Dear all

I am happy to release the synthesis document of the discussion. Please see the attachment.

Warm regards,

Nitya

Dear all,

I would like to thank all of you for taking the time to read and respond to this discussion. I am preparing the synthesis document and will share if on the Forum once it is ready. In the meantime, if you would like to post additional comments, please do so and I will try to incorporate them into the document.

Warm regards
Nitya

Dear Nitya,

Thank you for the follow up question. While the Cambodia Water Association BSC model cannot necessarily be easily contextualised and adapted in India, I am sure there is enough scope to contextualise supply chain strengthening through existing SME-based models and by involving universities as well. These are the two other BSC models in my earlier post. Activities that have been undertaken by these BSCs and the support activities that have been provided by the project to these BSCs to foster collaborate growth are easily replicable.

To elucidate, such university-based BSCs in Cambodia offer tailored business development and business planning trainings to WASH and agriculture SMEs in three provinces, in addition to offering on-site support through field mentorship and internship programmes for near-graduates. Thus far, the two university-based BSCs namely the University of Battambang (UBB), Battambang and the Build Bright University (BBU) in Siem Reap have offered several such customised services. Such as, BSC-UBB has conducted trainings on operation management and coaching on marketing management for WASH and agriculture SMEs. Such coaching has been specifically offered on selecting marketing strategies, understanding difference between customers’ wants and needs; and determinants affecting customers’ decision. Furthermore, BSC-BBU has conducted trainings on business planning and coaching on operational management for SMEs . These have been aimed at building SMEs’ capacity on production strategies in order to improve production capacity, asset management, and inventory management.

The sanitation enterprise-based BSCs have been assisting local SMEs with preparing business plans, sales and marketing techniques, complying with government regulations, and connecting to credit options and providing advisory services on product diversification and bundling. To take advantage of pooled procurement, one of the BSC has procured an environmentally friendly brick-making machine that has helped BSC members to diversify their products and save money. These BSCs have also further expanded their scope of business to provisioning of water filters through the on-going coaching on bundling of WASH products and services provided by the project.

And, as part of the sustainability efforts, the project continues to provide training and on-going coaching to further develop the capacity of the five BSCs to deliver services that support WASH and agriculture SMEs to grow and diversify their businesses.

Regards,
Sunetra Lala
WASH Sector Leader
SNV Netherlands Development Organisation, Cambodia

Thank you Sunetra. Can you or somebody else on the Forum explain how this can be contextualised for India

Brilliant analysis, Marijn. Thanks for this.
Lucas

Dear All,

I would like to submit the following with regards to innovation in the WASH sector in Cambodia, particularly aimed at strengthening the supply chain at local levels.

While many Cambodian SMEs provide nutrition, agriculture, and WASH products and services necessary for rural Cambodian consumers to improve and sustain nutritional status of pregnant women and children under 2, these SMEs are not operating to their full potential. To address the growth needs of nutrition, agriculture and WASH SMEs in project-supported areas, SNV under the NOURISH project (NOURISH takes a multi-sectorial approach integrating health/nutrition, WASH and agriculture) has developed a Business Service Center (BSC) concept that provides a layer of capacity development and business support for SMEs through one or more entities. NOURISH consulted with a variety of potential partners and stakeholders to help define potential roles, functions and responsibilities of BSCs. Several models were identified and have been introduced thus far, to identify the most viable models for further development and rollout.

Purpose of Business Service Centers:
A Business Service Center (BSC) is a business entity to stimulate and sustain the growth of selected small and medium enterprises (SME) in Pursat, Battambang and Siem Reap to meet the demand for WASH, agriculture and nutrition products and services. BSCs are intended to provide services to Cambodian SMEs to help increase their revenues while making just-in-time impact in the lives of “first 1,000 days” families with nutrition, agriculture, and WASH products and services.

