Finding an Effective Approach and Incentive to Increase Water Supply Access for B40
|Deadline||Friday, 16 August 2019|
Finding an Effective Approach and Incentive to Increase Water Supply Access for B40
Issue Date : July 30, 2019
Title: “Finding an Effective Approach and Incentive to Increase Water Supply Access for B40”
”Issuing Office & Email/Physical Address for Submission of Proposals:
Indonesia Urban Water, Sanitation and Hygiene (IUWASH Plus) Jakarta , Mayapada Tower 10th Floor, Jl. Jend. Sudirman Kav. 28, Jakarta 12920 ;
Email : IWPLProc_LSIC@dai.com
Deadline for Receipt of Proposals: August 16, 2019 (at the latest 17.00 p.m(WIB)
Soft copy to : IWPLProc_LSIC@dai.com
Point of Contact: IWPLProc_LSIC@dai.com
Anticipated Award Type: Firm Fixed Price Purchase Order
Basis for Award: An award will be made based on the Trade Off Method. The award will be issued to the responsible and reasonable offeror who provides the best value to DAI and its client using a combination of technical and cost/price factors.
The USAID Indonesia Urban Water, Sanitation and Hygiene, Penyehatan Lingkungan Untuk Semua (IUWASH PLUS) program is a five-and-a-half-year initiative designed to assist the Government of Indonesia (GOI) in increasing access to water supply and sanitation services as well as improving key hygiene behaviors among urban poor and vulnerable populations. USAID IUWASH PLUS works with governmental agencies, the private sector, NGOs, communities and others to achieve the following “high level” results:
1. An increase of 1,100,000 people in urban areas with access to improved water supply service quality, of which at least 500,000 are from the poorest 40% of the population (also referred to as the “Bottom 40%” or “B40”), vulnerable groups or Indonesia’s eastern provinces; and
2. An increase of 500,000 people in urban areas with access to safely managed sanitation.
To ensure that improvements in access to WASH services are sustained, USAID IUWASH PLUS is guided by a development hypothesis that focuses on strengthening service delivery systems, so they can more effectively reach the poorest and most vulnerable segments of the population. In order to achieve this at scale, the program undertakes activities through four interrelated components, including: 1) improving household WASH services; 2) strengthening city WASH institutional performance; 3) strengthening the WASH financing environment; and 4) advancing national WASH advocacy, coordination and communication. In support of these components, USAID IUWASH PLUS also implements a Local Sustainability and Innovation Component (LSIC) that is designed to stimulate WASH innovations that strengthen community, private sector and government WASH service provision.
B. Activity Summary
As the Main water service operator under LG, PDAM has the obligation to provide access to safe and sustainable drinking water services to all population within their service area, covering requirements agreed under Minimum Service Standards (SPM) of quantity, quality, continuity and affordability. This service includes access to poorer communities/B40. However, PDAM also has the obligation to provide reasonable profit (PAD) to their LG, which means they are only fully successful if they (a) provide sustainable water service to all population, (b) charge affordable tariff, (c) meet SPM requirements (d) reach Full Cost recovery and (e) provide PAD to LG.
So even though it is a the PDAMs’ obligation to service all people in Indonesia, the poor, or B40, are generally left behind regarding connection to piped water, resulting in a high burden for them to get water from alternative sources which are often contaminated, in limited amounts, and very expensive on a per cubic meter basis.
It has become clear that most PDAMs/ PEMDA are not really interested and have no financial incentive in servicing the poor, while they should actually prioritize connections to them to close the gap in services to the poor. Initiatives from Central Government, like Water Hibah, are not making a significant impact on increasing access to the B40, as many PDAM/PEMDA are reluctant to sign up. Even when they do use Water Hibah, the results from a recent IUWASH-PLUS B40 survey shows that majority of new connections cannot really be considered as verifiable B40 residents.
The reasons for this “reluctance” to connect B40 are often opaque and varied between PDAM/PEMDA. The following is a summary of the most common reasons:
Topic Summary main reasons
Understanding • Unclear mapping of numbers / locations of un-serviced B40 and their current water supply situation,
• Lack of understanding (or concern) of burden for B40 if not connected to piped water
Technical • Lack of sufficient quantity of raw water for whole PDAM, forcing PDAM to make choices.
• B40 areas often located far from existing piping network, connecting could result in (too) low water pressure.
