METHODOLOGICAL GUIDELINES FOR CONDUCTING SECTORAL ANALYSIS IN WATER SUPPLY AND SANITATION

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1 Pan American Health Organization World Health Organization Basic Sanitation Program Division of Health and Environment METHODOLOGICAL GUIDELINES FOR CONDUCTING SECTORAL ANALYSIS IN WATER SUPPLY AND SANITATION August 1999

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3 ACRONYMS AID Agency for International Development IDB Inter-American Development Bank IBRD International Bank for Reconstruction and Development NGO Non-governmental Organization PAHO Pan American Health Organization PIAS Regional Plan of Investment in the Environment and Health GDP Gross Domestic Product LB Live births

4 CONTENTS Introduction Objectives and Scope of Sectoral Analysis Objectives Scope Definition of the Sector Users of the Sectoral Analysis Impact of the Sectoral Study General Guidelines Consultants for the Sectoral Analysis Stages in Conducting the Sectoral Analysis Components of the Assessment General Characteristics of the Country Institutional Structure of the Sector Legal Framework Policies, Plans, and Programs Physical and Technical Aspects Infrastructure Finances Sustainability Community Management - Community Participation Private Sector Participation Health and Environment Vulnerability to Natural and Other Disasters Use of Indicators in the Sectoral Analysis Demographic Indicators Health Indicators Socioeconomic Indicators Water Supply and Sanitation...37

5 5. Protocol for the Sector General Characteristics of the Country Institutional Structure Legal Framework Policies, Plans, and Programs Physical and Technical Aspects Infrastructure Finances Community Participation - Community Management Private Sector Participation Health and Environment Emergencies and Disasters Vulnerability Protocol for Service Providers Institutional Structure Legal Framework Policies, Plans, and Programs Physical and Technical Characteristics Infrastructure Finances Community Participation - Community Management Private Sector Participation Health and Environment Emergencies and Disasters Vulnerability Definition and Characterization of the Critical Aspects of the Sector Recommended Strategies, Policies, and Actions Priority Project Profiles Priority Investment for the Sector Guidelines for Strengthening the Development of the Sector Preliminary Plan of Action iv

6 13. Reports Annex Annex Annex v

7 INTRODUCTION The Latin American and the Caribbean region is currently facing an enormous deficit in infrastructure, health, water supply, guaranteed water quality, and sanitation services. This is reflected both in the percentage of the served population and in the quality of the services provided. These deficiencies affect the urban and periurban, as well as the rural population. Regional efforts and achievements in recent years have been significant in light of the crisis that these countries have experienced. This assessment is a faithful expression of the current situation. Compounding to the challenge is the reemergence of cholera associated with these deficits in the quality and availability of services which demands sensitivity and responsibility on the part of the entire population and the Governments of the Region. Recognizing this reality, and responding to the mandate of the First Ibero- American Summit of Heads of State and Government, PAHO formulated the Regional Plan for Investment in the Environment and Health (PIAS) in 1992 to accelerate the development of the environment and health sectors in the countries of the Region. In so doing, it fulfills Resolution XVII of the XXXV Directing Council of the Pan American Health Organization (PAHO). In 1993, acting in the context of PIAS, PAHO, the Inter-American Development Bank (IDB), the International Bank for Reconstruction and Development (IBRD), and the Agency for International Development (AID), jointly participated in the development of methodological guidelines for sectoral analysis in water supply and sanitation to serve as the conceptual framework for conducting these studies. As a result of that joint effort, the document Methodological Guidelines for Sectoral Analysis in Water Supply and Sanitation was published. The experience to date with the studies conducted to date strengthens the conviction of those involved. The response for drinking water and sanitation on the part of both the countries and the international technical and financial cooperation system will undoubtedly be the improvement and expansion of services, and the increase and optimization of investments and of necessary available resources. The basic element needed by the Region for appropriate decision-making and proper implementation of actions needed by the Region is in-depth and comprehensive knowledge on the sectoral situation in each country - knowledge that must be achieved by each and every party participating in its development.

