DRC REQUEST FOR INFORMATION (RFI) No. 72066020R000012 signed.pdf

REQUEST FOR INFORMATION (RFI)

SANITATION ACTIVITY

RFI No. 72066020R00012

This is a Request for Information (RFI) Notice requesting comments to the draft Program Description (PD) or Scope of Work (SOW) for a new rural/peri-urban Sanitation Activity in the Democratic Republic of the Congo (DRC). The purpose of this RFI is to obtain feedback from stakeholders prior to the U.S. Agency for International Development (USAID) in DRC potentially issuing a solicitation. This RFI is not a Request for Application (RFA)/Request for Proposal (RFP). Therefore, USAID/DRC is not accepting applications at this time; only information requested in this RFI will be reviewed.

Responses/comments received from this RFI may be used for planning purposes. Please submit your feedback regarding the expected results outlined in the draft concept PD/SOW in Addendum B below, potential design and/or implementation challenges you envisage, and context specific realities that USAID must consider. Interested parties should provide comments addressing the issues and considerations discussed in Addendum B through the comments and feedback form by July 30, 2020 5 PM Eastern Time. Responses in English and/or French are allowed. Link for comments and feedback form:

https://docs.google.com/spreadsheets/d/1aklJZdjzA7cIRQyFGFOHCqiQeVvfwgMt0cSmjdHtx- M/edit?usp=sharing

USAID will hold a virtual Pre-Solicitation Conference via AID Connect or Google Meet on July 23, 2020 from 8:00 AM to 12:00 PM Eastern Time.

The purpose of the conference will be to provide an opportunity for interested parties to discuss their respective comments and provide suggestions for USAID to consider as it finalizes the Activity design. We have also identified some specific technical areas where we seek participant input and sharing of lessons learned (see agenda in Addendum A below). We hope that attendees will come prepared and look forward to a dynamic discussion, not only with USAID, but also among the attendees. The anticipation is that you will be placed in groups according to your areas of interest for the July 23, 2020 discussion.

Organizations may send up to two (2) participants to the virtual conference. USAID will approve additional participants if the technology platform permits it.

To facilitate better planning, please RSVP your attendance by filling in the registration form no later than July 15, 2020 5 PM Eastern Time, indicating your participation. Link for registration form:

https://docs.google.com/spreadsheets/d/13cWn8FW1ZdkYAhWzebgSV9Vg-_- DwEx9CmfAVw4o4JE/edit?usp=sharing

We will send you the remote connection information once we receive the RSVP.

https://docs.google.com/spreadsheets/d/1aklJZdjzA7cIRQyFGFOHCqiQeVvfwgMt0cSmjdHtx-M/edit?usp=sharing https://docs.google.com/spreadsheets/d/1aklJZdjzA7cIRQyFGFOHCqiQeVvfwgMt0cSmjdHtx-M/edit?usp=sharing https://docs.google.com/spreadsheets/d/13cWn8FW1ZdkYAhWzebgSV9Vg-_-DwEx9CmfAVw4o4JE/edit?usp=sharing https://docs.google.com/spreadsheets/d/13cWn8FW1ZdkYAhWzebgSV9Vg-_-DwEx9CmfAVw4o4JE/edit?usp=sharing

In addition, we encourage attendees to submit their questions in advance by filling the google sheet no later than July 15, 2020 5 PM Eastern Time to help us prepare. Link for questions form:

https://docs.google.com/document/d/1FXyBzKCH8CHBjn--V_iSA0OWEDD5lZJaKOD1VU2-hqk/edit?usp=sharing

USAID will not be taking additional questions during the call on July 23, 2020 to ensure that the teleconference is completed in an efficient and timely manner. For additional questions (if any), contact the Contracting and Agreement officer, Andre-Guy Soh at asoh@usaid.gov with a copy to Sandy Ngilambi at sngilambi@usaid.gov and kinshasaproposals@usaid.gov. Questions (if any) in English and/or French are allowed. The subject of each email should read as follows:

Request for Information No. 72066020R00012 - Sanitation Activity

USAID will not acknowledge receipt of comments. You will receive only an electronic E-mail acknowledging receipt of your question but will not receive individualized feedback. No basis for claims against the U.S. Government shall arise as a result of a response to this request for information or from the U.S. Government's use of such information. Specific questions about this RFI should be directed only to the email addresses identified above.

This RFI in no way obligates USAID to release an RFP or RFA for the proposed activity. USAID is not responsible for any costs incurred in responding to this RFI.

Thank you for your interest in USAID/DRC programs and we look forward to your comments.

