CASE STUDY - IRCCase Study: Final Version - April, 2002 BOXES 1. Small Towns Global Definition 2 2. Lao PDR at a glance 2 3. Management Model Development in Lao PDR 4

822 LA02

LAO PEOPLE'S DEMOCRATIC REPUBLICPeace Independence Democracy Unity Prosperity

SMALL TOWNS

WATER SUPPLY AND SANITATION INITIATIVE

IN LAO PDR

WATERSUPPLY

AUTHORITY

Department of HousingAnd Urban Planning

Urban ResearchInstitute

Water and Sanitation ProgramEast Asia and Pacific (WSP-EAP)

A comparative study ofsmall town water and sanitationservices in developing countries

CASE STUDYFinal

Version

Prepared byWASA, DHUP & URi

with support from WSP-EAP

A cknowledgments

Case Study: Final Version - Apei/r2002

wnationai 'vv"i r 'Sanitation Cem, t

!•=!!.: -s-31 70 30 6S&&>"<«•• - 3 W 0 35 8 W M

The Technical Team for the Small Town Study in Lao P.D.R. would like tosincerely thank all the Government staff and supporting partners who gavevaluable information and insights into this report, the first Lao-led Case Studyon Small Towns Water and Sanitation by staff from the Water Supply Authority,Department of Housing and Urban Planning, and the Urban Research Institute,with collaboration from Nam Saat Central.

In particular we would like to thank the Advisory Committee for its counsel andguidance, the Provincial DCTPCs, Nam Papa State Enterprises and Nam Saatsfor their openness, hospitality and willingness to try new methodologies such asBenchmarking and the Methodology for Participatory Assessments (MPA), andto the staff of the World Bank Water and Sanitation Program - East Asia andPacific for their help and support.

This Case Study has been prepared through a consultative process and forms part of aseries of reports for the Small Towns Water Supply and Sanitation Initiative in Lao PDR asfollows: -

No.

1

2

3

4

4

4.1

5

m i '•

Title

Preliminary Desk ResearchInventory

Sector Partner ConsultationMeeting

National Consultation Workshopon Water Supply and Sanitation

Case Study (this Report)

Case Study (this Report)

Case Study: Appendices

Situation Report

Date

October 2001

30 November 2001

13 December 2001

April 2002

(Due May 2002)

(Due May 2002)

(Due May 2002)

Language

Lao

: • ]

•

English

•

•

•

•

•

Reference No.*

APR-090

APR-091

APR-094

UWS-037

UWS-037L

UWS-037A

UWS-038

* The 'Reference Number' is for the Resource Center at the World Bank Water and Sanitation Program, LaoPDR Country Office, Vientiane. For copies of these reports, please contact any of the organizationsmentioned on the back cover of this report.

Small Towns Water Supply and Sanitation Initiative in Lao PDR

Case Study: Final Version - April, 2002

Table of Contents

Acknowledgments!Table of Contents iiAppendices ivList of Acronyms and Abbreviations v

Introduction 1NATIONAL CONTEXT: Small Towns in Lao PDR 2NATIONAL STRATEGY AND PRINCIPAL STAKEHOLDERS IN THE SECTOR 7

Institutional Setting 8- Main actors 9

Water and Sanitation Facilities in Small Towns : 12- Water Supply 12- Sanitation 13

CASE STUDY METHODOLOGIES 14Provinces and Small Towns Studied : • 14Small Towns sampled 15

TECHNICAL ASSESSMENT 15Geographic Coverage 15Technologies 16Environmental Issues 16Service Delivery 16Existence of Alternative Sources 16Water Production and Consumption 17Water quality, Reliability and Pressure 18Investment Costs 18

INSTITUTIONAL ARRANGEMENTS 20Design 20Construction 21Ownership • , . . 21Utility Organization 22Operational Efficiency 22Staffing : : 23Remuneration 23

FINANCIAL ASSESSMENT 23Tariff-setting 24Funding of Investments 25

- Expansion Investments 25- Renewal 26- Investment Funding Patterns 26

Financial Viability of Systems 26SOCIAL ASSESSMENT 27

Social Issues 27

RECOMMENDATIONS 28- Policy Framework 28- Institutional Strengthening 28- Instituting Learning . 29

WEB LINKS 30



BOXES1. Small Towns Global Definition 22. Lao PDR at a glance 23. Management Model Development in Lao PDR 44. Good Sustainability 65. Poverty-Focused Investments 76. Benchmarking 87. National Consultation Workshop 118. Different Perceptions 139. Cost-Benefit Analysis using MPA 1410. Investment Cost Calculation , 19

TABLES1. GOL Administrative Levels 82. Main Regulatory Framework 113. Institutional arrangements for Construction Phase in the 4 small towns visited , 204. Institutional arrangements for Operation Phase in the 4 towns 215. Actors at Provincial Level: Provincial Nam Papa -Water Administration Board 22

GRAPHS1. Population range of 143 Centers designated as Urban 32. Average Tariff (US$ / m3) 83. Total Population and Population Served 144. Coverage of the small towns (2001) 155. Total house connections by year • 166. Consumption / led (2000) 177. Unaccounted for Water (2000) 178. Investment cost related to Capacity 199. Investment cost related to Population 1910. Production compared to Design Capacity 2111. Staffing Levels 2212. Average connection cost (US$) • . 2413. Tariff level / m3 compared to Costs / m3 26

PICTURESMPA Village Meeting, Luang Phrabang . , 5MPA Village Meeting, Luang Namtha 6Nam Papa discussions, Sam Neua 8National Consultation Workshop: Presentation 11National Consultation Workshop: Discussion 11Water treatment plant, Luang Namtha 12MPA Village Meeting, Luang Namtha (in Box 9) 14Samakhixay Town, Attapeu : 15Nam Papa State Enterprise, Luang Namtha Office 16Slow sand filter, Sam Nuea 18Nam Papa discussions, Sam Neua 18MPA Village Meeting, Samakhixay 23Provincial DHUP discussions, Luang Namtha 25National Consultation Workshop on Water Supply and Sanitation 27Technical Team inner back cover

FIGURES1. Small Towns - Water Supply, Sanitation and Hygiene Promotion: Main Stakeholders 10

MAPS1. Map of the Lao People's Democratic Republic including the four towns covered by the study 12. Map of Lao PDR showing the 192 urban growth centers (NURBIDS research) 3

Small Towns Water Supply and Sanitation Initiative in Lao PDR iii


APPENDICES

Appendix 1 : Regulatory framework development in Lao PDR (update 2001) and terminology in Laoand English used for urban/small towns/rural.

Appendix 2 : Provinces / District Centers, and Main Financers of WSS Sector Projects (update 2001) /Investment Calculation.

Appendix 3 : Examples of management models for small towns and multi-village systems.Appendix 4 : Population Distributions.

Appendix 5 : Methodology for Participatory Assessments (MPA): Cost / Benefit Analysis.Appendix 6 : Benchmarking, Results from 4 Small Towns;

Water Quality testing in Luang Phrabang and Samakhixay.Appendix 7 : Examples of Environmental Sanitation Mapping, Luang Phrabang, UNESCO/ La Maison

du Patrimoine, 1999.Appendix 8 : Designs / Innovative Tariff Collection Process:

Examples from Luang Phrabang.Appendix 9 ; - Fund-flow mechanism for UWS: Grant financing.

Fund-flow mechanism for UWS: ADB financing.Fund-flow mechanism for UWS : IDA financing.Organization Charts Nam Papa : Samakhixay.

Nam Papa : Sam Nuea.Nam Papa : Luang Phrabang.Nam Papa : Luang Namtha.

Appendix 10 : Persons met during the Field Research.Appendix 11 : References.

The Appendices are attached in a separate document as 'Appendices of the Small TownWater Supply and Sanitation Case Study in Lao P.D.R.'

Small Towns Water Supply and Sanitation Initiative in Lao PDR iv


LIST OF ACRONYMS AND ABBREVIATIONS> greater thanADB Asian Development BankASEAN Association of South East Asian NationsAv. AverageBCEL Lao Bank for External TradeBP Best PracticeCBO Community Based OrganizationDANIDA Danish International Development AgencyDBL Design, Build, LeaseDCTPC Department of Communication, Transport, Post and ConstructionDHDP Department of Hygiene and Disease PreventionDHUP Department of Housing and Urban PlanningDOF Department of FinanceDOP Department of PlanningDOT Department of TradedPH District Public HealthdNam Saat District Nam SaatdNP(SE) District Nam Papa (State Enterprise)ESA External Support AgencyEU European UnionFY Fiscal YearGCs G rowth CentersGDP Gross Domestic ProductGFS Gravity-flow water schemeGl Galvanized Iron pipeGNI Gross National IncomeGOL Government of LaoHDI Human Development Index (UNDP)IDA International Development Assistance of the VVorld BankIDA Cr. Credit (International Development Assistance of the World Bank)JICA Japanese International Cooperation AgencyKip Currency of the Lao PDRLA Lao PDR (term applied to World Bank credit)LAK Lao Kip (Currency of the Lao PDR)led or l/c/d Liters per capita per dayLNT Luang Namtha •LPB Luang PhrabangLWU Lao Women's UnionLYU Lao Youth Union ,!:,::.,,MAF Ministry of Agriculture and ForestryMCTPC Ministry of Communication, Transport, Post and ConstructionMIH Ministry of Industry and HandicraftsMoE Ministry of EducationMoF Ministry of FinanceMoH or MoPH Ministry of Health or Ministry of Public HealthMoU Memorandum of UnderstandingMPA Methodology for Participatory AssessmentNam Papa State enterprise for urban water supply and waste-water, also refers to a piped water system

with household connectionsNam Saat National Center for Environmental Health and Water SupplyNEW National Center for Environmental Health and Water Supply ... :NGO Non-government OrganizationNo. NumberNORAD Norwegian Agency for Development CooperationNPSE Nam Papa State EnterpriseNPV(SE) Nam Papa Vientiane (State Enterprise) ; . • . . . ,NPL Nam Papa Lao ;NTU Nephelometric Turbidity UnitsNURBIDS National Urban Rural Basic Infrastructure Development StrategyO+M Operation and MaintenancePAdmin Provincial Administration , . . •pDCTPC Provincial Department of Communication, Transport, Post and ConstructionPDR People's Democratic RepublicpDoPH Provincial Department of Public HealthPICC Project Implementation Coordination Committee



PMPMOPMUpNam SaatPNP(SE)PPPRRDCRRPRWSSRWSTG[SF]SIPSKXSMNSPCSTEASTTAUDAAUfWUNUNDPUNDPHDIUNESCOUNFPAUNICEFURIUSD or US$UVUWSVUDAAVUISPWASAWATSANWBWHOWRCCWSWSPWSP-EAPWSP-EAP LCOWSSorWS&SWTPYr

Prime MinisterPrime Minister's OfficeProject Monitoring UnitProvincial Nam SaatProvincial Nam Papa (State Enterprise) or pNP(SE)pagePresidentRural Development CommitteeReport and Recommendation of the President (ADB)Rural Water Supply and SanitationRural Water and Sanitation Thematic GroupSpecial Fund (term applied to ADB Loans)Sector Investment PlanSamakhixaySam NeuaState Planning CommitteeScience, Technology and Environment AgencySmall TownsTechnical AssistanceUrban Development and Administration AuthorityUnaccounted for WaterUnited NationsUnited Nations Development ProgrammeUnited Nations Development Programme - Human Development IndexUnited Nations Environment and Science OrganisationUnited Nations Population FundUnited Nations Children's FundUrban Research InstituteUnited States DollarUltra-violetUrban Water SupplyVientiane Urban Development Administration AuthorityVientiane Urban Infrastructure and Services Project (ADB Loan, TA No. 3333-LAO)Water Supply AuthorityWater and Sanitation CommitteeWorld BankWorld Health OrganisationWater Resource Coordination CommitteeWater SupplyWorld Bank Water and Sanitation Program - South AsiaWorld Bank Water and Sanitation Program - East Asia and PacificWorld Bank Water and Sanitation Program - East Asia and Pacific, Lao Country OfficeWater Supply and SanitationWater Treatment PlantYear ' : :

Small Towns Water Supply and Sanitation Initiative in Lao PDR VI


y\ comparative study of small town watm and sanitation serviceslillpianqiem^

Introduction1

In 1999, the World Bank Rural Water Supply andSanitation Thematic Group (RWSTG) and the Waterand Sanitation Program (WSP) undertook a jointglobal initiative to document management models forwater supply and sanitation services in small towns.The main objective of the global initiative is toimprove knowledge of 'small towns' - until recentlygovernments and development agencies had focusedexclusively on rural and urban areas only.

At the core of the global initiative are four casestudies from Vietnam, Mauritania and Columbia andBenin. Additional studies are being carried out inother countries to capture learning internationally.These case studies highlight the key issues andopportunities for improvement of water and sanitationservices.

