Report No: ACS5722 Republic of Belarus Social Accountability in Municipal Services Social Accountability Review: Housing and Utilities Services in Belarus July, 29 2013 ECSSO EUROPE AND CENTRAL ASIA Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the 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 boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 1 Copyright Statement: The material in this publication is copyrighted. 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(as of June 4, 2013) Currency Unit = Belarusian Ruble (BYR) US$1=8,695 BYR BYR Belarusian Ruble CIS Commonwealth of Independent States CSO Civil Society Organization DH District Heating DHU Department of Heating and Utilities ECA Europe and Central Asia EE Energy Efficiency EED Energy Efficiency Department EU European Union GEF Global Environmental Facility GDP Gross Domestic Product GRM Grievance Redress Mechanism GoB Government of Belarus HU Housing and Utilities MHU Ministry of Housing and Utilities MNRE Ministry of Natural Resources and Environment MOE Ministry of Economy MOF Ministry of Finance MOH Ministry of Health MWSTF Mechanical Waste Separation Treatment Facility NIP National Implementation Program POA Property Owners Association PIU Project Implementation Unit POP Persistent Organic Pollutants RE Renewable energy SWM Solid Waste Management TA Technical Assistance ME Ministry of Energy WSS Water and Sanitation and Supply WTP Willingness to Pay This report was prepared by a World Bank team comprised of Nicolas Perrin (co-task team leader), Klavdiya Maksymenko (co-task team leader), Jennifer Shkabatur, and Ecaterina Canter. The report also benefited from comments and suggestions received from Tamara Sulukhia, Helene Grandvoinnet, Pekka Salminen, Stephane Dahan, Caroline Rusten and Irina Oleinik. Executive Summary ............................................................................................................................. i Introduction and Objectives .................................................................................................................1 I. Belarus: Country Context .............................................................................................................2 II. Methodology ................................................................................................................................3 III. Housing and Utilities Sector .....................................................................................................3 1. Structure and Policy ..................................................................................................................3 2. Social Accountability Mechanisms and Challenges .................................................................7 IV. Water Supply and Sanitation Project ......................................................................................11 1. Sector Overview ......................................................................................................................11 2. Project Overview .....................................................................................................................12 3. Social Accountability Mechanisms and Challenges ...............................................................13 4. Recommendations for HU authorities .....................................................................................14 V. Solid Waste Management Project ..............................................................................................21 1. Sector Overview ......................................................................................................................21 2. Project Overview .....................................................................................................................23 3. Social Accountability Mechanisms .........................................................................................24 4. Challenges ...............................................................................................................................26 5. Recommendations for HU and municipal authorities .............................................................27 6. Recommendations for the PIU ................................................................................................31 VI. Biomass-Based District Heating Project .................................................................................34 1. Sector Overview ......................................................................................................................34 2. Sector Overview ......................................................................................................................34 3. Project Overview .....................................................................................................................36 4. Social Accountability Mechanisms and Challenges ..................................................................37 5. Recommendations for HU authorities ........................................................................................39 6. Recommendations for the PIU ...................................................................................................42 Conclusion..........................................................................................................................................45 Annex I. Belarus: Administrative Structure ......................................................................................... i Annex II. Water Management: Stakeholder Analysis......................................................................... ii Annex III. Waste Management: Stakeholder Analysis ...................................................................... iii Annex IV. Biomass-Based District Heating Project ...........................................................................v Annex V. List of Awareness-Raising Activities Planned by the Municipality of Grodno ............... vii Annex VI. Awareness raising posters prepared by the Department for Environmental Protection in Grodno.............................................................................................................................................. viii Annex VII. Examples of Questions for Citizen Satisfaction Surveys ............................................... ix EXECUTIVE SUMMARY Social accountability (SA) has been recognized as an effective mechanism to improve service delivery and enhance developmental impact. SA mechanisms entail a broad range of approaches that go beyond voting, and enable citizens to access governmental information, lodge grievances and receive redress, oversee the provision of public services, and take an active part in management and decision-making processes. If successful, these activities help educate citizens about governmental processes and inform them about the plans and activities of service providers; provide governmental authorities with real-time information about the performance of service providers; and enhance the responsiveness of service providers to citizen needs, thus improving citizen satisfaction with public services. This report aims to identify SA entry points in Bank-funded municipal services operations in Belarus. It provides background and context on the Housing and Utilities Sector in Belarus, focusing in particular on Bank-funded water, waste management, and biomass-based district heating operations. The report aims to assess the existing SA mechanisms in these sectors and projects, and identify potential SA entry points that could be incorporated into the project cycle or in governmental policies and activities. The findings of this report rely on a desk review of legislative and analytical materials on the Water, Waste, and District Heating sectors in Belarus, and on data collection conducted as part of a mission in April 2013. The Housing and Utilities Sector The Housing and Utilities (HU) sector in Belarus is strictly regulated and vertically integrated . The central government develops sector policy and strategy and controls their implementation. At the national level, the Ministry of Housing and Utility (MHU) is the sector line ministry and the pivotal actor coordinating the sector for the government. Regional administrations are closely involved in sector coordination, while local authorities are responsible for service provision. “Multi -service utilities” are responsible for the provision of all communal services in Belarusian localities. They provide dispatcher services and directly respond to citizen service requests in a variety of HU areas. The engagement of civil society organizations in the sector is limited and HU authorities are often reluctant about their activities. The HU sector in Belarus is heavily subsidized by the government. Belarusian citizens only pay 15 percent of the real market price of public utilities. The remaining costs are covered by the government, as a result of a large cross-subsidization system. Low HU tariffs contribute to a system of low citizen expectations from service providers. However, as HU tariffs are about to considerably increase in the coming years, improved provision of services is necessary to ensure citizens compliance with the new tariffs. Several SA mechanisms exist in the HU sector. HU authorities largely comply with legal requirements on information provision. The MHU, Departments of Housing and Utilities (DHU) at the oblast, rayon, and city levels, as well as multi-service utilities, provide information about communal services and tariffs on their websites and in public locations. HU authorities also use the mainstream media to convey news and messages about communal services. Pursuant to the law on citizen appeals, HU authorities are also obliged to respond to citizen requests and complaints within a specific timeframe. In order to enable the submission of such requests, HU authorities have created several channels for interaction with citizens, including office hours for local HU officials, hotlines, mail and email addresses for written requests, etc. Most complaints are submitted in a written form and refer to issues of communal buildings repair and maintenance. Transparency is a major SA challenge in the HU sector. Information provided by the government on HU issues often takes a discretionary form and varies among oblasts, rayons, and cities. Citizens indicate that important types of HU information are not provided by the government (in particular, details about the calculation and structure of communal utilities bills, as well as information on communal budget and expenditures, and the schedules for planned building repairs and public works). Improved provision of i information on HU issues that matter to citizens could ameliorate the public perception of HU authorities and strengthen citizen compliance with new HU policies and increased tariffs. Governmental grievance redress processes can be likened to a “black box.” While all governmental entities are obliged by law to respond to citizen complaints within 15 or 30 days, there is a dearth of information about the quality and content of governmental responses to requests. Further, governmental responses take a strictly individual form—the addressee of the response is the only individual who receives it. Neither governmental responses nor complaints are made public, and there are no transparent quality control mechanisms. Lack of such information impedes the possibility to conduct a systematic assessment of the quality of governmental HU services, identify strengths and weaknesses in the operation of multi-service utilities, reward good performers, help bad performers, and generally improve the provision of HU services. Water Supply & Sanitation Project Belarus is a water rich country and available water resources are sufficient to meet both current and future demands. The water sector is strictly regulated and hierarchical. MHU channels investment into water infrastructure and then transfers the newly built equipment to local authorities for operation and maintenance. Regional and local HU authorities are responsible for the implementation of water and delivery of water services. Municipal multi-service utilities are responsible for the provision of water services and for handling citizen requests and complaints. The Bank-funded Water Supply and Sanitation (WSS) Project was initiated in 2008 and its implementation is currently close to completion. The project development objective is to improve the quality, efficiency and sustainability of water supply and wastewater treatment services in six participating Oblasts covering about 1.7 million consumers. The project finances investments in water supply and sanitation sector in six Oblasts (e.g., rehabilitation and improvements in the water supply networks, installation of iron removal stations and other quality enhancement measures). The MHU and local municipalities are the key stakeholders responsible for the implementation of the WSS project. SA mechanisms in the water sector and project are limited. Both at the sector and at the project level, information about water services is not provided in a fully structured manner. Citizens are not provided with information about the structure of tariffs or their anticipated changes. Thus, they are not necessarily aware of the heavy cross-subsidization of tariffs and may not understand why tariffs increase. Multi-service utilities submit reports to Oblast executive committees on a monthly and quarterly basis. However, these reports lack actionable performance indicators, and there is reportedly little or no feedback on these reports from the oblast or the MHU. There is also a lack of meaningful performance indicators in the water sector, and it is therefore impossible to compare the quality of services provided by different multi-service utilities. The “black box” approach to grievance redress is also conspicuous in the water sector. Similarly to other areas of citizen requests, HU authorities are reluctant to publish either the content of citizen request or governmental responses to these requests. Solid Waste Management Project Belarus attaches high priority to environmental protection, particularly to waste management issues. The Belarusian program of municipal solid waste management (SWM) aims to encourage separated waste collection and recycling. It develops a network of municipal solid waste processing facilities in each Oblast capital and pursues recycling programs. The MHU is the main stakeholder responsible for the implementation of governmental SWM programs. Its overall objective is to prevent adverse environmental impacts and ensure coverage of 100% of population in large cities by separate municipal waste collection. The Integrated Solid Waste Management (ISWM) project operates in the City of Grodno. Grodno’s municipality has initiated a municipal recycling program, but citizen participation in recycling has been low. The ISWM project aims to improve and expand Grodno’s existing recycling program to more households ii and businesses. The project’s development objectives are twofold: (i) to increase the environmental benefits of integrated solid waste management in the City of Grodno by recovering and reusing recyclable materials; and (ii) to strengthen national capacity to manage hazardous wastes and reduce environmental and health risks. The Project Implementation Unit (PIU), established in 2008 at the MHU, has the primary responsibility for coordinating the implementation of the project. The municipality, in consultation with the Grodno Oblast and the MHU, exercises decision-making responsibilities with regards to investments under the project. Low citizen awareness and participation hinder the implementation of the SWM program. Citizen awareness and participation in separated waste collection are integral to the success of the project. Lack of “at source” separation of solid waste leads to a low quality of the collected recyclables and impedes the operation of the planned recycling facilities. However, while SWM has been a priority for the Belarusian government, citizens are generally unaware of the importance and benefits of separated waste collection programs, and participation rates in such programs have been very low. The low costs of household tariffs contribute to the lack of citizen interest in SWM. The Municipality of Grodno plans to undertake several steps to better inform residents about SWM. These activities aim to increase citizen awareness of the benefits and importance of SWM, and educate them about separated waste collection. However, the implementation of the activities has been delayed several times and has not yet started. Further, the planned informational activities lack a strategic approach. While the planned activities require municipal departments to provide information about SWM, they do not specify what type of information should be provided, to whom, and how this target audience will access and use this information. The PIU is currently not involved in the awareness raising activities and there are no established venues for citizen participation in recycling. Biomass-based District Heating Project The heating system in Belarus is based on a centralized district heating (DH) system . The energy for heating and hot water for residential consumers is generally supplied by the boiler houses and combined heat and power plants. These facilities are under MHU and Ministry of Energy’s (ME) administration. Until recently, DH services in Belarus have been heavily subsidized by the government. However, DH services in Belarus currently face sustainability challenges. The recent price increase for imported gas and the need to eliminate governmental cross-subsidization for heating services have put pressure on DH in Belarus. Price increase for DH will enhance the demand for better services and responsiveness. The Biomass-based District Heating project aims to support the country strategy on energy efficiency and increase of local fuel use as an energy supply option. The Technical Assistance under this project aims to advise GoB on two main issues. First, it will recommend how to increase the use of renewable biomass in selected towns in Belarus and second, it will advise how to improve energy efficiency of heat generation, transmission and distribution in the same towns. The pipeline project will establish biomass- based boilers, including residential building-based boilers. At this stage a preliminary list of towns has been identified where the project will be implemented. The project is proposed to be launched in FY14. SA mechanisms in the DH sector and project are limited. Similarly to other municipal services, the information on DH is not provided in a structured and systematic manner. As a result, DH consumers do not understand how the system works. Given the need to increase residential DH tariffs to eliminate cross- subsidization and reach cost-recovery level, the EED has been making increasing efforts to raise citizens’ awareness about energy security issues (in relation to high dependence to Russian gas) and the need for sustainable use of energy. The EED is responsible for organizing regular public awareness campaigns such as ‘Energy Efficiency Months’ and ‘Energy Efficiency Marathons” to bring to people’s attention the benefits that energy saving measures can bring. iii Public awareness about renewable energy and energy efficiency is still limited. Despite the awareness raising efforts, there is no full understanding on behalf of consumers about the RE and EE benefits in relation to heating services. Citizens are also increasingly dissatisfied with service provision by multi-service utilities. Citizens refer in particular to excessive delays in addressing grievances and lack of sufficient responsiveness of DH service providers. Information about the content of citizen’s complaints and official responses to ensure their redress is not made publicly available. Recommendations Based on these findings, this report provides detailed recommendations to HU authorities, municipal authorities, and PIUs, separately for each of the three HU sectors. For each recommendation, the report provides a feasibility assessment, referring to responsible stakeholders, priority, level of difficulty, and the sustainability of each suggestion. For brevity purposes, these recommendations are presented here in a consolidated and generalized manner, as applicable to all three sectors. Recommendations are listed by their order of priority. Recommendations for HU and municipal authorities: Improved information provision about HU services could strengthen citizen satisfaction and willingness to pay. In all three sectors, citizens indicated that the lack of detailed information about the structure of their utilities bills is a major source of dissatisfaction with regard to HU services. In the context of the waste management sector, lack of detailed information about the SWM program impedes citizen participation in the recycling program. Timely and reliable information about waste collection services is therefore important. In the district heating sector, information campaigns about the importance of energy efficiency and renewable energy are also key to the success of energy efficiency programs. Such information could be provided using accessible channels of information, such as public utilities bills, mass media, and the internet. Satisfaction surveys can play an important role in improving HU services. Information on citizen satisfaction with water services would be useful for HU authorities to assess in real-time the implementation of water sector policies and, if needed, adjust service provision to fully reflect citizen needs and demands. Such satisfaction surveys can be inexpensive and easy to implement. First, citizens who proactively approach multi-service utilities can be directly asked about their degree of satisfaction. This follow up inquiry can be either human or automated. Citizens can also be asked to express their opinion about HU services as part of online polls on official municipal websites. More scientific—but also more costly—satisfaction surveys may periodically poll random samples of citizens and inquire about their opinions with regard to HU service. Such surveys would be important in all three HU sectors examined in this report. The content of citizen requests and governmental responses could be publicly available. Transparency of grievance redress processes could improve governmental service provision and contribute to a positive perception of water services in the public. Specifically, the publication of frequently submitted requests could save both citizens and HU representatives time and efforts that currently go into submitting and responding to repetitive requests. A publicly accessible database of citizen requests and governmental responses could also be beneficial for HU agencies on the rayon and oblast level in putting pressure on lower HU units to improve service delivery. Performance indicators to assess the quality of services provided by multi-service utilities could be beneficial. Clear performance indicators would allow the MHU and lower HU authorities to assess the quality of services provided by each multi-service utility. Such indicators would be useful for internal monitoring purposes. There will also be a considerable value in their publication. Publicly available information on the