Sincerely

Andre-Guy Soh Contracting/Agreement Officer Democratic Republic of the Congo https://docs.google.com/document/d/1FXyBzKCH8CHBjn--V_iSA0OWEDD5lZJaKOD1VU2-hqk/edit?usp=sharing https://docs.google.com/document/d/1FXyBzKCH8CHBjn--V_iSA0OWEDD5lZJaKOD1VU2-hqk/edit?usp=sharing

ADDENDUM A– PROVISIONAL AGENDA:

1. USAID overview presentation on the RFI

2. Audience Q&A and comments

3. Provide some FAQs about the process

4. Audience sharing on the following High-level results:

- Result I : Private sector-led supply of quality sanitation and hygiene services and products increased; Wholesaler, Retailer and Household access to financing for investing in sanitation products and services, Financial viability of a range of sanitation products (different latrine slabs and sinks mainly) in the retail market (locally produced, imported), whether as standalone business or as addition to existing product line (water services providers, hardware store, etc.)", and in different contexts - peri-urban, newly urbanizing, district center, rural market town… Sanitation business viability without existing water business

- Result II: Household demand for quality sanitation and hygiene services and products increased; Promoting correct and consistent use of latrines and other sanitation behaviors, etc.

- Result III: Enabling environment for strengthened sanitation markets systems;

Domestic mobilization of public resources for sanitation, etc.

Addendum B – PROGRAM DESCRIPTION or SCOPE of WORK

A.1 BACKGROUND

(a) Context for Sanitation services delivery in DRC

During the past decade, the Democratic Republic of the Congo (DRC) government has made efforts to improve sanitation in rural areas, mainly by providing subsidies for toilet construction alongside information, education and communication activities through the Village and Ecole Assainis (VEA) programme led by the Ministry of Health (MoH) with support from UNICEF and others. The VEA program has been instrumental in increasing the capacity to generate demand for services, however there has been little progress on sanitation marketing and on improving the supply chain.

Access to improved, non-shared sanitation facilities is low and nearly equivalent in both urban and rural areas and gains at the national level have come from increases in rural access. The lack of a functional service chain for the safe disposal of fecal matter hampers the sustainability of sanitation services, current services are composed predominantly of on-site sanitation to safely contain fecal matter. Open defecation is more common in rural areas, although at less than 20% of the rural population, the practice is relatively limited in DRC compared to other countries in the region. This presents an opportunity to support household investment to move up the sanitation ladder to higher levels of sanitation service. Lack of access to sanitation services poses a significant development challenge, given sanitation’s links to other sectors, including gender, health, education, economic development, and environment/water quality. It is estimated that DRC loses US$ 208 million per year due to poor sanitation. This amount is equivalent to US$ 3 per person per year in the DRC, or 1.6% of GDP1. The cost of poor sanitation is borne disproportionately by the poorest, because they have less access to sanitation so are more likely to suffer the effects, and the costs incurred due to poor access will be a larger proportion of their income.

Historically there has been a low prioritization of sanitation in comparison to other subsectors in the Democratic Republic of the Congo (DRC). The Sustainable Development Goals (SDGs) have triggered the challenge of achieving basic WASH services for the unserved while bringing better services to those already with basic services. Achieving Sustainable Development Goal 6 will require the access to adequate financing and a reliable, functional sanitation service chain for the safe disposal of fecal matter. Access to adequate financing as well as establishment of service chains are critical barriers to improving access to sanitation. It is also clear that additional financing must be accompanied by innovative business models and incentives to improve and sustain quality and access to sanitation services.

In response to the 2030 Agenda, the Government of DRC (GoDRC) recently developed the sector framework programme and costed WASH plan, the Programme National Eau–Hygiene–

1 World Bank Economics of Sanitation study. 2015. https://www.wsp.org/sites/wsp.org/files/publications/WSP-ESI-DRC-french-brochure.pdf.pdf https://www.wsp.org/sites/wsp.org/files/publications/WSP-ESI-DRC-french-brochure.pdf.pdf https://www.wsp.org/sites/wsp.org/files/publications/WSP-ESI-DRC-french-brochure.pdf.pdf

Assainissement (PNEHA) 2. The PNEHA seeks to unify the sector and guide actions from 2020 to 2030. Described by the government as the only transversal and federating framework for the sector, in which all the actions concerning water, hygiene and sanitation are articulated, the PNEHA outlines the policy and regulatory framework in the delivery of water and sanitation services and the roles and responsibilities of specific actors. However, weak institutional arrangements between the numerous ministries charged with different aspects of sanitation and systematic low investments have severely limited the operationalization of this plan. The Water law and policy framework has progressively been developed to address different issues in the water sector. Yet, there is no comprehensive sanitation legislation seeking to either address sanitation comprehensively or give an overall direction to the sector.

Sustainable financing of the sector is a major stumbling block in the rollout of PNEHA, more resources will have to be mobilized for provincial sanitation-programs directed at rural and peri-urban communities. Achieving a higher level of service-called here “safely managed” water and sanitation services will require additional financing on the order of three times current spending3, innovative governance and institutional arrangements to improve and sustain quality and coverage of sanitation service provision. Under the “maximum possible” scenario, the PNEHA foresees that the investments needed for Sanitation could rise to about USD 112,312,500/yr from 2020 onward.

