Assessment 17 DNSA district offices are small with between 6 and 12 to plan, manage, and operate water supply systems and to staff, and one or two people assigned to rural WASH. Re- develop and implement water sector policies, and although cent placement of 88 sub-district facilitators has helped improving, overall capacity remains weak. Five-year action supplement rural WASH staff.45 District offices are con- plans for rural and urban water and sanitation 2012-2017 strained in service delivery due to: lack of qualified techni- lack cost estimates, suggesting a lack of skills in preparing cal staff with skills in engineering design, maintenance etc; detailed costings, as well as limited coordination with other a recently (2013) increased but historically small discre- ministries, NGOs, and donors. tionary operational budget; lack of vehicles for travelling to urban schemes for operational support; a centralized In the urban sector, the ability of the DNSA to operate and national procurement system that slows down acquisition maintain urban water supplies is also constrained by limit- of spare parts and repairing water supply systems; lack ed annual budgets to fund O&M. According to Decree-Law of clarity over O&M responsibility for rural schemes; ab- 4/2004, any revenue generated from the reintroduction of sence of performance measures for customer service; and tariffs would flow to the Ministry of Finance, not to DNSA, poor communication between national level and district for operational purposes. Currently the only advantage tar- DNSA.46 With possibly the exception of the annual bud- iff reintroduction offers DNSA is as a consumer demand get process, decisions and initiatives affecting the WASH management tool. Maintenance is reactive, planned asset sector are usually developed in Dili and are not always maintenance programs are not implemented, and system communicated effectively to districts for implementation. functionality and service quality are declining. There is no National DNSA staff rarely visit districts, and information independent regulator for urban water supply operations does not reach district levels on a timely basis (e.g. guide- or consumer accountability, and in effect DNSA regulates lines, decisions, outcomes).47 District staff reported feeling itself. The autonomy of service providers to retain tariffs is abandoned and ignored.48 District level skills and coordi- essential in establishing a commercial utility approach as a nation need to be improved including strengthening dis- key building block of the sector reform roadmap, as well as trict WASH working groups. the separation of service provision (DNSA) and regulatory functions. Because DNSA operates as a government department it has limited autonomy in decision making, other than for basic op- In the rural sector, a key issue is the unclear asset owner- erations and administration.49 All financing, fees and charges, ship of water supply facilities, especially schemes that are staffing, infrastructure development, and procurement deci- community managed. When maintenance beyond basic re- sions (including hiring of consultants and other technical ex- pairs is required, the community will typically turn to DNSA pertise) require the prior approval of higher level government for assistance, but DNSA’s role in major repairs, and bud- agencies. This slows down day-to-day operations, and pro- get for this, is unclear. Rural water scheme functionality is vides no incentive for improving service delivery. Develop- being tracked through a monitoring system but even when ment partner assistance has helped to build DNSA capacity non-functional schemes are identified, there is no capacity 45 88 no. Sub district facilitators directly facilitate community engagement, facilitate community action planning, help establish community management groups, collect water and sanitation monitoring data, and monitor contractor performance. 46 District DNSA operational budget has increased to $3,000/month in 2013, up from $1,000/month in 2012. Each district has been provided a vehicle in early 2013 (under BESIK) for rural O&M, but not for urban O&M – pers. comm. K Clark, Program Manager, BESIK, 12/9/13 47 Some district towns have not had visits from the national level for 5-7 years, and the lack of communication is worsening - pers. comm. B da Sousa, ADB. 48 District personnel who attended the SDA workshops directly expressed frustration at the failure of national level to communicate information to districts. ADB (2011) Democratic Republic of Timor-Leste: Strengthening Water Sector Management and Service Delivery, Technical Assistance Report, Project 49 Number: 45227, Asian Development Bank, Manila; and SDA water supply workshops March and June 2013. 18 Water Supply and Sanitation in Timor Leste or budget in DNSA to respond to rehabilitation and repair However, currently DNSB is increasing capacity from na- needs at district level. Rural water supply services are fur- tional level down to the district level with recruitment in ther complicated by the separate budget and delivery sys- 2013 of one sanitation officer in each district to address tems of Ministry of State Administration-funded decentral- urban and rural sanitation. Each will be trained in technical ization projects. Coordination at the district level is limited and planning aspects of community-based sanitation and to district staff certifying the work of contractors to be paid hygiene program (PAKSI), but will focus on quality assur- by Ministry of State Administration. District staff know little ance of infrastructure. The directorate will also contain a about these schemes and have no sense of ownership to- Policy and Strategic Planning section with responsibility to wards their successful execution and operation. develop a strategy and formulate multi-year plans for the delivery of basic sanitation services in urban and rural areas Sanitation and Hygiene Promotion of Timor-Leste. In urban areas, households are responsible for on-site sani- Sanitation and hygiene promotion currently occurs through tation, while wastewater treatment facilities and public toi- the Ministry of Health, and to a lesser extent, DNSA. En- lets are the mandate of DNSB. Only Dili and Baucau have vironmental health promotion, covering personal hygiene, septage treatment facilities. The role of districts in urban sanitation, and healthy homes, is extended into rural areas sanitation has been defined but is not operationalized due through mobile primary health clinics operated by profes- to budget constraints. sional health workers and volunteer Family Health Promot- ers under the Ministry of Health’s SISCa (Integrated Com- Rural sanitation is also the responsibility of households with munity Health System) program.50 For sanitation promotion the Ministry of Health taking the lead agency role, and pro- SISCa only targets those who attend the suco mobile clinic. motion of household sanitation and hygiene also the do- However a handwashing with soap campaign currently un- main of the Ministry of Health through the Department for der trial through the SISCa system, supports Family Health Environmental Health. DNSB has no district staff or program Promoters to undertake aldeia based activities for hygiene budget for rural sanitation. According to rural stakeholders, behavior change and may prove more effective than the householders need technical support to build a durable suco level intervention. In rural communities where a new toilet, even dry pit latrines, but this technical support is water supply system is being implemented DNSA sub- missing at the district level. Existing sub-district facilitators, district facilitators provide limited sanitation promotion, placed around the country to support rural water supply, do although this may be strengthened by recruitment of ru- not have sanitation in their job descriptions although some ral sanitarians and improved cooperation with Ministry of have had basic training in latrine construction in 2009. Cur- Health, local government and NGOs. Hygiene promotion in rently no institution is tasked with providing technical sani- urban areas only occurs through the SISCa system or as tation field support necessary for the implementation of the part of standalone infrastructure projects funded by devel- sanitation policy and rural sanitation programs. opment partners. 50 Ministry of Health strengthen communities in the area of health through SISCa (Servisu Integradu da Saúde Communitária – Integrated Community Health Services). Service Delivery Assessment 19 The future of rural sanitation and hygiene promotion is ex- In the urban sector ADB has been the main funder of urban pected to be carried forward through the PAKSI program water supply projects in Dili and district towns (currently implemented by Ministry of Health sub-district sanitar- infrastructure in Manatuto and Pante Makassar, but in the ians. Unlike SISCa, PAKSI is implemented at aldeia level future institutional support, and water and sanitation mas- thus having a greater reach to households, and directly in- ter planning for priority district towns of Baucau, Manatuto, volves local leaders. Based on the results of the trial and Viqueque, and Los Palos). JICA has provided grant aid for sanitarians’ ability to successfully implement PAKSI in three the urban water sector for a number of years, particularly districts, a decision will be made by Ministry of Health on rehabilitation of Dili and district towns water, and recently whether to expand this as a national program. This means water treatment facilities in Dili. KOICA has funded Timor- that long term government funding is required to recruit and Leste’s first desalination facility.54 train sanitarians and fund operational costs and monitoring for all 65 sub-districts. A gap in development partner engagement exists in urban sanitation. Development Partners NGOs Development partners play a key role in supporting the government, particularly in infrastructure funding and more NGOs play a key role in rural WASH in the absence of recently capacity building. Simple demarcation between strong local government and private sector actors, however development partners over urban and rural sectors has they face challenges of limited human resources, technical emerged over time. expertise and financial capacity. Many local NGOs are sup- ported by UNICEF and international NGOs (e.g. WaterAid, In the rural sector, AusAID/DFAT has provided substantial Plan, World Vision, Care, Triangle, Red Cross, and Child support for water supply and sanitation since 2003, with the Fund) to implement water and sanitation in rural areas. The current BESIK (Rural Water Supply and Sanitation) program capacity of local NGOs is developing slowly and should ongoing between 2007 and 2020.52 improve further as some international NGOs move from contracting local NGOs for project delivery to long-term In 2012 USAID completed a three-year integrated rural wa- engagement, capacity building, and organizational support. ter, sanitation and hygiene project (DWASH) in two districts (Oecussi and Manatuto), however the project has not been BESIK is currently supporting trials of NGOs to provide con- scaled up beyond the pilot districts, and USAID is not cur- tract maintenance for water supply systems in three loca- rently active in the sector.53 The European Commission is tions. While DNSA and the Ministry of Health are uncom- supporting rural WASH as part of integrated rural develop- fortable with paying NGOs for this work, it is potentially a ment. solution for improving sustainability of community schemes without tying up DNSA resources in this day to day work.55 51 PAKSI teams are created by the Sanitarian to include Ministry of Health community volunteers who provide support at the SISCas, suco chief, aldeia chief, and natural leaders. 52 BESIK (Be’e Saneamentu no Ijiene iha Komunidade ) Phase I: 2007-2012 (5 years); Phase II: 2012-2020 (in two 4-year blocks) 53 “USAID’s Water Project Leaves Behind Robust Systems, Stakeholder Commitment/ USAID Nia Projetu“http://www.flickr.com/photos/usaid_timor- leste/6718849617/ [viewed 9/8/2013] 54 Located in Metinaro (on the outskirts of Dili) which produces 240 m3 per day which is then trucked to schools, clinics and public tanks around the plant. 55 The opinion that government did not yet feel comfortable contracting O&M functions to NGOs was expressed by several people working in the sector. 20 Water Supply and Sanitation in Timor Leste The Private Sector lease and concessions. Private financing of infrastructure development is likely to be unattractive to investors until Except for small-scale hardware suppliers, the private sec- contracting, financing and cost recovery, and human re- tor is absent in Timor-Leste’s WASH sector. source capacity conditions are improved, however there are options for performance-based service contracts and other The Government is currently contemplating private sector management contracts which could be implemented in the participation in water supply operations and maintenance short term under the control of DNSA. The range of private in district capitals. While the decision is ultimately a political sector engagement options, and the countries and cities one, DNSA would consider a role for the private sector in where these options are in use, is shown in Figure 4.1.57 service delivery, however the nature of that role was unde- termined.56 Starting with service and management contracts Trials of maintenance services for rural water supply un- for specific functions would be a realistic way to embark on der contract to NGOs and local companies are being sup- public private partnerships, as Timor-Leste is not yet ready ported by BESIK but could, with guidance, be managed for full-scale private-public partnership models such as by DNSA. Figure 4.1 Public-Private Partnership Options “PURE PUBLIC” “PURE PRIVATE” Design/Build O&M Outsourcing BOT/BOO Privatization Johannesburg, South Australia Bangkok, HCMC UK, Chile Kenya Service Contracts DBO/DBL Lease/ Joint Venture Concession NRW: Bangkok, HCMC Vietnam, Affermage Brazil, Manila, Gabon Billing: Port Moresby Philippines Senegal, Shanghai Colombia NRW= Non Revenue Water; O&M= Operations and Maintenance; DBO/DBL= Design Build Operate/Design Build Lease BOT/BOO = Build Operate Transfer/Build Operate Own Source: Adapted by authors from WSP Global Meeting on PPP powerpoint presentation by I. Menzies, Nairobi, 28 May 2013. 56 Senior DNSA staff, June 2013; Pers. comm. B de Sousa, ADB Project Officer, 12/3/2013; G Costin, ADB consultant, 19/11/2012. 57 More information on PPP in service provision is available at: http://ppp.worldbank.org/public-private-partnership/ and http://wbi.worldbank.org/wbi/about/ topics/public-private-partnerships Service Delivery Assessment 21 Coordination Mechanisms pipe fitters, water supply design technicians, water supply construction technicians) and skilled workers (well builders, Multilateral and bilateral donors are coordinating interna- hygiene promoters, latrine builders, sanitation mobilizers, tional development assistance for water supply and sani- hand pump technicians). As mentioned above, outsourcing tation with the Ministry of Finance. Technical levels of co- or developing management contracts with private sector ordination between development partners and government will also be an important way to address capacity gaps in exist on a project basis and through formal sector mecha- the short and mid-term. nisms such as the WASH Forum and Sanitation Working Group at national level. Coordination between stakehold- ers at district level is however not formalized. Previously, weekly infrastructure round table meetings of development partners provided an opportunity to share activities, issues and solutions. However these ceased when the ADB initia- tor departed Timor-Leste, indicating the need for govern- ment-owned processes. Development partners would wel- come its reinstatement. ADB has proposed establishing a National integrated working group for water and sanitation, however this is awaiting approval from government. Capacity shortfall Timor-Leste in general has a shortfall of skilled personnel across many sectors, including WASH. Increased resources and capacity are needed in all subsectors of WASH. For example, DNSB has gone very rapidly from a department to a national directorate. Human resources are especially needed in rural water supply and rural sanitation if targets are to be met.58 Simply to meet the MDG targets, there is demand for an estimated 25 to 70 engineers and 120 to just over 300 technicians across all sectors. The biggest short- fall in positions (where the demand will not be met from annual output of qualified graduates alone) is for techni- cians (drillers, plumbers, carpenters, welders, electricians, 58 FH Designs (2009) Human Resource Capacity in the Water, Sanitation and Hygiene Sector in East Timor, DFID. 22 Water Supply and Sanitation in Timor Leste 5. Financing and Its Implementation Priority actions for institutional framework • Increase capital works budget execution by improving capacities in public procurement, tendering, and contract man- agement processes and documentation • Develop costing guidelines to ensure that future project plans for capital investment (hardware) are accompanied by budgets for the required level of technical assistance (software), especially for rural water supply and rural sanitation • Improve sector financial coordination by annually reporting in one consolidated place, all sources of capital and non- capital funds expended on WASH Investment planning Sector investment plans as a formal tool for public invest- in the 2013 budget. For 2014 and 2015, budget projections ment planning were abandoned in 2007 due to a change show total capital expenditure at 51% and 52% of the bud- in government focus; currently none of the four sub-sec- get respectively. According to the 2013 budget commen- tors has a sector investment plan, although there are sev- tary, inability to spend large amounts from the infrastructure eral strategies and action plans as discussed in section 2. fund caused a dip in total capital spending in 2013. This is a Timor-Leste uses a medium-term expenditure framework major reason that the 2013 budget has been reduced sub- that extends planning out for five years with indications of stantially.59 The projected budgets also evidence the phas- planning for water supply and some sanitation investments ing out of multilateral grant aid in 2017 from World Bank within that framework. and ADB, due to Timor-Leste graduating from being eligible for such grants. The country will still be eligible for conces- The Government is committed to capital investment, spend- sional loans and some selected grants in certain sectors or ing US$561 million in 2011 and projected to spend US$1.08 for technical assistance however none has been forecast in billion by 2015. By comparison, only US$55.8 million (or budgets. 