23741 a rural think tank UNDP - World Bank fl I ,'Water and Sanitation Program - South Asia ,ntn May 199 Retructuring PHEDs/Water Boards: FOREWORD UWh adHow am happy to note that Jal Manthan, a Rural Think Tank involving the lead Frvno- actors in the sector, has been set up. For the first discussion, this forum has chosen the very timely and relevant topic Restructuring PHEDs/Water Boards: Why and How. PHEDs/Water Boards in India are instruments of service delivery and should also be the vehicles of RWSS reforms, which the Government of India has recently formulated. The reforms emphasize three main themes: (i) adopting a demand-responsive approach (ii) capital cost sharing and full operation and maintenance responsibility by users and (iii) change in the role of government from provider -77 to facilitator. If the reforms are to be effectively implemented, the instruments themselves have to undergo change. f O r I How this is to be done is the big question. There are no easy solutions to this question but the important thing is to think creatively and be open to different viewpoints and approaches. Many significant topics will be debated in future Jal Manthans. 77 I am glad that WSP-SA has taken this important initiative and look forward to participating in many more Jal Manthans. __ The graphic depiction of Public Health Engineering Departments (PHEDs) by the participants uniformly advocated reforms (session 1). Many illustrations also emphasized the need for a participatory and gender sensitive approach in a transformed PHED. The Jal Manthan meaning 'churning of water' is a Rural Think Tank. It is intended to be a travelling quarterly meeting. This aims to be an open network encouraging frank and informal policy-level dialogue between Pa/at Mohandas sector practitioners and professionals.The focus of every meeting will be determined by the demand from stakeholders such as State Governments, NGOs, Panchayati Raj Institutions etc. It also seeks to promote Former joint Secretary & Mission Director, exchange of ideas on best/new practices in the Rural Water Supply and Sanitation Sector. Rajiv Gandhi National Drinking Water Mission Presently Additional Secretary, Hosted by: Rajiv Gandhi National Drinking Water Mission, United Nations Inter Agency Working Group Ministry of Water Resources for Water and Environmental Sanitation, UNDP-World Bank Water and Sanitation Program, South Asia. 2 MANTHAN ON PHEDs: The Process Meaningful exchanges set the tone for the participatory nature of the think tank Welcome, Plenary and Concept: Piers Cross (Regional Team on Swajal and subsequently addressed the participants. He Leader, Water and Sanitation Program - South Asia) acted as spoke of the need for institutional changes in the PHED structure facilitator and steered the group through various exercises and of the need for financial allocation to the states to be tied to during the workshop. After welcoming the group, he asked reforms. He also stressed that more states should pilot changes, Parameswaran lyer, Team Leader of the WSP-SA's India Team to initially at the district level, and also learn from similar reform introduce the JaltManthan concept. experiments in other states. Introduction and Group Woric This was followed by an Session 4A: Group Work - Critical Constraints and PHEDs: ice-breaking session, where the participants introduced During the coffee break four WSP-SA co-facilitators compiled themselves in five groups and talked about their professional the constraints listed by the groups and categorized these into as well as personal achievements. This informal and broad thematic areas. These were subsequently presented in the meaningful small group exchange set the participatory tone of large group after the coffee break and they were asked to select the think tank. what they believed to be the four major constraints. These finally were: (i) Political Will, (ii) Human Resource Management, Session 1: Group Work - Do PHEDs need to be restructured? (iii) Future-Partnerships and (iv) Change Management. These Each of the five teams addressed the issue whether PHEDs topics then became subjects for further group work. needed to be restructured and also depicted their vision of a ,reformed' organization on a chart. It was interesting that, Session 4B: Group Work - Planning to Overcome Constraints: despite the PHED presence, all the groups unanimously agreed The participants then had the option of being a member of any that there was need for restructuring. Some of the artistic one of the above groups which met for a brain storming session depictions of reform are presented on the cover. on how to overcome these constraints. These groups worked till lunch and then presented their findings to all the participants. Session 2: Group Work - Constraints in Restucturing: In this Important points were picked up from the group