Attachment J.1 - Statement of Objective Expanding Water and Sanitation.pdf

ATTACHMENT J.1 – STATEMENT OF OBJECTIVES (SOO)

C.1 ACTIVITY TITLE

The activity title is USAID Expanding Water and Sanitation Project.

C.2 PURPOSE

The USAID Expanding Water and Sanitation Project will increase sustainable WASH service delivery in Muchinga, Northern, Western and Southern Provinces. These provinces may be subject to change during the life of implementation. The purpose of this activity is to professionalize WASH services, to promote accountability for reliable and high-quality WASH services, and to enhance the enabling environment for private sector engagement in service delivery. All activities are predicated on enhanced sector governance, for this reason, the Expanding Water and Sanitation project will work with the Government of the Republic of Zambia (GRZ) entities at the national, provincial, and local levels to ensure that the systems, policies, and processes are in place, implemented and enforced to ensure Zambians receive access to high-quality WASH services. Expanding Water and Sanitation will also work with the private sector to leverage reach, innovation, and long-term commercial interests to provide lasting services. By doing so, USAID will greatly contribute to building the capacity of Zambian WASH service providers.

C.3 BACKGROUND

Over six million Zambians lack access to safe water, and 11 million remain without basic sanitation1 (See Attachment J.2). Decades of underinvestment have translated into poor infrastructure unable to accommodate population growth. Where infrastructure exists, investments in essential preventative maintenance are lacking. The Revised National Rural Water Supply and Sanitation Program 2016-2030 notes an annual failure rate of 2.5% for water supply systems.

Institutional arrangements for service provision leave large gaps in WASH coverage. In Zambia, Commercial Utilities (CUs) — joint ventures between local authorities and a mix of the private sector and parastatal institutions — are mandated WASH service providers. However, in under-served peri-urban and rural areas, CUs lack incentives and resources to expand coverage. In these areas, water systems are managed and operated following the Community- Based Management (CBM) model, which has not resulted in sustainable Operation and Maintenance (O&M) of WASH facilities in rural communities. Sustainable O&M requires professionalized services, including ongoing repair work and supply chain management. In partnership with communities, the private sector offers promise in creating sustainable systems for WASH services. Though water sector policies recognize the private sector as an essential stakeholder, private sector participation is constrained by inadequate policy enforcement, poor understanding of policies, and market failure.

1 WHO/UNICEF Joint Monitoring Program for Water Supply, Sanitation and Hygiene, 2017

WASH governance lies at the heart of these challenges. Under good governance, sector organizations, institutions, and people are organized, trained, motivated, and accountable to keep water and sanitation systems running and ensure the effective management of water resources for the benefit of all individuals, households, and communities. Communities have responsibility for decisions that affect them, especially in terms of how budgets are utilized, the quality of services provided, rates for services received, and activities occurring in the watershed that may affect water quality. Citizen engagement also supports the inclusion of marginalized and vulnerable populations, particularly women and youths, while supporting community ownership and the likelihood of service sustainability.

C.4 ACTIVITY OBJECTIVE

The overall objective of this activity is to have a professional WASH sector to maintain and expand sustainable WASH services in Muchinga, Northern, Western, and Southern Provinces, focusing on peri-urban, rural growth centers2 and rural areas.

Objective 1: Institutionalize market-based WASH service delivery, financially sustainable and inclusive management models for water and sanitation facilities (hand pump boreholes, small piped water schemes and latrines).

The Offeror is expected to articulate how it will improve and institutionalize market-based, professionalized, financially sustainable, adaptive, and inclusive management models of water supply and sanitation services, while enhancing construction quality of small-scale water systems (new and rehabilitated hand pump boreholes, and small piped water schemes). Further, the Offeror is expected to articulate how it will facilitate access for the poor to adequate sanitation facilities. Failure rates for WASH facilities remain very high.

Attaining universal service coverage will therefore require not only investments in new services but more importantly addressing the lack of sustainability of service.

