Report No: ACS17905 . Republic of Tunisia Tunisia WASH and Poverty Diagnostic Phase 2 Report: WASH Accounts . June 2017 . GWA05 MIDDLE EAST AND NORTH AFRICA . June 2017 - Final Report WASH Accounts for Tunisia . Standard Disclaimer: . This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. . Copyright Statement: . The material in this publication is copyrighted. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail pubrights@worldbank.org. 2 © Oxford Policy Management WASH Accounts for Tunisia Tunisia WASH Poverty Diagnostic WASH Accounts for Tunisia Phase 2 report 3 © Oxford Policy Management WASH Accounts for Tunisia Authors MM, FS, AM Validation AM, IR Quality Control IR, ST © Oxford Policy Management i WASH Accounts for Tunisia Acknowledgments This report discusses the findings of the second phase of the Tunisia WASH and Poverty Diagnostic, conducted by the World Bank. The implementation of the diagnostic was entrusted to the consulting firm Oxford Policy Management (OPM) and was led by Ms. Sophie Trémolet, Task Team Leader (TTL) at the World Bank. The report was drafted by Mr. Madih Mnif (Independent Consultant), Ms. Faouzia Said (Independent Consultant), Ms. Ana Mujica (OPM), and Mr. Ian Ross (OPM). The Tunisia diagnostic was steered by a Steering Committee, comprised of members of several ministries and institutions working in the WASH sector and chaired by Mr. Belgacem Ayed, Head of the General Committee for Regional and Sectoral Development within the Ministry of Development, Investment, and International Cooperation (MDICI). Ms. Radhia Ben Aziza, Head of Unit at the Directorate of Infrastructure at MDICI was the focal point of the diagnostic. The team would like to thank all members of the Steering Committee, especially Mr. Belgacem Ayed and Ms. Radhia Ben Aziza, for their material and moral support. The World Bank expresses its deep appreciation of the collaboration of the Government of Tunisia- especially the Ministry of Agriculture, the Ministry of International Cooperation and Investment, SONEDE, ONAS, and INS in the preparation of this report. The opinions expressed herein are those of the authors and do not necessarily reflect the views of the World Bank. Any mistake or omission is the responsibility of the authors. © Oxford Policy Management ii WASH Accounts for Tunisia Executive Summary Background Tunisia has made substantial progress in improving its population's access to drinking water and sanitation services over the past decades. From 1990 to 2012, the rate of access to improved drinking water went up from 82% to 97%, whereas the rate of access to improved sanitation increased from 73% to 92% (EGIM, 2012). More than four million people gained access to sanitation between 1990 and 2015. Despite this progress, approximately 250,000 people are still using unimproved sources - mainly wells, as well as other unprotected sources - to supply themselves with drinking water. On top of that, 900,000 people are using unimproved sanitation services. The sixth Sustainable Development Goal binds Tunisia to guarantee universal access to water and sanitation services (WASH). This includes ensuring adequate management of fecal sludge and wastewaters across the full chain of sanitation services. This also calls for a safely managed universal access to water supply, which entails that all households should have on- parcel access to water by 2030. Tunisia is divided in 7 regions and 24 governorates and 33% of its 11 million inhabitants live in rural areas. Most WASH services in Tunisia are ensured by two public utilities. The main water service provider is SONEDE (Société Nationale d'Exploitation et de Distribution des Eaux, i.e. National Water Development and Distribution Company) - it serves 100% of the urban population and 51% of the rural population. The majority of the remaining rural populations are supplied by the Rural Engineering services. The management of drinking water is ensured by GDAs (Groupements de Développement Agricole, i.e. Agricultural Development Groups). GDAs are community-based entities tasked with ensuring water distribution for human consumption and irrigated farming. Sanitation services, mainly sanitation and waste water treatment, are provided by the public utility ONAS (Office National d'Assainissement, i.e. National Office of Sanitation). ONAS is in charge of ensuring services in communes located in its coverage area (covered communes). The State may entrust it with the implementation of sanitation infrastructure even out of its covered communes, sometime in rural localities as part of rural sanitation projects. Responsibilities as regards rural sanitation were defined in an inter-ministry council in June 2016 and have been distributed between ONAS (in charge of localities of more than 3,000 inhabitants), regional councils, communes and local communities with the support of CRDAs. However, legal texts (decrees and acts) required for actual effectiveness of responsibilities as regards rural sanitation in Tunisia have not yet been published. It was in this context that the Tunisia Poverty and Access to Water, Sanitation, and Hygiene Diagnostic (WPD) was launched. Phase 1 of the diagnostic looked into links between WASH and multidimensional poverty. Phase 2 reviewed financial flows in the WASH sector, to allow for better targeting of financial resources at the areas that need them the most. Methodology The review used the methodology developed by the TrackFin initiative of the World Health Organization. This methodology aims to improve the monitoring and analysis of financial flows in the WASH sector at the national level and allows for answering four key questions: 1. What is the total amount of expenditures in the sector and how did it change over time? © Oxford Policy Management iii WASH Accounts for Tunisia 2. How are the funds distributed across the different sectors (water and sanitation), types of WASH services, types of area, and types of water- and sanitation-related expenditures? 3. Who pays for WASH services and how much? 4. Which entities are the main vehicles of funding of the sector and how much do they contribute to total expenditures? Considering the findings of the WPD Phase 1, which indicate a close relation between poverty, its spatial distribution (at the level of regions and governorates), and access to WASH services, additional questions were expressed: 1. How are public expenditures in the WASH sector distributed across governorates? 2. How can these expenditures per governorate be compared with the data on the regional distribution of poverty, access to WASH services, nutrition, or other socioeconomic indicators? Under the TrackFin methodology, the review draws on six types of classifications laid down in the guidance document on WASH Accounts estimation:  WASH services: water, sanitation, etc.  WASH service uses: domestic, non-domestic, etc.  Service providers: companies providing networked services, community-based organizations, etc.  Financing units: users, national authorities, etc.  Types of funding: tariffs, national public transfers, etc.  Types of costs: investment costs, operating and maintenance costs etc. Findings Total WASH expenditures (both public and private, in nominal terms) increased by approximately 17% on an annual basis between 2013 and 2015. Total WASH expenditures increased between 2013 and 2015, from TND 958 million to TND 1,317 million, i.e. approximately 1.5% of the GDP. Taking into account the inflation rates observed over the review period (5.7% in 2013, 4.8% in 2014, and 4.1% in 2015), the average annual increase in real terms is 12%. Expenditures per capita on water and sanitation are higher in urban areas than in rural ones. The higher level of water expenditures in urban areas versus rural areas is accounted for by higher levels of consumption and higher expenditures on bottled water. As for sanitation, levels of public and private expenditures are much lower in rural areas. Public expenditures on water and sanitation make up approximately 1.6% of the total amount of public expenditures, whereas health expenditures make up 14%. Total expenditures per capita on water and sanitation have slightly increased from TND 83 in 2013 to TND 112 in 2015, i.e. less than TND 10 per month. Nevertheless, wide disparities remain between urban and rural areas and across governorates. For instance, in 2015, total water and sanitation expenditures per capita in urban areas amounted to approximately TND 129, against only TND 75 © Oxford Policy Management iv WASH Accounts for Tunisia in rural areas. The disparity is even more marked between governorates, with total water and sanitation expenditures ranging from TND 58 per capita in Le Kef (one of the most vulnerable areas) to TND 214 in Tozeur in 2015.1 Most financial resources allocated to water and sanitation go to O&M, followed by investments. In 2013, O&M expenditures (including payroll expenditures, fuel, and other expenditures needed to run the services and keep them running) made up 65% of total water expenditures and 52% of sanitation ones. O&M costs do not include major capital maintenance costs (e.g. renewal of water and sanitation systems and rehabilitation works) which benefit from only 5% of the resources allocated to water and sanitation altogether, a situation that endangers the sustainability of the investments. Water and sanitation expenditures are mainly funded by households themselves , either through the payment of tariffs for the services rendered, or through investments in self -supply. This "private expenditure" is particularly high in predominantly urban governorates such as Tunis, Arianna, Ben Arous, and Monastir. The targeting of WASH public expenditures could be improved. Public water expenditures are fairly well targeted at governorates with high poverty rates. Investments are planned based on existing resources while prioritizing those governorates with service rates below the national average. Nonetheless, they could be better targeted at governorates with high numbers of population unserved by formal water providers. Both objectives should be achievable. Governorates with a high number of people unserved by formal water providers, such as Kairouan, do not receive comparatively higher amounts of public resources per capita, while this action might be necessary to bridge the gap. As for sanitation, as found in the review in this report, public expenditures are not sufficiently targeted at areas lacking access to the services and the challenge of rural sanitation should be given high priority. Unlike water, public expenditures on sanitation are in negative correlation with poverty levels. This is partly due to the lack of clear definition of service provision responsibilities in rural areas, i.e. areas where poverty is concentrated. While coverage of urban areas (i.e. communes) falls to ONAS, no service provider has actually been appointed to serve governorates that are predominantly rural. Although the distribution of public resources for sanitation should be a focus, especially in rural and poor areas, responsibilities relating to service provision should be clearly defined before any reallocation of financial resources is made. 1 The high level of expenditure in the governorate of Tozeur in 2015 was due to special circumstances, namely the implementation of desalination plant. © Oxford Policy Management v WASH Accounts for Tunisia Table of Contents Acknowledgments ii Executive Summary iii Background iii Methodology iii Findings iv List of Tables and Figures vii Acronyms and Abbreviations ix 1 Introduction 11 1.1 Background and objectives of the diagnostic 11 2 Background of Tunisia 13 2.1 Geography 13 2.2 Demographics and socioeconomic indicators 14 3 Overview of the WASH sector in Tunisia 18 3.1 Access to drinking water and sanitation services 18 3.2 Institutional organization 20 3.3 Sectoral plans and policies 21 3.4 Actors and financial flows in the WASH sector 22 4 Methodology for WASH Accounts 25 4.1 Scope of WASH Accounts 25 4.2 Classifications adopted to assess WASH Accounts 26 4.3 Data collection and processing methodology 26 5 WASH Accounts findings 38 5.1 Summary of findings 38 5.2 Geographic distribution of WASH sector expenditures 40 5.1 Structure of expenditures in the WASH sector 45 5.2 Funding of the WASH sector 51 5.3 WASH sector funding channels 60 6 Conclusions 63 7 Recommendations for future WASH accounts 66 References 68 Appendix A WASH Accounts Tables 70 Annex B Inventory of WASH data available 84 Annex C Classification of WASH Accounts 86 © Oxford Policy Management vi WASH Accounts for Tunisia List of Tables and Figures Figure 1 - Regions and governorates of Tunisia ..................................................................... 13 Figure 3 Level of rurality per governorate, 2015 ............................................................. 16 Figure 4 Poverty and extreme poverty per governorate, 2015 ...................................... 17 Figure 5 Organization of the water sector in Tunisia ...................................................... 21 Figure 6 Actors and financial flows – Drinking water ...................................................... 23 Figure 7 Actors and financial flows – Sanitation.............................................................. 24 Figure 8 Total expenditures of the WASH sector per type of area, 2013-15................ 42 Figure 9 Total expenditures of the water sector per type of area (rural/urban), 2013-15 42 Figure 10 Total expenditures of the sanitation sector per type of area (rural/urban), 2013-15 42 Figure 11 Total water and sanitation expenditures per capita per governorate, 2013-15 43 Figure 12 Total water and sanitation expenditures per capita in urban areas, 2013-15 44 Figure 13 Total water and sanitation expenditures per capita in rural areas, 2013-15 . 44 Figure 14 Average water and sanitation expenditures per capita (2013-15) and poverty rate (2015) per governorate ...................................................................................................... 45 Figure 15 Total expenditures of the WASH sector per type of service, 2013-15 ........... 45 Figure 16 Total water and sanitation expenditures per capita, 2013-15 ......................... 46 Figure 17 Total expenditures of the WASH sector per type of provider, 2013-15 ......... 47 Figure 18 Total expenditures of the water sector per type of provider, 2013-15............ 48 Figure 19 Total expenditures of the sanitation sector per type of provider, 2013-15 .... 48 Figure 20 Total expenditures of the WASH sector per type of use, 2013-15 ................. 49 Figure 21 Total expenditures of the WASH sector per type of cost, 2013-15 ................ 50 Figure 22 Total expenditures of the water sector per type of cost, 2013-15 .................. 50 Figure 23 Total expenditures of the sanitation sector per type of cost, 2013-15 ........... 50 Figure 24 Total expenditures of the WASH sector per type of funding, 2013-15........... 51 Figure 25 Total expenditures of the water sector per type of funding, 2013-15 ............. 52 Figure 26 Total expenditures of the sanitation sector per type of funding, 2013-15 ...... 52 Figure 27 Public and private expenditures in the water and sanitation sectors, 2013-15 53 Figure 28 Public and private expenditures in the water sector, 2013-15 ........................ 53 Figure 29 Public and private expenditures in the sanitation sectors, 2013-15 ............... 54 Figure 30 Annual public expenditures on water per capita and governorate, 2013-15 . 55 Figure 31 Annual public expenditures on sanitation per capita and governorate, 2013- 15 55 Figure 32 Annual private expenditures on water per capita and governorate, 2013-15 56 Figure 33 Annual private expenditures on sanitation per capita and governorate, 2013- 15 56 Figure 34 Annual expenditures on water per capita and governorate, 2013-15 average 57 Figure 35 Correlation between public expenditures on water per capita and governorate (2013-15 average) and poverty rate (2015) ....................................................... 58 Figure 36 Correlation between private expenditures on water per capita and governorate (2013-15 average) and poverty rate (2015) ....................................................... 58 Figure 37 Annual expenditures on sanitation per capita and governorate, 2013-15 average 59 Figure 38 Correlation between public expenditures on sanitation per capita and governorate (2013-15 average) and poverty rates (2015) ..................................................... 60 © Oxford Policy Management vii WASH Accounts for Tunisia Figure 39 Correlation between private expenditures on sanitation per capita and governorate (2013-15 average) and poverty rates (2015) ..................................................... 60 Figure 40 Total expenditures of the WASH sector per unit of funding, 2013-15............ 61 Figure 41 Total expenditures of the water sector per unit of funding, 2013-15 .............. 61 Figure 42 Total expenditures of the sanitation sector per unit of funding, 2013-15 ....... 62 Table 1 Population per regions and governorate ................................................................. 15 Table 2 Trends of the drinking water coverage in Tunisia .................................................. 18 Table 3 Availability and source of financial data .................................................................. 27 Table 4 Investments on DWS projects executed by Rural Engineering Units .................. 30 Table 5 Percentage of housings equipped with a private water source ............................ 32 Table 6 Equipment of households non-connected to a sanitation network ....................... 34 Table 7 WASH Accounts key indicators ............................................................................... 38 © Oxford Policy Management viii WASH Accounts for Tunisia Acronyms and Abbreviations AfDB African Development Bank AFH Agence Foncière d’Habitation (Land office for housing) AFI Agence Foncière Industrielle (Land office for industrial purposes) ANPE Agence Nationale de Protection de l’Environnement (National environmental protection agency) CGDR Commissariat Général de Développement Régional (General Commission for Regional Development) COPIL Steering Committee CPG Compagnie des Phosphates de Gafsa (Gafsa Phosphates Company) CRDA Regional Commissions for Agricultural Development DGDR Directorate General of Regional Development DGEQV Directorate General of the Environment and Quality of Life DGGREE Directorate General of Rural Engineering and Water Development DGRE Directorate General of Water Resources DHMPE Directorate of Environmental Health and Protection DWS Drinking Water Supply EIB European Investment Bank ENBCM Household Budget, Consumption, and Living Standard Survey EU European Union FMO Fiscal Management by Objective GCT Groupe Chimique Tunisien GDA Groupement de Développement Agricole (Agricultural Development Group) HDI Human Development Index INS Institut National de la Statistique (National Statistics Institute) IRDB International Bank for Reconstruction and Development JICA Japanese International Cooperation Agency JMP Joint Monitoring Program KfW German Public Investment Bank MALE Ministry of Local Affairs and the Environment MARHP Ministry of Agriculture, Hydraulic Resources, and Fisheries MDICI Ministry of Development, Investment, and International Cooperation MICS Multiple Indicator Cluster Survey MS Ministry of Health NGO Non Governmental Organization NWIS National Water Information System O&M Operation and Maintenance OECD Organization for Economic Co-operation and Development ONAS Office National de l’Assainissement (National Office of Sanitation) OPM Oxford Policy Management PAPS Program in Support of Public Policies RE Rural Engineering RGPH General Census of Population and Housing SBD Support to Budgetary Decision-making SDWS Monitoring, Planning, and Assistance System for Rural DWS Systems SNIT Société Nationale Immobilière de la Tunisie (Tunisia national real estate company) SONEDE Société Nationale d’Exploitation et de Distribution des Eaux (National Water Development and Distribution Company) SOP Strategic Operational Plan of SONEDE SPROLS Société de Promotion des Logements Sociaux (Social Housing Promotion Company) ToRs Terms of Reference © Oxford Policy Management ix WASH Accounts for Tunisia UNDP United Nations Development Program UNICEF United Nations Children's Fund WASH Water, Sanitation, and Hygiene WB World Bank WHO World Health Organization WPD WASH and Poverty Diagnostic WTP Water Treatment Plant © Oxford Policy Management x WASH Accounts for Tunisia 1 Introduction 1.1 Background and objectives of the diagnostic The first phase of the Tunisia Poverty and Access to Water, Sanitation, and Hygiene (WASH) Diagnostic reviewed links between WASH and multidimensional poverty. The diagnostic especially assessed four key dimensions of WASH and poverty: 1. The social and economic profiles of access to WASH services 2. Correlations between WASH services and monetary well-being 3. Effects of adequate access to WASH services on child nutrition 4. Impacts of changes in WASH service tariffs on equity and poverty Regarding the funding of the WASH sector, Phase I of the diagnostic especially highlighted the need to adjust financial flows and the fact that better resource allocation would increase the rates of access to improved water and sanitation facilities among unserved populations and regions. However, the cost structure of WASH services, as well as the general funding of the sector showed major gaps (e.g.: amounts, sources, cost recovery, etc.). Against this backdrop, this second phase of the WASH and Poverty Diagnosis (WPD) proposes to review financial flows for the purpose of developing an overall vision of the funding of the WASH sector and providing better understanding of the funding of the sector. Specifically, this review establishes where funding come from (sources) and how they are assigned to the different sectors, areas or regions, types of providers (public, networked, non-networked, etc.), and type of funding (tariffs, transfers, loans, etc.). The review of financial flow used the methodology developed by the TrackFin initiative of the World Health Organization (WHO)2. This methodology aims to improve the monitoring and analysis of financial flows in the WASH sector at the national level, allow for making comparisons across countries, and contribute to the reinforcement of national financial information collection and analysis systems. The TrackFin methodology allows for answering four key questions: 1. What is the total amount of expenditures in the sector and how did it change over time? 2. How are the funds distributed across the different sectors (water and sanitation), types of WASH services, types of area, and types of water- and sanitation-related expenditures? 