presentations group exercise, the participants worked in the five groups to list for further discussion in plenary. the major constraints in restructuring PHEDs. Session 5: Plenary - Developing a Comprehensive Action Plan: Session 3A: Plenary - GOI Reform Agenda: G.V. Abhyankar, In this session, the entire group participated in drawing up a from the World Bank made a presentation on the reform agenda Comprehensive Action Plan based on the key issues that of the Government of India. emerged from the group discussions. Session 3B: Plenary - The SWAJAL Model: S. Raju, from UP Concluding Session: MR. Sreenivasa Murthy, Secretary Rural made a presentation to the group on the institutional structure of Development, Karnataka, delivered the concluding remarks Swajal and the basic principles on which their success in rural where he acknowledged the important role PHEDs had played water supply and sanitation service delivery was based. so far, but stressed the need for changes in the light of new Mr. Palat Mohandas, Mission Director, Rajiv Gandhi National requirements and expectations. The group also discussed topics Drinking Water Mission joined the group during the presentation for deliberations at future Jai Manthans. INDIA'S REFORM AGENDA Overcoming constraints Building on Existing Foundation 1. POLITICAL WILL Mr. G.V. Abhyankar, Senior Sanitary Engineer, World Bank, The group felt that to implement reforms, there should be pressure briefed the group about the joint Government of India (GOI) from both above and below. From above, the pressure could come - World Bank Sector Review for Rural Water Supply, from funding conditionalities from the central government and which had identified three key elements in the sector donors. Similarly, the people and Panchayati Raj Institutions (PRIs) reform strategy: have a key role to play in building pressure from below to catalyze 9 Enurean nablng nvionmet fr rform(poicypolitical will to reform the PHEDs. During the group exercise, some *Eraen g r f o felt that there was a need to adopt shock therapy (like abruptly framework). * Establish institutional sustainability (clarifying and stopping financial allocations from the Center to the states until redefining roles of institutions and stakeholders). reforms actually took place), while others suggested a milder * Establish financial viability and sustainability (by capital cost sharing, full O&M cost recovery and reductions in operating costs). 2. HUMAN RESOURCE DEVELOPMENT In spite of major achievements in the Rural Water Supply & Sanitation (RWSS) sector in India, sustainability and water The group accepted that the communities/users should take over the quality are still major concerns. The sanitation coverage O&M of RWSS projects and, wherever necessary, use the private throughout rural India is also very low. sector for maintenance of tube-wells, etc. A debate ensued at this point when some maintained that communities would not have the GOI's recommendations skills to manage large multi-village schemes. Others in the group felt that it was the PHED which often struggled to get the major repairs To ensure institutional sustainability, GOI recommends the done on time and that there was indeed a role for multi-village following five actions in its recent reform package: groups to form guilds and run the O&M of bigger projects. Local *capacity development was of course a key issue here. On the issue to Eablue P anhayat inst itu ions an e r .co muity gr up of the exit policy for surplus staff, it was agreed that appropriate to assume lead roles in decision making for.RWSS. * Promote and facilitate participation of the NGOs and the private sector; define appropriate roles of the NGOs/private sector as well as external support 3. FUTURE PARTNERSHIPS agencies. * Strengthen existing institutional capabilities to under take Three key issues were discussed here: (i) building the capacity of consumer orientation, policy development, planning, NGOs, PRIs and the private sector, (ii) incentive structure for the implementation, O&M, monitoring and evaluation, and promotion of health and sanitation. * Restructure public sector institutions. breaking down some parts of the current organization into smaller * Streamline operational guidelines and procedures for efficient units that work as partners. These could be experimented RWSS agencies. through the Rajiv Gandhi National Drinking Water Mission's proposal Objectives of PHED Restructuringc * Accommodate adoption of a demand-driven approach 4. CHANGE MANAGEMENT and participatory processes based on empowerment of villagers. In a reformed PH ED, as the group visualised it, the top management T Focus on long-term sustainability of investments including should preferably be professional managers. The group discussed good quality of construction. the need for an overall sectoral vision. Field-level