Objective 2: Increased accountability of WASH service providers, policy-makers and civic leaders for improved and sustainable WASH service delivery.

The Offeror will articulate how it will improve the capacity of citizens to hold WASH service providers, policymakers and civic leaders accountable for quality service delivery at district and sub-district levels and improved investments at the national level.

Objective 3: Supported policy and regulatory reforms to strengthen enabling environment for sustainable service delivery.

The Offeror will articulate how it will strengthen the policy and regulatory frameworks to remove barriers to private sector investments and participation in the WASH sector.

2 Wekwete, 1988, defined growth centers as service centers (rural or urban) which have a potential for further development and hence need to be supported by further public and private sector investment.

Further, the Offeror is expected to articulate the necessary policy and legislative improvements to allow for the commodification of WASH services.

Objective 4: Increased private sector participation in the delivery, operation and maintenance of WASH services delivery.

The Offeror to articulate how they will enhance the participation of the private sector in WASH service provision and improving service reliability. The Offeror will also propose categories of private service providers to target.

C.5 SUCCESS

Success for Expanding Water and Sanitation will be measured by improved sustainability of services in the target districts as a result of increased investments and participation of private enterprises in the delivery and management of WASH services and increased access to WASH services. At the end of the Expanding Water and Sanitation project, the number of private sector entities participating in the WASH sector would have increased, and the enterprises growing through increased transactions.

The Offeror must propose a minimum number of private enterprises to work with to meet the following targets by the end of the activity:

● Increased access to safe water by 3 – 5 percentage points between baseline and midline across the target districts

● Increased access to safe water by 15 percentage points between baseline and endline across target districts.

● Improved functionality rate of water supply facilities by 5 - 10 percentage points between baseline and midline across the target districts

● Improved functionality rate of water supply facilities by 25 percentage points between baseline and endline across target districts.

● Improved performance-based sustainability assessments between baseline and endline in at least 125 rural water service providers or community-based water committees.

● Increased access to sanitation by 5-10 percentage points, including for the bottom wealth quintile, between baseline and midline across the target districts

● Increased access to sanitation by 25 percentage points, including for the bottom wealth quintile, between baseline and endline across target districts.

● Increased private sector participation in WASH service delivery by 30 percentage points between baseline and endline across target districts.

Activity performance indicators

Results Indicator

Increased access to safe water by 3 - 5 percentage points across

HL.8.1-1 Number of people gaining access to basic drinking water services as a result of USG assistance the target districts between baseline and midline

Increased access to safe water by 15 percentage points across target districts between baseline and endline

HL.8.1-2 Number of people gaining access to safely managed drinking water services as a result of USG assistance

HL.8.1-4 Number of institutional settings gaining access to basic drinking water services as a result of USG assistance

Improved the functionality rate of water supply facilities by 5 - 10 percentage points beyween baseline and midline across the target districts

Improved the functionality rate of water supply facilities by 25 percentage points between baseline and endline across target districts.

HL.8.1-3 Number of people receiving improved service quality from existing basic drinking or safely managed water service as a result of USG assistance

HL.8.3-3 Number of water and sanitation sector institutions strengthened to manage water resources or improve water supply and sanitation services as a result of USG assistance

HL.8.4-1 Value of new funding mobilized to the water and sanitation sectors as a result of USG assistance

Increased access to sanitation by 5 – 10 percentage points, including for the bottom wealth quintile between baseline and midline across target districts.

Increased access to sanitation by 25 percentage points, including for the bottom wealth quintile, between baseline and endline per district.

HL.8.2-1 Number of communities verified as open defecation free (ODF) as a result of USG assistance

HL.8.2-2 Number of people gaining access to a basic sanitation service as a result of USG assistance

HL.8.2-4 Number of basic sanitation facilities provided in institutional settings as a result of USG assistance

Improved performance-based sustainability assessments in at least 125 rural water service providers or community-based water committees.