comparative performance of different utilities could create a positive competition spirit and put pressure on utilities to improve the quality of their service delivery. iv Opportunities for citizen engagement could be created. In the context of the waste management sector, children and university students could be the main drivers of the SWM program. Children may be the ones responsible for recycling in their households, and they could be explicitly targeted by the SWM program. Students can also take an active role in recycling activities—both as independent recyclers and as volunteers, who work with other population groups on SWM issues. Recommendations for the PIU: The PIU could proactively inform citizens about the project. In all three sectors, the PIUs currently do not have a structured policy to inform citizens of their projects and activities. However, information provision about the project is essential in order to keep beneficiaries in the loop, garner support and understanding, and manage risks. In the context of water supply, the PIU could advertise the construction of new water objects in local media and via the internet. In the DH sector, a project’s website could be launched to increase understanding and enhance feedback. In the context of waste management, the PIU could take an active role both providing information about the project, and monitor the information provision activities of the Grodno Municipality. The PIU could launch an interactive channel for citizen reports. In all three sectors, the PIUs currently do not operate a direct interactive channel for communication with citizens. However, as the PIUs are responsible for the overall implementation of the project, such communication channel can be useful. First, such a channel could help the PIUs better monitor the execution of their projects. Second, establishing a grievance redress mechanism to manage complaints and requests related to the project could showcase an effective approach to complaint handling mechanisms for other HU sectors. Such grievance redress mechanism could take the form of a hotline or a website managed by the PIU. v Social accountability (SA)1 has been recognized as an effective mechanism to improve service delivery and enhance developmental impact. SA mechanisms entail a broad range of approaches that go beyond voting, and enable citizens to access governmental information, lodge grievances and receive redress, oversee the provision of public services, and take an active part in management and decision-making processes. If successful, these activities help achieve several objectives: educate citizens about governmental processes and inform them about the plans and activities of service providers; provide governmental authorities with real-time information about the performance of service providers; and enhance the responsiveness of service providers to citizen needs, thus improving citizen satisfaction with public services. SA interventions consist of three major types of mechanisms: a) provision of information; b) creation of channels for citizen feedback and grievance redress; and c) creation of channels for citizen participation in decision-making processes, beyond mere feedback provision. These interventions rely on three stakeholders: citizens, who directly interact with authorities to obtain information, provide feedback on public services, monitor service providers’ performance, and participate in government decision-making; governmental authorities that provide citizens with information, solicit feedback, and engage citizens in monitoring and other participatory initiatives; and intermediaries (e.g., civil society groups, universities, think tanks, etc.), who can offer support and facilitate the relationship between citizens and governmental authorities. This report aims to identify SA entry points in Bank-funded Housing and Utilities projects in Belarus.2 The Social Development Unit in the European and Central Asia (ECA) region has increased its commitment to pursue the SA. Specifically, it seeks to incorporate SA mechanisms in World Bank funded projects and operations in Belarus, aiming to increase project effectiveness and development impact. The objective of this report is to provide background and context on the Housing and Utilities Sector in Belarus, focusing in particular on Bank-funded Water, Waste management, and Biomass-based district heating projects. The report aims to assess the existing SA mechanisms in these sectors and in the projects, and identify potential SA entry points and approaches that could be incorporated into the project cycle or in governmental policies and activities. The findings of this report rely on a desk review of legislative and analytical materials on the Water and Waste sectors in Belarus, and on interviews, conducted as part of a mission in April 2013, with Belarusian national and local government representatives, project implementation mangers, civil society groups, and other relevant actors. The structure of the report is as follows. Part I offers an overview of the Housing and Utilities sector in Belarus and outlines the existing SA mechanisms in the sector. Part II surveys the methodology employed for the preparation of this report. Parts III, IV, and V focus respectively on the Bank-funded Water Sanitation and Supply Project, Integrated Solid Waste Management Project, and the Biomass Heating Project. These parts provide an overview of the Water, Waste, and District 1 The concept of social accountability refers to the extent and capacity of citizens to hold the government and service providers accountable for their actions, decisions, and performance, and make them responsive to the needs and demands of citizens. 2 An overview of the country background of Belarus is available in Annex I. 1 Heating sectors in Belarus, an overview of each of the projects, and a discussion of existing social accountability mechanisms and challenges in the projects. Lastly, recommendations to enhance SA mechanisms both on the project and on the sector level are provided. I. BELARUS: COUNTRY CONTEXT Belarus is a middle income country, home to 9.46 million people. The GDP of the country has been $55.13 billion as of 2011. Poverty rate has dropped from about 25% in 2003 to 5.4% in 2009, and it is now among the lowest in the world. It is the strongest economy (per capita) among countries that are members of the Commonwealth of Independent States (CIS), outside of the main energy producers (Russia, Kazakhstan, Azerbaijan).The state provides good public services with a high level of access by CIS standards. The country has also maintained its tradition of high human development indicators and gender equality, as measured by international ranking indices. Throughout the past decade, the national economy of Belarus has shown a steady and dynamic growth. Over that period, GDP grew by an average of 8.3 percent per year, driven in particular by a flourishing industrial sector. In 2011 Belarus faced a major financial (currency) crisis, which led to a deterioration of its macroeconomic situation: the Belarusian ruble lost over 60 percent of its value against the US dollar, and inflation soared at 109 percent. As of 2012, the national economy appears to have largely recovered from this crisis, and GDP is estimated to have grown by 4.3 percent in the past year. The population of Belarus is increasingly urbanized and ageing. 75.8 percent of its citizens live in 191 cities and urban settlements, while 24.2 percent live in 20,460 rural settlements. In the last decade, rural population has decreased by 21.5 percent. At the same time urban population has increased by 10.9 percent in the capital city, Minsk, but generally stagnated in other urban areas. Overall, Belarus’s total population has been steadily decreasing since 1990, primarily as a result of a dropping fertility rate (1.3 children per woman in 2010, one of the lowest rates in the region and in the world). Over 26 percent of the population is aged 55 and above. There are more than 53 women per 100 inhabitants, with a particularly acute misbalance among the population of 50 years of age and older. Mobile coverage in Belarus is high, and the rate of internet access and usage has been steadily growing. As of April 2013, 99.4 percent of Belarusian citizens live in territories with mobile coverage, and there are 10.7 million mobile phone subscribers in the country (113 percent of the population).3As of 2012, 6.1 million (64.5 percent) of Belarusian citizens are connected to the internet, and 1.8 million of those use a broadband connection.449.65 percent of internet users are men, while 50.35 percent are women. However, only 46.4 percent of households have a personal computer in their homes. There are also clear age discrepancies among internet users. 77.1 percent of Belarusians in the age group of 16-24 use the internet on a daily basis compared to 55.9 percent 3 Tut.by, “IT Numbers: Statistics in Belarus” (2012), available at: http://it.tut.by/numbers/#cell. 4 Ministry of Foreign Affairs in the Republic of Belarus, “Internet in Belarus” (September 2012), available at: http://mfa.gov.by/upload/internet_rus.pdf. 2 in the age group of 25-54, 47.5 percent in the age group of 55-64, and only 35.4 percent in the age group of 65 and above. II. METHODOLOGY This report focuses on three World Bank-funded projects and operations in Belarus. The three projects—Water Supply and Sanitation, Solid Waste Management, and Biomass District Heating— that are covered in this report were identified based on requests from and conversations with Task Team Leaders (TTLs) responsible for the implementation of the projects. The TTLs requested to conduct an SA assessment of these projects as they may present favorable grounds for a possible integration of SA mechanisms. The findings of this report rely on a desk review of legislative and analytical materials and on in-person interviews. The desk review relies on the following documents: (i) Legislative acts and documents relevant to the field of SA in Belarus, as well as policy documents in the field; (ii) World Bank reports that focus on municipal and communal services in Belarus and discuss the performance of the water, solid waste management, and district heating sectors; (iii) Surveys and assessments that were conducted by local stakeholders (e.g., the firm SATIO) on the quality of municipal service provision. In-person interviews were conducted as part of a mission in April 2013. The mission comprised Jennifer Shkabatur and Ecaterina Canter (consultants, ECSSO), who were accompanied in Belarus by Irina Oleinik (Communications/Operations Officer) and Irina Voitekhovitch (Operations Officer). Interviews were conducted with the following individuals: (i) the Ministry of Housing and Utilities; (ii) the Energy Efficiency Department; (iii) PIUs of each of the projects; (iv) research center SATIO (responsible for conducting surveys and analyses on municipal services in Belarus; (v) Civil society representatives (e.g., EcoMir and ACT); (vi) UNDP offices in Belarus. Mission participants also conducted site visits to each of the projects (the town of Mosty for the Water project; the city of Grodno for the waste management project; and the town Stariye Dorogi for the district heating project). They interviewed a range of public officials and municipal service providers in each of these locations, as well as in Minsk. III. HOUSING AND UTILITIES SECTOR 1. Structure and Policy The Housing and Utilities (HU) sector in Belarus is strictly regulated and vertically integrated. The central government develops sector policy and strategy and controls their implementation. At the national level, the Ministry of Housing and Utility (MHU) is the sector line ministry and the pivotal actor coordinating the sector for the government. MHU implements the state water and waste management policies, monitors and supervises service providers, provides managerial guidance and training to operators, and compiles sectoral data. Other national-level key stakeholders include (i) the Ministry of Natural Resources and Environment (MNRE), which 3 manages water resources and leads programs on waste management; (ii) the Ministry of Health (MOH), which monitors and supervises potable water quality and environmental health; (iii) the Ministry of Finance (MOF), which allocates funds for investments in, and subsidies to, the sector; and (iv) the Ministry of the Economy (MOE), which reviews and approves tariff for the sector. Regional administrations are closely involved in sector coordination, while local authorities are responsible for service provision. Regional and local stakeholders include the following actors: a) At Oblast (Region) level: the Oblast Council of Deputies, and the Department of Housing and Utilities (DHU) in the Oblast Executive Committee, the latter being the coordinator of the sector activities in the Oblast; and in some Oblasts (Vitebsk, Mogilev) the “Oblast Vodokanals”, a specific structure of the Oblast Executive Committee responsible for water services. b) In Minsk City: the City Council of Deputies and the DHU of the City Executive Committee. c) At District (Rayon) and City level: the Local Council of Deputies and the DHU of the Executive Committee. d) In major towns: the Vodokanals (almost exclusively dedicated to technical water and wastewater services). e) In medium-size and small towns and Districts: “multi-service utilities” responsible for the provision of various communal services (water and wastewater services, heating, housing maintenance, waste collection, hotel and restaurant management, funeral services, management of recreational areas, etc.) within their service area. Nearly 120 multi-service utilities exist in Belarus. Municipal multi-service utilities provide dispatcher services and directly respond to citizen service requests in a variety of HU areas. These utilities employ engineers and specialists who handle citizen requests or complaints on all public utilities issues (e.g., gas, heating, water, waste, repairs and maintenance of communal areas). In some localities, multi-service utilities also serve as “one window service” points, where citizens can pay their utilities bills and receive a variety of other services (e.g., obtain or renew a driving license or a passport, etc.). Multi-service utilities and vodokanals report to the Oblast DHU, monthly and quarterly. While multi-service utilities are under the direct responsibility of city or rayon executive committees, they also file reports about their activities to Oblast executive committees. Monthly reports (total of 9) provide information on payments of services, energy consumption, financial situation, commissioning of facilities, fixed assets and use of investments, use of subsidies, etc. Quarterly reports(total of 6) provide details on financial forecast for housing and utilities services to households, costs of production, sales (services and works), achievements vs. targets, cost savings, etc. in relation with the business plan. Quarterly reports are compiled by the Oblast in an annual report on housing and utility services to the MHU. There is reportedly no or only little feedback to this reports from the Oblast or from the MHU, and it is not clear to what extent they are incorporated in housing and utilities policies. Figure 1 depicts the structure of the HU sector. It does not include the vodokanals, as they are technical units that do not interact with citizens. 4 Figure 1. The structure of the Housing and Utilities Sector Civil society organizations (CSOs) are marginally involved in the sector. HU authorities are typically reluctant to work with CSOs and often do not recognize their potential value. A few CSOs currently focus on environmental protection (especially river basin pollution) at the central level, and some of them work with local communities affected by pollution issues. Some other non- government organizations, such as EcoMir, work with the government on producing and leading information campaigns (especially in the area of energy efficiency). The involvement of CSOs in governmental policies and activities in the water and waste sectors has been limited, and there seem to be a dearth of organizations that could play a more active role in these sectors. The stakeholder analysis shows that citizens do not view CSOs as champions of the reforms and expect the sectoral authorities to take the lead in reforming the sector. In Belarus with relatively little experience in citizens’ self-organization and CSO activism in municipal services greater transparency is a step toward greater participation. “Demand for Good Governance in Water Sector” study by the World Bank in Ukraine (2013) demonstrates similar expectations of the Ukrainian consumers. The HU sector in Belarus is heavily subsidized by the government. Belarusian citizens only pay 15.3 percent of the real market price of public utilities. The remaining costs are covered by the government, as a result of a large cross-subsidization system. The Belarusian government plans a phased elimination of the subsidization system in the coming years. As part of this, citizens are expected to cover 100 percent of electricity costs by the end of 2015. The costs of heating, water, and gas are also expected to rise by five-six times in the near future. Collection rates are currently high, but likely to deteriorate if tariffs significantly increase. Collection of utility payments is conducted in the following manner. Residential customers independently read their meters on a monthly basis, provide the multi-service utilities the meter reading via an automated phone system, and receive their utilities bill within a month. Utility bills are then paid in local banks or in the offices of multi-service utilities (which also serve as “accounts 5 clearance centers”). Multi-service utilities check customer meters reportedly once year. Those who do not report their meter readings on time are fined. The current approach to calculating utilities bills relies on citizens’ willingness to pay. As revealed by a study released by the Centre of System Business Technologies (SATIO) in 2013, the collection rate within the prescribed time is nearly 100 percent and there are only few disputes over payments—a finding that may be explained by the low residential tariffs. However, such an approach can only be effective as long as customer satisfaction with service provision is high and residential tariffs are low. Once tariffs grow, citizens who are unsatisfied with service provision will be reluctant to cooperate within the current system. The increasing costs of public utilities are already visible. According to SATIO’s study (2013), respondents paid during the winter of 2011/12 a monthly average of 160,000 BYR for public utilities. In winter 2012/13, the average payment increased to 235,000 BYR. As of 2013, 60.2 percent of respondents consider the cost of public utilities as average; while 34.5 percent regard it as high. Senior respondents (aged 60+) are more likely to estimate the costs of public utilities as “very high” or “high.” Respondents from households with lower than average income and respondents that live in old houses are also more likely to estimate public utilities costs as “high.” Figure 2. Comparison of PU cost in winter 2012/13 and winter 2011/12. N=600. Data is presented in % (Source: SATIO 2013) Citizen satisfaction with the provision of HU services has been declining. According to SATIO’s study (2013), citizens are growingly dissatisfied with the following aspects of HU services: delay in reaction to complaints; poor quality of work; insufficient information about the structure of public utilities bills; insufficient information about the order of deduction and spending of funds on capital repairs (as well as the planned schedules of capital repairs). As the government heavily subsidizes the costs of HU services, and tariffs remain very low, citizen expectations with regard to the quality of service provision are modest. However, as tariffs are steadily increasing, there will be a growing need to improve the quality of service provision in the HU sector and enhance the responsiveness of HU authorities to citizen needs and concerns. 6 2. Social Accountability Mechanisms and Challenges The following sections outline existing SA mechanisms in the Belarusian HU sector. These mechanisms are divided into three categories: 1) transparency and information provision, 2) grievance redress and complaint handling channels, and 3) citizen participation in decision-making and management processes. (a) Transparency and Information Provision Information about HU services is provided pursuant to the law “On Consumer Rights Protection in Utility Services” of 2009. The law, adopted on July 16, 2008 (No. 405-3), enlists the rights of citizens with regard to public utilities. These rights include satisfaction of needs related to HU services; safety of HU services; provision of information about service providers in the HU sector; the ability to choose service providers on a competitive basis; provision of information on consumer rights and entitlements in the HU sector; appropriate quality of HU services; and the right to receive compensation for damage caused by HU service providers. According to this law, governmental authorities are required to publish the following information: details of services provided by HU authorities; contact details, responsibilities, and experience of HU service providers; the structure, functions, and contact details of HU authorities; HU tariffs and discounts; norms and rules related to the provision of HU services; and the amount of funds collected by multi-service utilities from citizens and their quarterly expenditures on HU services. This information must be provided on public billboards located in the offices of multi- service utilities. The information can also be disseminated to citizens via the media, internet, or by other means. HU authorities largely comply with legal requirements on information provision. The MHU, Departments of Housing and Utilities (DHU) at the oblast, rayon, and city levels, and in some cases even multi-service utilities, provide information about communal services and tariffs on their websites. HU authorities also extensively use the mainstream media to convey news and messages about communal services. For example, HU authorities lead information campaigns on how to prepare for the winter on television, radio, and in local newspapers. Public utilities bills that are sent to citizens are also used to convey useful information on HU services. However, transparency of HU services remains a major challenge. Information provided by the government on HU issues often takes a discretionary form and varies among oblasts, rayons, and cities. Citizens indicate that important types of HU information are not provided by the government. According to SATIO’s survey (2013), the most urgent information needed to citizens is: (i) explanation of the calculation and structure of communal utilities bills: (ii) information on the schedule of planned building repairs and reasoning for determining where public works are conducted (while payments are deducted monthly for capital repair, citizens do not know how this money is allocated and how decisions on which buildings shall undergo capital repairs are made); and (iii) budget and expenditure information. As Belarus does not have a specific law on access to information, the legal means available to citizens to request government to provide this information are relatively limited. 