3. Who pays for WASH services and how much? 4. Which entities are the main vehicles of funding of the sector and how much do they contribute to total expenditures? 2 The guidance document (in English) on the TrackFin methodology is available on WHO's site: TrackFin Guidance Document © Oxford Policy Management 11 WASH Accounts for Tunisia Considering the results of Phase 1 of WPD, which indicate close correlation between poverty, its spatial distribution, and access to WASH services, additional policy-related questions were raised. These questions aim to assess the extent to which the distribution of funding can contribute to reducing inequalities of access to WASH services: 1. How are public expenditures in the WASH sector distributed across governorates? 2. How can these expenditures per governorate be compared with the data on the regional distribution of poverty, access to WASH services, nutrition, or other socioeconomic indicators? A review of financial flows in the WASH sector can help the Government of Tunisia improve public funding allocation, so as to generate maximum benefits, especially for the poorest households and most vulnerable regions. More generally, this review allows to:  Define strategies for advocating for resource allocation to the water and sanitation sectors  Plan future investments and their funding arrangements  Monitor resource use and sectoral objective achievement  Ensure coordination within and across sectors The outcomes, or WASH Accounts, also provide the basis for expressing recommendations for a better allocation of sectoral funds, especially public resources, and on the way results can be used to define sectoral policies, which allow for reducing inequalities of access to WASH services. The outcomes can help define support to the WASH sector in Tunisia. This report is structured as follows:  Section 2 provides a description of the background, geography, demographics, and key social and economic indicators of Tunisia  Section 3 provides an overview of the WASH sector in Tunisia and a description of the mapping of key actors and financial flows  Section 4 sets forth the scope of WASH Accounts, the key classifications used for financial flows, assumptions, and other methodological observations considered in data collection and analysis  Section 5 provides the estimations and key indicators of WASH Accounts in Tunisia. Results are interpreted in the light of the key policy issues and findings of the WPD Phase I  Section 6 recounts the key findings of WASH Accounts  Section 7 expresses methodological recommendations for future WASH Accounts exercises in Tunisia  Annexes include detailed WASH Accounts tables, a summary of data sources, and the classifications used for the analysis. © Oxford Policy Management 12 WASH Accounts for Tunisia 2 Background of Tunisia 2.1 Geography3 Tunisia has a total surface area of 163,610km 2. It is divided in four physiographic regions - the mountains of the Northwest, the mountains of the South, the coastal plains, and desert plains - and in 24 governorates, shown in Error! Reference source not found.. Tunisia has a Mediterranean climate, with an average rainfall of 207mm per year. However, the spatial distribution of rainfall varies substantially: annual rainfall amounts to 594mm in the North, 296mm in the Center, 156mm in the South, and less than 100mm in the extreme Southwest (Tataouine). Nearly 70% of the surface area of the country can support vegetation but this area is slightly decreasing because of the development of urban centers and water dams and increasing desertification. Figure 1 - Regions and governorates of Tunisia4 3 This section is mainly based on content from FAO (2016). 4 Tunisia is divided in 24 governorates, each one of which comprises several delegations. Individual delegations comprise, in turn, several sectors which are the smallest administrative division of the country. © Oxford Policy Management 13 WASH Accounts for Tunisia The water system is dense in the North - Northern basins account for approximately 82% of the surface water inputs of the country - while, on the other hand, the system is scattered in the Center and South, with basins providing poor and erratic inputs. The North is also characterized by a wealth of surface water, whereas the Center and South have lower quality groundwater: they are located deeper and are not all renewable. Two categories of groundwater resources exist:  Water tables (of a maximum depth of 50m) which can be used for private or public use and with a potential estimated at 745 million m 3/year  Deep groundwaters (more than 50m deep), with a potential estimated at 1.420 million m3/year. Access to deep groundwaters require specific authorization. The uneven geographic distribution of water resources accounts for the existing water transfer infrastructures from the North to coastal towns, i.e. the big dams and supply of coastal towns with groundwater in the central part of the country. There are also several desalination plants, mainly intended to ensure the drinking water supply to urban centers in the Southeast. 2.2 Demographics and socioeconomic indicators In 2014, the total population of Tunisia was estimated at 11 million inhabitants. It grew by a rate of 11% between 2004 and 2014, i.e. approximately 1% per year. The population growth rate has been decreasing from an average of 2% per year since the 1980s and Tunisia has been going through a period of demographic transition: while the proportion of the population aged 60 on increased from 7 to 11% between 1984 and 2014, the population aged between 0 and 4 decreased from 15% to 9% (INS, 2016). Estimations also show that approximately one third of the population lives in rural or non- communal areas5, with a strong trend towards urbanization since the 1960s. The distribution of the population across regions and governorates is shown in Table 1. The regions of Greater Tunis and Central East concentrate approximately 48% of the population. This population is also rather urban: figures indicate that 100% of the population living in Tunis and Monastir reside in communes (urban areas). On the other hand, the smallest urban population is found in the governorate of Sidi Bouzid: it only makes up 27% of the total population of the governorate. Figure 2 more clearly shows the distribution of rurality in Tunisia. 5 Territories in Tunisia are classified as either communal (urban) or non-communal (rural). It is noted that communal areas, as defined by the National Statistics Institute (INS), "is a well-delineated part of the territory, instituted as such by a decree which subjects it to municipal law and is comprised of one or several urban sectors". Because rural communes do not exist in Tunisia, any part of the territory that is not under the commune status is considered rural. © Oxford Policy Management 14 WASH Accounts for Tunisia Table 1 Population per regions and governorate Population 2014 Region/Governorate % of the Thousands total Greater Tunis 2.644 24.1 Tunis 1.056 9.6 Ariana 576 5.2 Ben Arous 632 5.8 Manouba 380 3.5 Northeast 1.533 14.0 Nabeul 788 7.2 Zaghouan 177 1.6 Bizerte 568 5.2 Northwest 1.170 10.7 Béja 303 2.8 Jendouba 401 3.7 Le Kef 243 2.2 Siliana 223 2.0 Central East 2.590 23.6 Sousse 675 6.1 Monastir 549 5.0 Mahdia 411 3.7 FSax 955 8.7 Central West 1.439 13.1 Kairouan 570 5.2 Kasserine 439 4.0 Sidi Bouzid 430 3.9 South-East 1.003 9.1 Gabès 374 3.4 Médenine 480 4.4 Tataouine 149 1.4 Southwest 602 5.5 Gafsa 337 3.1 Tozeur 108 1.0 Kebili 157 1.4 Total 10.982 100.0 Source: INS (2016). © Oxford Policy Management 15 WASH Accounts for Tunisia Figure 2 Level of rurality per governorate, 2015 Source: Estimations based on INS (2015). Regarding socioeconomic indicators, Figure 3 shows poverty and extreme poverty rates, as well as the number of poor and extremely poor according to governorates. On one hand, it is noted that poverty is concentrated in the regions of the Northwest (28% of the region's population) and Central West (31% of the region's population). Greater Tunis holds the lowest poverty and extreme poverty rates: poverty concerns only 5% of the population in the region. Poverty rates tend to be higher in the more rural governorates. At the national level, the poverty rate reached 15% in 2015 compared to 25% in 2000. Also, the extreme poverty rate reached 3% in 2015 compared to 8% in 2000. © Oxford Policy Management 16 WASH Accounts for Tunisia Figure 3 Poverty and extreme poverty per governorate, 2015 Poverty rate Extreme poverty rate Source: INS (2016). Tunisia has made significant progress in terms of human development. According to the 2015 report of the United Nations Development Program (UNDP), Tunisia ranks 96 th out of 187 countries when considering its human development index (HDI), an index that encompasses health, education, and standard of living aspects. In fact, Tunisia's HDI has increased from 0.49 in 1980 to 0.72 in 2014 and all its health and education indicators have followed this upward trend. Life expectancy at birth reached 75 years and under 5 mortality has been reduced to 16 per 1,000 births in 2014 (UNDP, 2015). © Oxford Policy Management 17 WASH Accounts for Tunisia 3 Overview of the WASH sector in Tunisia 3.1 Access to drinking water and sanitation services 3.1.1 Drinking water The drinking water sector in Tunisia is mainly managed in two ways: 1. SONEDE has mandate to ensure water supply across the Tunisian territory. Currently, SONEDE supplies water to all urban areas as well as rural agglomerations. In 2015, SONEDE ensured the drinking water supply of 85% of the Tunisian population. This rate includes 100% of the urban population and 51% of the rural population. In total, the population served with drinking water by SONEDE is in the region of 9.5million (Table 2). 2. The Rural Engineering services of the Ministry of Agriculture, Water Resources and Fisheries are in charge of implementing drinking water systems in scattered rural areas. The systems are managed by GDAs. Currently, there are approximately 1,400 drinking water GDAs and 140 mixed GDAs for drinking water supply (DWS) and irrigation (Table 2). These associations benefit from support and supervision from the Rural Engineering services, namely at setting up. According to the 2015 Joint Monitoring Program (JMP) of WHO and UNICEF, about 2% of the Tunisian population (unserved) supply themselves from unprotected wells or sources, surface waters (e.g. rivers), or other unimproved sources of water (e.g. cistern or cart). 6 The table hereafter summarizes the data relating to the population served by SONEDE and DGGREE in years 2014 and 2015 based on figures from SONEDE, namely access rate to improved services as indicated in the MICS. Table 2 Trends of the drinking water coverage in Tunisia 2014 2015 Population in million Population in million Item Coverage Coverage inhabitants inhabitants rate7 rate Total Served Total Served Urban 7.5 7.5 100% 7.6 7.6 100% SONEDE 1.8 50.9% 1.9 51.3% Rural DGGREE 3.6 1.5 41.3% 3.6 1.5 41.4% Total 3.3 92.2% 3.3 92.6% Total 11.1 10.8 97.5% 11.2 11.0 97.6% Source: SONEDE's Statistical Report (2015). 6 World Bank (2016). 2015 Tunisia Poverty - Access to Water, Sanitation, and Hygiene (WASH-P) Diagnostic: Elementary Report. 7 The coverage rate (%) is calculated by establishing the ratio between the served population and the total population. In Tunisia, a population is considered covered whenever it is located within 500 meters of the nearest water supply point, not 1km as set by WHO. © Oxford Policy Management 18 WASH Accounts for Tunisia 3.1.2 Sanitation The sector of sanitation in Tunisia has significantly developed since the creation of ONAS in 1974. Indeed, ONAS, the main sanitation operator in Tunisia, has completed several study programs and works to equip various Tunisian towns with sanitation networks and water treatment infrastructures. Urban areas ONAS currently works in 173 communes out of a total of 283 distributed across the entire Republic. The towns covered by ONAS hold a population of 6.8 million inhabitants, making up 91% of the country's urban population (7.4 million inhabitants in 2014). 8 Communes that are not covered by ONAS (110 Communes) are generally small. These communes have poor or no sanitation infrastructures. Households use septic tanks or cesspools. The number of inhabitants connected to the sanitation network in the communes covered by ONAS amounts to approximately 6.2 million (2014), i.e. a rate of connection of 91%. Households that are not connected to the ONAS network use septic tanks or cesspools. It is noted that the Government can request ONAS to construct sanitation infrastructure works even out of the communes it covers. Rural areas ONAS's mandate does not include rural sanitation but since the rural commune status does not exist and governorate councils are not equipped to perform this activity, it would appear that there are no institutional provisions to govern rural sanitation. It was in this context that, as early as 1999, ONAS was tasked with conducting a strategic study to determine sanitation systems suited to rural areas and setting up a management mode allowing to ensure the sustainability of the structures planned. The study allowed for defining a priority action plan involving 50 localities. Under a pilot project, ONAS embarked into a first round in 2001, resulting in the sanitation of up to 26 localities, with about 32,000 inhabitants. According to the 2015 JMP of WHO/ UNICEF, about 92% of the Tunisian population has access to improved sanitation; this entails that approximately 900,000 people do not have access to an improved sanitation facility. Approximately 7% of the population use unimproved sanitation facilities that range from shared toilets to pit latrines and wall-hung toilets, with 1% practicing open air defecation. When the place of residence is considered, strong disparities are found between urban and rural areas. In 2015, approximately 97% of Tunisians living in urban areas used improved facilities, compared to 80% of those living in rural areas. To ensure sanitation services in rural areas and to remedy to the noted institutional vacuum, it was decided during an interministerial council, dated June 13, 2016, that the responsibilities for rural sanitation will be assigned as follows, according to locality size: 8 Calculated on the basis of data from INS and ONAS (List of Communes covered). © Oxford Policy Management 19 WASH Accounts for Tunisia  In localities where the population exceeds 3,000 inhabitants, sanitation services will be ensured by ONAS who will collect sanitation tariffs in this regard  In localities where the population ranges between 1,000 and 3,000 inhabitants, the sanitation service falls to the Regional Councils and Communes, under the lead of the Ministry of Local Affairs and Environment, with the participation of the private sector and technical assistance of ONAS  In localities with a population under 1,000 inhabitants, the population will be encouraged to use on-site sanitation systems with the support of CRDAs. The Ministry of Agriculture, Water Resources and Fisheries has been invited to plan for the mechanisms required to help construct these infrastructures. It must be noted that the legal texts (decrees and acts) required for the enforcement of sanitation responsibilities in rural areas in Tunisia have not yet been published. It may be a better option to implement collective sanitation facilities in the case of some localities with less than 1,000 inhabitants but where habitat is grouped. 3.2 Institutional organization The drinking water and sanitation services provision in Tunisia is almost entirely ensured by the public sector. The institutional organization of the sector is structured around:  The Ministry of Agriculture, Water Resources, and Fisheries (MARHP) for water policy (urban and rural)  The Ministry of Local Affairs and the Environment (MALE) for sanitation policy (urban and rural); and  Two historic public operators – the Société Nationale d’Exploitation et de Distribution des Eaux (SONEDE), in charge of drinking water supply services since 1968 and the Office National de l’Assainissement (ONAS), in charge of sanitation services in communal areas since 1974.  The Rural Engineering Units at the Ministry of Agriculture, Water Resources and Fisheries are in charge of providing water services in rural areas not served by SONEDE. Users' associations called Groupement de Développement Agricole (GDA) are appointed to manage the services in the field of rural drinking water supply. Other public actors, such as the Ministry of Development, Investment, and International Cooperation (MDICI) and Ministry of Health (MS) are also involved in the water and sanitation sector. Figure 4 summarizes the key institutions involved in the water sector. It is structured according to three levels of decision-making: 1. Advisory boards, represented by the National Water Council, chaired by the Ministry of Agriculture and comprised of representatives of several ministries, businesses, and national organizations © Oxford Policy Management 20 WASH Accounts for Tunisia 2. Bodies in charge of policies, represented by the ministerial departments involved in the drinking water and sanitation sector 3. Water utility operators and water users' associations Figure 4 Organization of the water sector in Tunisia Source: OECD water studies (La gouvernance des services de l’eau en Tunis ie, 2014). Adapted by the authors. 3.3 Sectoral plans and policies Tunisia’s new constitution, adopted in 2014, enshrines the right to water for all Tunisians. It falls to the Government and relevant institutions to guarantee the safeguarding and proper governance of water resources (SONEDE, 2014b). The Water Code, set in 1975, is the basic legal text governing any action in the water sector. Water policies in Tunisia mainly aim to increase water resource mobilization and include (FAO, 2016):  Master Plans (Waters of the North, Waters of the Center, Waters of the South) which are oriented on the setting up of water mobilization, distribution, and use infrastructures  The 1990-2000 National Ten-Year Strategy  The 2000-2011 Complementary Mobilization Strategy, and © Oxford Policy Management 21 WASH Accounts for Tunisia  The 2030 Long-Term Strategy All these plans and strategies allowed for defining current and future orientations for the development of the WASH sector, which are summarized as follows (MARHP, 2013)  Construction of medium- and small-sized structures to achieve a resource mobilization rate of 95%,  Integrated management of water resources,  Water saving and demand control for all users, and  Water resource protection. 3.4 Actors and financial flows in the WASH sector 3.4.1 Drinking water The key actors involved in the funding of the drinking water sector in Tunisia are:  The Ministry of Agriculture, Water Resources, and Fisheries, which is in charge of managing water resources and supply. It is the line ministry of public establishments working in the water sector, including SONEDE and CRDAs.  The Ministry of Development, Investment, and International Cooperation (MDICI), by reinforcing international and regional cooperation in the water sector through the directorates in charge of international cooperation and by promoting regional development through the Directorate General of Regional Directorate (DGDR) and the General Commission for Regional Development (CGDR).  The Ministry of Health, through the Directorate General of Environmental Health and Protection, which ensures the control of waters in terms of health both in rural and urban areas (drinking water, mineral water), as well as the sensitization of users and health education.  Regional Governorate Councils, through the development and implementation of regional development projects in the drinking water sector.  SONEDE has mandate to ensure the drinking water supply of urban areas across the Tunisian territory, as well as part of the rural areas.  DGGREE covers scattered rural areas through the Rural Engineering arrondissements of the Regional Agricultural Development Commissions (CRDAs) - twenty-four (24) arrondissements, i.e. one per CRDA. Rural DWS projects are planned under a close collaboration between DGGREE and SONEDE, in consultation with regional services.  Agricultural Development Groups (GDAs) are users' associations in charge of managing the drinking water supply systems set up by the Directorate of Rural Engineering of the Ministry of Agriculture in rural areas. They have a management contract with the administration. © Oxford Policy Management 22 WASH Accounts for Tunisia Figure 5 summarizes the mapping of actors, as well as financial flows in the drinking water sector. Figure 5 Actors and financial flows – Drinking water 3.4.2 Sanitation Key actors involved in the sanitation sector in Tunisia include:  The Ministry of Local Affairs and the Environment (MALE) through the units in charge of the Environment (formerly Ministry of the Environment). It is in charge of the general policy of the Government in the fields of environmental protection and has supervisory authority over the public establishments under its jurisdiction.  