CBLD-9 Percent of USG-assisted organizations with improved performance

Increased private sector participation in WASH service delivery by 30 percentage points between baseline and endline across the target districts.

Please note that these indicators are simply illustrative; offeror can propose other relevant indicators.

C.6 SCOPE

This activity is expected to provide targeted, high-impact WASH interventions in the targeted districts. Given the different situations between access to safe water and sanitation between provinces and districts, it is expected that service delivery efforts will be differentiated based on the need for the two sub-sectors. In a district where access to safe water is higher than the national average, but sanitation access lags the national average significantly, interventions are expected to focus more on sanitation and vice versa (See Attachment J.3). Expanding Water and Sanitation is expected to work in a minimum of 12 districts in four provinces. The districts are subject to change during the implementation of the activity. Below is a list of target districts:

# Province District

1 Muchinga Chinsali

2 Muchinga Nakonde

3 Muchinga Mpika

4 Northern Lunte

5 Northern Mungwi

6 Southern Kazungula

7 Southern Kalomo

8 Western Nalolo

9 Western Kalabo

10 Western Mongu

11 Western Kaoma

12 Western Sesheke

C. 7 GRANTS UNDER CONTRACT

It is anticipated that the Contractor will make grants to Zambian organizations in accordance with ADS 302.3.4.8 (Grants Under Contract). The purpose of the grants is to provide the Contractor with a flexible means, where necessary and/or useful, to encourage participation and/or collaboration of local entities toward the achievement of expected results. Use of the GUCs procedure is subject to specific approval by USAID and must meet certain conditions, not all of which are summarized herein. The Contractor shall be required by USAID to develop a grants procedure manual, approved by the USAID Contracting Officer, for the administration of GUCs. USAID must be significantly involved in establishing selection criteria for GUCs and must approve the actual selection of grant recipients. In addition, USAID will retain the right to terminate grants unilaterally.

The Contractor will not be judged according to how many grants are issued in a given period.

The Contractor will award grants where appropriate, in combination with technical assistance, training, and/or other Contractor inputs toward the achievement of specific objectives that respond to expressed local needs and contribute to the achievement of stated contract results.

The Contractor is encouraged to leverage funding from other non‐ USG resources, e.g. as a “matching grant” for an NGO or private sector activity.

C.8 KEY STAKEHOLDERS

Based on the above background, USAID/Zambia consulted with key stakeholders, including the private sector, government, regulators, and non-governmental organizations (NGOs) and donors working in the industry.

The following list provides key stakeholders and their envisioned respective roles and responsibilities within the USAID’s Expanding Water and Sanitation Project:

Stakeholder Role

USAID/Zambia Oversight of the performance of the Contract.

Department of Water Supply and Sanitation Services in

MWDSEP

Ensure buy-in and alignment to government policies and priorities during activity planning and implementation.

Provide leadership for policy, legislative and regulatory reforms to allow greater participation of the private sector in WASH service delivery.

Local Authorities Ensure buy-in and alignment to local service delivery priorities during activity planning and implementation.

Provide leadership for regulating private businesses involved in WASH service delivery in their respective jurisdictions and supporting direct service delivery.

Private Sector Partner with USAID and GRZ to identify and pursue market opportunities, including financing, that address shared priorities and objectives by supporting financially sustainable WASH services delivery that meets the needs of Zambians.

CUs Collaborate in the delivery of WASH services.

Department of Information and Policy in MWDSEP

Involved and consulted to ensure alignment to GRZ policies and priorities.

Cooperating Partners such as African Development Bank, DFID, Germany Development Cooperation, Japanese International Development Cooperation, KfW, UNICEF, World Bank, etc.

Align to their existing or planned activities and/or changes to activity to ensure resource use effectiveness and impact for WASH services.

Water Resources Management Authority (WARMA)

Issuance of water permits for groundwater and surface water developments. WARMA is expected to register and regulate some private sector WASH entities such as drillers and hydrogeologists.

