88623 MAPAS Monitoring Country Progress in Drinking Water and Sanitation Honduras The results of the sector analysis and dialogue carried out during the Monitoring Country Progress in Drinking Water and Highlights Sanitation (MAPAS) regional initiative in Honduras show that it is essential complete the institutional reform process started in 2003 with the Framework Law for the Drinking Water and Address the Unserved Population Sanitation Sector. Statistics mask significant inequalities and disparities between urban and rural areas. Over 2.2 million people All sector institutions and decision makers in Honduras lacked access to improved sanitation services, and 1 million emphasized the need for an effective sector governing body and lacked access to improved drinking water services in 2010. an autonomous regulatory authority to: Of these, 66 percent and 80 percent, respectively, live in rural areas (UNICEF 2011). • Apply sector policies and promote coordination between sector institutions and municipalities. • Shift from annual institutional planning to a sector-wide Mind the Investment Gaps programmatic planning approach. There is an estimated annual deficit of US$350 million in • Use equity criteria to direct investment toward populations funds needed to attain the Government’s targets for water that do not have access to drinking water and sanitation and sanitation by 2022. The investment gap in sanitation is services. US$193 million per year and in water US$157 million per year. • Grant water supply and sanitation (WSS) utilities autonomy to recover costs and improve the sustainability of the service . • Control the quality of drinking water and provision of WSS Improve Poor Service Delivery service. The limited quality and performance of existing services • Incorporate climate change adaptation and disaster risk translate into low user satisfaction and compromises the management measures into efforts to protect water resources. sustainability of results already achieved. The financial assessment also revealed the need to ensure Strengthen Service Providers sufficient funds to rehabilitate and replace systems that are It is essential to continue advancing the institutional reform approaching the end of their lifespan—this will sustain the results process by: already achieved and help meet the national targets set by the Government. • Decentralizing the urban services to the municipalities and creating autonomous municipal utilities. WHAT IS MAPAS? • Strengthening local postconstruction support mecha- Monitoring Country Progress in Water and Sanitation is a regional nisms to improve the sustainability of rural services. initiative aimed at providing governments with a systematic framework for assessing and monitoring their performance in Use Better Information for Better Services delivering national water supply and sanitation targets. It is critical to compile information from all sector agencies systematically to inform investment planning and improve MAPAS reveals the major bottlenecks hindering the achievement of the national targets and the reform actions required to the quality and sustainability of WSS services. efficiently convert funding into quality, sustainable WSS services for the population. 2 MAPAS Honduras Honduras at a Glance The population without access to improved drinking water services decreased from 24 percent in 1990 to 13 percent in 2010, and the population without access to improved sanitation services decreased Urban Rural from 50 percent in 1990 to 23 percent in 2010 (WHO/UNICEF JMP 52% 48% Update 2012). Population: 7.8 million However, this apparent success masks significant inequalities and Urban Rural disparities between urban and rural areas. In 2010, over 1 million Sanitation 86% 74% people lacked access to improved drinking water services and about 2.2 million lacked access to improved sanitation services. Of these, Coverage: 81% 80 percent and 66 percent, respectively, live in rural areas (UNICEF 2011). Urban Rural Drinking Water 96% 81% The analysis of disaggregated coverage figures in rural and urban Coverage: 89% areas reveals troubling trends. The proportion of urban dwellers with Source: WHO/UNICEF Joint Monitoring Program Update 2013 (Data 2011) access to improved water has actually decreased since 1990, and poor people have significantly lower levels of access to services since ANALYSIS RESULTS then. This is largely due to rapid urban population growth that has WSS coverage levels are increasing but remain unequal. Looking only made Honduras predominantly urban since 2008. In 2012, about 52 at the national averages of drinking water and sanitation coverage, percent of Honduras’s population lived in urban areas (INE 2012). according to the access definition and data of the WHO/UNICEF Joint However, the level of investment in urban water and sanitation has Monitoring Program, Honduras already has achieved the Millennium been insufficient to maintain existing coverage and extend urban Development Goal (MDG) targets1. service, especially to poor people. Figure 1 | Required versus Planned Annual Investments to Attain National WSS Targets by 2022 (Public and Private) DRINKING WATER REQUIRED vs. PLANNED US$157 million INVESTMENTS DEFICIT US$205 million REQUIRED INVESTIMENTS US$48 million PLANNED INVESTIMENTS SANITATION REQUIRED vs. PLANNED INVESTMENTS US$220 million US$193 million DEFICIT REQUIRED INVESTIMENTS US$27 million PLANNED INVESTMENTS Source: Data from Central Government, Municipal Service Providers and Donor Agencies, processed by MAPAS. 