5% of the 2015 total capital budget) is needed annually for water and sanitation capital expenditure and US$6.9 million There are two major sources of capital spending for water for operations and maintenance expenditure. supply and sanitation infrastructure in the budget: Capital expenditure as a proportion of the total government 1. The Consolidated Fund of Timor-Leste budget was above 50% in 2011 and 2012, but dips to 46% 2. The Infrastructure Fund. 59 Government of Timor-Leste 2013a. p. 47. Service Delivery Assessment 23 The Consolidated Fund is not a true fund but another The Infrastructure Fund currently includes five major water name for the budget; it captures all minor capital spending supply and sanitation programs: 1. Studies for master plans (including O&M) carried within Ministry budget, including regarding water and sanitation at a national level; 2. The Dili the local development programs, as well as salaries, goods sanitation and drainage master plan; 3. Construction and and services, and transfers. In 2010 and 2011 US$2.2 supervision of sewers and drainage in Dili; 4. Construction million and US$2.5 million respectively were allocated as and supervision of water and sanitation systems (national capital expenditure for DNSA and DNSB, but this appears level); and 5. Water supply in Dili. In addition, the MDG to have declined precipitously in 2012 and beyond as de- Suco Fund includes budget of US$6.9 million in 2013 and centralized funds and the Infrastructure Fund include rela- US$7.5 million in each of the next four years for water and tively large amounts of capital spending for water supply sanitation.61 and sanitation. The Consolidated Fund includes many local development programs that are major sources of decen- Table 5.1 presents the total budgets for both the Consoli- tralized spending for rural and some urban water supply, dated Fund and the Infrastructure Fund and the estimated and also for public sanitation.60 These include the Ministry water and sanitation budget within those funds, by pro- of State Administration-managed PDL, plus PDD and PNDS gram. funds. Section 3 discusses these funds at greater length. Table 5.1 Timor-Leste: Capital Spending from the Consolidated Fund of Timor-Leste and the Infrastructure Fund Relevant to Water Supply and Sanitation 2011-15 2011 2012 2013 2014 2015 budget budget budget budget budget Total Capital and Development from Consolidated Fund, of which: 86.6 124.8 152.5 158.6 164.9 PDD1 Sub-district, Suco, and Aldeia (re-appropriation) 15.8 34.4 9.4 n.a. n.a. PDD2 District (re-appropriation) 26.6 30.1 6.3 n.a. n.a. PDID Program (from 2013 on) n.a. n.a. 71.3 90.5 94.1 Ministries/Agencies 44.1 60.3 65.5 68.1 70.8 Total Capital and Development from Infrastructure Fund, of which: -- 430.8 604.4 868.3 918.4 Water and Sanitation -- 4.9 10.1 13.2 27.0 Millennium Development Goals -- 14.0 46.3 81.5 64.0 Note: -- not available n.a. not applicable. Source: Government of Timor-Leste 2013a pp. 42-46. 60 PDD1 and PDD2 include funding for water supply in communities that are classified as “urban”. Despite their small populations, district capitals in Timor- Leste are generally classified as “urban” even though modes of water supply and sanitation delivery may more typically be “rural” (small piped systems, wells, onsite sanitation). The sanitation in these funds is typically public sanitation on the Indonesian MCK or MCK-plus model, but there seems to be some minor funding of household sanitation. 61 Government of Timor-Leste, 2013c table 5101 (p16). The MDG Suco Fund provides water and sanitation to new houses in sucos (5 per year per aldeia). 24 Water Supply and Sanitation in Timor Leste Budget transparency the operating budget; and salaries and small capital works budgets are known to execute well. With a basic understanding of funding sources, it is relative- ly easy to identify capital investments in water supply and Most capital expenditures for urban water supply and sanitation from Timor-Leste budget statements, although sanitation are the responsibility of the decentralized funds details on each sub-sector allocations are not available.62 (largely the responsibility of the Ministry of State Adminis- Cooperating ministries and the Ministry of Finance are quite tration) or the Infrastructure Fund (run by the Ministry of Fi- open with financial information, however details of some nance). On the basis of two year’s data from the PDL, the decentralized fund expenditures were not readily avail- decentralized funds appear to have little difficulty spend- able and are not published, but program data were willingly ing budget allocations, but these are for small water sup- given where they were available. Operational subsidies for ply projects more often associated with rural settings. The O&M in district budgets cannot be identified in the budget. consolidation of the local development programs into the The most recent available Public Expenditure and Finan- Integrated District Development Program (PDID) may affect cial Assessment review was undertaken by the IMF in 2010 implementation speed, because the program is forecasted based on data from 2007-2009. It states fiscal transparency to be quite large and budget execution and implementation is “quite high” and “overall provision of fiscal information is could become an issue. quite good”.63 The report compliments advances made in public financial management. One difficulty that arises is estimating capital works im- plementation and associated expenditure, as evidenced Utilization of budgets in Infrastructure Fund carry-forwards of unused water and sanitation project allocations.64 Only 40-50% of the Infra- The IMF 2010 review of 2007-2009 data concluded that structure Fund is executed, and a substantial proportion of the Timor-Leste budget is not an accurate predictor of ex- low executed projects are from Public Works. penditure, partly due to under-execution of the budget and partly due to supplementary budgets. The IMF 2010 review The process for executing approved projects is clear, with shows that actual primary expenditure deviated from bud- the Ministry of Public Works responsible for project super- get estimates by more than 15% in two of the three previ- vision; ADN responsible for checking and signing off the ous years considered, but has been improving over time. technical quality of works; and tendering carried out by the The deviation was 45% in 2007 and 39% in 2008, however new National Procurement Commission. However there are it was only 11% in 2009. Moreover, some ministries are bet- bottlenecks due to poor procurement and contracting pro- ter than the overall ranking; participants in the SDA consul- cedures and lack of adequate documentation by the Minis- tation process—many of whom came from the Ministry of try of Public Works. While the Ministry of Finance payments Public Works—consistently rated budget execution as high are quick, it often rejects requests for payments due to poor (over 75%). This could partly be explained by the fact that documentation.65 Delays are also caused by the slow tender recurring expenditures (salaries) form a high proportion of preparation through the National Procurement Commission. 62 Budget Book 6 details Infrastructure Fund Projects. 63 IMF 2010 p.8. 64 The Infrastructure Fund for 2012 was significantly underspent and then reduced in 2013. – pers. comm. K Clark, BESIK Program Manager, 12/9/2013. 65 Pers. comm. Hans Beck, Senior Economist, World Bank Timor-Leste, 20/1/2014. Service Delivery Assessment 25 6. Sector Monitoring and Evaluation Priority actions for sector monitoring and evaluation • Provide implementation support and training to improve data quality and analytical use of the water, sanitation and hy- giene information system (SIBS). • Improve performance monitoring, and public disclosure for urban water supply to increase accountability. • Develop asset registers and asset management systems for all urban water supplies in preparation for O&M contracting. • Synchronize data and definitions from different sources in support of robust national country monitoring systems. • Set up subsector multi-stakeholder annual reviews to monitor past progress and agree corrective actions. Timor-Leste is well advanced in the development of moni- ply schemes, including functionality of schemes and areas toring systems to track progress on water and sanitation. served, which may be more than one aldeia. Systems are im- For the first time in 2010, the national Population and Hous- proving towards consolidating data from the SIBs and sector ing Census included questions on household water sup- planning tool to provide information on the overall function- ply and sanitation using the same definitions as the JMP, ality of water supply schemes. For water supply, indicators providing a comprehensive nationwide picture of access. include the number of households with access to water, time According to sector professionals, enumerator unfamiliarity taken to collect water, scheme types, year of modifications to with different definitions of sanitation may have resulted in schemes, community management group and scheme func- some misunderstanding and incorrect classification of sani- tioning; for sanitation, monitoring includes household sanita- tation types. Further training is needed to improve accuracy tion access, and community level ODF status. Sub-district in future. facilitators (DNSA staff) update aldeia data as part of their routine work, and since 2012, relay field information via mo- The government is well underway with rolling out a cutting bile phone SMS messages to the database, which links to edge aldeia-level water, sanitation and hygiene information a mapping system. Project and scheme-level information is system or SIBS (Sistema Informasaun Bee no Saneamentu) willingly and routinely provided by NGOs and government to which will help government and partners at all levels to plan update the sector planning database so that it will be pos- and monitor progress and sustainability of services, as well sible to identify schemes and unserved areas, and improve as identify service gaps.66 Established with BESIK support, linkages between communities with water and schools with- SIBS monitors national coverage and access to water supply out water. District managers are provided with monthly infor- and sanitation at the aldeia level. Work is currently ongoing to mation for analysis, although not all district staff are yet fully integrate and overlay information from individual water sup- informed about SIBS.67 66 The database currently covers 96% of aldeias. Presentation by K Clark, BESIK on SIBS during Water Workshop for SDA, March 2013 67 District staff attending SDA workshops did not have knowledge about SIBS although SIBS has been presented in several workshops. This could be due to other district staff attending the SDA workshops. 26 Water Supply and Sanitation in Timor Leste Figure 6.1 Water supply monitoring in SIBS database SIBS - Mapping Program System Functioning Status > 50% Functioning > 50% Functioning or Partially Functioning > 50% Partially Functioning > 50% Not Functioning or No Piped/Pumped System Urban < 50% Aldeia data return 070502 Coliate-Leotelo 07 Enmera 0705 Haulia Aldeia Funsionamentu 07050201 Leulara No piped/pumped system 07050202 Raogoa Always functioning 07050203 Claehema No piped/pumped system 07050204 Manulete Partially functioning 07050205 Hauhei Partially functioning 07050206 Manucati Not functioning 07050207 Alhaladiu Not functioning SIBS is not without its challenges, including: resourcing In the urban water supply sector, ADB is supporting asset re- and management of sub-national staff for timely collection cording of schemes in Oecussi and Manatuto, as district staff of data; quality of sanitation data especially consistent un- do not have records of the infrastructure in their schemes, derstanding of sanitation by data collectors; accessibility making repairs and replacement of spare parts and assets to SIBS information at sub-national offices due to poor in- more difficult. Asset registers, with valuations of replacement ternet and computer equipment; government willingness to cost, are useful preparation for transition to any private sec- make SIBS information publically available; and how to link tor involvement such as contracting out of services and/or SIBS to an asset management system for each water sys- establishing a utility. tem.68 An additional challenge is how to use the information as a tool for integrated planning. Data collection, manage- As a government department, DNSA does not have the ment and analysis need strengthening through training and monitoring and reporting regime that most urban utilities ongoing support. would employ, including international benchmarking of 68 Water and Sanitation Information System for Timor-Leste SIBS (Sistema Informasaun Bee no Saneamentu) by IRC International Water and Sanitation Centre on Apr 18, 2013. Prepared for the Monitoring Sustainable WASH Service Delivery Symposium, 9 - 11 April 2013, Addis Ababa, Ethiopia. (Available via Slideshare) Service Delivery Assessment 27 utility performance. Information on water supply operations There is no formal joint annual review mechanism in Timor- and service levels is difficult to obtain. No data are available Leste for water supply or sanitation although this would be on septage management, or septic tank operators (except desirable according to sector stakeholders. As mentioned where contracted directly by DNSB). No records are kept of in section 4, information sharing between sector stakehold- septage disposals at the Tibar wastewater treatment facil- ers, including national and international NGOs, takes place ity or other district facilities. No information is available on through the government-chaired WASH Forum and the bi- the functioning of treatment facilities nor the quality of efflu- monthly government-led Sanitation Working Group.69 ent discharged. An assessment of the functioning of existing treatment works would be useful before expanding the num- Monitoring of infrastructure at the higher levels of govern- ber of facilities in district towns. DNSA and DNSB are both ment is meant to occur through an Infrastructure Develop- operator and regulator and therefore have little incentive to ment Strategic Sector working group led jointly by Ministry monitor service performance and make information available of Public Works and Ministry of Transport and Communica- to the public. Improved performance monitoring and public tions, and supported by ADB. This high level working group disclosure would strengthen accountability and regulatory is one of four strategic sector working groups that links with oversight. the Development Policy Coordination Mechanism, set up by the Prime Minister’s office to operationalize the Strategic In terms of water quality monitoring, while DNSA has a func- Development Plan.70 Strategic working group meetings are tioning water testing laboratory in Dili developed with support intended to be held quarterly, bringing together donors, civil of JICA and USAID, water testing is only regularly conducted society, private sector, and the Ministry of Public Works, and for Dili water schemes. Operating and maintaining the testing relevant Director Generals for each area to report on annual facility has proved to be a challenge recently. Water quality, and five year targets to achieve the Strategic Development as far as identification of suitable sources, may be included Plan. Only one meeting of the infrastructure working group in the next issue of the Community Action Planning Guide- (covering roads and bridges, water and sanitation, urban lines for rural water supply, however there is no water quality development, electricity, ports and airports) has been held monitoring done presently. since the establishment of this mechanism in early 2013. 69 The WASH forum is chaired by DNSA and DNSB with coordination support from BESIK.(pers. comm. Keryn Clark 14/8/2013). The Sanitation Working Group is chaired and managed by Ministry of Health and supported by BESIK. Partners implementing rural sanitation share their annual plans and periodically report achievements. Pers. comm. Alex Grumbley 19/9/2012. 70 Government of Timor-Leste (2013) Operationalizing the Strategic Development Plan, Transition from the National Priorities Process to the Strategic Development Plan 2011-2030. Development Policy Coordination Mechanism (DPCM). Concept paper approved by the Council of Ministers on 19 March 2013. 28 Water Supply and Sanitation in Timor Leste 7. Subsector: Rural Water Supply Priority actions for rural water supply • Establish clear policies and define government and community responsibilities for O&M of rural water systems. • Ensure budget is available for technical support systems for O&M services of community-managed schemes. • Increase functionality of water supply schemes by a) improving the spare parts supply chain, b) increasing numbers and skills of technical staff in districts, and c) professionalizing management of rural water supply through contracting of NGOs and the private sector. • Make district budgets transparent to show water supply funding from DNSA, decentralized projects, development part- ners and NGOs. • Finalize community engagement processes to improve community involvement in water supply scheme development and operation, and harmonize approaches with decentralized projects. • Develop and enforce legislation that is sensitive to traditional customs in order to protect springs and other water re- sources from illegal use. As of 2011, 60% of the rural population of Timor-Leste had Figure 7.1 Timor-Leste: Rural Water Supply Coverage access to improved water supply, an increase from 50% and Targets in 2000 (figure 7.1). Based on 2010 Census data, nearly a quarter (23%) of the rural population use a public tap, 100% Rural water supply coverage followed by protected well or spring (16%), with only 15% accessing piped water (to yard or house).71 80% 60% The number of rural people that gained access between 1995 and 2011 (172,000) exceeded the rural population 40% increase during this period (166,000), meaning that access 20% has more than kept pace with population growth. 0% The 2020 target is for 80% of rural households to have ac- 1995 2000 2005 2010 2015 2020 cess to improved water supply. This requires about 34,000 Government estimates Government target people per year in rural areas to gain access to improved JMP, improved JMP, piped water supply between 2011 and 2020. This is more than three times the average number of people (10,700 people) Sources: SDA financial model; JMP (2013); GOL (2004); MOH (2012) who gained access on an annual basis between 1995 and 2011. 