According to the USAID Private Sector Engagement (PSE) policy4 , innovative finance attempts to achieve the following: “[Innovative finance] deploys proven approaches to new markets (new customers and segments), introduces novel approaches to established problems (new asset types), or attracts new participants to the market (such as commercially-oriented investors). This broad definition includes a variety of financial tools, including securities and derivatives (e.g., grants, guarantees, loans, bonds, and notes); results, output- or performance-based mechanisms (e.g., advance market commitments, challenge funds, and development-impact bonds); voluntary contributions (e.g., donations made as part of consumer purchases); and compulsory charges (e.g. taxes).”

USAID and the wider development community recognize that financing for sanitation services is scarce. While financing for sanitation services is scarce, the market for sanitation service delivery is very immature in DRC, both on the part of consumers and suppliers.

Market-driven solutions with smart subsidies will help households reap the benefits of hygienic sanitation, while professionalizing the sector through engaging private sector marketing skills and financing. The private sector will be incentivized to offer a range of sanitation products that meet consumer needs and budgets. Both public or private service providers require access to technical assistance, finance, and training to increase their capacity and incentives to provide quality services.

2 To learn more about the PNEHA see: https://www.dropbox.com/s/ulmxim178if1dsm/Embedded%20document%201%20- %20PNEHA%20full%20document%281%29.pdf?dl=0 3 World Bank. 2016. The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene, hyperlink: https://www.wsp.org/sites/wsp/files/publications/K8543.pdf 4 Found here: https://www.usaid.gov/work-usaid/private-sector-engagement/policy https://www.dropbox.com/s/ulmxim178if1dsm/Embedded%20document%201%20-%20PNEHA%20full%20document%281%29.pdf?dl=0 https://www.dropbox.com/s/ulmxim178if1dsm/Embedded%20document%201%20-%20PNEHA%20full%20document%281%29.pdf?dl=0 https://www.wsp.org/sites/wsp/files/publications/K8543.pdf

USAID anticipates that the supply side of the Sanitation activity would address the product gap in low-cost rural sanitation products, and mutually reinforcing supply and demand-side activities would improve marketing and consumer knowledge of product options at different price points, link or facilitate access to financing for household investment in sanitation, consolidate demand to create critical mass and financial viability for the service chain, and professionalize product and service providers to improve the reliability and quality of services. The sanitation framework presented in Figure 1 below, lists institutional and private stakeholders playing a role (enabling or disabling) in the sanitation market. The activity is also expected to identify key bottlenecks and constraints facing different players and help resolve some of these challenges.

Figure 1: Range of stakeholders involved in the supply of sanitation (facilities & services)5

5 USAID / HIP, 2010, Sanitation Marketing for Managers: Guidance and Tools for Program Development, USAID Hygiene Improvement Project, Washington

(b) Linkages to Foreign Policy Goals and USAID Initiatives

The Sanitation activity aligns with USAID policies and strategies, as well as broader U.S. foreign policy goals. USAID, and the U.S. Government writ large, recognizes that transformational change in the DRC will require long-term investment and focus. USAID’s 20-year vision for DRC is of a country where the Congolese take charge of their future to manage and sustain growth with their own human, natural, and financial resources; this activity will work with the Congolese to achieve service delivery. USAID’s overall goal in the DRC, as outlined in its Country Development Cooperation Strategy (CDCS) for 2015–2021, is to support the country’s long-term transition to more effective and empowering development, targeting specific institutions, geographic regions, and technical sectors. However, the mission is also developing its new CDCS for 2021 to 2026. This activity and resulting co-creation outcomes will directly help integrate WASH across multiple development objectives envisioned in the new strategy.

In the water and sanitation sectors, self-reliance is the ability of countries’ systems at different scales to plan, finance and implement sustainable solutions to deliver water and sanitation services that improve health, livelihoods, educational opportunities and dignity among citizens.

Increasing partner countries’ commitment and capacity in the sector are critical to accelerating their journeys along the path to self-sufficiency. Resilient households, communities and systems are essential for the DRC’s journey to self-reliance (JSR).

In support of the USAID’s Private Sector Engagement (PSE) Policy, the Activity will be expanding market-based approaches and already demonstrated financing models to increase the demand for improved sanitation services, strengthen the supply chain for sanitation and hygiene products and services and the enabling environment by building the capacity of existing services providers. This will result in increased access to services, improved health, nutrition and welfare, and more sustainable sanitation systems.

DRC is a high priority country under the U.S Government’s Global Water Strategy and USAID’s Water and Development Plan. USAID's Water and Development Plan has four interrelated Development Results (DRs): DR 1, strengthen sector governance and financing; DR 2, increase sustainable access to and use of sanitation and the practice of key hygiene behaviors; DR 3, increase sustainable access to safe drinking water; and DR 4, improve the management of water resources. Water directive funds must be linked to the achievement of DR 2 and DR 3.

This Activity supports two of the four (4) Development Results (DR) of USAID’s Plan: DR 1:

strengthen sector governance and financing and DR 2: Increase Sustainable Access and Use of Sanitation and the Practice of Key Hygiene Behaviors.