7 (b) Grievance Redress Mechanisms The Belarusian law “On the Appeals of Citizens and Legal Persons” is the major social accountability tool in the HU sector. The law, adopted on July 18, 2011(No. 300-3), creates a framework enabling citizens to submit appeals and requests to governmental authorities. Such appeals include individual and collective petitions, suggestions, or complaints, and they can be submitted in a written or electronic form, or verbally during an office hour visit. Governmental authorities are obliged to respond to citizen requests within 15 days. Requests that require further inquiries or inspections can be responded to within 30 days. Citizens can submit appeals on governmental responses to higher authorities, which have to respond to such appeals within a month. Citizens can also take advantage of the law “On Consumer Rights Protection in Utility Services.” The law enables citizens to submit complaints against utility services in case of insufficient level of service (in particular in terms of continuity or quality of supply). The complaints have to be first directed to the relevant multi-service utilities and in case of an unsatisfactory response, appeals can be submitted to higher HU authorities or to courts. HU authorities have created several channels for interaction with citizens. First, the majority of regional and local HU departments and units have websites, where citizens can receive information about HU services available to them. Typically, these websites also have an “Internet Reception Room,” which provides information on how citizens can submit requests to HU authorities. Typical venues for submitting requests include regular mail and email (the precise mail and email addresses is provided); office hours of HU supervisors (information on their contact details and reception time is also available); a dedicated hotline (the details are advertised in local newspapers); or a “Citizen Requests Book” that can be found in every governmental office and where citizens can lodge their complaints. Information on how to submit requests is also provided on public bulletin boards in multi-utilities and in “one window service” offices, which citizens visit to pay communal bills and obtain other municipal services. Citizens are required to first submit their requests to multi-service utilities. If requests are not resolved at that level, they can be escalated to DHUs in City or Rayon executive committees, and then to the DHU on the Oblast level, the Ministry of Housing and Utilities, and finally the Presidential Administration itself. Authorities have 15 or 30 days to respond to new complaints, and 30 days to review an appeal. In practice, however, citizens often submit requests to several entities at a time. Some of them send requests straight away to the highest authorities in the governmental hierarchy. As a result, many individual requests that concern municipal communal services reach the Presidential Administration. The hierarchy for submitting complaints is described in Figure 3. 8 Figure 3. The hierarchy of complaint handling institutions The majority of HU requests is submitted in a written form and refers to the issues of communal buildings repair and maintenance. According to statistics provided by the MHU, 102,000 citizen requests are sent yearly to different HU authorities. The MHU receives 70,000 citizen appeals per year, indicating that citizens tend to send requests to all HU authorities at a time, and not only to the lowest responsible authority. Nearly 60,000 reports are submitted in a written form, via regular mail. Only 7,000 reports are submitted electronically. 30 percent of citizen requests take a consultative form; 50 percent are questions and requests regarding building renovations and usage of common spaces; 14 percent are related to sanitation issues; and 5 percent to sewerage. A digital divide exists between Minsk and other oblasts. While 30% of requests that originate from Minsk are in an electronic form, only 9% appeals from the regions are submitted via the email. A gap also exists between citizen complaints in large cities and in smaller towns or villages. In small towns, people are often reluctant to lodge complaints as service providers would know them personally and complaints may negatively affect the delivery of services. There is no information about the quality and content of governmental responses to requests. All governmental entities are obliged by law to respond to complaints within 15 or 30 days, but there is a lack of information regarding the content and quality of these responses. City-level DHU representatives indicate that HU authorities utilize quality control mechanisms to scrutinize all responses to citizen requests. However, there is a lack of public information about the results of these monitoring efforts. All governmental responses take a strictly individual form. The addressee of a governmental response is the only individual who receives it. HU units are reluctant to publish either citizen requests or their responses to these requests, and often do not recognize the benefit of releasing this information to the public. While some governmental HU websites contain a section titled “You Ask, We Answer,” the selection of issues in these sections is fully discretionary and does not necessarily reflect the most prevalent needs and concerns expressed by citizens in their requests. Governmental grievance redress processes can be likened to a “black box.” Citizen requests are sent to governmental authorities pursuant to the law, but there is no publicly available information on the governmental response process and priorities. Lack of such information impedes the possibility to conduct a systematic assessment of the quality of governmental HU services, identify 9 strengths and weaknesses in the operation of multi-service utilities, reward good performers, help bad performers, and generally improve the provision of HU services. (c) Participation Residents can collaboratively manage their communal buildings. While the vast majority of the HU sector is strictly regulated by HU authorities, citizens can also choose to register communal building as “Property Owners Associations” (POAs) (“Tovarischestva Sobstvennikov”). POAs present an alternative to the governmental HU system and enable residents to collaboratively manage their communal property. Residents that are part of such associations appoint or elect a representative management committee that handles the maintenance of communal buildings on a daily basis. Instead of reporting to multi-service utilities when problems emerge, residents of POAs turn to their management committees, which are supposed to take care of the problems. While these structures present an alternative to the governmental HU system, the effectiveness and appeal of POAs have been limited. First, respondents to SATIO’s survey indicated that POA’s management committees are often insufficiently accountable and responsive to citizens, and cannot effectively solve HU problems. Second, only 1% of communal buildings in Belarus are registered as POAs. As the POA system is still nascent, POAs often encounter challenges in identifying independent service providers outside of the governmental HU system. Lastly, the legal status of POAs can be at times fragile, as governmental authorities can considerably intervene in their internal affairs. As a result, residents of communal buildings that face a choice between the governmental HU system and a more participatory POA structure often opt for the former, preferring the well-known limitations of the public HU system to the obscure challenges of a participatory management approach. Other participatory mechanisms in the HU sector are limited. Aside from the possibility to opt out from the public HU system and form a POA, the HU system does not provide formal mechanisms that would allow citizens to take an active part in the management of their communal property. The grievance redress mechanisms listed above are the only tool available to citizens to influence service provision in this sector. *** In sum, transparency is a major social accountability challenge in the HU sector. This challenge is conspicuous both in the area of governmental information provision and in the context of grievance redress. As part of the former, there is a lack of structured information about public services, tariffs, and plans. As part of the latter, there is a dearth of transparent quality control of governmental responses to citizen requests. Low HU tariffs contributed to a system of low citizen expectations from service providers. However, as HU tariffs are about to considerably increase in the coming years, improved provision of services is necessary in order to ensure citizens compliance with the new tariffs. Enhanced transparency of HU services and grievance response could be an important step in improving service delivery in the HU sector. 10 1. Sector Overview Belarus is a water rich country and available water resources are sufficient to meet both current and future demands. Groundwater resources are abundant, and yearly volumes of fresh water abstraction represent less than 3 percent of the total volume of fresh water generated. Water resources are primarily used for individual citizen consumption. Aside from this, 31 percent are used for agriculture and 20 percent go to industries. A large majority (about 84 percent) of the country’s water supply needs are met by groundwater supplies - with the notable exception of the capital city, Minsk, where surface water is used for the production of drinking water. Governmental policy priorities in the water sector are clearly identified. They include: (i) full coverage of water services, including in rural areas; (ii) continuous provision of safe drinking water; (iii) affordability of services for all segments of population; (iv) improvement of water systems’ operational efficiency (with reduction of water losses and increased energy efficiency), and (iv) protection of the environment. These priorities are reflected in the national water sector development program “Clean Water” (Chistaya Voda, 2005-2025). Water supply and wastewater coverage ratios are high by regional standards . In 2011, water supply coverage reached 86 percent of the population and sewerage coverage reached 74 percent, thanks to massive investments since 2006. However, there is a strong contrast between coverage in urban and rural areas. In urban areas, 95 to 100 percent of the population is served by a centralized water distribution system. This percentage is slightly lower (90 to 95 percent) for centralized sewerage. In rural areas 1 in 5 citizens still lack access to centralized water systems and 1 in 3 rely on individual sanitation facilities. Excessive iron and water contamination are the major water quality issues in the sector. Despite tight monitoring, excessive iron content in water remains a challenge in urban areas. Bacteriological tests reportedly fail to comply with national standards in 1 to 3 percent of cases. In rural areas, individual water sources are frequently contaminated and inappropriate for human consumption. Water from shallow wells is reportedly subject to bacteriological and chemical contamination in respectively 16% and 40% of cases, due to extensive use of fertilizers for agriculture. The water sector is governed by two key legislative documents: the Water Code and the Law on Potable Water. The Water Code of 1998 establishes the legal framework on protection and use of water resources. It defines the responsibilities of central and local authorities, the rights and obligations of water users, and the role of citizens and public associations, and it sets the rules regulating the intake of water and discharge of pollution. The new version, which is under review by the parliament and should be approved and implemented in 2013, is expected to introduce the concept of river basin management, based on the prevailing EU model. The Law on Potable Water of 1999 (amended in 2009) specifies the respective roles and responsibilities of the central, regional, and local councils, the rights and obligations of the drinking-water providers, the protection of potable water sources, information to be provided to customers, etc. The water sector is strictly regulated and hierarchical. MHU channels investment into water infrastructure and then transfers the newly built equipment to local authorities for operation and 11 maintenance. Regional and local HU authorities are responsible for the implementation of water and delivery of water services. In the capitals of the six Oblasts and in Minsk, responsibility for the technical aspects of water supply rests with Vodokanals, which are independent agencies (i.e., they manage their staff resources and determine their own rates following directives set by municipal executive committees). Municipal multi-service utilities are responsible for the provision of water services and for handling citizen requests and complaints. For an overview of the structure of these authorities, see page 5. 2. Project Overview The Bank-funded Water Supply and Sanitation (WSS) Project was initiated in 2009. The project development objective is to improve the quality, efficiency and sustainability of water supply and wastewater treatment services in six participating Oblasts covering about 1.7 million consumers. It was the Bank's first engagement in the Belarusian water sector, and it was designed to exclusively focus on priority physical investments. The project is expected to complete in 2013.The additional financing of USD 60 million is being discussed with the GoB. In 2011 the Bank and the Government of Belarus discussed the scope of a potential additional financing and agreed on the inclusion of activities aiming at increasing sector efficiency and sustainability. The Government expressed a strong interest in Bank’s support to modernize its water sector at the institutional and regulatory levels. Improvements in social accountability mechanisms can considerably enhance the efficiency of the sector. The Project finances investments in water supply and sanitation sector in six Oblasts (Gomel, Mogilev, Brest, Grodno, Minsk and Vitebsk). The projects that are financed consist of rehabilitation and improvements in the water supply networks, conversion from surface water supply to groundwater supplies, installation of iron removal stations and other quality enhancement measures, as well as installation of water meters. In the wastewater area, investments are in rehabilitation and reconstruction of wastewater treatment plants; including installation of pumping stations, sludge dewatering, collection networks, modern equipment for monitoring stations and small laboratories. The implementation of the WSS project is currently underway. Works are completed in six sites and are ongoing in seven others, out of a total of 20 subprojects. 8,800 people received access to drinking water compliant with national quality standards, and 28 kilometers of transmission and distribution pipelines were laid or replaced. Completed works are in general of good quality and have delivered the expected outcomes. The MHU and local municipalities are the key stakeholders responsible for the implementation of WSS project. MHU is responsible for overseeing national investment plans in the communal services sector, including water, sanitation and solid waste. The owners and implementers of the projects at the local level are the municipalities involved. The Project Implementation Unit (PIU) established in 2008 at the MHU for the purposes of coordinating the WSS project is responsible for the daily management of all project components. 12 3. Social Accountability Mechanisms and Challenges The following sections discuss social accountability mechanisms and challenges relevant to the water sector in general and to the WSS project in particular. (a) Information Provision Information provision on water services is limited. Both at the sector and at the project level, information about water services is not provided in a fully structured manner. Residents are often not formally notified when new water objects are constructed in their vicinity as part of the WSS project, unless they explicitly ask for information about it. While HU authorities may refer to development or construction plans in response to new citizen requests or complaints, such notification only arrives on an individual and ad hoc manner, and is not conveyed to a broader audience. Transparency of tariffs regulation presents a challenge. Residential tariffs are set by the MOE and apply nation-wide. Tariffs regulation is done in compliance with socio-economic directives provided by the Presidential Administration through the Social and Economic Development Programs, and is based on sector financing needs identified by the MHU. However, citizens are not provided with information about the structure of tariffs or their anticipated changes. Thus, they are not necessarily aware of the heavy cross-subsidization of tariffs and may not understand why tariffs increase. This lack of transparency is likely to negatively affect citizens’ willingness to pay larger utilities bills. Performance reports are not translated into policy actions and not transparent. Multi-service utilities submit reports to Oblast executive committees on a monthly and quarterly basis. However, these reports lack actionable performance indicators, and there is reportedly little or no feedback on these reports from the oblast or the MHU. Further, 21 water utilities currently report on their performance on a yearly basis to the MHU through the International Benchmarking Network. However, this data is not integrated in the sector reporting and monitoring process conducted at MHU and oblast levels. More generally, there is no systematic use of benchmarking methods to help utilities understand their operational weaknesses and to positively impact their managerial decisions in the future. None of the reports submitted by multi-service utilities to Oblast executive committees or to the MHU are publicly available. There is a lack of performance indicators in the water sector. Reports from utilities, business plans, modernization plans, as well as consolidated reports from Oblasts and the MHU include a great number of indicators. There are currently two performance indicators that are in use in the sector: (i) service coverage, in both urban and rural areas, for both water and wastewater services; and (ii) unaccounted-for water level, reflecting the level of physical and commercial losses in a water system. These indicators, however, do not reveal much about the quality and effectiveness of water services. Performance indicators that would enable to assess the level of performance in the sector (benchmarking) and monitor the progress towards objectives and targets are currently absent. There is also a lack of well-defined performance indicators that would allow a fair assessment of the internal performance of each utility, and define objectives and targets for utility business development plan. Lack of transparent benchmarking impedes social accountability and creates disincentives for improving performance. This conclusion was also confirmed by the “Demand for Good Governance in Water Sector” study in Ukraine, 2013. The Study confirmed that lack of 13 consumer knowledge of the quality of water and utilities’ performance benchmarks is one of the major factors contributing to a low level equilibrium. (b) Grievance redress mechanisms Social accountability mechanisms in the water sector are similar to the general HU mechanisms. Pursuant to the laws on Citizen Appeals and on Consumer Rights Protection, citizens may submit requests and complaints to multi-service utilities and HU authorities. As residential customers read their meters themselves, water utilities have little or no contact with them. Regular HU authorities (multi-utilities, city-level DHU, etc.) are therefore responsible for handling citizen requests. The “black box” approach to grievance redress is conspicuous in the Water Sector. Similarly to other areas of citizen requests, HU authorities are reluctant to publish either the content of citizen request or governmental responses to these requests. Reportedly, the priorities of the WSS project were determined based on citizen needs and demands, as expressed in citizen requests submitted to HU authorities. However, as there is no publicly available information on the content of these requests, it is impossible to assess whether citizen needs are indeed reflected in the selection of WSS objects. (c) Participation There are few participatory mechanisms in the Water Sector. Similarly to other HU areas, there are no formal venues for citizens to get engaged in decision-making processes related to water use and management. While Property Owner Associations, which engage citizens in the management of communal property, sought to represent an alternative for the governmental HU authorities, these Associations have only had limited success in practice. 4. Recommendations for HU authorities The recommendations for integrating SA mechanisms in the Water sector and WSS project focus on improving information provision and strengthening grievance redress mechanisms. These recommendations are directed to Water authorities in Belarus: MHU, city or oblast-level DHU, and multi-service utilities. They are listed by the order of their priority and importance, from high to low. Each recommendation is accompanied by a brief feasibility assessment. As the project is close to completion, there are no recommendations for the PIU in this section. Full stakeholder analysis and a list of recommendations for each of the stakeholders are available in Annex II. (a) Improving information provision about water services Improved provision of information about water services could strengthen citizen collaboration with water policies. As part of the SATIO survey, for example, citizens noted that they would be more willing to take part in energy saving activities if multi-service utilities would ensure the transparency of their services. Improved provision of information on HU issues that matter to citizens could therefore improve the public perception of HU authorities and strengthen citizen compliance with new HU policies. The following activities can be undertaken to improve the provision of information in the sector. 