CRS Madagascar

CARE Madagascar, Caritas Madagascar, Voahary Salama

Water Program APS 674-08-0050-APS

Technical Application

REVISED May 26, 2009

RANO HamPivoatra (Water forProgress)

Rural Access to New Opportunities for Health and Prosperity

RANO HP

Table of Contents

I.Table of Contents

II.Executive Summary

III.Technical Approach

A.Strategic Objectives, Strategies, Outputs, and Activities

B.Implementation Schedule with Milestones

IV.Staffing and Management Plan

V.Organizational Capability

Annexes:

Performance Monitoring Plan

Curriculum Vitae for proposed key personnel

B.1 David Donovan, Chief of Party

B.2 Jonathan Annis, Technical Coordinator

Relevant Past Performance Information

C.1 CRS Madagascar

C.2 CARE Madagascar

C.3 Voahary Salama

C.4 Caritas Madagascar

C.5 BushProof, SARL

C.6 Sandandrano, SARL

Organizational Capability

D.1 CRS Madagascar

D.2 CARE Madagascar

D.3 Voahary Salama

D.4 Caritas Madagascar

D.5 BushProof, SARL

D.6 Sandandrano, SARL

Project Targeting Matrix

Project Intervention Maps

Implementation schedule including milestones

Initial Environmental Examination

RANO HP Organizational Chart

Letters of Commitment/Support

Executive Summary

Catholic Relief Services (CRS) as the lead agency, CARE Madagascar, Caritas Madagascar, Voahary Salama, and two Malagasy private sector partners, BushProof SARL, and Sandandrano SARL, are pleased to submit this application in response to the USAID Madagascar Water Program 674-08-00550 APS. The consortium proposes an innovative approach to improving broad access to reliable and economically sustainable water and sanitation services for health, security and prosperity in Madagascar, entitled Rural Access to New Opportunities for Health and Prosperity or RANO HamPivoatra (Water for Progress). CRS and the consortium members request $7,981,046from USAID, and will contribute a total cost share of $1,995,016, including $1,080,692 (including NICRA) in cash, and $867,697in contributions from existing CARE projects, US$ 46,626 in kind contribution from Caritas, private sector investment in water and sanitation infrastructure, and individual community contributions. The RANO HP cost share is shown as a fixed figure for illustrative purposes only. The proposed cost share is 25% of the Total Activity Cost.The project will begin August 1, 2009 and end in December 31, 2013.

The RANO HP project will increase sustainable access to improved water supply, increase sanitation coverage rates, and improve household hygiene practices in 43 communes in twelvedistricts along the east coast and in southern Madagascar. Target areas overlap with existing USAID-funded SanteNet II (24 communes) and ERD (12 communes) programs, as well as the pending SALOHI MYAP (16 communes). In addition, 19 targeted communes are considered buffer zones to protected natural areas. Together, the targeted communes represent areas with some of the lowest water and sanitation coverage rates in Madagascar.

The project will build on the community based work of local and international NGOs,as well as the private sector partners’ pioneering work in developing affordable, market-based water supply servicesin Madagascar. The project will construct over 680 water points using a range of appropriate technologies that will provide sustainable access to improved water supplies to approximately 340,996 people over the five-year life of the project. Household behavior change triggered during the project will result in up to9,000 households properly using hygienic sanitation facilities constructed with individual investment.

At the end of the project,43 communes will have benefitted from the project. 26 of them – categorized as core communes will have developed and implemented activities outlined in Commune Water and Sanitation Business Plans, developed Public-Private Partnerships, andsustainably increased public water and sanitation services.In the 17 communes where the project will work to contribute towards the goal of 57% coverage, CRS and its partners will rehabilitate existing water infrastructure that is no longer functioning properly and work to ensure proper community-based management and maintenance. The project will work to attain a minimum of 57% coverage having access to a safe supply in rural areas for the 26 core communes, whereas in the 17 contribution communes, we will contribute towards the achievement of the goal of 57%. These investments will be maintained primarily by entrepreneurs who are providing sustainable services while applying the principals outlined in the Water Code, and making potable water affordable to the most vulnerable. New water and sanitation microfinance loan products will be accessible to suppliers and consumers in rural areas. Up to 200 women’s associations and other groups will increasesavings and resilience through participating in Village Savings and Loan activities. Women will have increased solidarity, more opportunities for income generation and will be spending less time fetching water.