71 National Statistics Directorate and United Nations Population Fund (2011) Population and Housing Census 2010, Dili: Government of Timor-Leste. Service Delivery Assessment 29 Figure 7.2 Timor-Leste: Estimates of Annual Rural Water well as clear but underfunded institutional roles. The scores Supply Capital Expenditures and Anticipated for the planning-related building blocks of rural water ser- Sources Necessary to Meet 2020 Target vice delivery highlight the need for coordination of funds from different sources, particularly integration of decentral- ized funds, government and development partner funds; a Total : $ 19,300,000 Per capita (new): $ 156 sector investment plan; and annual reviews with all stake- holders. Another bottleneck is the lack of human resources with technical and social skills to execute all facets of rural Domestic anticipated water service delivery. BESIK has supported placement of investment some new sub-district facilitators, however most districts External anticipated investment are missing much needed engineering staff, and there is a Household anticipated need for people with technical skills such as drillers, weld- investment ers, plumbers, water supply technicians, etc.72 Deficit Figure 7.3 Timor-Leste: Estimates of Required and Source: SDA Estimates Anticipated Rural Water Supply Capital Expenditures to meet 2020 Target; Recent The SDA financial model estimates that in order for the Capital Expenditure Investment Estimates target to be achieved, an annual expenditure of US$19.3 million will be necessary; some US$6.4 million for new in- 20 vestments and US$12.9 million to replace new and existing stock. Assumptions are detailed in Annex 2. 15 Anticipated investment over the next three years (2013- Annual investment 2015) is almost to the level of required investment. Most of in million USD 10 this money comes from government, including decentral- ized funds. With more attention to operations and mainte- 5 nance of rural water supplies, the 2020 targets could easily be met. Greater attention to O&M will increase life span and functionality of assets; requiring less future investment in 0 replacement of schemes and saving money in the long run. Total Anticipated Recent investment investment investment requirement 2013-2015 2010-2012 Figure 7.4 shows the scorecard results for the rural water supply service delivery pathway. The scores for the rural Household Domestic Replacement water supply enabling environment are varied. The subsec- External Other New tor has national targets, policy direction from the Water De- cree 2004 (and a new Water Policy under development), as Source: SDA Estimates Pers. comm. Anor Sihombing, BESIK National Engineering Adviser, 19/9/2012; FH Designs (2009) Human Resource Capacity in the Water, Sanitation and 72 Hygiene Sector in East Timor, DFID 30 Water Supply and Sanitation in Timor Leste Figure 7.4 Timor-Leste: Rural Water Supply Scorecard Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Expansion Use Outcomes 2.5 0.8 1.5 2.5 1.5 2 0.8 0.5 2 Sufficient budget is probably available to meet the ru- make up a high proportion of unserved communities. The ral water supply targets, but only if attention is given to government’s strategy, through the MDG Suco program, operations and maintenance to ensure the water supply is to move remote households to newly built houses (with schemes continue to function. Without this attention to water and toilets) within new accessible settlements. To sustainability, progress towards targets will begin to fall date there has been very little take up of this option by behind. Funds for preventive maintenance, major repairs remote households. (beyond the capacity of local communities) and techni- cal support services to community-managed schemes Under the sustaining pillar, records are now being kept of need to be included in annual budgets. At the same time, the location and functionality of schemes through SIBS. a funding line would need to be established to allow for While many water management committees are collecting replacement of rural water assets at the end of their eco- fees for basic operations, there is no system or policy in nomic lifespan, as such replacement costs are normally place for financing and delivering effective maintenance not covered through rural water tariffs. beyond minor repairs. The unavailability of spare parts, even in Dili, and lack of standardized equipment, such as In terms of developing new services, budget allocations pumps, is a serious bottleneck in service sustainability. from both government and development partners for ru- Requisitioning spare parts through the government sys- ral water supply are executed effectively. Processes for tem can take months.73 Some positive signals of the gov- local participation and engagement are well document- ernment’s change in commitment to O&M are an increase ed by government in the Rural Water Supply Guidelines in the 2013 district operating budget, plus a 2014 budget and Community WASH Planning Manual. However, those submission for 13 rural O&M technical staff (1 per district) working in the sector thought implementation of these pro- to be recruited by DNSA and trained by BESIK. cesses could be stronger and more consistent, especially on decentralization projects where the guidelines may not The expansion building block scores red as there are barriers be followed as rigorously. The Guidelines are currently un- to the expansion of existing schemes despite this being a der review to strengthen the process and harmonize with legitimate government function. A standard exists for water decentralized projects. The most difficult and most ex- quality, as well as a professional water testing lab, but test- pensive communities to serve are low density settlements ing is rarely carried out after scheme design due to sampling in remote rural areas of the country. These communities logistics, unavailability of chemicals, and insufficient budget. 73 Pers. comm. Anor Sihombing, BESIK National Engineering Adviser, 19/9/2012; Rob Dewhirst, ADB consultant 8/6/2013 Service Delivery Assessment 31 In terms of user outcomes, access to improved water is fair- rainfall. Shifting rainfall patterns and other potential effects of ly equitable, with 43% of the rural population in the lowest climate change could have serious impacts on water supply wealth quintile having access, and 77% in the highest quin- systems including availability of water resources in general. tile. This is also due to government policy that focuses on In addition, water sources are not properly controlled and public standpipes and considers this an appropriate level of need protection against illegal use and overuse eg. irrigation. service. Piped connections to individual households remain This requires a coordinated approach between government at a low level of 14%, with only 3% of the poorest rural agencies and integrated catchment management. quintile having access to individual house connections, and 28% among the richest quintile.74 National level government officials attended training in late 2012 on adapting to climate change including water re- Timor-Leste does not have abundant natural water resourc- sources, sanitation, drainage and solid waste. As yet there es. A significant number of water systems rely on spring are no plans or budgets for addressing climate change risk catchments and ground water sources that are recharged by and implementing risk reduction strategies at local level. 74 UNICEF/WHO Equity analysis for East Asia Pacific using DHS 2009 data. 32 Water Supply and Sanitation in Timor Leste 8. Subsector: Urban Water Supply Priority actions for urban water supply • Develop a roadmap for urban water sector reform and regulatory framework that will increase the autonomy of DNSA/ service providers, introduce incentives to drive performance improvements and establish separate regulatory functions • Roll out wider tariff reform to fund operations and maintenance and increase sustainability of water systems • Reinforce coordination among agencies involved in local planning, urbanization, water supply, and drainage including district coordination • Improve water quality of service provision, including testing regimes and disclosure • Introduce socialization programs and sanctions to control illegal connections and reduce water wastage Figure 8.1 Timor-Leste: Urban Water Supply Coverage Approximately 93% of the urban population had access to and Targets improved water supply in 2011 (figure 8.1). However the lev- el of household connections is low with fewer people having direct access to a piped water service than use other forms 100% of improved water supply. According to the 2010 Census, Urban water supply coverage 80% 41% of urban households have individual connections with piped water on to their premises. Significant sections of the 60% population still rely on public taps (24%), tubewells or bore- 40% holes (16%), and protected springs (8%). The number of urban people that had access to improved water supply in 20% 2011 (304,000) has more than doubled compared with that in 1995 (129,000), suggesting access has more than kept 0% 1995 2000 2005 2010 2015 2020 2025 pace with population growth and high rates of urbanization. Government estimates Government target JMP, Improved JMP, Piped The 2020 target is for 100% of urban households to have access to improved water supply. This requires about Sources: SDA financial model. JMP (2013); GOL (2004), GOL NSEDP7 (2015 target); MOH 21,766 people per year in urban areas to gain access to im- (2012) Service Delivery Assessment 33 proved water supply between 2011 and 2020. This is twice Figure 8.3 Timor-Leste: Estimates of Required and the average number of people (10,967 people) who gained Anticipated Urban Water Supply Capital access on an annual basis between 1995 and 2011. While Expenditures to meet 2020 Target; Recent the increase in percentage terms from 93% to 100% ac- Capital Expenditure Investment Estimates cess appears achievable based on past trends, a challenge 25 to attaining this target is keeping pace with rapid urbaniza- tion. Annual investment in million USD 20 In order to meet the government’s 2020 target of 100%, an 15 annual expenditure of US$20.1 million will be necessary; some US$8.9 million for new investments and more than half the requirement - US$11.2 million – is to replace new 10 and existing stock (see figure 8.2 and 8.3). The average amount of investment anticipated for the next three years 5 comes close to meeting the required investment, and has increased compared to estimates of recent levels of invest- 0 ments. However this relatively “modest” deficit might be Total Anticipated Recent misleading as a large proportion of anticipated investment investment investment investment requirement 2013-2015 2010-2012 has been earmarked for Dili water supply, and other urban centers may miss out. Assumptions are detailed in Annex 2. Household Domestic Replacement External Other New Figure 8.2 Timor-Leste: Estimates of Annual Urban Source: SDA Estimates; see Annex 2 for further details. Water Supply Capital Expenditures and Anticipated Sources Necessary to Meet 2020 Target Total : $ 20,100,000 The service delivery pathway for urban water has a strong Per capita (new): $ 368 enabling environment but has bottlenecks in achieving ser- vice sustainability. Clear targets articulated at the national and ministerial level provide direction, and are supported Domestic anticipated investment by policy statements and clear institutional responsibilities. External anticipated Improvements in sector coordination (especially between investment central level and districts), annual reviews, costed invest- Household anticipated ment plans, human resource capacity, and increased and investment reliable budget, would strengthen the urban water sector Deficit foundation. The subsector is seriously underfunded if piped water coverage is to increase, and O&M is supported. Source: SDA Estimates. 34 Water Supply and Sanitation in Timor Leste Figure 8.4 Timor-Leste: Urban Water Supply Scorecard Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Expansion Use Outcomes 3 1.1 2 2 1 2 0 0.5 2 In the developing pillar of urban water, budget utilization Lack of revenue from user fees restricts the execution of is high. Processes for local participation and reducing in- operations and maintenance necessary to maintain a qual- equality tend to be donor-driven and are not mainstreamed ity service which in turn users are willing to pay for. In other into national policies or guidelines as is the case for the ru- words, without tariffs the direct accountability between ral water subsector. Although national drinking water stan- customer and service provider is absent. Tariffs used in dards exist, water quality monitoring is not systematically the subzone trials are identical to those in the 2004 Water carried out outside of Dili, due to the cost, time, and logis- Decree, and while deemed adequate for present circum- tics of collecting samples and transporting them between stances, a tariff policy and review process will need to be district towns and the DNSA laboratory in Dili. developed in future that rationally sets prices for water. Tar- iff reform would also need to address greater autonomy for The sustaining pillar of the urban water service delivery DNSA to retain and control revenues rather than the Ministry pathway has serious weaknesses. Non-revenue water of Finance so that O&M can be effectively addressed. This is close to 100%.75 There are discrete trials of metering reform would require a utility approach with autonomous and tariff collections currently underway in piped water service provision and regulation functions to be separated. subzones in Dili that were upgraded with ADB financ- A regulation study would be needed to assess the best in- ing. Although earlier ADB technical assistance supported stitutional and organizational arrangements for hosting eco- training and procurement of equipment to support the nomic and service regulation. reintroduction of tariffs including billing and collection, a positive step is that DNSA is now continuing the pilot with- The imposition of tariffs was assumed to happen and did out support from ADB. The pilot subzones represent a not emerge as a strong priority in the stakeholder consul- small proportion of the total urban service area that could tations. However, the need for financing and implementing generate income from water sales. Wider introduction of operations and maintenance of urban water systems was user fees would first require capital investment to replace a priority. pipes and upgrade services, and a comprehensive social- ization process to inform people about laws and obliga- Another major weakness is the lack of an independent and tions of both customer and service provider. 76 The valu- accountable water utility with autonomy in decision making able experiences from the Dili trials can inform a broader for investment planning, human resources, and procure- tariff implementation program. ment. As a government entity, DNSA only has autonomy 75 Non-revenue water is measured as the difference between the volume of water produced in a system and the volume of water billed. 76 During SDA workshops, DNSA staff stated they had already experienced abuse and physical threats when delivering tanker water in some areas. Service Delivery Assessment 35 in minor administrative matters, with all other decisions re- come critical for Dili as the major urban center and nation’s ferred to government. This is a serious constraint to day- capital. to-day operations, especially for district towns that already have logistic and communication difficulties between dis- Given the high level of access to improved water supply, trict towns and the national DNSA in Dili. Also as a gov- Timor-Leste is well on its way to meeting targets for access ernment entity, without operational control, DNSA has no to improved water. However while access to piped water incentive to improve performance of water supply services is around 65% (household connections and public taps), as there is no direct benefit in doing so. the reality is that for most people in district towns and Dili, piped water is only available a few hours per day.78 In Dili The national assessment of climate change and disas- the poor service is largely the result of missing or aging pipe ter risk considers the impact of water shortages.77 While networks and inadequate demand management through emergency procedures are in place and funding is avail- tariffs and regulation. The overall risk of this service delivery able in the event of a natural disaster, proactive climate pathway is that capital investment without the necessary adaption strategies and climate proofing have yet to be reforms will translate into unsustainable services, leading to integrated into urban water supply services. This will be- sub-optimal user outcomes. 