87676 MAPAS Monitoring Country Progress in Drinking Water and Sanitation El Salvador The results of the sector analysis and dialogue carried out during Highlights the implementation of the Monitoring Country Progress in Drinking Water and Sanitation (MAPAS) regional initiative in El Salvador show Address Population Growing Faster than WSS Coverage that it is essential to advance the country’s legal and institutional While El Salvador is on track to reach the MDG’s WSS reform of the water supply and sanitation (WSS) sector. targets, sustaining the achieved results is compromised by rapid urban population growth and an insufficient The reform should result in effective governance in the application investment in the sector. of sector policies and in a programmatic, needs-based planning approach that has a concrete impact on unserved populations. Mind the (Investment) Gaps It should enable the establishment of an autonomous regulatory There is an estimated annual national deficit of US$73 authority that promotes service providers’ efficiency and ensures million for drinking water and US$182 million for the quality and sustainability of WSS services. Reform can improve sanitation services, resulting in a total deficit of US$255 sustainability by incorporating water resources protection, climate change adaptation, and disaster risk management measures. million needed to cover the investments to attain the national sector targets. The MAPAS financial assessment revealed the need to ensure the provision of funds to rehabilitate and replace the systems that Improve Poor Service Delivery are approaching the ends of their lifespans in order to sustain Existing services show important quality limitations: results already achieved and meet the national and Millennium 48 percent of the drinking water supply is qualified Development Goals (MDGs) targets by 2015. as intermittent, 50 percent of the population reports deficiencies in the quality of water provided, and only Compiling information systematically on financing, service access, 4.5 percent of the population reports that wastewater and quality and improving the sector information systems are receives some treatment. crucial to having a well-informed sector planning process and, ultimately, high quality and sustainable water and sanitation Develop a Sound WSS Reform Process services. It is essential to advance with the national sector reform, especially in the development of a WSS policy and regulatory framework. WHAT IS MAPAS? Revise Targets and Strategies Monitoring Country Progress in Water and Sanitation is a It is critical to define new national targets for WSS service regional initiative aimed at providing governments with a access and quality as well as a sectoral strategy oriented systematic framework for assessing and monitoring their toward making the provision of WSS services universal performance in delivering national water supply and sanitation national targets. Use Better Information for Better Services Compiling sector information systematically is crucial to MAPAS reveals the major bottlenecks hindering the having well-informed investment planning and tracking achievement of the national targets and the reform actions progress toward better WSS services. required to efficiently convert funding into quality, sustainable WSS services for the population. 2 MAPAS El Salvador El Salvador at a Glance Water and Sewer (ANDA) and the WHO/UNICEF Joint Monitoring Program, shows that El Salvador is on track to meet the MDG targets for water and sanitation. The population without access Urban Rural to improved drinking water services decreased from 26 percent in 64% 36% 1990 to 12 percent in 2010, and the population without access to improved sanitation services decreased from 25 percent in 1990 to Population: 6.2 million 13 percent in 2010. Urban Rural However, this apparent success masks significant inequalities and Sanitation 89% 83% disparities between urban and rural areas. In 2010, over 740,000 Coverage: 87% people lacked access to improved drinking water, and an estimated 860,000 lacked access to improved sanitation; 76 percent and 54 Urban Rural percent of these people, respectively, live in rural areas. Drinking Water 94% 76% Coverage: 88% The financial analysis revealed that investments in urban water and sanitation have been insufficient to offset population growth. Source: WHO/UNICEF Joint Monitoring Program Update 2012 (Data 2010) The lack of investment is especially critical in urban sanitation, where the MDG targets will not be met and the coverage levels ANALYSIS RESULTS may continue decreasing. Furthermore, the current tariff schemes The comparative analysis of the WSS coverage trend estimates, do not cover operation costs, result in low quality services, and based on information provided by the National Administration of represent a barrier to WSS service expansion. Figure 1 | Required versus Planned Annual Investments to Attain National WSS Targets by 2015 (Public and Private) DRINKING WATER REQUIRED vs. PLANNED INVESTMENTS US$73 million US$120 million DEFICIT REQUIRED INVESTMENTS US$47 millions PLANNED INVESTMENTS SANITATION REQUIRED vs. PLANNED INVESTMENTS US$182 million US$197 million DEFICIT REQUIRED INVESTMENTS US$15 million PLANNED INVESTMENTS Source: Data