Target populations will also be healthier as a result of constructing and using hygienic latrines, and mothers adopting hand washing practices at critical moments. Water, Sanitation and Hygiene (WASH) friendly schools will benefit from the water supply and sanitation infrastructure provided by the project, resulting in increased attendance. Rural health centers will be models for WASH behavior in the community. Communities will be using water for multiple uses and productive livelihoods. Communities will recognize that sustainable access to improved water supply is a gateway to health and prosperity.

Technical Approach

Problem Statement

Madagascar is rich in fresh water resources yet over 60% of the islands 19.7 million inhabitants do not have access to an improved water supply, including more than 70% of the most vulnerable living in rural areas. The limited access to clean water, high rates of open defecation, improper handling of children’s stools and poor hygiene behavior has resulted in water borne diseases such as diarrhea being the second-leading cause of child mortality in Madagascar. A 2002 United Nations Children’s Fund (UNICEF)supported study found that 3.5 million school days were lost per year due to diarrhea and other preventable water related illnesses.[1] The national DIORANO[2]-WASH Strategy paper published in 2003 estimated that the total burden of water and sanitation related illness on the Malagasy economy was over 300 times greater than the amount of public money being invested in the sector.[3] Further compounding the problem, poor natural resource management has resulted in the loss of over 80% of the islands natural forest cover, which has contributed to the pollution and seasonal variability of surface water and aquifers both surface and subsurface, and for delineating watersheds contributing to existing Gravity Flow Water Supply Systems (GFWSS) with surface water intakes, or sources that could be used for future water supply systems that have the potential to be exploited for human consumption.

In response to this grave situation, the Government of Madagascar (GOM) has placed the goal of increasing sustainable access to improved water supply and sanitation coverage to 65% throughout the country by 2012 among the highest priorities within the national plan for rapid development, the Madagascar Action Plan (MAP). In rural areas, the goal is 57%.The creation of the Ministry of Water (MOW) in June 2008 has proven the government’s tangible, long-term commitment to reforming and investing in the water and sanitation sector.

Nevertheless, reaching the ambitions objectives outlined in the MAP is by no means assured. The MOW has little to no decentralized presence in the 22 Regions, and there remains a significant disconnect between the national policies adopted in Antananarivo and the application of the laws in rural areas. Mayors often have an incomplete understanding of their responsibilities within the Water Code,[4] yet they are the critical link in ensuring the sustainable operation of water supply infrastructure at the village level. Years of government and NGO sponsored infrastructure projects without establishing durable management structures capable of maintaining the systems has resulted in hundreds of abandoned, often unmapped water points scattered throughout the countryside. Enforcingpayment for water services is now a top priority of the MOW. This will be achieved by implementing strategies which foster creative public private partnerships that enable communes to assume their leadership role through the support of private sector investments.

Increasing sanitation coverage was also largely neglected over the past 20 years. While national coverage rates are much higher than those for water supply, large swaths of the country on the east coast and south remain under 10% coverage due to local taboos and lack of low-cost and culturally acceptable technologies for areas with sandy soil or high water tables. The cholera outbreak that swept the county in 2000 is proof that the uninhibited spread of fecal matter into the environment remains a primary mode of disease transmission in rural Madagascar.