14 Detailed and disaggregated information about water tariffs could be provided. Citizens indicated that the lack of detailed information about the structure of their utilities bills is a major source of dissatisfaction with regard to water services. As citizens do not know how tariffs are constructed, it will be difficult to convince them to pay higher utilities fees. It would therefore be useful to explain to citizens the real prices of water services (compared to the tariffs paid by citizens), in order to demonstrate the degree of governmental subsidization. Other types of information that could be provided to citizens include budgetary allocations on water services and plans related to constructions and repairs. Civil society organizations could play an instrumental role in facilitating the provision of information from municipal authorities to citizens, and leading capacity building activities in this field (see the Ukrainian example in Box 1). Accessible informational channels could be used. Public utilities bills are the most intuitive place for information about the structure of tariffs. As all households receive such bills and residents look at them before making payments, any information provided on the bills is likely to be noticed. Other channels for publicizing information could include lobbies and elevators in communal buildings, billboards in multi-service utilities and other HU authorities, and online websites of multi-service utilities and HU authorities. Box 1. Public consultations in the water sector in Ivano-Frankivsk, Ukraine In January-May 2013, the municipality of the city Ivano-Frankivsk in Ukraine worked with a local CSO, the “Municipal and Regional Development Center – Resource Center” to strengthen information provision and public engagement around water services in the city. First, the CSO conducted assessment of the utility’s web-site and provided recommendations as to how to improve information provision, led capacity building activities for the staff of the Municipal Company “Ivano-Frankivskvodoecotechprom,” the municipal water service provider. As part of these activities, the CSO trained staff members on how to inform citizens and involve them in discussions on municipal development plan, service delivery improvements, etc. 95 staff members of the water service provider and other local self-government bodies took part in these trainings. Further, the CSO organized three public consultations on the topics of “Water Supply and Disposal Tariffs in the City of Ivano-Frankivsk,” “Consultations on the MC “Ivano-Frankivskvodoecotechprom” Strategic Development Plan for 2013-2018,” and “Accountability Improvements in the City Water Supply System.” The consultations were attended by approximately 400 people, including representatives from the city council, utility, academia, chiefs of home-owners associations, and city residents. Thanks to these activities, local residents could express their opinions and make suggestions on various topics related to water services. Feasibility assessment: Responsible stakeholder: MHU and multi-service utilities. Priority: High. Providing detailed information about the structure of tariffs is a necessary step in preparing citizens to the increase of prices. The use of accessible and user-friendly channels and formats to provide information increases the chances that citizens will read and apprehend this information. Difficulty: Easy. The MHU should already have the details about the structure of the water tariffs and it should not be difficult to release it to the public. The suggested channels are widely available and inexpensive. 15 Sustainability: Medium. Once disaggregated information about tariffs is released, it will only be necessary to update it from time to time. (b) Assessing citizen satisfaction Satisfaction surveys can play an important role in improving water services. Information on citizen satisfaction with water services would be useful for HU authorities to assess in real-time the implementation of water sector policies and, if needed, adjust service provision to fully reflect citizen needs and demands. Such satisfaction surveys can be inexpensive and easy to implement. First, citizens who proactively approach multi-service utilities can be directly asked about their degree of satisfaction. This follow up inquiry can be either human or automated. In the latter case, an automated message can ask the respondent to rank (using phone buttons) her degree of satisfaction with service provision, the extent to which the services have managed to solve her problem, etc. (an example of such a practice is described in Box 2). Citizens can also be asked to express their opinion about HU services as part of online polls on official municipal websites. More scientific—but also more costly—satisfaction surveys may periodically poll random samples of citizens and inquire about their opinions with regard to HU services. As many multi-service utilities already operate a website, it should be easy to carry out an online survey. A system for automated follow-up calls can also be administered by local or regional HU authorities. More rigorous types of surveys could be contracted out to external service providers. Similarly to the experience of waste management in Belarus, university departments can help HU authorities hold such surveys. Some basic questions that could appear in satisfaction surveys are available in Annex VII. Feasibility assessment: Responsible stakeholder: MHU and other HU authorities. Priority: High. Satisfaction surveys can prove as an inexpensive and effective means to assess the performance of service providers, as well as identify strengths and weaknesses. Difficulty: Easy. Satisfaction surveys are inexpensive and can rely on existing good practices. Sustainability: Medium. The commitment of HU authorities will be necessary in order to sustain the practice of satisfaction surveys. Box 2. Satisfaction surveys on service delivery in Pakistan When a citizen in Punjab, Pakistan visits a governmental department to obtain public services (in the areas of health, property registration, social services, etc.), their name, mobile phone number, type of service requested, and the details of the responsible official are sent to a privately contracted call center. The call center follows up with an automatic SMS message and a phone call requesting feedback. Citizen responses are entered into a database and reports are made available in real-time to both the ministry providing the service and an oversight body. In addition, the project supplements this survey with direct calls to citizens by senior government officials, local assembly members, and the minister himself (their voices are typically recorded and the calls are automated). Since the launch of the project, the call 16 center has sent SMS messages and phone calls to solicit feedback from more than 200,000 citizens, and over 30,000 citizens provided feedback on various services.5 (c) Publicizing the content of citizen requests The content of citizen requests and governmental responses could be made publicly available. Transparency of grievance redress processes could improve governmental service provision and contribute to a positive perception of water services in the public. Specifically, the publication of frequently submitted requests could save both citizens and HU representatives time and efforts that currently go into submitting and responding to repetitive requests. A publicly accessible database of citizen requests and governmental responses could also be beneficial for HU agencies on the rayon and oblast level in putting pressure on lower HU units to improve service delivery. Citizen requests and governmental responses can be publicized on the websites of HU authorities or on billboards in the offices of multi-service utilities. Feasibility assessment: Responsible stakeholder: MHU and multi-service utilities. Priority: High. The publication of citizen requests and governmental responses may save time and resources to both government and citizens, help strengthen trust in public authorities, as well as monitor the performance of service providers. This information can be provided on the websites of HU authorities and in the offices of multi-service utilities. Difficulty: Medium/Hard. As complaints are already aggregated by HU authorities, the primary difficulty in making their contents public is psychological—HU authorities are often reluctant to release this type of information. Sustainability: Medium. Once the content of citizen request will start to be published, it will be easier to continue this practice. (d) Developing and publicizing performance indicators The MHU could develop and publicize indicators to assess the quality of services provided by multi-service utilities. Clear performance indicators would allow the MHU and lower HU authorities to assess the quality of services provided by each multi-service utility. Such indicators may include the following: (i) budget; (ii) expenditures and costs of goods and services; (iii) priorities and planned activities for each quarter; (iv) activities undertaken in each quarter; (v) type and content of citizen complaints; and (vi) content of response to citizen reports (if the problem was solved, explain how; if the problem was not solved, explain why) and the amount time required to respond. Such indicators would be useful for internal monitoring purposes. There will also be a considerable value in their publication. Publicly available information on the comparative 5 For more information about the project, see “Pakistan: Enhancing Service Delivery in Districts across Punjab,” World Bank News (2012), http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:23302910~pagePK:34370~piPK:34424~theSi tePK:4607,00.html. 17 performance of different utilities could create a positive competition spirit and put pressure on utilities to improve the quality of their service delivery. As performance indicators may be too complex for the public to comprehend, a simple ranking system for utilities could be developed. Such performance information could be publicized on billboards in the utilities’ offices and/or on dedicated governmental websites. Further, CSOs may serve as intermediaries between municipal authorities and citizens. Such CSOs could help municipal authorities develop and publicize indicators, as well as visualize and interpret relevant information. They could also help disseminate this information to the public and hold training sessions. Box 3. CSO-led monitoring of the water sector in Ivano-Frankivsk, Ukraine In January-May 2013, two civil society experts monitored on a monthly basis the website of the municipal water services provider, MC “Ivano-Frankivskvodoecotechprom.” They aimed to assess municipal disclosure on water quality and performance indicators, examining both the quality of the provided information and technical aspects. Based on the results of this evaluation, the experts submitted recommendations and proposals on improving information and performance indicators on water quality, water supply services, as well as suggested innovative techniques to engage citizens in public consultations regarding water services. Improved monitoring mechanisms can be beneficial to assess the effectiveness of existing grievance redress mechanisms. While multi-service utilities are obliged to submit reports summarizing the contents of complaints they had received from citizens, the existing process is not fully efficient: there is no systematic use of benchmarking methods to help utilities understand their operational weaknesses and improve their services. An effective monitoring system could help alleviate this issue and serve as a useful management tool for HU authorities. Having access to real- time monitoring data can allow the HU authorities to more easily identify problem areas, quickly analyze suggestions and comments about the service providers’ performance, devise strategies to reallocate resources, and upgrade processes to enhance operational efficiency. A useful example on the design of monitoring systems is described in Box 1. Box 4. Monitoring grievance redress in Indonesia Indonesia’s National Community Empowerment Program (NCEP) has a wide variety of complaints uptake locations, such as complaints books in community secretariats, phone, e-mail, text messages (SMS), project website, project staff, the media, etc. NCEP staff members input monitoring and evaluation data directly into a website so that the PIU and other governmental authorities can access “real-time” data about citizen complaints. The web-based management information system database contains a virtual “library” of past grievances, along with the feedback reviewers provided on these grievances. It includes data such as complainant information, details of the case, an assessment of the problem, potential follow-up actions, and how the grievance was resolved. 18 Feasibility assessment: Responsible stakeholder: MHU and other HU authorities, Priority: Medium. While performance indicators and improved monitoring tools are important, they do not seem to be of a very high and immediate priority for Belarusian authorities. Difficulty: Hard. As there is currently a lack of extensive performance indicators in the Water, the development of such indicators is likely to take time and efforts, as well as pose organizational hurdles. Sustainability: Medium. Performance indicators will have to be measured and updated from time to time, thus requiring the periodic involvement of MHU. Once monitoring mechanisms are introduced, some leadership commitment will be required in order to sustain them. 5. Recommendations for the PIU The following recommendations are project-specific and directed to the PIU. They are listed by the order of their priority and importance, from high to low. (a) Improving information provision The PIU could proactively inform citizens about the construction of new water objects . The PIU currently does not inform residents of adjacent areas regarding its construction plans, thus nurturing a passive citizen approach to HU services. However, as citizen collaboration with higher tariffs will be required in the near future, it is important to ensure that citizens are aware of the priorities, plans, and complexities in the water sector. The PIU could help accomplish this objective by providing detailed and easily accessible information about its construction plans. Such information could be publicized as part of local radio and TV programs, in local newspapers, on billboards in public places, and via the internet. A useful example on how to educate citizens about urban services is described in Box 3. Feasibility assessment: Priority: High. The provision of such information is an important step in raising citizen awareness about the plans and priorities of the water sector. Difficulty: Easy. A variety of inexpensive means is available to the PIU to publicize information about new constructions (e.g., local radio, TV, newspapers, billboards, the internet). Sustainability: Medium. The ability of the PIU to provide information about water objects is naturally limited by the project duration. Box 3. Educating citizens about urban services in Colombia Colombia’s Bogotá Urban Services Project took a number of steps to educate citizens about the project. First, the project held over 300 information sessions in the project area before and during the construction of the works. Approximately 2,400 participants attended these sessions, which focused on a range of subjects, including overall project design, the construction schedule, and citizens’ options for grievance redress. 19 The project also used informational bulletin boards throughout the project area to disseminate informational materials: general brochures on project details, designs and the location of key offices; quarterly project implementation handouts reporting on progress; and specific brochures on such subjects as information meetings, construction details, social services, and grievance redress. Finally, the project established 23 information kiosks throughout the work area where citizens could access this wide range of information. (b) Launching an interactive channel for citizen reports The PIU could launch an interactive channel (hotline or website) for citizen reports. While the PIU leads the construction of important water facilities, it currently does not operate any interactive channel for communication with citizens. As the PIU is responsible for the overall implementation of the project, it can find such communication channel useful for its own monitoring needs. A dedicated hotline operated by the PIU could invite citizens to report to PIU potential problems or complaints associated with the construction of water objects across the country. This could enhance the effectiveness of the monitoring efforts undertaken by the PIU and ensure the smooth implementation of the project. Such a hotline would provide the PIU with real-time information about the project and facilitate a quick resolution of problems as they arise. The contact details of such a hotline could be publicized in local newspapers and on billboards in the vicinity of the construction site. In areas with high internet coverage, the hotline could be complemented with (or replaced by) an online website where citizen grievances could be lodged. Feasibility assessment: Priority: Medium. Citizens who have complaints against the project typically approach HU authorities, and there is no immediate need for a separate channel operated by the PIU. Difficulty: Medium. The PIU would have to invest some time and resources in launching and maintaining the hotline. The creation of such a hotline would require a dedicated phone number and several work hours per week of an employee who would be responsible for taking the calls. Sustainability: Medium. The ability of the PIU to provide information about water objects is naturally limited by the project duration. Table 1. Summary of recommendations in the Water Supply and Sanitation Sector Recommendation Responsible stakeholder Priority Difficulty Sustainability Improving information provision Detailed and disaggregated MHU and multi-service High Easy High information about water tariffs could utilities be provided Accessible informational channels MHU and multi-service High Easy High 20 could be used. utilities The MHU could develop and MHU Medium Hard High publicize indicators to assess the quality of services provided by multi- service utilities. The PIU could proactively inform PIU Medium Medium Low citizens about the construction of new water objects Improving grievance redress mechanisms The content of citizen requests and MHU and multi-service High Medium Medium governmental responses could be utilities made publicly available Satisfaction surveys can play an MHU and HU authorities High Medium Medium important role in improving water services Improved monitoring mechanisms MHU and other HU Medium Hard High can be beneficial to assess the authorities effectiveness of grievance redress mechanisms The PIU could launch an interactive PIU Medium Medium Low channel (hotline or website) for citizen reports 1. Sector Overview Belarus attaches high priority to environmental protection, particularly to waste management issues. Laws governing the sector include the 2005 Law on Sanitary and Epidemiological Safety of the Population, the 2006 Law on Environmental Protection, and the 2008 Law on Waste Management. The National Action Plan for Natural Resource Management and Environmental Protection (2006-2010) and the Municipal Waste Management Program (2007-2010) apply general principles consistent with European Union (EU) Directives and Belarus’ international obligations. The country’s specific objectives in this field include: (i) ensure 100 percent coverage of separated municipal waste collection in large cities, and maximize recovery of valuable materials; and (ii) practice environmentally sound management of high-priority chemical pollutants, specifically persistent organic pollutants (POPs). Belarus is a signatory on several international conventions and has implemented a national strategy on environmental protection. In February 2004, Belarus ratified the Stockholm 21 Convention on Persistent Organic Pollutants and during 2004-06, the Ministry of Natural Resources and Environment Protection (MNREP) developed the required National Implementation Plan (NIP), with the support of the Global Environmental Facility (GEF).The NIP became a National Program, adopted with full legal and regulatory authority in 2006. It was submitted to the Stockholm Convention Secretariat in 2007, and since then, Belarus has invested its own resources in NIP implementation as part of national programs for environmental protection. The Belarusian program of municipal solid waste management (SWM) aims to encourage separated waste collection and recycling. According to the Law on Waste Management (2008), one of the basic principles of waste management is to prioritize recovery and recycling relative to landfill disposal, provided that environmental requirements are met and economic efficiency considerations are taken into account. Pursuant of this principle, the Belarusian government develops a network of municipal solid waste processing facilities in each Oblast capital and in several secondary towns to increase material recovery rates from municipal solid waste, decrease waste disposal volumes to existing landfills, and capture energy content. The Ministry of Housing and Utilities (MHU) is the main stakeholder responsible for the implementation of governmental SWM programs. The MHU oversees national investment plans in the communal services sector, including water, sanitation and solid waste. The overall objective of the Ministry is to prevent adverse environmental impacts, to ensure coverage of 100% of population in large cities by separate municipal waste collection. The ministry pursues these objectives through Oblast Executive Committees (“Oblispolkom”), which ensure that national programs are implemented at the local levels in the Oblast. Similarly to other public utilities tariffs, household solid waste tariffs are low. Solid waste household tariffs are established by the Council of Ministers. It is estimated that these tariffs cover about half the cost of removal and burial of solid waste and the difference is covered through cross subsidy from non-households and other subsidies. The precise structure of the subsidies is determined by city or rayon-level Executive Committees. Tariffs are increased annually, and non- households pay almost three times more than households. The average 2009 household tariff for solid waste collection and disposal in Grodno is BYR 4,760/m3 ($1.76). This amounts to average monthly household bill of about BYR 2,729, which is 0.24% of the average household monthly income. The overall communal services bill amounts to nearly 13% of household income. Low citizen awareness and participation hinder the implementation of the governmental SWM program. While SWM has been a priority for the Belarusian government, citizens are generally unaware of the importance and benefits of separated waste collection programs, and participation rates in such programs have been very low. This reality undermines the effectiveness of SWM program, as lack of “at source” separation of solid waste leads to a low quality of the collected recyclables and impedes the operation of solid waste operation facilities. The low costs of household tariffs contribute to the lack of citizen interest in SWM. However, costs have already been increasing and citizen participation is necessary for the success of the SWM project. Targeted actions could therefore be undertaken to inform citizens about the importance and benefits of SWM, and engage them in separated waste collection. 