88605 MAPAS Monitoring Country Progress in Drinking Water and Sanitation Panama The results of the sector analysis and dialogue carried during the Monitoring Country Progress in Drinking Water and Sanitation Highlights (MAPAS) regional initiative show that it is essential to continue Address the Unserved Population with the process of a legal and institutional reform of Panama’s While Panama has reached important milestones in the water supply and sanitation (WSS) sector. water and sanitation access levels, the rural and periurban areas remain largely unserved. The reform must facilitate the reorganization of the sector and the establishment of effective leadership to guide the Mind the Investment Gaps development and application of sector policies. It should also There is a total annual deficit of US$259 million to meet the sector targets proposed by the Government. The seek to ease the preparation of plans based on equity criteria to investment gap for sanitation is US$194 million per year direct investments that provide water services to the population and for water supply US$65 million per year. with limited or no access at all. Move forward the Reform Process The reform process must also ensure autonomy for the service The WSS reform process must establish a clear sector policy providers, along with effective regulation mechanisms, so they with well-defined institutional roles and properly structured can take steps to recover costs and improve the quality and plans for increasing the services to the entire population. sustainability of services to the public. Likewise, it is critical to Fund Rehabilitation and Replacement Infrastructure ensure the availability of the financial resources required for Ensure the availability of financial resources for the the rehabilitation and replacement of existing systems that are rehabilitation and replacement of the infrastructure stock reaching the ends of their lifespans. built in previous decades. These systems are reaching the ends of their lifespans, which leads to serious operation and maintenance deficiencies. Strengthen Service Providers WHAT IS MAPAS? The reform process must ensure the autonomy of the The Monitoring Country Progress in Water and Sanitation service providers, with an effective regulation, so they can is a regional initiative aimed at providing governments recover operational costs and improve the quality of the with a systematic framework for assessing and monitoring services. the sector performance in delivering national water supply and sanitation targets. Use Better Information for Better Services It is strategically critical to ensure systematic compilation MAPAS reveals the major bottlenecks hindering the of information on sector financing, access, coverage, and achievement of the national targets and the reform quality of services; improving the sector information actions required to efficiently convert funding into systems is also critical for sector planning and monitoring. quality, sustainable WSS services for the population. 2 MAPAS Panama PANAMA AT A GLANCE compilation of information but also improve sector planning and monitoring. Urban Rural 75% 25% ANALYSIS RESULTS Population: 3.4 million A comparative analysis of WSS coverage trend estimates, based information provided by the National Institute of Urban Rural Statistics and the Census for 2010 and the WHO/UNICEF Sanitation 77% 54% Joint Monitoring Programme data for 1990 and 2011, shows Coverage: 71% that Panama has made significant progress in reducing its percentage of unserved population. Urban Rural Drinking Water 97% 86% The percentage of population without access to improved water Coverage: 94% services has declined by 10 percentage points, from 16 percent in 1990 to 6 percent in 2011. In addition, the percentage of the Source: WHO/UNICEF Joint Monitoring Program Update 2013 (Data 2011) population without access to improved sanitation services has declined by 13 percentage points, from 42 percent in 1990 to 29 percent in 2011. The MAPAS initiative highlights the need to incorporate measures to protect water resources, adapt to climate change, These trends reveal the fulfillment of the MDG water targets by and incorporate disaster risk management in order to sustain 2015, although the sanitation coverage target set at 79 percent the results already achieved and meet the targets set by the would not be met. Government and the Millennium Development Goals (MDGs). As shown in figures 1, 2, and 3, the national coverage estimates MAPAS also highlights the great strategic value of implementing mask service disparities and inequalities. Those segments of information systems for sector financing, access, and quality population unattended by the Government’s WSS initiatives of the services. These would not only improve the systematic are highly concentrated in rural and periurban settlements. Figure 1 | Required versus Planned Annual Investments to Attain National WSS Targets by 2015 (Public and Private) DRINKING WATER REQUIRED vs. PLANNED US$65 million INVESTMENTS DEFICIT US$180 million US$115 million REQUIRED PLANNED INVESTMENTS INVESTMENTS SANITATION REQUIRED vs. PLANNED INVESTMENTS US$194 million DEFICIT US$260 million REQUIRED US$66 million INVESTMENTS 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 The Government’s Strategic Plan (PEG) established national periurban areas. This situation