1UNDP -World BankWater andSanitation ProgramMaking Rural WaterSupply Sustainable:Recommendations from a Global StudyTravis KatzJennifer SaraThe study team members included: JenniferSara, Travis Katz, Kihoon Lee (Washington, DC),Annie Manou Savina (Benin); Rafael Vera andJose Quiton Daza (Bolivia); Mario Nuñez, TonyBrand and Steve Maber (Honduras); GillianBrown and Richard Pollard (Indonesia);Shahrukh Khan, Raja Rehan and K.M.Minatullah (Pakistan); and Asingwiire Narathiusand Rose Lidonde (Uganda). The peer reviewersinclude: Tim Campbell, Mike Garn, ChristineKessides, and Caroline Van den Berg.2The Rural Water Supply Global Study aims to: • clarify what is meant by “demand-responsiveness” in theory and in practice; and • measure and quantify the impact of demand-responsiveness on the sustainability of rural water systems. The study found that employing a demand-responsive approach at the community levelsignificantly increases the likelihood of water system sustainability. However, it alsofound that even projects that have adopted this approach tend to apply it inconsistentlyamong the communities where they work. The study found that to be effective, a demand-responsive approach should include procedures for an adequate flow of information tohouseholds, provisions for capacity-building at all levels, and a re-orientation of supplyagencies to allow consumer demand to guide investment programs. The study also foundthat the existence of a formal organization to manage the water system and training ofhousehold members are significant factors in ensuring water system sustainability.Positive correlations were also found between water system sustainability and watercommittee training in operations and maintenance, and the quality of construction of thesystem and water system sustainability, although these findings are less consistent acrosscountries. A complete report of the study will be available in February 1998.Making Rural Water Supply Sustainable:Recommendations from a Global StudyThe Rural Water Sector and the World BankDuring the past several years, World Banklending in rural water supply has seen adramatic increase. The Bank finances rural watersupply investments through two broad projecttypes. The first type is the stand-alone rural watersupply project, which typically provides onlywater or water and sanitation services, and isusually implemented by government agencies. Inaddition, the Bank provides resources for ruralwater supply as components of other projecttypes, most notably social investment funds.Social funds are quasi-financial intermediariesthat channel funds to small-scale projects for poorcommunities. These projects can fund a numberof sub-project types (such as water supply,schools, or roads), and deserve special attentionas they have gained increasing importance in theBank’s lending program (over 45 projects havebeen approved and more are underway), andoften include large rural water supplycomponents. Both stand-alone and multi-sectoralprojects were examined in the study.3Study Context: Weak Sector Policies and RulesIn many developing countries, rural water supplysector policies have been poorly defined andpublic sector implementing agencies historicallyweak. This situation has been exacerbated asdonors and implementing agencies bypassgovernments to set their own policies and rulesfor their projects. In addition, where the Bank hasa strong presence, it has often sent inconsistentpolicy signals. In some cases, the Bank hasfinanced independent multi-sectoral and stand-alone rural water supply projects in the samecountry that adopt different rules and objectivesto build very similar infrastructure.A Demand-Responsive ApproachAgainst this background, participants at the 1992International Conference on Water and theEnvironment in Dublin endorsed a set of principlesadvocating the concept of water as an economicas well as a social good that should be managedat the lowest possible level. The demand-responsive approach to providing services is aProjects in the studyCountry Bolivia IndonesiaPakistan UgandaProjectObjectiveSource of fundsProject typeYear initiatedDuration of phase included in studyTotal project cost (millions of US$)Cost of water supply component(millions of US$)Intended number of beneficiariesNumber of communitiesWaterFranceStand-alone WSS19894 yrs8.28.2200,00033Employmentgeneration,improve basic servicesIDAMulti - sectoral19904 yrs (FIS1)95.616.4550,000242Water,sanitation,hygieneDutch,UNDP-WBStand-aloneWSS19914 yrs 2.82.831,000520Employmentgeneration,povertyalleviationIDA,KfW,USAIDMulti - sectoral19905 yrs (FHIS1) 97.221.3No info244Water,sanitation,healthSwissStand-aloneWSS198610 yrs 1.901.9060,000139Publicinfrastructure,employmentgenerationIBRDMulti - sectoral19954 yrs 83.8about 1.73 million1,200Water,sanitation,hygiene,healthIBRDStand-aloneWSS19946 yrs 123.3123.32 million1,400Water,sanitationIDAStand-aloneWSS19929 yrs 194.2194.2630,0001,600Water,sanitation,agricultureGovernment,donorsMulti - sectoral1991Ongoing 16.4(GOP only)16.4(GOP only)385,273986Water,sanitation,healthGovernment,DANIDAStand-aloneWSS19915yrs(phase 2) 3535761,4002,892CFDSIF-1 YRWSSFHIS-1PROPARVIP-Java WSLICC LGRDNRSPRUWASABeninHondurasSource: project documents4direct extension of these principles. It advocatesthat to manage water as an economic good,projects should let consumer demand guide keyinvestment decisions. Specifically, projects shouldadopt clear and transparent rules that allow usersto select the level of service, technology, andlocation of facilities that best fit their needs, with aclear understanding of the costs andresponsibilities that these options bear.An increasing number of projects are applyingthese principles to varying degrees. This study wasdesigned to learn more about the nature ofdemand and the linkages between the demand-responsiveness of rural water supply projects andthe sustainability of the infrastructure provided.MethodologyThe study was carried out over a one-year periodby field-based teams in six countries: Benin,Bolivia, Honduras, Indonesia, Pakistan andUganda. Each field team was composed of localresearchers—either from nongovernmentalorganizations (NGOs) or universities—using acommon methodology. The projects included inthe study were chosen based on the high degreeof demand-responsiveness they employed, andthe interest of the project director (and in somecases the World Bank task manager) toparticipate in the study. At least one