This Activity will also support the DRC’s commitments to the Sustainable Development Goals, specifically Goal 6: ensure availability and sustainable management of water and sanitation for all. The activity will accomplish this result through three specific objectives that together will contribute to achieving the goal and the transformative outcomes.

1) Private sector-led supply of quality sanitation and hygiene services and products increased

2) Household demand for quality sanitation and hygiene services and products increased

3) Enabling environment for strengthened sanitation markets (financing mechanisms along supply chain for wholesale/retail/consumer, data collection/management/use by government and private sector, link to governance/regulations)

To achieve its goal and objectives, the activity has the following operational principles which are illustrative and not exhaustive and that must be applied by all partners:

● Leveraging existing USAID tools for engaging with the private sector, such as Global Development Alliance (GDA)6 and Development Credit Authority (DCA).7

● Partnerships and synergies with other private sector stakeholders, including investors, companies: Approaches should prioritize alignment with private sector core business functions and not corporate social responsibility goals, and consider how to incentivize private sector entities to enter the market and leverage additional funds and expertise needed.

● Most development sectors are enabled by strong governance at both local and national levels. Experience demonstrates that successful development projects accurately identify critical governance factors and either seek to improve them directly, or account for them in designing long- term sustainable solutions.

● Partnerships and synergies with other relevant USAID and donor (nutrition, economic growth, PDEC, environment, agriculture, etc.) activities.8

● Proposed approach should address the main bottleneck to sustainability of sanitation services and investments.

● Systems strengthening - Analyze and seek to strengthen formal and informal systems that build resilience and improve well-being. Market-based, cross-sectoral coordination and integration are necessary for long-term development solutions.

● Building Self-reliance through strategic collaboration with partners9 includes active collaboration among USAID implementers, host country governments, community leaders, the private sector, civil society, USG agencies and partners, international agencies, and donors to collectively vulnerable populations.

● The private sector has unique skills and capacities that synergize with USAID, particularly where values overlap. The public and private sectors are both crucial to ensuring long-term success of the activity.

● Local capacity and trust - Competitive applications will show a plan to fill the capacity gap and help strengthen and build the capacity of local organizations. They will also

6 To learn more about USAID GDAs, see: https://www.usaid.gov/gda/ 7 For further information on DCAs, see: https://www.usaid.gov/what-we-do/economic-growth-and-trade/development-credit-authority-putting- Local-wealth-work

8 For further information on USAID/DRC’s development and assistance portfolio, see: https://www.usaid.gov/democratic-republic-congo 9 To learn more about CLA approach, see https://usaidlearninglab.org/qrg/understanding-cla-0 https://www.usaid.gov/gda/ https://www.usaid.gov/what-we-do/economic-growth-and-trade/development-credit-authority-putting-https://www.usaid.gov/what-we-do/economic-growth-and-trade/development-credit-authority-putting-https://www.usaid.gov/what-we-do/economic-growth-and-trade/development-credit-authority-putting-https://www.usaid.gov/democratic-republic-congo https://www.usaid.gov/democratic-republic-congo https://usaidlearninglab.org/qrg/understanding-cla-0 show how they will build the trust of local communities by involving them in design and implementation of solutions, with benefits staying local.

● Inclusive targeting - Support the poorest households by responding to their specific needs, enhancing their aspirations, and strengthening their ability to access resources and services to pursue pathways out of poverty

● Conflict sensitivity - The drivers of conflict should be considered, and proposed approaches should address the positive and negative impact of the interventions on conflict;

● Geography - Approaches should encompass provinces of North and South Kivu, parts of Kasai Orientale, Kasai Central and Lomami. Proposed activities should be within this area in order to facilitate greater synergies amongst interventions, economies of scale, and impact.

● Environmental compliance: USAID promotes environmentally sound design by requiring that all USAID funded activities undergo an environmental impact assessment and comply with Title 22 of the Code of Federal Regulations Part 216, commonly known as 22 CFR 216 or "Reg 216."

A. 2 PROGRAM DESCRIPTION AND DESIRED RESULTS

The Sanitation activity aims to link the demand side to a vibrant supply side for sustainable improvement in access to sanitation in rural areas. Expanding market-based approaches and already demonstrated financing models to increase the demand for improved sanitation services in DRC will require the joint actions of a number of partners and multiple complementary USAID investments. Most importantly, actions by the DRC government are the foundation for success.

Through the PNEHA, the GoDRC has identified key agencies to lead implementation and mobilized resources to accomplish their objectives. At the local level, some local governments are investing in helping their communities to collectively improve their health and nutrition status. This activity will only succeed if USAID investments support and build upon partner government efforts.

The Activity’s Theory of Change is as follows:

If demand for improved sanitation and hygiene is stimulated through effective marketing and behavior change approaches; and, If demand is complemented by increased access to financial products and private sector-led supply of sanitation and hygiene products and services; and, The enabling environment/governance/policy framework is strengthened at national and local levels to support and promote Sanitation for All; then, Both the number of people with access to basic sanitation and hygiene services will increase, and the sustainability of those services will be improved, leading to improved health status in focus areas and targeted populations in DRC.