WASH NGOs Align to their existing or planned activities and/or changes to activity to ensure resource use effectiveness and impact for WASH services. Potential subcontractors to implement priority interventions in selected districts. They could serve as important institutions in promoting accountability in the WASH sector.

Communities Target recipients for the WASH services. They are customers for commercial WASH services and are primary rights holders, who will hold service providers and duty bearers accountable.

Traditional leaders To be involved in activity planning and implementation to ensure alignment with local priorities, practices, and norms.

NWASCO Accredit products, regulate quality, and ensure customer protection, particularly for sanitation; set tariffs for WASH services; monitor and regulate the operations of private entities in WASH. Support policy and legal reforms necessary for greater commercialization of WASH services.

Academia Support WASH research efforts aimed at documenting lessons, successes and failures and factors that account for the performance of the sector. Provide professional training to meet the professional requirements of the WASH sector.

C.9 LINKAGES TO MISSION OBJECTIVES AND OTHER USG PROGRAMS

The USAID/Zambia’s 2019-2024 CDCS3 states that “USAID will Partner with the Zambian Government, Civil Society and the Private Sector to Advance the Country’s Self-Reliance through more Effective Development Choices and Governance, Enterprise-Driven Economic Growth, and Increased Resilience among its Most Vulnerable Citizens.” Over the last 50 years, USAID has supported and implemented assistance programs that target economic growth, health, education, democracy and governance, and humanitarian assistance.

3 USAID/Zambia Country Development Cooperation Strategy, 2019 - 2024 https://www.usaid.gov/documents/1860/country-development-cooperation-strategy-cdcs-2019-2024-0 https://www.usaid.gov/documents/1860/country-development-cooperation-strategy-cdcs-2019-2024-0

The Expanding Water and Sanitation project contributes to the achievement of USAID/Zambia CDCS Development Objective 3 (Capacity of Zambia’s Government, Citizens and Private Sector Increased to Improve Health Outcomes and Meet Critical Needs of Vulnerable Populations) and Intermediate Result 3.1 (Utilization of Quality Health, Water, and Sanitation Services and Prevention Practices Increased) and 3.2 (Health, Water, and Sanitation Systems' Effectiveness, Capacity and Sustainability Strengthened).

Many USG programs have invested or are currently investing in Zambia to improve health outcomes and human wellbeing. The Offeror will be expected to build on past programs and leverage existing programs, to the extent feasible, to optimize the impact of Expanding Water and Sanitation. The Offeror will also coordinate, where appropriate, with relevant USAID WASH, health, education, private sector, and non-WASH programs and other donor-supported initiatives that complement Expanding Water and Sanitation objectives. Activities such as Scaling Up Nutrition Technical Assistance, Scaling Up Nutrition Learning and Evaluation, EduFinance and Local Impact Governance would be beneficial to Expanding Water and Sanitation. For maternal, newborn and child health (MCHN), there is a clear link between safe water, sanitation and hygiene, and optimal health outcomes for women and children. For instance, simple hygiene practices such as handwashing during antenatal care, labor and delivery can reduce the risk of infections and death for newborns and mothers by up to 25%. Improved community access to safe drinking water, sanitation and hygiene also lead to reduced intestinal infections and diarrheal episodes in mothers and children and directly improves child growth and development. Therefore, Expanding Water and Sanitation leveraging efforts with health activities would greatly enhance the outcomes for MCHN. Activities include USAID Community Health Assistants, Community Radio Program, Scaling Up Early Childhood Development in Zambia, Zambia Accessible Health Markets and Family Health and Nutrition, with potential collaboration in Muchinga, Southern and Western provinces.

C.10 ASSUMPTIONS

● The Government of the Republic of Zambia (MWDSEP and NWASCO) will be committed to reform efforts to move the WASH sector towards full commercialization.