demonstrations f Ensure integrated service delivery for water, sanitation could be used to facilitate transformation. There was a perceived and hygiene education. need to first identify areas needing change and then look for skills h Ensure stable and reliable back-up support to necessary to bring about the shift. This could be linked to incentives communities in O&M management. and disincentives in the PHEDs. The group emphasized the need to develop a flexible program that would concentrate on building Comprehensive Action Plan approach (e.g. tapering off the financial allocation from the Center). All participants however agreed that there was need for the PHEDs to have a long-term vision. There was also a lack of available information on implementation of reforms in other states and instances of successful restructuring of PHEDs. Equally important was felt to be the need to have champions of reforms 1. POLITICAL WILL Model within the political and administrative structure, who would People facilitate the restructuring of PHEDs and would implement the Unwillingness to Change GOI 73rd Constitutional Amendment in letter and spirit. For general PRIs 0 N advocacy and public action, NGOs, the civil society and the Funding media had important roles to play. Q labor legislation was necessary, and an attractive voluntary retirement package would induce existing staff to explore 2. HUMAN RESOURCE DEVELOPMENT opportunities in the private sector. Resitanges to ChangeGO There was also a need to reorient and redefine jobs through a process of training and familiarization visits. The management The recommendations on this subject were: s hould be made more accountable to the communities and Amending labor legislation for easier exit responsive to their needs, through institutional reforms. Reengineering mindset of PHED staff shoulildingmcapacity ofccommunitytandhservicenproviders It also felt that there was an urgent need to familiarize the elected * Strengheni PRIs representatives with new management norms and to inform them of successful reforms in the state and in other parts of the country. 3. FUTURE PARTNERSHIPS of starting 57rural water supply and sanitation pilots nationwide. Donor funds could also play a key role in building capacity andMantemPrveScor&N s helping in restructuring the PHEDs. The participants felt that theret ae was a need to encourage specialized private agencies to handle the Pilot projects, partnerships O&M, while the PHED takes on the role of a regulator. e Reorganize PHEDs into smaller units * UBudling serice delouivey e.r, c poidr The group also felt that a range of O&M options should be ountry. available to the beneficiaries. Planning & design Implementation O&M by different agencies capacity and would view the state as a facilitator. Important lessons 4 HNEMNGMN could also be learned from within the public sector and also from the private sector (e.g. how TISCO organizes the water supply for Jamshedpur). Strategies for transition should come from internal as aTb 'trier well as external experiences. it would be worthwhile to look at other government agencies outside the sector that have modified themselves and learn from their revamping exercises. e Change in one state to have a multiplier effect on other states. It was agreed that the partners would go back to their constituencies and further discuss the above issues. 5 SWAJAL Community contributing labour Leading the way SERVICE delivery in the Uttar Pradesh (UP) rural water supply sector is undertaken through a public sector organization, the UP Jal Nigam (UPJN). As in other states, this is a highly centralized water board. Funded by government grant financing, the UPJN constructs and maintains water supply schemes in the state. Often there is no capital cost recovery, and the utility finds it difficult to collect operation and maintenance (O&M) costs. Owing to poor O&M, nearly one-third of the schemes are out-of-order at any point of time. In an attempt to improve the situation, the UP Government piloted an alternative service delivery mechanism model through the $ 71 million World Bank-assisted SWAJAL Project in 1994. By 2002, the project aims at benefiting 1.2 million people in 1000 villages in the UP g- hills and Bundelkhand. The major objectives of the project are: * Sustainability of investments through adopting a demand- responsive approach for village selection, advocating the use of water as an economic good and introducing partial capital cost recovery and full cost recovery for O&M. * To develop a coherent community participation approach that provides for a major decision-making role for the communities in the identification, planning design, construction and O&M of their water supply and sanitation schemes. * To create viable institutional structures to facilitate decentra- lized decision-making and, in so doing, test an alternative