8 2 DRINKING WATER AND SANITATION The most useful tool for acquiring this knowledge is a sectoral analysis, since it provides precise data on visible and invisible demands and deficits in the coverage and quality of service. Furthermore, it brings out the strengths and weaknesses of sectoral institutions, as well as the operational constraints, all of which later make it possible to identify the level of necessary financial and non-financial resources (public or private) for the appropriate development of the sector. This publication is an updated version of the document Methodological Guidelines for Sectoral Analysis in Water Supply and Sanitation, Technical Report Series No. 1. The changes introduced are based on the experiences gained in 17 sectoral analysis studies for the drinking water and sanitation sector, which have been conducted over the past five years. The revision of these guidelines is being made in order to allow for a more systematic approach to the sectoral analysis process which covers the respective phases: preliminary studies, analysis, and monitoring. 1. OBJECTIVES AND SCOPE OF SECTORAL ANALYSIS The experience with the sectoral analyses conducted during the period demonstrates that there was an evolution in approaches to deal with the sectoral issue. There is a new order of ideas on sectoral policies, how to promote the development, and when necessary, the reform and modernization of the sector. Consequently, and in keeping with those trends, the objectives and scope of sectoral analysis studies have been revised and expanded, as described below. 1.1 Objectives There are numerous and varied reasons for preparing an assessment for the drinking water and sanitation sector. The agency responsible for a country s water supply and sanitation may wish to have a complete sectoral analysis as part of the strategic plan for the sector; the national planning agency or ministry may attempt to conduct a general sectoral assessment in order to determine how the sector fits into the national development plan; a ministry or institution responsible for expanding the drinking water supply and wastewater collection and treatment, such as the Ministry of Public Works, may need a sectoral assessment in order to support a new program of loans to be negotiated with an external credit agency. In addition, a multilateral credit agency or bilateral technical cooperation agency may require the preparation of a sectoral analysis; a credit institution may require a comprehensive sectoral assessment as part of the formulation of a multi-year credit program for the country. Furthermore, a bilateral cooperation institution may wish to provide technical assistance to one or more agencies to strengthen the capacity for formulating and implementing projects, and for programs to meet their national water supply and sanitation goals.

9 METHODOLOGICAL GUIDELINES 3 The sectoral analysis, in addition to providing detailed information on conditions within the sector, identifies critical elements and proposes policies, strategies, actions, and guidelines for the reform and modernization of the sector. Moreover, it enables the promotion and strengthening of the drinking water and sanitation sector concept by promoting the coordination and exchange of information between national and international agencies and professionals. By allowing a number of national institutions and representative segments of society to participate, sectoral analyses promote the concept that drinking water and sanitation are indispensable for sustainable development. Use of these methodological guidelines will make it possible to analyze different areas of the drinking water and sanitation sector within a given country, state or province. It also allows for the use of approaches, criteria, and presentations that, while specific in individual content, are similar. This, in turn, will enable and facilitate the exchange of data and information among the national or foreign institutions involved in the study. 1.2 Scope Sectoral analyses for the drinking water and sanitation sector can be national in scope or limited to the regional, state, or provincial level. Use of the present guidelines is specifically applicable to sectoral studies for the drinking water and sanitation sector. However, there has been a need to prepare methodological guidelines for use in sectoral studies in other areas of environmental protection and control, and PIAS has developed guidelines for sectoral analysis of solid waste. The present guidelines are orientated to provide sectoral studies at the country, state, or provincial level and are adaptable as necessary, to suit each individual case. The availability of reliable information on the sector can vary from one country to another, which can determine the study s breadth according to the situation in the country. The sectoral analysis will address knowledge on, and assess all of the sectoral components. Included in this is its management and performance, primarily with regard to the following aspects: Legal and institutional framework. Quantity, quality, continuity, coverage, and accessibility of the services. Factors that affect policies and strategies, as well as the performance and functions of institutions. Physical infrastructure and management of the services provided by sector institutions.

10 4 DRINKING WATER AND SANITATION Economic and financial aspects. Investments and available necessary resources. Institutional development and available human resources. Social conditions of the communities served; their relationship and prospects with regard to the sector. Environmental and health aspects. In addition to assessing the situation, the sectoral analysis will propose measures to strengthen the sector s systematic and integral development process, with specific guidelines for implementing the process and subsequent monitoring. 1.3 Definition of the Sector The drinking water and sanitation sector is made up of the group of existing public and private institutions and resources in the country, state or province concerned with services supplying drinking water and sanitation in urban, periurban and rural areas (concentrated or scattered). It is important to take into account that a large number of institutions and companies that play an important sectoral role gravitate to this conventional sector, as is the case of sanitation engineering and civil construction companies, specialized service providers, manufacturers of materials and equipment, etc. The sector has the potential for broad changes in some of its basic characteristics, due to the growing interest of private enterprise in activities related to water supply and sanitation. 1.4 Users of the Sectoral Analysis The main users of both the sectoral analyses and the methodological guidelines will be the countries and international cooperation agencies Countries (Federal and State/Provincial Government) The primary users of these methodological guidelines will be the countries, since they will be the source and the end-point of the studies. The sectoral analyses developed on the basis of these guidelines will serve as an instrument for determining and formulating policies, plans, programs, strategies, and actions consistent with investment capacity; they will also make it possible to determine the actions aimed at improving or optimizing the level of water and sanitation services in the country, state, or province that is the subject of the analysis International Cooperation Agencies Multilateral and bilateral agencies and NGOs are always interested in the historical performance and future prospects of the sector in the country being analyzed, both in terms of investment capacity and the potential in the areas of management and