The Ministry of Development, Investment, and International Cooperation (MDICI) reinforces international and regional cooperation in the sanitation sector through the directorates in charge of international cooperation, DGDR, and CGDR.  The Ministry of Health through the Directorate General of Environmental Health and Protection, which ensures the sanitary control of waste and treated waters, as well as the sensitization of treated waste water users.  Regional Governorate Councils through the development and implementation of regional development projects in the sanitation sector. Regional Councils were tasked with operating the sanitation networks constructed by ONAS as part of the rural pilot project.  ONAS is the main operator in the sanitation sector in Tunisia. Its mandate is to control all sources of water pollution in its intervention areas. © Oxford Policy Management 23 WASH Accounts for Tunisia Figure 6 summarizes the mapping of actors, as well as financial flows in the sanitation sector. Figure 6 Actors and financial flows – Sanitation © Oxford Policy Management 24 WASH Accounts for Tunisia 4 Methodology for WASH Accounts The process followed for this exercise is the one proposed in the inception report. It is based on the methodological guide (guidance document) of the TrackFin initiative. The diagnostic was officially launched in Tunis, on October 7, 2016, during a launching workshop that involved a meeting convening the Steering Committee, the World Bank, and the Consultant in charge of the second phase of WPD (OPM). This launching workshop allowed for (i) defining the scope of WASH accounts (subsectors considered, period of the analysis, and geographic coverage) and (ii) identifying the key sectoral policy issues that WASH Accounts can help address. The launching step was followed by a preliminary data collection which the Consultant drew on to make an initial identification of the key actors of the WASH sector and financial flows, as well as an inventory of available documents and data (e.g. investments, fixed assets, operating and maintenance costs, etc.). The Consultant developed an Inception Report on the launching of the diagnostic which was submitted and discussed with the members of the Steering Committee during a workshop held on November 22, 2016. The key methodological issues highlighted in the Inception Report, especially the possibility of disaggregating data per governorate and type of area for each sector and the availability of data on self-supply, were discussed during this workshop. After this launching workshop, the Consultant continued collecting the required data with the relevant ministries and entities. The list of the documents collected is provided in Annex B. To develop the WASH Accounts, the data received had to undergo specific processing and the missing data had to be estimated. Flow estimation mainly pertained to geographic distribution, self-supply, and costs in support of the sector. These estimations are based on the data from the Institut National de Statistique (INS)9 and, among others, the data on water consumption from SONEDE. 4.1 Scope of WASH Accounts The diagnostic was identified to have the following scope during the discussions the Steering Committee members and the World Bank at the launching workshop and the initial inventory of the documents and data received. Sectors considered The WASH areas selected for this diagnostic include:  Drinking water - domestic or non-domestic (institutional, industrial, and commercial users)  Sanitation - domestic and non-domestic  Hygiene - domestic, as well as hygiene promotion activities conducted by the Ministry of Health 9 They include the 2004 and 2014 General Census of Population and Housing (RGPH) and the 2005-2010 and 2015 National Survey on Household Budget and Consumption (NSHBC). © Oxford Policy Management 25 WASH Accounts for Tunisia Period The period considered for the review are years 2013, 2014, and 2015. Geographic coverage The diagnostic covers urban and rural areas at the national level and includes a detailed review of each of the 24 governorates of Tunisia. 4.2 Classifications adopted to assess WASH Accounts This section provides a summary of the classifications used to assess WASH Accounts in Tunisia with respect to types of services, their use, and providers; types of funding; and types of costs. The classification set by the Consultant takes as reference the rankings proposed in the Inception Report of this diagnostic and the TrackFin guidance document. The proposed classifications are set forth in Annex C. As can be seen in the Annex, the definitions used in Tunisia are similar to those described in the TrackFin guidance document. Regarding WASH services, support to the sector (S4) had to be estimated on the basis of the budgets of the Ministries in charge of Agriculture and the Environment. For hygiene services (S5), the hygiene promotion conducted by the Ministry of Health, as well as household expenditures on soap for personal hygiene were considered. For domestic use of a provided service (U1), we considered the consumption of paid WASH services (whether networked or not) provided to households by operators (SONEDE, GDA, ONAS, mineral water bottling companies, and street vendors). For non-domestic use involving self-supply (U4), we considered non-domestic users such as the Groupe Chimique Tunisien (GCT) and the Compagnie des Phosphates de Gafsa (CPG). For service providers, non-networked service provision companies (P3), private water bottling companies, informal water retailers, and septic tank emptying businesses, promoters, and real estate developers were considered. Category P4 (NGOs and community-based organizations) mainly includes rural drinking water users' associations (GDAs). 10 Concerning financing units, FU3 (Regional Authorities) and FU4 (Local Authorities) categories are not relevant in Tunisia.11 Bilateral and multilateral donors (FU8) include IRDB, KfW, AFD, EU, EIB, AfDB, the Swiss Cooperation, and JICA. Banks and financial establishments (FU10) are not involved in funding the WASH sector. 4.3 Data collection and processing methodology This paragraph sets forth the key elements relating to the methodology used for collecting and processing the data provided by the different sources, as well as the key assumptions selected to estimate missing data, so as to establish the amounts of financial flows in each of the WASH services. 10 According to the interviews with managers, NGOs and community-based organizations provide but minimal funding to the WASH sector. 11 CRDAs represent the Ministry of Agriculture at the regional level. They are not decentralized administrative units. © Oxford Policy Management 26 WASH Accounts for Tunisia 4.3.1 Inventory of financial data on the WASH sector The table hereafter summarizes the availability of financial data and their source. Table 3 Availability and source of financial data Availability of Sources of funding Comments data Tariffs of the services Data on tariffs are generally available with service providers provided (networked (SONEDE, ONAS), and to a lesser extent with operators of service providers) the association type (GDAs). Tariffs of the services Estimations are based on the data from INS and the provided (non-networked assumptions made by the Consultant. service providers) Household expenditures Estimations are based on the data from INS and the on self-supply assumptions made by the Consultant. The data comes from several sources (relevant entities, National public transfers portal of the Ministry of Finance's site, etc.). International public The data on international public transfers is available at the transfers (public or government's level, but are not sufficiently disaggregated multilateral donor grants) per subsector (water / sanitation, urban / rural) Voluntary contributions, No data was obtained on NGOs. The funding that NGOs transfers (NGOs) provides to the sector in Tunisia is considered minimal Repayable financing The data come from several sources (service providers, (loans) ministries, etc.) Data available Data partially available Estimation Data unavailable The largest part of the financial data is available and provided by reliable sources. The overall amount of the flows from these sources make up approximately 85% of the total. In addition, the financial flow estimations were mainly based on the results of the INS censuses and surveys and statistics from SONEDE and ONAS. As such, the findings of this exercise can be considered reliable and provide a credible picture of the WASH sector's situation in Tunisia. 4.3.2 Water supply service Drinking water service provided by SONEDE The financial data on drinking water service users provided by SONEDE were mainly obtained from audit reports on the financial statements of SONEDE for years 2012, 2013, and 2015, as well as the management and development budget reports of the period between 2014 and 2016. The data are consistent and reliable. © Oxford Policy Management 27 WASH Accounts for Tunisia For SONEDE’s operating expenditures (e.g. payroll costs, power, chemical products, etc.), the Consultant used the database on the Management Accounts of year 2013 where management expenditures are distributed according to districts (39) and headquarter costs. Current expenditures per governorate were calculated by adding up the expenditures of all districts of a governorate and in consideration of the headquarters' costs share on the basis of the percentage of water volume sold per governorate against the total volume of water sold. The same distribution key was used for years 2014 and 2015. Operating expenditures relating to the drinking water supplied by SONEDE increased from TND 320 million in 2013 to TND 408 million, i.e. a nominal average increase by 13% per year. SONEDE's current expenditures were disaggregated per urban and rural areas, on the basis of the 2013 Management Accounts data used to distribute governorate expenditures. The distribution of expenditures per governorate and type of area (rural/urban) was based on the structure of the population covered per type of area for each of years 2013, 2014, and 2015. Ratios of approximately 80% and 20% were found in urban and rural areas respectively, at national level. The review of financial flow took into consideration public subsidies on the cost of energy. The subsidies were estimated at 27% of the energy expenditures of SONEDE 12 and were calculated on the basis of the 2014 baseline price. As a result, public subsidies on energy received by SONEDE increased from TND 14 million in 2013 to TND 18 million in 2015. Regarding SONEDE’s investment expenditures, the Consultant used the database on budget preparation which includes data on SONEDE projects per governorate, with details on forecasts, according to funding source (SONEDE, Government, loans, donations, etc.). On the other hand, actual expenditures (achievements) are not detailed. Concerning the estimation of investment expenditures per governorate and type of funding, the Consultant chose to use the same distribution as the one planned at budget preparation. It is noted that the project completion rate by SONEDE did not exceed 50% over the 2013-2015 period (achievements versus forecasts), which could be partially accounted for by the fact that the forecasts exceeded SONEDE's execution capacity by far, as well as the post-revolution social context. SONEDE's investment expenditures (actually completed) increased from TND 95 million in 2013 to TND 176 million in 2015, i.e. an average increase by 37% per year. Some projects completed by SONEDE cover more than one governorate. As such, regarding the distribution of investment expenditures across governorates, a distribution key was applied on the basis of the individual governorates' water consumption, versus the total water consumption.13 The distribution of the investment and operating expenditures on the drinking water supplied by SONEDE according to domestic and non-domestic use was based on the data relating to the consumed volumes included in SONEDE's Statistical Report. Domestic and non- domestic use respectively account for 77% and 23% of the total use. 12 With the information in the Financial Equilibrium Study by SONEDE. 13 It was not possible to base the distribution on the number of connections as it is difficult to distinguish new connections linked with new investments from those linked with the existing infrastructure. In fact, most of SONEDE's projects consist in reinforcing the existing infrastructure, as well as expanding networks. © Oxford Policy Management 28 WASH Accounts for Tunisia Drinking water service provided by GDAs The financial data on the use of the drinking water services provided by GDAs was obtained from the GDAs' database for years 2012, 2013, and 2014, as well as the budgetary data extracted from the SBD Budget Management System14 for years 2013, 2014, and 2015. The data were provided by the relevant units of the Ministry of Agriculture. The data derived from the SBD Budgetary Management System are reliable. However, data on GDAs were provided by the DGGREE units and are partial, pertaining to approximately one third of all GDAs. Their reliability is hard to confirm. In the light of the data provided, the Consultant based the estimation of the total current expenditures of GDAs (payroll costs, energy, chemicals, etc.) on the water consumption of GDA users and the average (actual) expenditures of GDAs per m 3 of distributed water. The average expenditure was estimated on the basis of the data provided, at approximately 0.700 TND/m3 for all governorates, except the governorate of Ariana where the expenditure amounts to 0.174 TND/m3 (which is equal to SONEDE's rate). For years 2014 and 2015, an estimated current expenditure increase rate amounting to 10% was applied to make estimates. The annual water consumption relating to GDA-provided services was estimated on the basis of the population served by the rural engineering units - i.e. the coverage rate per governorate from the Statistical Reports of SONEDE and the population per governorate indicated in INS reports - and specific consumption per governorate were calculated on the basis of GDA data. Once extreme values are removed, it appears that the average specific consumptions considered over the analysis period (2013-2015) vary according to governorates from 43 l/cap./day to 68 l/cap./day, with a national average of 50 l/cap./day. Total GDA expenditures calculated for year 2013 are in the region of TND 19 million. They increased to approximately TND 22 million in 2015. The review of financial flows also took into consideration public subsidies to the cost of energy that is provided by the Government to all users. This grant was estimated at 27% of the GDAs' energy expenditures as with SONEDE. Based on the detailed statement of GDA expenditures, GDAs' energy expenditures were estimated to amount to 25% of the total expenditures. The energy grant was equivalent to TND 1.3 million in 2013 and TND 1.5 million in 2015. Regarding the investment expenditures on the drinking water provided by GDAs, the Consultant used the data on drinking water projects completed by CRDAs provided by the Ministry of Agriculture. These data were provided per governorate and type of funding (public budget/ loan). Total investment expenditures on drinking water systems managed by GDAs increased from TND 30.4 million in 2013 to TND 73.2 million in 2015. This increase was mainly funded by AfDB loans. 15 The table hereafter summarizes the amounts invested on these projects. 14 Aide à la Décision Budgétaire (Support to Budgetary Decision-Making, SBD) is an application that tracks public expenditure execution. 15 The share of the projects' amount funded by the loan is transferred to the relevant CRDAs (implementing agency). The repayment of the loan (principal and interests) is made from the State budget as part of debt repayment. © Oxford Policy Management 29 WASH Accounts for Tunisia Table 4 Investments on DWS projects executed by Rural Engineering Units In million TND 2013 2014 2015 On State's own revenue 13.2 7.3 15.0 Loans 17.2 39.3 58.2 Total 30.4 46.6 73.2 Source: Ministry of Agriculture. The data on the investments on SDWSs managed by GDAs, made by the Ministry of Agriculture (through the Rural Engineering units of individual CRDAs), over the period considered, were provided by CRDA (per governorate). In addition to these investments and over the 2013-2015 period, MARHP incurred expenditures to support GDAs on major maintenance works of the facilities. These amounts increased from TND 1.0 million in 2013 to TND 2.8 million in 2015. Expenditures relating to new connections are borne by subscribers. They were estimated based on an average cost of TND 250 /connection. The number of new connections to the GDAs' water systems increased from approximately 6,000 connections in 2013 to approximately 15,000 in 2015, increasing the total number of households having a private connection from 146,000 in 2013 to 170,000. This extension is accounted for by the fact that households increasingly resort to private connections. Expenditures on new connections increased from TND 1.5 million in 2013 to TND 3.7 million in 2015. Regarding drinking water services provided by GDAs, we additionally considered the current expenditures of CRDA services, in relation with this activity. To estimate these expenditures, we have financial data derived from the ADEB System for the RE Subprogram of Program 3 of the MARHP Budget.16 The share of the drinking water supply activity in the RE Subprogram was estimated at 43%. This rate was calculated based on the average of the investment share on DWS projects, compared to the total amount of investments (DWS projects and irrigation projects) over the review period. The current expenditures of these CRDAs' services in relation with DWS increased from TND 7.4 million in 2013 to TND 10.0 million in 2015. Regarding the distribution across governorates and with only the data on the current expenditures of CRDA units for year 2014 available, we applied the same distribution key as for other years. It must be noted that the considered expenditures are those relating to the use of domestic drinking water supplied by GDAs. Drinking water supplied by non-networked service providers Non-networked drinking water service providers in Tunisia can be classified as either formal or informal providers. Informal providers are mainly cistern water vendors supplying themselves from a private or public or even uncontrolled source. 16 The MARHP budget is distributed among six programs that are individually broken down into subprograms. Program 3 is the Water program and it includes three subprograms: SP3.1 Water Resources; SP3.2 Dams and Major Hydraulic Works; and SP3.3 Rural Engineering. © Oxford Policy Management 30 WASH Accounts for Tunisia We have INS data on the number of households disaggregated per drinking water supply source for years 2004 and 2014 (2004 and 2014 Census), governorate, and type of area (rural/urban). The number of households that use a non-networked drinking water source has decreased from 217,000 in 2004 to approximately 187,000 in 2014. The expenditures of these households on water purchase were estimated on the basis of their water consumption and average expenditure per m3 of purchased water based on the following assumptions made by the report’s authors: The annual water consumption of these households was estimated on the basis of the following assumptions:  Water consumption: 25 l/cap/day.  Average purchasing price of one water cistern (5m 3): from TND 15 to 25 or from TND 3 to 5/m3 The total expenditures made on water purchases from informal providers in year 2015 were estimated at approximately TND 14,7 million. To estimate expenditures on water purchases for years 2013 and 2014, we calculated expenditures in year 2004 and came to estimate that the costs of the water purchased in 2014, as indicated above, annually increased by 3.6% over the 2004-2010 period. Although the number of households supplying themselves with informal service providers is decreasing (approximately 1.6% per year), the total expenditures on water purchase increased from TND 14 million in 2013 to TND 15.3 million in 2015. This increase is mainly due to increased water purchase costs. Formal drinking water supply service providers are mainly water bottling companies. We have data on the expenditures on mineral water of the seven socioeconomic regions of the country and according to type of area (urban, rural), from the 2005 and 2010 household consumption surveys. Expenditures on mineral water purchases were estimated per governorate on the basis of the number of inhabitants and average expenditure calculated for the relevant region. The average expenditure per region was calculated on the basis of the increase rate noted between 2005 and 2010 and corrected by the increase rate of mineral water companies' turnover between 2010 and 2015. Expenditures on mineral water purchases increased from TND 120 million in 2013 to TND 170 million in 2015. Drinking water - self-supply To estimate expenditures on drinking water self-supply, we used the data from the 2011-12 MICS survey on the percentage of housing equipped with a well or borehole, on one hand, and the percentage of those equipped with rainwater collection cisterns ( Majel / Feskia)17, on the other (Table 5). These percentages were applied to the new housing units constructed during years 2013, 2014, and 2015 and calculated on the basis of the data from the 2004 and 2014 General Census of Population and Housing (RGPH). 