As part of this global study, the Water SupplyAuthority (WASA) of the Lao People's DemocraticRepublic proposed World Bank Water and SanitationProgram - East Asia and Pacific (WB WSP-EAP) toassist the government in investigating the status ofsmall town water and sanitation services in Lao PDR.The study aims to serve as a strong basis for futurewater supply, sanitation and hygiene activities2 insmall towns. This was the first time for Lao authoritiesin charge of urban/small towns WSS provision toundertake their own research, which included buildingon existing Government methodologies by usinginnovative research techniques such as theMethodology for Participatory Assessments, theGlobal Small Towns Study Methodology, andBenchmarking

The Small Town Water Supply and Sanitation (WSS)Study in Lao PDR began in April 2001 with a TechnicalTeam of government staff gathering preliminary deskresearch with support from WSP-EAP. The agreedTerms of Reference for the study were signed in earlyAugust 2001 followed by field research in four smalltowns in August and September 2001. The followingmeetings involving sector partners wereaccomplished: -

Preliminary Consultation Meeting: 10 Oct. 2001Sector Partner Consultation Meeting: 30 Nov. 2001leading up to the first National ConsultationWorkshop on Water Supply and Sanitation: 13 Dec. 2001

This report presents the main findings and lessonslearned from the Lao PDR Case Study3.

H I Northern Region

| | , Central Region

mm Southern Region

Samakhlxay —^—jjj^'

Map of the Lao People's Democratic Republic

including the four towns covered by the study.This map has been prepared by the Technical Team of the SmallTown Study exclusively for the convenience of readers. Theboundaries, colors, denominations and any other information shownon this map do not imply any judgment on the legal status of anyterritory or any endorsement or acceptance of such boundaries.

This case study has been carried out entirely bygovernment researchers from the Ministry ofCommunications, Transport, Post and Construction(MCTPC), and more specifically by the followingagencies: -

Water Supply Authority (WASA)Department of Housing and Urban Planning (DHUP)Urban Research Institute (URI)

Technical assistance has been provided by the WorldBank Water and Sanitation Program - East Asia andPacific.

This report is available in Lao language version.

1: Refer : 2001 : Vietnam Case Study Preliminary Findings, Columbia Case Study Preliminary findings - Draft Paper,Mauritania Case Study First findings.

2: Refer: Terms of Reference, Attachment 4, Minutes of Meeting, 30 January 2001, No. 167/WASA.3: Some data here supersede that collated in the Preliminary Desk Research Inventory (October 2001).



NATIONAL CONTEXTSmall Towns in Lao PDR

The population of Lao PDR livespredominantly in the rural areas of the country,with only 23% of people living in urban centers.Urbanization is beginning to increase steadily.

The current annual population growth is 2.8%,the highest in ASEAN countries, which meansthat the population of Lao PDR will double bythe year 20254. This rapid increase is alreadyaffecting the environment through theincreased use of natural resources. In remoterareas, water supply infrastructure hardlyexists, while there is a lack of access toadequate sanitation facilities. Lack of safewater supply, poor sanitation and inadequatehygiene are still leading factors for the highmortality in children under 5 years old in LaoPDR5.

Box 1'Small Towns' Global Definitions

'Small towns are sufficiently large and dense to benefitfrom the economies of scale of piped systems, but toosmall and dispersed to be efficiently managed by aconventional urban water utility. They require formalmanagement arrangements, a legal basis for ownershipand management, and the ability to expand to meet thegrowing demand for water. Small towns usually havepopulations between 5,000 - 50,000 inhabitants, butcan be larger or smaller.' (Refer to 'Country Case Studies

Methodology', WSP, page 3, May 2000).

The main points are rapid growth, a variety of [WS]systems and the need to take a long and flexible(approach to planning [small towns'] needs. Whatconstitutes a small town is highly context dependent,perhaps the simplest way to think of them are. as ruralareas that are in the process of becoming urban, andthat need support in making the transition!' (liefer to'Between Rural and Urban, IHC Working Paper,' January 2002).

There are 143 settlements that are currentlyclassified as urban centers. The five largestsettlements (which include the capital city andthe four secondary towns) are situated alongthe Mekong River. These five settlements

Refer: Mr. Noulinh Sinhbandith, President of theScience Technology and Environment Agency - articlein the Vientiane Times, November 9-12, 2001 andUNFPA State of the World Population Report 2001.

5 Refer: Lao Health Master Planning Study, Ministry ofHealth and JICA, Progress Report 1, September 2001,pp10-1.

6 Settlement is a word that is difficult to translate into Laobut in Ihis case refers to the 141 districts centers, 1special region of province and 1 small town (Km 52).

7 Capital City - Vientiane Prefecture (9 districts);

account for some 45% of the total urbanpopulation8. When taken together with the 13other provincial centers, the main urban citiesand towns encompass 58% of the urbanpopulation. The remaining 42% of the urbanpopulation (or 9% of the total population) livesin 117 small district centers or towns, rangingin size from 19,000 people (Seno,Savannakhet Province) to just 300 people(Samuoi, Saravane Province). More than 90 ofthese small district centers are without a pipedwater system with house connections.

Box 2

Lao PDR at a glanceTotal Population 5.2 million

U rban/RuralPopulation GrowthLife expectancy at birthInfant mortality rateLiteracy2000 GNI per capita

Percent of population*3 withAccess to Improved Water:

Urban / Rural

20/80 %2.8%55.5 years82/1,000 live births60.2%US$ 290

55 % :49/60%

Access to Adequate Sanitation:: 53 %Urban/Rural

UNDP HDI Rank (2001)Exchange Rateb

70/36%

131/162US$1 =LAK 9,540

East Asia and PacificTotal Population

Urban/RuralPopulation GrowthLife expectancy at birthInfant mortality rate .'Female youth illiteracy2000 GNI per capita

1.9 billion• 4 7 / 5 3 : % : ••:

0 . 9 % •.:/.

69 years35/1,000 live births4%US$ 1,060

Percent of Population*0 withAccess to Improved: Water: 73%

Urban/Rural 85/61% ;Access to Adequate Sanitation: 61 % • : •:

Urban/Rural ] 76/46% "

Refer: - Preliminary desk Research: Inventory Page 6, October2001, Prepared by DHUP, WASA and URI.

- World Bank Annual Report 2001, Volume: 1,pp71 , 140. : •

- LJNDP: Human Development Report, 2001.GNI means Gross National Income

'' Refer Preliminary Desk Research Report, October 2001tj Exchange rate: BCEL January 21, 2002:;:" Source: UNICEF Statistics (2000). •.?,* These figures are for general comparison purposes, as data

from spme countries did not have records or records wereincomplete. ;;,•;

'IIIIBHIBIIilK1

Secondary Towns - Luang Phrabang, Khanthabouly,Thakek, and Pakse.

Refer: Appendix 4: Urban Populations as defined bythe municipal areas (from data collected by the WaterSupply Authority in 1999).



The Government does not apply a formaldefinition of small towns in Lao PDR. The Laolanguage does not include 'small towns' and'multi-village' (as understood globally)9. Thereare several other terms related to 'settlements'that also do not exist. Perhaps historically, dueto the small population and low populationdensity, there has been no need to definethese terms. However, now that the urbanpopulation is growing, the need to define theseterms for common understanding for thedevelopment of policies, regulations and newmanagement models has become moreurgent.

Population Range of 143Centers designated as Urban

90 i80706050403020100

•""«;;;«"•• '

1 1

77

^THH—?—• r*T^—"

III 1? ̂

si

IYr2000 BYr2010Pop. Range '000s

It was only recently that Nam Papa and ADBbegin to develop criteria11 for classifyingdifferent levels of urban settlement in thecontext of water supply. Data have beencollated by the size of the population within allof the municipal boundaries. These municipaldata assist in the planning of water andsanitation services, as all villages that wouldpotentially be served by a water supply areincluded. Previously, data were collected onthe basis of whether a village had access tocertain facilities that would then classify it asbeing either urban or rural12. This led to

9

10Refer: Appendix 1: Terminology.Nam Papa, the State-owned Enterprise for UrbanWater Supply.Through the ADB-funded Water Supply andSanitation Sector Project, Loan No. 1710 [SF].National Statistics Center: Criteria for urban or rural -the village must satisfy at least 3 of the 5 criteria to beconsidered as urban.Permanent Market in the village.Access road driveable throughout the year.Village is in a zone that has Provincial or DistrictAdministrative staff.Most households use electricity.Most households use drinking water supplied by householdconnection or public water point.

inconsistencies as some municipalities wouldbe classified as rural because they did notmeet all the established selection criteria.

Referring to the graph opposite, data from theanalysis of the population distribution13 clearlyshow that, according to the criteria developedfor the WSS Sector Project14 (whereby townswill have to fulfil the criteria that theirpopulation must be between 4,000 - 20,000 bythe year 2010 to qualify for a Nam Papa), asignificant number of more than 50 smalltowns will have a population of less than 4,000by the year 2010.

The NURBIDS study has also been analyzingpopulation data15 to define different categories/types of urban settlements. So far, 192 urbangrowth centers have been identified. Within a15km radius of these growth centers (GCs),68% of the population can be found.

i

Villages In 15 Kms around GCs vs Villages 15 Km*

| ~ ) Hatianal ktrdirr~|- duller boundary

* Villages in clusters] 15 Km radius around clusters] ID Kin radius .jrcund clustersAll villages in Lats

Map of Lao PDR showing the 192 urban growth centers

as identified by the NURBIDS research.

The calculation used for the population analysis isgiven in Appendix 4, Main Data Tables as anendnote. There are a number of different calculations thatcould be used, and the report does not try to define which isthe most relevant, rather to highlight the nature of the rangeof populations and how they might change over time.Refer: Water Supply and Sanitation- an overviewleading into the new millennium, pp15.Refer: National Urban Rural Basic InfrastructureProject (NURBIDS) presentation, WASA ConsultationMeeting, November 30, 2001.



Some of these settlements might be genuinelyurbanized though small in size; others could bemore underdeveloped and might suit a multi-village approach. Should these be public,privately or community-managed? Who will beresponsible for each of the components ofwater supply, sanitation and hygienepromotion that help to bring the significanthealth impacts of an integrated approach tosector investments? How will the systemsgrow and adapt to changing needs over time?These are fundamental questions that need tobe addressed to ensure equitable delivery ofservices to these smaller and generally poorerurban communities.

There Is currently only one mainmanagement model being used in urbancenters In Lao PDR. Improvements to thismodel are currently being implemented10.

The State-owned Enterprises (known as NamPapa) currently manage all urban watersystems. Until 1998, these were all centrallyorganized by Nam Papa Lao headquarters inVientiane. Now, each province is responsiblefor water supply within its own boundaries. Asthe province is the owner of the facilities, andthe State-owned Enterprise is the operator,this can be described as a DelegatedManagement Model. The Provincial NamPapas have full financial autonomy and canorganize their own budgets independently ofthe government system. They haveresponsibility for capital investment, formanagement and operation on commercialprinciples, and for maintenance and renewal.

There is no agency directly responsible forsanitation in urban centers countrywide.

Box 3MANAGEMENT MODEL DEVELOPMENT I N LAO PDR

WASA, URI and Nam Saat, together with line agencies and sector partners, have recently begun to addressthe issue of a comprehensive management model that could serve different levels of population and have manymanagement approaches within an overall guiding national framework. A National Consultation Workshop,supported by the World Bank Water and Sanitation Program - East Asia and Pacific, was held on December 13,2001 that brought senior colleagues from the urban and rural sectors together for the f i rs t time to sharelessons learned, bring experience of other management models (including the private sector) and discussabout the next steps forward.

At an East Asia and Pacific regional meeting inFebruary 2002, supported by WSP-EAP, senior LaoPDR Government officials (responsible for the urbanand rural water and sanitation sectors) were able todiscuss issues affecting the development of modelsfor small towns. The participants talked about the'gray' area that exists in the present administrativedefinition of small towns and how this relates to thedefinition of 'urban' and 'rural' settlements. Theideas discussed at this meeting have resulted in thisproposed outline diagram to develop modelsappropriate for Lao PDR. The diagram is based onthe premise that 'urban' approaches can be used invillages and 'rural' approaches can be used in towns;but the choice for the type of management modelcomes from the users. Hence, the models need to bedemand-responsive, be able to adapt over time, andbe flexible to changes in location.

Location

Ivfenagerrmt IVbdel can adapt CUBT time

16 The technical and financial management capacitybuilding of Nam Papas is being carried out by theGovernment through the ADB-funded Water Supplyand Sanitation Sector Project, Loan No. 1710 [SF],Part D, Package B (NORAD co-financing). Refer:'Capacity Building for the Water Supply Sector Project,Project Bulletin No.2, Review of Financial Situation inNam Papas. Refer Technical Management ofProvincial Nam Papas, July 2001.



The Government of Lao PDR has recentlyintroduced a policy on decentralization and theeradication of poverty17. Following thepromulgation of the Prime-Ministerial Decisionon 'Management and Development of theWater Supply Sector'18 and this process ofdecentralisation, the responsibility to managewater supply was passed to each province.The Provinces have financial autonomy, and inthe case of water supply facilities, these assetsbelong to the province. The district municipalcenters are designated as the planners andfinanciers of the projects, and the villages havenow been formalized as project implementers.Within this framework, more authority hasbeen transferred to the provincial municipalcenters to put into operation the necessarystrategies to encourage development.

In urban centers, the State-owned Enterprise(SOE) is responsible for all operation andmaintenance of water supply services. In ruralareas, users are expected to be responsiblefor operation and maintenance of water supplyand sanitation facilities; but there is nolegislation that directs how this should beorganized.

The fact that all water utilities follow the samemanagement model and that only relativelysmall percentage of the urban centers havebeen covered, means that Lao PDR is in aunique position to be able to introduce anddevelop policy, regulations and communityparticipation techniques that are distinctlyLaotian and can be put in place before theremaining infrastructure works begin.