77 Government of Timor-Leste (2010) National Adaptation Programme of Action (NAPA) On Climate Change. Dili: Ministry for Economy And Development, Secretary of State for Environment 78 Piped water access figures from National Statistics Directorate and United Nations Population Fund (2011) Population and Housing Census 2010, Social and Demographic Characteristics, Volume 3, Dili: Government of Timor-Leste 36 Water Supply and Sanitation in Timor Leste 9. Subsector: Rural Sanitation and Hygiene Priority actions for rural sanitation and hygiene • Increase budget allocation for rural sanitation promotion and marketing (“software”) to implement the National Basic Sanitation Policy • Increase human resources and build capacity of community health workers, sanitation promoters, local volunteers, to achieve open defecation free sucos • Strengthen sanitation markets and ensure supplies of sanitation materials and services in all 13 districts • Strengthen the targeting of sanitation subsidies as part of the vulnerable households program and ensure an appropriate delivery mechanism that does not undermine a market-based approach • Develop integrated national and district plans for increasing sanitation access; monitor and evaluate these plans • Improve subsector coordination, including formalizing the national Sanitation Working Group and improving basic sanita- tion working groups at the district level Data from JMP show that just over a quarter (27%) of peo- habits highlights the need for strengthened behavior change ple living in rural areas had access to improved sanitation communications, not just a focus on building toilets. facilities in 2011 (figure 9.1) with 6% sharing facilities. Ac- cording to the 2010 Census, the most common improved Figure 9.1 Timor-Leste: Rural Sanitation Coverage and sanitation facility is a pit latrine with a slab (11%), followed Targets by VIP latrine (8%). There has been a small decrease in per- 100% centage coverage rates over the period 1995 to 2011. In Rural improved sanitation absolute terms, this means that the number of people with 80% access to an improved facility has been almost stable, with coverage 60% only 5,160 people gaining access during the period. More recently, NGOs and the BESIK program report much higher 40% numbers of people with access to improved toilets between 20% 2010-2013. For example, under the BESIK program at least 30,000 people have gained access to an improved latrine 0% during this period.79 These numbers are not reflected in the 1995 2000 2005 2010 2015 2020 2010 national census or the latest JMP data so the recent Government estimates Government target rural sanitation access rates may be more positive. How- JMP, improved JMP, improved + shared ever regression, or return to open defecation, is a serious Sources: SDA financial model, JMP 2013a and Timor-Leste 2010 Census. and real challenge to increasing access. This return to old 79 Pers. comm. Keryn Clark, Program Manager BESIK program, 12/9/13 Service Delivery Assessment 37 The 2020 target (derived from the Sanitation Strategic Plan be successful. Sufficient funding is also required for mar- 2030 target of 100%) is for 68% of the rural population to ket development — to make appropriate, affordable toilets have access to improved sanitation facilities. This requires easily available to rural households — as well as for gov- 51,700 people per year in rural areas to gain access to im- ernment operational budgets, and capacity building. These proved sanitation between 2011 and 2020, or 161 times the software costs are estimated at US$976,000 annually and average number of people (320 people) who gained access are in addition to the annual capital expenditure required for annually between 1995 and 2011.80 rural sanitation in figure 9.2. In order to meet the government’s 2020 target of 68%, it Much of the investment in domestic facilities has been ini- is estimated that an annual expenditure of US$2.9 million tiated and funded by householders themselves because, is necessary, for new investments and to replace new and until recently, most promotional projects by government existing stock (see figure 9.2 and 9.3). Sanitation is con- and development agencies were short term and on a fairly sidered a household investment decision so to achieve the small scale. Such projects tended to promote relatively 2020 target, households need to be motivated to invest expensive toilet designs and to rely heavily on the use of in new toilets and in replacing them after their functional hardware subsidies as an incentive for toilet construction. lifespan (see details in annex 2). Current efforts in sanitation The National Action Plan indicates that in future, hard- promotion, including Community-led Total Sanitation, and ware subsidies should be provided only for the poorest marketing will have a positive impact on progress but data and most remote communities, following the successful do not show this yet. This “software” for sanitation promo- piloting of Community-Led Total Sanitation (CLTS) in re- tion, and behavior change needs funding commitment to cent years. Figure 9.2 Timor-Leste: Estimates of Annual Rural Figure 9.3 Timor-Leste: Estimates of Required and Sanitation Capital Expenditures and Anticipated Rural Sanitation Capital Anticipated Sources Necessary to Meet Expenditures to meet 2020 Target; Recent 2020 Target Capital Expenditure Investment Estimates Annual investment in million USD 3.5 3.0 Total : $ 2,900,000 Per capita (new): $ 19 2.5 2.0 1.5 Domestic anticipated investment 1.0 External anticipated 0.5 investment 0.0 Household anticipated Total Anticipated Recent investment investment investment investment Deficit requirement 2013-2015 2010-2012 Household Domestic Replacement External Other New Source: SDA Estimates Source: SDA Estimates 80 Authors’ calculations using JMP access and population data 38 Water Supply and Sanitation in Timor Leste Figure 9.4 Timor-Leste: Rural sanitation scorecard Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Uptake Use Outcomes 3 1.1 2 2 1.5 2 0.8 2 0 Since households will continue to be the predominant eration between stakeholders, an annual multi-stakeholder source of capital financing, the deficit indicated in Figure review is needed to closely monitor the annual progress to- 14 below is in fact a deficit in household financing. Even the wards targets and identify reasons for slow progress if the anticipated household investments might not, in practice, country is to successfully intensify efforts to meet targets. materialize — especially if government and development The recent draft Sanitation Strategy and monitoring tools partners devote insufficient resources to sanitation promo- such as SIBS provide valuable data that could be utilized tion and supply side development and so fail to elicit house- in a regular review so that all stakeholders are working to- hold investments. gether in a coordinated fashion. The budgeting process is clear and transparent, however more money needs to be The sanitation component of the National Action Plan en- allocated to the subsector for “software”: human resourc- visages a substantial scaling up of sanitation and hygiene es, operational budgets, training for sanitation and hygiene promotion, with the bulk of the funding needs arising from promotion, marketing, incentives, program supervision and the costs of promotion and marketing. As with rural wa- monitoring. ter supply, poor and remote communities are prioritized for support but implementation of the plan depends on Depart- The adoption of the PAKSI sanitation promotion approach ment of Hygiene together with the provincial departments by government and development partners provides a uni- developing a detailed sector investment plan, based on the fied framework for achieving sanitation targets. However outline provided in the Action Plan, and securing funding this approach must be actively supported and funded by from government and development partners. the government in order to scale up and deliver on the full implementation potential. PAKSI operationalizes the ob- The rural sanitation service delivery has good enabling jectives of the National Basic Sanitation Policy, covering foundations in place to support the scaling up needed to hygiene and solid waste, elimination of open defecation, reach 2020 targets, yet weaknesses emerge in the sustain- building hygienic toilets, using handwashing facilities, dis- ing area of the pathway. With clear targets, a sanitation posing of solid waste safely and managing wastewater. With policy, and well defined institutional roles, Timor-Leste has BESIK support, the PAKSI program is currently being trialed a strong framework. While there are various subject reviews by Ministry of Health in 15 subdistricts and 164 sucos with in place and forums for technical issues such as the Sani- training of community health workers/sanitation motivators tation Working Group, and generally good informal coop- underway since the first quarter of 2013. PAKSI is also be- Service Delivery Assessment 39 ing trialed concurrently in selected sucos in four districts by Rural sanitation is estimated to be off track to meet the national NGOs.81 These efforts, including financing of sub MDG targets, which will set it back in achieving longer term district sanitarians and training of facilitators, will need to be 2020 targets unless intensive scaling up occurs soon. Ac- replicated in the remaining subdistricts of Timor-Leste in or- cording to WHO/UNICEF analysis, those missing out on der to meet targets. Developing strong links between PAKSI improved sanitation are the poorest 20% of rural residents, and sanitation market development will also be needed to who are 12 times less likely to have an improved toilet than enable households to either buy or build toilets once their the wealthiest 20% of rural households. motivation is “triggered”. The focus on rural sanitation in the last three years has Timor-Leste has a history of conducting useful research likely resulted in an increase in access (which will not be (on topics such as handwashing with soap, WASH and dis- known until the next census or national survey), but more ability access, sanitation marketing) that has contributed to remains to be done. To help redress inequalities in sanita- evidence-based rural sanitation and hygiene approaches. tion access, a subsidy program for vulnerable households to increase access to sanitation was piloted by the gov- A challenge to scaling up rural sanitation is the availability ernment in 2011-2012, however budget uncertainty and of sanitary products and services such as toilets pans and shortcomings in targeting the poor have hampered imple- construction materials and skilled sanitation personnel in mentation.82 The program is being evaluated and is likely to remote rural areas, where poor roads and transport make be relaunched in 2015. Without such a program it will be access difficult and increase the price of goods. These bot- difficult for the bottom 20% of rural households to access tlenecks in the supply chain are being addressed through sanitation, however, targeting and delivery mechanisms of development of easily transportable sanitation products, subsidies for poor and vulnerable households need to be and training of the private sector, but more needs to be carefully designed, so as to i) incentivize usage of facilities, done to ensure there is a cost effective market for sanitation ii) align with community open defecation free outcomes and in all districts. Increased government support and incen- iii) minimize distortion of market-based approaches. tives for the private sector could help overcome these chal- lenges. Improvements in rural road networks will benefit the expansion of the sanitation market. 81 Ministry of Health sanitarians are trialing PAKSI in 15 subdistricts in Baucau, Bobonaro and Liquica; national NGOs are trialing the approach in sucos obtaining a water supply system in Lautem, Manatuto, Ainaro and Covalima. 82 Program of Assistance for Basic Sanitation. This policy uses established criteria of the Ministry of Social Solidarity. 40 Water Supply and Sanitation in Timor Leste 10. Subsector: Urban Sanitation and Hygiene Priority actions for urban sanitation and hygiene • Implement Dili Sanitation and Drainage Master Plan stage 2 • Prepare Sanitation Master Plans for the remaining 12 district capital towns (excluding Dili) • Improve septage collection and maintenance of septage facilities in all towns • Increase the human resources capacity for sanitation in each district capital town according to the population size of each town and sanitation needs • Increase community awareness of urban sanitation roles, responsibilities, and obligations of government and households By JMP estimates, 68% of the urban population had ac- The country is off-track in meeting the urban sanitation cess to improved sanitation in 2011 (figure 10.1), and was target of 93% by 2020. Meeting this target requires about as high as 84% when shared facilities are counted.83 Ac- 26,960 people gaining access to improved sanitation each cording to the 2010 Census the majority of toilets are pit year between 2011 and 2020. This is more than three times latrines with a slab (37%), followed by pour flush to a pit higher than the rate of annual increase (7,778 people per or septic tank (24%), and VIP latrines (20%). Smaller sur- year) reported for 1995 to 2011. veys in Dili and Baucau indicate that the majority of toi- lets in these urban centers are water flush toilets, but few Figure 10.1 Timor-Leste: Urban Sanitation Coverage households ever empty their pit or septic tank suggesting and Targets widespread leaching of septage into the ground.84 Very little 100% urban wastewater is treated with only Dili and three of the Urban improved sanitation thirteen district capitals having treatment ponds to receive 80% septage and those that do exist in Manatuto, Baucau and coverage 60% Suai are not well maintained. 40% Between 1995 and 2011 access to improved sanitation 20% increased by 17%, and in absolute terms, the number of people with access to improved sanitation has more than 0% doubled from an estimated 97,920 in 1995 to 222,360 in 1995 2000 2005 2010 2015 2020 2011. However the increase in number of people gaining Government estimates Government target access during the period (124,000) has not quite kept pace JMP, improved JMP, improved + shared with urban population growth (135,000).85 Sources: SDA financial model, JMP (2013). MOH and LSB (2012a) Targets agreed by national experts for the purposes of SDA. 83 In Timor-Leste sharing of toilets occurs between related family households. 84 From survey results in 2010, 97% of Dili’s and 88% of Baucau’s toilets were pour flush, however only 16% and 20% of these households respectively had ever emptied their pit. Dutton, P and Siregar, R (2010). Timor-Leste Urban Sanitation Assessment, WSP. 85 Authors’ calculations using JMP access and population data. Service Delivery Assessment 41 An average of US$13.5 million needs to be spent every year investment in Dili does not necessarily translate to greater to 2020 to meet the urban sanitation target; some US$9.8 access to improved sanitation, and largely represents an million for new investments and US$3.2 million to replace improvement of existing sanitation. The anticipated house- new and existing stock, and US$0.5 million for other infra- hold investments are expected self-investments from urban structure. The anticipated domestic investment is largely for households in their own on-site technologies (pour flush/ sewerage treatment in Dili. It is estimated that this invest- septic tank) and depend on household willingness to in- ment could serve some 9,000 households or 55,000 people vest as well as any mandatory regulations for proper onsite at a capital cost that is high because almost all capital com- treatment (tanks). ponents must be imported.86 In addition, this anticipated Figure 10.2 Timor-Leste: Estimates of Annual Urban Figure 10.3 Timor-Leste: Estimates of Required and Sanitation Capital Expenditures and Anticipated Urban Sanitation Capital Anticipated Sources Necessary to Meet Expenditures to meet 2020 Target; Recent 2020 Target Capital Expenditure Investment Estimates 16 14 Total : $ 13,500,000 Annual investment Per capita (new): $ 292 12 in million USD 10 8 Domestic anticipated investment 6 External anticipated 4 investment 2 Household anticipated 0 investment Total Anticipated Recent Deficit investment investment investment requirement 2013-2015 2010-2012 Household Domestic Replacement External Other New Source: SDA Estimates Source: SDA Estimates Figure 10.4 Timor-Leste: Urban sanitation scorecard Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Uptake Use Outcomes 2 1.1 2.5 2.0 2.0 2.0 0.0 1.0 1.0 The number of households served is calculated to the end of Stage 2 development from Table 77, Dili Sanitation and Drainage Master Plan, Summary 86 Report, 2012. At the time of writing Stage 1 was yet to commence. 42 Water Supply and Sanitation in Timor Leste The urban sanitation service delivery pathway has a rela- The sustaining pillar is the weakest for urban sanitation. The tively strong enabling environment. Access targets are stat- maintenance building block scores low as much of the fecal ed in national planning documents, although sewerage and waste generated in urban areas is not collected. None of the septage management targets do not exist. Responsibili- urban areas of Timor-Leste have centralized sewage treat- ties in the subsector are defined through the 2012 National ment facilities, and there are only four urban centers with Basic Sanitation Policy, yet there is work to be done on simple septage treatment facilities, and these are not well operationalizing the roles at district level and clarifying the maintained. Existing septic tanks and pit latrines in urban roles of SAS, Ministry of State Administration, and Ministry areas pollute shallow aquifers, particularly in Dili where the of Health. Planning of urban sanitation is one of the weaker urban populations are most dense and many parts of the city building blocks with room for improvement in coordination have a very high water table. To improve fecal waste col- of planning processes and budgeting (between both the lection and septage treatment in all urban areas, additional district and central level, and between multiple stakehold- budget will be required. ers). There is no annual multi-stakeholder review that in- cludes participation of district and central government, and The Dili Sanitation and Drainage Master Plan provides for a development partners, to agree on needs for urban sanita- staged approach to a sewerage system development with tion and review progress. Although a review of the WASH the addition of new infrastructure. However this is expen- human resources capacity was conducted in 2009, there sive and will require significant up skilling to operate and are simply not enough staff and not enough staff skilled in maintain effectively, and is unlikely to lead to any new ac- urban sanitation to support the sector.87 To improve fecal cess in the short term.88 The Dili Sanitation and Drainage waste collection and management, skills will be needed in Master Plan proposes by 2030: that water and sanitation the areas of planning and engineering design; construction; and drainage operations are managed by the same entity management, operations, and maintenance of sewage sys- preferably a utility (with water) under an operating licence; tems and sewerage/septage treatment facilities. Some re- better planning controls exist; the sanitation system is self sources and services could be sourced and/or contracted funding with revenues from customers paying for opera- out to the private sector. tions, maintenance and depreciation; and an independent regulator exists for reviewing economic performance of util- Development and delivery building blocks of urban sanita- ity and setting prices. O&M costs are not currently covered tion require some attention. Under the expenditure building by user fees (except payments collected by the private block, budget execution is good but reporting of spending sector for septic tank desludging) but charging tariffs will on urban sanitation against budget in a consolidated format become important as more sophisticated networked infra- is needed for all sources of expenditure, including donor structure is adopted. contributions. This would help improve tracking of finances. The equity building block would score better if there were While wastewater standards exist for treatment plants, plans developed and implemented for serving the urban these are not monitored.89 Expansion of services is ham- poor with sanitation, and there is good monitoring to track pered by the lack of business plans for expanding fecal this, eg. the National Census of Population, however the waste collection and treatment in towns, and low level of quality of sanitation is not monitored and the quantity of fe- encouragement for households in urban areas to take up cal waste collected has no target and is difficult to monitor. or improve their sanitation, and the absence of the pri- 87 FHDesigns, 2009. Human Resource Capacity in the Water, Sanitation and Hygiene Sector in East Timor, DFID. Lack of technical capacity was a key issue raised by stakeholders at the Sanitation Workshop June 2013. 