17 A Majel or Feskia is an indigenous water collection system that collects rainwater from the roof of a house and channels it to an underground cistern generally made of clay. © Oxford Policy Management 31 WASH Accounts for Tunisia Table 5 Percentage of housings equipped with a private water source Urban Rural Total Well/ borehole 0.9 % 4.8 % 2.3 % Majel / Feskia 9.7% 17.7 % 12.4 % Source: MICS (2012). The annual number of self-supply structures (wells, boreholes, Majels, Feskias) over the analysis period was estimated on the basis of the numbers of new housing units built, calculated on the basis of the results of the 2004 and 2014 RGBH censuses and applying an annual average increase rate. Expenditures in years 2013, 2014, and 2015 were estimated on the basis of unit investment costs on the following required structures:  For wells/ boreholes: between TND 600 in 2013 and TND 700 in 2015 in urban areas and between TND 500 in 2013 to TND 550 in 2015 in rural areas  For Majels/ Feskias: between TND 1,000 in 2013 and TND 1,200 in 2015 in urban areas and between TND 600 in 2013 to TND 700 in 2015 in rural areas Investment expenditures on self-supply increased from TND 9.8 million in 2013 to TND 11.6 million in 2015. The expenditures were fully assigned to domestic use. 4.3.3 Sanitation service ONAS-provided sanitation service The financial data on the use of the sanitation service provided by ONAS were mainly derived from the audit reports on the financial statements of ONAS for years 2013, 2014, and 2015 and from the ONAS projects database. To establish current expenditures (payroll costs, energy, chemicals, etc.) per governorate in year 2013, the Consultant used the information on operating costs (network and pumping stations) and water treatment costs per regional directorate derived from the Analytical Report of year 2013 (there is one regional directorate per governorate). The same distribution key was applied to years 2014 and 2015. The operating expenditures on the use of ONAS-provided sanitation services increased from TND 164 million in 2013 to TND 180 million in 2015, i.e. an average increase by 4% per year. Regarding the distribution of current expenditures per type of area (rural/urban) and considering the mandate of ONAS, it appears that all expenditures were made in urban areas. The review of financial flows took into consideration public subsidies on energy. The subsidies were estimated at 27% of the ONAS's energy expenditures. This rate was calculated on the basis of the 2014 baseline price. The energy subsidies increased from TND 4.4 million in 2013, to TND 6.2 million in 2015. © Oxford Policy Management 32 WASH Accounts for Tunisia Concerning investment expenditures, we used the database of ONAS projects which includes detailed information on all projects by ONAS since 2010 (project cost, governorate, nature, value of contract, annual disbursement forecasts, annual achievements, etc.). For the purpose of the present diagnostic, specific processing was made to derive the data needed on the projects covered by the diagnostic. Over the review period, the data derived pertained to 90 projects. ONAS provided us with the distribution per source funding (e.g. State budget, loans, donations etc.) of the data on these projects. The investment expenditures on the ONAS-provided sanitation services increased from TND 94 million in 2013 to TND 134 million in 2015, i.e. an average increase by 20% per year. Information is also provided on the nature of the project (studies, construction, WTP, network, rehabilitation, etc.). The expenditures that went to rehabilitation projects (networks pumping stations and treatment plants) and wadi and urban stream maintenance projects were classified as major maintenance costs, as per the TrackFin classification. The rest of the expenditures were classified as investment costs. To calculate ONAS's expenditures per governorate, type of area (rural/urban), source of funding and nature (e.g. investment, major maintenance), the Consultant compiled the data collected by developing pivot tables.18 Sanitation supplied by non-networked service providers Non-networked sanitation service providers mainly include septic tank emptying and network unclogging companies and property and land developers. Expenditures on pit emptying were estimated on the basis of the number of housings equipped with septic tanks (not connected to a sanitation network), a periodicity of emptying of six (6) years, and a unit cost of TND 50 to 60 in communal areas and zero cost in rural areas. According to INS's data, 18% of urban housings were using septic tanks (not connected to a sanitation network) in 2014. However, this rate varies widely across governorates: indeed, it ranges from 3% in the governorate of Ariana to 77% in the governorate of Médnine. The total expenditures on septic tank emptying by relevant companies 19 increased from TND 3.5 million in 2013 to TND 4.0 million in 2015. Property and land developers in Tunisia are mainly public (SNIT, SPROLS, AFI, AFH) and private entities. These developers are considered as non-networked sanitation service providers. In fact, when implementing their real estate, tourist, or industrial projects, developers are expected to construct the sanitation infrastructure that goes with them. Once completed, these infrastructures are handed over to ONAS that subsequently ensures their management and operation. The investment expenditures incurred by these non-networked service providers are accounted for in ONAS's assets as projects executed by third parties. Data relating to this could not be obtained. Failing them, the Consultant did not consider them in the financial flows of the sanitation sector. According to ONAS, only few such handovers of infrastructures 18 The pivot tables were then exclusively used to process the data relating to ONAS projects. 19 These are operating expenditures borne by users. © Oxford Policy Management 33 WASH Accounts for Tunisia occurred over the review period and the value of such investments is therefore not significant. Self-supplied sanitation Expenditures on self-supplied sanitation were estimated on the basis of the 2011-12 MICS survey on sanitation structure equipment of housings non-connected to the sanitation network. These percentages were applied to the new housing units constructed during years 2013, 2014, and 2015 and calculated on the basis of the data from the 2004 and 2014 RGPH. Table 6 Equipment of households non-connected to a sanitation network Urban Rural Pit 57.6% 24.1% Slab latrine 41.2% 64.8% Pit latrine without slab 0.6% 3.9% Open-air defecation 0.6% 7.2% TOTAL 100% 100% Source: MICS (2012). Expenditures in years 2013, 2014, and 2015 were estimated on the basis of the unit costs of the following required structures:  Pits: between TND 800 in 2013 and TND 900 in 2015 in urban areas and between TND 400 in 2013 to TND 500 in 2015 in rural areas  Slab latrines: between TND 500 in 2013 and TND 600 in 2015 in urban areas and between TND 300 in 2013 to TND 350 in 2015 in rural areas  Latrines without slab: between TND 300 in 2013 and TND 400 in 2015 in urban areas and between TND 200 in 2013 to TND 250 in 2015 in rural areas The annual number of sanitation structures (pit, slab latrine, pit latrine without slab) constructed (investment) over the review period was estimated based on the number of new housings built, calculated from the results of the 2004 and 2014 RGBH and with application of an annual average increase rate. Investment expenditures on self-supply increased from TND 13.4 million in 2013 to TND 15.4 million in 2015. The expenditures were fully assigned to domestic use. Expenditures on self-supplied sanitation for non-domestic use mainly include investments in and operating of pretreatment plants made by some industrialists and sometimes hotel operators. Subsidies up to 20% of the amount of investment are provided via the Fonds de Dépollution (FODEP, pollution reduction fund). According to the information provided to the National Environmental Protection Agency (ANPE), since 2010, no industrialist has benefitted from this pollution reduction instrument because the KfW credit line has been used up. © Oxford Policy Management 34 WASH Accounts for Tunisia Failing alternative data, expenditures relating to the self-supplied sanitation services for non- domestic use were not taken into account.20 4.3.4 Service in support of the WASH sector The service in support of the WASH sector in Tunisia is mainly ensured by:  The Ministry of Agriculture through its directorates working in the drinking water sector, namely DGGREE and DGRE  The Ministry of Environment through the directorates working in the field of sanitation, namely the Directorate General of the Environment and Quality of Life (DGEQV)  SONEDE  ONAS  ANPE To estimate the expenditures of the service in support of the WASH sector, the Consultant based itself on the budgets of the Ministries of Agriculture and 21 the Environment22 dedicated to the WASH sector, on one hand, and on the percentages of SONEDE's and ONAS's operating expenditures on the other. The following percentages were applied with respect to the Ministry of Agriculture23:  RE subprogram: 42 %24 of central expenditures and 10% of expenditures at regional level  RE subprogram: 10 % of central expenditures and 5% of expenditures at regional level  Steering and Support Program: 1% The following percentages were applied with respect to the Ministry of the Environment:  Program 1 - Environment and Quality of Life: 10%  Program 3 - Steering and Support: 1% With respect to SONEDE, the share of the support to the WASH sector was estimated to amount to 10% of the headquarter costs. As for ONAS, the share of the support to the WASH sector was estimated to amount to 1% of operating costs. 20 According to ANPE, it would appear that few treatment facilities for industrial users were constructed over the 2013-2015 period since the pollution reduction mechanism is no longer operational. Most industrial users are connected to the ONAS network. In fact, industrial units are either located in urban areas or in industrial zones close to urban areas and connected to the sanitation network. Polluting industrial units must pretreat their waste waters before discharging them in the ONAS network as per disposal standards. We do not have data on their number or operating expenditures and recommend to include these data in the next exercises by conducting specific surveys. 21 The Budget of MARHP is distributed across six programs that are respectively broken down into subprograms: Program 3 is the Water Program and Program 6 is the Steering and Support Program. 22 The budget of the Ministry of Environment is distributed across three programs: Program 1 - Environment and Quality of Life; Program 2 - Sustainable Development, and Program 3 - Steering and Support. 23 Failing data, percentages were set in a relatively arbitrary manner. 24 42% is the share of DWS-project related investments in the total expenditures of the RE subprogram. © Oxford Policy Management 35 WASH Accounts for Tunisia Expenditures on actions in support of the sector that were funded by a number of donations over the 2013-2015 period were also taken into account. They include:  Support to the implementation of the National Sustainability Strategy (KfW-AfDB)  Twinning document water policing (Program in support of Public Policies - PAPS - funded by EU)  Strategic Operational Plan (PSO) of SONEDE (PAPS)  Study of the Financial Balance of SONEDE (funding IRDB)  National Water Information System (SINEAU) funded by AfDB. The total expenditures on the service in support of the WASH sector were estimated at TND 11.8 million in 2013, TND 12.6 million in 2014, and TND 15.8 million in 2015. 4.3.5 Water resource management relating to water and sanitation service provision Water resource management relating to water and sanitation service provision in Tunisia is mainly ensured by:  The Ministry of Agriculture through its directorates working in the drinking water sector, namely DGRE  The Ministry of Environment through the directorates working in the field of sanitation, namely DGEQV and ANPE. Expenditures on resource management were also estimated on the basis of the percentages of the operating expenditures that the Ministries of Agriculture and of the Environment have incurred in relation with the WASH sector. The following percentages were applied with respect to the Ministry of Agriculture25:  RE subprogram: 90 % of central expenditures and 95% of expenditures at regional level  Steering and Support Program: 0.5% The following percentages were applied with respect to the Ministry of the Environment:  Program 1 - Environment and Quality of Life: 5%  Program 3 - Steering and Support: 1% Total expenditures on water resource management in relation with water and sanitation services were estimated at TND 8.8 million in 2013, TND 10.5 million in 2014, and TND 15.4 million in 2015. 25 Failing data, percentages were set in a relatively arbitrary manner. © Oxford Policy Management 36 WASH Accounts for Tunisia 4.3.6 Hygiene services The hygiene services considered in this diagnostic include hygiene promotion ensured by the Ministry of Health, as well as hygiene activities at the household level. Hygiene promotion in Tunisia is ensured by the Ministry of Health through the Directorate of Environmental Health and Protection (DHMPE). The tasks assigned to this directorate include control of waters in both rural and urban areas in terms of health (drinking water, mineral water), user sensitization, control of waste and treated waters in terms of health, as well as the sensitization of treated wastewater users. The expenditures incurred by the Ministry to promote hygiene were estimated on the basis of:  The data communicated by DHMPE on investment expenditures on the sanitary control of drinking water, untreated waste waters, and treated waste waters  Operating costs, as calculated on the basis of the number of staff involved in hygiene promotion (selected assumption is 50% of the total staff numbers of DHMPM) Total expenditures on hygiene promotion were estimated at TND 7.5 million in 2013 and TND 9.5 million in 2015. Regarding hygiene activities at the household level, the expenditures considered included household expenditures on soap purchase for personal hygiene. These expenditures were estimated using the data from the 2005 and 2010 Household Consumption Surveys (ENBCM) relating to soap expenditures for personal hygiene in the seven socioeconomic regions of the country and also according to the type of area (rural/urban). It is noted that these data are not featured in the 2015 ENBCM. Expenditures were estimated per governorate on the basis of the number of inhabitants and average expenditure calculated for the relevant region. The average expenditure per region during the period considered (2013-2015) was calculated on the basis of the average expenditure increase tariffs calculated between 2005 and 2010. Over the 2013-2015 period, the average expenditures on soap purchase for personal hygiene were estimated at TND 30 million,26 with 84 % incurred in urban areas. 26 Estimated on the basis of the number of inhabitants and average expenditure on soap purchase for personal hygiene. © Oxford Policy Management 37 WASH Accounts for Tunisia 5 WASH Accounts findings The data collected were structured into a database developed by the Consultant. This interactive database may, in the future, be used to estimate financial flows in the WASH sector when making WASH Accounts calculations. After the processing and compilation of the data, it became possible to develop WASH Accounts - detailed in Annex A - and highlight a number of indicators described and analyzed in this section. 5.1 Summary of findings The table hereafter summarizes the key indicators derived from the analysis of WASH Accounts over the review period. Table 7 WASH Accounts key indicators Indicator 2013 2014 2015 Overall expenditures Total expenditures of the WASH sector at the national level (million TND) 958 1 120 1 317 Total expenditures of the WASH sector as % of GDP 1.3% 1.4% 1.5% Total expenditures of the WASH sector per capita (TND) 88.2 101.7 118.1 Total WASH sector expenditures (% total expenditures of the Government) 3.6% 4.1% 4.9% Expenditures per sector (% total expenditures of the WASH sector) Total expenditures of the water sector 65.6% 67.6% 69.1% Total expenditures of the sanitation sector 28.5% 26.9% 25.3% Total expenditures of the hygiene sector 3.7% 3.5% 3.2% Total expenditures on water resources 0.9% 0.9% 1.2% Total expenditures on sector support 1.2% 1.1% 1.2% Expenditures per type of use (% total expenditures of the WASH sector) Domestic use 80.8% 81.1% 81.5% Non-domestic use 19.2% 18.9% 18.5% Expenditures per type of funding (% total expenditures of the WASH sector) Tariffs on service rendered 67.8% 66.7% 59.7% Public transfers (national) 17.6% 15.7% 21.0% Repayable funding 6.1% 10.9% 12.2% Self-supply by users 5.4% 5.0% 4.5% International public transfers 3.1% 1.7% 2.7% Expenditures per type of funding (% public expenditures) Public expenditures of the WASH sector as % public expenditures 1.0% 1.2% 1.8% Expenditures per type of cost (% total expenditures of the WASH sector) Operating and maintenance expenditures 64.0% 65.8% 62.4% Investment expenditures 22.2% 26.2% 30.7% Expenditures on major maintenance operations 5.0% 5.0% 4.8% GDP at market price (million TND) 75.151 80.816 85.490 Total expenditures of the Government, debt services (million TND) 26,434 27,317 26,861 Number of inhabitants (million) 10.8 11.0 11.2 © Oxford Policy Management 38 WASH Accounts for Tunisia Overall expenditures A review of the indicators shows that the total expenditures of the WASH sector in Tunisia increased from TND 958 million in 2013 to TND 1,317 million in 2015, entailing an annual increase rate of 17%. Taking into account the inflation rates observed over the review period (5.7% in 2013, 4.8% in 2014, and 4.1% in 2015), the average annual increase in real terms is 12%. The amount of WASH expenditures, as a share of the GDP, has also increased over the review period but to a lesser extent (approximately 10%). Total expenditures in the WASH sector in Tunisia, estimated on the basis of WASH Accounts, make up an average of 1.4% the GDP. This percentage is higher than that of Brazil (1.1 %) and lower than that of Morocco (2.3 %). This percentage is much lower than that of other social sectors in Tunisia, such as health, whose expenditures made up 7.1% of the GDP in 2013. The total expenditures of the WASH sector, when considering the full population, increased from TND 88.2 per capita in 2013 to TND 118.1 per capita in 2015. For year 2014, the water and sanitation expenditures calculated in relation with the number of inhabitants amount to TND 96 per capita. However, this rate fails to reflect the wide variations across governorates. It ranges from 50 TND/cap. in the governorate of Sidi Bouzid to 148 TND/cap. in the governorate of Tunis. The amount of the total expenditures of the WASH sector in Tunisia, as a share of the total expenditures of the Government, increased from 3.6% in 2013 to 4.9% in 2015. The share of public expenditures on the WASH sector in Tunisia, as a share of the total expenditures of the Government (including debt offices), increased from 1.0% in 2013 to 1.8% in 2015. This increase shows that the importance that public policies give to the WASH sector is increasing. Expenditures per sector The majority of WASH sector expenditures were incurred for water and sanitation. Expenditures on support, water resources, and hygiene make up but only 5% of the amount of the total expenditures. The share of water expenditures in total WASH sector expenditures increased from 65% in 2013 to 69% in 2015, whereas the share of sanitation expenditures decreased from 28% in 2013 to 25% in 2015 over the same period. Expenditures per use The total expenditures on domestic use make up approximately 80% of the total expenditures of the WASH sector. © Oxford Policy Management 39 WASH Accounts for Tunisia Expenditures per type of funding The funding mobilized by operators and generated from the sale of water and sanitation services make up approximately 65% of the overall funding. It must nevertheless be reported that the share of these funding decreased from 68% in 2013 to 60% in 2015. This decrease is mainly accounted for by the rate freeze of water services in 2015. Public transfers consequently increased from 18% in 2013 to 21% in 2015.27 The share of expenditures per repayable funding (loans) nearly doubled from 2013 to 2015, increasing from 6% in 2013 to 12% in 2015. The contribution of self-supplied households decreased from 5.4% in 2013 to 4.5% in 2015. Expenditures per type of cost The review of expenditures per type of cost highlights the following:  They are predominated by operating expenditures which make up approximately 65% of all WASH sector and water expenditures, and 55% of sanitation expenditures.  Expenditures on major maintenance operations make up 5% of the total expenditures of the WASH sector. However, this percentage does not reflect the fact that there are wide variations across sectors and they are especially low in the water sector (under 1%), against over 15% in the sanitation sector.28 5.2 Geographic distribution of WASH sector expenditures The estimation of the geographic distribution of WASH expenditures pertained only to water and sanitation services, which make up approximately 95% of the total expenditures of the sector. The other components of the sector's expenditures, namely sector support and water resource management cannot be disaggregated per type of area or governorate. 