11 METHODOLOGICAL GUIDELINES 5 performance, in order to make fair and appropriate decisions with regard to the granting of technical or financial cooperation or assistance in situations where a need has been identified or where it has been requested by the country. The methodological guidelines will be used as a working tool, primarily by national and international members of the work team that will conduct the sectoral study. 1.5 Impact of the Sectoral Study A well-planned and well-executed sectoral study will allow for a broad and up-to-date assessment of the water supply and sanitation system in the country, state, or province. These guidelines propose a methodology for conducting the study, involving a wide-ranging dialogue between all interested parties in the sector and an exchange of ideas and experiences between national and foreign personnel. The dialogue between the consultants (national and foreign) and the national staff could be highly productive, making it possible to jointly identify critical aspects and propose policies, strategies, and actions for strengthening the sector. It has been noted that the process of sectoral analysis tends to stimulate interagency and inter-sectoral contact and coordination. Sectoral analysis will become a valuable tool for decision-making, providing a sound basis and better criteria for making judgements on the adoption of certain administrative and technical measures, including proposals for institutional change. It is also a valuable tool for negotiations, both with international cooperation institutions and private enterprise, aimed at increasing investment in drinking water and sanitation and identifying possible areas for private sector participation.

12 6 DRINKING WATER AND SANITATION 2. GENERAL GUIDELINES The methodology proposed in these guidelines encompasses the general strategy for organizing the sectoral study and the procedures for carrying it out. This chapter describes how the activities should be coordinated in order to conduct the study, identifying the functions that its participants should perform and the stages involved, indicating the chapters that provide the specific steps needed to fulfill the methodological requirements of each stage. The team of consultants that participates in the process will be operating under a previously determined framework, defined in the context of the rationale that led the national or international technical/financial cooperation agencies to carry out the analysis and, consequently, to form the team. 2.1 Consultants for the Sectoral Analysis Preparation of the Basic Diagnostic A consultant (or consulting firm) will be responsible for the task of collecting data and information on the country, the sector and the institutions. This job requires a person with experience in the area of water supply and sanitation, with a broad awareness of the sectoral problem in the countries of the Region. In principle, these tasks should be carried out within a period of four weeks, but this can vary according to the size of the country and whether or not there are previous sectoral studies that can be used as a reference point for the work to be carried out Preparation of the Sectoral Analysis The size and composition of the team of consultants can vary with the range of subjects involved, the depth with which they are covered, and the specific aims of the institution coordinating the analysis. A small team and a brief period of field work may be appropriate when the process consists of updating a sectoral analysis conducted only a few years previously; on the other hand, a larger team, with more extensive field work, will be required in the case of an exhaustive sectoral analysis for which there are no previous sectoral studies that can be used as a basis for the work to be carried out. In any case, the work team should include people with knowledge and experience in the following areas:

13 METHODOLOGICAL GUIDELINES 7 a) Sectoral and institutional: Sectoral planning process; Organization of water supply and sanitation services; Drinking water and sanitation institutions, and their operations; Critical aspects of sectoral policies common to the parties involved in the sector; Management, institutional development and human resource development; b) Infrastructure, technology, engineering Water supply and sanitation services infrastructure; Technology related to water supply and sanitation services; Construction, operation, and maintenance of the systems; Abilities, qualifications, and training in engineering and technical organization; Vulnerability of infrastructure to natural and other disasters. c) Economy, finance and resource mobilization Economic-financial planning process; Capital investments for financing the expansion and maintenance of drinking water and sanitation services infrastructure; Distribution and efficiency of the use of available resources within the sector; aspects related to cost recovery, formulation of rates, and training in public finance; Strategies for resource mobilization. d) Community participation and health education Functions of community agents in the design, operation, maintenance, and alternative financing of water supply and sanitation systems; Non-governmental organization functions; Education in health and hygiene; Community development; Education of human resources in the communities to ensure the viability of community participation. e) Legislation Public, health, and environmental legislation; Juridical/legal aspects of public services; Analysis of legal frameworks for environmental protection and for water resource management;