88 Dili Sanitation and Drainage Master Plan, Summary Report, 2012 89 Private contractors are not charged for disposing of septage in Tibar treatment facility. A proposal for charging users was developed by DNSB and signed off by Ministry of Health however the Ministry of Justice did not approve it. Pers. comm. Joao de Piedade, DNSB, 6/6/2013. Service Delivery Assessment 43 vate sector in district towns other than Dili. The subsector tuto and Viqueque over the period 2013-2030 in line with could meet the access target for households in 2020 with national development targets. The master planning process more attention to low income households. Currently 32% will include a social and technical assessment to produce of urban households do not use improved toilets with the investment plans based on the best options for sanitation. lowest income quintile being three times less likely to have Once the master plans are completed, significant funding improved sanitation. will be needed for implementation, and another eight dis- trict towns will still require similar planning and infrastruc- ADB has a proposal for preparing water supply and sanita- ture development. In the longer term, such investment tion masterplans for district capitals to produce demand- plans might attract more external financing in addition to responsive investment plans for Baucau, Los Palos, Mana- domestic financing. 44 Water Supply and Sanitation in Timor Leste 11. Conclusion About 69% of Timor-Leste people have access to improved lion. The annual financing gap to meet targets is US$10.0 water, and only 39% have access to improved sanitation. million. Capital spending on sanitation planned by either Remarkable progress in water supply and sanitation cover- government or development partners is largely for major age has been achieved in the last 10 years. However, rural capital works in Dili only, yet there is a need for improved sanitation continues to lag behind. To achieve the govern- septage collection and treatment in other urban centers. No ment’s targets for 2030, by 2020 access to water should be capital expenditure by government or donor is planned for at 87% and sanitation 76%. Spending to reach the 2020 rural areas as sanitation is considered to be a household access targets requires an average of US$39.4 million each investment. year for water supply and US$16.4 million per year for sani- tation, as well as US$7 million per year to finance O&M of In terms of the service delivery scorecard, Timor-Leste per- current and future water and sanitation infrastructure, and forms adequately in the ‘enabling’ area across all subsec- about US$1 million for rural sanitation software. For wa- tors due to the presence of policy guidelines, national and ter supply, the estimated necessary capital expenditures subsector targets, and relatively clear institutional roles. amount to approximately 2.4% of the 2013 national com- Budget structures and processes are in place, however bined sources budget of US$1.6 billion. Estimated opera- funding is unpredictable and fluctuates considerably from tions and maintenance costs are 0.4% of the 2013 budget. year to year, and non-existent for essential rural sanitation software. Timor-Leste’s scores in ‘developing’ services, Estimated annual capital expenditure for the next three which relate to expenditure of funds, systems for allocating years (2013-15) by government and development partners them equitably, and securing value-for-money outputs, in- is US$29.4 million for water supply, and with assumed dicate that some improvements are required in the areas of household investments of around US$7 million, the financ- contract documentation, budget execution for major capital ing gap for water supply is limited to less then 10% of that works, prioritizing budget allocation and reporting on ex- required to meet targets. penditure as well as reducing inequality and improving con- sistent local participation in all subsectors. At the end of the Estimated annual capital expenditure on sanitation for the service delivery pathway, Timor-Leste’s scores show poor next three years (2013-2015) is US$4.7 million by govern- performance in ‘sustainability’ for all subsectors, especially ment, with assumed household investments of US$1.7 mil- for maintenance (refer to Figure 11.1). Service Delivery Assessment 45 The key bottlenecks that currently impede progress in address greater autonomy and incentives for urban water Timor-Leste’s water and sanitation sector are: providers to retain and control revenues so that O&M can • lack of autonomy and incentives for urban water ser- be effectively addressed. With improved operations and vice providers to improve service delivery maintenance, water supply systems could last longer, save • lack of funding for rural and urban water supply opera- on replacement costs, and be a more cost effective invest- tions and maintenance ment. The development of a roadmap for longer term re- • absence of a strategy for technical support and main- form in urban areas as well as the possibility to engage the tenance services to sustain functionality of rural water private sector as part of the solution to deal with weak ca- supply schemes pacities and poor O&M practices needs to be considered. • lack of promotion (“software”) for households to take up sanitation in rural areas Public funding is necessary for “software”, such as behavior • difficulty in obtaining sanitation goods and services, change communication campaigns, monitoring and regula- water supply spare parts and repair services in rural tion, and private sector development to induce households areas to invest in their sanitation facilities. In the urban sector • shortages of human resources, especially skilled tech- capital investment is needed to implement the Dili Sanita- nical staff tion and Drainage Master Plan, plan and improve sanita- • poor coordination, planning and communication be- tion in district capitals, and improve septage collection and tween central and district levels maintenance of septage facilities in all towns. • inadequate septage collection and treatment facilities in urban areas. Improvements in monitoring—improved data quality and analytical use of SIBS; performance monitoring and public Charging of user fees in the urban water sector and devel- disclosure for urban water supply; and synchronization of opment of a clear strategy to effectively support operations data from different sources into robust national monitoring and maintenance in the rural water sector would unlock system—would improve sector planning, accountability, this sustainability bottleneck. Tariff reform would need to and public support. 46 Water Supply and Sanitation in Timor Leste Figure 11.1 Timor-Leste: Subsector Scorecards RURAL WATER SUPPLY Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Expansion Use Outcomes 2.5 0.8 1.5 2.5 1.5 2 0.8 0.5 2 URBAN WATER SUPPLY Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Expansion Use Outcomes 3 1.1 2 2 1 2 0 0.5 2 RURAL SANITATION AND HYGIENE Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Uptake Use Outcomes 3 1.1 2 2 1.5 2 0.8 2 0 URBAN SANITATION AND HYGIENE Enabling Developing Sustaining Policy Planning Budget Expenditure Equity Output Maintenance Uptake Use Outcomes 2 1.1 2.5 2.0 2.0 2.0 0.0 1.0 1.0 Service Delivery Assessment 47 Annex 1: Scorecard and Evidence for Scoring The following table presents the scores and evidence for each service delivery indicator. Each indicator can score 0, 0.5 or a maximum of 1. These scores are combined to form a total score for each of the nine service delivery building blocks — policy, planning, budget, expenditure, equity, output, maintenance, expansion, user outcome. The overall building block scores for each subsector are presented in the relevant subsector sections of the report. The scores were derived from a series of workshops with the participation of several stakeholders: DNSA, SAS district staff, DNSB, Ministry of Education, ADN, district administration staff (Manututo, Liquica, Baucau, Dili), Ministry of Health, Chief Cabinet office, BESIK program, ADB, WaterAid, Red Cross, UNICEF, HTL. Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment RURAL SANITATION ENABLING Policy RWS Sector targets Are there RWS access targets in the national level Yes, there are There are No targets in the 1 National Strategic Development Plan National Strategic 1 development plan? targets for rural national development refers to 75% of rural households Development Plan (2011- water supply in targets in the plan having access to safe, reliable and 2030) - Office of the Prime the development development sustainable water by 2020 Minister plan plan but none for rural water Policy RWS Sector policy Is there a rural water policy that is agreed by Policy officially Policy drafted No policy 1 2004 Decree publicly available. Draft Water Supply Policy (Draft 2 stakeholders, approved by government, and is approved and and agreed but policy format. Applies to both urban 3 Dec 2010); Decree Law publicly available? publicly available not officially and rural. No.4/2004 approved Policy RWS Institutional roles Are the institutional roles of rural water subsector Defined and Defined but not Not defined 0.5 Defined in Decree and draft policy Water Supply Policy (Draft 3 players (national/state & local government, operationalized operationalized (rural and urban). Institutions are 3 Dec 2010); Decree Law service provider, regulator etc) clearly defined and carrying out assigned roles but No.4/2004; Water workshop operationalized? insufficient budget and resources to March 2013 fully operationalize. No regulator Planning RWS Fund flow Does government have a process for coordinating Coordination Coordination Not defined/no 0.5 Investments coordinated at the SDA financial analysis; 4 coordination multiple investments in the subsector (domestic process process process Ministry of Finance level. Donor Water workshop March or donor, eg. National grants, state budgets, donor defined and defined but not funds not actively coordinated by 2013 loans and grants etc.)? operationalized operationalized government. 49 Service Delivery Assessment 50 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Planning RWS Investment plan Is there a medium-term investment plan for rural Investment plan Exists but not Does not exist 0 No Sector Investment Plan currently. Water workshop March 5 water based on national targets that is costed, based on priority used, or under One was prepared with the first 2013 prioritizes investment needs, is published and needs exists, is preparation National government but nothing used? published and since. used Planning RWS Annual review Is there a annual multi-stakeholder review in Review of Review of No review 0 No annual review process Water workshop March 6 place to monitor subsector performance, to review performance performance or setting of 2013 progress and set corrective actions? and setting of but no setting of corrective actions corrective actions corrective actions Planning RWS HR capacity Has an assessment been undertaken of the Assessment Assessment No assessment 0.5 Assessment done including by DFID Human Resource 7 human resource needs in the sub sector to meet undertaken and undertaken but undertaken subsector, with some action taken to Capacity in the WASH sector the subsector target and is the action plan being actions being no action being address skill shortages although no in TL 2009; Water workshop implemented? implemented taken follow up since. March 2013 Budget RWS Adequacy (of Are the public financial commitments to the rural More than Between 50- Less than 50% 1 In recent years enough money going Pers comm K Clark; SDA 8 financing) water subsector sufficient to meet the national 75% of what is 75% of needs of needs towards new capital to meet national Financial analysis; Budget targets for the subsector? needed targets Books for 2011, 2012, 2013 Budget RWS Structure Does the budget structure permit the investments Yes for Yes for No 0.5 May be clear at national level but Water workshop March 9 and subsidies (operational costs, administration, investment and investment but budget comes in a package at District 2013; SDA financial analysis debt service, etc) for the rural water sector to be for subsidies not subsidies level so it is not clear if money is for clearly identified? rural or urban; also budgets published at district level do not disaggregate between rural and urban Budget RWS Comprehensive Does the government budget comprehensively More than 75% Between 50- Less than 50% 0 Donor funding eg BESIK and NGOs Water workshop March 10 cover domestic and official donor investment/ of funds to sub- 75% of funds to of funds to sub- not in budget 2013; SDA financial analysis subsidy to rural water? sector on budget sub-sector on sector on budget budget Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment DEVELOPING Expenditure RWS Utilization of What percentage of domestic funds budgeted for Over 75% Between 50% Less than 50% 1 No problem spending budget Government budget records 11 domestic funds rural water are spent (3 year average)? and 75% Expenditure RWS Utilization of What percentage of external funds budgeted for Over 75% Between 50% Less than 50% 1 No problem spending budget Water workshop March 12 external funds rural water are spent (3 year average)? and 75% 2013 as reported by BESIK and UNICEF Expenditure RWS Reporting Is rural water expenditure versus budget audited Yes for domestic Yes for domestic No 0.5 Not consolidated. Government does Water workshop March 13 and reported on in a consolidated format for all and donor expenditure public audit. Donors may do audit but 2013 sources of domestic and official donor expenditure? expenditure results are not disclosed. Equity RWS Local Are there clearly defined procedures for informing, Yes and Yes, but not No 0.5 Community role clearly defined in Water Supply Policy (Draft 14 participation consulting with and supporting local participation systematically systematically Decree and Policy, and also CAP 3 Dec 2010); Decree Law in planning, budgeting and implementing for rural applied applied process to establish Community No.4/2004; CAP guidelines, water developments? Group Managers (GMFs). • Project PDD/PDL program Cycle and Community Management legislation Process in Timor Leste Rural Water Supply Guidelines • PDL/PDD/PDID legislations Equity RWS Budget allocation Have criteria (or a formula) been determined to Yes, applied Yes, but No 0.5 Possibly a criteria in terms Water workshop March 15 criteria allocate rural water funding equitably to rural consistently not applied of population but not applied 2013 communities and is it being applied consistently? consistently consistently. Equity RWS Reducing Is there periodic analysis to assess whether Yes periodic Yes periodic No 0.5 Action plan for community exists Water workshop March 16 inequality allocation criteria and local participation procedures analysis analysis 2013 set by government have been adhered to and are published and published but not reducing disparities in access? acted upon acted upon Output RWS Quantity Is the annual number of new systems built (and Over 75% of that Over 50% of that Less than 50% 1 Enough schemes are being built Pers. comm. J Yoder BESIK; 17 systems replaced) sufficient to meet sector targets? needed to reach needed to reach of that needed to keep up with national targets, Water workshop March (including output by government directly as well as sector targets sector targets to reach sector provided that O&M is applied to 2013 through contractors and NGOs) targets sustain the schemes. If O&M is lacking then targets will slip Output RWS Capacity for Are there drinking water quality standards for rural Standards Standards No 0.5 Standards exist, but testing not Pers. comm. DNSA Water 18 promotion water and are all new installations tested? exist and new exist but new carried out laboratory staff; J Yoder installations installations not BESIK tested tested Output RWS Reporting Is the number of new schemes and their locations Yes with full Yes but without No 0.5 A listing exists that includes SAS Water workshop March 19 reported in a consolidated format each year? listing of a full listing of government schemes and those by 2013 locations locations development partners but does not include schemes built under district decentralization programs eg. PDL 51 Service Delivery Assessment 52 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment SUSTAINING Maintenance RWS Functionality Are there regular asset register updates of rural Asset register Asset register Neither 1 SIBS water and sanitation information SIBS; Water workshop 20 water infrastructure including their functional and regular but no updating systems includes scheme March 2013 status? updating of of functionality functionality. Updated quarterly. functionality Maintenance RWS Cost recovery Is there a national policy on O&M costs and are O&M policy O&M policy No O&M policy, 0 No specific policy or known costs Water workshop March 21 O&M costs known and covered from subsidies and/ exists, costs are exists, costs are costs not known 2013 or user fees? assessed and estimated and >75% covered >50% covered Maintenance RWS Spare parts Is there a system defined for spare parts supply Systems defined Systems defined Systems not 0 Nothing for rural Water workshop March 22 chain chain that is effective in all places? and spares but spares not defined 2013 available in available up to >50% of villages 50% of villages Maintenance RWS Management Do rural service providers have plans for coping Yes, the majority No. Only some No service 0 National assessment of risks from National Adaptation 23 of Disaster Risk with natural disasters and climate change? of rural service service providers provider has a climate change and natural disaster Programme of Action to and Climate providers have a have a plan for climate action includes water shortages. No local Climate Change (2010) Change plan for disaster disaster risk plan or has level planning. risk management management undertaken a and climate and climate vulnerability change change or most assessment. service providers have undertaken a vulnerability assessment. Expansion RWS Investment Are piped systems in rural areas recognized as Recognized and Recognized but Neither 0.5 Management groups "do not acquire 2004 Water Decree 24 support management entities and given technical and supported not supported any juridical personality" but are financial support to expand their systems either by required to sign agreements. DNSA government or larger utilities? is responsible for providing technical assistance to management groups. Expansion RWS Plans Are there scheme-level plans for the expansion of Yes in most rural Yes in around In a small 0 Communities have the option to Water workshop March 25 piped systems in rural areas? areas half of rural proportion, or no expand but rarely do so 2013 areas rural areas Expansion RWS Investment Are expansion costs for rural water being covered Yes in most rural Yes in around In a small 0 PDL includes some extension to PDL project records 26 finance by user fees and/or public grants? areas half of rural proportion, or no existing schemes. Covered by public areas rural areas grants User RWS Sub-sector Is the sub-sector on track to meet the stated On-track Off-track but Off-track 1 On track if investment made in Water workshop March outcomes 27 progress target? keeping up O&M. Recent progress and efforts to 2013 with population improve sustainability indicate a more growth positive outlook than JMP data. Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment User RWS Equity of use What is the ratio of improved drinking water access Less than 2 Between 2 and 5 More than 5 1 JMP shows 1.8 ratio UNICEF/WHO equity analysis outcomes 28 between the lowest and highest quintile in rural times times for EAP (2012) areas? User RWS Quality of user Of the households using an improved drinking More than 50% More than 25% Less than 25% 0 Current government policy is to Pers. comm. K Clark BESIK outcomes 29 experience water source, what proportion are using piped of households of households of households provide public standpipes as this is drinking water in the dwelling and yard/plot ? appropriate and workable. URBAN SANITATION ENABLING Policy UWS Sector targets Are there UWS access targets in the national level Yes, there are There are No targets in the 1 Strategic Development Plan refers to National Strategic 1 development plan? urban water national development 12 urban centers having access to Development Plan (2011- supply targets in targets in the plan safe 24 hour piped water by 2020. 2030); Ministry of Public the development development Approved Water Action Plan refers to Works Water Plan of Action plan plan but none for 100% access by 2020 for Dili and 2012-2017 (2012); Water urban water. district centres workshops March and June 2013 Policy UWS Sector policy Is there an urban water policy that is agreed by Policy officially Policy drafted No policy 1 Decree law applies. Draft policy Water Supply Policy (Draft 2 stakeholders, approved by government, and publicly approved, and and agreed but format. Applies to both urban and 3 Dec 2010); Decree Law available? publicly available not officially rural. No.4/2004 approved Policy UWS Institutional roles Are the institutional roles of urban water subsector Defined and Defined but not Not defined 1 Defined in Decree and policy. Water Supply Policy (Draft 3 players (national/state & local government, operationalized operationalized Operationalized. Ministry of Health 3 Dec 2010); Decree Law service provider, regulator etc) clearly defined and responsible for water quality, SAS for No.4/2004 operationalized? water supply. No separate regulator role. Planning UWS Fund flow Does government have a process for coordinating Coordination Coordination Not defined/ no 0.5 Investments coordinated at the SDA financial analysis 4 coordination multiple investments in the subsector (domestic process process process Ministry of Finance level. or donor, eg. National grants, state budgets, donor defined and defined but not loans and grants etc.)? operationalized operationalized Planning UWS Investment plans Is there a medium term investment plan for urban Investment plan Exists but not Does not exist 0.5 Annual action plan prepared that is Ministry of Public Works 5 water based on national targets that is costed, based on priority used, or under reactive to necessities. Current Five- Water Action Plan 2012- prioritizes investment needs, is published and needs exists, is preparation year plan to 2017, but because there 2017; Water workshop used? published and is no budget the plan is not costed March 2013 used Planning UWS Annual review Is there an annual multi-stakeholder review in Annual review Annual review No review 0 Possibly a review at national level, but Water workshop March 6 place to monitor subsector performance, to review of performance of performance or setting of not district level. Lack of coordination 2013 progress and set corrective actions? and setting of but no setting of corrective actions and information dissemination to corrective actions corrective actions districts. 53 Service Delivery Assessment 54 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Planning UWS HR capacity Has an assessment been undertaken of the Assessment Assessment No assessment 0.5 Assessment done including by DFID Human Resource 7 human resource needs in the sub sector to meet undertaken and undertaken but undertaken subsector, but limited follow up action Capacity in the WASH sector the subsector target and is the action plan being actions being no action being taken to address skill shortages. in TL 2009 implemented? implemented taken Budget UWS Adequacy Are the public financial commitments to the urban More than Between 50 and Less than 50% 0 Seriously underfunded for achieving Water workshop March 8 water subsector sufficient to meet the national 75% of what is 75% of needs of needs piped water targets. Millions of $ 2013. Budget Books for targets for the subsector? needed required. 2011, 2012, 2013 Budget UWS Structure Does the budget structure permit investments and Yes for Yes for No 1 Structure is clear but not broken out SDA financial analysis 9 subsidies (operational costs, administration, debt investment and investment but to subsector service, etc) for the urban water sector to be clearly for subsidies not subsidies identified? Budget UWS Comprehensive Does the government budget comprehensively More than 75% Between 50- Less than 50% 1 Funds are on budget, but budget is SDA financial analysis 10 cover domestic and official donor investment/ of funds to sub- 75% of funds to of funds to sub- highly centralized subsidy to urban water? sector on budget sub-sector on sector on budget budget DEVELOPING Expenditure UWS Utilization of What percentage of domestic funds budgeted for Over 75% Between 50% Less than 50% 1 High budget execution in Timor-Leste SDA financial analysis 11 domestic funds urban water are spent (3 year average)? and 75% generally Expenditure UWS Utilization of What percentage of external funds budgeted for Over 75% Between 50% Less than 50% 1 High budget execution eg. ADB ADB Budgets 2010-2012 12 external funds urban water are spent (3 year average)? and 75% budget and actual: 87% in 2010, 71% in 2011, and 147% in 2012 Expenditure UWS Reporting Do urban utilities (national or 3 largest utilities) have Audited accounts Balance sheet No balance sheet 0 No utilities. No balance sheet. Dili SDA financial analysis; 13 audited accounts and balance sheet? and balance but not audited district does have a list of assets but DNSA reports sheet entity is not independent so has no liabilities and there is no independent audit (only internal government audit only). Equiity UWS Local Are there clearly defined procedures for informing, Yes and Yes, but not No 0.5 Participation guidelines not clearly SDA assessment 14 participation consulting with and supporting local participation systematically systematically defined for urban sector, usually as in planning, budgeting and implementing for urban applied applied a requirement from donors eg. ADB water developments? projects. Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Equiity UWS Budget allocation Have criteria (or a formula) been determined Yes, applied Yes, but No 0.5 Priority towns exist and there are SDA assessment; Water 15 criteria to allocate urban water funding equitably to consistently not applied believed to be equity criteria at the workshop March 2013 urban utilities or service providers and among consistently National level, but unclear if funding municipalities and is it being consistently applied? is consistently allocated to district towns equitably. Equity UWS Reducing Have urban utilities or service providers (national Plans developed Plans developed No plans 0 No evidence of this. SDA assessment 16 inequality or in 3 largest cities) developed and implemented and implemented but not documented specific plans for serving the urban poor? implemented Output UWS Quantity Is the annual expansion of HH connections and Over 75% of that Over 50% of that Less than 50% 0.5 Urban water appears on track to meet JMP 2013 report 17 stand posts in urban areas sufficient to meet the needed to reach needed to reach of that needed targets but not for piped water access subsector targets? sector targets sector targets to reach sector targets Output UWS Quality of water Are there drinking water quality standards for urban Standards Standards exist No standards, 0.5 GoTL Water quality standards exist DNSA testing laboratory. 18 water that are regularly monitored and the results exist, there is and there is or standards (WHO standards until 20120). Water workshop March published? a surveillance a surveillance exist but are not Monitoring for Dili: bacteriological 2013 program, and program but monitored testing monthly, chemistry testing results are there is no 6-monthly, physical annually – but published publication of results not published. District towns results only when outbreak or problem. Dili monitored at public tap - sample 10 out of 500 monthly. In Manututo each of 4 zones has 3 samples done every time. Output UWS Reporting Is the number of additional household connections Yes with full Yes but without No 1 Every year the number of new Water workshop March 19 made and stand posts constructed reported on in a listing of a full listing of connections is reported 2013 consolidated format for the nation each year? connections connections SUSTAINING Maintenance UWS Functionality What is the weighted average percentage of non Less than 20% 20% to 40% More than 40% 0 Significant water losses in district Pers. comm. ADB Consultant 20 revenue water across urban utilities (national or 3 towns; non-revenue water almost Graham Jackson largest utilities) (last 3 years average)? 100% Maintenance UWS Cost recovery Are all O&M costs for utilities (national or 3 largest Operating ratio Operating ratio Operating ratio 0 No user fees charged. Insufficient DNSA; Water workshop 21 utilities) being covered by revenues (user fees and/ greater than 1.2 between 0.8 below 0.8 budget for O&M March 2013 subsidies) (last 3 years average)? and 1.2 Maintenance UWS Tariff reviews Are tariff reviews regularly conducted using a Conducted, Conducted but Not conducted 0 Tariffs published in 2004 decree but 2004 Decree; Water 22 process and tariffs adjusted accordingly and adjusted and not adjusted not updated as charging is introduced workshop March 2013 published? published in limited subzones in Dili during 2013. 55 Service Delivery Assessment 56 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Maintenance UWS Management Do utilities (national or 3 largest utilities) have Yes, the majority No. Only some No service 0 National Assessment of risks National Adaptation 23 of Disaster Risk plans for coping with natural disasters and climate of urban service service providers provider has a from climate change and natural Programme of Action to and Climate change? providers have a have a plan for climate action disaster includes water shortages. Climate Change (2010) Change plan for disaster disaster risk plan or has Procedures exist for emergency risk management management undertaken a response at local level and and climate and climate vulnerability responsibility allocated to district change change or most assessment. management committee. Emergency service providers funding available if a natural disaster have undertaken occurs eg. landslide destroying pipes, a vulnerability however the response is reactive and assessment. there is no forward planning. Expansion UWS Autonomy Do utilities or service providers (national or Yes in all aspects In all aspects No 0 Autonomy only in minor administrative ADB Sector Assessment 24 3 largest) have operational decision-making except matters 2011 (District Towns PPTA) autonomy in investment planning, HR, finance investment (separate balance sheet) and procurement planning management? Expansion UWS Plans Do service providers (national/state or 3 largest Business plans Business plans No business 0.5 Some "business" planning in Water workshop March 25 utilities) have business plans for expanding access for increasing for increasing plans connection with projects eg. Koica 2013 to urban water? access being access being desalination plant. There are plans implemented prepared for expansion but these are not really business plans. Expansion UWS Borrowing Are utilities allowed by law to access and are they Allowed and Allowed but not Not allowed 0 DNSA is not an independent utility. Pers. comm. DNSA staff 26 accessing commercial finance for expansion? accessing accessing Not allowed. User UWS Sub-sector Is the sub-sector on track to meet the stated On-track Off-track but Off-track 1 On track for access to improved water JMP 2013 report Outcomes 27 progress target? keeping up supply (93%) but not for piped water with population which was 45% in 2011. growth User UWS Equity of use What is the ratio of improved drinking water access Less than 2 Between 2 and 5 More than 5 1 Ratio is around 1.4 times, which UNICEF/JMP analysis of Outcomes 28 between the lowest and highest quintile in urban times times is supported by the high coverage 2009 DHS data areas? figures User UWS Quality of user What is the average number of hours of service per More than 12 6 to 12 hours Less than 6 0 Less than 30% of Dili's population ADB Sector Assessment; Outcomes 29 experience day across urban utilities? (Weighted by number of hours per day per day hours per day has access to continual water supply; WSP Urban Sanitation HH connections per utility)? hours of supply 3-16/day. Frequent Assessment (2010) outages and limited hours of supply for district towns. Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment RURAL WATER SUPPLY ENABLING Policy RSH sector targets Are there RSH access targets, for households and/ Targets for Targets for No rural 1 Separate targets in National Strategic National Strategic 1 or communities, in the national level development rural household rural household sanitation Development Plan but more specific Development Plan 2011- plan? access and access in the targets in the targets developed in draft Sanitation 2030; draft National communities development development Strategy: rural household coverage Sanitation Strategy 2012 becoming ODF in plan plan and ODF communities 100% by the development 2030, 68% households plus 3% plan shared targets for 2020 and 77% ODF sucos and Districts Policy RSH Sector policy Is there a rural sanitation policy, that is agreed by Policy officially Policy drafted No policy 1 National Sanitation Policy approved National Sanitation Policy 2 stakeholders, approved by government, and publicly approved and and agreed but by Council of Ministers 2012. Widely 2012 available? publicly available not officially consulted. approved Policy RSH Institutional Are the institutional roles of rural sanitation Defined and Defined but not Not defined 1 Roles of subsector actors are National Sanitation Policy 3 Roles subsector players (national/state & local operationalized operationalized described in the National Sanitation 2012 government, service provider, regulator etc) clearly Policy and are operationalized. defined and operationalized? Planning RSH Fund flow Does government have a process for coordinating Coordination Coordination Not defined/ no 0.5 Based on talk with Sr. Mario Abel from Pers. comm. Sr Mario Abel 4 coordination multiple investments in the subsector (domestic process process process DNSA Planning Department, there (DNSA); Sanitation workshop or donor, eg. national grants, state budgets, donor defined and defined but not seemed to be no specific process for March 2013 loans and grants etc)? operationalized operationalized coordinating multiple investments in the subsector. Stakeholders feel ministerial coordination is not ideal, better cross sector coordination needed Planning RSH Investment plan Is there a medium-term investment plan for rural Investment plan Exists but not Does not exist 0.5 Arbitrary plan exists but not based Sanitation workshop March 5 sanitation based on national targets that is costed, based on priority used, or under on targets 2013 prioritizes investment needs, is published and needs exists, is preparation used? published and used Planning RSH Annual review Is there a annual multi-stakeholder review in Review of Review of No review 0 Some multi stakeholder reviews eg. Sanitation workshop March 6 place to monitor subsector performance, to review performance performance or setting of Joint Sanitation Evaluation 2009, 2013 progress and set corrective actions? and setting of but no setting of corrective actions CLTS review. Health does have a corrective actions corrective actions multistakeholder annual review but across entire health sector. Annual reviews tend to be project related. 57 Service Delivery Assessment 58 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Planning RSH HR Capacity Has an assessment been undertaken of the Assessment Assessment No assessment 0.5 Assessment done including by DFID Human Resource 7 human resource needs in the sub sector to meet undertaken and undertaken but undertaken subsector, but follow up action has Capacity in the WASH sector the subsector target and is the action plan being actions being no action being been weak to address skill shortages. in TL 2009 implemented? implemented taken Budget RSH Adequacy (of Are the public financial commitments to the rural More than Between 50- Less than 50% 0 Not sufficient according to Sanitation workshop 2013. 8 financing) sanitation subsector sufficient to meet the national 75% of what is 75% of needs of needs stakeholders. At least $1m needed in Budget Books for 2011, targets for the subsector? needed subsidies 2012, 2013 Budget RSH Structure Does the budget structure permit investments and Yes for Yes for No 1 Yes can be clearly identified but not SDA financial analysis 9 subsidies (operational costs, administration, debt investment and investment but disaggregated by rural and urban service, etc) for the rural sanitation sector to be for subsidies not subsidies sanitation clearly identified? Budget RSH Comprehensive Does the government budget comprehensively More than 75% Between 50- Less than 50% 1 Disaggregation by rural and urban not SDA financial analysis 10 cover domestic and official donor investment/ of funds to sub- 75% of funds to of funds to sub- clear but clear in budget. subsidy to rural sanitation? sector on budget sub-sector on sector on budget budget DEVELOPING Expenditure RSH Utilization of What percentage of domestic funds budgeted for Over 75% Between 50% Less than 50% 1 High budget execution in Timor-Leste SDA financial analysis 11 domestic funds rural sanitation are spent (3 year average)? and 75% generally, although stakeholders said it was difficult to disburse funds because of up to three sources including PDL. Expenditure RSH Utilization of What percentage of external funds budgeted for Over 75% Between 50% Less than 50% 0.5 Difficult to answer for donor sources SDA financial analysis 12 external funds rural sanitation are spent (3 year average)? and 75% but likely to be satisfactory. Expenditure RSH Reporting Is rural sanitation expenditure versus budget Yes for domestic Yes for domestic No 0.5 Unable to answer for donor sources Sanitation workshop March 13 audited and reported on in a consolidated format and donor expenditure 2013 for all sources of domestic and official donor expenditure expenditure? Equity RSH Local Are there clearly defined procedures for informing, Yes and Yes, but not No 0.5 Community responsibilities PAKSI Process, RWASH 14 participation consulting with and supporting local participation systematically systematically and participation documented. Sector Strategy to 2011, in planning, budgeting and implementing for rural applied applied Stakeholders felt participation Sanitation Strategic Plan; sanitation developments? processes were systematically applied Sanitation workshop March if introduced by a donor. There is a 2013 process but not systematically applied the way it is for water supply. Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Equity RSH Budget allocation Have criteria (or a formula) been determined Yes, applied Yes, but No 0.5 Have heard this exists but not Sanitation workshop March 15 criteria to allocate rural sanitation funding equitably consistently not applied coordinated or applied consistently. 2013 across rural communities and is it being applied consistently Criteria have been developed for consistently? vulnerable households for sanitation but they don't work--funding doesn't always go to poorest No district distribution in budget but some sensitivity to look at vulnerable, disabled, low income people Equity RSH Reducing Is there any (periodic) analysis carried out to assess Yes periodic Yes periodic No 0.5 No specifically periodic but analysis Sanitation Strategic Plan 16 inequality disparities in access and are measures (policy or analysis analysis of disparities as part of the Sanitation programmatic actions) to reduce inequalities taken published and published but not Strategic Plan. Yet to be acted on. as a result? acted upon acted upon Output RSH Quantity Is the annual expansion of rural households gaining Over 75% of that Between 75% Less than 50% 0.5 Difficulty in calculating due to SDA analysis. Pers. comm. 17 access to safe sanitation sufficient to meet the needed to reach and 50% of of that needed to variance between JMP 2010 and K. Clark. subsector targets? sector targets that needed to reach targets JMP 2011 data that show a decrease achieve targets in access. Sanitation unlikely to meet MDGs. Open defecation has been reducing and recent increased uptake of improved sanitation. To achieve target requires consistently high annual expansion. Output RSH Capacity for Is there enough capacity - staff, expertise, tools, Yes, capacity Gaps in capacity Deficits in 0.5 Enough capacity (numbers of staff) BESIK Strategic Plan (2008- 18 promotion materials - to deliver a sanitation program at scale, exists and but approaches capacity and but the effectiveness of process 2011) Evaluation Report. using tailored community-based and/or other approaches are generally being no community- not well developed, although this is Sanitation workshop March approaches? being used at used at scale based currently being addressed through 2013 scale approaches at training. Enough materials exist scale Output RSH Reporting Does the government regularly monitor and Quality, Quality or Neither 1 SIBS database tracks sanitation SIBS system documents; 19 report on progress and quality of rural sanitation quantity and quantity facilities up to aldeia level, including pers. comm. K. Clark. access, including settlement-wide sanitation, and disseminated household and community ODF. Sanitation workshop March disseminate the results? Some problems with lack of timely 2013, including SIBS data collection in certain localities. presentation. Reports given to district managers each month. Health promotion and sanitation also has kubasa reporting system. 59 Service Delivery Assessment 60 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment SUSTAINING Markets RSH Supply-chain Does the supply-chain for sanitation products meet Yes for quantity, Yes, but not for No 0 Products unavailable in remote areas Sanitation Marketing 20 household needs (ready availability, quantity and cost, standards all of quantity, due to topography, transport, cost, Strategy Development cost), satisfy government standards and reach to and reach cost, standards product type, lack of businesses Report (2012), Sanitation unserved areas? and reach stocking products. Development Suppliers in T-L Study of prototypes but not scaled up. (2010); WaterAid Lessons Implementation begun on sanitation Learned from Sanitation marketing to improve supply chain. Marketing in Timor-Leste (2011) Markets RSH Private sector Is there sufficient mason/artisan/small business Yes for quantity Yes, for quantity Neither 0.5 Insufficient number of trained masons DFID HR Study; Sanitation 21 capacity capacity to meet household needs (quantity, quality and cost but not for cost to meet targets, however there are workshop March 2013 and cost)? currently people with construction skills available in districts. Problem is lack of available products and affordability. Markets RSH Private sector Does the government have programs to promote Yes, with various Yes, but either No promotion, 0.5 Some discussion and initiatives Sanitation workshop March 22 development and guide the domestic private sector and facilitate components being developed guidance or started with government on private 2013 innovation for the provision of sanitation services in or has gaps encouragement sector and product development but rural areas? not to scale, trials only. Markets RSH Management Do local government or rural service providers have Yes, the majority No. Only some No service 0 National Assessment of risks from National Adaptation 23 of Disaster Risk plans for coping with natural disasters and climate of rural service service providers provider has a climate change and natural disaster Programme of Action to and Climate change? providers have a have a plan for climate action includes sanitation and health Climate Change (2010); Change plan for disaster disaster risk plan or has implications. Includes adaptation Sanitation Workshop March risk management management undertaken a measures such as protection of water 2013 and climate and climate vulnerability sources (including for sanitation change change or most assessment. purposes) and developing emergency service providers preparedness plan for disease have undertaken outbreak such as diarrhea. An a vulnerability emergency institutional structure is assessment. in place, but no budget for education and awareness/teaching people how to plan. Information missing at suco level. Policies need to be better coordinated. Uptake RSH Support for Are expenditures at the local level in line with the In line with policy In line with policy Not in line with 0 Difficult to assess whether money is Sanitation workshop March 24 expansion national sanitation policy and are they sufficient to and sufficient to but insufficient policy and sufficient. Target has not filtered down 2013 achieve national targets? achieve national to achieve insufficient to to district level targets national targets achieve national objectives Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Uptake RSH Incentives Has government (national or local) developed any Policies and Some policies No policies or 1 Handwashing campaign and PAKSI program documents; 25 policies, procedures or programs to stimulate procedures and procedures procedures sanitation through the SISCa; also SISCa Guidelines; Sanitation uptake of rural sanitation services and behaviors by (instruments) (instruments) (instruments) PAKSI program; suco rewards workshop March 2013; households? developed developed but exist systems. In place and being pers. comm. with Ministry of and being not implemented implemented but needs greater Health and BESIK staff implemented scaling up Uptake RSH Behaviors Is the government generating and using evidence to Research used Research used Research not 1 Several studies commissioned Joint Sanitation evaluation 26 monitor and analyze household sanitation behavior to understand to understand used and no (not always by government, but 2009; sanitation marketing change and take action to improve sustainability? behavior and behavior but no action in partnership with them) on studies; PAKSI trials; take action action handwashing, sanitation. Evidence Handwashing with soap across a variety is used to plan further interventions. research. Sanitation of behaviors Districts unaware of most research workshop 2013 and results. User RSH Sub-sector Is the sub-sector on track to meet the stated On-track Off-track but Off-track 0 Sanitation unlikely to meet MDG Pers. comm. K Clark outcomes 27 target? keeping up targets; intensive scaling up required with population to meet Strategic Development Plan growth targets and 2020 intermediate target User RSH Equity of use What is the ratio of improved toilet access between Less than 2 Between 2 and 5 More than 5 0 Equity ratio of 12 UNICEF/WHO equity analysis outcomes 28 the lowest and highest quintile in rural areas? times times for EAP (2012) User RSH Hygienic use of What percentage of people living in rural areas More than 75% Between 50% Less than 50% 0 Coverage in latest (2013) JMP update JMP figures (2013) outcomes 29 quality facilities use improved toilet facilities (excluding shared of people use and 75% of of people use is 27% facilities)? toilets people use toilets toilets URBAN WATER SUPPLY ENABLING Policy USH Sector Targets Are there USH access targets (household level and Yes, targets for Targets for No urban 0.5 Urban household coverage and ODF National Strategic 1 sewerage/septage management) in the national urban household urban household sanitation communities 100% by 2030, 100% Development Plan 2011- level development plan? access and access targets in the Dili households and 82% district 2030, and draft National sewerage/ included in the development urban targets for 2020 Sanitation Strategy 2012 septage development plan management plan but no included in the sewerage development or septage plan management targets included Policy USH Sector policy Is there an urban sanitation policy that is agreed by Policy officially Policy drafted No policy 1 National Basic Sanitation Policy National Basic Sanitation 2 stakeholders, approved by government, and publicly approved and and agreed but approved by Council of Ministers Policy 2012 available? publicly available not officially 2012. Widely consulted. approved 61 Service Delivery Assessment 62 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Policy USH Institutional Are the institutional roles of urban sanitation Defined and Defined but not Not defined 0.5 Roles of subsector actors National Basic Sanitation 3 Roles subsector players (national/state & local operationalized operationalized are described in the National Policy 2012. Sanitation government, service provider, regulator etc.) clearly Basic Sanitation Policy but not workshop March 2013 defined and operationalized? operationalized at district level. Planning USH Fund flow Does government have a process for coordinating Coordination Coordination Not defined/ no 0.5 Money is available but weak Sanitation workshop March 4 coordination multiple investments in the subsector (domestic process process process coordination and execution on 2013 or donor, eg. National grants, state budgets, donor defined and defined but not sanitation, especially spending money loans and grants etc.)? operationalized operationalized at district level Planning USH Investment plans Is there a medium-term investment plan for urban Investment plan Exists but not Does not exist 0.5 Investment plan exists for Dili as Sanitation workshop March 5 sanitation based on national targets that is costed, based on priority used, or under part of the masterplan but not other 2013 prioritizes investment needs, is published and needs exists, is preparation district capitals. Stakeholders at used? published and Sanitation workshop in March 2013 used said a masterplan exists but is not implemented. Planning USH Annual review Is there an annual multi-stakeholder review in Review of Review of No review 0 No annual multi stakeholder review Sanitation workshop March 6 place to monitor subsector performance, to review performance performance or setting of of sector performance only personnel 2013 progress and set corrective actions? and setting of but no setting of corrective actions performance reviews. corrective actions corrective actions Planning USH HR Capacity Has an assessment been undertaken of the Assessment Assessment No assessment 0.5 Assessment done including by DFID Human Resource 7 human resource needs in the subsector to meet undertaken and undertaken but undertaken subsector, but unclear if follow Capacity in the WASH sector the subsector target and is the action plan being actions being no action being up action taken to address skill in TL 2009. Sanitation implemented? implemented taken shortages although the report did workshop 2013. have an action plan for dissemination of results. Some confusion with between annual personnel performance review and sector HR assessment. Budget USH Adequacy Are the annual public financial commitments to More than Between 50- Less than 50% 0.5 Agreed by participants Sanitation workshop March 8 the urban sanitation subsector sufficient to meet 75% of what is 75% of needs of needs 2013. Budget Books for national targets for the subsector? needed 2011, 2012, 2013 Budget USH Structure Does the budget structure permit investments and Yes for Yes for No 1 Structure is clear but not broken out SDA financial analysis 9 subsidies (operational costs, administration, debt investment and investment but to subsector service, etc) for the urban sanitation sector to be for subsidies not subsidies clearly identified? Budget USH Comprehensive Does the government budget comprehensively More than 75% Between 50- Less than 50% 1 Funds are on budget, but budget is SDA financial analysis 10 cover domestic and official donor investment/ of funds to sub- 75% of funds to of funds to sub- highly centralized subsidy to urban sanitation? sector on budget sub-sector on sector on budget budget Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment DEVELOPING Expenditure USH Utilization of What percentage of domestic funds budgeted for Over 75% Between 50% Less than 50% 1 No subsector disaggregation although SDA financial analysis and 11 domestic funds urban sanitation are spent (3 year average)? and 75% no problem with budget execution Sanitation workshop March 2013 Expenditure USH Utilization of What percentage of external funds budgeted for Over 75% Between 50% Less than 50% 0.5 Difficult to assess probably between Sanitation workshop March 12 external funds urban sanitation are spent (3 year average)? and 75% 50-75% 2013 Expenditure USH Reporting Is urban sanitation expenditure versus budget Yes for domestic Yes for domestic No 0.5 Donor expenditures may be audited Sanitation workshop March 13 audited and reported on in a consolidated format and donor expenditure but not disclosed 2013 for all sources of domestic and official donor expenditure expenditure? Equity USH Local Are there clearly defined procedures for informing, Yes and Yes, but not No 1 Participation processes exist Sanitation workshop March 14 participation consulting with and supporting local participation systematically systematically 2013 in planning, budgeting and implementing for urban applied applied sanitation developments? Equity USH Budget allocation Have criteria (or a formula) been determined to Yes, applied Yes, but No 1 Some prioritization of urban Sanitation workshop March 15 criteria allocate urban sanitation funding equitably to consistently not applied sanitation. 2013 urban utilities or service providers and among consistently municipalities and is it being consistently applied? Equity USH Reducing Do local government or urban service providers Plans developed Plans developed No plans 0 No evidence Sanitation workshop March 16 inequality (national or in 3 largest cities) have specific plans or and implemented but not documented 2013 measures developed and implemented for serving implemented the urban poor? Output USH Quantity (access) Is the annual expansion of urban households Over 75% of that Between 75% Less than 50% 1 Urban sanitation is increasing National census data 17 gaining access to safe sanitation sufficient to meet needed to reach and 50% of of that needed to particularly in Dili, which represents the subsector targets? sector targets that needed to reach targets 60% of the entire urban population achieve targets Output USH Quantity Is the annual increase in the proportion of fecal For collection For collection but Not for collection 0.5 No subsector targets for fecal waste Sanitation workshop March 18 (treatment) waste that is safely collected and treated growing and for not for treatment or treatment (or if collection 2013 at the pace required to meet the subsector targets treatment no target) (for both onsite and sewerage)? Output USH Reporting Are there procedures and processes applied on a Quality, Quality or Neither 0.5 Census, health surveys measure Census and health surveys 19 regular basis to monitor urban sanitation access quantity and quantity quantity in terms of access to and the quality of services and is the information disseminated household sanitation disseminated? 63 Service Delivery Assessment 64 Water Supply and Sanitation in Timor Leste Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment SUSTAINING Maintenance USH Collection and What is the proportion of total fecal waste Over 75% of Over 50% of Less than 50% 0 While district capitals likely to have WSP Urban sanitation 20 treatment generated that gets safely collected and treated? that generated that generated of that generated latrines, there are not collection or survey. Discussion with Joao is collected and is collected from treatment facilities/disposal sites. Few Piedade treated the HH level HHs empty their latrines. Maintenance USH Cost recovery Are O&M costs of treatment systems (beyond O&M costs O&M costs are O&M costs not 0 O&M costs not known and policy has Sanitation workshop March 21 household level facilities) assessed/known and fully known and known and 50% known not been implemented 2013 met by either cost recovery through user fees and/ >75% covered covered through or local revenue or transfers? through cost cost recovery recovery Maintenance USH Discharge Are there norms and standards for wastewater Exist and are Exist and majority Standards exist 0 There are Indonesian regulations on Various Environmental 22 discharge for septage and sewerage treatment monitored under are monitored, but majority septage for Industrial, Hotel, Hospital, Ministerial Diplomas on plants that are systematically monitored under a a regime of but there are no of plants are Oil & Gas and mining sectors: Wastewater Standards for regime of sanctions (penalties)? sanctions sanctions not regularly Industries; Monitoring for monitored sewage treatment plant effluent: Maintenance USH Management Do local government or service providers (national Yes, the majority No. Only some No service 0 National Assessment of risks from National Adaptation 23 of Disaster Risk or in 3 largest cities) have plans for coping with of urban service service providers provider has a climate change and natural disaster Programme of Action to and Climate natural disasters and climate change? providers have a have a plan for climate action includes sanitation and health Climate Change (2010). Change plan for disaster disaster risk plan or has implications. Includes adaptation Sanitation workshop March risk management management undertaken a measures such as protection of water 2013 and climate and climate vulnerability sources (including for sanitation change change or most assessment. purposes) and developing emergency service providers preparedness plan for disease have undertaken outbreak such as diarrhoea. An a vulnerability emergency institutional structure is assessment. in place, but no budget for education and awareness/teaching people how to plan. Information missing at suco level. Policies need to be better coordinated. Districts rely on central level for information. Expansion USH Uptake Has government (national or local) developed any Policies and Some policies No policies or 0.5 Nothing specifically urban but national Sanitation workshop March 24 policies, procedures or programs to stimulate procedures and procedures procedures policies and procedures encourage. 