22 2. Project Overview The Integrated Solid Waste Management (SWM) project operates in the City of Grodno. The overall project budget is USD48,75 million out of which the Bank’s loan is USD 42,5 million. The Grodno Oblast has a population of 1,150,000, of which about 330,000 reside in the oblast capital of Grodno city. The city shares borders with Lithuania and Poland, and its dominant industrial sectors are food processing (26.9 percent), chemical and petroleum products (22.6 percent), and machine building and metalworking (15.3 percent). Annual growth of industrial production amounts at 11 percent on the average, and average household monthly income is BYR1.13 million. The city has a well-established waste collection program with 100 percent collection coverage, and the municipality6 subsidizes 65 percent of the costs of solid waste collection. Grodno’s municipality has initiated a municipal recycling program, but citizen participation in recycling has been low. The SWM project in Grodno (2010-2016) is under the responsibility of the municipality, which recognizes the economic and environmental value of improving solid waste separation and the reuse of collected valuable material. Grodno’s recycling program is part of the State Program for Recyclable Materials Collection and Processing 2009-2015, dated June 29, 2009. Nearly 40 percent of Grodno residents have access to containers for separate recycling, but their awareness and participation in separate waste collection are limited. The ISWM project aims to improve and expand Grodno’s existing recycling program to more households and businesses. The project’s development objectives (PDO) are twofold: (i) to increase the environmental benefits of integrated solid waste management in the City of Grodno by recovering and reusing recyclable materials; and (ii) to strengthen national capacity to manage hazardous wastes associated with POPs and reduce environmental and health risks associated with the presence and release of POPs in global and local environments. The Project includes four components: (i) construction of a mechanical waste separation treatment facility (MWSTF) in the city of Grodno; (ii) improvements in source-separated waste in the city of Grodno by providing equipment to collect and separate waste at source; (iii) GEF-funded POPs stockpile management; and (iv) project management. The first two components are the most relevant to this assessment. The first component of the ISWM project is the construction of a MWSTF in Grodno. The MWSTF is intended to process up to 120,000 tons/year of residential and commercial (non- industrial) solid waste which is approximately 75 percent of the total solid waste stream generated by Grodno’s population. The technical design of the facility is currently underway, and most of the project’s funds are allocated to the construction of the facility. The second component of the project is Waste Separation Management Improvements. This component is estimated to cost US$4.0 million. The governmental budget was originally supposed to fully finance the component, but it will be eventually co-financed by the World Bank due to savings accrued as part of the MWSTF construction. The objective of this component is to improve separate waste collection “at source,” so that the MWSTF receives higher-quality dry input materials to process. As part of this, the PIU works with the Grodno municipality to review existing logistics for collecting separated waste and provide suitable equipment for waste collection. These activities complement the Grodno program to increase collection coverage of source separated 6 The executive committee of the City of Grodno will be hereinafter referred to as “Municipality.” 23 materials. It is anticipated that they will be implemented in the first two years of the project, in time to provide improved source-separated materials for MWSF. The MHU and the Grodno municipality are the key stakeholders responsible for the implementation of the project. The MHU is responsible for overseeing national investment plans in the communal services sector, including water, sanitation and solid waste. The Project Implementation Unit (PIU), established in 2008 at the MHU, has the primary responsibility for coordinating the implementation of the proposed solid waste components of the project during the construction phase with respect to Bank relations and requirements. The municipality, in consultation with the Grodno Oblast and the MHU, exercises decision-making responsibilities with regards to investments under the Project, and it will be the owner of MWSTF. 3. Social Accountability Mechanisms Citizen awareness and participation in separated waste collection are integral to the success of the project. Lack of “at source” separation of solid waste leads to a low quality of the collected recyclables and impedes the operation of the planned MWSTF. The existing separation at source program in Grodno has had mixed results in terms of compliance resulting in low quality of collected recyclables. Citizens are therefore supposed to play a central role in separating solid waste and preparing it for recycling. Accordingly, the ISWM project includes a planned information campaign and awareness-raising activities. In order to better design these activities, the municipality commissioned a willingness-to-pay (WTP) survey among the residents of Grodno. The WTP survey examined the importance of improved waste management services for the residents of Grodno. The survey was held in July/August 2009 among a random sample of households and businesses in the City of Grodno to assess the value residents attach to solid waste recycling. The target audience of the survey included households and commercial entities have currently served by the solid waste recycling program; as well as households and commercial entities that are not currently served by the solid waste recycling program. Survey results revealed insufficient citizen awareness and low participation in ongoing SWM efforts. According to municipal sources, the SWM program currently covers about 40 percent of city districts, but the survey indicated that only 16 percent of the population in the covered areas participates in recycling efforts. Overall, only 37.4 percent of respondents are aware of the solid waste separation program in Grodno. Of those who are familiar with the program, 65.54 percent know what kinds of material can be remanufactured, while 61.49 percent do not know how to utilize SW. The main source of citizen knowledge about the program is the mainstream media (80.4 percent). The survey also indicated that citizens are willing to pay more for improved SWM services . Availability of information is a key factor constraining citizen participation and willingness to pay higher fees. While citizens are largely unaware of municipal recycling efforts, the survey showed that households and private businesses would be willing to pay for improved recycling services: households indicated a willingness to pay an average of 5,100 BYR per month, while business were willing to pay up to 88,946 BYR per month per entity. 24 The Municipality of Grodno plans to undertake several steps to better inform residents about SWM. These activities aim to increase citizen awareness of the benefits and importance of SWM, and educate them on separated waste collection. They will include different forms of information campaigns that will be led by two principal municipal departments: the Ideology Department and the Department of Housing and Utilities (DHU). The objective of the campaign is to result in the participation of 80 percent of Grodno residents in a waste source separation program by 2016 (compared to 16 percent before the project). The full list and proposed timetable of the planned activities is available in Annex V. The Ideology Department in Grodno is responsible for political education and information. The Department, which is part of the municipality, is accountable to the Regional Executive Committee of Grodno and to the national Department for Ideological Work. The Department oversees the work of newspapers, radio, and television. The objectives of the department are to lead information campaigns about governmental policies and activities, and monitor the implementation of governmental policies in the field of political ideology, information, and political education. The Department has considerable experience with leading information campaigns in Grodno, particularly on environmental issues. For example, it has been successfully recruiting university biology and ecology students to volunteer in summer camps and work with children to spread awareness about various ecological matters. As part of the ISWM Project, the Ideology Department is assigned to lead information campaigns about the importance of SWM. Scheduled activities include the following: conduct surveys to determine the level of knowledge and awareness of Grodno citizens (in collaboration with the State University of Grodno); organize educational press-conferences; coordinate information campaigns on radio and television, and in newspapers; support the creation of an advertisement video clip; publish information about the benefits and importance of recycling on public bulletin boards in the city; and publish information on schedules for waste collection and closing chutes. The DHU is responsible for the execution of national housing and utilities policies in Grodno. The Department, which is part of the municipality, is accountable to the Regional Executive Committee of Grodno and to the Ministry of Housing and Utilities. The Department is responsible to implement national policies in the HU sector and ensure the sustainable management of communal services in Grodno. It is also responsible to create the necessary conditions for an effective work of local-level housing and utilities committees, satisfy citizen needs and demands in the area of communal services, and improve the delivery of housing and utilities services. The DHU operates several channels of communication with citizens: citizens may send their requests and complaints to the Department via mail or email, during office hours (the names, phone numbers, and office hours of the directors of DHU are listed on the website), and via a hotline. As part of the ISWM project, the DHU is responsible for creating interactive channels of communication with citizens about SWM. Building on its existing experience with handling citizen requests and complaints on HU, the DHU will be responsible for the following activities: creating and managing a hotline for citizen consultations on SWM; taking part in press-conferences; recruiting groups of volunteers among employees in municipal facilities and organizations; holding public meetings to provide information about separate waste collection; providing information 25 about recycling and SWM on bulletin boards in public and private organizations, lobbies of communal buildings, and in Housing and Utilities Offices. The Ideology Department and DHU will partner with several other organizations to implement awareness-raising activities on SWM. The Sociology Department of the State University of Grodno will partner with the Ideology Department to conduct a survey to determine the knowledge of Grodno residents regarding SWM. “Grodno Plus,” a local television and radio station, and the newspaper “Grodnenskaya Pravda” will collaborate with the Ideology Department to provide information about SWM to Grodno residents and develop video-clips to popularize the importance and benefits of SWM. The Department for Environmental Protection has already prepared posters and brochures that emphasize the environmental benefits of recycling and the grave negative effects of non-separate waste collection. See Annex VI for examples of these posters. 4. Challenges The municipal information campaign may encounter several implementation challenges. First, the implementation of the activities has been delayed several times and has not yet started. The Sociology Department in the State University of Grodno, which is supposed to conduct the survey on SWM, has just begun collaborating with the Municipality and progress with the other activities has been limited so far. The planned informational activities lack a strategic approach. While the planned activities require municipal departments to provide information about SWM, they do not specify what type of information should be provided, to whom, and how this target audience will access and use this information. Hence, while these activities would require considerable implementation efforts and costs, they might prove less effective than planned. The PIU is currently not involved in the awareness raising activities. As part of the Waste Separation Management component of the Project, the PIU is supposed to work with the municipality to review existing logistics for separated waste collection and provide suitable equipment and containers. However, as the PIU regards itself as a fully technical unit, it currently does not play a role in the information campaign planned by the municipality. This approach could be reconsidered, as the PIU could considerably contribute to the monitoring and evaluation of municipal activities in this field. There are no established venues for citizen participation in recycling. While citizen participation in separate waste collection is integral to the success of the project, there are currently no formal mechanisms that enable citizens to take a more active part in the municipal SWM program. Citizens do not possess full information with regard to the coverage of the program and may not know how to get involved more actively involved in it. There is a low coverage of separate waste collection containers. An aspect that hinders the effectiveness of the awareness campaign is the lack of sufficient waste collection containers in Grodno. While some residents are already aware of the importance of SWM and willing to take part in separated waste collection, they may not have access to separate waste collection containers in 26 their vicinity. It is therefore important to strategically complement the awareness raising campaign with the supply and installation of containers. 5. Recommendations for HU and municipal authorities Based on the existing experience and needs of the Project, the recommendations are structured around four topics: improving the provision of information about recycling services; assessing citizen satisfaction; launching a targeted information campaign; and enhancing citizen participation in recycling. These recommendations are directed to the following stakeholders: MHU, Grodno municipal executive committee (“Municipality”), city-level DHU, Ideology Department, and multi- service utilities. They are listed by the order of their priority and importance, from high to low. Each recommendation is accompanied by a brief feasibility assessment. Full stakeholder analysis and a list of recommendations for each of the stakeholders are available in Annex III. (a) Improving information provision on SWM services Better information about recycling services can improve their quality and reliability. Detailed and timely information about waste collection schedules, timetables for closing communal chutes, contact information of the authority responsible for waste collection should be easily available for Grodno residents. In order to maximize the accessibility of this information to all social groups, several channels for information provision could be used. In line with the activities planned by the municipality, bulletin boards located in lobbies of communal buildings can be helpful for the dissemination of such information. Provision of information on public utilities bills could be effective too, as citizens look at the bills before paying them. The internet could also be used for dissemination purposes, and relevant information could appear on the websites of multi-service utilities, as well as official municipal websites. Feasibility assessment: Responsible stakeholder: Grodno Municipality; Ideology Department; DHU; Multi-sector utilities. Priority: High. Providing detailed information about SWM services is a necessary step in engaging citizens in the SWM program. Difficulty: Easy. Municipal and HU authorities in Grodno already possess large portions of this information. Sustainability: Medium. It will be necessary to ensure that information is timely and reliable. (b) Enhancing citizen engagement in recycling Children could be main drivers of the SWM program in Grodno. Children may be the ones responsible for recycling in their households, and they could be explicitly targeted by the SWM program. Class hours could be dedicated to explaining the importance of recycling to children, motivating them to separate the collection of waste in their homes, and encouraging them to educate their families in this respect. Recycling competitions on who separates more waste could be conducted among children, classes, and municipal schools. ICT tools could be used to facilitate these competitions: children could report via SMS on their recycling progress; online interactive 27 maps could visualize the progress of participating buildings, neighborhoods, or schools; and social networks, such as VKontakte, could be used to coordinate efforts. School competitions have already been held by the Department of Energy in Belarus in the field of energy efficiency and proved successful in spreading awareness and encouraging smart use of energy. They could be replicated in the field of SWM.7 Box 5. Engaging children in recycling in Sarajevo, Bosnia-Herzegovina In April-June 2007, over 70 educational workshops for raising awareness on recycling and environmental issues were delivered to around 1,300 primary schoolchildren in Sarajevo districts where household waste separation containers were just being introduced. The awareness raising campaign included a creative competition on the theme of recycling, and at least 300 schoolchildren submitted their artwork. 12 winners in three categories were announced as part of a ceremony held during the World Environment Day in the city. This strategy contributed to the effectiveness of the recycling program. A total of 160 tons of waste was collected from 250 recycling bins in a 12-month period. Prior to this there had been no household waste separation in the city. While the Sarajevo program did not include ICT components, they could have been effective to enhance children’s engagement in recycling activities. University students could also be key participants in recycling activities. Targeted information activities could aim to achieve two objectives. First, inform students about the importance of separate waste management and encourage them to recycle. Second, recruit student volunteers to work with other population groups on SWM issues. Specifically, the positive experience of the Ideology Department with recruiting students to volunteer in summer camps and work with children on various ecological matters could be replicated here. Grodno’s Ideology Department is best suited to lead the implementation of these activities . The Department could rely on its prior experience to engage university students in the SWM program. In order to work directly with schools and children, the Ideology Department could collaborate with Grodno’s Department of Education, which could help ensure that teachers and school principals dedicate time and efforts to promote the SWM program. The Ideology Department could also consider collaboration Grodno’s ecological organizations, which have been active in promoting various ecological causes in the past. Feasibility assessment: Responsible stakeholders: Grodno Municipality; Ideology Department. Priority: High. Children and university students can serve as effective drivers of the SWM campaign. Difficulty: Medium. Active efforts by the Municipality and the Ideology Department will have to be undertaken in order to engage children and students in SWM activities. Sustainability: Medium. Active efforts by the Municipality and the Ideology Department will have to be undertaken in order to sustain the engagement of children and students. 7 See Belarus School Runs on Energy Efficiency, January 16, 2013. Available at: http://www.worldbank.org/en/news/feature/2013/01/16/belarus-school-runs-on-energy-savings 28 (c) Assessing citizen satisfaction Satisfaction surveys can play an important role in improving recycling services. As recycling is relatively new in Grodno, it would be helpful to gather information about the effectiveness of the program directly from participating citizens. Such information would be useful to the municipality in order to assess in real-time the implementation of the SWM program and, if needed, adjust the program to fully reflect citizen needs and demands. Satisfaction surveys can be inexpensive and easy to implement. First, citizens who proactively approached municipal services with regard to SWM issues can be directly asked about their satisfaction with the program. This follow up inquiry can be either human or automated. In the latter case, an automated message can ask the respondent to rank (using phone buttons) her degree of satisfaction with the program, the extent to which municipal services have managed to solve her problem, etc. (for an example of such a practice, see Box 3 above). Citizens can also be asked to express their opinion about the SWM program as part of online polls on official municipal websites. More scientific—but also more costly—satisfaction surveys may poll random samples of citizens in areas covered by the SWM program and inquire about their opinions with regard to SWM. Examples of questions that can be included in the satisfaction survey are available in Annex VII. Success indicators could be developed and measured. The municipal plan on raising public awareness as part of the SWM program currently lacks a measurement and evaluation (M&E) component. M&E indicators, however, are important in order to internally assess the effectiveness of the informational campaign and adjust it as needed. It could be helpful to explicitly incorporate such indicators into the informational campaign. The indicators may measure the rates of separate waste collection in areas covered by the information campaign compared to areas that are not yet part of the project, and assess the effectiveness of the different campaign components (e.g., the campaign messages that target businesses may or may not be more effective than the messages targeting elderly people). Feasibility assessment: Responsible stakeholders: Grodno Municipality; Ideology Department. Priority: Medium. Satisfaction surveys are an effective and inexpensive tool to assess the performance of service providers, as well as identify strengths and weaknesses of the SWM program. Difficulty: Easy. Satisfaction surveys are inexpensive and can rely on existing good practices. Sustainability: Medium. The commitment of municipal authorities will be necessary in order to sustain the practice of satisfaction surveys. (d) Launching a targeted information campaign Differentiated information messages on SWM could be beneficial. The information campaign on SWM could be tailored to match the needs and capacities of each target audience (e.g., children, students, women and senior people). Rather than relying on a one-size-fits-all approach, different messages could be sent to different social groups via different channels—all based on the interests, needs, and capabilities of these groups. For example, messages that target businesses could emphasize the commercial and economic value of SWM, and rely on information channels that businesses already use (e.g., bulletin boards in work places, business sections in local newspapers). 