• B40 areas (dense/slum) pose a perceived risk of higher NRW, illegal connections/consumption.
Financial • PDAM afraid of revenue loss (subsidized tariff) and/or connection fee by B40.
• B40 areas are invariably further from existing network, requiring relatively higher investment to connect B40.
• If PDAM must choose, the preference is to sell more water to higher income groups.
• Difficulties to get PEMDA/DPRD to agree to pre-finance model for Water Hibah.
Regulatory • Oftentimes it is not allowed by regulation to connect “informal settlements”, where majority of B40 reside.
• Regulations to arrange Water Hibah are often considered complicated.
• No incentive / regulation “forcing” PDAM to also connect B40 (by PEMDA, DPRD).
As IUWASH-PLUS is mandated (following High Level Result 1B) to support increased piped water access to B40, a detailed study is now needed to find out in more detail why specific PDAM/PEMDA are not connecting more B40 to piped water and how to increase this, especially
a) actual reasons for low B40 connections per location (following 4 topics above),
b) how these critical reasons might be resolved per location
c) what implementation tools are available to PDAMs (HIBAH, DAK, APBD, Credit, CSR, etc.)
d) which tools might be more suitable under certain conditions.
This SoW further describes the study, to be funded under the IUWASH-PLUS LSIC, including the objectives, main study questions, general approach, expected deliverables, timeframe and estimated budget. A separate, follow-on program, also funded under LSIC, will then use the recommendations from this study to implement concrete pilots in several PDAMs, which will lead to actual increased piped water connections for B40. The second SoW cannot be combined with the first one within one LSIC, because the details required for this SoW (number and locations of PDAMs, type of activities, estimated increased number of house connections, duration, etc.) can only be determined after the study is completed.
The main objectives of the proposed study on increasing Water Supply Access for B40 are to:
• Determine real reasons for reluctance by PDAM/ PEMDA to provide piped water access to B40 across all (20) locations supported by IUWASH-PLUS, except Eastern Indonesia.
• Produce comprehensive report, covering the 4 main topics (described above) and study questions (described below), with clear results and recommendations for follow-on work for all visited locations.
• Sharing results through Local and National workshops and obtain agreement with at least 10 locations (average 2 per Region) and if required National Government for follow-on action plan.
D. Proposed Activities
The study will be implemented over 5 months and cover 20 PDAMs, supported by IUWASH-PLUS.
The following is an initial, but not complete, list of Study Questions, to be used in the study:
Does PDAM know where B40 are located, how many are unserved and how they obtain water at this moment?
Does PDAM and PEMDA ever discuss access to B40, using PEMDA data on B40 / MBR locations?
Does PEMDA/DPRD encourage PDAM to pro-actively increase service to B40? If yes, how? If not, why not?
Are there local / national regulations encouraging / forcing PDAM to connect more B40?
Is PDAM already pro-actively increasing piped water access to poor? If yes, where/why? If no, why?
Is there general perception that increased access to B40 is bad for PDAM business / financial health? And if so, is this ever verified with calculations on actual effect of increasing B40 connections versus average tariff?
Are there (or can there be) also positive aspects to connecting poor for PDAM or only negative (as WIN-WIN)?
What tools does PDAM have to increase access and how do they compare to each other in terms of financing, regulations, pre-requirements, etc.? Consider for instance Water Hibah/DAK (PUPR), Hibah (PEMDA) credit/ cicilan (installment) programs with third party or PDAM, targeted donor or CSR support for individual or MM.
Task 1: Initial Data collection for study for 20 PDAMs (month 1-2)
• Collect secondary data from participating PDAM/PEMDA (including TKPKD) & National partners (GoI, donor, aggregate data from TNP2K, etc.)
• Conduct meetings at National level, with key players (GoI and non-GoI)
• Prepare and send questionnaire to all participating PDAM/PEMDA covering secondary data plus above study questions
Task 2: Detailed Data collection and initial data analysis for 20 PDAMs (month 2-3)
• With help of IUWASH-PLUS regional teams, push at least 80% of participating PDAMs / PEMDA to respond to questionnaire as quickly and accurately as possible
• Arrange and conduct, with help of IUWASH-PLUS regional teams, one workshop (one day each) in each region, to discuss same issues in more depth with participating locations
• Analyze results of questionnaires and workshops
Task 3: Detailed field discussions and finalizing results and report (month 3-5)
• Choose 10 locations for further in-depth meetings/FGD with PDAM/LG to verify initial result of local workshop/questionnaire + develop action plans for further follow-up (in separate LSIC)
• Analyze results in draft report,
• Conduct National Workshop to share draft final report.