Business Service Centers Functions and Services:
BSCs help SMEs to increase sales and grow revenues. They do this in a variety of standard and innovative ways, including, but not limited to:
• Building better understanding of the market potential and pricing strategy
• Aligning with government and development priorities and opportunities; helping SMEs liaise with Government regulations
• Improving marketing and brand development capacities
• Connecting SMEs with financial institutions on credit options
• Diversifying product lines and bundling where appropriate
• Developing quality standards and oversight mechanisms
• Networking and linking key stakeholders via mobile & virtual platforms
• Providing other business capacity strengthening, i.e., training on business development, business plan, technical support, leadership, etc.
• Organizing tradeshows

BSC Models
The NOURISH project has identified different BSC models that have been introduced thus far:
i) Expanding Small-sized Businesses Model (ESB): The Expanding Small-sized Businesses (ESB) model aims to build on the work (and value) of successful small-sized businesses (in WASH and/or agriculture) that are already aligned with SMEs targeted by the NOURISH project. The model has built-in incentives, e.g. by bundling their own products and services with other SMEs products and services, BSC-ESB can grow their own businesses by increasing SMEs’ sales. The challenge with the ESB model is these BSCs will tend to be sector specific and may not be interested in cross-sectoral support, e.g. an agriculture BSC may not be interested in supporting WASH SMEs and vice versa. NOURISH has identified two successful sanitation SME in Siem Reap and Pursat to use for this model.

ii) Association Model: The Association model aims to improve the capacity and reach of existing associations (e.g. provincial Chambers of Commerce, FASMEC , etc.) to provide a sector-independent BSC that delivers business development services to SMEs. The challenge for the Associations model will be to ensure the BSC provides enough value to SMEs so that SMEs will pay for the BSC services. NOURISH has identified Cambodian Water Association for this model.

iii) University-based Model: University-based BSCs model aims to offer tailored business learning sessions at local universities to WASH and agriculture SMEs in the three provinces, in addition to offering an on-site support through field mentorship by an experienced faculty members and internship programmes for near-graduates. Such models have been set up at the University of Battambang and Build Bright University connecting to existing MBA programs in Siem Reap and Battambang.

NOURISH’s role:
NOURISH plays a facilitative role in BSC operations, seeking to learn lessons on effective implementation in each model. NOURISH’s tasks include:
• Defining BSC concept and approaches
• Identifying and/or contracting BSCs
• Contributing to the development/approval of the plans of action for each BSC to accomplish specific milestones and targets
• Organizing Kick-off Workshop to activate five BSCs
• Coordinating with BSCs to contribute to the implementation of the voucher initiative in project supported geographical areas
• Developing monitoring framework for BSCs to include: Monthly progress checks; Baseline, mid-term, and endline sales data of targeted SMEs; Post-pilot audits of BSCs relevant to BSC activity operations
• Funding assistance for BSCs, to include: Facilitating links with financial institutions; Grant and contract seeking assistance
• Assist Business-to-Government (B2G) and Business-to-Business (B2B) relations building for BSCs
• Integrating BSC activities with targeted demand creation activities conducted through NOURISH project at the community level (e.g. CLTS triggering for improved sanitation, Community Dialogues, first 1,000 days village fairs, etc.)

Regards,
Sunetra Lala
WASH Sector Leader
SNV Cambodia

Dear all,
I know I have posted a lot of what I am about to write earlier, but I think it can contribute so I will repeat myself.

It seems that the discussion is predominantly about the very complicated problem of the lack of toilet ownership and use in India; the sanitation component of WASH.

When we look potential private sector involvement in the sanitation sector, I think it is crucial to realize that there are at least 2 or 3 distinctly different markets. These markets are very different from each other; therefore, I think, that lumping them as one “sanitation market” in discussions is counterproductive. In an earlier white paper published on this forum we (Dorthee and I) distinguished the following markets:

1) Toilet interfaces and stand alone solutions for rural households. These are the interfaces the household uses, either an “outhouse” type toilet or a toilet bowl in a bathroom. (We called those “front end services” in the paper).
2) Treatment and final disposal. This is a market for sewage and FSM treatment and safe, final disposal of effluents and by products. (We called these “back-end services”)
3) Depending on the situation, there could be a market for collection and conveyance. (Emptying services and FSM transport trucks).