Project Description

The RANO HamPivoatra (RANO HP)project will be implemented by a consortium led by Catholic Relief Services Madagascar (CRS) as the primary recipient, and includes CARE Madagascar, Caritas Madagascar, and Voahary Salama (VS), a local umbrella of Non governmental organizations (NGOs). CRS will provide sub grants to CARE and Caritas Madagascar. CARE will provide sub grants to VS, as well as directly implement Village Savings and Loans (VSL) activities. CRS and CARE staff will manage the Program Coordination Unit (PCU) that will support implementing partners and coordinate all project activities. The consortium will collaborate with two private sector Malagasy partners, BushProof SARL and Sandandrano SARL, which are currently operating successful water and sanitation businesses in Madagascar. The consortium will also engage the University of South Florida (USF) in the design and implementation of an Operations Research (OR) agenda.

The goal of the RANO HP project is: Rural communities in Madagascar have broad access to reliable and economically sustainable water and sanitation services for health, security, and prosperity. This will be achieved through an innovative approach that is aligned with the MAP, the priorities of the Ministry of Water, and Commune Development Plans. The project will also create synergies with ongoing USAID Health, Population, and Nutrition (HPN), Title II, and Environment Rural Development (ENV/RD) programs. The project will be implemented over a 53-months period beginning on August 1, 2009 and ending onDecember 31, 2013. The consortium is requesting $7,996,619from USAID, and will contribute a total cost share of $1,995,016, including $1,080,692(including NICRA) in cash, and $867,697in contributions from existing CARE projects, US$ 46,626 in kind contribution from Caritas, private sector investment in water and sanitation infrastructure, and community in-kind contributions. The total project budget will be $9,991,635. Please note that the RANO HP cost share is shown as a fixed figure for illustrative purposes only. The proposed cost share is 25% of the Total Activity Cost.

Project Targeting Strategy

The RANO HPproject will target624,425 people or approximately125,000households in 43 communes in rural food insecure areas of southeast and southern Madagascar.Madagascar is one of the poorest in the world, with over 60% of its population of 19.7 million living off of less than one USD per day.[5] The project target zones are among the most vulnerable areas in the country, which include eastern coastal areas ravaged by cyclones and floods, and the drought stricken south. In order to helpmeet the MAP goals for rural water supply, the RANO HPproject will work to contribute towards the achievement of at least 57% water supply coverage in target communes. To ensure the lasting health impacts of improved water supply, the project will also improve sanitation and hygiene practices among80% percent of the population of each commune.

Target communes were chosen considering:1) creating synergies with the USAID funded Santénet2[6] program;2) creating synergies with theproposed CRS-led MYAP, which also includes CARE; 3) lack of water coverage; 4) synergies with the USAID funded ENV/RD; 5) communes that fall within buffer zones of protected natural forests; and 6) areas not targeted by UNICEF, the European Union (EU) and the African Development Bank (ADB) water and sanitation programs..

Table 1 below summarizes the targeting criteria for RANO HP target communes. Annexes E and Fincludethe Project Targeting Matrix and two commune intervention maps.

Table 1: Summary of targeting criteria for RANO HP target communes

Consortium members / Target Communes / Total population / population with access to water / No. target population / No. Santénet Communes / No. MYAP Proposed Communes / Other USAID ENV/RD / Buffer zone
CRS/MG & CARITAS/MG / 20 / 296,321 / 132,240 / 164,081 / 20 / 6 / 5 / 10
CARE/MG & Voahary Salama / 23 / 328,104 / 151,189 / 176,915 / 23 / 10 / 7 / 9
TOTAL / 43 / 624,425 / 283,429 / 340,996 / 43 / 16 / 12 / 19

All target communes in the RANO HP projectwill be among the 900 Santénet2communes. As implementers of Santénet2, CARE and CRS will ensure coordination, integration, and synergies between the two programs. Specific synergies will compliment theSanténet2Kaominina Mendrika[7]water and sanitation activities, including Participatory Hygiene and Sanitation Transformation (PHAST),Community Led Total Sanitation, (CLTS), and training communes in the legal framework of the water and sanitation sector. CRS and CARE will ensure that the RANO HP implementation schedule is harmonized with Santénet2. PHAST and CLTS will be funded only in communes where Santénet2 will not be funding these activities.[8]The project will implement activities in 16communes also targeted by the proposed Title II MYAP, thus providing many opportunities for integration in the areas of water and sanitation, Food for Assets (FFA), health, governance, and other productive livelihood and income generating activities. Synergies will also be created with USAID funded ENV/RD programs, such as C-CHANGE, Eco-Regional Alliance partners, and KOLOHARENA. UpcomingUNICEFand ADB funded water and sanitation projects may overlap with the RANO HP target zones. In these cases the project will coordinate with these partners to ensure that target communes do not overlap. The project communes will not overlap with existing EU funded water and sanitation projects.

