KATHMANDU, Sept 11: A transformative two-day Water and Sanitation Regulatory Conference for South Asia, held in Kathmandu, concluded on Friday, with a collective commitment from participating countries to fortify regulatory frameworks governing water and sanitation services across the region.

This regulatory conference marked a significant milestone in advancing Comprehensive Water, Sanitation, and Hygiene (CWIS) initiatives in South Asia, emphasizing the crucial role of a robust institutional and regulatory framework. Such a framework ensures that utilities and city authorities receive essential guidance and support to meet prescribed service standards. Clear rules, standards, and targets facilitate the allocation of necessary financial, human, and technological resources, bolstering public confidence in the government's capacity to deliver quality sanitation services.

The conference addressed the need to extend regulatory considerations to water supply services, acknowledging the intertwined responsibilities of utilities in both sectors. Representatives from Bangladesh, Nepal, the Indian state of Odisha, Africa, Malaysia, and the Philippines shared their progress in regulatory reform journeys, drawing valuable insights from successful models in Africa, Malaysia, and the Philippines.

Organized by the Bill and Melinda Gates Foundation with support from its partner organization, WaterLinks, a non-profit organization, in cooperation with governments and development partners including UN-Habitat Nepal, UNICEF Bangladesh, the Asian Development Bank (ADB), and the World Bank (WB), the conference sought to provide a comprehensive overview of regulatory systems employed in various regions and emphasized the organizational structures contributing to success. It also paved the way for potential cooperation through the establishment of the Sanitation and Water Regulators' Association in South Asia (SWARASA).

Addressing the conference, Roshan Shrestha, Deputy Director of India and South & Southeast Asia Water, Sanitation, and Hygiene at the Bill and Melinda Gates Foundation, provided insights into the foundation's efforts in South Asia. He also underscored the importance of focusing on the water supply and sanitation sector to achieve the Sustainable Development Goals (SDGs) by 2030. While acknowledging the significant progress made in South Asia, Shrestha pointed out that the regulatory system in the region still requires strengthening. In Southeast Asia, countries like Malaysia and the Philippines have made notable advancements in this field, highlighting an opportunity for South Asia to catch up.

Shrestha also emphasized the fundamental importance of sanitation as a human right and advocated for the establishment of a dedicated regulatory body to drive progress and help achieve this critical goal. He expressed the foundation's willingness to collaborate with governments from various countries to address and enhance the existing regulatory framework.

The regulatory conference proved to be a pivotal milestone in advancing Comprehensive Water, Sanitation, and Hygiene (CWIS) initiatives in the region. A key emphasis was placed on the critical role of a robust institutional and regulatory framework, which provides utilities and city authorities with essential guidance and support to meet prescribed service standards. 

The framework, characterized by clear rules, standards, and targets, ensures the allocation of necessary financial, human, and technological resources, and facilitates timely government support as required. Consequently, it instills public confidence in the government's capacity to deliver quality sanitation services.

The regional conference also addressed the imperative of extending regulatory considerations to water supply services, given the often-intertwined responsibilities of utilities in both water supply and sanitation. The conference brought together expert speakers and those in the regulatory body from Bangladesh, Nepal, and India, Africa, Malaysia and the Philippines.

Recognizing the fact that both water supply and sanitation services need to be regulated, the conference brought together the representatives from the Governments of Bangladesh, Nepal, and the Indian state of Odisha, sharing their progress in regulatory reform journeys. Insights were gleaned from successful regulatory models in Africa, Malaysia, and the Philippines. 

The conference's objectives were comprehensive, seeking to provide a thorough overview of regulatory systems employed in Malaysia, the Philippines, East, and Southern Africa. It aimed to familiarize participants from Bangladesh, Nepal, and Odisha with effective regulatory arrangements in these regions. 

The regional event also emphasized the organizational structures contributing to success while highlighting the pivotal role of regulation in enhancing WASH (Water, Sanitation, and Hygiene) services. Furthermore, discussions were held on tailored institutional and regulatory frameworks for each of the participating nations. Notably, the conference also paved the way for potential cooperation through the establishment of the Sanitation and Water Regulators' Association in South Asia (SWARASA).

Eminent speakers and representatives from key regulatory bodies, including ESAWAS, the National Water Service Commission (SPAN) of Malaysia, and the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) of the Philippines, shared valuable insights. ESAWAS, a network of water supply and sanitation regulators in East and Southern Africa, emphasized the importance of collaboration to achieve quality regulation. SPAN in Malaysia showcased its regulatory progress in overseeing water supply and sewerage services. MWSS-RO in the Philippines, mandated to monitor and regulate private concessionaires, presented insights on effective performance evaluation.

