Context and justification Years of war in Angola have translated into extremely low social indicators, placing Angola amongst the countries with low human development, ranking 161st out of 177 countries (2006, HDI). With a GDP per capita of US $2,547 PPP in 2006 (129th out of 177 countries), and a HDI of 0.439, the country shows a paradoxical situation of rich economic potential and low human development. Improving access to safe-drinking water and sanitation is one of the greatest development challenges in Angola, as indicated by successive outbreaks of cholera, a typically water born disease, that since 2006 has claimed nearly 50,000 victims. To achieve MDG 7 in Angola by 2015, requires provision of safe water to 9 million people and appropriate sanitation to 7.7 million people nationwide. The Angolan government’s objective is to increase the proportion of people having access to safe-drinking water and sanitation from 57% in 2003 to 85% in 2016 in urban areas, and from 26% to 65% in rural areas. To that end, the government has implemented a large water infrastructure investment program, including for example the project “Agua de Luanda” (Sistema I, II and III) intended to cover 4 millions people residing in Luanda, reinforced by a vast institutional reform to support the provision of water supply and sanitation services. The government efforts on institutional matters include: - The promulgation of a new water law passed in 2002; - The establishment of a water sector strategy: Programa de Desenvolvimento do Sector das Águas; - The devolution of service provision responsibility to Provincial governments (províncias); - The creation of provincial water utilities operating under commercial regime. - The drafting of the regulatory framework for the water sector (due in 2006); - The devolution of some aspects of water provision responsibility to Municipal governments (municípios) in February 2007; Upcoming efforts include: the setting up of a Water Resource Management Institute, training of the staffs of water-management-relating institutions, and direct support to water supply and sanitation utilities in some provincial cities, with the support of the World Bank. Big challenges remain with regard to the provision of water and sanitation services in peri-urban and rural areas, where the poorest are living. In a province like Moxico, one with the highest number of returnees in the country, the challenges of developing water and sanitation schemes is complicated by the extreme vulnerability and poverty of the population. This joint UN project seeks to contribute to the objectives of the Estrategia de Combate a Pobreza (ECP), the Angola poverty eradication strategy. The interventions outlined in this document aim to support national priorities highlighted in the ECP regarding the water and sanitation sector, over the backdrop of the MDGs and the Millennium Declaration, especially goal 7, as well as goal 6 related to combat other disease (i.e. waterborne diseases like Cholera). Furthermore, this proposal aims especially to improve access to water and sanitation in areas with large groups of returnees and internally displaced populations (IDPs), like the Moxico province, where economic self-reliance among the population has to be facilitated in order to stabilize the population, and ensure lasting peace and effective economic recovery. There will be a special focus on women within the target groups. The UN project would focus on the enhancement of the governance of the water and sanitation sector. It addresses the challenge of designing an institutional and regulatory arrangement that is consistent with community-driven approach, to promote sustainable water and sanitation management scheme for the poor. This project will initially target 120,000 vulnerable peri-urban and rural people in Luanda (90,000) and Moxico (30,000) provinces, closing the MDG gap for water and sanitation by 3.4% and 3.3% respectively. While the initial target coverage will be limited, the project will produce a multiplier effect with possible far reaching implications through an expanded institution strengthening and capacity building process in additional municípios, then covering a total of 500,000 people. In line with their development assistance niche, participating UN Agencies in close collaboration with their development partners will support elements of this initiative to deliver on services that will lead to health benefits, and overall livelihood issues for the vulnerable. UNDP will in this respect address institution building mainly focusing on national and sub-national level institutions, whereas UNICEF will focus on community level institution strengthening and capacity building for their technical and environmental sustainability and IOM, ILO focusing on women economic empowerment, extension of financial services and enterprise development with special focus on capacitating community water committees, community-based organizations, local entrepreneurs and all other non-public entities operating in water-related sectors, to ensure the social and economic sustainability of the water and sanitation assets. Governance model for water and sanitation sector In poor neighbourhoods (rural and peri-urban), water is delivered in water points. Water points built and managed by local governments are not sustainable. They break down frequently due to lack of maintenance. In many cases, they do not correspond to users’ needs and preferences: inappropriate technology, high installation and maintenance costs leading to unaffordable tariffs for the vast majority, lack of technical skills and spare parts inhibiting local level repair efforts are some of the multitude of challenges to community-based management of water and sanitation assets. Sustainable management of water point requires a deeper involvement of and ownership by the communities themselves. The governance model for peri-urban and rural water and sanitation sector, as proposed in this project, would take the form of a network of