Community meeting led by the Government staff. MPA wasused to gain insights Into the benefits of the water supplyand latrines, as perceived by women and men in separategroups (Refer to page 14),

Pha Baht Tai Village, Luang Phrabang Municipality.

There are some other examples ofmanagement methods that have been tried indistrict centers (for piped systems with somehouse connections). These are: -

1 Management by the Lao Women's Union(from 1996-1998) and then the VillageAdministration (from 1998-2001) in OldNamtha and Sing District Centers, LuangNamtha Province.

These methods have not been successfuldue to insufficient training of the staffresponsible who did not have abackground in WSS service provision.The provincial Nam Papa took over themanagement of these systems in 2001.

I District Nam Papa that was taken overfrom a local private operator in KhouaDistrict Town, Phongsaly Province.

In 1978 a GFS with 3 public tapstandswas constructed. In 1994, the systemwas taken over by a private operator,who expanded the system to meteredhousehold connections. However, therewere many faults with the scheme,particularly related to insufficient watersupplies to meet consumer demand. Thesystem was rebuilt as part of theProvincial Infrastructure Project (IDA Cr.3131-LA). Commissioned in October2001, it is now managed as a DistrictNam Papa with assistance fromVientiane Nam Papa19.

I Community management in Pha NornVillage, Luang Phrabang Municipality:Urban and rural WS systems running inparallel.

In 2001, the Provincial Nam Papaextended the municipal water supply to anumber of outlying villages (within themunicipal boundary) not previouslyconnected to the system. Mosthouseholds have been connected to thenew system. However, in Pha Nomvillage a GFS system with publicstandposts was constructed in the early1990's. In consultation with the ProvincialNam Papa, the users decided to keep theexisting public standposts for poorermembers of the village who could notafford the household connection fee tothe new mains supply. There is a villagewater committee who looks after andcollects fees for the maintenance of thepublic standposts and GFS system.

Refer: Prime Ministerial Order on the Preparation of theProgram to Eradicate Poverty, Article 2.2, 25 June2001.Refer: NO.37/PM.

Refer: Phongsaly Province, Project ImplementationPlan, 1998, pp7.



I In the only public/private partnershipidentified in the field study, Luang PhrabangNam Papa has joined with a hotel company(Villa Santi) to extend the water network to 3villages to the south of the municipality. Thehotel company is building a new resort beyondthe 3 villages and has agreed to fund the costof the mains pipe. The users will then be ableto connect to this pipe through their own funds.

In the rural area, there are some interestingexamples of private sector involvement:

i In Luang Phrabang Province, theProvincial Nam Saat uses private contractorsfor the construction of most water supplysystems. The contractors are paid by ExternalSupport Agencies.

ft In Oudomxay Province, the Provincial NamSaat has started to use private contractors; buthere the provincial authorities are in directcontrol of the bidding, hiring and paymentsprocess

Discussing the cost of the system compared to thebenefits, using MPA.

Tong Chay Neua Village, Luang Namtha Province.

I Design, Build, Lease for Rural NamPapa: Morphu Village, Pathumphone District,Champasak Province. This is an example of acommunity directly contracting a privatecompany with no external assistance fromgovernment or ESA. For more information,please refer to Box 4 below.

Box 4

jSOOD SUSTAINABIUTY

Morphu is a village located in Pathumphone District, Champasak Province. I t has a total population of 1001people in 174 households. In the early 1990's, Morphu received support from ar\ External Support Agency forthe construction of 17 boreholes with Tara Hand Pumps. In the late 1990's, the wealth of the village hadincreased, and the community proposed to have a new piped water scheme with household connections.

In 2000, the users in collaboration with a private company constructed a new piped water system withelectrical pump. The private company set the initial cost for each household at LAK 700,000 (approx. US$ 80)plus household connection fees. The construction was done by the private company and supervised by thecommunity. The users paid 70% of the capital costs, with the private company covering the remaining 30%,which it will reclaim through the user fees.

After construction, the scheme has been leased by the village to the same private company for management ofthe system for 5 years. The company has set the user fees and hired a few users from that village to beresponsible for billing and repair. These people have been trained on technical and accounting systems. Thecompany is fully responsible for operation and maintenance of the scheme.

There has been no complaint on the services provided by the company and there has been no default on thepayment of bills.

As per the contract signed between the users and the company, the users will manage the system bythemselves after the 5-years of lease. However, there is a possibility that the private company could extendits services upon the community's satisfaction during the 5 year lease.

This example is taken from the 'Mini-Assessment of the Use and Sustainability of Past RWSS Services' undertaken by NamSaat Central in collaboration with local partners, NSOs and ESAs with the support of WSP-EAP. The Mini-Assessment usedthe Methodology for Participatory Assessment (MPA) to discuss these issues with the users and this village received a 'good'rating for sustainability.



NATIONAL STRATEGY AND PRINCIPAL STAKEHOLDERS IN THE SECTORThere has been no national strategy combiningthe urban and rural water supply sectors. Bothareas have functioned separately; urban watersupply through the MCTPC (WASA and theNam Papas) and rural through the MOH (NamSaat).

In 1997, Nam Saat developed and launchedthe National Strategy for Rural Water Supplyand Sanitation20; a comprehensive guidelineframework to encourage demand-responsivecommunity approaches in the provision of ruralwater supply and sanitation services. Thisprocess is being institutionalized through theNational RWSS Programme. The strategyemphasizes the importance of informed choiceso that communities can make decisionsbased on all the relevant facts and their abilityand willingness to contribute. A range ofoptions is offered for water supply andsanitation investments, and a further range ofoptions is being developed for hygienepromotion activities.

The small town and urban water supply andsanitation sector lacks an overall guidingdetailed strategy, although with the setting upof WASA in 199921, the Sector InvestmentPlan (SIP) for the priority urban towns hasbeen developed. However this plan does notaddress the needs of the smaller, poorer urbancommunities. Different levels of small towns ormulti-village systems have not previously beenrecognized as distinct.

Small towns are not specifically mentioned inany government legislation on water supply,although they are referred to in the SIP. It isanticipated that by the year 2020, through theSIP, 80% of the urban population will haveaccess to clean water22. There are nostandards set for daily water consumptionlevels, although a 'per capita consumptionfigure of 120 led23' has been proposed. Thereis a need for the sector partners to cometogether and share experiences, especially asthere are plenty of opportunities for learning.

Box 5POVERTY-FOCUSED INVESTMENTS

AbB Participatory Poverty Assessment*The GOL and ADB have recently produced a report on the dynamics of poverty in Lao PDR. In this report, the poorest 25districts in the country are identified.The Sector Investment Plan (SIP) and the PoorThe 5IP aims to bring 'equitable development benefits'" to all areas of the country. There is no mention of poverty-focusedinvestments in the SIP, or how these might be achieved through alternative financing or management arrangements. There ismention of private sector participation in the Sector Policy Statement; but only that 'the involvement of the private sectormay lead to higher tariffs but at higher service levels'1. No mention is made of how this statement is derived. The SIPproposes providing water supplies to the 60 towns with smaller populations between 2011-2020 at an investment cost of about$150 per capita (US$ 50 million for 340,000 people), following completion of water supply services in the larger towns. TheSIP has 4 levels of priority (1,2,3 and Long-term); but it is not stated how these levels for towns were prioritized.Government PolicyIn June 2001, the Government of Lao PDR introduced a policy on decentralization and the eradication of poverty through thePrime Ministerial Order on the 'Preparation of the Program to Eradicate Poverty'. The SIP was prepared before this importantpolicy document.Present situation with regard to poor districts (liefer Appendix 2)Of the 25 poorest districts, 4 will receive investments through the ADB-funded W5S Sector Project. These 4 towns werealready in Priority Level 1, before the publication of the new Poverty Assessment. One of the district towns in Priority Level 2has been constructed and one more of the poorest districts (Priority Level 'Long-term') is also being supported. There remain19 of the poorest districts without support under current funding arrangements, and 18 of these (72% of total poor districts)are in the Priority Level 3 or Long-term categories i.e. are expected to receive investments after 2010.Is there a need to emphasize, as the highest priority, investments in these 19 poorest districts for'equitable development benefits' in line with Government policy?

Refer: Participatory Poverty Assessment - Lao People's Democratic Republic, Appendix 1, Table A1.14, ADB, December 2001." Refer: Lao PDR Water Supply and Sanitation Sector Project, ADB RRP: Lao 30451, Appendix 3, pp1.1 Refer: Lao PDR Water Supply and Sanitation Sector Project, ADB RRP: Lao 30451, Appendix 2, pp4.

' With support from WSP-EAP.

22

23

Refer: No. 66/PM, Decree on the Organisation andFunction of MCTPC, Article 8, May 20, 1999 andRefer: No. 3170/MCTPC, SIP, 10 September 1999.Refer: NO.37/PM, Article 8.1.Refer: Lao PDR Water Supply and Sanitation SectorProject, ADB RRP: Lao 30451, Appendix 13, pp2.



Institutional SettingTable 1

COL Administrative LevelsLevel I Responsibility '

, ,. I (for WSS Sector)

1 Prefecture and17 Provinces

141 Districts and1 Special Region

of Province

10,08? Villages

Source: NationalSiaiistics (2000)

Regulation " ' ^ ;

(WASA)

Strategies(Nam Saatfor rural WSS;Nam Papa for urban WS)

Planning andFinancing !

(Nam Saatfor rural WSS; ]Nam Papa for urban WS)

Implementers j

: !i

In urban areas, the facilities are generallydesigned by foreign consultants andconstructed by international companiesthrough grants, loans or credit. The completedutility is then handed over to the provincialauthorities, which assign Nam Papa tomanage the utility. In the rural areas, thecommunities themselves, with technicalguidance from Nam Saat staff, have usuallybuilt the facilities.

There is a need for clarification as to who willbe responsible for activities for water supplyand sanitation survey, design, construction andpost-construction management in small townsand multi-village schemes.

A member of the Study Team (right) discussingissues with Provincial Nam Papa staff

in Sam Neua.

BENCHMARKING

The existing regulations (37/PM, 1728/MCTPC), theregulatory body WASA, and most of the waterutilities in the main provincial centers have onlyrecently been created (since 1998). The concernedauthorities recognize the need to develop theinstitutional model at the national level.

In this regard, WASA advised the study team to testBenchmarking as a method for comparing water utilitystandards in the four small towns. This is the firsttime that Benchmarking has been used in the WSSSector in Lao PDR.

An example of the benefit of using this reportingsystem is the ability to be able to compare figuresover different years:

Average Tariff (US$/m3):

• FY2000 BAv. HFY2001 BAv.

...0,17

LPB LNT SMN SKX Av.

In this example, the US$ cost/m3 for average tarifflevels is given. Except for Sam Neua, there is areduction in the tariff level from FY 2000 to FY 2001.I f the Lao Kip/m3 version was used, all the tarifflevels (except for Samakhixay) have increased; but ascan be seen here, not enough to keep pace with Lao Kipinflation.

Note: In some graphs and tables used in this report, the followingabbreviations refer to:LPB - Luang Phrabang; LNT - Luang Namtha;SMN - Sam Neua; SKX - Samakhixay; Av. •••• Average.In some graphs, the abbreviation BP is used to highlight 'Best Practice' as

a guide to standards suggested in World Bank Viewpoint #242, A WaterScorecard, Setting Performance Targets for Water Utilities (Refer:

t Tynan N. and Kingdom W., April 2002),

Refer: Appendix 6 for Benchmarking results.

Small Towns Water Supply and Sanitation Initiative in Lao PDR 8


The main actors involved at the Nationallevel in the water supply and sanitation sectorare summarized below4: -

MCTPC - overall responsibility for water andwastewater management systems in urban andrural areas throughout the country;DHUP - assists the Minister of MCTPC in stateadministration on the water supply sector;WASA - directs the management of the watersupply sector, the planning of projects in urban andrural areas, and is the regulator for the water supplyand wastewater sector;MoH - overall responsibility for rural water supply,and urban and rural environmental hygiene;Nam Saat - facilitate, advise, train and promoterural water supply, and urban and ruralenvironmental hygiene, through community-basedapproaches;MoF - supports and arranges investment andfinance of water and wastewater managementsystems and environmental hygiene;WRCC — coordinates water and water resourceprotection to secure sustainable development ofthese resources;Nam Papa Vientiane (NPV)5 - N P V is thelargest and most experienced water utility in thecountry, and has Specific responsibility for humanresource development in the sector.

Although not included in the main existingsector regulations, there are several lineagencies that are also involved in the sector: -

MoE - coordinates with Nam Saat for the planningand implementation of the School SanitationProgramme and curriculum development;DHDP - Organizes and oversees the work of NamSaat;Food and Drug Control - Checks water qualityannually at the water treatment plants;WS Division of DHUP - Overview of all sectorinvestments for budget and planning;LWU, LYU, RDC - assists Nam Saat oncommunity dialogue activities for rural water supply,sanitation and hygiene promotion.

Provincial LevelProvincial Governments - have to fulfill anumber of duties that are not clearly defined relatedto water supply, wastewater, sanitation andenvironmental hygiene, although the ProvincialGovernment owns the small town water utilities.