5.2.1 Distribution per type of area (rural/urban) The figures hereafter show the distribution of the expenditures and their structure per type of area in the WASH sector, as well as in the water and sanitation sectors. It emerges from these graphs that the overall expenditures of the WASH sector, in urban, as well as rural areas have increased, with the share of rural areas improving from 19% in 2013 to 22% in 2015. 27 According to the financial statements of SONEDE and ONAS, SONEDE paid taxes amounting to approximately TND 5.2 million in 2014 and approximately TND 7 million in 2015. ONAS paid taxes amounting to approximately TND 2 million in 2013. The VAT paid by SONEDE's customers (18 %) was taken into account in calculating fiscal costs. However, it is noted that VAT does not apply to sanitation fees. 28 The item “Major maintenance” includes rehabilitation projects by SONEDE and ONAS. As for projects implemented by the Rural Engineering Services all the expenditure were put under the item “investment” given the lack of specific data. This assumption may lead to underestimating of major maintenance expenditure given that a big share of investment is dedicated to rehabilitation in rural areas. Taking as an alternative assumption that half of the investment made by DGGREE are for rehabilitation projects, the share of “major maintenance” would increase from 1% to about 3%. Due to the lack of reliable data on the share of “major maintenance” investment, these assumptions cannot be verified. This review highlights the need to improve information to allow for monitoring upkeep and major maintenance activities, namely in rural areas. © Oxford Policy Management 40 WASH Accounts for Tunisia However, although the share of water expenditures in rural areas is relatively significant (29 % in 2015), the share of sanitation remains extremely low (in the region of 2%). WASH sector expenditures per capita in urban areas increased from 100 TND/cap in 2013 to 130 TND/cap in 2015, i.e. an annual average increase by 9%. Expenditures in rural areas increased from 48 TND/cap in 2013 to 75 TND/cap in 2015, i.e. an annual average increase by 16%. The increase in WASH sector expenditures per capita in urban areas mainly owes to the increase in water sector expenditures, which make up approximately 65% of the total. © Oxford Policy Management 41 WASH Accounts for Tunisia Figure 7 Total expenditures of the WASH sector per type of area, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 8 Total expenditures of the water sector per type of area (rural/urban), 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 9 Total expenditures of the sanitation sector per type of area (rural/urban), 2013-15 0 Amount in million TND 1 Structure of expenditures (%) Source: WASH Accounts estimations. © Oxford Policy Management 42 WASH Accounts for Tunisia 5.2.2 Distribution per governorate The figures hereafter describe the distribution of water and sanitation expenditures per governorate and capita. The water and sanitation expenditures of the total population increased from 83 TND/cap in 2013 to 112 TND/cap in 2015. However, these ratios hide wide disparities across governorates. Extreme values were found in a few governorates. The water and sanitation expenditures per capita in urban areas increased from 101 TND/cap in 2013 to 129 TND/cap in 2015, i.e. an annual increase by 13%. The highest levels of expenditure were found in the governorates of Tozeur, Médnine, and Kébili and are due to the exceptional expenditures incurred for the execution of the desalination plants projects in these governorates. Expenditures in rural areas increased from 48 TND/cap in 2013 to 74 TND/cap in 2015, i.e. an annual increase by 25%. The ratio found in the governorate of Jendouba amounts to nearly double of the average ratio, which owes to the expenditures made on the implementation of the drinking water transfer line in rural areas project during the review period. Figure 10 Total water and sanitation expenditures per capita per governorate, 2013-15 Source: WASH Accounts estimations. © Oxford Policy Management 43 WASH Accounts for Tunisia Figure 11 Total water and sanitation expenditures per capita in urban areas, 2013- 15 Source: WASH Accounts estimations. Figure 12 Total water and sanitation expenditures per capita in rural areas, 2013- 1529 Source: WASH Accounts estimations. The figure hereafter shows the average water and sanitation expenditures per governorate and capita, as well as the poverty rates observed in 2015. It appears from this graph that expenditures per capita and the governorate poverty rate are correlated to a certain extent. A correlation coefficient of -0.748 is found, which confirms that water and sanitation expenditures per capita increase as the poverty rate decreases. 29 The governorates of Tunis and Monastir are 100% urban. © Oxford Policy Management 44 WASH Accounts for Tunisia Figure 13 Average water and sanitation expenditures per capita (2013-15) and poverty rate (2015) per governorate Source: WASH Accounts estimations and INS (2016). 5.1 Structure of expenditures in the WASH sector 5.1.1 Expenditures per sector The figures hereafter show the distribution of expenditures, as well the structure of WASH expenditures per type of service. These figures mainly show that expenditures have increased across all types of service, although the share of rural drinking water has increased from 17% in 2013 to 20% in 2015, whereas that of urban drinking water decreased from 28% to 25% over the same period. Figure 14 Total expenditures of the WASH sector per type of service, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. The figures hereafter describe the distribution of water and sanitation expenditures per capita and governorate. These figures mainly show that, over the three years reviewed, the © Oxford Policy Management 45 WASH Accounts for Tunisia expenditures per capita in the governorates of Kef, Siliana, Kairouan, Kasserine, Sidi Bouzid, Tataouine, and Béja were much lower than the national average expenditures. Figure 15 Total water and sanitation expenditures per capita, 2013-15 2013 2014 © Oxford Policy Management 46 WASH Accounts for Tunisia 2015 Source: WASH Accounts estimations. 5.1.2 WASH expenditures per type of provider The figures hereafter show the distribution of expenditures, as well the structure of WASH expenditures per type of provider. These figures mainly show that the expenditures of all providers have increased, with predomination from networked service provision companies, whose expenditures make up approximately 70% of the WASH sector. The share of these providers has slightly decreased (from 72% in 2013 to 71% in 2015) while the share of NGOs increased (6 % in 2013 to 8 % in 2015), mainly as the result of an increase in investment expenditures in rural drinking water infrastructures managed by GDAs. The sanitation sector is dominated by networked service provision companies, accounting for 95% of the expenditures. Figure 16 Total expenditures of the WASH sector per type of provider, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. © Oxford Policy Management 47 WASH Accounts for Tunisia Figure 17 Total expenditures of the water sector per type of provider, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 18 Total expenditures of the sanitation sector per type of provider, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. 5.1.3 WASH expenditures per type of use The figure hereafter shows the distribution of WASH expenditures per type of use. While it is reminded that expenditures relating to self-supplied non domestic use could not be assessed, it is noted that domestic use of provider services accounts for the largest part of the expenditures. Indeed, domestic use makes up 80% of the sector's expenditures, with 75% going to provider services and 5% to self-supply. As a comparison, the share of self- supply in Tunisia is the same as in Morocco and ranks lower than that of Brazil (9 %). © Oxford Policy Management 48 WASH Accounts for Tunisia Figure 19 Total expenditures of the WASH sector per type of use, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. 5.1.4 WASH expenditures per type of cost The figures hereafter show the distribution of WASH expenditures and expenditures in the water and sanitation sectors, as well as the structures of the expenditures per type of cost. It mainly appears from these figures that:  Operating costs account for the largest part of WASH expenditures but their share is decreasing in favor of investment expenditures, in the water sector (Figure 21), as well as sanitation sector (Figure 22).  The share of expenditures on major maintenance in the WASH sector decreased from 6% in 2013 to 5% in 2015.  The share of major maintenance operations in the water sector is low (under 1%), which negatively impacts network performance - for instance, SONEDE recorded 28 breaks per 100km of network in 2013, and this figure increased to 32 in 2014 and 34 in 2015.  The share of major maintenance operations is bigger in the sanitation sector, as compared to the water one. This could be accounted for by the impacts of the harsh environment on the life of the infrastructures. © Oxford Policy Management 49 WASH Accounts for Tunisia Figure 20 Total expenditures of the WASH sector per type of cost, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 21 Total expenditures of the water sector per type of cost, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 22 Total expenditures of the sanitation sector per type of cost, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. © Oxford Policy Management 50 WASH Accounts for Tunisia 5.2 Funding of the WASH sector 5.2.1 WASH expenditures per type of funding The figures hereafter show the distribution of WASH expenditures and expenditures in the water and sanitation sectors, as well as the structures of the expenditures per type of funding. These figures mainly show that:  Tariffs for service provision are the main source of funding with a share of approximately 65%. It must nevertheless be reported that the share of these funding decreased from 68% in 2013 to 60% in 2015. This is due to the fact that the increase in sector expenditures did not go hand in hand with a similar tariff increase. The water sector accounts for the largest part of the decrease of the share of tariffs. Public transfers consequently increased from 18% in 2013 to 21% in 2015.  The share of expenditures per repayable funding (loans) nearly doubled from 2013 to 2015, increasing from 6% in 2013 to 12% in 2015. The increase in this category of expenditure is most notable in the water sector where it went up from 5% in 2013 to 13% in 2015.  Over the 2013-2015 period, the share of funding by donation amounted to an average of 3%.  The contribution of self-supplied households decreased from 5.4% in 2013 to 4.5% in 2015. Figure 23 Total expenditures of the WASH sector per type of funding, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. © Oxford Policy Management 51 WASH Accounts for Tunisia Figure 24 Total expenditures of the water sector per type of funding, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 25 Total expenditures of the sanitation sector per type of funding, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. 5.2.2 Public and private expenditures This paragraph groups the different types of funding mentioned in the previous paragraph into two types of expenditures, i.e. public or private. Public expenditures include national and international public transfers, as well as donor repayable funding, whereas private expenditures encompass tariffs for services provided and self-supply expenditures. The figures hereafter show the distribution of WASH expenditures and expenditures in the water and sanitation sectors, as well as the structure of expenditures in these two categories of funding. The figures mainly show that:  Even though private expenditures, mainly comprised of tariffs, increased in volume on annual basis by approximately 10% over the 2013-2015 period, their share has significantly decreased to 64% in year 2015, against 72% in 2014 and 73% in 2013. This decrease was compensated by an increase in the public expenditure share. This raises the issue of the actions that national authorities will need to take in terms of © Oxford Policy Management 52 WASH Accounts for Tunisia tariff adjustment and public expenditure increase in the sector, while taking into account the financial balance of key operators.  It is noted that the share of public expenditures in the sanitation sector is larger than in the water sector.  The increase in public expenditures owes mostly to the water sector. In 2015, these expenditures were multiplied by 1.7 as compared to 2014. Figure 26 Public and private expenditures in the water and sanitation sectors, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 27 Public and private expenditures in the water sector, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. © Oxford Policy Management 53 WASH Accounts for Tunisia Figure 28 Public and private expenditures in the sanitation sectors, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. 5.2.3 Public and private expenditures per governorate Public expenditures The figures hereafter describe the distribution of public expenditures in the water and sanitation sectors per governorate and capita. The amount of public expenditures in the water sector across the total population increased from 11 TND/cap in 2013 to 25 TND/cap in 2015. However, these ratios hide wide disparities across governorates. Public expenditures in the sanitation sector increased from 11 TND/cap in 2013 to 14 TND/cap in 2015. The increase in public expenditures recorded in the sanitation sector over the 2013-2015 period is not very significant compared to the ones recorded in the water sector. This reflects the fact that public expenditure efforts in the water sector are more sustained than in the sanitation sector. © Oxford Policy Management 54 WASH Accounts for Tunisia Figure 29 Annual public expenditures on water per capita and governorate, 2013- 15 Source: WASH Accounts estimations. Figure 30 Annual public expenditures on sanitation per capita and governorate, 2013-15 Source: WASH Accounts estimations. Private expenditures The figures hereafter describe the distribution of private expenditures in the water and sanitation sectors per governorate and capita. © Oxford Policy Management 55 WASH Accounts for Tunisia The amount of private expenditures in the water sector across the total population increased from 47 TND/cap in 2013 to 56 TND/cap in 2015. The highest ratios were recorded in the biggest water consumption centers (Greater Tunis, Sahel, Gabes and Médnine). Private expenditures in the sanitation sector increased from 14 TND/cap in 2013 to 16 TND/cap in 2014 and 2015. The highest ratios were also recorded in the same big centers of water consumption. Figure 31 Annual private expenditures on water per capita and governorate, 2013- 15 Source: WASH Accounts estimations. Figure 32 Annual private expenditures on sanitation per capita and governorate, 2013-15 Source: WASH Accounts estimations. © Oxford Policy Management 56 WASH Accounts for Tunisia Public and private expenditures in the water sector The following figures show the public and private expenditures per capita and governorate in the water sector, as well as the correlations between these expenditures and poverty rates.30 Public expenditures in the water sector accounts on average for 25% of the total amount of expenditures. Zaghouan, Kef, Bejà, Sidi Bouzid, Kairouan, Kasserine, and Siliana (Figure 33). A low positive correlation (0.3) is observed between public expenditures per capita and poverty rates per governorate (Figure 34). This indicates that public resources could be better targeted when it comes to poverty per governorate. On the other hand, a strong negative correlation (-0.8) was noted between private expenditures per capita and poverty rates per governorate (Figure 35). This indicates that private expenditures, mainly comprised of tariffs and household investments, are better borne in regions where poverty rates are lower - i.e. water consumption is lower among the poor than the non-poor. The poor also incur less expenditures on bottled water. Figure 33 Annual expenditures on water per capita and governorate, 2013-15 average Source: WASH Accounts estimations. 30 The amount of expenditures per capita is the average of the three years considered. The poverty rate is the one from year 2015. © Oxford Policy Management 57 WASH Accounts for Tunisia Figure 34 Correlation between public expenditures on water per capita and governorate (2013-15 average) and poverty rate (2015) Source: WASH Accounts estimations. Figure 35 Correlation between private expenditures on water per capita and governorate (2013-15 average) and poverty rate (2015) Source: WASH Accounts estimations. Public and private expenditures in the sanitation sector The following figures show public and private expenditures per capita and governorate in the sanitation sector, as well as the correlations between expenditures and poverty rates. Public expenditures in the sanitation sector accounts on average for 43% of the total amount of expenditures. The highest ratios were observed in the governorates of Gafsa, Siliana, Nabeul, and Manouba (Figure 36). © Oxford Policy Management 58 WASH Accounts for Tunisia Public expenditures per capita in the sanitation sector and poverty rates per governorate (Figure 37) are in negative correlation (-0.5), which indicates that public resources are not adequately targeted at the regions that need them the most. This is partly due to the lack of definition of responsibilities for sanitation in rural areas where poverty is concentrated and the lack of public subsidies to encourage households to invest in on-site sanitation systems. As such, although the distribution of public resources for sanitation appears necessary, especially in rural and poor areas, responsibilities relating to service provision should be clearly defined before any reallocation of public resources is made. A strong negative correlation (-0.7) is also observed between private expenditures on sanitation per capita and poverty rates per governorate (Figure 38). This result is no surprise, given that there are no formal service providers in rural areas - i.e. households do not pay any tariffs for sanitation services in rural areas. Self-supply expenditures are lowest among the poor. Figure 36 Annual expenditures on sanitation per capita and governorate, 2013-15 average Source: WASH Accounts estimations. © Oxford Policy Management 59 WASH Accounts for Tunisia Figure 37 Correlation between public expenditures on sanitation per capita and governorate (2013-15 average) and poverty rates (2015) Source: WASH Accounts estimations. Figure 38 Correlation between private expenditures on sanitation per capita and governorate (2013-15 average) and poverty rates (2015) Source: WASH Accounts estimations. 5.3 WASH sector funding channels The figures hereafter show the distribution of WASH expenditures and structure of the expenditures per type of funding. This figure mainly shows that: © Oxford Policy Management 60 WASH Accounts for Tunisia  WASH sector funding in the water sector are mainly channeled by networked service provision companies (SONEDE and ONAS), followed by national authorities (MARHP) for the sanitation sector and non-networked service provision companies (cistern water sale).  The share of funding channeled by non-networked companies (cistern water sale, bottled water, septic tank emptying, etc.) amounts to approximately 14%.  The share of funding channeled by bilateral and multilateral donors increased from 9% in 2013 to 15% in 2015. It increased from 7% to 14% in the water sector and from 15% to 19% in the sanitation sector. Figure 39 Total expenditures of the WASH sector per unit of funding, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. Figure 40 Total expenditures of the water sector per unit of funding, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. © Oxford Policy Management 61 WASH Accounts for Tunisia Figure 41 Total expenditures of the sanitation sector per unit of funding, 2013-15 a. Amount in million TND b. Structure of expenditures (%) Source: WASH Accounts estimations. © Oxford Policy Management 62 WASH Accounts for Tunisia 6 Conclusions This is the first detailed study on financial flows for the water, sanitation and hygiene sector in Tunisia. Although information may be missing or may be incomplete, the review gives a picture of the total amount of expenditures and their allocation between urban and rural areas, governorates and the different sectors. The TrackFin methodology also allows for a specific breakdown between different types of costs, sources of funding (public or private), types of providers, and other relevant categories. The main purpose of the TrackFin methodology is to develop the WASH sector’s accounts. Each account provides answers to specific questions and can help in public policy decision-making. The review’s findings allow for the following conclusions:  Total expenditures in the WASH sector increased over the review period (2013-2015) from TND 958 million to TND 1,317 million, i.e. an annual increase of 17% in nominal terms. Taking into account the inflation rates observed over the review period (5.7% in 2013, 4.8% in 2014, and 4.1% in 2015), the average annual increase in real terms is 12%. The expenditures, expressed as a share of the GDP, also slightly increased from 1.3% to 1.5%. Nevertheless, spending for the sector remains at a low level and below that estimated for the health sector, i.e. about 7% of the GDP in 2013.  Nearly two-thirds of the expenditures were allocated to the water sector against the sanitation and hygiene sectors. The share of expenditures going to hygiene is low, making barely 4% of the total expenditures for the WASH sector.  