Probably, a more complete analysis would split the first point into at least 2-3 different sub-markets.

Each market has a different set of customers and providers, responding to different incentives. For example, the first market will mainly be one between households and providers of toilets. The second one involves local governments and either utilities or private companies. Finally, the third one will be between house owners and providers of emptying services. (Note that the government is involved in all markets to set rules.)

A full analysis here of all markets goes too far, and would not do justice to the complexities of a vast country such as India. However, I hope that future discussions can benefit from starting off with looking at which market we are really discussing. With regard to this discussion, innovations needed in different markets will be vastly different.

Also, let’s not get too carried away with the idea that technical innovation will somehow make this problem easy to solve. It is mainly going to be a lot of hard work. In my view, this is a generational project.If India manages to get close to 100% sanitation coverage (including safe treatment and disposal) by 2035, it would already be an incredible achievement.

Regards
Marijn

There a so called degree of innovation in WASH and the inventor's resolve to test his prototype. When I am challenge to do innovation in WASH, then I do it either there is fund or none. There are many innovation that dont even need funding which are just dedicated to a specific need. As an inventor, when i developed this simple innovation, I feel there is no need to promote it as it is just simple. I just need somebody to tell me to do simple things and I do it without much fanfare. Its different when I developed big innovation that could clean up or treat a community sewage system, then that is where I promote it. Just like the my bread and butter now, which are my wastewater and sewerage equipment, you can visit my FB page Floijess Watertech Inc. One simple innovation that I have done that I done promote is the multi user urinal. I make it for rotary club and I fund it myself and we donated it to the community. attach is a picture of the urinal with us using it

Our impressions on the notings on Theme 2 & 3 are as below :

1. I feel that the business models are not commercially viable because each initiative do not pay back to communities in way of revenues or gains. No R O I ..

Indirect gains by way of sustainsbily confidence levels being up graded is also to be clubbed with this.

2. Agreeing that for repaying SBM subsidy of toilets, RLBs Rural Local Bodies should innovate to diversify their revenue model by layering varied revenue streams Successful spaces where Toilet complexes have sustained. place them in say categories For 6mths to 1 year For more than 2 years..

Caretakers ought to be given freedom to innovate and utilise the spaces for community good.. eg By having : ATM. Communication Centre. SubPost Office. Police Chowki. Chldrn PlaySchool. Daycare. Readng Rm others

For areas where toilets are difficult to be made for varied reasons.. Pl go one step towards making dedicated spaces for community for doing Controlled Open Defecation at those spaces only..

At both these spaces - have it done in open but with some security lighting. privacy duly administered etc. Have them in 2 spaces each working for 3-4 weeks.. ie monthly alternated and the earlier one is maintained while the second one is in use.

And human-sludge( nght soil) is co composted with cow dung .farm litter. bio mass etc.. This manure is a resource for use in farms.. Periodical lab tests on qlty / purity done ..

May be community feeling the +ves will switch to use Toilet complexes which can be made in those areas, in next phase.

More freedom is given to urban - For ULB approach to find and work with innovators. One needs to develop viable engagement models etc.

Most of the innovations in WASH do not become successful.. Why ..

What is in it for ULB / RLB Officials to gain from No rewards. No promotion.No increments in pay etc.

Quoting from an experience - INNOVATION : A WWTplant (ex Nallah Drain flow ) was done on its bank for 20 kl per day flow in 2002 for @ 2.5 L INR.. All funds from Residents, only a nod existed from MCD at NCR.