DCTPC - Principal actor at the provincial level forlarge urban water supply; but only mentioned inexisting regulations as far as collaboration withProvincial Government to find suitable solutions toassist low income households which cannot affordthe cost of a sanitary facility;6

Nam Papa State Enterprises (NPSE) -manage and operate all water supply andwastewater systems and develop raw water inurban centers within their respective provincialboundaries, and manage sanitary facilities with thesanitation regulation issued.Water Administration Board7 - not defined inthe regulations, but oversees the NPSE.Provincial Department of Health - not definedin the regulations, but oversees the district andprovincial Nam Saats.Nam Saat — implements community-focusedprojects for rural water supply and urban and ruralenvironmental hygiene.LWU, LYU, RDC - assist Nam Saat on communitydialogue activities for rural water supply, sanitationand hygiene promotion.

District LevelThere is no formal definition of who is responsible atthe district level, although provincial by-laws mayexist. District Nam Papas are not mentionedseparately in existing regulations, althoughassumed to be within the responsibility of the PNPs.However, when related to RWSS, the district NamSaat is the implementer supported by the DistrictHealth Office, LWU, LYU, and RDC who assist withthe community promotional activities.

Community LevelAlthough community awareness and participationare mentioned in No. 37/PM, there is no regulationthat gives rights to the consumers, especially toestablish the Water and Sanitation Committeeand to handle community funds.

Sanitation sectorThere is no detailed law or regulation dedicated toroles and responsibilities for the sanitation sector inthe urban area, and the institutional set up for this isnot yet clear. Nam Saat is responsible for sanitationin the rural area.

There are a number of ESAs and NGOs supportingthe sector8. However, there appears to be noorganization focused on developing small towns andmulti-village WSS management and financingoptions within a regulatory framework that interlinksthe urban/small town/rural nexus.

Refer: No. 37/PM; Preliminary Desk Research: FinalVersion, pg 12, October 2001; National ConsultationWorkshop on Water and Sanitation, Report, 13December 2001, Attachment 8.Nam Papa Vientiane (NPV) is the water supply utility inVientiane Prefecture. Prior to decentralization andDecree No.37/PM (1999), NPV was within MCTPC andwas known as Nam Papa Lao (NPL). Refer: DecreeNo.37/PM (1999), Article 7.1 for NPV human resourcedevelopment responsibilities.

Refer: Decree No.37/PM (1999), Article 2.5.Refer: page 22: Utility organization.Refer: Appendix 2 for support partners for urbanwater infrastructure development, and for NGOs andESAs supporting the rural sector in each province.



Figure 1: Based on findings from the National Consultation Workshop for Water Supply and Sanitation a

SMALL TOWNS - WATER SUPPLY, SANITATION AND HYGIENE PROMOTION: MAIN STAKEHOLDERS

PRIME MINISTER'SOFFICE

CENTRALMoF MCTPC

DHUP WASA

WR

CC MoPH MoE

DHDP Food+DrugControl

NEW

pDoPHWater AdministrationBoard

Private enterprises andindividuals

• N a mSaat

Food + Drug ;l:

Section

Provincial/DistrictCoordination Units (PCUs)

11 DA Projects]

RURALCOMMUNITIES

Responsibilities

Partnership

Main Actors

Potential Actors

Nam Papa- Urban Water

Supply andWastewater

- Urban WaterQuality

Small Towns/Multi-village

Regulatory frameworkto be established lor water

supply and sanitation

Nam Saat- Rural Water Supply- Urban and Rural

E nvironmental Hygiene- Health & Hygiene Promotion- Drinking Water Quality

' Population of 2000 - 15,000 people (as defined through ADB-funded WSS Sector project).J Multi-village is not yet an official term for a Level of settlement, but is used here to describe small towns with different centers and different populations.1 WSS Committees as yet have no statutory regulations.'' ST I ,cvcls mean Small Towns I .evels 1 -4 (as per definition through ADB-funded WSS Sector project).

Note: Official GOL definitions and criteria for urban, small town, mulli-village and rural are yet to be established.5 An example of a dNP (Sli) is Meuang Kiiua, Phongsaly Province (Constructed in Yr 2001)." Refer: Report of the National Consultation Workshop for Water Supplies and Sanitation, 13 December 2001, Attachment 8.

Refer: Management and Development ot'Water Supply Sector, No. 37/PM, 30 September 1999.Refer: Promulgating the I,aw on I lygiene, Disease Prevention and Health Promotion, No. 49/PR, 23 April 2001.Refer: Decree to Implement the Water and Water Resources Law, No. 204/PM, 9 October 2001.

Small Towns Water Supply and Sanita on Initiative in Lao PDR 10


Table 2 continued

Main Regulatory Framework29

Year19%

1997

1999

2000

2001

TitleLaw on Water and WaterResources

Presidential DecreeNational Rural Water Supplyand Sanitation Strategy andGuideline National Framework,MOH

Ministerial StrategyUrban Planning Law

Presidential DecreeEstablishment of WASA

Prime Ministerial DecreeWater Supply SectorInvestment Plan

Ministerial StrategyManagement and Developmentof the Water Supply Sector

Prime Ministerial DecreeDecision and Activities ofWASA

Ministerial DecisionNURBIDS FrameworkAgreement signedLaw on Hygiene, DiseasePrevention and HealthPromotion

Prime Ministerial DecreeDecree on Implementation ofthe Law on Water and WaterResources

Prime Ministerial DecreeUrban Water QualityRegulations and Tariff Policy

No.106/PR

14/11/97

11/PR

66/I'M

3170/MCTPC

37/PM

1728/MCTPC

59/CIC

49/PR

204/PM

WASA(Drafts)

Recognizing the need to develop an overallframework for water supply, sanitation andother basic infrastructure to reach the poor, inearly 2001, the DHUP finalized the FrameworkAgreement for NURBIDS. The aim of thisStrategy is to bring together actors in bothurban and rural fields to improve theselinkages for the coordinated planning andconstruction of basic infrastructure.

NATIONAL CONSULTATION WORKSHOP

The f i rs t National Consultation Workshop onWater Supply and Sanitation was held onDecember 13, 2001. The workshop wasorganized by WASA, URI and DHUP withsupport from WB WSP-EAP.

(continued opposite) ^ _ _ _Box 7

' Refer: Appendix 1, Regulatory Framework.

The aim of the workshop was to bring sector partnerstogether to share experiences on urban and ruralsector issues, particularly in relation to address theneeds of the many small towns and multi-village areasthat are presently without WSS services.

Some of the main points highlighted from thisworkshop are-

i. Strategy/policy framework/management modelsare required for small towns.

ii. Projects should be demand-responsive and need tobe designed to allow the poorer members of acommunity to afford water supply and sanitation,

iii. There is potential to pilot innovative solutions forthe involvement of private enterprises in WSprovision, for example but not limited to Design,Build, Lease (DBL) contracts.

iv. The need for complementary roles between theprincipal institutions, and clarification of the roleof some of the actors in the overall institutionalframework.

v. Water quality testing needs a central institutionto oversee the development of this sector

vi. I t is possible to use participatory techniquesdeveloped in the rural area of Lao PDR and adaptthem to the urban setting.

Participants map out the WSS institutional situation.



Water and Sanitation Facilities in SmallTowns

Water Supply

Lao PDR has the Mekong River flowing alongits western border, which is fed by 11 majortributaries. There is significant rainfall for 6months of the year, followed by a dry seasonwith little precipitation. This affects the designof water systems, particularly in relation to highturbidity levels in surface water sources in therainy season. The major population centersare along the Mekong River.

Data at the provincial Nam Papas identifyingthe quality of surface and ground water withintheir provincial boundaries are limited. No datacould be found on the status of the watersupply systems in smaller urban settlements,although some of these settlements havereceived assistance in the past for basic pipedwater systems with public standposts, shallowwells or boreholes.

A total of 30 municipal centers currently havewater supply systems that have householdconnections. A further 33 district centers10 willbenefit from these services under currentfunding arrangements. Thus, all Priority Level1 district centers and most of the Priority 2district centers (according to the SIP) haveagreed financing. There are 81 small townsremaining (or 57% of the total municipalcenters) that presently use communal watersupply facilities (such as, public standposts,shallow wells etc.), lack sanitation services andrequire infrastructure improvements.

Of the total 143 urban centers11, there are 77settlements (or 54%) that currently havepopulations of less than 4,000 persons. Ofthese 77 settlements, 37 'urban' centers havepopulations less than 2,000 inhabitants. Thereare also 21 rural villages that have populationshigher than 2,000 inhabitants, and are thusbigger than some of the municipal centers.These large 'rural' villages have not beenincluded in the SIP. If the data from NURBIDSare also included (which looks at 192 urbangrowth centers, rather than only the officiallydesignated 143 urban centers), there are many

9 Includes La District Town, a multi-village system, whichis being constructed at the time of the writing of thisreport.

10 Of these further 33 district centers with agreedfinancing, 30 are being funded through ADB projects(of which 18 are confirmed sites [I site is upgrade -Samakhixay], 12 have yet to be decided). Refer:Appendix 2.

11 Refer: Appendix 4.

more settlements to be taken intoconsideration, and some of these may fallwithin the concept of multi-village systems.

Among these more 'rurban' centers there is aneed to pilot appropriate management models.In Lao PDR, there have been occasions wherewater systems have been built that encompassa number of villages. However, there appearsto be little recording of how the managementarrangements were agreed upon or how thesefit into the national strategies.

Nam Papa defines an urban piped watersupply as having the following characteristics:

1. The water is treated to WHO drinkingwater quality standards

2. The system is piped with individual houseconnections

3. The 'urban' center has more than 2,000dwellings (the number of people is notgiven) and a population density greaterthan 30 persons per hectare.

However, a problem occurs when a populationis considered to be too small by the ProvincialNam Papas. There are existing regulations12,which are known to those working in the WSSsector. However, these have not beencommunicated well to the provincial or districtauthorities, and the small town/multi-villagefalls into an undefined 'gray' area whereneither Nam Papa nor Nam Saat is givenresponsibility for the design and managementof the system. There is also no existinglegislation to clarify appropriate managementmodels for this gray' area.

12 Refer: 37/PM, and 209/MCTPC - Rules and Regulationsof Town Planning.



Sanitation

Nationally, there are no current figures forsanitation coverage in urban centers. The mostrecent figures are the 1995 census. No urbancenters have access to a comprehensive pipedsewerage system. The small-bore seweragepipe system, recently installed in a limited areaof Vientiane Municipality34, is not functioningproperly because the treatment facilities areblocked by solid waste mixed with thesewerage stored in the disposal basins. Itcosts about $1 for a truckload of sewerage tobe deposited at this site. In other places,where they exist, sanitation facilities are on-site and the responsibility of the individualhousehold.

There is no agency responsible for sanitationcountrywide. Although there are supposed tobe 'model' sanitation regulations developed inthe Secondary Towns Urban DevelopmentProject35, these have yet to be prepared. TheUrban Development and AdministrationAuthorities36, recently set up in the secondarytowns, have been given the duty to 'construct,improve and maintain the urban infrastructurearea services, including sanitation andprotection of the environment'. It is not clearhow this is being done at present with regardto sanitation. The Nam Papas are supposed tobe responsible for 'compliance of themanagement of sanitary facilities with thesanitation regulation issued'. None of the NamPapas in the small towns visited wereundertaking this role.

Luang Phrabang has the only regulations onsanitation in the country. These regulations arein effect local by-laws 7. The four secondarytowns (which include Luang Phrabang) alsohave guidelines for project implementation toassist poor families3 that were developed byDHUP and project partners. There is also aninnovative project in Luang Phrabang, beingrun through the UNESCO 'La Maison du

Vientiane Urban Infrastructure and Services, ADB TANo.3333-LAO, Final Report. Also refer, Vientiane Times,March 19-21, 2002.

35 Financed through Secondary Towns Project, ADB LoanNo. 1525 [SF].

36 Refer: Decree No. 177/PM, Organization of UrbanDevelopment and Administration Authority (UDAA),December 22, 1997, Five UDAAs have been set up-one each in Vientiane Municipality and the fourSecondary Towns.

37 Refer: Secondary Towns Project, ADB.3S Refer: Minutes, DHUP, 16/3/2001 Secondary Towns

Project, ADB Loan No. 1525 [SF].

Patrimoine'39. The project aims to build adatabase of household sanitation investmentsso that future projects can be targetedeffectively. As part of the proposed DANIDA-funded 'Urban Environmental ImprovementsProject', sanitation improvements are alsoplanned in Sam Neua.

The Law on Hygiene, Disease Prevention andHealth Promotion was promulgated in April2001. The MOH, provincial and municipalityhealth departments, and the district healthoffices are the agencies in charge of managingand supervising the law40. Although there arefew specifics about sanitation, the law is agood starting point for developing moredetailed regulations.

The Government through the Urban ResearchInstitute is proposing to open further study inthis area to complete these regulations and setup a national urban sanitation program.

DIFFERENT PERCEPTIONSBox 8

Although the official words for each of thefollowing terms exist, generally people inLao PDR understand that the word for'town' also has other meanings a.

UJ83 (meuang) can mean country

clj93 (meuang) can mean city

cBsj (meuang) can mean town

(meuang) can mean district

(meuang) can mean urban

'Multi-village' as a word or concept does notexist.So how can the process of understandingthe needs of 'small towns' or 'mutli-village'be defined in the Lao context? A potentialsolution to this problem might be to changethe approach to classifying the managementmodels b, such that rather than 'rural' and'urban' models, the models are defined interms of being

'institutionally-managed' or'community-managed'.