Most expenditures relate to domestic use.  Although expenditures between rural and urban areas may be uneven, with more resources allocated to the urban environment, the allocation of total WASH expenditures per capita between urban and rural areas is similar. Thus, there is no sound evidence of inequities between rural and urban areas as for total expenditures. Nevertheless, estimates show that there are inequities in public spending on sanitation. Since poverty rates are higher in rural areas and there is a negative correlation between per capita public spending and poverty rates at the governorate level, one may conclude that public resources for sanitation could be better targeted. It should be noted, however, that the low level of public expenditures on rural sanitation is linked to the lack of clear definition of responsibilities for the provision of services.  On the other hand, with regard to public expenditures for the water sector, estimates show that there is a positive correlation between expenditures and poverty rate by governorate. Thus, one may conclude that public spending on water is relatively well targeted. Nevertheless, there is a negative correlation between per capita private expenditures (especially tariffs) and poverty rates by governorate, which is linked to lower consumption among the poor and also lower spending on bottled water.  Most resources for the sector come from tariffs paid for services provided (around 60% in 2015) and public transfers (around 21%). It should be noted that repayable funding doubled over the review period from 6% in 2013 to 12% in 2015. © Oxford Policy Management 63 WASH Accounts for Tunisia  Most of the expenditures are allocated to operation and maintenance (almost two thirds), and only 5% of the expenditures is allocated to major maintenance (renewal, replacement and rehabilitation of water supply systems, etc.). This allocation hides significant disparities across sectors and particularly low expenditures on major maintenance for the water sector (less than 1%), compared with more than 15% for the sanitation sector. These estimates are consistent with previous studies that report that the majority of GDAs (in rural areas) are able to cover their operating costs, but only 20% also cover maintenance costs. However, cost classification should be improved in the GDA monitoring system in order to allow for making the distinction between maintenance activities aimed at improving the functionality of existing facilities and major rehabilitation works that are classified as investment. The table below summarizes the objective of each of the WASH Accounts and the main findings. Details on these accounts are provided in Annex A. Table 8 Tables of WASH accounts Account table Objectives Key findings in Tunisia Table 1 WASH Communes benefit from 80% of the sector’s expenditures by main Total expenditures for each major type of expenditures whereas the urban population WASH service and WASH service by major geographic area represents only 68% of the total population. geographic area Expenditures of financing units for different Table 2 WASH types of WASH services and uses. It provides The main use is domestic with a share of 82%, expenditures by type a brief presentation of the demand for WASH distributed as follows: 76% with service of WASH service and services in the country, allowing to identify provided and 6% through self-supply. type of use who consumes what type of service, based on the type of use, rather than the type of users Expenditures of service providers for the different types of WASH services. It provides an answer to the question "Who provides Table 3 WASH Networked service providers (SONEDE and what?" It also provides a brief overview of the expenditures by type ONAS) are the main service providers, but WASH supply market in the country, of WASH service their shares declined from 72% in 2013 to 70% indicating the identity of service providers, and Provider and type of in 2015, compared with an increase from 6% In how expenditures in the sector is channeled service 2013 to 9% 2015 as regards the GDAs’ share. to different providers. The table shows the relative weight of each type of provider on the market This table provides an answer to the question, "Where does the money come from?". It presents the different sources of revenue by type of funding for each service provider. It Tariffs are the main source of funding for the Table 4 WASH tracks the flow of resources within the WASH sector. However, their share decreased from expenditures by type sector, from the columns indicating the origin 68% in 2013 to 60% in 2015. of funding and type of of the funding to the rows specifying The share of national public transfers WASH provider beneficiaries and users. The table also shows increased from 18% in 2013 to 21% in 2015. the relative weight of different types of resource flows in financing the activities of each type of provider and in the sector as a whole. © Oxford Policy Management 64 WASH Accounts for Tunisia The table provides an answer to the question "Who funds what?" It presents the different The share of private expenditures in the water Table 5 WASH sources of revenue (types of funding) for each sector is 75% against 25% for public expenditures by type service. Resource flows to the WASH sector expenditures. of funding and type of can be tracked from the columns showing the WASH service origin of the funds to the rows specifying the activities on which they are spent Networked service providers (SONEDE and The amounts spent by each funding unit and ONAS) and national authorities are the main Table 6 WASH the services to which they are directed. The units that channel funding flows. However, expenditures by table describes how financing units allocate their shares decreased from 70% in 2013 to funding unit and type their resources as a whole and provides an 66% in 2015. Bilateral and multilateral donors of WASH service answer to the question "Who funds what?" channeled 15% of funding flows in 201 5 compared to 9% in 2013 The channeling of funding for the WASH sector The amounts spent by each funding unit for is mainly done by the networked service Table 7 WASH each type of service provider. The table providers (SONEDE and ONAS) with a share expenditures by type highlights the funding pathway leading to the of 65%. They are followed by the national of WASH provider and provision of WASH services. It provides an authorities (MARHP) for the sanitation sector, funding unit answer to the question, "Who funds whom?" and non-networked services companies (tank water sales) for the water sector. Funds mobilized by operators that come from Table 8 WASH This table shows the types of funding through water sales and sanitation services represent expenditures by type which the financing units as a whole allocate about 65% of the total funding. However, it of funding and resources to the sector. should be noted that the share of their funding funding unit decreased from 68% in 2013 to 60% in 2015. The share for major maintenance in the water sector is low (less than 1%), which has a negative impact on the performance of This table shows how different types of Table 9 WASH networks. provider allocate resources to cover different expenditures by type The share for major maintenance in the types of costs. It provides an answer to the of cost and type of sanitation sector is 15%, which is high question:" What types of costs are funded and WASH provider compared to that of water sector. This may be by whom?" due to the impact of the’ aggressiveness wastewaters on sanitation infrastructure over their lifetime. Table 10 WASH The preponderance of operating expenditures This table shows the type of cost on which expenditures by type at about 65% of expenditures for the whole resources are spent in order to provide each of cost and type of WASH sector, and for the water sector type of WASH service WASH service compared with 55% for the sanitation sector © Oxford Policy Management 65 WASH Accounts for Tunisia 7 Recommendations for future WASH accounts This effort to prepare for the first time Tunisia’s WASH Accounts has allowed for mapping out the sector’s actors and for estimating total funding flows to the sector. It was agreed that the actual value of WASH Accounts would come out from repeating this exercise in the future, as a tool to track expenditures in the sector, namely under the implementation of the five-year development plan (2015-2019). The Government’s five-year plan includes public investment in sanitation, water resources management, and rural drinking water, but do not include SONEDE’s investment. It provides for investments in sanitation amounting to about TND 1,000 million, i.e. about TND 200 million per year or twice the amount of investment made in 2015. As for water, the amount provided, including for water resources management and investment in extension to rural areas, is TND 2,553 over the five-year period. Information coming out of the WASH Accounts will also provide a better basis for the drafting of the next development plan as well as for sector resources allocation. Thus, WASH accounts could be established again in two or three years and, if so, it would be necessary from now on to improve sector data, especially financial data, so as to fine-tune the review and enhance its reliability in the future. Financial data on the water and sanitation services are available for most actors but considerable efforts had to be made to process data and compile them according to the TrackFin methodology. The key operators, namely the Ministry of Agriculture, Water Resources and Fisheries, SONEDE, and ONAS have information systems with the capability to generate financial information. However, the exercise also pointed to some challenges relating to the availability of the data needed. Therefore, a number of recommendations are presented below for the preparation of Tunisia’s WASH Accounts in the future.  Financial data for S3- Support to the WASH sector and S4-Water Resources Management in relation to water and sanitation services are very difficult to obtain or are even unavailable. As a consequence, the Consultant based its estimates on the percentages of the operating costs of the budgets of the ministries of agriculture and environment in relation to the WASH sector. The expenditures for these two sub- services could be better estimated on one hand by better defining the structures involved, and on the other by improving the method used for estimating the percentage of time allocated by these structures to provide support and to ensure water resources management in order to deduct the associated expenditures.  For households served by GDAs, the data provided by the Ministry of Agriculture on the GDAs-DWS cover about one third of the total number of GDAs. The reliability of the data received is difficult to prove. Significant efforts have been made by the ministry to collect data from the GDAs and these efforts need to be strengthened to supplement missing data and improve data reliability.  For households served by non-networked service providers (water sales by tank, septic tank emptying, etc.), data are available on their number and sources of supply, but data expenditures on these services are not available from providers. These © Oxford Policy Management 66 WASH Accounts for Tunisia expenditures could be better identified through Household Budget and Consumption Surveys (ENBCM).  For self-supplied households, data are available on their number, sources of supply (wells, majel), and sanitation methods (open pits, latrines, etc.), but expenditures incurred for self-supply are not available. These expenditures could be better identified through Household Budget and Consumption Surveys (ENBCM). It should be noted that in the current surveys, questions on expenditures in the water sector pertain to the purchase of market water. There are no specific questions on self-supply and in particular on sanitation where expenditures are included in the expenditures on SONEDE’s bills or included in other items (masonry, cement, etc.).  Investment expenditures incurred by real estate developers could not be collected for this exercise. The data can be extracted from ONAS’ accounting (as an item included in tangible assets), but doing so, care should be given to taking into account the time between the disbursement period and receipt by ONAS.  Data on expenditures on self-supplied sanitation services for non-domestic use could not be collected or estimated due to a lack of information sources. This information could be the subject of a specific investigation.  Data on hygiene activities at the household level, such as the purchase of soap for bodily hygiene, are not included in the last ENCBM survey (2015) though they were available from the previous survey rounds (2005 and 2010). It is recommended to maintain this information in the next survey rounds.  The review period selected for the study (2013-2015) is characterized by almost no appropriate increase in water tariffs. However, the water tariff sharply increased in 2016 at a rate of 15%. Therefore, it is recommended to renew the exercise in two or three years to understand the effect of this increase. More generally, it should be pointed out that while the guidance document for the TrackFin methodology was developed in a clear way with a pedagogical approach, the methodology comes with many specific features, which, in our opinion, calls for:  Dissemination of the methodology to all stakeholders involved in the preparation of WASH accounts (actors, national statistics agency, etc.).  Support by all partners based on the understanding of the scope and interest of the development of WASH accounts.  Consideration of the requirements for the development of WASH accounts by data providers. © Oxford Policy Management 67 WASH Accounts for Tunisia References Ayadi, I. (s. d.). Les comptes de la santé de la Tunisie 2012 et 2013 - Le pôle de l’économie de la santé. Batista Peixoto, J. (2014). Iniciativa UN-Water GLAAS TrackFin : Mapeamento do Financiamento do setor WASH no Brasil - Relatório Final. World Health Organisation. BM. (2016). Diagnostic de la Pauvreté - Accès à l’Eau, à l’Assainissement et à l’Hygiène (WASH-P) en Tunisie 2015 : Rapport Élémentaire. Banque Mondiale. FAO. (2016). AQUASTAT website - Tunisia Profile. Consulté 5 mai 2017, à l’adresse http://www.fao.org/nr/water/aquastat/countries_regions/TUN/index.stm INS. (2012). Classification National des Unités Administratives - Code Géographique Tunisien. Institut National de la Statistique. INS. (2015a). Annuaire Statistique de la Tunisie 2010-2014 - Edition 2015. Institut National de la Statistique. INS. (2015b). Recensement Général de la Population et de l’Habitat 2014 - Principaux indicateurs. Institut National de la Statistique. INS. (2016a). Recensement Général de la Population et de l’Habitat 2014 - Volume 3 : Caractéristiques Démographiques et Fécondité. Institut National de la Statistique. INS. (2016b). 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La gouvernance des services de l’eau en Tunisie - Surmonter les défis de la participation du secteur privé. OCDE. © Oxford Policy Management 68 WASH Accounts for Tunisia OMS. (2015). Initiative TrackFin du projet GLASS (ONU-EAU) - Suivi du financement de l’assainissement, de l’hygiène et de l’eau potable au niveau national. Organisation Mondiale de la Santé. ONAS. (2012). Statistiques des Abonnés ONAS. Office National de l’Assainissement. ONAS. (2013). Statistiques des Abonnés ONAS. Office National de l’Assainissement. SONEDE. (2014a). Rapport des Statistiques Année 2013. Société Nationale d’Exploitation et de Distribution des Eaux. SONEDE. (2014b). Étude Stratégique de l’Alimentation en Eau Potable en Milieu Rural en Tunisie - Rapport Mission 2 : Révision du Schéma Institutionnel. Société Nationale d’Exploitation et de Distribution des Eaux. SONEDE. (2015a). États Financiers Ajustés - Exercice clos le 31 décembre 2013. Société Nationale d’Exploitation et de Distribution des Eaux. SONEDE. (2015b). Étude Stratégique de l’Alimentation en Eau Potable en Milieu Rural en Tunisie - Rapport de Synthèse de l’Étude. Société Nationale d’Exploitation et de Distribution des Eaux. SONEDE. (2015c). Rapport des Statistiques Année 2014. Société Nationale d’Exploitation et de Distribution des Eaux. SONEDE. (2016a). États Financiers Ajustés - Exercice clos le 31 décembre 2014. Société Nationale d’Exploitation et de Distribution des Eaux. SONEDE. (2016b). États Financiers Provisoires - Exercice clos le 31 décembre 2015. Société Nationale d’Exploitation et de Distribution des Eaux. SONEDE. (2016c). Rapport des Statistiques Année 2015. Société Nationale d’Exploitation et de Distribution des Eaux. UNDP. (2015). Human Development Report 2015 - Work for Human Development. United Nations Development Programme. WHO. (s . d.). Policy Note No. 2 - Why develop WASH Accounts? World Health Organisation. WHO/UNICEF Joint Monitoring Programme for Water Supply and Sanitation. (2015). Estimates on the use of water sources and sanitation facilities. WHO/UNICEF. © Oxford Policy Management 69 WASH Accounts for Tunisia Appendix A WASH Accounts Tables Table 1 WASH expenditures by main WASH service and by rural/urban areas Year 2013 Areas Communal Non communal Total Percentage Main WASH services S1 Water supply services 464,678,726 163,255,931 627,934,657 66% S2 Sanitation services 267,861,513 5,225,290 273,086,803 29% S3 WASH sector support services 10,021,017 1,839,229 11,860,246 1% S4 Water management in relation with water 7,240,858 1,630,600 8,871,458 1% and sanitation services S5 Hygiene services 28,368,476 7,461,350 35,829,827 4% Total 778,170,591 179,412,400 957,582,990 100% Percentage 81% 19% 100% Year 2014 Areas Communal Non communal Total Percentage Main WASH services S1 Water supply services 548,609,039 208,125,088 756,734,127 68% S2 Sanitation services 294,025,842 7,038,506 301,064,348 27% S3 WASH sector support services 10,597,921 1,973,767 12,571,688 1% S4 Water management in relation with water 8,576,190 1,931,309 10,507,498 1% and sanitation services S5 Hygiene services 30,608,371 8,210,892 38,819,263 3% Total 892,417,362 227,279,563 1,119,696,925 100% Percentage 80% 20% 100% © Oxford Policy Management 70 WASH Accounts for Tunisia Year 2015 Areas Communal Non communal Total Percentage Main WASH services S1 Water supply services 649,043,876 261,333,557 910,377,433 69,1% S2 Sanitation services 326,217,543 7,155,970 333,373,513 25,3% S3 WASH sector support services 13,288,627 2,569,538 15,858,165 1,2% S4 Water management in relation with water 12,534,577 2,822,715 15,357,291 1,2% and sanitation services S5 Hygiene services 32,881,857 8,987,617 41,869,474 3,2% Total 1,033,966,479 282,869,397 1,316,835,876 100% Percentage 79% 21% 100% Table 2 WASH expenditures by type of service and type of use Year 2013 WASH uses (U) U1 U2 U3 U4 Non- Domestic use Domestic use of Non-domestic domestic Main WASH services of service self-supplied use of service use of self- Total Percentage provided service provided supplied service S1 Water supply services 517,891,983 9,807,589 100,235,086 - 627,934,657 66% S2 Sanitation services 172,716,435 17,009,961 83,360,407 - 273,086,803 29% S3 WASH sector support services 11,860,246 - - - 11,860,246 1% S4 Water management in relation with 8,871,458 - - - 8,871,458 1% water and sanitation services S5 Hygiene services 7,491,667 28,338,160 - - 35,829,827 4% Total 718,831,788 55,155,709 183,595,493 - 957,582,990 100% Percentage 75% 6% 19% 0% 100% © Oxford Policy Management 71 WASH Accounts for Tunisia Year 2014 WASH uses (U) U1 U2 U3 U4 Non- domestic Domestic use Domestic use of Non-domestic Main WASH use of of service self-supplied use of service self- Total Percentage services provided service provided supplied service S1 Water supply services 627,145,360 10,688,964 118,899,804 - 756,734,127.28 68% S2 Sanitation services 190,691,577 18,336,784 92,035,986 - 301,064,347.89 27% S3 WASH sector support services 12,571,688 - - - 12,571,687.61 1% S4 Water management in relation with 10,507,498 - - - 10,507,498.28 1% water and sanitation services S5 Hygiene services 8,563,333 30,255,930 - - 38,819,263.45 3% Total 849,479,456 59,281,678 210,935,790 - 1,119,696,925 100% Percentage 76% 5% 19% 0% 100% Year 2015 WASH uses (U) U1 U2 U3 U4 Non- domestic Domestic use Domestic use of Non-domestic Main WASH use of of service self-supplied use of service self- Total Percentage services provided service provided supplied service S1 Water supply services 745,627,163 23,264,130 141,486,140 - 910,377,433 69.1% S2 Sanitation services 211,725,111 19,460,724 102,187,678 - 333,373,513 25.3% S3 WASH sector support services 15,858,165 - - - 15,858,165 1.2% S4 Water management in relation with 15,357,291 - - - 15,357,291 1.2% water and sanitation services S5 Hygiene services 9,423,333 32,446,141 - - 41,869,474 3.2% Total 997,991,064 75,170,995 243,673,818 - 1,316,835,876 100.0% Percentage 76% 6% 19% 0% 100% © Oxford Policy Management 72 WASH Accounts for Tunisia Table 3 WASH expenditures by type of service provider and type of service Year 2013 WASH SP1 SP2 SP3 SP4 SP5 Non- Main Networked NGO and networked Self- Governmental service community- WASH organizations provision service based supplied Total Percentage services provision users companies organizations companies S1 Water supply services - 427,970,503 129,775,029 60,381,537 9,807,589 627,934,657 66% S2 Sanitation services - 256,076,842 3,544,599 - 13,465,362 273,086,803 29% S3 WASH sector support services 8,146,486 3,713,760 - - - 11,860,246 1% S4 Water management in relation with 8,871,458 - - - - 8,871,458 1% water and sanitation services S5 Hygiene services 7,491,667 - - - 28,338,160 35,829,827 4% Total 24,509,611 687,761,105 133,319,628 60,381,537 51,611,110 