to the current supply-driven service delivery mechanism in the sector. Institutional sustainability is perhaps the most important aspect of overall sustainability. COMMUNITY LEVEL This can be achieved through an appropriate institutional structure as well as suitable manage- THE ment arrangements and project strategies.The NGO DISTRICT/BLOCK LEVEL INVERTED Swajal institutional framework operationalizes the DEMAND - decentralized decision-making and demand-responsive RESPONSIVE model envisaged in the project. It consists of a network of PMU STATE LEVEL MODEL ___ 'three organizations: the Village Water and Sanitation Committees (VWSCs) at the community level, the Support Organizations (usually NGOs) at the district level and the Project Management Unit (PMU) at the center. There is a close inter-relationship between these three partners, which goes beyond a mere contractual obligation. In its organizational set up, the project likes to depict the VWSCs at the top and the PMU at the bottom, as the project's philo- sophy is that the communities play the most important role. *k. Based on the Swajal experience, the Government of India's reform package includes (i) increased funding for capacity building activities, and (ii) a degree of cost recovery from users. Faced by competition from Swajal, the UPJN is also beginning to adopt a more participatory style of functioning. The true test of sustainability for water and sanitation service delivery, however, lies in the replication of the key elements Community mapping exercise of the Swajal pilot approach across the state. For more information on the Rural Think Tank, please contact: jal manthan a rural think tank do India Country Team, UNDP- World Bank, Water and Sanitation Program - South Asia 55, Lodi Estate, New Delhi 110 003 Tel: 0091-11-4690488/89; Fax: 0091-11-4628250; E-mail: piyer@worldbank.org 0m0nt a rural think tank GOVERNMENT K. Chandramouli S. Paramasivan L.A. Mandalia Secretary, Rural Development Dept. Country Representative Water Sciences Specialist A. Roy Govt. of Uttar Pradesh, Secretariat Water Aid (London) UNESCO House Chief Engineer, PHED Lucknow 226 001 South India Office 8 Poorvi Marg, Vasant Vihar Govt. of West Bengal 22 A 1st Street, New Colony New Delhi 110 057 2nd Floor, New Secretariat Subbiah Raju Mannarpuram Calcutta 700 001 Director, PMU (UP RWSES Project) Thiruchirapalli 620 020 Vishwas Joshi Dept. of Rural Dev. Govt. of U.P. Progarnme Officer B.K. Surana 3, Fawn Brake Avenue Viswa Ranjan Ghosh UNICEF Add. Chief Engineer Sarojini Naidu Marg Head, Economic Department 73 Lodi Estate, New Delhi 110 003 Public Health Engineering Dept. Lucknow 226 001 Welham Boy's School Govt. of Rajasthan 5 Circular Road Satyajit Singh North Wing Secretariat NGOs & PRIVATE SECTOR Dehradun 248 001 Coordinator, UN IAWG-WES Jaipur 302004 UNDP-World Bank Prof. S.S. Chakraborty EXTERNAL SUPPORT AGENCIES Water & Sanitation Program Harish Kumar Ramakrishna Mission 55 Lodi Estate, New Delhi 110 003 Under Secretary, RGNDWM Lokasiksha Parishad Francis Watkins Dept. of Rural Areas & Employment Narendrapur, 24 Paraganas Social Development Adviser, DFID UNDP-WB Ministry of Rural Development West Bengal 743 508 B-2, Anand Niketan Water & Sanitation Program 8th Floor, Paryavaran Bhawan New Delhi 110 021 55 Lodi Estate, New Delhi 110 003 CGO Complex Air Vice Marshal S. Sahni New Delhi 110003 Development Alternatives Smita Mishra Piers Cross hansi, U.P. Economist, DFID Regional Manager K. Deenabandu B-2, Anand Niketan Managing Director Snimer K. Sahani New Delhi 110 021 * K.M. Minnatullah Tamil Nadu Water Supply & Group Leader Sr. Program Officer Drainage Board Tata Consultancy Services Debashish Bhattacharji TWAD House, Chepauk 3rd Floor, Vikram Tower Project Coordination Manager, DFID 0 Barbara Evans Chennai 600 005 Rajendra Place, New Delhi B-2, Anand Niketan Regional Urban Specialist New Delhi 110 021 M.R. Sreenivasa Murthy Nabarun Rai Chouhary Parameswaran Iyer Secretary, Govt. of Karnataka Project Leader Gillian Mellsop India Country Team Leader Rural Dev. & Panchayat Raj Dept. Tata Consultancy Services AUSAID, 1/50-G Shanti Path 3rd Floor, flnd Stage, MS Building 3rd Floor, Vikram Tower Chanakyapuri, New Delhi 110 021 * A.K. Sengupta Ambedkar Veedhi Rajendra Place, New Delhi Water & Sanitation Specialist Bangalore 560 001 G.V. Abhayankar A.). James Sr. Sanitary Engineer Pushpa Pathak Palat Mohandas Environmental & Natural Resource The World Bank Urban Specialist Joint Secretary & Mission Director Economist 70 Lodi Estate, New Delhi 110 003 RGNDWM 122 Gulmohar Enclave, New Delhi * Fiona Fanthome Ministry of Rural Development Geetanjali Chopra Operations Officer 8th Floor, Paryavaran Bhawan Arun Pandhi Communications Associate CGO Complex 10 Gandhi Road External Affairs, The World Bank New Delhi 110 003 Dehradun 248 001 70 Lodi Estate, New Delhi 110 003 Reprint August 2000