Applications should include clear objectives, a target geography, and an integrated approach based on the proposed high-level Theory of Change (TOC), the TOC will be expanded and clarified during continued co-creation by applicants/offerors(s), partners and USAID, and further refined after award during work planning, as activity design and MEL design are developed together.

The activity should be deliberately designed to contribute to transformative outcomes through a customized approach that is tailored to local realities at each site. For example, each center has different levels of access and each ETD has varying levels of capacity, infrastructure, service delivery, and support from other international donors or DRC government initiatives. The Activity must work to strengthen existing strategies, institutional structures, and programs to avoid duplication or developing parallel processes. Consideration should be given to operations and maintenance to ensure the sustainability of the investment. Sustainability must be included as a key consideration across all interventions. The activity will seek and establish partnerships to ensure long-term sustainability. As part of this sustainability element, interventions must directly support DRC’s government strategies, plans, and priorities.

The following narrative provides an overview of the high-level results.

Result I: Private sector-led supply of quality sanitation and hygiene services and products increased

In the absence of sufficient public resources, the private sector becomes the main provider of basic services, the private sector experience in water supply is more developed in DRC than in the sanitation sector. By improving access to sustainable sanitation services among Congolese individuals through traditional and non-traditional approaches, USAID aims to contribute to building the resilience of the Congolese populations. The Activity will focus on addressing critical gaps in the supply chain for sanitation and hygiene products and services (including access to finance/vouchers for targeted cross-subsidies if necessary, that does not distort fledgling market - also include 4 Ps of Marketing to build capacity for private sector to compete for consumer dollars in sanitation marketing on product, price, place and promotion - bundle with services like construction and/or emptying, etc.). The activity will work to expand already demonstrated innovative private sector led approaches and pilot new ones.

Sanitation programs that use blanket or non-targeted subsidies crowd out private capital opportunities, which itself slows growth of financial product and service development. While USAID recognizes that subsidies are often a necessary tool for reaching the poorest. However, should the contractor choose to use subsidies, it must be targeted and well monitored to avoid distorting the market. Furthermore, the contractor should have a plan in place to decrease the level of subsidies over time using a minimum level of leveraged outside investment to achieve service expansion targets.

Existing barriers vary significantly within and between the regions, but include technical and financial sustainability of proposed services, as well as economic disincentives affecting the willingness of service providers to properly dispose of collected fecal waste. Recognizing that complex gender norms and socio-cultural beliefs often serve as another barrier to the acceptation of new sanitation products, the Activity is expected to work closely with the Ministry of Health (MOH), USAID/DRC’s social and behavior change implementing partners, as well as Food for Peace implementing partners, to address this challenge. To be successful, the Activity will need to achieve the following sub-results:

Sub-Result 1.1: Expanded coverage and increased sustainability of quality sanitation and hygiene services through an iterative process (Scale-up, maturation, replication & consolidation)

Sub-Result 1.2: Increased transformation of small and informal Congolese organizations/business into financially viable providers of sanitation products and services.

Result II: Household demand for quality sanitation and hygiene services and products increased

There are nascent efforts to understand and facilitate the household sanitation market in DRC.

Creating demand is an underlying theme for sustainability of WASH services (consumer-focused activities introducing a range of aspirational products, along with information about financing mechanisms) and behaviors, but especially for sanitation since it is a relatively new behavior and the market for products and services is underdeveloped. The activity will build on these new experiences in DRC10 and elsewhere in Africa to analyze sanitation value chains and engage the private sector in a robust sanitation marketing effort, including public-private partnerships (PPPs) aiming to increase the demand for services through market-stimulating rebates and targeted subsidies. Existing barriers vary significantly within and between the regions, but include financial means, affordability of services, with payment for services presenting a barrier to access or preventing people from meeting other basic human needs.

Recognizing that complex gender norms and socio-cultural beliefs often serve as another barrier to the acceptation of new sanitation products, the Activity is expected to direct a portion of funds to creating social drivers for sanitation through marketing campaigns while working closely with the Ministry of Health (MOH), USAID/DRC’s social and behavior change implementing partners, as well as Food for Peace implementing partners, to address this challenge. To be successful, the Activity will need to achieve the following sub-results:

Sub-Result 2.1: Reduced social and individual barriers to sanitation services uptake

Sub-Result 2.2: Sanitation, sanitation marketing and hygiene promotion scaled

10 Sanitation Marketing In A Fragile Context Lessons from Gemena, Democratic Republic of Congo, hyperlink:

https://oxfamilibrary.openrepository.com/bitstream/handle/10546/620597/cs-sanitation-marketing-drc-191118-en.pdf?sequence=1&isAllowed=y https://oxfamilibrary.openrepository.com/bitstream/handle/10546/620597/cs-sanitation-marketing-drc-191118-en.pdf?sequence=1&isAllowed=y https://oxfamilibrary.openrepository.com/bitstream/handle/10546/620597/cs-sanitation-marketing-drc-191118-en.pdf?sequence=1&isAllowed=y