● The WASH regulator and service providers, including CUs, are committed to adjust tariffs in terms of both cost recovery and affordability.

● The WASH sector in Zambia will scale up successful models from Expanding Water and

Sanitation.

● There will be effective civil society engagement, and accountability mechanisms to advocate for sector reforms and improved sector governance.

● The civic space for citizen engagement, such as free media, freedom of speech, and freedom of assembly will be respected.

● Zambia’s macroeconomic conditions will allow for improved domestic resource mobilization and private investment.

C.11 THE DEVELOPMENT HYPOTHESIS

The development hypothesis for this activity holds that if access to WASH services is increased, adaptive management models for sustainable WASH services delivery are implemented, and if the WASH tariff setting regime is profit-oriented to attract private sector participation and investments, and if private sector investments in WASH service delivery is enhanced, and if key WASH sector institutions’ capacities are strengthened, and if citizens are empowered to demand better service delivery and accountability, then WASH service delivery will improve and become sustainable.

C.12 ENVIRONMENTAL COMPLIANCE

The Foreign Assistance Act of 1961, as amended, Section 117 requires that the impact of USAID’s activities on the environment is considered and that USAID include environmental sustainability as a central consideration in designing and carrying out its development programs.

ADS Parts 201.3.4.5 and 204 (http://www.usaid.gov/policy/ADS/200/), in part, require that the potential environmental impacts of USAID-financed activities are identified prior to a final decision to proceed, and that appropriate environmental safeguards are adopted for all activities.

The Contractor must comply with host country environmental regulations unless otherwise directed in writing by USAID. In case of conflict between the host country and USAID regulations, the latter shall govern.

None of the activities will be implemented prior to receiving written USAID approval of environmental documentation amendments. All ongoing activities found to be outside the scope of approved environmental documentation will be halted until an amendment is submitted and written approval is received from USAID.

In order to identify any potential negative impacts and ensure compliance with USAID environmental procedures, the Contractor must develop procedures to identify, assess, and avoid the environmental impacts of proposed activities and develop mechanisms to address the relevant assessment requirements.

USAID anticipates that environmental compliance and achieving optimal development outcomes for the proposed activities will require environmental management expertise.

The Offeror must therefore include as part of their response, their approach to achieving environmental compliance and management, to include:

a. Their approach to developing and implementing an Environmental Monitoring and Mitigation Plan and a Water Quality Assurance Plan

b. Their approach to providing necessary environmental management expertise, including examples of the experience of environmental management of similar activities.

c. An illustrative budget for implementing the environmental compliance activities. For the purposes of this activity, illustrative costs for environmental compliance implementation and monitoring in their cost proposal.

The Threshold Decision level has been determined to be Negative with Conditions.

Therefore, the Contractor is subject to the terms and conditions for Environmental Compliance as defined in Section H. 19

C.13 YOUTH INTEGRATION

This activity is rooted in a Positive Youth Development (PYD) approach, which is based on the belief that “given guidance and support from caring adults, all youth (ages 10-29) can grow up healthy and productive, making positive contributions to their families, schools, and communities.” PYD programs intentionally focus on developing competencies and behaviors that support pro-social attitudes, a clear and positive personal identity, and positive belief in the future. PYD programs encourage youth leadership and experiential learning, as well as adult approachability and champions. Services and opportunities are designed to support young people in developing a sense of competence, usefulness, belonging, and empowerment. For many, the PYD approach is a paradigm shift in the way that they think about youth, education, employment, leadership, health, and protection of the environment and its resources. The Offeror must work with the private sector to ensure the activity will include concrete and practical approaches that will not only address the challenges that youth face to accomplish the activity results but will also involve and support young people in the decision-making, management and leadership of this activity. The Activity youth integration must at a minimum include an emphasis on the involvement of the youth in the operation and maintenance of WASH facilities.