29 Messages that seek to reach young people could emphasize the environmental importance of SWM and appear in universities or on popular internet forums. Messages that aim to engage children in separate waste collection could highlight the playful aspects of waste separation and be primarily used in schools. Messages that are intended for the elderly population may explain the social and environmental benefits of recycling and be located in local “one window service” units—places that elderly people visit to pay their bill and receive other municipal services. Box 6. Increasing youth’s awareness about recycling In order to raise the awareness of children and young people to the importance of recycling, the municipality of London launched an online campaign called “Recycle for London” (http://www.recycleforlondon.com/). The campaign includes an interactive online platform where information about recycling is presented in an accessible way. The platform provides information on the importance of recycling and offers easy-to-implement tips on how to reuse and recycle different materials. It also enables citizens to get detailed information about recycling services in their neighborhoods by entering their address. The platform is linked to social networks and thus enables users to easily share information about recycling with their friends. London’s recycling campaign also features a mobile game, which can be downloaded from the online platform and that particularly targets young uses. The game challenges the user to starve their hungry “evil bin” by catching all recyclable materia ls in a green recycling box. Players score points for every item caught, and they lose the game if the “evil bin” eats three items which should be recycled. Another online game that has been used to increase children’s awareness about recycling is “Recycl e Hero.” In this game, children become heroes as they rescue the world from the evil waste-dumping action of Queen Ignorantia. The Queen has dropped all sorts of garbage on the planet. Children restore order by sorting the garbage in 36 puzzles set across six different environments. Players learn how to divide garbage into plastic, aluminum, compost, glass, paper and metals. The early puzzles involve swiping to sort, but the later puzzles add controlling spaceships and shooting down garbage that floats down from the sky. Children get to design their own avatar; and the animated recycling bins add an element of fun to the sorting activities. By putting the lessons about recycling into a fast-paced puzzle game, the application makes learning about pollution fun. The game can be downloaded for free to computers, tablets, or smartphones. The Ideology Department is well suited to lead a tailored information campaign on SWM. Given the Department’s prior experience in working with student volunteers to spread awareness about ecological issues, the Department could rely on a similar strategy for the SWM program and engage a cadre of dedicated students who would spread the message of SWM among Grodno residents. The Department could also collaborate with ecology groups that are already active in Grodno in order to engage other population groups in the campaign. The collaboration with the State University of Grodno can provide an opportunity to identify such targeted approaches to each audience. It can be helpful to include in the survey planned by the University questions that examine the following aspects: (i) what are the main audiences for the information campaign; (ii) what types of messages are likely to convince these audiences; (iii) what are the best information channels to convey these messages; and (iv) what are the main constraints and challenges encountered by these audiences in taking an active part in recycling. 30 Feasibility assessment: Responsible stakeholders: Grodno Municipality; Ideology Department; State University of Grodno. Priority: Medium. A targeted information campaign will be helpful to enhance the effectiveness of the SWM program. Difficulty: Medium. Several actors will have to collaborate on the development of a targeted information campaign. Sustainability: Medium. The commitment of municipal authorities will be necessary in order to sustain and adjust as needed the information campaign. 6. Recommendations for the PIU The following recommendations are project-specific and directed to the PIU. They are listed by the order of their priority and importance, from high to low. (a) Improving information provision The PIU could take an active part in information provision. As the PIU is involved in all technical aspects of the project and works in a close collaboration with the Grodno Municipality, it is in a favorable position to get more actively engaged in the information campaign and monitor its execution. The PIU could take advantage of its role as a coordinator of the project amongst the MHU, Grodno Oblast Executive Committee, Grodno City, consultants, contractors and with the Bank in order to improve the effectiveness of information provision as part of the project. First, the PIU could monitor the information provision activities of the Municipality. It could develop success indicators in collaboration with the municipality and track the progress information provision activities. The PIU could also require the Municipality to provide bimonthly updates on the progress of the program, including detailed information on the success indicators of the project. The need to report to an external ministerial body on the results of its informational activities may create positive pressure on the Municipality to invest resources and efforts into the public awareness campaign. Second, the PIU itself could provide information about the construction of the MWSTF (including plans and progress reports) via local media and online. This information is currently not publicly available. As the PIU coordinates the provision of containers and trucks for separate waste collection, it could coordinate with the Ideology Department the types of messages that appear on these containers and trucks. Box 7. Educating citizens about urban services in Colombia Colombia’s Bogotá Urban Services Project took a number of steps to educate citizens about the project. First, the project held over 300 information sessions in the project area before and during the construction of the works. Approximately 2,400 participants attended these sessions, which focused on a range of subjects, including overall project design, the construction schedule, and citizens’ options for grievance redress. 31 The project also used informational bulletin boards throughout the project area to disseminate informational materials: general brochures on project details, designs and the location of key offices; quarterly project implementation handouts reporting on progress; and specific brochures on such subjects as information meetings, construction details, social services, and grievance redress. Finally, the project established 23 information kiosks throughout the work area where citizens could access this wide range of information. Feasibility assessment: Priority: Medium. Structured information provision is important for the success of the SWM project, but the Municipality can be more effective in this context than the PIU. Difficulty: Easy. The PIU is well positioned in order to oversee and take an active role in the SWM information campaign. Sustainability: Medium. The PIU will only be able to take part in the information campaign during the duration of the project. (b) Launching an interactive channel for citizen reports The PIU could launch an interactive channel (hotline or website) for citizen reports. As the PIU is responsible for the overall implementation of the project, it can find such communication channel useful for its own monitoring needs. A dedicated hotline operated by the PIU could invite citizens to report to PIU potential problems or complaints associated with the construction of the waste management facility and with other projects components for which the PIU is responsible (e.g., provision and installation of containers for separate waste collection). This could enhance the effectiveness of the monitoring efforts undertaken by the PIU and ensure the smooth implementation of the project. Such a hotline would provide the PIU with real-time information about the project and facilitate a quick resolution of problems as they arise. The contact details of such a hotline could be publicized in local newspapers and on billboards in the vicinity of the construction site. In areas with high internet coverage, the hotline could be complemented with (or replaced by) an online website where citizen grievances could be lodged. Feasibility assessment: Priority: Medium. Citizens who have complaints against the project typically approach HU authorities, and there is no immediate need for a separate channel operated by the PIU. Difficulty: Medium. The PIU would have to invest some time and resources in launching and maintaining the hotline. The creation of such a hotline would require a dedicated phone number and several work hours per week of an employee who would be responsible for taking the calls. Sustainability: Medium. The ability of the PIU to provide information about water objects is naturally limited by the project duration. 32 Table 2. Summary of recommendations in the Waste Management Sector Recommendation Responsible stakeholder Priority Difficulty Sustainability Recommendations for HU and municipal authorities Better information about Grodno Municipality; High Easy Medium recycling services can improve Ideology Department; DHU; their quality and reliability Multi-sector utilities Children and university students Grodno Municipality; High Medium Medium could be main drivers of the Ideology Department SWM program in Grodno Satisfaction surveys can play an Grodno Municipality; Medium Easy Medium important role in improving Ideology Department recycling services Differentiated information Grodno Municipality; Medium Medium Medium messages on SWM could be Ideology Department; State beneficial University of Grodno Recommendations for the PIU The PIU could take an active part PIU Medium Easy Medium in information provision The PIU could launch an PIU Medium Medium Medium interactive channel (hotline or website) for citizen reports 33 1. Sector Overview The heating system in Belarus is based on a centralized district heating (DH) system. The energy for heating and hot water for residential consumers is generally supplied by the boiler houses and combined heat and power plants. These facilities are under MHU and Ministry of Energy’s (ME) administration. Combined heat and power plants provide heating energy supply in big cities, while local boiler houses provide heating energy supply in smaller towns. The main energy source is natural gas and fuel oil. Local fuels, such as peat and biomass, are less used for DH. DH services in Belarus face sustainability challenges. The recent price increase for imported gas and the need to eliminate governmental cross-subsidization for heating services have put pressure on DH in Belarus. Until recently the prices for DH services for consumers were affordable since government considered them as a social good and applied a cross-subsidization approach. This means that consumers pay only a part of the costs, and multi-service utilities are compensated for the remaining costs. Currently, DH consumers pay only about 21- 37 percent recovery cost for heating services. Also, Belarus has enjoyed low prices for the natural gas imported from Russia which remains the main energy supply. At the same time, the state monopolistic position of the DH service provider contributed to issues related to sector efficiency and performance. Therefore, the relationship between multi-service utilities and consumers could be characterized by a low price- low expectation approach which is less dependent on customer satisfaction. The situation has been changing with the steady increase of DH prices which makes the service affordability a significant social issue. 2. Sector Overview The heating system in urban areas of Belarus is based on the centralized district heating (DH) system. The energy for heating and hot water for residential consumers is generally supplied by the boiler houses and combined heat and power plants. These facilities are under MHU and Ministry of Energy’s (ME) administration. Combined heat and power plants provide heating energy supply in big cities while local boiler houses provide heating energy supply in smaller towns. The main energy source is natural gas and fuel oil. Local fuels, such as peat and biomass, are less used for DH. District Heating (DH) services in Belarus face sustainability challenges. The recent price increase for imported gas and the need to eliminate government cross-subsidization for heating services have put pressure on DH in Belarus. Until recently the prices for DH services for residential consumers were affordable since the government considered them as a social good and applied the cross-subsidization approach. This means that consumers pay only a part of the heating costs while the multi-service utilities are compensated for the remaining expenses. Currently, DH 34 consumers pay only about 21–37 percent recovery cost for the heating services. Also, Belarus has enjoyed low prices for the natural gas imported from Russia which remains the main energy supply. At the same time, the state monopolistic position of the DH service provider contributed to issues related to sector efficiency and performance. Therefore, the relationship between multi-service utilities and consumers could be characterized by a low price-low expectation approach which is less dependent on customer satisfaction. The situation has been changing with the steady increase of DH prices which makes the service affordability a significant social issue. The increased import prices for Russian gas and government plan to eliminate the cross- subsidization will put pressure on heat affordability. The import price has sharply increased over the last five years -from about US $ 47 per trillion cubic meters (TCM) in 2006 to US $ 240 per TCM in 2011 -significantly increasing prices for consumers. The government acknowledges that the cross-subsidization approach is not sustainable and plans to bring residential tariff to full cost recovery by 2015. Under such circumstances, the heating tariff could skyrocket by 112 to 256 per cent in real terms8. A Public Expenditure Review in Belarus conducted by the World Bank in 2013 estimated that as a result of the planned residential energy tariff increase, up to 190 thousand people could fall below the poverty line and additional 120 thousand become vulnerable or at risk of poverty9. The increased use of local renewable energy (RE) and energy efficiency measures is viewed as a solution to allow less costly energy options. In 2011, the government adopted the National Renewable Energy Development Program and in 2010 it adopted the Energy Strategy. The government plans to achieve a 32 per cent share of local and renewable energy sources in fuel mix for electricity and heat generation by 2020, compared to 20.6 percent in 2010.The most significant share of RE based energy sources in Belarus belongs to biomass–based DH. In addition, heat savings measures could prevent heat loss and thus decrease the heat consumption. The switch to local fuels and heat savings are designed to minimize the increase of heating services bills and mitigate the burden on consumers. Price increase for DH will enhance the demand for better services and responsiveness. The system of cross-subsidization and the monopolistic status of service providers have removed the pressure to seek consumer satisfaction. The price increase for DH services might change the low cost-low expectations relationship between the multi-service utilities and consumers, which means that service providers might face increased pressure from consumers for greater responsiveness and improved service delivery. People will pay more attention to the quality of services as they will have to pay a larger share of their income for heating services. The issues of scarce resources and old infrastructure impose another level of constraints for service providers to meet consumer needs. Under new circumstances, developing a “consumer centric culture” is essential. The consumers could demand better services and will not be willing to pay unless they have good DH services. As previously mentioned, the legislation grants citizens good consumer protection. For example, the regulation on Protection of Public Utilities’ Consumer Rights provides consumer protection mechanisms such as independent verification of heating service’ standards and possibility to 8 Concept Note, Biomass Based District Heating (P130977) 9 Belarus Public Expenditure Review, Enhancing Public Services in Times of Austerity, 2013,The World Bank 35 demand bills’ recalculation. This means that consumers can require technical verification of the level of heating in their apartments and thus have evidence of inadequate level of service. Currently consumers are often not satisfied with the degree of heating in their apartments. Under pressure to pay more for services, the potential for consumers to make use of these mechanisms will increase and the multi-service utilities should prepare to cope with the new circumstances. A consumer- centric approach would provide information of interest to consumers and ask regular feedback on their work. The regular monitoring of consumers’ feedback and their degree of satisfaction will serve as a useful management tool to track and analyze performance trends, improve operations, decide on priorities, and achieve greater efficiency. This approach would help to build trust between DH service providers and consumers to minimize the risks associated with consumer’s readiness to pay for heating services and support the multi-service utilities adjustment to a ‘self-sustainability’ business model. 3. Project Overview The World Bank is committed to support the Government of Belarus in its efforts to increase RE use and EE measures. The ‘Belarus Biomass-based District Heating project aims to support the country strategy on energy efficiency and increase of local fuel use as an energy supply option. The project was initiated at the Government of Belarus request and complements the national RE and EE efforts. The World Bank’s involvement in this project is in line with its efforts to invest in the area of poverty reduction and climate change. The duration of the project is 7 years (2009- 2016). The Bank has provided a specific investment loan of USD125mln, the Government of Belarus’ contribution is USD68.1.mln. The Bank’s main government counterpart, the Energy Efficiency Department (EED), has requested Technical Assistance (TA) to identify and analyze the least costly heat supply options, namely increased use of biomass heat production and energy efficiency measures to improve the affordability of district heating services. The TA under this project aims to advise the Government of Belarus on two main issues/aspects. First, it will recommend how to increase the use of renewable biomass in selected towns in Belarus and second, it will advise how to improve energy efficiency of heat generation, transmission and distribution in the same towns. The specific tasks include: (i) review of regulation and incentives for biomass fuel use, (ii) review of contractual obligations for biomass fuel supply, (iii) analysis of least costly biomass-based heat supply options for 3 selected sites (large, medium and small towns), (iv) outline of the options available to improve energy efficiency of district heating in Belarus, (v) analysis of least-costly heat supply options for 3 selected sites (large, medium, and small towns, and (vi) review of consumption-based billing practices. Based on this analysis, options for investment in the establishment of biomass based boilers, including residential building based boilers in selected towns, have been analyzed. Currently, the TA component is being completed and preparations for a follow up project included in the pipeline for FY14 are underway. The additional financing of USD 90mln will support establishing biomass-based boilers, including residential building-based boilers. As the result of successful implementation of the Energy Efficiency project a tentative list of participating towns has been compiled. The project is supposed to be launched by the end of FY14. It is based on the rationale that biomass fuel is a renewable energy supply and offers a possibility for lower tariff compared to the gas energy option. 36 The replacement of the central boilers serving the cluster of the buildings with individual heating substations in the basements of the residential buildings will eliminate heat loss during in transmission from the centralized boilers to the residential buildings. Energy saving measures taken by consumers are needed to supplement the efforts to minimize heat losses. 