from Central Government, Municipal Service Providers and Donor Agencies, processed by MAPAS. Monitoring Country Progress in Drinking Water and Sanitation 3 Figures 1 and 2 illustrate the results of the MAPAS financial analysis, per year for sanitation, resulting in a total deficit of US$255 million which revealed the gap between the annual investment planned per year in funds needed to attain the national sector targets. and the annual investment of required to achieve the Government’s targets for water and sanitation by 2015. The estimated investment Figure 3 shows the gap between the planned annual investments gap is US$73 million per year for drinking water and US$182 million and the annual public-only requirements by subsector. Figure 2 | Financial Requirements to Attain National Goals by 2015: New Investments versus Replacement & Rehabilitation Investments TOTAL: REQUIRED NEW INVESTMENTS, REPLACEMENT AND REHABILITATION DRINKING SANITATION US$90 million US$228 million 200 WATER SUPPLY 150 100 59 NEW REPLACEMENT AND 50 60 INVESTMENTS 32 28 58 81 REHABILITATION URBAN RURAL URBAN RURAL NEW CAPITAL INVESTMENTS (MILLION US$/YEAR) STOCK CAPITAL REPLACEMENT / REHABILITATION (MILLION US$/YEAR) Figure 3 | Financial Requirements to Attain National Goals by 2015: Required Public Investments versus Planned Public Investments TOTAL: REQUIRED INVESTMENTS AND PLANNED INVESTMENTS DRINKING SANITATION US$317 million 200 WATER SUPPLY US$62 million 150 100 PLANNED 50 92 117 REQUIRED INVESTMENT 80 INVESTMENTS 15 28 32 3 12 URBAN RURAL URBAN RURAL NEW CAPITAL INVESTMENTS (MILLION US$/YEAR) STOCK CAPITAL REPLACEMENT / REHABILITATION (MILLION US$/YEAR) 4 MAPAS El Salvador THE MAPAS SCORECARD the process of developing plans and sector activities, and (3) the The scorecard evaluates the service delivery pathway through which sustainability of the services provided. the country transforms funding into sustainable services for water and sanitation in each of four subsectors: rural water, urban water, Each building block is scored from a minimum of 0 up to 3, depending rural sanitation and hygiene, and urban sanitation and hygiene on the answers to the three to five indicators per dimension. (table 1). The scorecard uses a traffic-light color code. A green block means The path is evaluated through nine building blocks, which are a highly satisfactory score (higher than 2); a yellow block means grouped in three main pillars, to look at: (1) the effectiveness of the a neutral score (between 1 and 2); and a red block means an institutional framework, (2) the concrete results obtained through unsatisfactory score (below 1). Table 1 | Water Supply and Sanitation Sector Scorecard for El Salvador1 Institutional framework Sector development Sustainability Subsector Average score Policies Planning Budget Expenditures Equity Results Operation & maintenance Expansion Users Rural Water 1.1 0.5 0 1,5 1.5 2.0 1.8 0 1.0 1.5 Urban Water 1.4 0.5 1.5 1.5 2.0 1.0 2.5 0.3 1.0 2.1 Rural Sanitation 0.4 0 0 0 0.5 0.5 0.8 0.4 0.5 1.1 and Hygiene Urban Sanitation 1 0 0 1.5 2.0 1.0 1.5 0.9 1.0 1.1 and Hygiene Average score 1 0.3 0.4 1.1 1.5 1.1 1.6 0.4 0.9 1.5 0.6 1.4 0.9 Average score Average score Average score Legend: Low: <1 Medium: From 1 to 2 High: >2 SCORECARD RESULTS The results emphasize the need for better sector policies and One of the most important findings is the absence of a sector policy investment planning aligned with budgeting. Overall, the average that contributes to strengthening framework and comprehensively score for the four subsectors in El Salvador is 0.97 points out of 3.0, addresses the challenges of achieving universal and quality service and the rural sanitation and hygiene subsector exhibits the lowest delivery. It should be mentioned that ANDA is preparing a WSS policy score (0.42). The institutional framework pillar has lowest score (0.6), proposal that is under review by of the Inter-Institutional Commission underscoring the need to conduct institutional reform in the WSS established to conduct the National Water Reform process. sector in El Salvador. Monitoring Country Progress in Drinking Water and Sanitation 5 PRIORITY ACTIONS sector DRINKING Water and Sanitation • Enact a water and sanitation law to organize the sector. • Develop and adopt a WSS sector policy to guide the decision making processes, define clear targets and the role of sector institutions, and promote transparent participation mechanisms. • Develop a needs-based sector plan to achieve national targets. • Promote the creation of a regulatory body for the provision of WSS services. • Establish a system for tariffs and subsidies that reflects the actual cost of services and considers criteria of equity and financial sustainability. • Establish monitoring and evaluation indicators to measure the quality of services and generate timely information for decision makers at all levels. 