reasserts the need to establish water and sanitation targets among the metas imperdonables universal water and sanitation goals. (targets to be met without excuses). These national targets envision achieving water supply coverage of 90 percent of the As figure 1 illustrates, the analysis conducted with the MAPAS population in urban and rural areas and sanitation coverage of financial tool identified an estimated annual deficit of US$259 76 percent in urban areas by 2014. million to cover the investments (public and private) of USS440 million needed to attain the national sector targets. The The PEG did not propose a target for sanitation in rural areas. investment gap is US$194 million per year for sanitation and So even if the Government’s targets for national water and US$65 million per year for drinking water. Figure 2 breaks down sanitation coverage were met by 2015, 1 million people would the same required investment of US$440 million into new remain without access to improved sanitation services, and and replacement investment needs by rural and urban areas. 150,000 people would lack access to improved water services, Figure 3 shows the gap between the planned annual investments of whom 82 percent live in rural areas and 63 percent in and the annual public-only requirements by subsector. Figure 2 | Financial Requirements to Attain National Goals by 2015 (Public and Private): New Investments versus Replacement & Rehabilitation Investments TOTAL: REQUIRED NEW INVESTMENTS, REPLACEMENT AND REHABILITATION DRINKING SANITATION US$362 million WATER SUPPLY US$78 million 200 150 100 184 119 NEW 50 37 REPLACEMENT AND 22 INVESTMENTS 25 13 21 19 REHABILITATION URBAN RURAL URBAN RURAL NEW CAPITAL INVESTMENTS (MILLION US$/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 AND PLANNED PUBLIC INVESTMENTS DRINKING SANITATION WATER SUPPLY US$332 million US$181 million 200 150 100 153 REQUIRED PLANNED 50 108 103 INVESTMENTS 32 12 54 39 INVESTMENTS 12 URBAN RURAL URBAN RURAL REQUIRED PUBLIC INVESTMENTS (MILLION US$/YEAR) PLANNED PUBLIC INVESTMENTS (MILLION US$/YEAR) 4 MAPAS Panama THE MAPAS SCORECARD The scorecard evaluates the service delivery pathway through through the process of developing plans and sector activities, which the country transforms funding into sustainable services and (3) the sustainability of the services provided. for water and sanitation in each of four subsectors: rural water, urban water, rural sanitation and hygiene, and urban sanitation Each building block is scored from a minimum of 0 up to 3, depending and hygiene (table 1). on the answers to the three to five indicators per dimension. The path is evaluated through nine building blocks, which are The scorecard uses a traffic-light color code. A green block means grouped in three main pillars, to look at: (1) the effectiveness a highly satisfactory score (higher than 2); a yellow block means of the institutional framework, (2) the concrete results obtained a neutral score (between 1 and 2); and a red block means an unsatisfactory score (below 1). Table 1 | Drinking Water and Sanitation Scorecard for Panama Institutional framework Sector development Sustainability Subsector Average score Policies Planning Budget Expenditures Equity Results Operation and maintenance Expansion Users Rural Water 1.6 2.5 0.5 2.5 2.5 1.5 1.2 1.5 1 1.1 Urban Water 1.4 2 1 2.5 2 0 2.5 0.8 0.5 1.2 Rural Sanitation 0.9 0.5 0.5 1.5 1.5 0.5 0.8 0.4 1.5 0.8 and Hygiene Urban Sanitation 1.5 1.5 1 2.5 2.5 0.5 0.8 0.6 2.5 1.5 and Hygiene Average score 1.3 1.6 0.8 2.3 2.3 0.6 1.3 0.8 1.4 1.1 1.5 1.4 1.1 Average score Average score Average score Legend: Low: <1 Medium: From 1 to 2 High: >2 SCORECARD RESULTS 3. Revising the tariff policy to permit cost recovery for services in The scorecard reveals the major barriers that prevent the the large and intermediate-sized cities delivery of quality, sustainable services in the three main pillars 4. Introducing more economical service alternatives for low- (institutional framework, sector development, and sustainability) income populations for each subsector, and these become the following priorities for 5. Increasing the percentage of treated wastewater and sludge reform: while establishing appropriate indicators for evaluating the operation of sewer networks and treatment systems 1. Implementing sector plans to address identified needs while 6. Promoting the proactive participation of users in service incorporating equity criteria management 2. Granting effective autonomy to service providers while ensuring adequate user regulation and supervision so as to Addressing these challenges will lead to a greater probability improve service efficiency and quality of meeting and maintaining the national water supply and sanitation goals. Monitoring Country Progress in Drinking Water and Sanitation 5 PRIORITY ACTIONS sector DRINKING Water and Sanitation • Set universal coverage goals of water supply and sanitation services. • Establish clear policies for the lead agency and give effective autonomy to service providers. • Prepare comprehensive plans for the country’s regions to enhance management capacity, incorporating best practices based on defined goals and indicators. • Increase the capacity of the providers in the sector with accessible technological tools to design, build, supervise, operate, and maintain systems. • Establish criteria and methodologies for applying the water and sanitation subsidy fund in urban and rural areas. • Promote the incorporation of sufficient, qualified human resources for service management. • Design and implement a tariff policy that will cover operational and administrative costs as well as contributions to sector investments. • Promote the rational use of water, improved hygiene, and the adequate management of solid waste. • Promote user participation in the management of water and sanitation services. • Harmonize definitions of terms and standardize data collection monitoring and evaluation strategies. 