4. Social Accountability Mechanisms and Challenges (a) Information provision Information provision about DH services is limited. Similarly to other municipal services, the information on DH is not provided in a structured and systematic manner. As a result, DH consumers do not understand how the system works and therefore would be interested in more information on departments’ responsibilities and competencies. Based on the survey by SATIO, people are not satisfied with the level of information and transparency in the DH services sector and refer to a lack of communication between them and DH service providers. In focus group discussion they cited an example of their discontent when biomass-based fuel was used for their residential building heating and they were not officially informed. The Government of Belarus undertakes information provision measures to raise awareness on DH sector challenges. Given the need to increase residential DH tariffs to eliminate cross- subsidization and reach cost-recovery level, the EED has been making increasing efforts to raise citizens’ awareness about energy security issues (in relation to high dependence to Russian gas) and the need for sustainable use of energy. The main messages are related to the (i) inevitability of tariff increase given new prices for imported gas, (ii) elimination of cross subsidization, (iii) potential of energy efficiency measures, and (iv) strategic intentions to increase the use of local fuel as energy source. The EED is responsible for organizing regular public awareness campaigns such as ‘Energy Efficiency Months’ and ‘Energy Efficiency Marathons” to bring to people’s attention the benefits that energy saving measures can bring. The ‘Energy Efficiency Marathons’ used to focus on educational activities for schoolchildren through contests and art events. Government officials also plan media appearances to address this issue. A beneficiary feedback survey was conducted by SATIO Company. In parallel with the feasibility studies under the TA, a Biomass based district heating in Belarus and Social Impact survey was conducted in three selected towns (Starye Dorogi, Kalinkovichi and Smorgon) in 2013. One of the aims of this survey was to assess beneficiaries’ perceptions and awareness on RE and EE measures, such as EE window installation, entrance door lockers installation, exterior building walls protection. It also assessed consumer readiness to make EE investments to improve energy efficiency of their residential buildings and their perceptions of the local fuel use for DH. The survey revealed the need for the provision of information about the future Bank-financed project. In order to increase understanding of the project and gain beneficiaries’ support, information is neede d to be provided around two topics: (i) information related to the project, and (ii) information to address concerns about the sustainability and impact of the project. First, respondents expressed interest for information about the project’s objectives, effectiveness, justification for project site selection, and monitoring processes. They wanted to be informed whether the quality control for installation of new heating facilities is ensured. Second, people expressed concerns related to environmental protection, such as potential excessive pressure on forest resources and potential 37 hazardous emissions from the newly installed residential building’s boilers. They also expressed doubts about the availability of enough biomass fuel for heating purposes in the long run. Public awareness on RE and EE potential to benefit DH services is still limited. Despite the awareness raising efforts, there is no full understanding on behalf of consumers about the RE and EE benefits in relation to heating services. The survey conducted by SATIO revealed that 73 percent of respondents could not understand the local RE’s role for district heating, while 35 percent did not acknowledge the role of EE measures to reduce heat consumption. Only about 12 percent knew about the EE and RE programs in Belarus. It seems that there is more awareness about energy efficiency in relation to electricity rather than district heating. Most respondents are ready to make investments in EE measures for DH based on local fuel to help reduce charges when the prices are increased. When asked about the support they would need to be able to invest in EE, respondents referred to the (i) need to have specific information and evidence that EE can be beneficial for heat savings and (ii) access to interest free loans to have financial resources for investment. Credibility with regard to multi-service utilities is an issue when it comes to consumers’ commitment to make EE investments. Consumers would prefer to be charged for EE investments through their utility bills. Citizen motivation to invest in DH is directly linked to the transparency of multi-service utilities. According to SATIO survey, people believe that undertaking energy efficiency measures in their residential buildings is the primary responsibility of multi-service utilities. However, they would be willing to make personal investments in DH energy efficiency measures if multi-service utilities are more transparent and responsive in their work. Consumers request information concerning procedures related to EE and heat savings, funds accumulated, and materials used for EE works. This is an interesting finding in terms of prospects for future relationship between DH consumers and multi-service utilities. It reinforces the assumption that more transparency and openness has potential to build trust between consumers and service providers. This finding is also relevant to the efforts of the Government of Belarus to reduce energy consumption. Increased transparency in DH services could establish the ground for cooperation and mutual benefits which will translate into more affordable high quality heating services for consumers and successful fee collection for multi-service utilities. (b) Grievance redress mechanisms Consumer satisfaction with grievance redress mechanisms (GRMs) presents a challenge. Consumers perceive that GRMs are the only tools to influence the work and performance of DH services. Those who had positive experience with multi-service utilities express appreciation of their work and efforts. At the same time, there is an increasing number of consumers that express dissatisfaction with the way the complaints are handled and actions are taken to resolve them. They refer in particular to excessive delays in addressing grievances and would like DH service providers to be more responsive to their needs. At the same time, residents from small towns are sometimes reluctant to complain at the local level because they believe this could have an impact on their future relationship with the DH service providers. There is no public information about the DH grievance redress mechanisms’ effectiveness. The information about the content of citizen’s complaints and official responses to ensure their redress is not made publicly available. Such lack of public information on “issues of concern” in 38 DH excludes heating consumers from the decision making process on future priorities and gives full discretion about DH services to service providers. Consumers perceive government as responsible for public utilities performance. Similarly to other municipal services, complaints on DH can be lodged through multiple uptake channels, if the consumers are not satisfied with its resolution. As previously mentioned, in practice consumers often simultaneously submit their complaints at multiple levels or send them directly to higher authorities. Representatives of municipal government indicated that in some cases the share of complaints or requests related to multi-service utilities submitted at the municipal level is as high as 70 per cent. This pattern is indicative of people’s perceptions that resolution of their requests has more chances to be properly addressed by actors that have more influence. It also indicates to the fact that national and municipal authorities have a high stake in the process and have significant interest to improve DH service delivery and increase performance of heating services. (c) Participation Public participation in the DH system presents a major challenge. The only mechanism for participation in the HU system is provided by the “Property Owners Associations,” which is an alternative to multi-service utilities. However, as previously discussed, this mechanism has only a marginal impact. There are no other mechanisms that would allow consumers to take part in the process of DH decision making. 5. Recommendations for HU authorities The recommendations for integrating SA mechanisms in the District Heating Sector and Biomass- based District Heating project focus on improving information provision, strengthening grievance redress mechanisms, and enhancing feedback mechanisms. These recommendations are directed to the following stakeholders: EED, MHU, city or oblast-level DHU, multi-service utilities, and PIU. They are listed by the order of their priority and importance, from high to low. Each recommendation is accompanied by a brief feasibility assessment. Full stakeholder analysis and a list of recommendations for each of the stakeholders are available in Annex IV. (a) Improving information provision about DH services The structure of bills for DH services could be more transparent. Details about the composition of DH bills are the most important information consumers need. The findings of SATIO’s survey reveal that consumers perceive heating services as expensive. This makes them more willing to know, monitor and analyze their consumption patterns. Lack of understanding on how the DH bills are structured gives consumers the feeling of lack of control which might generate distrust towards service providers. Increased DH prices could make consumers even more concerned about their charges and their ability to pay for the services. Detailed and disaggregated information about tariffs and bills’ composition could alleviate the information asymmetry between consumers and service providers and, thus, open the door for constructive communication. This information could be distributed through the most preferred channels of communication indicated by SATIO respondents, which are utility bills, mass-media, and the internet. 39 Information provision on energy efficiency and benefits for DH could be increased. More awareness raising activities could be needed to convey the message that heat savings could save consumers money. As part of this, a campaign on energy efficiency for heating services that would target DH consumers could be launched. The campaign could focus on educating them about EE benefits, types of applicable measures, cooperation models for collective investments, and specific examples. The campaign could apply interactive approaches, such as contests for best ideas on heat savings, exhibitions, and organized tours to ‘show case’ specific energy efficient sites. A short documentary could be broadcasted at the national level to demonstrate the value of EE for heating services. Such a documentary could be produced by “EcoMir”, a Belarusian CSO that has experience in both creating social marketing documentaries and in conducting campaigns on EE in Belarus, such as “Energy Marathon”. The campaign could benefit from the legal provisions that allow social marketing promotional materials to be broadcast through national TV stations free of charge. Key messages about EE could also be printed on utility bills; placed in front of entrance doors; or sent through SMS-based cost effective tools, such Frontline SMS. A Citizen Charter could be developed to increase understanding of DH services. Lack of understanding of the public utilities system is a major concern for consumers. The so called Citizen Charters are guidebooks on municipal services and may be referred to as agreements between service providers and consumers. Such a document would spell out all municipal services, expectations, responsible agencies, consumer rights and obligations, feedback options, complaint handling mechanisms, organizational addresses and responsible person’s contact information. Citizen Charters can be a first step in increasing trust between service providers and consumers. It could be placed on multi-service utilities or municipal/oblast website or distributed to the consumers. Box 8. Citizen Charter in Naga City, Philippines Citizen Charter of Naga City is a public agreement between citizens and service delivery providers that clearly codify expectations and standards in service delivery. It is a guidebook document which tells everything about what the city can do for its citizens. It includes (i)description of all public services ( over 140) offered by the city with a step-by step procedure for availing each service, (ii) the response time for its delivery and expected performance standards, (iii) the complaint/suggestion mechanisms,(iv) the city hall officers and staff responsible for each service and for handling feedback, (v) a list of requirements the customer must comply to facilitate service delivery, and (vi) maps sketching the locations of the agencies facilities. A key chapter of the Citizen Charter contains information on the complaint handling mechanisms: (i) it explains that citizens can convey their complaints, feedback, requests for services on all aspects of city government operations via e-mail or SMS, (ii) it highlights personal commitment of City Mayor through a mechanism which allows him to receive every single complaint (the system forwards the complaints/suggestion directly to mayor’s email address), and (iii) it explains the follow up actions with a reply within 24 hours.10 Feasibility assessment: Responsible stakeholders: EED, Municipal/Oblast DHU, multi-service utilities. Priority: High. Detailed and clear information about the structure of DH services and tariffs has been identified as highly important to citizens. It is particularly needed given the upcoming tariffs 10 http://naga.gov.ph/experience-naga/services/conveying-complaints-via-emails. 40 increase. Providing this type of information on utilities bills, as part of information campaigns, and on citizen charters is therefore of a high priority in the DH sector. Difficulty: Easy. HU authorities already possess large portions of this information and the EED has experience in leading information campaigns. Sustainability: Medium. Continuous commitment will be required to ensure that information is provided to citizens in a timely and reliable manner, employing user-friendly channels of information and communication. (b) Assessing citizen satisfaction A survey on customer satisfaction with DH services could create incentives to improve service delivery. Surveys that ask consumers about their satisfaction with multi-service utilities performance and suggestions related to service delivery improvements could help to identify systemic issues and possibilities for improvements. Consumers could be informed in advance on performance indicators, service standards, and analysis of complaint handling mechanisms in their town of residence. The survey could be organized in towns where the project is implemented to allow comparison among multi-service utilities that are included in the project. The survey will touch upon questions on project effectiveness and its impact on district heating services in the town. Various tools can be used to conduct the survey, for example cross selling method that takes the opportunity of consumers’ interaction with service providers (including when they pay their bills or file a complaint) to ask targeted questions. Another option is the SMS based consumer feedback that could be enabled by Frontline SMS or Rapid SMS platforms. These cost-effective platforms allow targeting specific consumers by geographic location, social status, or age. Sample random surveys could also be applied to allow a more systemic approach. The consumer feedback could be part of multi-service utilities’ evaluation. Examples of questions that can be included in the satisfaction survey are available in Annex VII. A webpage on projects’ website could publish the results of consumer surveys, GRM monitoring and GRM analysis for each town. Publishing such information in one place could create incentives for improvement for multi-service utilities, prioritize resource allocation, and contribute to strategic decision making. In order to enhance the impact of such information, the information could be placed on a map or visualized with charts and graphs. If applied across the region or country such information could be used for comparison among multi-service utilities and tracking their progress. A ranking of multi-service utilities based on selected indicators could enhance the understanding of data. This information could also be published on municipal/oblast or multi-service utilities websites. Opportunities for website users to comment on this information or ask questions could be provided. Feasibility assessment: Responsible stakeholder: MHU, Municipal/Oblast DHU, multi-service utilities. Priority: High. Satisfaction surveys can prove as an inexpensive and effective means to assess the performance of service providers, as well as identify strengths and weaknesses. Difficulty: Easy. Satisfaction surveys are inexpensive and can rely on existing good practices (see the example satisfaction surveys in Punjab, Pakistan in Box 2 above). It should also be relatively easy to place this type of information on a website. 41 Sustainability: Medium. The commitment of HU authorities will be necessary in order to sustain the practice of satisfaction surveys and publish it on a website in a timely manner. (c) Developing and publicizing performance indicators Information on multi-service utilities performance against specific indicators could be made public. Assessment of DH service performance based on pre-determined indicators could help identify systemic issues and address them accordingly in the decision making process. Publication of this information creates pressure on multi-service utilities to perform because it creates a ‘spotlight effect’ known to be an incentive to improve. The information could be presented by multi-service utilities on standard formats to facilitate the process of reporting and understanding of information. Compliance with these reporting requirements could be ensured. Visualization techniques could be used to present the information in a user friendly manner. Charts, comparisons between multi-service utilities, and their rankings could make the information easier to understand. This could be a useful source for journalists that could transform the information into ‘meaningful stories’ for their audiences. Box 9. Performance data and ranking of public utilities companies in Moscow, Russia Transparency and quality of service in the management of apartment buildings is identified as one of the most pressing issue in the public utilities service delivery in Russia. To alleviate this problem, the Moscow City administration established in 2011 a portal entitled dom.mos.ru where it places all information about management of apartment buildings. It provides very detailed information about specific public works for each residential building or neighborhoods, such as roof reparation, road maintenance accompanied by details about the management company in charge, deadlines, budgets, and quality standards. The city administration works closely with all public management companies to provide on the portal detailed data on each building, publish a list of companies that refused to provide information, and conduct ratings of companies’ efficiency in solving grievances. The platform gained succes s because it created a “spotlight effect” for bad performers and responsiveness on the part of public utilities management companies has increased. Feasibility assessment: Responsible stakeholder: MHU, Municipal/Oblast DHU, multi-service utilities. Priority: Medium. While indicators are important, they do not seem to be of a very high and immediate priority for Belarusian authorities. Difficulty: Hard. As there is currently a lack of extensive performance indicators in the DH sector, the development of such indicators may take time and efforts. Sustainability: Medium. Performance indicators will have to be measured and updated from time to time, thus requiring the periodic involvement of MHU. 6. Recommendations for the PIU The following recommendations are project-specific and directed to the PIU. They are listed by the order of their priority and importance, from high to low. 42 (a) Disseminating information about the project A project’s website could be launched to increase understanding and enhance feedback. Information provision about the project is essential in order to keep beneficiaries in the loop, to garner support and understanding, and manage risks. The survey conducted by SATIO revealed that beneficiaries are interested in information that could be included in two categories: (i) information related to the project, and (ii) information designed to address beneficiary concerns about the sustainability of the biomass-based district heating and environmental impact (Please see the specific information that respondents demanded in the Project Overview section). The site could have a feedback feature with possibility to ask questions or comment on the information. Feedback to questions or answers could be given to engage the website users. Information could be disseminated through the most preferred channels of communication for DH utilities. These channels are utility bills, mass media, and internet. Information placed on bills could include: links to project’s website, information on implementation progress in specific towns, and the project’s GRM number. Information about the project could be disseminated through broadcast media in the news content or in longer media reports on project‘s progress. In addition to placing information on its website, the project could consider placing relevant info on www.greenetwork.info web portal, the platform run by “Green Network’s, a CSO Association in Belarus. The platform has sections on public utilities and EE where project related information could be placed, or project’s link attached. The website contains user feedback option, including issue based polls, where people could comment, suggest improvements to the project, or participate in online polls. Feasibility assessment: Priority: High. The provision of such information is an important step in raising citizen awareness about the plans and priorities of the DH sector. Difficulty: Easy. A variety of inexpensive means is available to the PIU to publicize information about the DH project. Sustainability: Medium. The ability of the PIU to provide information and sustain communication channels is naturally limited by the project cycle. (b) Launching a grievance redress mechanism A GRM managed by PIU could contribute to GRM effectiveness at the sector level. Establishing a GRM to manage complaints and requests related to project implementation in selected towns would “show case “an effective approach to complaint handling mechanisms for the DH sector. The complaints will be submitted via phone, in writing or electronically and will be assigned a number for tracking purposes. Responses will be provided within 15 days (or 30 days if there is a need for further investigation). The acknowledgement of receipt will inform about the GRM process, provide contact details and indicate how long it will take to resolve the issue. The tool could be popularized to DH consumers in respective towns. The project management and staff should acknowledge the value of the GRM as a tool that improves the process of project implementation, serves as an early warning system, and provides incentives for better performance. An essential GRM component would be the complaints’ analysis for each town. The analysis could be made based on pre-determined indicators on a monthly/bi-monthly basis. A yearly report could 43 analyze the main trends and progress achieved in different tows over a specific period of time. The results of the reports could be made publicly available and discussed in the media. It can be helpful to conduct a survey to monitor the GRM’s effectiveness. The survey could be conducted by an independent body on a yearly basis. The GRM evaluation could be based on the criteria of (i) organizational commitment; (ii) principles (such as predictability, fairness, transparency, capability); (iii) processes (such as acknowledgment and follow up, verification, investigation, and action), (iv) staff availability; and (v) analysis of outcome. The survey can be conducted through ICT based tools, such as mobile SMS. The text message signed by the local mayor could be an interesting incentive to respond to the appeal. An example for an ICT based feedback mechanism is the Satisfaction survey on service delivery in Pakistan which asks citizens their feedback through an automatic SMS message and a phone call requesting feedback. Please see Box 2 for more details. Feasibility assessment: Priority: Medium. Citizens who have complaints against the project typically approach HU authorities, and there is no immediate need for a separate channel operated by the PIU. Difficulty: Medium. The PIU would have to invest some time and resources in launching and maintaining a GRM channel and monitoring its effectiveness. Sustainability: Medium. The PIU will only be able to sustain the GRM during the duration of the project. Table 3. Summary of recommendations in the District Heating Sector Recommendation Responsible stakeholder Priority Difficulty Sustainability Recommendations for HU and municipal authorities Improving information provision EED, Municipal/Oblast High Easy Medium about DH services DHU, multi-service utilities Assessing citizen satisfaction MHU, Municipal/Oblast High Easy Medium DHU, multi-service utilities Developing and publicizing MHU, Municipal/Oblast Medium Hard Medium performance indicators DHU, multi-service utilities Recommendations for the PIU PIU High Easy Medium Disseminating information about the project Launching a grievance redress PIU Medium Medium Medium mechanism 44 This report aimed to identify existing SA mechanisms and potential entry points for SA interventions in the Water, Waste Management, and District Heating sectors in Belarus, focusing in particular on the Bank-funded Water Supply and Sanitation, Integrated Solid Waste Management, and Biomass-based District Heating projects. The report identified that while grievance redress mechanisms are in place in Belarus, transparency is the most considerable challenge in the HU sector. Information provision on HU services is not fully attuned to citizen demands and there is a lack of transparency regarding the content of citizen requests and the quality of governmental responses to these requests. Information provided by the government on HU issues often takes a discretionary form and varies among oblasts, rayons, and cities. Citizens indicate that important types of HU information are not provided by the government. Further, governmental grievance redress processes can be likened to a “black box.” While all governmental entities are obliged by law to respond to citizen complaints, neither governmental responses nor complaints are made public, and there are no transparent quality control mechanisms As HU tariffs are currently low, citizens may have low expectations from HU service providers. However, as tariffs increase, it will be important to improve the quality of service delivery and enhance the responsiveness of HU service providers. This report suggested several strategies on how this can be done. In the context of Water, Waste management, and District Heating, the report outlined the following recommendations to HU authorities: (i) provide HU information that is important and needed to citizens (e.g., details about the structure of utility bills) using accessible channels of communication (e.g., utility bills, mass media, online platforms); (ii) develop indicators to assess the performance of HU service providers; (iii) periodically distribute consumer satisfaction surveys; make the content of citizen requests and governmental responses public; and (iv) create opportunities for citizen engagement (in particular in the waste management sector). The following recommendations can be applicable to PIUs: (i) proactively inform citizens about the project; and (ii) launch an interactive channel for citizen requests and complaints about the project. In sum, there is currently a worrisome equilibrium in HU services in Belarus. As tariffs are low, citizens’ expectations from HU services are also low. This, in turn, leads to a low quality of services in the HU sector in Belarus. This equilibrium is not sustainable, as tariff prices are increasing and, in respond, citizen expectations will rise and demand for improved services will increase. Hence, it is important to introduce appropriate reforms and changes on the sector and project levels. 