° Refer: Appendix 1 for further examples ofsettlement classifications and official terminology.b Refer: Discussion group led by Richard Hopkins, WSP-

Refer: Appendix 7: Examples of EnvironmentalSanitation Mapping, Luang Phrabang, UNESCO/ LaMaison du Patrimoine, 1999.Refer: Law on Hygiene, Disease Prevention andHealth Promotion, Article 40, 23 April 2001.


Case Study: Final Version ~ April, 2002

CASE STUDY METHODOLOGIES

Provinces and Small Towns Studied

This is the first time the Government undertook astudy on small town management models in thecountry. The Field Study Team from WASA and URIconducted the research in four small towns usinginnovative research techniques such as theMethodology for Participatory Assessments, theGlobal Small Towns Study Methodology, andBenchmarking that built on existing governmentmethodologies. The following criteria wereemployed for the selection of the towns:

* different management models,

•* different types of water source,

4 minimum 2 years of system operation,

* funding source, and

•* town size distribution.

However, it should be noted that the criterionfor different management models could not befulfilled in Lao PDR because the managementmodel for small towns in its current definition issimilar throughout the country.

Total Population and Population Served

Graph 3

80

60

40

20

0

H HRI Total PopulationM Population Served

65.9

f l 3 9 5

I — |" 1 1427.9 U 11.7 96 8.6

LPB LNT SMN SKXData for YrZOOl

Box 9COST-BENEFIT ANALYSIS USING MPA

In the course of the research, government staff and senior water utility representatives in each smalltown investigated using the Methodology for Participatory Assessment (MPA) to discuss the costs andbenefits of the water and sanitation services as perceived by the customers themselves.This was the f i rs t time for provincial Nam Papa and central level staff in the urban water sector to usethese techniques and hold this kind of customer meeting. The most important benefits raised are: -

Water Supply:convenience

0%

23%

L-27%

Sanitation:cleanliness

26%4 1 %

LEGEND r ' I I Cleanliness

Convenience

! Health [ J Safety

Economic | | : ' •••^| Privacy

| Other

" Refer Appendix 5

Techniques such as 'Community Dialogue', 'Informed Choice' and MPA can be developed in Lao PDR for theurban / small town setting.



View from the elevated storage reservoir in Samakhixay Town, Attapeu Provinceshowing the low population density of the small towns that results in high investment costs.

Small Towns sampled:

I 3 small towns in the North, 1 in the south,representing 4 water systems;

I Population range from 9,600 to 65,900;

I Systems from 3 years old to 32 years old(two of these systems with expansions inthe past year). The population in Luang Phrabangis high for small towns. In Lao PDR, it is designatedas a Secondary Town/Regional Center, not a smalltown. It was included in the study because it is one ofthe few water utilities (outside Vientiane) that have along history of management to learn from (more than30 years experience). Most other utilities have beenin existence for a very short time (less than 5 years).It is one of the best-managed provincial utilities in thecountry. Also, the utility currently serves some 39,000people, which would allow it to fit within the globaldefinition.

The utilities studied were all provincial municipalcenters. No district centers/smaller small towns wereincluded in the study as there are few utilitiescurrently operating at this level, and no recordedexamples of good management models to learn from.

I 1 management model identified, State-owned Enterprise;

I 4 systems use surface water, 2 with fulltreatment, 1 with treatment by slow sandfilters (not functioning properly) and 1 withtreatment by an infiltration gallery leadingto a 'wet well' (not functioning properly).

I No comprehensive sanitation strategyidentified, although there are positivedevelopments on-going in LuangPhrabang, and plans for urbanenvironmental improvements in SamNeua.

I Environmental assessment reportsavailable only in 1 of the Nam Papa officesvisited.

I Hygiene promotion is being undertaken insecondary schools in all 4 towns.

The village is the central unit of life andadministration in Lao PDR. It is called the 'ban'in Lao language. Even within the major urbancenters, the 'ban' remains a distinct unit. In thisstudy, 9 'ban' were visited for communitymeetings that were held in separate groups formen and women.

TECHNICAL ASSESSMENT

Geographic Coverage

There is only one piped network system persmall town, and no competition. Coverage inthe towns ranges from 56% to 89%.

Coverage of the small towns(2001)

LPB LNT SMN

Site

SKX

I Graph 4

For LPB, SMN, and SKX, the coverage iscalculated by 'the no, of persons receiving theservice' + 'the total population1. The data for LNTis based on ('the no. of connections' x 'an averageof 6 persons per household1) + 'the totalpopulation', because the data collected in thistown only provide 'the no. of connections'. This Isan example of the need for National reportingsystems using techniques such as Benchmarking,


Technologies

• There were some examples of unsuitabledesigns by external consultants not takinginto account local conditions andexperience, level of service choice oraffordability and willingness to pay e.g.

1/. In Sam Nuea, for example, there is no pre-sedimentation tank before the slow sandfilter (which is not functioning correctly dueto high turbidity), even though this was adesign learned from lessons from previousprojects41. The storage reservoir has beenconstructed at a height that prohibits futureexpansion of the town to the surroundinghills. The users were not consultedregarding the choice of the spring source.

21. In Samakhixay, a sand island in the riverhas been used to function as an infiltrationgallery leading to a 'wet well', even thoughNPL did not want the design42, and thesystem is not functioning properly. Inaddition, the UV water treatment technologybroke down soon after construction due tothe high turbidity, and the province's inabilityto get or afford spare parts.

Nam Papa State Enterprise,Luang Namtha Office

Environmental Issues

Environmental issues and water quality haveonly recently been given priority and they arenow the responsibility of WASA Technical andAppraisal Division. There was limitedinformation available on these issues.


Service Delivery

Water is provided through house connectionsin all 4 towns. Due to the poor quality of thewater (high turbidity) in Samakhixay, someinstitutions have put boreholes with hand pumpinstead. However, the cost of a borehole isprohibitive to many households. Despite poorquality water, Samakhixay has achievedalmost 90% coverage, showing the demand forpiped water supply direct to one's home. Thenumber of connections has rapidly increasedin the last 2 years in Luang Phrabang,particularly because of the recent extension ofthe system to outlying villages that previouslyhad no piped water supply system.

User satisfaction has never been measuredpreviously in any town in Lao PDR. There is noformal recording of complaints from customers.During the MPA exercises for this research,senior management was able to have adialogue with the users via participatorytechniques. The results are encouraging,prompting Nam Saat to propose to hold similarusers' meetings; but would like to have trainingon participatory techniques in order to gain fullbenefit from these meetings.

Total House Connections by Year

YearGraph 5

Existence of Alternative Sources

41 Refer: Southern Provincial Towns Water Supply Project,ADB Loan 1122-LAO (SF), Final Report, June 1997,pp3.Refer: Southern Provincial Towns Water Supply Project,ADB Loan 1122-LAO (SF), Final Report, June 1997,pp19.

Note: Improvements to both Sam Neua and Samkhixaywill take place through the WSS Sector Project(1710-LAO).

In Luang Phrabang, 5% of households (in theurban area that is serviced by the water utility)were reported to share a connection withneighbors because these people are too poorto pay for their own connection. There were noinstances of neighborhood resale recorded. Itwas also reported in other towns that families



who cannot afford a connection share a waterpoint with a neighbor.

No figures were recorded for the use ofalternative sources. Some households werereported to be using shallow wells within theirhousehold compound. In Samakhixay, manyusers go traditionally to the Xe River forbathing, clothes washing and other householdchores. In Sam Neua, the villages during theMPA stressed the benefits of the closeness ofthe household connection that saved a roundtrip collection time of more than 30 minutes fortwo buckets (30 liters) of water.

Water Production and Consumption

Each provincial Nam Papa for theBenchmarking results reported the waterproduction and consumption figures differently.This points to the need for a standardization ofthe definitions required for the Benchmarkingto be set up so that results can be easilyproduced, analysed and compared.43 Data canthen also be analysed for production versusmetered consumption, consumption sold,unaccounted for water or age of the system.

Consumption (l/c/d) in Yr2000

SKX

SMN-

LNT

LPB

•

J 53

^54

| 116

174

SO

Graph 6

100

Litres

For this graph, the results were calculated from'total water sold1 (m3/year) converted toliters/day divided by the 'population served'.Luang Phrabang has much higher per capitaconsumption than other utilities, probably dueto the high number of tourists visiting the town(i.e. non-residential water consumption).Figures for Samakhixay could be affected bypoor quality water and, as in Sam Neua, faultymeters.

Refer: Benchmarking Results, Appendix 6. The data forSam Neua and Samakhixay have also been reporteddifferently to other studies. For this study, the results arebased on the data received from each Nam Papa.

The figures for Unaccounted for Water (UfW)44

in the graph below are dependent on theaccuracy of the recorded meter readings. InSam Neua, it was observed that one of themain meters at the outlet from the reservoirwas not functioning properly. None of theutilities kept records of the condition of metersor tested regularly the metered connections inthe distribution network.

Unaccounted for Water (2000)

Less than

LPB LNT SMN SKX BP

Site

L Graph 7

In Sam Neua, UfW is very high at 43%. Thesystem was completed recently in 1998 andthe NPSE is already requesting externalsupport for additional storage and treatmentfacilities. The coverage is 83% (Graph 4,pp15), and 'Production compared to DesignCapacity' is 86% of present capacity45 (Graph10, pp 21). Further investigations should becarried out to determine this high UfW figure.

WASA at present is in the process ofdeveloping technical design standards46. Thedesign criteria for the 4 utilities visited in thestudy appear to have been set by eachconsultant design team. It was not possible toverify this information in all the field surveysites, as the Main Report (prepared prior toproject construction) was only available in oneof the Nam Papa offices visited47.

1 This graph is calculated using 'water supplied (m3/year) -water sold (m3/year) and as a percentage of watersupplied'. Refer: World Bank Viewpoint #242, A WaterScorecard, Setting Performance Targets for WaterUtilities, (Tynan N. and Kingdom W., April 2002, pp2).

' Current water production capacity is lOOOm3, but designcapacity after system expansion is expected to be 2,600mJ.

' Refer: The technical and financial management capacitybuilding of the Nam Papas is being carried out by theGovernment through the ADB-funded Water Supply andSanitation Sector Project, Loan No. 1710 [SF], Part D,Package B (NORAD co-financing).Refer: Refer Luang Phrabang Water Supply Project,Phase II, Detailed Design Main Report, August 1997.Section 3.


Case Study : Final Version - April, 2002

Water quality, Reliability and PressureLuang Phrabang Nam Papa has the mostadvanced water quality testing of the four sitesvisited, with 24 parameters being tested48.Daily records are kept for a monthly report thatis sent to the provincial DCTPC and WASA.

People only mentioned water quality as anissue during the MPA activities in Samakhixay,due to the poor quality of the water. The waterquality (as tested by the Study team) wasequal to or above the minimum standard of 5NTU (WASA draft regulations standard) at alltest sites in Samakhixay.

Odor of the water was also mentioned in onevillage meeting. The users had only recentlybeen connected to the mains and had notexperienced chlorine before. This would pointto the need for hygiene promotion activitiesbefore and after connection to explain,together with other priorities identified by theusers, the benefits of using chlorine.

I These issues are being addressed byWASA through the development of urbanwater quality legislation. This would also bea good example for the setting up of abenchmarking system to compare waterquality standards nationally.

Service delivery hours are 24 hours per day inall of the 4 small towns, except Samakhixaywhere there is an 18 hours service due to thehigh cost of pumping from the river source.However, many households have a waterstorage system for periods of low pressure.

Maintenance works are usually carried outquickly. In Luang Phrabang, these repairs arecarried out under a service contract.

Siu.. * , , » ...Kif in Sam «c... .it* filter is dry anddoes not function at the correct loading rate.

Note: Upgrading of the system will take place throughthe WSS Sector Project (1710 - LAO).

48 Refer Appendix 6.

Investment Costs

The analysis of the investment costs (refer tographs on the next page) shows that these arehigh compared to, for example, Vietnam. InLuang Phrabang, the calculations were basedon a design period of 20 years (1995-2015)and water demand projected to this time49. Thedesign, however, is separated into phases thatcould spread some of the capital cost overtime. In Luang Namtha, the investment cost isvery high compared to the capacity .

The SIP is based on a per capita cost ofUS$130, which is similar to the US$135 foundin the 4 towns studied51. The SIP also expectsthat the total cost to reach the Government'starget of 80 % coverage by the year 2020 willbe US$188 million (including expansion ofexisting systems). However, if the per capitacost US$23 from Vietnam is used, togetherwith a short design period of 5 years, thenabout US$5.6million (not including expansionof existing systems) could be sufficient for the52 new schemes needed to reach this level ofcoverage. (See Box 10 for details).

A member of the Study Team discussing issueswith the Head of Provincial Nam Papa (right)

in Sam Neua.

Demand was separated into Domestic (85 l/c/d),Administrative and Commercial Consumption. ReferLuang Phrabang Water Supply Project, Phase II,Detailed Design Main Report, August 1997. Section 3.

The figure for LNT is much higher, partly due to 2projects being averaged together - for Old Namtha andNew Namtha. However, even when separated, thesefigures are still high at $1,002/m3/day for New Namthaand $2,1Q0/m3/day for Old Namtha.