• Incorporate and finalize all agreed comments and suggestions in final report.
E. Link with USAID IUWASH PLUS High Level Results and Outcomes
This activity will contribute to the following IUWASH PLUS outcomes:
HR1B Increased access to water supply services through improved PDAM and PEMDA performance from increased access water to MBR/B40.
C2a Increased scoring in PDAM Indices.
C4b Number of knowledge products developed
The output / deliverables of the study are:
• Analysis of data/information on B40 Water from around 80% of participating PDAMs
• 6 workshops (5 regional and 1 National) conducted and reported
• 10 follow-on meetings with PDAM/PEMDA conducted resulting in 10 Action plans
• Detailed final study report including overview of main reasons for reluctance to increase B40 water access, analysis of questionnaire, workshops, and recommendations for follow-on work
G. Estimated Budget
Funding for this program will be provided through the LSIC fund, with a budget estimate around IDR 800,000,000,- (approximately USD 57,883). The vendor needs to budget for all direct cost related to Task 1 – 3:
• Remuneration of the study team assigned to this program
• Travel, Accommodation, per diem for all field visits/meetings by expert staff
• Cost of meetings at National level (in general at partner or IUWASH-PLUS office)
• Cost of 5 regional workshops (each 25 pax) and 1 National workshop (around 40 pax)
• Cost of Additional FGD in 10 selected locations
• Reporting Cost and additional overhead cost, if any
The payment will be made through 4 (four) transactions after all required deliverables are submitted to USAID IUWASH PLUS and verified by technical team and client. Detailed schedule is as follows:
Report Description Estimated Timing Payment (in % of total budget)
1 Inception Report Detailed work plan with confirmed staffing, itinerary for fieldwork, list of secondary data, initial (national) meeting schedule, draft questionnaire End week 3 10%
2 Progress Report 1 Progress on secondary data collection, final questionnaire, national meetings, preparation for local workshops middle of
Month 2 35%
3 Progress Report 2 Draft result analysis questionnaire and local workshops, progress of in-depth meetings
Progress discussion at national level End
Month 3 35%
4 Final report Final results of all workshops, final results analysis questionnaire, recommendations, 10 actions plans End
Month 5 20%
TOTAL 5 Months 100%
H. Working Arrangements
The activity will be implemented under the responsibility of IUWASH PLUS National Coordinator for Water Supply (based in Jakarta), with additional support of 5 regional IUWASH-PLUS teams. Regular coordination meetings, including progress reporting, will be conducted between the vendor and IUWASH PLUS staffs/team, in IUWASH-PLUS office in Jakarta.
I. Required Qualifications and Experience
USAID IUWASH PLUS will seek a vendor to implement the above work, with following qualification:
• Have previous and proven experience in conducting studies, including data collection, data analysis, develop effective and strategic recommendations, as well as arranging and conducting workshops in various locations in Indonesia.
• Have qualified study team to conduct study, provide recommendations, develop actions plans and generate commitment to implement the action plan, consist of required key experts with minimum 8 years of experience, knowledgeable on water supply sector and PDAM will be an advantage. Plus, a supporting personnel that will help in doing the data analysis with minimum 5 years of experience.
• Proven ability to effectively manage workloads and meet deadlines, be self-disciplined, with good communication skills.
• Willingness to work in a responsible, flexible and collaborative manner.
J. Selection of Service Provider and Evaluation Criteria
The vendor will be selected based on the result of a tender submission. The candidate vendor will provide a proposal, which consists of a Technical Proposal (background of the program, Tasks to be conducted, methodology, schedule and CV’s of key personnel). The vendor will also submit a Cost Proposal under separate file which will be viewed only after selection on technical basis.
The proposal will be evaluated based on:
1. Qualification of proposed personnel : 40 %
2. Experience of company : 20 %
3. Methodology : 40 %
K. Proposed Mechanism
Proposed mechanism of the activity will be implemented through fixed price subcontract.
Available in Indonesia (Indonesian)