Result III: Enabling environment for strengthened sanitation markets systems

Creating successful sanitation markets along the entire sanitation chain in DRC will require the right enabling environment to support the development and ensure its sustainability.11 The activity will seek to understand, identify factors/sector functions (that are within USAID manageable interest) that impede the capacity of the private sector to engage in efficient and sustainable sanitation service delivery. While donors recognize that the market for on-site sanitation products and services will only thrive if it is supported by strong financial and institutional frameworks, the roadmap to success remains unclear with the recent emergence of sanitation programs that aim to work through local markets. Successful applications will identify local systems and devise synergistic efforts that offer an efficient path to outcomes that benefit all involved parties (including the private sector) and consider the incentives/support needed to enable the environment for sanitation services in DRC. The Activity will systematically pursue collaboration between partners possessing complementary strengths and mandates to identify interventions that are mutually reinforcing.

The activity will follow-up on government implementation plans, commitments and priorities as outlined in several WASH forums such as AfricaSAN5, the Sanitation and Water for All (SWA) partnership etc. to align market-supportive approaches with government goals and activities. To be successful, the Activity will need to achieve the following sub-results:

Sub-Result 3.1: Critical gaps in the market/system identified and possible evidence-based solution tested

Sub-Result 3.2: Core components of the market strengthened through Evidence, Technology, Learning and Adaptation

A.3 GEOGRAPHIC COVERAGE AND TARGET POPULATIONS

Geographic coverage

The Activity will focus investments in selected USAID DRC’s zones of intervention which include North and South Kivu, parts of Kasai Orientale, Kasai Central and Lomami. In the areas where DFSA implementing partners (IPs) are present, the Activity will need to coordinate closely to ensure complementarity of support to these communities and avoid duplication of services. In areas where DFSAs are not present, the Activity will implement targeted activities that help to link target populations to services. The specific ETD(s) to be covered by this Activity will be identified after award in consultation with USAID. Subject to availability of funding, security situation, and other considerations, the Activity may expand coverage into other areas. For

11 Strengthening Enabling Environment For Water, Sanitation And Hygiene (WASH), hyperlink:

https://www.unicef.org/wash/files/WASH_guidance_note_draft_10_3_hr.pdf https://www.unicef.org/wash/files/WASH_guidance_note_draft_10_3_hr.pdf similar reasons, the Activity may have to withdraw from certain geographies during implementation in consultation with USAID.

Target populations

The Activity will seek to improve access to sanitation services at household level and support the transformation of small and informal Congolese organizations/businesses into financially viable sanitation service providers. Achieving results for targeted populations will require engagement with men, women, as well as local government, various services providers, small businesses and civil society in order to foster community-wide commitment and actions, such as tax exemptions for low-cost sanitation businesses.

A.4 EXPECTED RESULTS

Sub-Result 1.1 : Expanded coverage and increased sustainability of quality sanitation and hygiene services through an iterative process (Scale-up, maturation, replication & consolidation)

Expanding coverage of and access to quality sanitation and hygiene services is vital to improving access. While the sanitation market size is likely to be too small and unpredictable to guarantee enough revenue for a business focusing only on sanitation, The Activity will develop approaches to address the persistent service delivery gaps identified based on province and local contexts. The Activity will work closely with other partners, especially FFP development partners at the community-level, to ensure that access to quality sanitation and hygiene services is improved.

Illustrative Outcomes:

- Innovative service delivery models and products developed and tested

- Variety and availability of affordable and quality products and services improved throughout the sanitation value chain

Sub-Result 1.2: Increased transformation of small and informal Congolese organizations/business into financially viable providers of sanitation products and services.

Prior market-based sanitation initiatives globally have shown limited success when developing sanitation entrepreneurs and businesses from scratch. Greater success has been observed when sanitation products and services are introduced to existing local businesses and integrated with local supply chains. Therefore, the activity will look to identify partnerships with local businesses to supply, market, sell, and provide sanitation products and services. Support to local businesses may also include/require strengthening marketing and business management skills (e.g. accounting, inventory control, consumer satisfaction).

Illustrative Outcomes:

- Local organizations/businesses actively supplying sanitation products and services to consumers

- Local organizations/businesses management skills strengthened to improve profitability and thereby the sustained availability of sanitation products and services

Sub-Result 2.1: Reduced social and individual barriers to sanitation services uptake

Beyond consumer access barriers posed by limited availability of products and services, financial barriers more often than not create the biggest challenges to sanitation uptake. To overcome these barriers the activity will explore a variety of pathways to reducing cost to the consumer - in particular the poorest consumers. These pathways may include:

● Identifying opportunities for greater market efficiencies, such as,

○ Reductions in transportation and material costs,

○ Maximizing economies of scale,

○ Local production of materials.

● Introducing financing mechanisms to improve the affordability of products and services,

○ Short-Medium terms savings/payment plans,

○ Microfinance loans,

○ Targeted subsidies for the poorest and most disadvantaged consumers.