The historical investment cost is about US$265 percapita. Refer 'Water Supply and Sanitation in LaoPDR', Final Draft, February 2000, pp41.


INVESTMENT COST RELATED TO CAPACITY[= initial investment cost (US$) +

Design capacity (m3/day)]

to

1200

1000

800

600

400

200

0

1099

593

a.

o

542 562

III I

| I

152 115

• IGraph 8

00 t -

a 3Site

Average design investment in 4 towns = 665 US$

Average design investment in Vietnam = 152 USS(for towns)

Average design investment in Vietnam = 115 US$(for townlets)


INVESTMENT COST RELATED TO POPULATION[• initial investment cost (US$) +

Total Population]

Average per capita investment in Vietnam = 23 US$

Box 10INVESTMENT COST CALCULATION for Towns without W5 schemes (household connection)

Designated urban centers:Total No. of District Centers (142) + Small Towns (1) = 143 urban centers5IP to achieve 80% coverage by 2020, therefore 143 x 0.8 = 114 urban centersPresent situation (Refer: Appendix 2)Constructed WS Systems (30) + Agreed funding (33) = 63 - (one of these is for upgrading),

= 62 urban centers have been completed or have agreed funding. No calculation is made here as to investment costs forexpansion of these systems.

• Target (114) - Existing (62) - 52 new WS schemes for 80% coverageRemaining = Total (143) - Existing (62) - New (52) - 29 WS schemes for 100% coverage

• Also there are 21'rural'villages that have a present population >2,000 persons

I f 20-year design period and per capita design cost US$135:52 new schemes - per capita cost (135) x predicted population of all these towns (405,000) = US$ 54.6 million29 new schemes - (135) x (72,000) = US$ 9.7 million21 villages = (135) x (117,000) = U5$ 15.8 million

I f 10-year design period and per capita design cost US$23:52 new schemes = per capita cost (23) x predicted population of all these towns29 new schemes = (23) x21 villages - (23) X

I f 5-year design period and per capita design cost US$23:52 new schemes = per capita cost (23) x predicted population of all these towns29 new schemes - (23) x21 villages = (23) x

= US$ 8.2 million

In this example to compare investment costs, 100% coverage of all remaining district centers, small townsand large villages could be achieved for about l/10 t h of the cost of using the existing per capitacalculation. This calculation has been done on the basis of the average investment cost per capita inVietnam. This doesn't mean that this will be applicable in Lao PDR (e.g. cost of imported materials arehigher); but it shows a clear indication that there is an opportunity to reduce existing cost.Refer: Appendix 2 for details of these estimated investment cost calculations and population forecasts

These calculations are rough estimates based on the information from these four small towns in Lao PDR and compared with theinformation from the Vietnam Small Towns Study (Refer Lao PDR National Consultation Workshop on Water and Sanitation,December 2001, Attachment 2). Further, more detailed calculations based on previous and predicted investment costs (of projects thathave either been completed or have agreed funding) are required by the national agencies to provide a more detailed estimate.

(287,000)(51,000)(83,000)

(242,000)(43,000)(70,000)

= US$ 80.1

= US$ 6.6= US$ 1,2= USS 1.9= US$ 9,7

= US$ 5.6= US$ 1.0= US$ 1.6

million

millionmillionmillionmillion

millionmillionmillion

Small Towns Water Supply and Sanitation Initiative in Lao PDR 19.


Table 3

Institutional arrangements for Construction Phase in the 4 small towns visitedItem

Managementmodel (operator)

Investor

Financing ;j

Design

Appraisal

Construction

Supervision

<

Institutional arrangements

Nam Papa' - aState-owned Enterprise

Central Government

Provincial Administration

Public (loan/credit/grant through MoF)

and

Provincial Administration as Owner

Contract out to Consultant companiesNam Papa Vientiane supervises

Nam Papa Lao25

DHUP

Contract out by competitive bidding to privatecompanies

Nam Papa Lao25

and

Consultant companies (includes sub-contracting to other consulting companies)

Remarks

(Luang Phrabang has the only example of anextension that will be paid for by a private company)

For urban users, there is no user contribution towardconstruction, but connection fees and tariff fees arepaid after commissioning. In the rural area, userscontribute labor, local materials and some cash

toward the construction.

Communities not involved in the choice of design.

All major construction by foreign companies.

INSTITUTIONAL ARRANGEMENTS

The project cycle for these small towns wasmainly undertaken at central level (these wereall initiated before the process ofdecentralization). Project agreements,loan/credit/grant agreements52, and biddingwere undertaken and signed at the centrallevel. The project documents are either inEnglish, or the donor countries' language andnot translated into Lao. Hence, peopleresponsible for operating the system were notinvolved in issues that could help promote thesustainability of project investments. It hasbeen reported in some cases that externalconsultants have taken key decisions for thedesign and construction of systems withdisregard to the wishes of the provincial waterauthorities and communities themselves.

Design

All four projects were begun before the settingup of WASA in 1999, which has now beendelegated the responsibility for settingtechnical specifications and standards53

It seems that no dialogue has taken place withthe communities in these small townsregarding the level of service choice for thewater supplies provided. It is not clear how thecommunity awareness components of theseprojects have integrated into existing methodsbeing applied and institutionalized by thenational government for promoting designchoice through such techniques as the watersupply ladder and sanitation ladders54.

52 Funds and disbursements have previously been handledthrough the MoF, who transferred the funds to theprovinces through Nam Papa Lao. For new projects thefunds can pass through MOF direct to the provinces.Refer: Appendix 9, Fund-flow mechanisms.

53 Refer: Ministerial Decision on the Organisation and theActivities of Water Supply Authority, No. 1728/MCTPC,Article 2.2, May 26, 2000.

54 Refer: Informed Choice, Design options for the RuralWater Supply Ladder (4A) and Sanitation Ladder (3A),prepared by National Center for Environmental Healthand Water Supply (NEW). The sanitation ladder isavai lable on the fol lowing web-sitehttp://www.wsp.ora/Enqlish/eap/sanitationladder/san ladder.html. Further design options within each of the coredesigns are being prepared by NEW.



The water systems in the four small towns areworking at the following rates of theirrespective design capacities: -

Production compared with DesignCapacity (m Id)

2001 data

LPB LNT SMN SKX

Graph 10 li % used • % unused

The graph shows that 2 of the systems arefunctioning well below design capacity, andthat the systems appear to be over-designed.

Construction

Private companies under contract have carriedout major construction works. These contractswere all signed prior to the process ofdecentralization.

There were some good examples of biddingdocuments and contract conditions in SamNeua.

Supervision

This was usually completed according to theproject agreement with the financingorganization e.g. Supervision Missions withagreed Aide Memoire as a record of themission. The Aide Memoires were nottranslated.

Project Implementation CoordinationCommittees (PICC), Project Monitoring Units(PMU) and Project Implementation Officerswere organized at the central level to monitorthe works. Generally this system did not workdue to the lack of defined relationships

between the agencies, and unclear delegationof responsibilities and authority1".

Districts and users have not been involved inthe supervision.

Table 4

Institutional arrangements forOperation Phase in the 4 Towns

Owner

Operator/serviceprovider

Remunerationof operator &workers

Mainmaintenance

f and renewaloperations

':• Financing of^renewal

Tariffs choice/revision

Contract forivoperator/user,Unvoice

Previously MCTPC, nowGovernment of the concernedProvince56

Nam Papa State Enterprise(NPSE)

NPSE: Full revenues/expenditures/taxes

Workers: Fixed wages57 andannual bonus

Operator for major works

Some contracting for minorworks e.g. leakage repair

NPSE (possibly with subsidiesfrom provincial and central level)

Proposed by NPSE throughWater Administration Board/

Approval and decision byProvincial Government

No, Water fee invoices bycomputer or by typewriter

OwnershipNam Papa is accountable to the ProvincialGovernor and Governor's Office; but theredoes not appear to be any formal regulation orlicense stating the ownership of the NamPapas by the provinces or how other operatorsmight apply for a license if wanting to set up awater supply business, either in the urban orrural areas. In the rural area, ownership isusually defined through a village agreement,signed between the Province, District andvillage. However, there are potential conflictswhen many partners are involved in supportingor contributing toward the WS facilities (e.g.community, Government [province and district]and ESAs). With the prospect for mixtures ofpublic/private/community management infuture small towns and multi-village systems,these issues will need to be clarified.

56 Refer: Southern Provincial Towns Water Supply Project,Final Report, June 1997.After the promulgation of Law No. 37/PM.Approved by the Provincial Government.



Utility OrganizationThe development of the individual Nam Papainstitutions can be seen in their organizationalcharts58. Nam Papa Luang Phrabang, whichhas been operating since the 1930's(becoming a distinct water utility in the 1960's),offers perhaps the best example of how themanagement model in these 4 small towns hasevolved and developed over time, including thesetting up a 'Project Implementation Office' inresponse to the Phase II expansion worksstarted in 1996. The utilities differ inmanagement set-up in each town and thiscould be clarified by learning from goodexamples of management in each utility.

Nam Papas are regulated within the provincesthrough the 'Business Law 42/PR'. Each of theprovincial Nam Papas visited for the study wasresponsible to a Water Administration Boardconsisting of 5 persons, although there are nospecifics in the Business Law defining how thisBoard should function in relation to the watersupply sector.

Table 5

Actors at Provincial Level:Provincial Nam Papa

Water Administration Board

#ofMembersMeeting

ChairmanVice-ChairMemberMemberSecretary

Luan

gP

hrab

ang

5

Quarterly

DOF"DCTPC"

JX)P"PAdmina

PNPC

Luan

gN

amth

a

5

OnrequestDOFa

DCTPC"DOPa

PAdmina

PNPC

Sam

Neu

a

5

Weekly

DOPb

DCTPC"DOTDOFPNPd

Sam

akhi

xay

? i

5

OnrequestDCTPCDOFa

PAdmina

DOPa

PNPC

a= Head b=Deputy Head c=Managera=Deputy ManagerDOF stands for Department of FinanceDCPTC stands for Department of Construction,Transport, Post and CommunicationDOP stands for Department of Planning :'DOT stand for Department of TradePAdmin stands for Provincial AdministrationPNP stands for Provincial Nam Papa

The members of this board, and the frequencywith which they meet, vary in each town. TheBoard meets to review activities, make plansand approve proposals from the Nam PapaManager. Once all members agree, then theChairman can approve of the budget and plan.All decisions can be made in the province.Roles of the Board members were available in

Samakhixay that had been prepared by NamPapa Vientiane.

Board membership is a voluntary position andmembers perform their tasks within theirnormal work functions. In Samakhixay, theywere entitled to 15m3 of free water per month.There are no users' representatives on theBoard. For example, non-residential water usein Luang Phrabang (2000) was 72% of totalannual water consumption, which is mostlyused by the hotel trade; but representatives forthis important sector of the local tourismindustry 9 are not represented on the Board.

Staffing levelsGraph 11

10

Staff per 1000 connectionsBP: Staff per 1000 connections

12

11

LP1 LNT SMN SKX

Sits

Operational Efficiency

The data series shows the number of staff per1,000 connections, using this 'to measureoperational efficiency as an indicator of theratio of inputs to outputs. A high ratio mayindicate inefficient use of staff. The mean valuefor developed countries is 2.1 staff'. B0

m Refer: Appendix 9.

59 Refer: Appendix 6, Luang Phrabang Benchmarkingresults.

60 Refer: World Bank Viewpoint #242, A Water Scorecard,Setting Performance Targets for Water Utilities (TynanN. and Kingdom W., April 2002, pp2). 'The staff ratiosachieved by the top 25 per cent of developing countryutilities...suggest that a target of 5 or fewer staff per1,000 connections is achievable'.



Only permanent staff were included in theresults. All the Nam Papas used contractedstaff for some activities. For example, SamNeua has a policy of training interns (notincluded in the results) who may become full-time staff in the future. Sam Neua Nam Papahas good scores, equal to or below the 'BestPractice' mark61. The other utilities have quitehigh scores, suggesting the need for a reviewof operational practices.

Staffing

Training is required for Nam Papa and WASAstaff on computer-aided design for waterdistribution modelling. This will allow 'informedchoice' to be offered to users throughcommunity dialogue because a large numberof scenarios can be calculated faster.

In Sam Nuea, there was a very good exampleof Civil Servant trainees being employed asinterns and gaining experience (refer above).

The O+M manuals available in LuangPhrabang are very detailed but written inEnglish. Luang Namtha also has O+Mmanuals, but only one of the six volumes couldbe found, also in English. It is very importantfor future development of O+M that thesedocuments are translated and the operatingstaff receive full training.

!

!

i1The MP/\ process actively involves

communities in assessing the benefitsof the water system and sanitation

in Ban Meuang Mai Village, Samakhixay,

Remuneration

The workers receive fixed salaries with anannual bonus. Staff of the Nam Papa StateEnterprises are members of their respectiveNPSEs, not government employees. Theirwages can be set by the NPSEs with approvalfrom the Provincial Governor.