C.14 SELF-RELIANCE AND SUSTAINABILITY

Expanding Water and Sanitation will function as an integral part of the Zambian WASH system to deliver sustainable water and sanitation services through meaningful partnerships between the government, the private sector and communities. The activity moves beyond the simple measurement of infrastructure investments to create lasting solutions that maintain and enhance water and sanitation services for rural, peri-urban and rural growth center communities. Expanding Water and Sanitation will adopt a water sector systems approach – from community interventions to wider service delivery, and within the enabling environment – to addressing and improving the sustainability of water and sanitation services through enhanced regulatory and institutional capacity of private service providers, civil society and government. Within communities, Expanding Water and Sanitation will design services that meet users’ demands and interests and design inclusive mechanisms for supported and supervised community-managed maintenance and accountability of water and sanitation services in partnership with private water and sanitation providers. The activity’s focus on improving the enabling environment for greater private sector investment in WASH services will create innovative, affordable and sustainable models for the construction, operation and maintenance of water and sanitation services.

C.15 GENDER EQUALITY AND WOMEN’S EMPOWERMENT

USAID seeks to ensure that “women are empowered to effectively advocate for their perspectives and priorities, and that they can fully engage as managers, partners and entrepreneurs in water and sanitation activities and enterprises.”4 Women are often the managers of domestic water resources as well as promoters of home and community-based sanitation activities. However, women’s views and voices are frequently excluded from community-based decision-making bodies despite their accumulated knowledge about resources and insights into common water and sanitation challenges. The Offeror is expected to demonstrate intentional consideration of gender inequities and opportunities within the WASH system and how the proposed Expanding Water and Sanitation strategy will translate into (1) improved WASH outcomes through, for example, inclusive and effective distribution and management of water supply and sanitation services and (2) greater gender equality and women’s empowerment through increased participation and voice in decision-making and management. The Offeror must incorporate gender equality considerations into each component of this activity, including the sustainable delivery of water and sanitation services and accountability mechanisms for monitoring WASH service delivery. The Offeror will reflect gender within the Activity Monitoring, Evaluation and Learning Plan (AMELP) by providing sex-and age-disaggregated data and closely monitoring gender outcomes related to, for example, the number of females and males reached with improved services.

C.16 CLIMATE CHANGE INTEGRATION

Climate change is a cross-cutting issue that can have significant impacts on regional, national, and local development efforts in all sectors. In recognition of that fact, Executive Order (EO) 13677 requires all US agencies to factor climate change into their foreign assistance planning and manage the associated climate risks. In addition, a country’s development trajectory can significantly influence its emissions of greenhouse gases (GHGs) that cause climate change.

Climate Risk Management (CRM) is required for all USAID-supported activities, with limited exceptions. CRM improves the effectiveness and sustainability of USAID’s efforts in supporting countries in their journey to self-reliance. Climate risk has the potential for negative consequences on activity objectives and/or outcomes due to changing climatic conditions. The focus of climate risk management at USAID is on the risk to USAID development programming.

The CRM process may identify potential development opportunities associated with current and expected climatic and meteorological changes, including chances to achieve additional development objectives (including increasing climate resilience and reducing greenhouse gas emissions).

The Offeror must describe their approach to climate risk management, take advantage of opportunities to reduce greenhouse gas emissions, demonstrate their understanding of climate risk management as it relates to this activity. In addition, given the challenges posed by climate change, the Offeror will need to articulate practices and interventions that can enable climate resilient approaches to succeed and support the sustainability of the investments made under this activity (See Attachment J.4).

C.17 SCIENCE, TECHNOLOGY, INNOVATION AND PARTNERSHIP (STIP)

4 USAID Water and Development Strategy 2013-2018.

USAID/Zambia is one of 20 Missions recognized as a “Lead Mission” in applying Science, Technology, Innovation and Partnership (STIP) to enhance its development impact. The Offeror must describe their approach and use of cost-effective methods to reach many beneficiaries and accelerate the timeline for obtaining results, and/or bringing ground-breaking innovations to scale.

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