1 The MDG WSS targets for Honduras is to ensure access to improved drinking water and sanitation services for 88 percent and 75 percent of the population, respectively, by 2015. Monitoring Country Progress in Drinking Water and Sanitation 3 In order to estimate the investment needed to provide drinking water urban areas. Figure 3 shows the gap between the planned annual and sanitation services to both urban and rural populations who do investments and the annual public-only requirements by subsector. not have access, the MAPAS financial tool uses as a reference the WSS sector targets set in Honduras’s National Plan/Country Vision: ensuring The required investments are significantly higher than the amounts 95 percent coverage by improved water and sanitation services by considered in planning exercises for the WSS sector, and the 2022. The estimate also takes into account the limited performance of gaps between planned and required investment are larger than existing services, which prevents the service providers from improving the budgetary resources available. Considering the tight budget and expanding by using their own financial resources. and limited fiscal space in Honduras, it seems unlikely that the investments can be increased to the required levels to achieve the Figure 1 illustrates the gap between planned annual investment water and sanitation goals. of US$75million and the annual investment (public and private) of US$425 million required to attain the Government’s targets for water It is therefore crucial for the Honduran water sector to adopt financial and sanitation by 2022. The investment gap in sanitation is US$193 policy alternatives that (1) promote new tariff schemes that allow million per year and in water US$157 million per year, resulting in a service providers to recover cost and improve their efficiency, (2) total annual deficit of US$350 million. Figure 2 breaks down the same define subsidies to allow affordable services for poorer citizens, and required investment of US$425 million into new and replacement/ (3) strengthen the financing capacity of utilities so they can afford to rehabilitation investment needs in water and sanitation by rural and make a portion of the needed investments. Figure 2 | Financial Requirements to Attain National Goals by 2022: New Investments versus Replacement & Rehabilitation Investments TOTAL: REQUIRED NEW INVESTMENTS, REPLACEMENT AND REHABILITATION DRINKING SANITATION US$175 million US$250 million WATER SUPPLY 150 100 47 NEW REPLACEMENT AND 67 60 76 INVESTMENTS 50 44 69 REHABILITATION 33 29 URBAN RURAL URBAN RURAL NEW CAPITAL INVESTMENTS (MILLION US$/YEAR) STOCK CAPITAL REPLACEMENT / REHABILITATION (MILLION US$/YEAR) Figure 3 | Financial Requirements to Attain National Goals by 2022: Required Public Investments versus Planned Public Investments TOTAL REQUIRED AND PLANNED PUBLIC INVESTMENTS DRINKING SANITATION WATER SUPPLY US$339 million US$75 million 150 100 PLANNED 50 81 94 REQUIRED INVESTMENTS 89 75 INVESTMENTS 24 24 16 11 URBAN RURAL URBAN RURAL REQUIRED PUBLIC INVESTMENTS (MILLION US$/YEAR) PLANNED PUBLIC INVESTMENTS (MILLION US$/YEAR) 4 MAPAS Honduras THE MAPAS SCORECARD obtained through sector activities, and (3) the sustainability of the The scorecard evaluates the service delivery pathway through which results and services provided. the country transforms sector funding into sustainable water and sanitation services for each of four subsectors: rural water, urban Each building block is scored from a minimum of 0 up to 3, depending water, rural sanitation and hygiene, and urban sanitation and hygiene on three to five indicators per dimension. (table 1). The scorecard uses a traffic-light color code. A green block means a The service delivery pathway is evaluated through nine building highly satisfactory score (higher than 2); a yellow block means a neutral blocks, which are grouped in three main pillars, to look at: (1) the score (between 1 and 2); and a red block means an unsatisfactory score effectiveness of the institutional framework, (2) the concrete results (below 1). Table 1 | Drinking Water and Sanitation Scorecard for Honduras Institutional framework Development in the sector Sustainability Subsector Average score Policies Planning Budget Expenditures Equity Results Operation & maintenance Expansion Users Rural Water 1 2 0 1.5 1 0.5 0.9 0.8 1 1.5 Urban Water 0.9 1 0 1 2 0.5 1 1 0.5 0.9 Rural Sanitation 0.7 1.5 0 1 1 0 0.8 0.8 1 0.4 ang Hygiene Urban Sanitation 0.6 1.5 0 1 1 0 0 0.6 0.5 0.8 and Hygiene Average score 0.8 1.5 0 1.1 1.3 0.3 0.7 0.8 0.8 0.9 0.9 0.7 0.8 Average score Average score Average score Legend: Low: <1 Medium: From 1 to 2 High: >2 SCORECARD RESULTS AND PRIORITIES The scorecard reveals the major barriers that prevent the delivery 5. Promote tariff schemes that enable service providers to recover of quality, sustainable services, and these become the priorities for cost and improve their efficiency in the large and intermediate- reform: sized cities. 