957,582,990 100% Percentage 3% 72% 14% 6% 5% 100% Year 2014 WASH provider SP1 SP2 SP3 SP4 SP5 Non- Governmen Networked NGO and networked Self- Main WASH tal service community- service supplied Total Percentage services organization provision based provision users s companies organizations companies S1 Water supply services - 507,662,647 157,846,985 80,535,533 10,688,964 756,734,127 68% S2 Sanitation services - 282,727,563 3,810,651 - 14,526,134 301,064,348 27% S3 WASH sector support services 8,716,850 3,854,837 - - - 12,571,688 1% S4 Water management in relation with 10,507,498 - - - - 10,507,498 1% water and sanitation services S5 Hygiene services 8,563,333 - - - 30,255,930 38,819,263 3% Total 27,787,682 794,245,047 161,657,635 80,535,533 55,471,028 1,119,696,925 100% Percentage 2% 71% 14% 7% 5% 100% © Oxford Policy Management 73 WASH Accounts for Tunisia Year 2015 WASH provider SP1 SP2 SP3 SP4 SP5 Non- Networked NGO and Main networked Governmental service community- Self-supplied WASH service Total Percentage organizations provision based users services provision companies organizations companies S1 Water supply services - 604,098,795 180,943,547 113,778,613 11,556,478 910,377,433 69.1% S2 Sanitation services - 313,912,789 4,046,569 - 15,414,155 333,373,513 25.3% S3 WASH sector support services 11,578,109 4,100,056 - - - 15,858,165 1.2% S4 Water management in relation with 15,357,291 - - - - 15,357,291 1.2% water and sanitation services S5 Hygiene services 9,423,333 - - - 32,446,141 41,869,474 3.2% Total 36,538,733 922,111,640 184,990,116 113,778,613 59,416,774 1,316,835,876 100.0% Percentage 3% 70% 14% 9% 5% 100% Table 4 WASH expenditures by type of funding and type of provider Year 2013 FT1 FT2 FT3 FT4 FT5 FT6 Tariff for Users’ self- National International WASH Voluntary Repayable service supplied public public Total Percentage provider contributions funding rendered expenditures transfers transfers P1 Governmental organization - - 21,215,032 2,119,715 - 1,174,864 24,509,611 3% P2 Private networked provider 495,180,402 - 124,349,519 28,045,786 - 40,185,397 687,761,105 72% P3 Non-networked service 133,319,628 - - - - - 133,319,628 14% provision companies P4 NGOs and community-based 20,248,456 - 22,933,833 - - 17,199,248 60,381,537 6% organizations P5 Self-supplied users - 51,611,110 - - - - 51,611,110 5% Total 648,748,486 51,611,110 168,498,383 30,165,501 - 58,559,510 957,582,990 100% Percentage 68% 5% 18% 3% 0% 6% 100% © Oxford Policy Management 74 WASH Accounts for Tunisia Year 2014 FT1 FT2 FT3 FT4 FT5 FT6 Tariff for Users’ self- National International WASH Voluntary Repayable service supplied public public Total Percentage provider contributions funding rendered expenditures transfers transfers P1 Governmental organization - - 24,107,152 2,532,819 - 1,147,711 27,787,682 2% P2 Private networked provider 562,862,577 - 133,150,802 16,506,406 - 81,725,263 794,245,047 71% P3 Non-networked service 161,657,635 - - - - - 161,657,635 14% provision companies P4 NGOs and community-based 22,458,343 - 18,738,982 - - 39,338,207 80,535,533 7% organizations P5 Self-supplied users - 55,471,028 - - - - 55,471,028 5% Total 746,978,555 55,471,028 175,996,935 19,039,225 - 122,211,182 1,119,696,925 100% Percentage 67% 5% 16% 2% 0% 11% 100% Year 2015 FT1 FT2 FT3 FT4 FT5 FT6 Users’ self- Tariff for National International WASH supplied Voluntary Repayable service public public Total Percentage provider expenditur contributions funding rendered transfers transfers es P1 Governmental organization - - 24,088,270 8,317,232 - 4,133,232 36,538,733 2.8% P2 Private networked provider 574,201,648 - 223,145,609 26,824,433 - 97,939,950 922,111,640 70.0% P3 Non-networked service 184,990,116 - - - - - 184,990,116 14.0% provision companies P4 NGOs and community- 26,214,110 - 29,330,297 - - 58,234,206 113,778,613 8.6% based organizations P5 Self-supplied users - 59,416,774 - - - - 59,416,774 4.5% Total 785,405,874 59,416,774 276,564,176 35,141,665 - 160,307,388 1,316,835,876 100.0% Percentage 60% 5% 21% 3% 0% 12% 100% © Oxford Policy Management 75 WASH Accounts for Tunisia Table 5 WASH expenditures by type of funding and type of service Year 2013 Type of funding FT1 FT2 FT3 FT4 FT5 FT6 Main Tariff for Users’ self- National International Voluntary Repayable WASH Million of monetary units service supplied public public Total Percentage contributions funding services rendered expenditures transfers transfers S1 Water supply services 500,085,354 9,807,589 72,083,399 15,758,879 - 30,199,437 627,934,657 66% S2 Sanitation services 144,949,373 13,465,362 75,199,952 12,286,908 - 27,185,209 273,086,803 29% S3 WASH sector support services 3,713,760 - 6,051,771 2,094,715 - - 11,860,246 1% S4 Water management in - - 7,696,594 - - 1,174,864 8,871,458 1% relation with water and sanitation services S5 Hygiene services - 28,338,160 7,466,667 25,000 - - 35,829,827 4% Total 648,748,486 51,611,110 168,498,383 30,165,501 - 58,559,510 957,582,990 10% Percentage 68% 5% 18% 3% 0% 6% 100% Year 2014 FT1 FT2 FT3 FT4 FT5 FT6 Main Users’ self- Tariff for National Internationa Voluntary supplied Repayable WASH Million of monetary units service expenditure public l public contributio funding Total Percentage services rendered transfers transfers ns s S1 Water supply services 582,435,637 10,688,964 74,359,182 7,885,898 - 81,364,446 756,734,127 68% S2 Sanitation services 160,688,081 14,526,134 77,530,601 8,620,508 - 39,699,024 301,064,348 27% S3 WASH sector support 3,854,837 - 6,214,031 2,502,819 - - 12,571,688 1% services S4 Water management in - - 9,359,787 - - 1,147,711 10,507,498 1% relation with water and sanitation services S5 Hygiene services - 30,255,930 8,553,333 30,000 - - 38,819,263 3% Total 746,978,555 55,471,028 175,996,935 19,039,225 - 122,211,182 1,119,696,925 100% Percentage 67% 5% 16% 2% 0% 11% 100% © Oxford Policy Management 76 WASH Accounts for Tunisia Year 2015 FT1 FT2 FT3 FT4 FT5 FT6 Main Users’ self- Tariff for National Internationa Voluntary supplied Repayable WASH Millions of monetary units service expenditure public l public contributio funding Total Percentage services rendered transfers transfers ns s S1 Water supply services 616,268,360 11,556,478 159,924,245 8,744,002 - 113,884,348 910,377,433 69.1% S2 Sanitation services 165,037,458 15,414,155 92,551,661 18,080,431 - 42,289,808 333,373,513 25.3% S3 WASH sector support 4,100,056 - 7,030,877 4,727,232 - - 15,858,165 1.2% services S4 Water management in - - 11,224,059 - - 4,133,232 15,357,291 1.2% relation with water and sanitation services S5 Hygiene services - 32,446,141 5,833,333 3,590,000 - - 41,869,474 3.2% Total 785,405,874 59,416,774 276,564,176 35,141,665 - 160,307,388 1,316,835,876 100.0% Percentage 60% 5% 21% 3% 0% 12% 100% Table 6 WASH expenditures by funding unit and type of service Year 2013 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Banks Networked NGOs and networked charge of and Main WASH National Regional Local service Bilateral and community- Millions of monetary units Users service economic financial Total Percentage services authorities authorities authorities provision multilateral donors based provision and quality institutio companies organization companies regulation ns S1 Water supply services 9,807,589 73,596,649 - - 350,061,869 129,775,029 - 45,958,316 18,735,206 - 627,934,656.96 66% S2 Sanitation services 13,465,362 75,199,952 - - 141,404,773 3,544,599 - 39,472,116 - - 273,086,803.05 29% S3 WASH sector support services - 6,051,771 - - 3,713,760 - - 2,094,715 - - 11,860,245.99 1% S4 Water management in relation with - 7,696,594 - - - - - 1,174,864 - - 8,871,457.83 1% water and sanitation services S5 Hygiene services 28,338,160 7,466,667 - - - - - 25,000 - - 35,829,826.64 4% Total 51,611,110 170,011,633 - - 495,180,402 133,319,628 - 88,725,011 18,735,206 - 957,582,990 100% Percentage 5% 18% 0% 0% 52% 14% 0% 9% 2% 0% 100% © Oxford Policy Management 77 WASH Accounts for Tunisia Year 2014 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Banks Networked NGOs and networked charge of and Main WASH National Regional Local service Bilateral and community- Millions of monetary units Users service economic financial Total Percentage services authorities authorities authorities provision multilateral donors based provision and quality institutio companies organization companies regulation ns S1 Water supply services 10,688,964 76,675,182 - - 402,130,309 157,846,985 - 89,250,344 20,142,343 - 756,734,127 68% S2 Sanitation services 14,526,134 77,530,601 - - 156,877,430 3,810,651 - 48,319,532 - - 301,064,348 27% S3 WASH sector support services - 6,214,031 - - 3,854,837 - - 2,502,819 - - 12,571,688 1% S4 Water management in relation with - 9,359,787 - - - - - 1,147,711 - - 10,507,498 1% water and sanitation services S5 Hygiene services 30,255,930 8,533,333 - - - - - 30,000 - - 38,819,263 3% Total 55,471,028 178,312,935 - - 562,862,577 161,657,635 - 141,250,407 20,142,343 - 1,119,696,925 100% Percentage 5% 16% 0% 0% 50% 14% 0% 13% 2% 0% 100% Year 2015 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Banks Networked NGOs and networked charge of and Main WASH National Regional Local service Bilateral and community- Millions of monetary units Users service economic financial Total Percentage services authorities authorities authorities provision multilateral donors based provision and quality institutio companies organization companies regulation ns S1 Water supply services 11,556,478 163,660,995 - - 409,110,703 180,943,547 - 122,628,351 22,477,360 - 910,377,433 69.1% S2 Sanitation services 15,414,155 92,551,661 - - 160,990,889 4,046,569 - 60,370,239 - - 333,373,513 25.3% S3 WASH sector support services - 7,030,877 - - 4,100,056 - - 4,727,232 - - 15,858,165 1.2% S4 Water management in relation with - 11,224,059 - - - - - 4,133,232 - - 15,357,291 1.2% water and sanitation services S5 Hygiene services 32,446,141 9,333,333 - - - - - 90,000 - - 41,869,474 3.2% Total 59,416,774 283,800,926 - - 574,201,648 184,990,116 - 191,949,053 22,477,360 - 1,316,835,876 100.0% Percentage 5% 22% 0% 0% 44% 14% 0% 15% 2% 0% 100% Table 7 WASH expenditures by type of provider and funding unit Year 2013 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Banks Networked NGOs and networked charge of and WASH National Regional Local service Bilateral and community- Users service economic financial Total Percentage providers authorities authorities authorities provision multilateral donors based provision and quality institutio companies organization companies regulation ns P1 Governmental organization - 21,215,032 - - - - - 3,294,579 - - 24,509,611 3% P2 Private networked provider - 124,349,519 - - 495,180,402 - - 68,231,184 - - 687,761,105 72% P3 Non-networked service provision - - - - - 133,319,628 - - - - 133,319,628 14% companies P4 NGOs and community-based - 24,447,083 - - - - - 17,199,248 18,735,206 - 60,381,537 6% organizations P5 Self-supplied users 51,611,110 - - - - - - - - - 51,611,110 5% Total 51,611,110 170,011,633 - - 495,180,402 133,319,628 - 88,725,011 18,735,206 - 957,582,990 100% Percentage 5% 18% 0% 0% 52% 14% 0% 9% 2% 0% 100% © Oxford Policy Management 78 WASH Accounts for Tunisia Year 2014 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Networked NGOs and networked charge of Banks and WASH National Regional Local service Bilateral and community- Users service economic financial Total Percentage providers authorities authorities authorities provision multilateral donors based provision and quality institutions companies organization companies regulation S1 Governmental organization - 24,107,152 - - - - - 3,680,530 - - 27,787,682 2% S2 Private networked provider - 133,150,802 - - 562,862,577 - - 98,231,669 - - 794,245,047 71% S3 Non-networked service provision - - - - - 161,657,635 - - - - 161,657,635 14% companies S4 NGOs and community-based - 21,054,982 - - - - - 39,338,207 20,142,343 - 80,535,533 7% organizations S5 Self-supplied users 55,471,028 - - - - - - - - - 55,471,028 5% Total 55,471,028 178,312,935 - - 562,862,577 161,657,635 - 141,250,407 20,142,343 - 1,119,696,925 100% Percentage 5% 16% 0% 0% 50% 14% 0% 13% 2% 0% 100% Year 2015 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Networked NGOs and networked charge of Banks and WASH National Regional Local service Bilateral and community- Users service economic financial Total Percentage providers authorities authorities authorities provision multilateral donors based provision and quality institutions companies organization companies regulation S1 Governmental organization - 27,588,270 - - - - - 8,950,464 - - 36,538,733 2.8% S2 Private networked provider - 223,145,609 - - 574,201,648 - - 124,764,383 - - 922,111,640 70.0% S3 Non-networked service provision - - - - - 184,990,116 - - - - 184,990,116 14.0% companies S4 NGOs and community-based - 33,067,047 - - - - - 58,234,206 22,477,360 - 113,778,613 8.6% organizations S5 Self-supplied users 59,416,774 - - - - - - - - - 59,416,774 4.5% Total 59,416,774 283,800,926 - - 574,201,648 184,990,116 - 191,949,053 22,477,360 - 1,316,835,876 100.0% Percentage 5% 22% 0% 0% 44% 14% 0% 15% 2% 0% 100% Table 8 WASH expenditures by type of funding and funding unit Year 2013 Financing units FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Networked NGOs and networked charge of Banks and National Regional Local service Bilateral and community- Users service economic financial Total Percentage authorities authorities authorities provision multilateral donors based provision and quality institutions companies organization companies regulation FT1 Tariffs for service rendered - 1,513,250 - - 495,180,402 133,319,628 - - 18,735,206 - 648,748,486 68% FT2 Users’ self-supply expenditures 51,611,110 - - - - - - - - - 51,611,110 5% FT3 National public transfers - 168,498,383 - - - - - - - - 168,498,383 18% FT4 International public transfers - - - - - - - 30,165,501 - - 30,165,501 3% FT5 Voluntary contributions - - - - - - - - - - - 0% FT6 Repayable funding - - - - - - - 58,559,510 - - 58,559,510 6% Total 51,611,110 170,011,633 - - 495,180,402 133,319,628 - 88,725,011 18,735,206 - 957,582,990 100% Percentage 5% 18% 0% 0% 52% 14% 0% 9% 2% 0% 100% © Oxford Policy Management 79 WASH Accounts for Tunisia Year 2014 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Networked NGOs and networked charge of Banks and National Regional Local service Bilateral and community- Users service economic financial Total Percentage authorities authorities authorities provision multilateral donors based provision and quality institutions companies organization companies regulation FT1 Tariffs for service rendered - 2,316,000 - - 562,862,577 161,657,635 - - 20,142,343 - 746,978,555 67% FT2 Users’ self-supply expenditures 55,471,028 - - - - - - - - - 55,471,028 5% FT3 National public transfers - 175,996,935 - - - - - - - - 175,996,935 16% FT4 International public transfers - - - - - - - 19,039,225 - - 19,039,225 2% FT5 Voluntary contributions - - - - - - - - - - - 0% FT6 Repayable funding - - - - - - - 122,211,182 - - 122,211,182 11% Total 55,471,028 178,312,935 - - 562,862,577 161,657,635 - 141,250,407 20,142,343 - 1,119,696,925 100% Percentage 5% 16% 0% 0% 50% 14% 0% 13% 2% 0% 100% Year 2015 FU1 FU2 FU3 FU4 FU5 FU6 FU7 FU8 FU9 FU10 Non- Body in Banks Networked NGOs and networked charge of and National Regional Local service Bilateral and community- Users service economic financial Total Percentage authorities authorities authorities provision multilateral donors based provision and quality institutio companies organization companies regulation ns FT1 Tariffs for service rendered - 3,736,750 - - 574,201,648 184,990,116 - - 22,477,360 - 785,405,874 59.6% FT2 Users’ self-supply expenditures 59,416,774 - - - - - - - - - 59,416,774 4.5% FT3 National public transfers - 276,564,176 - - - - - - - - 276,564,176 21.0% FT4 International public transfers - 3,500,000 31,641,665 - - 35,141,665 2.7% FT5 Voluntary contributions - - - - - - - - - - - 0.0% FT6 Repayable funding - - - - - - - 160,307,388 - - 160,307,388 12.2% Total 59,416,774 283,800,926 - - 574,201,648 184,990,116 - 191,949,053 22,477,360 - 1,316,835,876 100.0% Percentage 5% 22% 0% 0% 44% 14% 0% 15% 2% 0% 100% © Oxford Policy Management 80 WASH Accounts for Tunisia Table 9 WASH expenditures by type of cost and type of service provider Year 2013 WASH provider P1 P2 PE P4 P5 Networked Non-networked NGO and Governmental service service community- Self-supplied Total Percentage organizations provision provision based users companies companies organizations C1 Investment costs including 7,260,851 142,311,841 - 39,381,705 23,272,950 212,227,347 22% hard and software C2 Operating and maintenance 17,248,760 413,584,661 133,319,628 19,999,832 28,338,160 612,491,040 64% costs C3 Major maintenance costs - 46,552,000 - 1,000,000 - 47,552,000 5% C4 Financial costs - 27,522,322 - - - 27,522,322 3% C5 Support of soft assistance - - - - - - 0% costs C6 Taxes - 57,790,281 - - - 57,790,281 6% Total 23,509,611 687,761,105 133,319,628 60,381,537 51,611,110 957,582,990 100% Percentage 3% 72% 14% 6% 5% 100% Year 2014 WASH provider P1 P2 PE P4 P5 Networked Non-networked NGO and Governmental service service community- Self-supplied Total Percentage organizations provision provision based users companies companies organizations C1 Investment costs including 9,109,435 184,566,837 - 56,923,581 25,215,097 275,814,951 25% hard and software C2 Operating and 18,678,247 460,920,624 161,657,635 21,501,951 30,255,930 693,014,387 62% maintenance costs C3 Major maintenance costs - 50,939,000 - 2,110,000 - 53,049,000 5% C4 Financial costs - 32,281,753 - - - 32,281,753 3% C5 Support of soft assistance - - - - - - 0% costs C6 Taxes - 65,536,833 - - - 65,536,833 6% Total 27,787,682 794,245,047 161,657,635 80,535,533 55,471,028 1,119,696,925 100% Percentage 2% 71% 14% 7% 5% 100% © Oxford Policy Management 81 WASH Accounts for Tunisia Year 2015 WASH provider P1 P2 PE P4 P5 Networked Non-networked NGO and Governmental service service community- Self-supplied Total Percentage organizations provision provision based users companies companies organizations C1 Investment costs including 15,584,848 254,206,378 - 86,938,622 26,970,633 383,700,480 29% hard and software C2 Operating and maintenance 20,953,886 517,174,259 184,990,116 23,994,581 32,446,141 779,558,983 59% costs C3 Major maintenance costs - 57,524,510 - 2,845,410 - 60,369,920 5% C4 Financial costs - 26,731,389 - - - 26,731,389 2% C5 Support of soft assistance - - - - - - 0% costs C6 Taxes - 66,475,104 - - - 66,475,104 5% Total 36,538,733 922,111,640 184,990,116 113,778,613 59,416,774 1,316,835,876 100% Percentage 3% 70% 14% 9% 5% 100% Table 10 WASH expenditures by type of cost and type of service Year 2013 WASH provider S1 S2 S3 S4 S5 Management of water WASH sector resources Water supply Sanitation Hygiene support related to Total Percentage services services services services water and sanitation services C1 Investment costs including hard 139,017,134 65,949,362 2,094,715 2,341,136 2,825,000 212,227,347 22% and software C2 Operating and maintenance costs 409,242,229 153,948,132 9,765,531 6,530,322 33,004,827 612,491,040 64% C3 Major maintenance costs 5,900,000 41,652,000 - - - 47,552,000 5% C4 Financial costs 17,925,724 9,596,598 - - - 27,522,322 3% C5 Support of soft assistance costs - - - - - - 0% C6 Taxes 55,849,570 1,940,712 - - - 57,790,281 6% Total 627,934,657 273,086,803 11,860,246 8,871,458 35,829,827 957,582,990 100% Percentage 66% 29% 1% 1% 4% 100% © Oxford Policy Management 82 WASH Accounts for Tunisia Year 2014 WASH provider S1 S2 S3 S4 S5 Management of water Water WASH sector resources Sanitation Hygiene supply support related to Total Percentage services services services services water and sanitation services C1 Investment costs including hard 186,890,382 79,815,134 2,502,819 3,376,616 3,230,000 275,814,951 25% and software C2 Operating and maintenance costs 476,780,634 163,444,740 10,068,868 7,130,882 35,589,263 693,014,387 62% C3 Major maintenance costs 4,910,000 48,139,000 - - - 53,049,000 5% C4 Financial costs 24,561,936 7,719,817 - - - 32,281,753 3% C5 Support of soft assistance costs - - - - - - 0% C6 Taxes 63,591,176 1,945,657 - - - 65,536,833 6% Total 756,734,127 301,064,348 12,571,688 10,507,498 38,819,263 1,119,696,925 100% Percentage 68% 27% 1% 1% 3% 100% Year 2015 WASH provider S1 S2 S3 S4 S5 Management of water WASH sector resources Water supply Sanitation Hygiene services services support related to services Total Percentage services water and sanitation services C1 Investment costs including 271,948,478 96,167,155 4,727,232 7,267,616 3,590,000 383,700,480 29% hard and software C2 Operating and maintenance 549,382,265 172,676,635 11,130,933 8,089,675 38,279,474 779,558,983 59% costs C3 Major maintenance costs 6,308,920 54,061,000 - - - 60,369,920 5% C4 Financial costs 18,296,645 8,434,744 - - - 26,731,389 2% C5 Support of soft assistance - - - - - - 0% costs C6 Taxes 64,441,125 2,033,979 - - - 66,475,104 5% Total 910,377,433 333,373,513 15,858,165 15,357,291 41,869,474 1,316,835,876 100% Percentage 69% 25% 1% 1% 3% 100% © Oxford Policy Management 83 WASH Accounts for Tunisia Annex B Inventory of WASH data available Institution in Data collection Coverage of Data relevant for which WASH Reliability of Name of the data source Data availability charge method WASH services actors? data Statistics Users of data: SONEDE, INS, Statistic reports by SONEDE * SONEDE 2013, 2014, 2015 Drinking water Reliable (Users file) MARHP Financial statements audit Users of data: SONEDE, INS, SONEDE Accounting data 2013, 2014, 2015 Drinking water Reliable reports * MARHP SONEDE (Central Revenue and expenditures Users of data: SONEDE, INS, Accounting Accounting data 2013 Drinking water Reliable account - SONEDE * MARHP and Finance Department) SONEDE (Central Reports on Management and Data from different 2013, 2014, 2015, Users of data: SONEDE, INS, Accounting Drinking