6 MAPAS Panama Priority actions subsector RURAL DRINKING WATER SUPPLY Institutional • Strengthen the lead agency’s role for effective subsector coordination. framework • Develop a comprehensive strategic plan for the rural subsector aimed at reducing inequalities. Sector • Institute technical standards for rural drinking water supply systems. development • Promote research and the use and adaptation of appropriate technologies with ongoing involvement of the community, especially in indigenous communities and remote rural areas. • Support the ongoing decentralization process and foster the political will to replicate it. • Guarantee the implementation of the Rural Water and Sanitation Information System (SIASAR) for subsector planning and monitoring. Sustainability • Strengthen the capacity of the rural water board and the health committees to provide technical and social assistance. • Promote intersectoral actions to strengthen the communities’ capacity to achieve local development. subsector URBAN drinking Water SUPPLY Institutional • Develop a clear policy following the guidelines of the Government Strategic Plan. framework • Make the lead agency take on an operational role. Sector • Guarantee the autonomy of the service providers, along with an effective regulation from the Public Service Authority. development • Introduce needs-based equity criteria into the budget allocation process. • Include specific actions in the service providers’ plans to increase unserved population coverage. • Support the ongoing decentralization process; foster the political will to replicate it. • Promote the use of accessible technological tools to design, build, supervise, operate, and maintain systems. Sustainability • Introduce measures to improve the providers’ efficiency and reduce losses. • Adjust rates based on current operating costs. • Incorporate measures for disaster risk management and actions to conserve water sources and protect the watersheds in the service providers’ plans. • Assess user satisfaction levels in relation to the service delivery. Monitoring Country Progress in Drinking Water and Sanitation 7 Priority actions subsector Rural SANITATION AND HYGIENE Institutional • Prepare policies and a strategic plan with a comprehensive approach for subsector development. framework Sector • Ensure that the service providers’ plans include specific actions to extend service to unserved indigenous development communities. • Design feasible standard sanitation solutions for rural areas. • Promote research and the use and adaptation of appropriate technologies with the ongoing involvement of the community, especially in indigenous communities and remote rural areas. • Guarantee the implementation of the Rural Water Supply and Sanitation System (SIASAR) for subsector planning and monitoring. • Allocate resources for project execution, giving priority to the unserved, at-risk areas, and indigenous communities. Sustainability • Prepare a hygiene promotion strategy with medium- and long-term plans and programs, supplemented with dissemination campaigns. • Promote community involvement in the implementation of sanitation system management. subsector urban SANITATION AND HYGIENE Institutional • Make the lead agency take on an operational role to apply current policies and plans. framework • Introduce needs-based equity criteria for budget allocation to reach unserved populations. Sector • Ensure that the service providers’ plans include specific actions to extend service to unserved indigenous development communities. • Support the institution’s staff and personnel with tools and training. Sustainability • Establish rates for wastewater treatment and sludge management in the budget. • Achieve proper operation and maintenance of the new and existing sewer systems and wastewater treatment facilities (Panama Bay Project).Promote the use of appropriate technology for urban sanitation in outlying, low- income urban areas. • Implement a communications strategy to achieve changes in hygiene and sanitation behaviors. PANAMA 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 Panama, it has been implemented through the World Bank–funded Water and Sanitation Project (PASAP) by the Directorate of Drinking Water and Sewer Subsector (DISAPAS) of the Ministry of Health within the framework of the Inter-Agency Commission on Drinking Water and Sewer (CIAPAS) involving all sector institutions, stakeholders, and policy makers. Ministry of Health of Panama Directorate of the Drinking Water and Sewer Subsector upc@pasap.com.pa www.minsa.gob.pa Central America and Dominican Republic Forum for Water and Sanitation (FOCARD-APS) info.focard-aps@sica.int www.sica.int/focardaps The World Bank Water and Sanitation Program (WSP) Latin America and the Caribbean Region wsplac@worldbank.org www.wsp.org