6. Strengthen local postconstruction support mechanisms to 1. Establish an effective sector governing body to apply policies improve the sustainability of rural services. and coordinate the sector. 7. Provide funds to extend, rehabilitate, and replace the existing 2. Implement a sector-wide programmatic planning approach systems. aligned with the national planning system. 8. Promote users’ participation in service management. 3. Use equity criteria to direct investment toward populations without access to WSS services. Addressing these challenges will lead to a greater probability of 4. Complete the decentralization of the WSS services to the sustaining the results achieved and meeting the Government’s municipalities and create autonomous utilities. targets set in the National Plan/Country Vision by 2022. Monitoring Country Progress in Drinking Water and Sanitation 5 PRIORITY ACTIONS sector DRINKING WATER AND SANITATION • Raise the profile of the sector within the Government’s national priorities. • E nsure sound political and technical functioning of governance so the sector can operate efficiently and effectively, spearheading the process of sector reform. • E nsure effective regulation of services and establish a mechanism for technical assistance to providers to improve the efficiency and quality of service provision. • E stablish a sector-wide, programmatic, needs-based planning approach aligned with the national planning system to attain the Government’s targets for water and sanitation by 2022. • H ave the Government assign sufficient annual budget allocations to make the work of the sector’s institutions feasible, and leverage those funds to implement the sector plan. • D evelop and validate programs to strengthen provider capacities, competencies, and monitoring. • Implement clear, applicable standards in quality surveillance and service control. • D evelop and apply tariffs that account for the real costs of providing urban and rural water services and ensure the financial and social sustainability of the services. • Establish funds to invest in the replacement, rehabilitation, or extension of the systems. • Implement an information system to measure sector progress and support planning. • I nclude risk management and water sources protection measures in sector policy and practice. • Consider the users in service planning and management processes. • E nsure technical, financial, and environmental sustainability of systems and service providers. • Increase citizen participation in service management, supervision, and control. • Improve user satisfaction with drinking water and sanitation services. 6 MAPAS Honduras Priority actions subsector RURAL DRINKING WATER SUPPLY Institutional • Develop and implement a national plan for rural drinking water consistent with national policy. framework • Develop strategies for the sector to serve both sparsely populated rural areas and rural areas with concentrated populations. • Strengthen local capabilities through principles of association and solidarity, working within municipalities for the improvement and rehabilitation of existing infrastructure (with an emphasis on rural areas with concentrated populations). • In sparsely populated rural areas, take advantage of the strengthening of local organizations such as municipalities,water boards, and NGOs; to stimulate actions to reach villages in each municipality that do not yet have access to drinking water. Sector • Ensure budget allocations for rural drinking water, bearing in mind that this population is growing. development • Create and execute plans for strengthening the water boards and rehabilitating infrastructures that are becoming obsolete, determining the real costs and a methodology for measuring these costs. • Allocate resources to rehabilitate and improve systems, and have those resources managed directly by water boards. • Consolidate the Rural Water and Sanitation Information System, SIASAR, as the official source of coverage data. Sustainability • Support programs that train operations and maintenance technicians to ensure the sustainability of the systems and programs that train environmental health technicians to improve water quality monitoring systems. • Support the AJAMs, COMASs, and USCL. • Strengthen rural water boards and national implementers of comprehensive rural drinking water programs and projects. • Foster a culture of paying for service that recognizes water’s economic value and the need to conserve water resources. subsector URBAN drinking Water SUPPLY Institutional • Establish clear, practical regulations that facilitate universal access to drinking water in urban areas. framework • Strengthen the municipal and community management models for service provision. • Create a municipal model for planning and implementing local projects aimed at the rehabilitation and expansion of infrastructure. • Design and implement comprehensive individual programs and plans consistent with sector-wide policy and planning. Sector • Allocate investments to the rehabilitation or reconstruction of drinking water systems. development • Strengthen municipal capacities for planning and access to financial instruments that complement those