FINANCIAL ASSESSMENT

Unlike in the rural areas, where communitiesare expected to contribute to civil worksthrough cash, labor and local materials, urbanwater supply users do no contribute to theconstruction costs of the systems. Yet, usersare expected to contribute to the completedservices through connection fees. It is not clearwhat discussions are held with householdsbefore the construction works begin regardingtheir contribution towards the connection fee6 .The cost of the connection fee includesmaterials and labor, for example:

• In Luang Phrabang, the consumerpurchases from Nam Papa 2 valves, thewater meter, meter box and Gl 1/2" pipe.There is no subsidy for these materialsand normally 100% of the cost must bepaid before connection. For connection tothe nearest water mains, if the pipe size isgreater than 50mm then this is NamPapa's responsibility, less than 50mm pipesize then the household pays 70% of thecost and Nam Papa supports theremaining 30%. Following connection, allrepairs after the first valve are theresponsibility of the household owner; thefirst valve and before is the responsibilityof the Nam Papa. For poorer families, thisconnection fee can be paid in a maximumof 2 instalments, 50% before connectionand 50% after connection within 2 months.

• There is no direct subsidy for theconnection fee in Sam Neua orSamakhixay.

Each of the Nam Papas had a system forpayment of the connection fee over anextended period for poorer families. Allcharges had to be paid by instalments within amaximum of 3 months.

61 The 'Best Practice' mark given is for developingcountries (Refer: Tynan, N. and Kingdom, W,, April2002, pp2).

Nam Papa Vientiane sometimes acts as a subcontractor for connections in the provinces; but alsoprovides advisory and supervision services (e.g.Khua and Xay Nam Papas). These multiple rolesshould be clarified in the future.



Graph 12

Average Connection Cost (US$)

50 -. 46.2.

LPB Av.

The average yearly household income for apoor family in small towns is about US$161(1999). The average connection cost in thestudy towns was about US$43. Thisrepresents about 27% of annual householdincome6J and may well be a hindrance to manypoorer families connecting to the system.There is no subsidy system to assist poorfamilies in the towns visited, although newprojects in other towns are focussing on 'adeferred payments scheme, with paymentsspread over 24 months'64. This study did notundertake any assessment of wealthclassification and connections; but wouldsuggest that this needs to be undertaken toassist the concerned parties with being able todevelop strategies to allow access to theimproved services for poorer families. None ofthe Nam Papas had a policy of low ordiscounted connection costs to encourageusers to join the system (with this cost thenbeing regained through the tariff).

Tariff setting

Before decentralization, DHUP set the tarifflevels for the whole country. At present, theNPSEs, in line with Law NO.37/PM, aresupposed to have a tariff that meets "allrecurrent costs including operation andmaintenance costs...and should be set to

generate surplus revenue in order to meet aproportion of depreciation or debt service". Theprovincial NPSE proposes tariff levels to theWater Administration Board. These tariffs thenhave to be approved by the provincialauthorities, with the final decision resting withthe Provincial Governor. Hence, the provincialauthorities decide tariff definitions. There ispresently no institution at Central level tooversee or review the tariffs set by theprovincial level Water Administration Boards.

However, WASA has recently started to beinvolved in tariff setting. Although existinglegislation does not give WASA this role,reference is made to this role in the WSSSector Policy Statement and in a new urbanwater tariff policy under draft65. In November2001, WASA was asked by the MinisterMCTPC to set the tariff for Nam PapaVientiane, the first time it has been asked todefine and approve tariff levels (which arecurrently being prepared). WASA acts as boththe agency for sourcing funding and forregulation. This dual function could createconflict of interest and WASA is looking intoways to resolve this situation66

Average tariffs ranged from 0.05 to 0.13USD/m3, which includes the service fee. Thehighest tariff rate was in Samakhixay wherethe water quality is poorest; the utility runs at aloss and has to be supported by Centralgovernment. Tariffs are set in progressiveblock rates. Tariffs are in effect subsidized, asthey do not cover all costs.

In none of the sites visited had the users beeninvolved in the setting of the tariff, nor was thetariff explained before the system was built.There is potential for the use of 'informedchoice' to allow the users to be involved in thechoice of technology for the system that wouldbe reflected in their setting of the tariff level.

Tariffs and the process of tariff setting arecurrently being discussed by WASA and theNam Papa utilities67. Present solutions to theproblem of tariff setting for full cost recoveryseem to be focusing on the mechanical issuesof tariff calculation. However, from theexperiences gained with the MPA cost-benefit

Average monthly household income for a poor familyin small towns (1999) is about US$13.40 (125,000LAK @ 1US$ = 9,300 LAK; Refer Lao PDR WaterSupply and Sanitation Sector Project, ADB RRP: Lao30451, Appendix 14, pp7.Refer Lao PDR Water Supply and Sanitation SectorProject, ADB RRP: Lao 30451, Appendix 14, pp3.

Refer: Formulation of a Lao PDR Urban Water TariffPolicy, Draft, January 2002.Refer: WASA Consultation Meeting Report,November 30, 2001: Attachment 5, Capacity Buildingand Regulatory Development (Interconsult).Through the WSS Sector Project 1710-LAO(Package D, part B grant-funded by NORAD)



analysis activities undertaken for this study , itwould appear that there is potential for users toalso play an important role in tariff settingthrough dialogue, informed choice andunderstanding the full costs of the systembefore and after construction of the improvedservices. In other countries, Vietnam forexample, users were prepared to pay more fora better service69.

The Nam Papas, however, are reluctant toincrease the tariff to cover the full costs of thesystem as they think the consumers will returnto former, unprotected sources if the tariff rateis to high. This has not been discussed withthe communities.

The Study Team discussing institutional issueswith the Head of Provincial DHUP (left)

in Luang Namtha

There is little reported default in tariff paymentfrom household consumers or privatebusinesses. However, there are two problems:

i. late payment from public institutions70.ii. collection of tariff payments from

household.All the utilities visited had a system for latepayment, with the maximum limit being 3months. After this time the connection is cut offand a fine is charged until the outstandingpayment is cleared, although this system wasnot generally used toward defaulting publicinstitutions.

respond to the demands of users, initiallythrough an innovative tariff collection policy. Inone 'ban' in the municipality, many peoplewere often out in the paddy field when the tariffcollector visited. They were then reluctant totravel the long distance to the Nam Papa officeto pay the bill of arrears left by the tariffcollector. Following a community meeting withthe Head of Nam Papa Administration andPlanning to resolve the issue, the usersproposed that the tariff collector stay in the'ban' meeting hall for 2 days every month.They could then arrange for someone to go topay him. The provincial Nam Papa agreed totry this idea as a pilot, and since then tariffcollection has increased. There is a system of11 zones in the municipality (each with anumber of 'ban') for collecting water fees, andthe Nam Papa is looking to extend thisinnovative solution to all of the zones.

Funding of Investments

Expansion Investments: Capital costs arebased on agreements between the GOL andthe different donor agencies, and is generallyin the range of 10 - 20% financing by the GOL,and 80 - 90% by the external supportagency71.

• In the case of Luang Phrabang, the grant fromGermany was agreed with the Ministry ofFinance (representing the GOL) who thenturned this into a loan'2 for Nam Papa LaoLuang Phrabang (interest at 6.6% per annum, 5year grace period, 25 years to repay).

• Luang Namtha Nam Papa was financedthrough World Bank IDA credit. According tothe Credit Agreement, different expenditurescategories are financed at different rates73.

• In Sam Neua and Samakhixay, the projectagreements were not available in the NamPapa offices.

• In all cases the project/loan/grant/creditagreements were not translated into Laotianand consequently senior members of the PNPswere unable to read these importantdocuments.

In response to the problem of the collection oftariff payments, Luang Phrabang Nam Papamanagement is beginning a process to

Through 17 group meetings with users (men andwomen separately), senior Nam Papa managementstaff, and the WASA and URI Technical Team.Refer: Lao PDR National Consultation Workshop onWater and Sanitation, Attachment 2, Presentation onVietnam Small Town Water Supply ServicesManagement Models, December 2001.Refer also: Capacity Building for the Water SupplySector, Interconsult International, Section 3.3.6.5,page 68 and Section 4.5, pp82.

In contrast, the Government is piloting subsidy levelsin some rural areas e.g. Oudomxay Province, thatvary with the type of technology chosen. Thecommunities also contribute labour, materials, andcash to approximately 45% of the capital cost forwater supply and approximately 80% for sanitation.Refer: Luang Phrabang Water Supply Project, PhaseII, Construction Works for System Extension, FinalReport, page 15, August 2000.Refer: Luang Namtha Urban Water Supply ProjectCompletion Report, IDA 2579-LA, Appendix 1,Revised Budget for Water Supply Component; andrefer Luang Namtha Provincial Development Project,Project Appraisal Document, 18 February 1994, pp22.



Renewal: Government regulations encouragefull cost recovery and for the NPSEs to haveresponsibility for "all capital investments forwater supply and wastewater managementsystems"4. However, Nam Papas are reluctantto increase the tariffs too drastically to cover allcosts because senior management feel thatcustomers may either use less water or returnto unprotected open water sources, which mayhave a negative impact on their cash-flow.

Investment Funding Patterns: All thesystems that were visited were financed by aloan through MoF. This is because previouslythe provinces had to apply to the central levelfor this help; but following the policy ofdecentralization they can now contact supportagencies directly. The Nam Papa financialyear is from January to December, differentfrom the Government Fiscal Year PlanningCycle (October - September). Generating ownincome and following own planning cycle areadvantageous when a utilities are financiallyviable. However, there are difficulties whenGovernment funds are required (e.g. tosubsidize tariffs, loan payments etc.) becauseof the conflicting planning cycles.

The WSS subsidy guiding policy (No 37/PM,for urban and rural areas in Lao PDR) lacksdetails for the rural area. Generally, anysubsidy is provided on a case-by-case basis,depending on rules stipulated by each of theInstitutions or ESAs.

Financial Viability of Systems

When compared to the total yearlyexpenditures, the tariff level is too low to coverdirect costs and this means that depreciation,system expansion and loan repaymentscannot be funded except by external subsidies.The average tariff (US$0.09/m3) represents0.04% of average monthly household incomeof poor families in small towns(US$13.5/month) for 20 liters of water per day(or 0.6 m3/month - WHO minimum waterrequirement)5. This actually makes the relativecost comparable to water provided indeveloped countries, and is perhaps at a levelthe poorer consumers can afford to pay forwater supply services. However, according toLaw No.37/PM, the 'NPSEs should aim at anaffordability level of about 3% of the householdincome'6.

Tariff level / m3 compared toCosts / m3

LPB LNT SMN SKX Av,

• Average Tariff/m3

• Total expenditure/m3

• Average Tariff

• Average Total Expenditure

The average tariff/m'1 is lower than the total expenditure/m1 ineach of 4 small towns. Note: Operating cost / m3 has not beenincluded separately in this graph because each of the waterutilities has a different system for recording the regulatoryaccounts, and it is not clear which part of these accounts is foroperating costs, for capital investment or for cost of the capital.

Data for Financial Year 2001

There are no private operators of mains watersupply in provincial centers, district centersand small towns. Both state water utilities andprivate companies sell bottled drinking water.The utilities make a profit on this part of theirbusiness, but overall they still make a loss.

In the case of Luang Phrabang, all money iscollected and dispersed by Nam Papa. Thereare no funds from the province. Themanagement can source any loans. In otherprovinces the tariff rate was coupled with thesmall size of the revenue from collections,meaning that the provinces are unable to coverthe interest payments for the loan.

The sustainability of the existing Nam Papas,with regard to income, expenditure and tariffreform, is increasingly coming under theumbrella of WASA's responsibilities as it gainsexperience as an independent regulator.

4 Refer: NO.37/PM, Article 4.1.6 Refer: Tynan, N. and Kingdom, W., (April 2002), pp4: 'In

developed countries, customers ...pay between0.036% and 0.12% of annual per capita GDP.'

6 Refer: Article 4.6, for lower block domestic tariffs.



H.E. Mr.Khamla Lolonesy, Vice-Minister MCTPC, at thefirst National Consultation Workshop on Water Supply and Sanitation, 13 December 2001 .

[seated from lef t ] Dr. Nouanta Maniphousay (Director, NEW), Mr. Noupheuak Virabouth (Deputy Director General,WASA), Dr. Somphone Dethoudom (Director General, WASA), H.E. Mr. Khamla Lolonesy (Vice-Minister, MCTPC),I^Ar. Keophilavanh Aphaylath (Director, URI), Mr. Santanu Lahiri (Country Team Leader Lao PDR, WB WSP-EAP).

SOCIAL ASSESSMENT

Social Issues«• Social issues have increasingly become the

responsibility of the WASA Technical andAppraisal Division. At present there islimited experience on participatorytechniques for working with communities inthe urban water sector. This suggests theneed for partnership with existinginstitutions, such as Nam Saat, the UrbanResearch Institute and NGOs that haveconsiderable experience in this area.

• The system of government administrationmeans that the village ('ban') is a verystrong unit, even within municipalboundaries. Communities are able toactively participate in decision-making andare interested to be involved, as can beseen by the high turn out of users attendingMPA meetings.

• Users need to be involved in the process tochoose the level of service they want basedon willingness and ability to pay, fullyunderstanding of the tariff payments andfuture recurrent costs. WASA is currentlylooking into ways of developing agovernment system for this in theurban/small town/multi-village setting, inassociation with the existing process beingimplemented and developed by Nam Saatin the rural areas.