14 8 DRINKING WATER AND SANITATION Analysis of legislative and political processes for environment and health; Standards related to water supply and sanitation. Depending on the needs of the national or foreign institutions coordinating the work, as well as on the domestic availability of experienced personnel and technicians with appropriate knowledge, the team could be made up of national consultants or foreign sectoral experts. An attempt will be made to balance the abilities of national and foreign team members. The joint participation of experts will ensure that the country s perspectives are properly represented, while at the same time providing the added benefit of international sectoral experiences. The national members of the team could be hired consultants or staff members of one or more institutions of the drinking water and sanitation sector, and will be appointed to work on a full-time basis with the institution that coordinates the analysis, for the period of time that the work requires. Experience with previous studies demonstrates the need for the national professionals collaborating in the sectoral study, as well as the coordinator and the consultants, to participate in the process on an integral, ongoing, and full-time basis. The amount of time required for the work of the team designated to carry out the sectoral analysis will depend on the geographic expanse of the country, the complexity of the sector, and the availability of previous studies. An average of five weeks is estimated for carrying out the analysis and preparing the corresponding report. In some cases, an additional period of work will be required by one of the members of the team for preparation of the final version of the sectoral analysis report. 2.2 Stages in Conducting the Sectoral Analysis The sectoral analysis can appropriately be conducted in three stages: a) preliminary b) sectoral analysis implementation c) consolidation and monitoring of sectoral analysis Each stage will include several specific activities, organized in order to complete the process within the preestablished time period. It should be noted that one of the main objectives of the preliminary stage (that of identification and negotiation) will be to formalize the collaboration of all parties concerned with the sectoral analysis. Furthermore, their contributions to the development of the process, including the necessary logistical support during the period of preparation of the study (offices, transportation, administrative support, travel within the country, etc.), will also be essential.

15 METHODOLOGICAL GUIDELINES 9 It is difficult to predict the duration of the preliminary stage, because considerable time may be required for negotiations among the interested parties. Experience with previous sectoral studies indicates that the entire process should be carefully planned, avoiding, insofar as possible, pressures from one or more of the parties to conduct the study in a hurried fashion. Sectoral analysis is a difficult and complex process that requires well-orchestrated planning and implementation. Principle Stages and Activities in the Preparation of the Sectoral Study Preliminary Stage a) Definition of the objectives and aims of the study and analysis. Negotiation of mechanisms and procedures to formalize the implementation and monitoring of the study. b) Establishment of the mechanisms for cooperation and coordination with and among the agencies and institutions participating in the sectoral study and identification of the study s national coordinating agency. Definition of logistical support aspects. c) Preparation of the preliminary work plan. Approval by the interested parties. d) Preparation of the terms of reference for national and foreign consultants and for institutional focal points and counterparts; e) Selection and hiring of national and foreign consultants. Identification of counterparts and focal points Implementation of the Analysis Phase 1 Diagnostic a) Identification of the specific characteristics and country sector background. b) Collection of data and basic information. c) Preparation of a basic diagnostic document. d) Collaboration in the preparations for conducting the sectoral analysis.

16 10 DRINKING WATER AND SANITATION Phase 2 - Sectoral Analysis a) Formation of the group of national and foreign consultants. Coordinating activities with the counterparts and focal points. Installation and definition of operational and logistical aspects. b) Organization and development of the workshop on sectoral analysis planning. Discussion and approval of the work plan. c) Review and discussion of the available information and of the basic diagnostic. d) Conducting interviews at companies and institutions of the sector and other sectors related to environment, health and development. e) Discussion of findings. Formulation of conclusions and recommendations. Definition and characterization of the critical aspects of the sector. f) Preparation of sectoral policy and strategy proposals, and priority project profiles. g) Preparation by consultants, of reports in their respective subject areas. h) Consolidation and structuring of sectoral policy and strategy proposals, and priority project profiles at the sectoral level. i) Preparation of suggestions for an investment plan. j) Preparation of guidelines to accelerate the development of the sector. k) Plan of Action Proposal for the implementation of the proposed reforms. l) Consolidation of findings, conclusions, and recommendations; preparation of the Preliminary Report. m) Advance dissemination of basic aspects for the Preliminary Report to institutions interested in the endeavor. n) Conduct a Technical Seminar for the presentation; discussion of the conclusions and recommendations of the sectoral study. o) Incorporating the Seminar s recommendations and making adjustments to the Preliminary Report in order to obtain an advance version of the Sectoral Analysis Report. p) Distribution of the advance version of the Sectoral Analysis Report to the participating institutions for comment.