6 MAPAS El Salvador Priority actions sub sector Rural drinking Water SUPPLY Institutional • Clearly define the responsibilities and coordination mechanisms among ANDA, the Ministry of Health (MINSAL), framework the Social Investment Fund for Local Development (FISDL), and the municipalities in rural areas. • Establish new targets to achieve full coverage of water services in rural areas. • Ensure the eventual creation of a regulatory entity, and incorporate the rural service providers. Sector • Create a specific line item in the Fund for the Economic and Social Development of Municipalities (FODES) for development investment in rural water supply. • Establish an information system for planning and monitoring the sustainability of rural water services. • Articulate water supply services within municipal development plans, while allowing for co-financing. Sustainability • Adopt regulatory measures to ensure the sustainability of rural services, reducing energy costs and setting tariffs to cover the costs of operation and maintenance. • Adopt mechanisms for citizen participation and training to ensure sustainability of services as in KfW programs. • Review the financial management of rural services, adopting measures to regulate tariffs, operating expenses, and depreciation. • Establish post-construction support models. sub sector URBAN drinking Water SUPPLY Institutional • Define national targets to improve the quality of services. framework • Implement a regulatory mechanism with indicators to improve continuity and efficiency of services, including those operated by both municipal and private providers. Sector • Invest in programs to improve the quality of services. development • Develop and implement inclusive budget allocation criteria to reach unserved populations. • Develop an information system to monitor the quality of urban services. Sustainability • Establish a methodology that calculates the tariffs needed to cover operational and maintenance costs and subsidies to meet the social and financial needs to sustain services. • Overcome legal institutional, technical, and financial barriers to solve complaints directed at ANDA. Monitoring Country Progress in Drinking Water and Sanitation 7 Priority actions subsector RURAL SANITATION AND HYGIENE Institutional • Define and adopt a policy that articulate the institutional responsibilities and establish a coordination framework mechanism among ANDA, MINSAL, FISDL, and the municipalities for rural sanitation and hygiene sector. • Define and adopt policies to integrate water and sanitation, and establish investment and operational goals for wastewater treatment. • Assign specific budget for rural sanitation, using resource allocation criteria based on equitably meeting the needs identified in the subsector. Sector • Strengthen municipal and local capacities for effective participation in the subsector, including the development development of implementation models. • Implement measures for water source protection and disaster risk management. • Promote the use of technologies that are affordable, efficient, and appropriate for the rural context to ensure their sustainability. • Consider budget allocation for wastewater treatment. Sustainability • Implement training programs for the proper use of infrastructure and promote behavioral change in terms of hygiene practices. subsector URBAN SANITATION AND HYGIENE Institutional • Define and adopt a policy that integrates water and sanitation and defines investment and operational goals for framework wastewater treatment and sludge management. • Define a policy that articulates the competences and facilitate the coordination among ANDA, MINSAL, FISDL, and municipalities in urban sanitation and hygiene issues. • Plan investments in harmony with urban development plans. • Allocate specific budgets for urban sanitation using resource allocation criteria based on equitably meeting the subsector’s identified needs. • Define and implement a regulating mechanism of urban sanitation, as well urban water. Sector • Allocate budget for wastewater treatment and sludge management. development • Consider risk management criteria when building infrastructure. Sustainability • Implement risk management measures, controls on wastewater disposal, and source water protection, including the regulation of the operation and maintenance of existing treatment plants. • Set tariffs and subsidies that meet the social and financial needs that ensure service sustainability. • Achieve behavioral change regarding hygiene practices. EL SALVADOR Monitoring Country Progress on Drinking Water and Sanitation (MAPAS) This initiative is promoted by the Central American and Dominican Republic Forum for Water and Sanitation (FOCARD-APS) through its Regional Technical Group on Information System with the support of the World Bank’s Water and Sanitation program (WSP). In El Salvador, it has been led by the National Administration of Water and Sewer (ANDA), and the Technical Secretariat of the Presidency in the framework of the Inter-Institutional Commission established to conduct the National Water Reform process involving all sector institutions, policy makers, and stakeholders. Marco Antonio Fortin Huezo President of ANDA President Pro Tempore of FOCARD-APS 2014 National Administration of Water and Sewer (ANDA) ana.cardoza@anda.gob.sv http://www.anda.gob.sv Central America and Dominican Republic Forum for Water and Sanitation (FOCARD-APS) info.focard-aps@sica.int www.sica.int/focardaps Technical Secretariat of the Presidency http://tecnica.presidencia.gob.sv The World Bank Water and Sanitation Program (WSP) Latin America and the Caribbean Region wsplac@worldbank.org www.wsp.org