offered by the central government. • Create and apply urban development regulations specific to municipal drinking water supply (for drinking water and sanitation in general). • Create mechanisms for financing the cost of transferring systems from the National Autonomous Water and Sewage Service (SANAA) to municipalities or specialized agencies with administrative and financial autonomy. • Strengthen and increase the coverage of information systems for measurement and evaluation. • Create a mechanism for financial and institutional support to providers. Sustainability • Strengthen the capacity of providers to ensure continuous, high quality, and efficient services by including citizen participation in planning. • Guarantee that services will be provided with efficiency, quality, and continuity as well as with citizen participation. • Prioritize the creation and strengthening of service providers with administrative and financial autonomy. • Cover the costs of services with the tariffs. • Guarantee that the funds collected for service delivery are nontransferable and are used in the subsector or sector. • Improve the efficiency of service management, developing a culture of public company efficiency with elements of citizen participation. • Develop a mechanism for financial and institutional support for service providers. • Ensure drinking water quality and suitability for healthy human consumption. • Implement micrometering as a mechanism to reduce loss and promote rational use of water. Monitoring Country Progress in Drinking Water and Sanitation 7 Priority actions subsector Rural SANITATION AND HYGIENE Institutional • Increase consistency across programs, subsector plans, and national policy. framework • Differentiate the sanitation plans and strategies for concentrated rural communities compared to scattered populated rural areas, whose characteristics demand different sanitation technologies. • Strengthen the capabilities of municipalities to design and implement basic sanitation projects in rural communities. • Make the local water board accountable for the sanitation services and the monitoring thereof. Sector • Implement strategies to protect and preserve water sources and micro watersheds. development • Execute direct support programs for the postconstruction phase of sanitation projects. • Approve programs for strengthening service providers’ capacities. • Improve relations between communities and local governments to jointly identify sanitation solutions, execute assessments, implement projects, and strengthen water boards and community organizations. These aspects must be reflected in sanitation policies and strategies. Sustainability • Design monitoring mechanisms to inform decision making on factors relevant to rural sanitation services sustainability (service quality, operation and maintenance, training needs, etc.). • Institutionalize the monitoring mechanism once it has been designed and approved. subsector urban SANITATION AND HYGIENE Institutional • Strengthen the capacity of the sector, with a focus on the local governments and service providers, creating the conditions framework necessary for effective management. • Promote the integration of municipal service providers, civil society organizations, and communities in order to provide urban sanitation services. Sector • Create comprehensive urban sanitation plans (comprehensive urban development), for drinking water and sanitation, creating development conditions for moving from basic to advanced services. Sanitation cannot be achieved without water service planning. • Strengthen surveillance, monitoring, and training processes. Sustainability • Reinforce the Drinking Water and Sanitation Services Regulatory Agency (ERSAPS) indicators for evaluating provider service with new indicators that consider basic sanitation solutions and the transformation from latrines to sanitary sewer technologies. These indicators must present a clear overview of a city’s status, including its evolution in terms of quality and coverage in urban sanitation. • Create a financing structure that will facilitate timely investments to provide quality services and prevent the collapse of sanitation systems. • Apply actual tariffs, not percentages, for sanitation payments. REFERENCES INE (Instituto Nacional de Estadísticas). 2012. Proyecciones de Población. Tegucigalpa: INE, http://www.ine.gob.hn/drupal/node/205. UNICEF. 2011. Estudio sobre exclusión en el sector de agua y saneamiento en Honduras [Study on exclusion in the water and sanitation sector in Honduras]. Tegucigalpa: Fondo de Población, UNICEF, http://www.unicef.org/honduras/Estudio_exclusion_sector_agua_saneamiento_honduras.pdf. WHO/UNICEF. 2013. Progress on Drinking Water and Sanitation: 2013 Update. New York: WHO/UNICEF Joint Monitoring Programme (JMP) for Water Supply and Sanitation. HONDURAS 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). The MAPAS initiative was implemented in Honduras at the request of the National Council for Drinking Water and Sanitation (CONASA) involving all sector institutions, stakeholders, and policy makers. National Council for Drinking Water and Sanitation - CONASA conasahn@yahoo.com www.conasa.hn 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