autonomous water point management units , with the local government at the ‘centre’, regulating and monitoring. This is the ideal picture. In fact, local community groups are more or less involved in the management of water supply and sanitation, and the degree of autonomy may vary according to the capacity of the community to sustain the management of their water points. This model of governance seeks to promote for the rural water and sanitation sector, the following features: - A rights-based approach to the provision of safe-drinking water and sanitation - The government’s role as facilitator/regulator, and last resort provider - Increased role of communities in the planning and managing of their own social infrastructures - The private sector (including NGOs) as service provider, governed by competitive and effective regulatory framework Community level The model of governance advocated in this project is based on the demand-responsive approach. The full feature of this model consists in autonomous management of water points by the communities themselves. This model is different from the one practised at the moment, based on a top-down approach, through which water points are brought to communities and managed by ‘external’ stakeholders (local government or utility). The basic feature of the model advocated in this project is based on the demand-responsive approach where communities in villages define their needs in terms of facility – protected well, boreholes or pump – and set the range of price they are willing to pay. This provides the primary basis for the involvement of communities in decisions regarding the provision of water in rural areas; such participation is ensured through community water committees (in which women are not only adequately represented, but will be groomed to play leadership roles). The proposed role of communities will transcend the traditional status of simple users or contributors in terms of labor (digging wells, or guarding water points to prevent abuse) and, in some cases, in terms of cash to cover operation and maintenance of water installations, to assume the more complex activities of informed choices on potential water supply systems, selecting contractors and managing the procurement of water scheme items (purchase of pumps, well equipments and materials), and handling financial operations for the installation of new systems, rehabilitation and extension of existing schemes. Ideally, the communities would assume all of these responsibilities and function autonomously in the management of water, with water committees setting tariffs and agreeing with users on payment mechanisms, and water consumer associations being watchdogs over the water utilities not only to ensure good management practices and sustainable access to services, but also guarantee the interest of the most vulnerable in the community so that they also have access. ‘Intermediary’ level The communities may need assistance from NGOs or community-based organizations to provide community development support (educate the members on the importance of using safe water, assist in bringing the members of the community to a consensus on the needs, provide skills on proper financial management and accountability, etc) and package of technical skills (digging, installation of equipment, basic operation and maintenance techniques, etc), as well as to serve as a link between communities and other actors (the municipalities/local governments and providers). In the governance model proposed in this project, the private sector’s role can take different forms, depending on the degree of involvement of the community. The business sector’s interventions may range from small entrepreneurs providing equipment and materials, and installation of water points for communities to utilities supplying water services and collection of tariffs, based on technology and cost preferences defined by the community. Municipal level The water governance model put forward in this project also suggests that the responsibility of local governments (municipalities) is essentially to create the enabling environment for all actors to function harmoniously in providing sustainable services to partner communities. This will involve outlining a local water and sanitation sector development strategy, as part of the municipal development plan, providing resources to communities for implementation of their plans, providing monitoring oversight and regulating the market equal and adequate access, especially by defining incentives for and promoting competition among private actors and NGOs, and establishing a strong regulatory framework which includes independent monitoring, participation and penalties for non-compliance. The possibility of setting up an independent regulatory agency (municipal water authority) with primary responsibility for quality assurance will be considered. This unit will define monitor compliance with regards norms for water quality, well design , type of hand-pumps; competitive framework for suppliers; with incentives for small to medium scale enterprises in the provision of water supply equipment (including water pumps) and installation of water schemes. Strategy of intervention The general strategy of intervention in this project is to concentrate the effort on capacity development and advocacy. The idea is to reinforce the capacity of concerned stakeholders and institutions to implement the rural water and sanitation governance model suggested. Advocacy activities will be implemented, in parallel, to seek ownership of water management scheme by stakeholders. Specific strategies include: - The focus on full sustainability which corresponds to fully autonomous governance of water, which in turn consists of a network of fully autonomous community water management units monitored by municipios; - The promotion of accountability at the different levels, as well as the institutional responsibilities, which implies that monitoring of results will be a key activity in the project.