17 METHODOLOGICAL GUIDELINES Consolidation and Monitoring Stage a) Layout, editing, and publication of the Sectoral Analysis Report. b) Distribution of the Report to national institutions and international cooperation agencies. c) Holding a National Meeting for dissemination and awareness building. d) Development of actions necessary for ensuring the monitoring and continuity of the sectoral development process. e) Organizing periodic activities to monitor implementation of the process. f) Reevaluation of the process and proposal adjustments, new strategies, and actions Preliminary Stage Activities/Actions a) Definition of the objectives and aims of the study and analysis. Negotiation of the mechanisms and procedures to formalize the implementation and monitoring of the Study. The national institutions and/or technical/financial cooperation agencies interested in the sectoral analysis will have established a rationale for conducting the analysis. It is important to clarify with the participating institutions the background and specific reasons for the study, as well as the expected results. The results expected from the endeavor need not be limited to the conclusions and recommendations contained in the sectoral report, but should also encompass the short-, medium- and long-term effects that the analytical process, in all of its stages, could have on the country. Consequently, it should be established from the start that the process does not end with the submission of the Sectoral Analysis Report, but rather that the sectoral analysis serve as a basic reference point for promoting broad changes in the drinking water and sanitation sector. The objectives, aims, and scope of the study should be discussed extensively, to enabling the definition of mechanisms and procedures for formalizing the implementation and monitoring of the study at the national and international levels.

18 12 DRINKING WATER AND SANITATION b) Establishment of the mechanisms for cooperation and coordination with and among the agencies and institutions of the participating country. Identification of the study s national coordinating agency. Definition of logistical support aspects. The establishment of efficient mechanisms for cooperation and coordination with and among the agencies and participating institutions is an indispensable condition for the success of the endeavor. These aspects of coordination should be widely discussed and agreed upon before the study begins. It should be borne in mind that conducting the sectoral analysis study of the water and sanitation sector calls for joint efforts, interviews and contacts, not only with the sector s institutions, but also with institutions and people from the planning, health, environmental management, public works, economy and finance, and social development sectors. In addition, non-governmental organizations should be included, such as the national chapter of AIDIS, and other relevant professionals in the sector. The national coordinating agency will have responsibility for making the arrangements to guarantee the operational and logistical support necessary for the study. In addition, it will collaborate with PAHO to determine the method for selecting and hiring national consultants and to identify counterparts and focal points. If appropriate, a steering committee could be formed to oversee the sectoral analysis, with an eye towards ensuring greater institutional participation in the process. Such a committee, made up of high-level representatives in the national coordinating institution and other national groups or institutions participating in the study, could be primarily responsible for the review and discussion of the conclusions and recommendations of the work team. To ensure that the committee s make-up is not limited to government agency representatives, it would be appropriate to consider the inclusion of representatives from an organized community group and from an NGO concerned with drinking water and sanitation. The national coordinating institution, or the Steering Committee, will appoint a representative the national coordinator to work closely with the consultant who prepares the basic diagnostic and who works with the sectoral analysis team. The appointed representative, working on a full-time basis during the study s implementation stage, will help arrange appointments, provide logistical support, advise the members of the team on any sensitive issues or matters of protocol, and represent the national coordinating institution and/or the Steering Committee in normal daily activities. In addition, she will participate in the discussions and decisions of the consultants. In the diagnostic phase, it will act as a counterpart to the consultant carrying out the preparatory work and, subsequently, as a counterpart to the coordinator of the team of consultants, unless a different procedure is established.