Strategic Objectives, Strategies, Outputs, and Activities

The proposed goal, Strategic Objectives (SOs), strategies, outcomes, and activitiesare:

Intermediate Result 1.1: Communities, private sector partners, and communes are organized to manage their water and sanitation systems

Output 1.1.1Commune level water and sanitation business plans established

The RANO HP project will begin by working with decentralized MOWregional offices, communes, private sector partners, and communities to increase local knowledge and understanding of the legal framework of the water and sanitation sector, and to establish Commune Water and Sanitation Business Plans (CWSBP). These plans will be based on needs identified in the existing Commune Development Plans (CDP), results from additional assessments of existing water and sanitation infrastructure, WASH related behaviors, and gender and other socio-economic factors. Assessments will also include a supply and demand analysis for water and sanitation services. Geographical Information Systems technology will be used to map potential water sources. This will enable the commune to make informed decisions regarding the rational exploitation and management of their water resources from watershed to public distribution point.

The project will then assist communes in developing a financially viable CWSBP that will outline a strategy for increasing sustainable access to water and sanitation facilities and services in target fokontany.[9] The CWSBPs will include estimates of resources neededto attain the short and long-term water and sanitation objectives for the commune. Types of resources may include: human and financial capital; management systems; RANO HP project contributions; and other donor funds. A plan for developing Public Private Partnerships (PPP) will outline private sector investment, income generating opportunities, as well as plans to subsidize water for the most vulnerable populations. The CWSBPs will serve as the foundation for subsequent activities throughout the life of the project, and as a benchmark for measuring progress against two and five year objectives.

Activities:Conduct meetings with WASH stakeholders and local authorities in each commune; conduct Training of Trainers (TOTs) in water and environmental legal frameworks for IPs at the district level; train commune authorities in water and environmental legal frameworks where not covered by Santénet2; conduct participatory assessment of water points and water resources, and WASH behaviors; and review CDPs; support communes to draft CWSBP.

Intermediate Result 1.2: Increase private sector and household investment for water and sanitation products and services

Output 1.2.1: Financing mechanisms enabling access to credit for service providers and consumers established

The project will work with three to five local microfinance institutions (MFI), including OTIV and Fivoy, as well as the Bank of Africa, which have or are willing to create branch offices or provide outreach services in the target communes to develop a range of appropriate water and sanitation loan products. These products are likely to be medium term loans (e.g. 3-5 years), which are currently outside the normal portfolios for MFIs. As such, significant institutional strengthening for MFIs will be necessary to ensure successful application of this new approach. To achieve this objective, the consortium will conduct initial assessments of the participating MFIs to determine staff skills and capacities. Based on the findings, a dynamic one-week loan product development workshop will be conducted by CRS’ Senior Technical Advisor for Microfinance to establish the selection criteria, terms and conditions, and testing parameters for these new loan products.

Once developed, the MFIs will pilot the water and sanitation loans for a 12-15 month period in selected communities to determine how the products perform before expanding to other communes. CRS regional and headquarters microfinance staff will provide ongoing technical support and mentoring to the project throughout the life of the project. In addition to the loan products, specific “savings for a purpose” products will be developed for individual household investments in water and sanitation infrastructure. This will lower the overall risk profile of the clients, making the roll out of the proven loan products in years’ three to five much more attractive to the MFIs. Finally, the consortium will explore the possibility of developing a medium-term refinancing arrangement with an international microfinance lending institution, such as Triple Jump[10] that has just created a water and sanitation investment fund.