Building an Institutional Framework (WP)

An institutional framework is the precondition for the successful implementation of many other sanitation and water management interventions. An institutional framework for sanitation and water management consists of a range of different organisations that are in place (or need to be in place) to develop and manage water resources and the delivery of water and sanitation services at different levels of society (GWP 2008). Implementing an institutional framework is an important process for preparing the ground for sustainable sanitation and water management.

A lack of a sound institutional framework is the root cause of many failures in service delivery — and a major cause of failed water and sanitation provision. Such institutional weakness often results from the lack of a clear institutional “home” for planning and management, together with limited capacity within institutions to coordinate and manage initiatives. The all-too-common outcome is declining services leading to poor cost recovery and ultimately failed investments that do not meet either current or future demand (e.g. water pricing) (SCOTT et al. 2003).

The capacity to provide services effectively and efficiently is critical for the long-term sustainability of service provision, not only in the field of sustainable sanitation and water management, but in general. Most of the constraints to accelerated delivery of service are due to capacity problems at provincial and municipality levels. Appropriate management models are required to ensure that sanitation service delivery is sustained beyond the implementation of infrastructure projects (WRC 2003).

(Adapted from GWP 2008)

A sound institutional framework for sustainable sanitation and water management on the local level needs a lot of organisations and actors to be in place, such as:

• Service providers range from government departments and municipalities, public corporations, and private sector companies to community-based organisations, and farmers' groups.
• Regulatory and enforcement bodies have a crucial role in establishing and ensuring the effective application of tools for sustainable sanitation and water management.
• The private sector plays an important role in financing sustainable sanitation and water management. Commercial banks and other financial institutions can finance both public and private sector service providers.
• Local authorities can play an important role in overseeing the implementation of activities in sanitation and water management, both within their boundaries and within the local and regional watersheds. They act as regulators and as service providers and have a role in raising finance.
• Civil Society Institutions (CSIs), Non-Governmental Organisations (NGOs) and Community-Based Organisations (CBOs) can play an important role in developing and communicating sanitation and water management policies. Also, they can advocate on behalf of nature and environmental protection, develop and test new models and tools for sanitation and water management, increase awareness of the need for sustainable sanitation and water management and mobilise local communities to get involved.

The most important thing about the actors of an institutional framework is that they need to be co-operative, and have clear definitions of roles and responsibilities. Therefore the organisations and actors need to work transparently and in dialogue with each other. It is possible and sometimes very helpful to build partnerships on the basis of basic policies accepted by all parties.

An institutional framework must be stable, transparent and based on the rule of law, respecting fundamental human needs and ecosystems conservation, and promoting local empowerment and appropriate cost recovery approaches (DWAF 2003). For the new to-be-developed (local) institutional framework, it is advisable to build on and strengthen the existing structure rather than starting from the scratch (IEES 2006). Therefore, promotion of substantial institutional reform may be appropriate in many cases and could include providing support to a variety of initiatives in the SSWM sector, such as:

• Bundling/unbundling of functions, organisational restructuring: The distribution and disposition of functions, activities, processes, roles and responsibilities within an organisation needs to be faced for efficient sanitation and water management (DFID 1998). Also, roles and responsibilities between different spheres of government, community organisations, and the private sector need to be clearly defined, established, recognised and the necessary support needs to be provided. Avoid fragmented and/or overlapping mandates between different organisations and stakeholders (IEES 2006). Wherever possible and practical, the roles of regulation and operation should be clearly separated and preferably fulfilled by separate institutions (DWAF 2003). See also bundling and unbundling of functions.
• Strengthening enforcement bodies: As laws, rules, structures and responsibilities as well as partnership agreements need to be achieved, there must be a sound body monitoring and enforcing them. See also strengthening enforcement bodies.
• Decentralisation will bring government closer to rural communities and is a positive factor for better services and the use of local capacity. However, a phased transition is needed to address several issues (IEES 2006). See also decentralisation.
• Improving cost recovery is crucial to generate the resources for maintaining and improving services, to meet both existing and future demand (DFID 1998).
• Building Public Private Partnerships (PPPs):  The government may benefit from the expertise of the private sector in PPPs for SSWM, such as:preparing guidelines, technical assistance, planning, design and contract supervision, construction by large and small contractors, preparation of communications materials, training and capacity building, materials supplies, financing, monitoring (DFID 1998). See also public private partnerships.
• Privatising parts of the water and/or sanitation sector: Introducing private sector incentives and management skills may help to overcome service provision problems and the private sector can act as catalyst for change. See also privatisation.
• Nationalising parts of the water and/or sanitation sector: If there are problems with private service providers, it might help to transfer some responsibilities to the (local) government to make the sector work more efficient and less expensive. See also nationalisation.
• Enhancing participation and involvement of civil society at all levels in consultations, planning, decision-making and operation of sanitation and water management, in research and in other related activities (DWAF 2003). Building an institutional framework is a process that will take its time. Most of the advantages are taking place in the long-term, so in the short-term the process might seem to cost money and efforts for no effect. Motivate the public in forcing the targets, for example through the media. See also awareness raising tools (see PPT). 
• Human resources development (HRD) and management development that supports improved capability in all these aspects will be needed (DFID 1998). See also developing human resources.