19 METHODOLOGICAL GUIDELINES 13 c) Preliminary Work Plan preparation - Approval by the Interested Parties. Once the basis for the analysis has been agreed upon taking into account its aims, scope, extent and, consequently, the issues to be addressed by the study, a preliminary work plan will be prepared for conducting the sectoral study. That plan will include a brief description of the country s situation, justification of the sectoral analysis, specific objectives of the study, expected results, a strategy for conducting the sectoral analysis, participating institutions, selected issues, stages and activities to be implemented, criteria for the preparation of the basic diagnostic and final sectoral analysis report, and suggestions for implementation and monitoring. This work plan should reflect aspects already discussed and agreed upon with the national authorities. d) Terms of Reference Preparation for the National and Foreign Consultants and for Institutional Focal Points and Counterparts. On the basis of the foregoing, the terms of reference will be prepared for the national and foreign consultants who will participate in the diagnostic and sectoral analysis phases. The anticipated contributions from institutional focal points and counterparts will also be clearly defined. The terms of reference for the national and foreign consultants will follow the criteria observed by the agencies responsible for hiring the consultants and will be prepared in consultation with the national coordinating agency. To the extent possible, a tentative list of national and foreign consultants to be considered for participation in the study will be prepared. In order to advance the process and facilitate the work of the consultant who will be responsible for the first or basic diagnostic phase of the sectoral study, detailed information on the type of basic reference documents and data needed for the study should be provided to the national coordinating institution, so that the process of locating and collecting this information can begin prior to the arrival of the consultant. e) Selection and Hiring of the National and Foreign Consultants. Identification of Counterparts and Focal Points. Once the terms of reference have been drafted and approved, and the dates for carrying out the planned work confirmed, the selection and hiring of national and foreign consultants will proceed. The group of consultants will be made up of national and foreign professionals and experts in the selected areas of study who also have generic knowledge of and familiarity with the issues of the sector. The criteria used for the recruitment and hiring of consultants will be those of the national or international agencies that finance the hiring. It will be important to ensure the full-time participation of the national consultants.

20 14 DRINKING WATER AND SANITATION The national coordinating agency will be responsible for identifying professionals or technicians to act as counterparts to the consultants. The group of counterparts will be made up of national officials duly accredited by the participating institutions to participate in the process of developing the sectoral analysis. Even if they do not participate on a full-time basis, it is hoped that they will be able to give priority to their collaboration on activities carried out during the endeavor. The national coordinating agency will also be responsible for making the relevant contracts with other institutions of the same sector as well as with institutions of other sectors in order to define collaboration with institutional focal points Implementation of the Study--Activities/Actions Phase 1 - Diagnostic a) Identification of the Specific Characteristics and Background of the Country and the Sector The sectoral analysis is developed within the context agreed upon by the interested parties. In addition, the group of consultants carrying out the sectoral study will give priority to a data analysis enabling the development of schemes for solving critical sectoral issues. However, it is essential to begin the study by identifying the characteristics and background of the country and the sector. This activity will be carried out by the consultant hired especially for that task. From the start and in collaboration with the national coordinator and other national officials, he (she) should study the basic information and documentation available and develop the strategy needed to obtain any necessary supplementary information. This will include identifying other sources of information and data and preparing an agenda for contacts with agencies and individuals possessing documents, statistical data, and knowledge of specific conditions relevant to the sectoral study in its basic diagnostic and sectoral analysis phases. The purpose of visits by the consultant to institutions and individuals will be to obtain documents and specific information, exchange ideas on the situation in the sector or of interest to the sector, and report on the sectoral study process, its objectives and modus operandi. Chapters 5 and 6 of this publication offer protocols to guide the data collection process and provide suggestions on conducting interviews. b) Collection of Data and Basic Information Collection One of the important tasks of the consultant, to be carried out in collaboration with the national coordinator and the personnel of the agencies participating in the process will be to compile and classify documents, data and information on the water supply and sanitation situation in the country. Furthermore, the responsibilities of other sectors directly linked with drinking water and sanitation will also be considered, such as

21 METHODOLOGICAL GUIDELINES 15 planning, health, environmental protection, and water resource management. Any previous studies and diagnoses available will be of particular use for the basic diagnostic and sectoral analysis phases. c) Basic Diagnostic Document Preparation Based on a study and analysis of the available information, a document providing a basic diagnostic will be prepared whose purpose will be to characterize the current situation of the sector. It will be a sort of snapshot of the sector, covering specific intrasectoral aspects, as well as extra-sectoral aspects important to water supply and sanitation. This document will be an important asset in conducting the sectoral analysis. In Annex 1, a format for the basic diagnostic document is suggested. The diagnostic will seek to describe in precise and true terms, the current situation of the drinking water and sanitation sector in the country including descriptive aspects, statistical data, indicators or other relevant information. Moreover, the sector s strengths and weaknesses will be revealed. The diagnostic should include not only an identification and description of the key critical aspects, but also the important positive aspects of the sector considered to be important for the study, in order to lay the foundation for strategies and plans to accelerate sectoral development. One of the important elements in the diagnostic will be to identify significant changes of importance to the water and sanitation sector that are, or could be, occurring in the country. Of particular importance are changes such as those involving the decentralization of responsibility to the local levels of government, the fostering of private sector participation in the provision of services, the specification and harmonization of functions and responsibilities of the public and private sectors, and the redefinition of the extent to which government is responsible for the provision of subsidized services. It is not appropriate in this diagnostic phase to recommend changes and modifications in the sector, since these recommendations will be submitted as part of the subsequent sectoral analysis. The draft of the basic diagnostic document, prepared by the consultant, should be discussed with the national coordinator. If time permits, the advisability of facilitating a meeting with representatives of institutions within and outside the sector could be considered. This would provide an opportunity to discuss the findings and obtain comments and suggestions which will be duly considered in the revised version of the document. Moreover, it will be reproduced, in a timely manner, for use by the consultants involved in the subsequent phase of the sectoral study. It is important to take into account that, in principle, the basic diagnostic document will be a working document. Circulation will be restricted, prepared mainly for use as a basic document for the subsequent work of the consultants in charge of the