On noting the benefits- so many.. a bit more funds was raised and the nod became more firm in next years

In 2018 ( 16:yrs hence ) the WWT plant has sustained with an out flow of recycled / re use water @ 60 to 80 kl per day.

It is used for irrgtng parks 20 Nos +, spaces, lawns 8 to 10 acres= 30000 to 40000 sqm of greens.trees.etc. of urban greens all the year round.

Revolving around this initiative, more greens and apt green-scaping were added at the effluent colony.

Also, as stated above, it is critical for innovations to have business models that are E- Envrnmntly friendly. F- commercially viable, S- socially rewarding, G- aptly governed as well as inclusive for it to align with priorities and commitments of both ULBs & RLBs.

Also at every stage at the initial period and periodically reviewal & addressal is to be done.

Awareness, participation and ownership, responsibility of the initiative should be present in communities at all times.

O&M practices meaning operation and maintainance to be taken care regularly. If it is not done then community will get no benefit , this will make the community do the efforts. Then they start to gain with bith direct and in direct benefits.. Even the area's property rates too depend on this factor. Ie more greens the qulty of living is bettered etc.

The impressions expressed is for doing good in communities etc..

With well wishes.

Prof Ajit Seshadri Vels University. Chennai .

Hi, I feel it's the other way round.. It's clear and uncomplicated, to the point communication, devoid of any jargon that will help!

Being associated with the wash sector for long, I've been seeing this as is such a big menace, that we dont put our minds on doing something about.

Our quest to wander on with too much idealism is what dosent do us any good!
If we can just get to the point in not so many words....

Dear friends,

This is a reminder that the India Chapter of SuSanA, that is hosted by the India Sanitation Coalition, is running the thematic discussion on Innovations in WASH. We invite you to comment on the discussion. The second topic opened last week and we are still seeking your comment on the second topic : I would like to seek your views on whether the availability of CSR funding attract innovations to work with the ULBs or is it the other way around where the existence of clear and defined engagements of innovators with ULBs attracts CSR funding?

Please visit forum.susana.org/161-sanitation-as-a-bus...ter?setGT=0&start=12, login and post your comment. If you want to reply to this post on the forum, simply send your contribution to This email address is being protected from spambots. You need JavaScript enabled to view it.<This email address is being protected from spambots. You need JavaScript enabled to view it.>

Regards, Nitya Jacob, Coordinator

Dear all,

I feel the key problem that WASH innovators face is towards building business models that are not only commercially viable but also inclusive. Most of the revenue models are dependent on user fees or where the customer is also the consumer which limits financial viability considering there is a large segment of the users with limited “ability to pay” which is further compounded by problem around “willingness to pay”. Another factor is this sector has provided services for free, or given subsidies, that makes building a business case that much harder. Take the SBM subsidy of toilets for instance.

Private enterprises should innovate to diversify their revenue model by layering varied revenue streams; however, barriers exist beyond the firm’s business model. These include a limitation on demand/market data and insights, high cost and inefficient last mile distribution, low population density in case of rural areas, limited availability of low-cost capital, ULB approach, and procurement challenges to find and work with innovators and develop viable engagement models etc.

Most of the innovations in WASH at the moment are early stage and there is a limitation on how they can participate in ULBs procurement process. Either the innovations are not proven at a large scale to be attractive to an ULB or they do not have the history, both financially as well as in implementation, to meet the strict procurement guidelines of the ULBs. Also, as stated above, its critical for innovations to have business models that are both commercially viable as well as inclusive for it to align with priorities and commitments of ULBs. In cases, where innovators have come together to work with the ULBs, the efficiency and effectiveness of such partnerships haven’t been very encouraging. The problem companies not working with ULBs to fund innovative a solution through CSR initiatives is a classic chicken and egg problem.

I would like to seek your views on whether the availability of CSR funding attract innovations to work with the ULBs or is it the other way around where the existence of clear and defined engagements of innovators with ULBs attracts CSR funding?