45 Administratively, Belarus is organized on a three-tier government model. The administrative organization of the Republic of Belarus comprises the nation’s capital, Minsk, which has a special status, and six oblasts (regions): Brest, Gomel, Mogilev, Vitebsk, Grodno, Minsk and the city of Minsk. An Oblast is subdivided into Districts or Rayons (a total of 118) as shown in Figure 4. Rayons administrative centers are, according to their population, Oblast capitals (6, including Minsk City), Cities (12, subordinated to the Oblast) or Towns (99, subordinated to the Rayons). Figure 4. Belarus Republic administrative organization At regional and local levels, governmental bodies are composed of a council of deputies and an executive committee. Local councils of deputies are elected in each oblast, city, and rayon, as well as in smaller units (villages). These councils form the local legislative authority. Deputies are elected for a 4-year term to deal with local issues, such as health, education, social welfare, trade, and transportation. The executive committee implements the decisions made by the council of deputies. In oblasts, the executive committee (oblispolkom) is headed by a governor appointed by the president; the appointment of heads of executive committees of cities (gorispolkom) and districts (rayispolkom) is endorsed by the president. Each executive committee consists of departments that coordinate the implementation of policies in their respective domains. The World Bank’s engagement in Belarus is currently focused on the implement ation of five investment projects: Post Chernobyl Recovery Project ($80 mln., closing date Dec. 31, 2013);Road Upgrading and Modernization Project ($150 mln., closing date Nov. 30, 2014); Energy Efficiency Project ($125 mln., closing date Dec. 31, 2014); Water Supply and Sanitation Project ($60 mln., closing date Dec. 31, 2014); and Integrated Solid Waste Management Project ($42.5 mln., closing date Dec. 30, 2016). These projects help accelerate structural reforms, deliver benefits to the citizens at the local level, and support the country’s initiatives to improve energy efficiency, water supply and waste management, roads, and infrastructure in Chernobyl-affected areas. i Stakeholder Current Advantages SA Interests Limitations Potential role in the project role in the project MHU Responsible High influence - Interest in improving - Not involved - Direct HU authorities to publish for the on policy- service provision on the on the detailed information about water overall making municipal level; municipal level; services and the structure of implementati - SA can be a useful -potential lack tariffs and on of the management tool to of political will - Develop and publicize indicators SWM achieve service to promote SA to assess the quality of service program; efficiency and mechanisms provision by multi-service utilities Funding and incentivize lower HU - Release national-level statistics general authorities to improve about the content of citizen oversight their performance requests and governmental (which is particularly responses important in light of the - Strengthen the internal tariffs increase) monitoring of grievances; PIU Overall Close working As the PIU is responsible Lack of - Proactively inform citizens management relationship for all aspects of the awareness and about the construction of new of the with municipal project, it has direct experience with water objects project; authorities; interest in improved and SA tools - Launch an interactive channel Procurement close ties to the satisfactory service for communication with citizens ; general MHU; delivery (e.g., hotline or website) oversight familiarity with over the all aspects of the construction project; of water familiarity with objects municipal entry points DHU Primary Responsible for - Interested in improved Lack of - Provide more detailed owner of the the service delivery and capacity; information on water services and project and implementation timely collection of Competing structure of tariffs responsible of HU policies utilities fees; - interested priorities; - Commission satisfaction surveys for its and may in monitoring the reluctance to - Release information about the implementati promote reforms performance of multi- release content of citizen requests and on and and affect service utilities information governmental responses monitoring service delivery Multi- Direct Direct - Interested in improved Lack of - Publicize on billboards in the service service interaction with service delivery and capacity; utilities’ offices detailed utilities provider citizens timely collection of Competing information on water services and utilities fees priorities; structure of tariffs reluctance to release information Media Disseminates Effective - Interested in covering Lack of Closely collaborate with HU governmenta dissemination of important news stories, expertise and authorities to publish information l messages information but no direct interest in potentially lack about the water sector SA of incentives to cover SA issues ii Stakeholder Current role Advantages SA Interests Limitations Potential role in the project in the project MHU Responsible High influence Interest in improving service Not involved on the N/A for the overall on policy- provision on the municipal municipal level implementatio making level; n of the SWM SA can be a useful program; management tool to achieve Funding and service efficiency and general incentivize lower HU oversight authorities to improve their performance (which is particularly important in light of the tariffs increase) PIU Procurement, Close working As the PIU is responsible for Lack of awareness - Provision of information on the overseeing the relationship all aspects of the project, it and experience with construction of the MWSTF construction with municipal has direct interest in improved SA tools - Oversight of municipal of the facility authorities; and satisfactory service information campaign and close ties to the delivery grievance redress mechanisms MHU; familiarity with all aspects of the project; familiarity with municipal entry points Municipality Primary Owner of the As the Municipality is the Relatively limited - Supervise information provision of Grodno owner of the project and primary owner of the project, experience with SA activities project and responsible for it is very interested in its tools - Commission periodic surveys to responsible all its success. It is therefore highly Commitment to assess citizen satisfaction with for its implementation interested in the success of transparency and service provision implementatio aspects the information campaign and information provision - Supervise and monitor the n and in engaging citizens in may change, development of a targeted monitoring recycling activities depending on political information campaign climate - Supervise the development of success indicators for the information campaign - Direct the Dep’t of Ideology to invest resources in citizen participation campaign (to engage children and university students) Dep’t of Responsible Positive prior Interested in the success of - Lack of sufficient - Provide detailed information Ideological for experience the information campaign and resources and staff to about waste management services Work communicatio working with in engaging citizens in lead the in public locations; n with citizens citizens (and recycling activities implementation of the - Develop and launch a targeted and for the particularly campaign; information campaign on the information students) on - Competing importance of separate waste campaign environmental priorities; management; matters - Commitment to the - Develop and lead citizen campaign depends on engagement efforts to involve municipal will and children and university students priorities in the SWM program - Collaborate with the State University of Grodno and with other Dep’ts on the implementation of the iii Stakeholder Current role Advantages SA Interests Limitations Potential role in the project in the project information campaign and citizen engagement activities Dep’t of Responsible Vast experience Interested in ensuring smooth - Lack of sufficient - Provide detailed information Housing and for all aspects in handling service delivery, but no resources and staff to about waste management services Utilities related to citizen requests particular interests related to lead the in public locations and in multi- housing and and complaints the SWM program implementation of the service utilities; utilities in in the HU sector campaign; - Collaborate with the Ideology Grodno, - Competing Department on launching a receives priorities; targeted information campaign citizen - Commitment to the requests and campaign depends on complaints municipal will and priorities Department Responsible Prior experience Interested in promoting - Only minor role has - Collaborate with the Ideology for for all aspects in working on environmental causes in been assigned to the Department on the development Environment related to environmental Grodno Department in the and implementation of the al Protection environmental causes; project; targeted information campaign protection in Developed - Competing priorities Grodno public - Commitment to the awareness campaign depends on brochures on the municipal will and importance of priorities recycling Multi-service Direct service Direct service No particular interest in SWM No particular interest - Provide information on utilities providers points for or role in SWM billboards and on utilities bills citizens about separate waste management State Collaborates Experience with No particular interest in SWM Limited capacity; - Collaborate with the Ideology University of with the surveys and Role in the project Department on the development Grodno Ideology polls depends on priorities and implementation of the Department of the Ideology targeted information campaign Department; Collaboration with the Ideology Department has just begun Media Disseminates Effective - Interested in covering Lack of expertise and Closely collaborate with the governmental dissemination of important news stories, but no potentially lack of Ideology Department to publish messages information direct interest in SA incentives to cover information about the water SWM issues sector Ecological Collaborate Expertise in Highly interested to promote Role in the project -Collaborate with the Ideology CSOs with the environmental environmental causes would fully depend on Department on the development Ideology issues the priorities of the and implementation of the Department Ideology Department targeted information campaign on some - Collaborate with the Ideology projects Department on citizen engagement efforts (with children and university students) iv Stake- Current role Advantages Interests to enforce SA Limitations Potential role in the project holder in the project MHU Responsible -As main DH -High interest in SA as it has Commitment to SA - Release information on multi- for district policy maker, has primary responsibility to ensure depends on political service utilities’ performance heating service high power to high quality service provision will to increase based on pre-determined provision influence DH -SA can serve as a management openness, in particular indicators and standard reporting regulations and tool that creates incentives to when DH sector faces formats management at perform and achieve efficiency- challenges - Instruct publishing information the multi-service Interested to increase consumer about consumer complaints utilities level satisfaction as consumers perceive public utilities’ performance as government responsibility - Expressed interest to engage residents in management of their own property EED - Main World - EE is a priority - Main responsible agency for Not involved at the - Proactively informs citizens Bank’s direction for GoB EE and has direct interest in local level about the establishment of the counterpart in - Can influence consumers’ high level of biomass based boilers GoB decision making satisfaction concerning the - Organizes a public awareness - Main since the selected Biomass –based DH project. raising campaign on EE for DH responsibility towns are very - High interest in SA as consumers for project interested to consumers relate their - Uses its leverage to influence implementation establish biomass willingness to make EE municipal/oblast DHU and local - Final decision based boilers to investments if multi-service multi-service utilities to be more on sites improve DH utilities are more transparent transparent and establish trust selection - Interest in successful project with consumers in order to implementation prepare the ground for consumers’ willingness to make EE investments Oblast Responsible Closer interaction - Interest in successful - Not present at the - Could participate in Executive / for project with implementation and high local level organization of public awareness EED implementation municipal/oblast consumer satisfaction of the campaigns on EE at the oblast DHU and multi- new DH system based on local level service utilities fuel - Interest in SA as consumers expressed their willingness to make EE investments if multi- service utilities are more transparent Project Responsible - Good Has interest in citizen - More SA tools means - Launch a project’s website to Implementa for project experience in satisfaction, better information more work for the Unit publish information and receive tion Unit management implementing and feedback at the local level - Could be reluctant to feedback. (PIU) and WB projects to be able to receive early deal with potential - Commission /conduct supervision of - Close working warnings on project conflicts at the local consumer surveys project sites, in relationships with implementation, track progress, level given its role as - Manage a GRM to receive particular, MHU, address concerns proactively, GRM management complaints and requests from boilers municipal/oblast and assess project effectiveness unit beneficiaries in towns where the installation DHU and multi- project is implemented service utilities - Initiate GRM independent monitoring - Publish analysis of complaints submitted to PIU v Municipal / Responsibility Have influence to - Has a very high interest in - Develop and publish Citizen Oblast for DH service adopt regulations, residents’ satisfaction because Charters DHU provision set management consumers perceive - Provide more detailed priorities, and performance of multi-service information on DH services and enforce utilities as government’s structure of tariffs and bills compliance for responsibility, including at the - Commission satisfaction multi-service municipal level. surveys utilities -Most complaints received at - Release information about the the municipal level refer to content of citizen requests and local multi-service utilities governmental responses Multi- DH service Interacts directly - Primarily interested to - Changes in well- - Publish detailed information on service provider at the with consumers increase trust and improve established models of bills structure utilities local level relations with consumers to operation often face - Contribute to publishing a ensure DH fee collection , in resistance Citizen Charter particular when prices increase -Needs incentives to - Release performance data and cross subsidization is change, such as, removed punish/reward system, - Interest to develop a ”culture compliance of consumer orientation” to be mechanisms able to adjust to a more self- - More work and sustainable business model pressure for improvement with increased level of scrutiny Consumers Main - Right to demand - Most interest to have more - Low capacity and - Demand information from beneficiaries of good service responsive multi-service understanding of the multi-service utilities on the project provision utilities SA value budgets, spending, renovation - Consumer - SA would lead to better - Cultural barriers to works, bills structure protection is service delivery and more actively challenge - Use the GRM mechanisms to ensured by efficient administration of their authorities suggest/propose improvements legislation resources - More effort to and seek redress - Service engage with HU to providers are demand their rights dependent on their payments Environme Could Expertise on -There are no specific CSOs - Low level of impact Could participate in public ntal CSOs participate in environmental focusing on DH but there are given society’s limited awareness campaigns aimed at awareness issues, including relevant ecological CSOs understanding of promoting EE benefits for DH raising about RE and EE which have interest in SA as CSO’s role and RE and EE they are active in government cautious benefits environmental advocacy. attitude towards CSOs - Could challenge biomass-based DH project for its perceived potential impact on forestry resources Media -Disseminate -Have effective -Media are “watchdog” - Limited influence on - Disseminate information about information channels to institutions and have intrinsic SA the project about the disseminate interest for SA - Limited interest in - Report on GRM analysis in project information, and -Media are also interested in EE selected towns, consumer challenge HU SA because it can help generate surveys, and multi-service interesting stories utilities’ performance vi Activity Responsible entity Date Conducting surveys among Grodno citizens to determine their The dep’t for Ideology Work; Feb. 2013- level of knowledge about separate waste collection State University of Grodno Mar. 2014 Creating and managing a hotline for citizen consultations Housing and Utilities Dep’t 2013-2014 Interactive citizen survey Ideology Work Dep’t; 2013-2014 “One Window Service” Dep’t Press-conferences Ideology Work Dep’t; April 2013 Housing and Utilities Dep’t Provision of information via local TV & radio channels (e.g., Ideology Work Dep’t; 2013 Grodno Plus) and newspapers (e.g., Grodnenskaya Pravda) TV & Radio station Grodno Plus; Newspaper “Grodnenskaya Pravda” Recruiting groups of volunteers among employees in municipal Housing and Utilities Dep’t 2013 facilities and organizations Holding public meetings to provide information about separate Local Housing and Utilities offices 2013 waste collection Providing information about the project on bulletin boards in Housing and Utilities Dep’t; 2013 local work places and lobbies of communal buildings Local Housing and Utilities offices Producing information brochures and booklets Housing and Utilities Dep’t; 2013-2014 Local Housing and Utilities offices Provision of information on utility bills that citizens receive via Local Housing and Utilities offices 2013-2014 the mail Providing information about the project on public bulletin Architecture Dep’t; 2013-2014 boards across the city Housing and Utilities Dep’t Creation of an advertisement video-clip and playing it in public TV & radio station “Grodno Plus”; 2013-2014 buses and trams and on a large screen on the Sovetskaya square Ideology Work Dep’t; Providing information on schedules for closing chutes and TV & radio station “Grodno Plus”; 2013 creating areas for waste collection Housing and Utilities Dep’t; Ideology Work Dep’t; Economics Dep’t Requiring teachers to explain to students the importance of Education Dep’t; 2013 separate waste collection Municipal dep’t for environmental protection; Grodno State University Holding competitions on the best idea for separate waste Housing and Utilities Dep’t; 2014 collection Local Housing and Utilities offices; Municipal dep’t for environmental protection; vii viii 1. What type of service have you requested? 2. Who was the officer responsible for service provision? 3. Has your problem been resolved? If yes, how? If not, why not? 4. Please rank on a scale of 1-10 the degree of you satisfaction with the service provided to you. 5. Please rank on a scale of 1-10 the degree of you satisfaction with the officer responsible for service provision. 6. Please rank on a scale of 1-10 the degree of your satisfaction with the service provider in general. 7. What did you like about the way in which the service was provided to you? 8. What should be changed in the way the service was provided to you? ix