22 16 DRINKING WATER AND SANITATION sectoral analysis. This will serve as an important preparatory work. However, but the document containing a broader and more complete study of the situation will be the final sectoral analysis report which after being duly discussed, revised, and published, will be widely disseminated. The collected material, documents and reports, among others, will remain with the national coordinator or with another person designated by the national coordinating institution. The documentation will delivered in a timely manner to the international coordinator at the start of the second phase of the sectoral study. d) Collaboration during the Preparations for Conducting the Sectoral Analysis It is considered pertinent for the consultant in charge of the diagnostic to collaborate in the organizational and preparatory activities for the subsequent sectoral analysis phase. This primarily involves confirming and, where appropriate, collaborating and advising on arrangements for logistical support (transportation, offices, secretarial support, computers, etc.), hiring national consultants, the participation of institutional focal points and counterparts, making contacts with national agencies for interviews, among other things. Phase 2 - Sectoral Analysis a) Group Formation of National and International Consultants - Identification of Counterparts and Focal Points, Installation and Definition of Operational and Logistical Aspects. Once the international consultants arrive in the country on the date established, the process will begin. First will be the formation of the group of national and international consultants, who will be formally introduced to the authorities of the sector. This will be followed by meetings in which the coordinators will provide information on aspects related to the installation of the group, the modus operandi of the endeavor, and operational and logistical aspects. The matter of contacts and work will be discussed with institutional focal points and counterparts. The consultants will also be provided with information on the initial workshop and its objectives. b) Workshop Development on Sectoral Analysis Planning and Organization. Work Plan Discussion and Approval. The national institution coordinating the analysis and/or the Steering Committee will officially sponsor an initial workshop for the work team and for representatives of institutions participating directly or indirectly in the development of the sector. It is important to attempt to identify and invite individuals capable of duly representing the consumers or beneficiary perspectives.

23 METHODOLOGICAL GUIDELINES 17 The purpose of the workshop is to inform the participants about the aims of the sectoral analysis, the methodology that the team will use, and the anticipated product or results of the work. Ideally, the participating national institutions will outline the results they hope will have been achieved upon completion of the team s work. All the while, the institutions are not always willing to discuss those results at that time. Specifically, the workshop should: discuss and analyze methodological guidelines for conducting the sectoral analysis; review, analyze, and propose changes to the sectoral analysis work plan; review and analyze the terms of reference of each subject area for the sectoral analysis; prepare, for each issue, the plan and timetable of activities to be carried out during the sectoral analysis process; discuss the need for on-site visits; discuss how to supplement the sectoral information presented in the basic diagnostic; discuss how to structure the final sectoral analysis report; discuss how to incorporate the results of the basic diagnostic in the final report; discuss how to achieve the maximum participation of the counterpart group in the work produced by the consultants. The work team can take advantage of the workshop to confirm the names of the people and institutions with which it should be in contact while conducting the analysis. Much of the subsequent cooperation of institutions and groups that participate in the sector can be attributed to the effects of the workshop. The workshop also is an appropriate time to identify three or four agencies providing direct services (public institutions or independent entities related to water supply and sanitation services) that in opinion of workshop participants are representative of the sector in general. The selected agencies should represent both urban and rural areas. After the workshop, the coordinators and consultants should complete the review of operational and logistical aspects of the work plan and make any adjustments considered necessary in the schedule of activities. c) Review and Discussion of the Available Information and the Basic Diagnostic The coordinators should organize the work plan in a way that sets aside a certain period of time at the beginning of the process for the consultants to examine the available documentation and thoroughly review the basic diagnostic. This will give the consultants, (primarily the foreign ones) the opportunity to familiarize themselves with