• Neither complaints arecustomer surveys done.

recorded, nor

• Quality of service from the users'perspective has not been addressed by anyof the Nam Papas visited, although LuangPhrabang NP are starting to initiate 'ban'meetings. There needs to be a way ofmeasuring service quality involvingregulated reporting e.g. Benchmarking, andconsumers, e.g. MPA.



RECOMMENDATIONS

POLICY FRAMEWORK

> Development of the existing Sector Investment Plan (SIP), which will have a greater focus onpoorest communities for poverty reduction nationally.

> Clarification of ownership issues, particularly as to how this would relate to communitymanaged and privately owned utilities.

> Establishment of a regulatory authority for sanitation.> Development of WSS Sector Laws, Regulatory Framework and National Strategy that

encompass the urban and rural sectors.> Study on sanitation situation that is potentially leading to a Decree on the Management and

Development of the Sanitation Sector.> Legislation for the formalization of Community-based organizations, e.g. WATSAN

committees, Users Associations, use of community contracting (Refer: 37/PM, Article 6).> Further development of the Water Supply Sector Policy Statement7.> Study on the potential for public/private/community management models for water utility

operators (Refer 037/PM, Article 9.2). The models would need legislation to allow theagencies responsible for water supply flexibility to use different management model options forurban and rural water development within (and possibly outside of) their respective provincialboundaries.

> Law on Enterprises for public/private collaboration in the water supply sector.8

> Law on Domestic Investment Encouragement.9

> Law on Drinking Water Supply, incorporating water quality regulations and tariff policy.10

> Complete database listing of all urban centers/small towns/mutli-village schemes by definedcategory, with data sheet on each settlement to cover previous investments, managementmodels and future plans.

INSTITUTIONAL STRENGTHENING

> Establish association for professionals working in the WSS sector.> Dictionary of technical and management terms for water supply and sanitation in Lao, English

and French11, including development of common understanding of Lao terminology used todescribe settlements for urban/small towns/multi-village/rural and criteria for the differentlevels of small towns to plan with the management models.

> Reference binder folder of all laws, policies, strategies and regulations relating to the WSSsector so that additional laws etc. can be included if necessary.12

> Reference binders with guidelines for bidding documents, contracts etc. available in both Laoand English languages.

> Training for Public Communication Programs for effective stakeholder involvement inprojects.13

> Training for Nam Papa, WASA and Nam Saat staff on computer-aided design for waterdistribution modelling to enhance and speed up the process of informed choice.

> Need for translation into Lao of project appraisal documents, project agreements,grant/loan/credit agreements, bid documents, manuals etc. to improve understanding andownership.

> Development of a faculty at the National University of Lao PDR dedicated to water, sanitationand hygiene with recognized qualifications.

7 Water Supply Sector Policy Statement, Lao PDR Water Supply and Sanitation Sector Project, ADB RRP: Lao 30451,Appendix 2.

8 Refer: Lao PDR, Business Law, 1994 and Law on Enterprises, Socialist Government of Vietnam, June 12, 1999.s Refer: Law on Domestic Investment Encouragement, Socialist Government of Vietnam, May 20, 1998, Socialist Government

of Vietnam.10 Refer: Draft Urban Water Law/WASA Charter/Urban Water Quality Regulations/Urban Water Tariff Policy being prepared

under the ADB-funded Water Supply and Sanitation Sector Project, Loan No. 1710 [SF], Part D, Package B (NORAD co-financing) 'Capacity Building for the Water Supply Sector Project'.

11 Refer: Example of the American Water Works Association Drinking Water Dictionary. : .12 Refer: Example of 'the Organization of the Government of Lao PDR' prepared by the Department of Public Administration

and UNDP.13 Refer: WB Report on Assessment of Public Communication Programs in Urban Water and Sanitation Projects, October

2001.



Research into successful management models used in other countries and potential for theseoptions in Lao PDR.Development of a national reporting and database system for WSS investments, such as'Benchmarking'.Development of a Resource Center at WASA for all WSS Sector documents relating to norms,regulations, technical designs and standards, completed projects and project management.

INSTITUTING LEARNING

Produce a manual detailing the management models and how they are applied and can bestandardized throughout the country.Development of effective incentives for efficient O+M of the schemes and for full cost recoveryfor extension and renewal. The introduction of more incentive-based remuneration may help toimprove service quality. Innovative solutions can be tried to improve performance of staff, andlinked to payment incentives to improve utility service, which can be monitored once abenchmarking system is in place. Remuneration can then be paid based on the level of targetreached.Further development of participatory demand responsive techniques (such as 'InformedChoice', 'Community Dialogue' and MPA being developed by Nam Saat, the national agencyfor rural WSS) in all stages of project design and implementation, and for gauging users'satisfaction with the WSS services. These should promote a Lao-led process of developmentthrough consultation for decision-making at the lowest level.There is a need to pilot innovative, cost-effective technologies that will reduce the initialsystem capital costs, and that can be expanded over time as small town/multi-villagepopulations grow.Preparation of Learning and Field Notes in Lao and English languages, with inputs from allsector partners, for dissemination of lessons learned in the WSS Sector in Lao PDR.Designing and posting of a Water Supply Authority website to link with other GOL websites14,which includes training of sector partner Government staff for the updating and maintenanceof the website.

14 Refer: Vientiane Times, April 30-May 2, 2002, pp14. (The Ministry of Commerce will be opening the first web-site for aMinistry in Lao PDR)



Web Links : • • •.. •• , . . : . • :

The following web-sites contain useful resource material and links to further information related to thisSmall Towns Water Supply and Sanitation Case Study.

Water and Sanitation Programhttp://www.wsp.org/english/links.html

Water and Sanitation Program: Linkshttp://www.wsp.org/english/links.html

Water and Sanitation Program: Small Townshttp://www.wsp.org/english/activities/small-towns.html

World Bank: Water Supply and Sanitationhttp://www.worldbank.org/html/fpd/water/

Methodology for Participatory Assessments: Helping Communities Achieve More Sustainable andEquitable Services

http://www.wsp.org/pdfs/eap_mpa_helping.pdf

Benchmarkinghttp://www.worldbank.org/html/fpd/water/topics/uombench.html

Effective Water Service Provision: Performance Targets for a well-run utilityhttp://rru.worldbank.org/HotTopics.asp

Between Rural and Urban: Towards sustainable management of water supply systems in small townsin Africa: IRC Working Paper, January 2002

http://www.irc.nl/themes/management/smalltowns/index.html

Willing to Pay but Unwilling to Charge: Water and Sanitation Program, June 1999http://www.wsp.org/pdfs/sa__willing.pdf

Independent Water and Sanitation Providers in African Cities: Full Report of a Ten-Country Study,Bernard Collignon and Marc Vezina, Water and Sanitation Program, 2000

http://www.wsp.org/pdfs/af_providers.pdf

Infrastructure Reform, Better Subsidies, and the Information Deficit: Andres G6mez-Lobo, VivienFoster, and Jonathan Halpern: View Point No. 212

http://www.worldbank.org/html/fpd/notes/212/212summary.htmlhttp://www.worldbank.org/html/fpd/notes/212/212gomez.pdf

Better Household Surveys for Better Design of Infrastructure Subsidies: Andres G6mez-I_obo, VivienFoster, and Jonathan Halpern: View Point No. 212

http://www.worldbank.org/html/fpd/notes/213/213summary.htmlhttp://www.worldbank.org/html/fpd/notes/213/213gomez.pdf

Information and Modelling Issues in Designing Water and Sanitation Subsidy Schemeshttp://www.dwaf.gov.za/FreeWater/Scripts/.%5CDocs%5CRef%5Clnformation%20%20modeling%20issues.pdf

WaterAID Framework Documenthttp://www.wateraid.org.uk/research/index.html

Bretton Woods Project Background Documenthttp://www.brettonwoodsproject.org/topic/privatesector/p23waterpriv.html



South African Municipal Workers Union Anti-privatisation Pagehttp://www.cosatu.org.za/samwu/private.htm

Regulating Quality: Bill Baker and Sophie Tremolet: View Point No. 221http://www.worldbank.org/html/fpd/notes/221/221summary.htmlhttp://www.worldbank.org/html/fpd/notes/221/221Baker-10-24.pdf

Utility Reform: Bill Baker and Sophie Tremolet: View Point No. 219http://www.worldbank.org/html/fpd/notes/219/219summary.htmlhttp://www.worldbank.org/html/fpd/notes/219/219summary.html

Lower Costs with Higher Benefits - Water and Sewerage Services for Low Income Households: VivienFoster, Water and Sanitation Program, Vice Ministry of Basic Services, SIDA

http://www.wsp. org/pdfs/and_eapp.pdf

Durban Metro Water: Clarissa Brocklehurst, Water and Sanitation Program, May 2001http://www.wsp.org/pdfs/af_durban.pdf

Link to Sanitation Connection: an online resource on sanitationhttp://www.sanicon.net

Designing Pricing Policy and Tariffs to Help the Poor - Key Principles: Jan Janssens, World Bank

Pricing, Subsidies and the Poor - Demand for Improved Water Services in Central America, Walker,Ordonez, Serrano and Halpern

http://www.wmrc.com/businessbriefing/pdf/infrastructure2001/reference/36.pdf

Tariffs and Subsidies - Twelfth Meeting of the Urban Think Tank (India): Water and SanitationProgram, April 2001.

http://www.wsp.org/pdfs/sa_nagari12.pdf

Serving Poor Consumers in South Asian Cities - Private Sector Participation in Water and Sanitation:Clarissa Brocklehurst and Barbara Evans, Water and Sanitation Program, January 2001.

http://www.wsp. org/pdfs/saj)sp__sa.pdf

The Buenos Aries Concession: Marie-Helene Zerah, Kathleen Graham Harrison, ClarissaBrocklehurst, Water and Sanitation Program, January 2001.

http://www.wsp.org/pdfs/sa_buenos.pdf

Designing Pro-Poor Water and Sewer Concessions: Early Lessons from Bolivia: Kristin Komives,Department of City and Regional Planning, University of North Carolina - Chapel Hill.

http://www.worldbank.org/wbi/infrafin/pdfs/2243propoor.pdf

Who Wins, Who Loses - Assessing the Distribution of Benefits in Water Concessions:Caroline van den Berg, Viewpoint No. 217.

http://www.worldbank.org/html/fpd/notes/217/217summary.htmlhttp://www.worldbank.org/html/fpd/notes/217/217Vande-10-23.pdf


Prepared byWASA, DHUP & URI

with support from WSP-EAP

Report Prepared by the Technical Team

Mrs. Saykham Thammanosouth (URI), Team LeaderDirector of Training and Cooperation Division

Mrs. Phouvong Chanthavong (DHUP)Director of Water Supply Division

Mr. Thongthinh Sithavisouk (URI)Urban Planner

Mr. Soutchay Bouaphayvanh (WASA)Technician, Technical and Appraisal Division

Mr. Chanthasack Bottaphanith (URI)Urban Planner

Mr. Thomas Meadley (WSP-EAP Lao Country Office)Focal person for Small Town Study for WSP-EAPWater Supply and Sanitation Specialist

Dr. Somphone DethoudomMr. Bounleuam SisoulathMr. Keophilavanh AphaylathDr. Nouanta ManiphousayMr. Noupeuak VirabouthDr. Soutsakhone ChanthaphoneMr. Santanu Lahiri

Mr. Rick PollardMs. Caroline van den Berg

Director General, WASADirector, DHUPDirector, URIDirector, NEWDeputy Director General, WASADeputy Director, NEWCountry Team Leader,WB WSP-EAP Lao PDR Country OfficeRegional RWSS Specialist, WB WSP-EAP JakartaRegional Team Leader, WB WSP-EAP Jakarta

For further information please contact:

Water Supply AuthorityMinistry of Communication, Transport, Post and Construction

Lane Xang AvenueVientiane, Lao PDR

Telephone: (856-21)416764,451826Fax: (856-21) 451826

Email: [email protected]• • • • . • : V

Dr. Somphone Dethoudom, Director General§/lr. Noupeuak Virabouth, Deputy Director General

Department of Housing and Urban PlanningMinistry of Communication, Transport, Post and Construction

Lang Xang AvenueVientiane, Lao PDR ,;f"

Telephone: (856-21) 452035Fax: (856-21) 452035

Email: [email protected]\ ••• • • • • • ' ' " • • • •

1 i . . . • • • . . • • • • • • . . . " • • • • • • •

Mr. Bounleuam Sisoulath, DirectorMrs. Phouvong Cfianthavong, Director of Water Supply Division

Urban Research InstituteMinistry of Communication, Transport, Post and Construction

Dong Palane RoadVientiane, Lao PDR

Telephone: (856-21) 412285Fax: (856-21) 416527

Email: [email protected]

Mr. Keophilavanh Aphaylath, DirectorMrs. Saykham Thammanosouth,

Director of Cooperation and Information Division

Water and Sanitation Pr&gram - East Asia and Pacific (W&P-£AP)The World Bank

P.O. Box 345Pathou Xai, Vientiane, Lao PDR

Santanu Lahiri, Country Team Leader Lao PDR (slahiri&worldbank.org)Thomas Meadley, WSS Specialist (meadley(jS)laotel.com )

Documents

CASE STUDY - IRCCase Study: Final Version - April, 2002 BOXES 1. Small Towns Global Definition 2 2. Lao PDR at a glance 2 3. Management Model Development in Lao PDR 4