Poor quality latrines and the practice of open defecation can be considered social norms that are reinforced by social and cultural beliefs about sanitation. These social norms can be a barrier to wide scale adoption of basic sanitation services. To identify and address these barriers, the following actions or similar approaches can be taken:

● Mapping social communication channels and leaders relevant to sanitation decisions (perhaps set within a larger Political Economy Analysis)

● Understanding socio-cultural factors that can be used to produce culturally appropriate responses that encourage the group to abandon open defecation and engage individuals, households and communities in improving their sanitation

Illustrative Outcomes:

- Costs for sanitation products and services reduced to a point that is affordable to the majority of the population, while still achieving cost recovery and profitability,

- Desirable sanitation products and services made affordable to consumers in the lowest wealth quintiles,

- Reduction in open defecation/increased status in owning, using and maintaining a basic sanitation facility.

Sub-Result 2.2: Sanitation, sanitation marketing and hygiene promotion scaled

While it is critical to improve the supply of sanitation and hygiene products and services, it is of equal importance to ensure there is sufficient demand from consumers. The activity will assess the level of demand from target consumers by examining their existing knowledge, attitudes and practices as well as willingness/ability to pay. Subsequently, formative research will be conducted to inform the design of social and behavioral change interventions, as well as product marketing materials, to be developed, tested and implemented by the activity.

Illustrative Outcomes:

- Increased knowledge of the range and costs of products and services available in the market,

- Increased demand for sanitation and hygiene products and services.

Sub-Result 3.1: Critical gaps in the market/system identified and possible evidence-based solution tested

To make markets work effectively takes a plethora of actors and skill sets that go beyond supply and demand. The activity will develop a holistic model of the sanitation and hygiene market value chain by identifying core roles as well as the roles that help to facilitate and or enable the market. The activity will then identify gaps or deficiencies and develop evidence-based solutions to address them through action research.

Illustrative Outcomes:

- Holistic model for sanitation and hygiene value chain developed,

- Gaps and deficiencies within the sanitation and hygiene market identified,

- Solutions to address market deficiencies tested.

Sub-Result 3.2: Core components of the market strengthened through Evidence, Technology, Learning and Adaptation

Building from the outcomes under Sub-Result 3.1, the activity will scale and refine solutions to address market gaps and deficiencies. Lessons learned from the activity will be shared with all relevant stakeholders with the intent to support the strengthening of the market beyond the activity’s target area.

A.5 MONITORING, EVALUATION AND LEARNING

Monitoring and Evaluation (M&E) is a critical part of USAID’s programming. According to the 2011 USAID Evaluation Policy, the Agency “use[s] evaluation findings to strengthen our efforts and sharpen our decision-making … and to inform resource allocation”. The ability to effectively monitor activities, evaluate their impact, and learn from the experience depends on a thoughtful and methodologically rigorous approach to activity design. USAID seeks applications that demonstrate robust design grounded in an efficient and logical theory of change (TOC), tightly linked to appropriate activities and corresponding performance and impact indicators.

Consistent with USAID’s Evaluation Policy, the contractor must incorporate a structured monitoring and evaluation component from the onset of award. The monitoring, evaluation, and learning (MEL) system should use USAID’s Collaboration, Learning, and Adapting (CLA) principles (see ADS 201.3.5.19) to effectively integrate real time monitoring and learning back into the project strategy and program implementation and ensure knowledge is shared with the broader host country community.

Activity monitoring, evaluating and learning plan (AMELP)

Applicants/offerors must develop a comprehensive AMELP that outlines how the activity will track progress, identify learning opportunities, and effectively adapt programming to anticipate and respond to challenges and opportunities that arise. The AMELP must demonstrate how the activity will routinely assess the quality of data; status of activities; whether these activities are resulting in their intended outcomes; if those outcomes are leading to the desired objectives;

whether critical assumptions remain valid; and whether course corrections should be made. The AMELP plan should explain how certain indicators will be analyzed, including any specific software that may be necessary. This is also an opportunity for the applicants/offerors to ensure a consistent data analysis approach among multiple partners.

The applicants/offerors must propose standard and custom indicators, as well as a schedule of deliverables demonstrating achievement of the above-mentioned objectives and outcomes. The applicants/offerors must propose targets (annual and life-of-activity) for all the indicators required by USAID, as well as for all indicators proposed by the applicants/offerors to monitor and collect data. These targets will be incorporated in the successful offeror’s contract. The applicants/offerors must report, at a minimum, on the following performance indicators, as applicable, to the proposed interventions:

i. 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.

ii. Value of new funding mobilized to the water and sanitation sectors as a result of USG assistance

iii. Number of people gaining access to safely managed sanitation services as a result of USG assistance.

iv. Number of basic sanitation facilities provided in institutional settings as a result of USG assistance

v. Percentage of households with soap and water at a handwashing station commonly used by family members

vi. Number of people receiving improved sanitation service quality from an existing "limited" or "basic" service as a result of USG assistance

Monitoring

The monitoring system, which should include both quantitative and qualitative data collection, will provide the Activity, USAID and other key stakeholders with timely and accurate data.