24 18 DRINKING WATER AND SANITATION the sectoral situation. It will also permit them to locate, in the diagnostic, the part dealing with the subject matter for which they will need to provide additional information. During Coordinator meetings, the consultants will outline their conclusions on the material studied. In addition they will propose actions for the use of available and, (as necessary) supplementary material, in accordance with the objectives of the sectoral study. d) Conducting Interviews at Companies and Institutions in the Sector and other Sectors Linked with the Environment, Health, and Development. Throughout the endeavor, consultants responsible for the sectoral analysis should undertake a series of visits to institutions and individuals. The rationale is to report on the sectoral study, obtain specific information, exchange ideas and opinions, become familiar with facilities and services, and make contact with users, among other things. The consultants should be prepared to offer a brief outline to those with whom they meet, clearly explaining the objectives of the sectoral analysis study, the functions they perform as part of the team of consultants, and the purpose of the visit. Chapters 5 and 6 of this publication provide protocols to guide the data collection and interview process, as well as the analysis of the information obtained. To this end, two types of instructions are presented, often in the form of a question: (a) instructions for the collection of data or information, and (b) instructions to guide the analysis the report should contain. a) Data and information collection. These instructions, when presented in the form of questions, will rarely be formulated in a literal way. Rather, it will be necessary to paraphrase the questions (as appropriate) at the time of the interview. In practice, the consultant should review the components of the protocol most applicable to the interviews to be conducted. Later these should be introduced, explaining the general purpose of the sectoral analysis. Since a question will often encourage the interviewee to provide information or ideas that answer several of the questions in the protocols, the consultant should regard the protocols as guidelines only. Furthermore, he (she) should not feel that each and every question needs to be designed for data and information collection. With regard to the work team, the expansiveness of the protocols could suggest that there is quantitative, voluminous, and exact data that can be obtained easily for all elements of the analysis. However, experience indicates that this is often not the case. The team should consider the absence of information is often indicative of fundamental sectoral weaknesses. For example, the lack of information in a specific water supply agency concerning the age and condition of the various conduits and pipes in the distribution system, often means that the agency does not have a well-planned program for maintenance and rehabilitation. This, in turn, often means that it will be necessary to

25 METHODOLOGICAL GUIDELINES 19 undertake rehabilitation programs requiring major capital investments. In the absence of information, the members of the work team should make use of their expertise and judgment with regard to the extent and importance of a problem that cannot easily be quantified or measured by the sector. When gaps and weaknesses in the sectoral information are discovered, the analytical process itself should motivate the sectoral institutions to improve the database. On the other hand, the purpose of the protocols is to guide collection and analysis along certain channels. Therefore, the discovery that many desirable types of information are not available or are not completely accurate should not be cause for frustration. b) Analytical questions/issues. Although these questions are not specifically conceived for interview situations, they provide a guideline for the work team in terms of the type of analysis that the sectoral analysis report should contain. Before conducting any interview, and beyond reviewing questions on data and information collection likely to be used in the interview, the team member should also review questions on analytical aspects and on the identification of problems related to the former set of questions. This review will remind the interviewer of the fundamental analytical problem considered in that specific part of the protocol, since these questions are related both to the sector and to the institutions exercising functions within the sector. It should be noted that there is often a similarity between a question related to data collection and an analytical question. For example, following is an analytical question that the work team should address in its report: Do the companies or local entities that provide water and sanitation services have sufficient authority to set rates or to employ other forms of cost recovery to recover the total cost of the operations. Also, if it is within their purview, are they able to take steps to facilitate capital investments in the future? As an analytical question, it would not be posed in an interview. However, it would indicate to the team that the sectoral analysis report should address the subject. Nevertheless, it is useful to know the views and perceptions of the interviewees on the subject which the analytical question addresses. Therefore, the protocol for questions on the data and information collection contains a very similar question that, in this case, is designed to obtain information on how different interviewees perceive the delegation of authority. In this way, the work team can form a conclusion on the delegation of authority based on an analysis of the responses obtained. The following example, related to the issue of delegation of authority, illustrates this: a situation could occur in which the officials of centralized institutions or agencies believe that entities providing the services have sufficient authority, whereas the officials of such entities believe that they do not. The team should evaluate this difference of opinion and analyze its potential impact on the sectoral performance. Thus, the protocols for data and information collection enable the work team to collect specific objective information and perceptual knowledge.

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