2013 uptake of urban sanitation services and behaviors (instruments) (instruments) (instruments) Implementation is lacking. by households? developed developed but exist and being not implemented implemented Areas of Building No. evidence for Question High (1) Medium (0,5) Low (0) Score Explanation for score Source of evidence block assessment Expansion USH Plans Do government/service providers have business Business plans Business plans No Business 0 No business plans Sanitation workshop March 25 plans for expanding the proportion of citywide fecal for expansion for expansion Plans 2013 waste that is safely collected and treated? of collection & of collection & treatment being treatment under implemented preparation Expansion USH Private sector Does the government have ongoing programs and Yes, various In development, No 0.5 Unclear — maybe some program but Sanitation workshop March 26 development measures to strengthen the domestic private sector components few components evidence is lacking 2013 for the provision of sanitation services in urban or peri-urban areas? User USH Sub-sector Is the sub-sector on track to meet the stated On-track Off-track but Off-track 0.5 Anomaly that the sector is not Sanitation workshop March outcomes 27 progress target? keeping up getting enough money but access 2013. SDA analysis with population is increasing. Not quite on track for growth targets User USH Equity of use What is the ratio of improved toilet access between Less than 2 Between 2 and 5 More than 5 0.5 Equity ratio of 3.2 UNICEF/WHO Equity analysis outcomes 28 the lowest and highest quintile in urban areas? times times for EAP countries 2012 (Using 2009 DHS data) User USH Use of facilities What percentage of people living in urban areas More than 90% More than 75% Less than 75% 0 Coverage in latest (2013) JMP update JMP figures (2013) outcomes 29 use improved toilet facilities (excluding shared of people of people of people is 68% facilities)? 65 Service Delivery Assessment Annex 2: Assumptions and Inputs for Financial Model This annex describes the key inputs that were used to gen- lation Division.90 Population estimates for 2011 were made erate estimates of the required expenditures to meet gov- by using official Timor-Leste census results for 2010 (Gov- ernment targets and anticipated capital expenditures from ernment of Timor-Leste 2011 p. xxi) and applying the aver- 2013 to 2020. It discusses the sources, adjustments and age annual growth rate of 2.41% during intercensal period assumptions of the following information: Exchange rates, 2000-2010.91 2011 population projections used the same demographic variables, sector-specific technologies and rural/urban percentages in the 2010 census. 2011 access spending plans. figures for water supply and sanitation are from JMP 2013 (pp. 30 and 31). Population projections for 2020 are from Exchange rates the United Nations Department of Economic and Social Af- fairs Population Division.92 The percentage estimates for The official currency in Timor-Leste is the US dollar. No rural and urban population in 2020 are from Google Earth exchange rate calculations were necessary. “Environments of the Poor”; these were applied to the UN total population estimates. Access targets for overall na- Demographic and Access Estimates tional and sub-sectors of rural and urban water supply and rural and urban sanitation were also agreed in stakeholder The main demographic variables in the SDA financial model meetings. For both rural and urban water supply, the target are rural and urban population estimates or projections for is drawn from the Ministry of Public Works Five Year Action 1995, 2011, and the target year (2020). Combined with es- Plan 2013 -2017 (pp. 2 and 7), and the national figure is cal- timates of actual and target coverage rates for water and culated based on population estimates. For sanitation, the sanitation, this information assists in the calculation of the rural percentage is drawn from the draft national Sanitation number of people who will be needing access to improved Strategic Plan which calculates the 2020 target from the facilities from 2011 to the target year. The second set of infor- Strategic Development Plan target for 2030, while the ur- mation refers to the average size of households. This is used ban percentage is calculated from the draft national Strate- to convert costs of facilities, which are generally expressed gic Sanitation Plan which targets district towns having 82% on a per household basis, into per capita terms. coverage and Dili having 100% coverage by 2020. National sanitation coverage in 2020 was calculated based on pro- Table A2.1 shows the key demographic variables used in jected population. It does not include shared facilities. the analysis. Population and coverage data for 1995 was based on JMP 2013a that used estimates from the United The average household size (5.8 persons) was drawn from Nations Department of Economic and Social Affairs, Popu- the 2010 census. 90 Population data are available at http://esa.un.org/unpd/wpp/Excel-Data/population.htm. 91 See http://timor-leste.gov.tl/?p=4144&lang=en). 92 World Population Prospects: The 2010 Revision, http://esa.un.org/unpd/wpp/index.htm Medium variant 2015-2025 viewed 21 Feb 2013. Service Delivery Assessment 67 Table A2.1. Timor-Leste: Population (millions) and Access to Improved Water Supply and Sanitation 1995, 2011, and 2020 used for SDA Financial Model 1995 Estimated 2011 Estimated 2020 Target Region Access Access Access Pop. Pop. Pop. Wat. San. WAt. San. Wat. San. Rural 0.7 49% 33% 0.8 60% 27% 1.0 80% 68% Urban 0.2 67% 51% 0.3 93% 68% 0.5 100% 93% National 0.9 53% 37% 1.1 69% 39% 1.5 87% 76% Table A2.2 Timor-Leste: Distribution, Unit Costs, and Lifespans of Water Supply Technologies Among Households with Access to Improved Water Supply (Used for SDA Financial Model ) Projected Distribution Estimated Distribution 2011 2020 Unit capital cost Lifespan Assumed user Technology (US$/capita) (years) share of unit cost Rural Urban Rural Urban Piped into dwelling or 190 (rural) 9 (rural) 26% 46% 28% 70% 10% premises 379 (urban) 20 (urban) Public tap 40% 26% 52% 13% 140 9 10% Tube/piped well or borehole 27% 9% 5% 10% 190 8 99% Protected dug well/spring 27% 9% 14% 7% 35 10 99% Improved Rainwater 1% 0% 1% 0% 34 10 99% Collection Total 100% 100% 100% 100% Water Supply Technology Distribution, Unit Costs and Lifespan Information on the distribution of technologies is used to The relative distribution of water supply technologies for calculate capital investment required to meet national tar- 2011 were assumed to be identical to 2010, for which gets. Table A2.2 presents information on the estimated evidence is available. The distributions were based on the household distribution, per capita costs, and lifespans of 2010 census.93 The projected technology distribution for key water supply technologies. The technology distribu- 2020 was based on stakeholder discussions at a workshop tion is for households that already have access to improved on 5 June 2013 plus subsequent discussion with experts water supply. from the AusAID-funded BESIK project on 17 June 2013. 93 Population and Housing Census Data of Timor-Leste, Vol 3 social and Economic Data Summary p. xx. 68 Water Supply and Sanitation in Timor Leste Evidence for unit capital costs for water piped into premis- Sanitation Technology Distribution, Unit Costs, es represent expenditures for materials and labor and were and Lifespan derived from data supplied by the AusAID-funded BESIK project for rural water supply and from estimates from Asian Table A2.3 presents information on the estimated house- Development Bank projects in urban water supply. For all hold distribution, costs, and lifespans of key sanitation other technologies, estimates from the BESIK project were technologies. These were used to calculate capital invest- used, based on actual costs, with the major assumption be- ment required to meet national targets. ing that costs for rural and urban water supply technologies are similar except for water piped onto premises (for which The relative distribution of sanitation technologies for 2011 urban systems are more complex and expensive). The same were assumed to be identical to 2010, for which evidence assumption was made for lifespans. The difference in lifes- is available. The distributions were based on the 2010 cen- pans for rural and urban water supply piped onto premises sus.95 The projections for 2020 were based on stakeholder was estimated in part from functionality studies conducted discussions at a workshop on 5 June 2013 plus subsequent by Oxfam and Triangle in 2008.94 It should be noted, how- discussion with a major stakeholder on 17 June 2013. ever, that functionality of water supply systems is not an ab- solute (either functioning or non-functioning). Especially in There is no mention of sewerage connections in the 2010 the case of rural water supply systems, the supply may be census as there is no networked sewerage system in Timor- partially functional or a small repair such as a valve or pump Leste, although a Dili Sanitation and Drainage Master Plan would make systems functional. The SDA model however envisions a system for the capital. For the financial model it assumes that all capital investment must be fully replaced is assumed that stage 2 of the master plan – completion of after its functional lifespan, which has been set fairly low for one decentralized wastewater treatment systems – would rural piped water supply schemes. be completed by 2020. Table A2.3 Timor-Leste: Distribution, Unit Costs, and Lifespans of Sanitation Technologies Among Households with Access to Improved Sanitation (Used for SDA Financial Model) Projected Distribution Estimated Distribution 2011 Assumed user 2020 Unit cost Lifespan Technology share of unit (US$/capita) (years) cost Rural Urban Rural Urban Pour flush/flush connected to 0% 0% 0% 10% 1,807 20 3% sewerage Pour flush/flush connected to 10 (rural) 24% 30% 56% 70% 21 99% tank or pit 15 (urban) Simple Improved Pit latrine 44% 46% 25% 10% 7 5 99% VIP latrine 32% 24% 19% 3% 22 5 99% Total 100% 100% 100% 100% 94 Oxfam Australia (2008) Covalima District Rural Water Supply Management Study and Triangle Génération Humanitaire (2008) Manatuto District Rural Water Supply Management Survey. 95 Population and Housing Census Data of Timor-Leste, Vol 3 social and Economic Data Summary p. xx. Service Delivery Assessment 69 Unit costs for networked sewerage plus treatment were cal- by the household. However, this does not mean that the culated from data and cost estimates presented in the Dili households will certainly invest 100% of the requirements Sanitation and Drainage Master Plan. Estimates for other in the future; their expenditures need to be mobilized by sanitation technologies were based on figures offered by corresponding “software” expenditures by government experts from the AusAID-funded BESIK project, the Timor- and donors. Thus the high deficits displayed for sanita- Leste Red Cross, and WaterAid. Lifespan figures were tion household expenditure can be conceptualized as the presented at a stakeholder workshop on 5 June 2013 and amounts that should be leveraged in the future with “soft- modified by subsequent discussion with BESIK experts on ware” expenditures. 17 June 2013. Investments User Share Assumptions about the country’s budget commitment to all The planned spending of users is computed by specifying capital investment have been taken from the government the proportion of investments that the authorities believe budget figures (refer table A2.4). households should contribute. This could be an expressed policy, supported by documentation. In the absence of Population projections plus technology distributions, costs, such a policy, however, the approach was to consult ex- and lifespans are the key ingredients in estimating capital perts in the water and sanitation sector. It is through this investment needed to reach national targets. To get a sense consultation process that the user shares for urban and ru- of how short- to medium-term actual expenditures measure ral water supply were obtained. Hence, the approach used against investment requirements, planned investments of in the analysis is to assume a share that the household is the government, donor agencies, NGOs, and private insti- likely to contribute for different technologies. The percent- tutions from 2010 to 2012 were obtained from documents age of user investment in capital costs for rural sanitation, supplied by government agencies, published budgets, and for example, was assumed to be 100% (the model calcula- interviews. An attempt was also made to estimate the con- tions do not allow entering more than 99%) as it is assumed tribution of households or users. that households will bear the major costs of investment in rural sanitation “hardware” in the future. The model uses In 2011, about 20% of the total PDL budget of US$ 3.5 mil- the same user share for urban and rural infrastructure. lion was allocated for water supply projects (new and reha- bilitation), 2% in urban areas and 17% in rural areas, while The assumed contributions of the households for invest- in 2012, about US$ 2.4 million—41% of a total $5.3 million ments in water supply and sanitation are given in tables budget - was allocated to water supply. In 2011 about 7% A.2.2 and A.2.3. In all cases, household investment is cal- was allocated for sanitation facilities, but all of these were culated based on a leverage ratio whose denominator is public facilities that do not assist in reaching sanitation cov- government investment. For example, for a leverage ratio erage goals and so were not included in SDA estimates or of 1:2, for every dollar of government capital (hardware) in- projections. SDA estimates adjusted these percentages vestment, the household would invest two units. For onsite and applied them to other funds to obtain an overall figure sanitation, this is difficult to conceptualize because in many for rural water supply. Forecast budget for water and sanita- countries the government is in fact contributing very little tion under the PNDS has not been included in the analysis capital. Virtually all the cost of onsite sanitation is borne because the total budget is not known. 70 Water Supply and Sanitation in Timor Leste Table A2.4. Timor-Leste: Budget and Capital Spending 2010-2015, US$ millions 2010 2011 2012 2013 2014 2015 actual actual budget budget budget budget Combined Sources Budget (Government 1,379.8 2,028.3 1,850.9 2,088.5 2.078.4 -- + Development Partners) Total Government Expenditure 760.8 1,095.9 1,806.5 1,647.5 1,949.0 2,045.8 Recurrent 506.1 507.8 757.3 841.8 870.5 908.8 Minor Capital 38.3 27.2 49.2 49.6 51.6 53.6 Capital and Development (Including all 561.0 1,000.0 756.9 1,026.9 1,083.3 215.9 Infrastructure Expenditures) Capital as percent of Government 51% 55% 46% 53% 52.9% -- Budget Development Partner Commitments -- 283.9 221.8 203.4 139.5 32.6 Note: -- data not available. Source: RDTL 2013a p.43. Given limitations on time and resources, the SDA invest- Table A2.5. Timor-Leste: Estimated Average Anticipated ment estimates should not be regarded as in-depth or Annual Capital Investments in Water Supply highly detailed, but a wide view of spending. Apart from and Sanitation 2013–2015 (Used for SDA Financial the difficulties associated with collecting information from Model), US dollars, millions various sources, several other challenges were confronted in the process. The financial model uses information on only hardware costs (for example, construction costs of facili- Development Partners ties) and excludes software costs (for example training and Sub-Sector Government including NGOs Total awareness programs, project implementation, and salaries). and private Moreover, such information must be disaggregated among sector the four sectors (that is, rural water supply, urban water sup- Rural water supply 13.0 1.7 14.7 ply, rural sanitation, and urban sanitation) and, in the case of multiyear projects, for each year. This disaggregation is Urban water supply 10.6 4.1 14.7 usually not readily available, or even known, for projects. Rural sanitation 0 0 0 The SDA team consulted project funders, implementers, and other experts as well as examples of similar or previous Urban sanitation 4.7 0 4.7 projects to make informed estimates. Total Anticipated Capital 28.3 5.8 34.1 Investment Table A2.5 shows the projected average annual spending Source: SDA estimates of government and development partners, including NGOs from 2013 to 2015. Service Delivery Assessment 71 Operations and Maintenance The estimates of operations and maintenance costs are de- rived from averaging a set percentage of existing technolo- gies and expected future technologies to get an average cost. These are assumed to be 3% of the capital cost for water supply piped onto premises or public taps, and 1.5% of the capital cost of other types of water supply technolo- gies. For sanitation, the estimate is 3% of the capital cost for networked sewerage and for pour flush/flush into tanks or pits, and 1.5% for other technologies. When estimating O&M costs, there is no distinction between urban and rural sanitation and water supply, however total O&M costs (in Table A2.6) are pro-rated according to the predicted tech- nology distribution for 2020. Table A.2.6 below presents annual estimates of O&M costs in 2011 and 2020, and the average. Table A2.6. Timor-Leste: Estimated Operations and Maintenance Costs for Water Supply and Sanitation (Used for SDA Financial Model) 2011 O&M 2020 O&M Average O&M Rural WS 1.2 2.6 1.9 Urban WS 2.2 4.5 3.4 WS total 3.4 7.1 5.3 Rural S&H 0.1 0.3 0.2 Urban S&H 0.1 2.7 1.4 S&H total 0.2 3.0 1.6 72 Water Supply and Sanitation in Timor Leste References ADB (2011) Democratic Republic of Timor-Leste: Strength- Government of Timor-Leste (2013) Operationalizing the Stra- ening Water Sector Management and Service Delivery, Tech- tegic Development Plan, Transition from the National Priori- nical Assistance Report, Project Number: 45227, Asian De- ties Process to the Strategic Development Plan 2011-2030. velopment Bank, Manila Development Policy Coordination Mechanism (DPCM). Concept paper approved by the Council of Ministers on 19 Commonwealth of Australia, (2000). 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