water Reliable Development Budgets * directorates 2016 MARHP and Finance Department) Ministry of Users of data: SONEDE, INS, Annual Performance Reports * Agriculture - 2014, 2015 Drinking water Reliable MARHP GBO Unit Allocations monitoring Ministry of Management System 2013, 2014, 2015 Drinking water Users of data: MF, INS, MARHP Reliable statements (output ADEB) * Agriculture ADEB Budget Data from different Users of data: SONEDE, INS, SONEDE activity reports SONEDE 2013, 2014, 2015 Drinking water Reliable directorates MARHP SONEDE (Central Investment tracking reports by Data from different Users of data: SONEDE, INS, Directorate of 2013, 2014, 2015 Drinking water Reliable funding directorates MARHP Management Control) 2013, 2014 2015 Difficult to Data collected from Drinking water in Users of data: SONEDE, INS, Data on GDA * DGGREE (Data available for verify data CRDAs rural areas MARHP about 1/3 of GDAs) reliability Statistical report on ONAS users ONAS Statistics 2012, 2013 Sanitation Users of data: ONAS, INS, MALE Reliable * Balance Sheet on supply and ONAS Accounting 2013, 2014, 2015 Sanitation Users of data: ONAS, INS, MALE Reliable uses * Balance sheet on revenue and ONAS Accounting 2013, 2014, 2015 Sanitation Users of data: ONAS, INS, MALE Reliable expenditures Financial statements audit ONAS Accounting data 2013, 2014, 2015 Sanitation Users of data: ONAS, M. Reliable © Oxford Policy Management 84 WASH Accounts for Tunisia reports Environment Budget/project implementation Users of data: ONAS, M. ONAS Financial information 2013, 2014, 2015 Sanitation Reliable report Environment Urban and rural Financial data of the Integrated Users of data: ONAS, SONEDE, MDICI (CGDR) Financial data 2013, 2014, 2015 DWS, and Reliable Development Program MIDICI sanitation Financial data of the Integrated Urban and rural , Users of data: ONAS, SONEDE, MDICI (DGDR) Financial data 2013, 2014, 2015 Reliable Rural Development Program and sanitation MIDICI Urban and rural General Population and INS Statistics 2004, 2014 DWS, and ONAS, SONEDE, etc. Housing Census sanitation Household Budget, Urban and rural Users of data: INS, MALE, MDICI, Consumption and Living INS surveys 2005, 2010, 2015 Reliable DWS etc. Standards Survey MICS 2012 UNICEF surveys 2011-2012 DWS + Sanitation Study SONEDE’s financial Urban and Rural Users of data: SONEDE, MARHP, SONEDE Study 2016 balance DWS MF Other sources of data  Website of the Ministry of Finance: http://www.finances.gov.tn  Website of the Objective-Based Budget Management (with a focus on results): http://www.gbo.tn  Open Budget Portal of the Ministry of Finance: http://mizaniatouna.gov.tn © Oxford Policy Management 85 WASH Accounts for Tunisia Annex C Classification of WASH Accounts Classifications of WASH services Code Category Activities included Description Proposed detail  Collection of rainwater and water from various sources, such as Water collection and intake rivers, lakes, and wells  Treatment of water for water supply, desalination of sea/surface Treatment for the supply of drinking water, water by treatment plants including desalination of seawater DWS through a network  Storage of water system  Large-scale transport/transfer of water via pipelines Water supply  Distribution of water through main pipelines (includes pumping Networked water distribution water and transport through local water systems) Management of water supply connections and  Water connection management and consumer support activities consumer support activities S1 DWS  Recovery of rainwater and water from various sources (rivers, services lakes, wells) by means of manual pumps, spring catchments, hand pumps, spring catchments, gravity systems and recovery of water from fog Treatment of water at the point of use for  Treatment of water at the point of use for consumption purposes drinking purposes Basic Drinking water  Storage of water in tanks Storage of water in tanks Supply Distribution of water through small distribution  Distribution of water through small distribution systems (pipes, wells networks (pipes, wells or trucks) or or trucks) or local neighborhood networks typically with shared neighborhood networks with shared connections/ points of use connections/points of use  Management of water access points and consumer support Management of water access points and activities. consumer support activities.  Construction of sanitation facilities in homes and communities and Construction of sewage structures and connection to main sewer systems connection to the sewerage network Collection of sewage by network and collectors  Waste water collection through extensive sewerage systems, Network sanitation including hydro-curing, pumping stations and including main sewers, sewage pumping stations, and drainage lines emptying by truck Sewerage S2 services  Treatment and disposal of waste water, including disposal of Waste water treatment and sludge disposal sewage sludge.  Promotion of sanitation, including promotion of demand and sanitation marketing (promotion of hygiene not included where it can be Basic sanitation broken down separately)  Construction of basic sanitation facilities in homes and communities Construction of self-contained sanitation © Oxford Policy Management 86 WASH Accounts for Tunisia (latrines, septic tanks) facilities in households and communities (latrines, septic tanks, etc.) Collection and transport of waste water from  Collection and transport of sludge from individual facilities (pit self-contained facilities (well draining and emptying and cleaning services) cleaning services)  Treatment and disposal of sludge by treatment facilities Wastewater treatment and sludge disposal. Policy development and governance of the  Policy and governance in the water and sanitation sector, including: water and sanitation sector including: o Sector Policy Development o Sector Policy Development o Legislation development o Legislation: Defining and enforcing drinking water and and strengthening of drinking water and wastewater standards for municipal wastewater wastewater standards for municipalities o Regulation of water supply o Regulation of activities related to drinking water supply WASH and sanitation activities and service and sanitation, and service providers Sector providers S3 Support o Sector planning, including Services o Sector planning, including estimating the sector ’s future estimating the sector’s future financial financial needs needs o Administration of water and o Management of water and sanitation programs sanitation programs Education/training & capacity-building in water  Capacity-building in the drinking water supply and sanitation sector. supply and sanitation Promotion of sanitation including promotion of demand and sanitation marketing  Collection and use of quantitative and qualitative data on water Mobilization of water resources and catchment resources structures Water  Creation and sharing of knowledge on water Creation and sharing of knowledge on water resources Protection of water management resources Conservation and rehabilitation of inland surface  Preservation and rehabilitation of surface inland waters (rivers, (in relation waters (rivers, lakes, etc.), groundwater and S4 lakes), groundwater and coastal waters with water coastal waters and sanitation  Prevention of water contamination Prevention of water contamination services) Integrated watershed projects and related  Integrated projects on river basins and related institutional activities; Watershed development institutional activities, monitoring of river flows, monitoring of river flows; dams and reservoirs. dams and reservoirs  Programs to promote hygiene by government or service providers, Promotion of hygiene including handwashing campaigns, menstrual hygiene management and Hygiene chlorine distribution S5 services  Handwashing, baths, laundry and washing products/equipment Hygiene activities at the (soap, tippy-taps, bathrooms) household level  Water treatment at points of use. © Oxford Policy Management 87 WASH Accounts for Tunisia Classifications of uses Code Category Definition What is included in this category Consumption by households of water and sanitation services that are provided Consumption of WASH services subject to tariffs provided to households by providers against the payment of fees for the service provided. This includes (connected or not) by operators in urban and rural areas (SONEDE, GDA, Domestic use with U1 water supply for households that are connected to the water and/or sanitation ONAS, and private vendors including street vendors) service provided network, but also supply from public standpipes or other providers (such as street vendors using water barrels). Consumption by households of water and sanitation services through self-supply. WASH services carried out in whole or in part by households and operated by Domestic use through Households pay an initial investment (construction of a private well or latrine) to households themselves. U2 self-supply access the service and then cover the operating and maintenance costs of their assets. Consumption by non-domestic users of water and sanitation services supplied by Consumption of tariffed WASH services provided to users in trade, a service provider. This includes institutional users (government agencies such administration, municipalities, collective entities, industry, tourism and other as ministries, hospitals, schools), voluntary organizations such as NGOs and Non-domestic use with community-based organizations, foundations and industrial and commercial U3 service provided users. Service providers are compensated by a tariff. This category can be subdivided into two sub-categories: U3.1 Institutional use supplied by a provider, and U3.2 Industrial and commercial use supplied by a provider. WASH services carried out entirely or in part by non-domestic users themselves Consumption by users of water and sanitation services for non-domestic use (trade, administration, municipalities, collective entities, industry, tourism and through self-supply. This includes institutional users such as government other). agencies (ministries, hospitals, schools), voluntary organizations such as NGOs Non-domestic use and community-based organizations, foundations and industrial and commercial U4 through self-supply users. Users make an initial investment to access the service and cover the operating and maintenance costs. This category can be subdivided into two sub-categories: U4.1 Institutional use through self-supply, and U4.2 Industrial and commercial use through self-supply. © Oxford Policy Management 88 WASH Accounts for Tunisia Classification of service providers Code Category Definition What is included in this category Public service providers, including public bodies such as ministries, hospitals or schools, as well as municipalities providing direct service (i.e. entities that operate the services directly rather than through a separate legal entity). This includes government institutions that provide sector support services in areas such Ministries (MF, M.AGR, MALE, MSP, MDICI) and P1 Government agencies as policy development, planning, or regulation. Municipalities This category can be subdivided into sub-categories: P1.1 National authorities, P1.2 Regional authorities, P1.3 Local authorities. Operators who own and/or operate facilities for the production and distribution of water and sanitation services through networked systems for the general public and for wholesale supply. Such operators may be private or P2 Networked service providers SONEDE, ONAS, Private, etc. public, mandated or independent, large, medium or small in size, providing either a public service or a service for their own use as part of self-supply. Companies providing WASH goods or services at small scale along the value chain through non-networked Private companies providing bottled water Non-networked supply systems. They typically have a low-skilled workforce and small initial investments. They exist in various Businesses (retail water sales from private P3 organizational forms ranging from cooperatives to private, formal or informal enterprises. This category companies sources, pit emptying, informal water retailers) includes real estate developers involved in infrastructure construction. Real estate developers and developers Non-profit organizations seeking to complement public WASH services. They generally have a formal structure NGOs and community-based and offer services to individuals other than their members, and are in most cases registered with national P4 Rural associations (GDA) organizations authorities. Community-based organizations are a type of small NGO that aims to mobilize, organize or empower their members, usually in a local area. Users who provide themselves services that may be for domestic use (household) or non-domestic use (institutional, industrial or commercial). They pay an initial investment to access to a well, a private latrine, or a private system, and then cover the operating and maintenance costs. This category can be subdivided into two Rural households without a network (WASH) P5 Self-supplied users sub-categories: P5.1 Domestic self-supplied users, and P5.2 Non-domestic self-supplied users. Industries (Tunisian Chemical Group - GCT, Non-domestic self-supplied users may include mining companies or any other industry producing water for Gafsa Phosphates Company - CPG, etc.) their own consumption. © Oxford Policy Management 89 WASH Accounts for Tunisia Classification of financing units Code Category Definition What is included in this category Individuals who provide for themselves services such as individual sanitation. Either they pay in advance through initial investments (for example, for a private well or latrine) or buy services from a variety of providers, including tank trucks. FU 1 Users (non- Non-network users (WASH) networked) This category can be subdivided into several sub-categories: FU1.1 Users of domestic services, FU1.2 Users of non- domestic services; FU1.1.1 Users of domestic services provided by service providers and FU 1.1.2 Self-supplied domestic users. Public authorities at the central government level, including relevant ministries, such as the Ministry of Finance or the FU2 National authorities Ministries (MF, M.AGR.MALE, MDCI, MSP) Ministry of Water, or national institutions. FU3 Regional authorities Public authority operating at the regional level. None FU4 Local authorities Public bodies operating in a smaller geographical area, such as a city, village or district Communes, rural councils Operators who own and/or operate facilities for the production and distribution of water and sanitation services Networked service through network systems for the general public and for wholesale supply. These operators may be private or public, FU5 provision SONEDE, ONAS mandated or independent, large, medium or small in size, providing either a public service or a service for their own companies use in self-supply. Retail water retailer from private sources, Société Companies that provide small-scale WASH goods or services along the value chain through non-networked systems. de Vidange des Fosses Companies Offline FU6 They typically employ low-skilled workforce and require low initial investment. They exist in various forms, ranging Service Providers Communes (to be checked) from cooperative to the private enterprise, and may be formal or informal. Real estate developers Bodies in charge of economic Public authority in charge of the overall supervision of the WASH sector in areas such as control of tariff, water quality, FU7 regulation and Ministry of Health, ANPE, APAL competition within the sector). quality management Bilateral and Governments that provide official development assistance directly to a country or through multilateral international World Bank, KfW, AfDB, EBRD, IDB, AfDB, Swiss FU8 multilateral donors institutions (such as the UN, the World Bank or regional development banks). Cooperation, JICA, UN, etc. Non-profit organizations seeking to complement public WASH services. They generally have a formal structure and NGOs and offer services to individuals other than their members, and are in most cases registered with national authorities. FU9 Community Agricultural Development Group (GDAs) Community-based organizations are a type of small NGO that aims to mobilize, organize or empower their members, Organization usually in a local area. Commercial banks Banks and financial A financial institution that provides banking services, such as the collection of deposits or the granting of credit and FU10 institutions loans to individuals and/or small businesses and companies. Loan and Local Government Support Fund (CPSCL) © Oxford Policy Management 90 WASH Accounts for Tunisia Classification of funding sources Code Category Definition What is included in this category Payments made by users to service providers for obtaining and using services. FS1 Tariffs for services Tariffs provided This category can be subdivided into two sub-categories: FS1.1 Tariffs for services for domestic use, FS1.2 Tariffs for services for non-domestic use Funding provided by users to invest in a service or to provide the service themselves. Self-supplied users pay an initial investment to access the service (e.g. a well, a private water production system or a private latrine). Thereafter, they Self-supplied users’ cover the operating and maintenance costs themselves. This can be done in the form of cash, material or time, but Construction of majel/faskia/septic tank/latrine, FS2 only cash payments are included in the WASH accounts. expenditures etc. This category can be subdivided into two sub-categories: FS2.1 Self-supply costs of users for domestic services, FS2.2 Self-supply costs of users for services for non-domestic use. Public transfers to WASH actors from central or local public authorities. These are often subsidies from taxes or other As regards rural water supply and sanitation in National public FS3 public sources of revenue. They includes subsidies, but not concessional loans that fall under FS6 – Repayable particular, operators (GDA and ONAS) receive transfers funding. subsidies for the funding of WASH services. International public Donations from foreign public donors and multilateral agencies. Concessional loans are excluded and fall entirely Often relate to support measures, institutional FS4 transfers under FS6 - Repayable funding. strengthening, etc. (associated with loans) Voluntary donations or donations from international and national non-governmental donors, including charitable Voluntary FS5 foundations, non-governmental organizations (NGOs), civil society organizations and natural persons (remittances, Swiss Cooperation contributions cash payments). Concessional loans are excluded and fall entirely under TF6 - Repayable funding. Sources of financing from private or public sources that are repayable, such as loans (including concessional loans FS 6.1: World Bank, KfW, AfDB, EBRD, IDB, and guarantees), equity investments or other financial instruments such as bonds. FS6 Repayable funding AfDB, Swiss Cooperation, JICA, UN, etc. This category can be subdivided into 2 subcategories: FS.1 Concessional repayable funding and FS.2 Non- FS 6.2 .: Commercial banks concessional repayable funding © Oxford Policy Management 91 WASH Accounts for Tunisia Classification of costs Type of costs Definition Investment costs, Initial investments associated with the introduction of new services, in particular "physical" costs such as the purchase of pipes, toilets and C1 including related pumps, and associated one-off "soft" assistance costs, such as detailed design/engineering or training and consultancy. hardware and software Current operating and maintenance costs required to ensure the smooth operation of services (payroll, fuel, or other regular purchases). Operating and Operating costs are recurring expenditures involved in the supply of WASH goods and services, such as labor, fuel, chemicals, materials and C2 maintenance costs bulk water purchases. Maintenance costs are current expenditures required to ensure that systems operate in accordance with rated performance but do not include major repairs or renewals that are not considered recurring expenses. Major occasional maintenance costs for renewal, replacement and rehabilitation of a system that are higher than current repair and replacement C3 Major maintenance costs costs. Such key expenditures are necessary to avoid system failures and must be planned and budgeted. If these costs cannot identified separately from investment costs (C1), they must be included in this category and explicitly identified as such. Includes principal repayments and cost of capital, including borrowing costs (interest on loan) and cost of equity (dividends if a return is paid to C4 Financial costs shareholders). Includes direct and indirect support costs:  Direct support includes expenditures for pre- and post-construction support activities intended for local stakeholders, such as Support costs or cost of C5 community training or private sector operators, users or user groups. soft support  Indirect support includes the cost of planning and policy development at the government level, including skills and capacity-building for professionals and technicians. These costs have a direct impact on projects’ long-term sustainability. Includes taxes and tax levies collected from service providers such as:  Taxes on production (corporate income tax, property tax, leasing tax on rental of fixed assets, taxes for the occupation of the public C6 Taxes domain or related to payroll).  User fees related or allocated to the sector, such as royalties, contributions or fees for water use or sewage disposal in water bodies.  Other production costs levied for specific uses, such as social security contributions. © Oxford Policy Management 92