Indicators should be clearly linked to results and grounded in a theory of change, and data should be disaggregated by gender, country, zone of intervention and other relevant criteria.

The monitoring system must include performance monitoring and context monitoring. Partners are responsible for collecting baseline data for their performance indicators. Performance monitoring refers to monitoring the quantity, quality, and timeliness of activity outputs within the control of the implementer, as well as the monitoring of activity outcomes that are expected to result from the combination of these outputs. Performance monitoring includes operational monitoring such as checking back later to see if completed activities still function. For example, if a well is drilled is it still functioning a year later, or if an individual is trained do they apply the training properly, or if a loan is extended is it repaid.

Context monitoring is related to the monitoring of local conditions that may directly affect implementation and performance (such as non-USAID projects operating within the same sector as USAID projects) or external factors that may indirectly affect implementation and performance (such as macro-economic, social, or political conditions). Context monitoring should be used to monitor assumptions and risks identified in the activity logic model. In order to have a sound monitoring system, applicants/offerors will propose indicators, determine ways to set baselines, realistic targets (only for performance indicators), and effective procedures for internal data quality control.

Evaluation

Continuous monitoring of performance objectives will not only support accountability but also ensure measurable results. USAID/DRC may conduct an independent mid-term and/or final performance evaluation of the award to measure progress over time, verify the development hypothesis, and inform programming. The Activity will work closely with the evaluators to provide context as well as access to relevant staff and information. Results of performance evaluations may lead to changes in the implementation of the Activity and will be shared in a public report.

Learning

The activity must develop a preliminary learning agenda that identifies a limited number of questions (one to three) related to the activity theory of change. These questions will inform the activity learning agenda, which will be developed throughout the first year of implementation.

Close and systematic collaboration with other USAID implementing partners, the GoDRC decision-makers and institutional bodies among the target communities, and other key stakeholders will be critical to maximize the use of learning and ensure that monitoring and evaluation systems are as cost-effective as possible and do not create a parallel system. The activity will be expected to collaborate closely with the mission Monitoring and Evaluation contract (MECC) mechanism on operationalizing CLA.

A.6 BUDGET AND FUNDING

Subject to the availability of funds, USAID expects to award $30-50 million over five years to one organization (or consortium) for the purposes of implementing the Activity.

[To Be Confirmed: This amount is exclusive of $2 million that, subject to the availability of funds, could be made available under certain conditions (emergency situations) in order to respond to an ongoing shock and/or public health/WASH emergency.]

A.7MANAGEMENT, STAFFING AND SHOCK RESPONSIVE PROGRAMMING

Management and operations

The Activity will require a management and operational structure that is cost efficient and able to effectively implement, and provide technical support and oversight to, activities in two separate countries. The technical approaches pursued in Kasai and Kivus regions, while conceptually similar, may vary significantly in their implementation. Given the limited resources and overwhelming needs, the Activity will need to support the differing priorities and technical interventions in the most cost-efficient manner possible. The organizational structure must provide field offices with substantial autonomy to respond and adapt to the changes in their respective zones of intervention, engage host country government officials, and make appropriate decisions and course corrections to ensure each region achieves its stated results.

The Activity must be able to engage in policy level dialogue while remaining focused on, and present in, the zones of intervention.

Collaboration

Collaboration is essential to the success of the Activity, and the Activity will actively collaborate with the key Ministries and USAID Implementing Partners (IP), notably the Sustainable per-urban water and sanitation services Broad Agency Announcement (BAA) Awards, Breakthrough Action (BA) social and behavior change mechanism and the Food for Peace (FFP) Development Food Security Assistance (DFSA) partners and other partners working in USAID intervention zone. The Activity will also collaborate closely with the USAID Integrated Health Program, Global Health Security Agenda, Ebola Response and Transition, PDEC as well as other donors and key stakeholders. In consultation with USAID, this collaboration is expected to lead to refinements and adjustments to the Activity’s technical approaches and annual work plans. Applicants/offerors can show openness to including other sectors or collaborating with other development partners in the area but should only propose investments in potential sectors that add sufficient value to the application without excessive complexity. Details of the investments in “potential sectors'' can be refined through co-creation as the landscape evolves and opportunities to leverage other aid actions emerge but are welcome in applications if applicants/offerors see fit to include them.

Adaptive management

The environment of the DRC is dynamic and even the most sound activity designs may face unanticipated situations that hinder success. The applicants/offerors will propose strategies and approaches based on experience, evidence, and direction from USAID/DRC, ensuring that conflict sensitive approaches are employed. The Contractor will be bound by the operating constraints outlined in the program description for this activity. As part of the operational structure, the Activity should ensure that its staffing, work plan, budget, and operational processes allow for timely and accurate decision-making and course corrections when evidence acquired through the activity’s MEL mechanisms suggest the need for changes to be made.

USAID expects a rigorous approach to learning and adaptation driven by data that, in consultation with USAID, also leads to refinements and adjustments to the Activity’s…