The Governments of Bangladesh, Nepal, and the State of Odisha in India were actively engaged in their respective regulatory reform journeys. Drawing inspiration from successful regulatory models in Africa, Malaysia, and the Philippines, the conference aimed to stimulate innovative thinking and provide alternative options for consideration. This initiative sought to equip public officials in South Asia, particularly those overseeing water and sanitation departments, with valuable insights from countries where regulatory mechanisms have been firmly established and operationalized.

Inaugural Session

Narayan Prasad Acharya Undersecretary, Ministry of Water Supply (MoWS), Nepal gave the welcome address in the inaugural session and shed light on the relevance of the conference.  “As we embark on this two-day intensive discussion, learning and sharing of experiences and knowledge, constructive dialogue on regulation, and meaningful connection, we stand united to our commitment to address the pressing water and sanitation issue that our region faces. This conference is not merely a congregation of mind, but a convergence of heart dedicated to bolstering sustainable water and sanitation solutions that will benefit millions across South Asia,” he said.

In the conference, Roshan Shrestha, Deputy Director of India and South & Southeast Asia Water, Sanitation, and Hygiene; Global Growth and Opportunity, Bill and Melinda Gates Foundation, shed light on the works done by the foundation in South Asia. Likewise, he emphasized the need for work in the sector of water supply and sanitation services for the attainment of Sustainable Development Goals (SDGs) 2030.  Although South Asia is working a lot and progressing a lot, the regulatory system isn’t strongly established. In Southeast Asia, Malaysia and the Philippines are progressing quite well, but we are still lagging behind in this sector. When talking about sanitation as a human right, we should have a regulatory body that will address that and really help to reach the goal. Therefore, we are happy to work with the governments of various countries to address this regulatory system.”

Peter Harvey, Regional Advisor for WASH and Environment, UNICEF ROSA, spoke about the effective work and regulation done by UNICEF. “Sanitation is recognized as a human right, so along with the rights and responsibilities and regulation is particularly important in this sector because we have so many different players, we have the public sector, the private sector, the household themselves, we have the informal sectors that are involved as well. So, regulation is really the key, so we make sure that all the different players are accountable and especially because of that human right, the need for inclusivity and to reach those that are not reached, South Asia has made massive progress in water and sanitation in recent decades when we look at the WHO and UNICEF data, the acceleration is huge, but there are still our gaps and particularly when we look at safely managed sanitation services and safely managed water services, there’s still quite a lot of work to do there. The regulation plays a real critical part within that. 

The Ministry of Water Supply, Nepal, is the pivotal executive agency responsible for formulating federal-level policies in the water supply and sanitation sector in Nepal. Established on December 26, 2015 and subsequently renamed during the reorganization of line ministries on March 17, 2018, it oversees the management and regulation of water supply and sanitation-related initiatives. The Department of Water and Sewerage Management (DWSSM) operates under the ministry, playing a key role in implementation.

Minister of MoWS, Nepal, Mahendra Yadav said that the WASH Act has already come into implementation in Nepal and its regulation will be drafted soon. Similarly, he hoped for cooperation and coordination between the South Asian countries and proposed the Sanitation and Water Regulators Association of South Asia Network. “Water and sanitation services are not only a cornerstone for development but also the foundation of human wellbeing and dignity. The government of Nepal extends its unwavering commitment to ensuring access to water supply and sanitation,” he said. 

As the closing remark for the inaugural session, Ram Adhar Sah, Secretary, MoWS, Nepal, emphasized on the collaboration between South Asian countries for drinking water supply and sanitation. “Let us perpetuate the ethos of collaboration and innovation that have pervaded our deliberations. Let us remain steadfast in our commitment to the principles of equitable access to water and sanitation services, sustainable resource management, and the advancement of regulatory frameworks that promise a brighter future for all.

Working Sessions

In the working session followed by the inaugural session, representatives of the governments of Nepal, India, and Bangladesh discussed the state of regulation and work to be done in the sector of drinking water and sanitation.

Tiresh Khatri, Joint Secretary, MoWS, Nepal, presented the government’s current efforts at regulatory reform (amendments on the WASH Act, regulations drafting, and future outlook). “Regulation includes a typology of four regulatory functions related to WASH services. They are tariff setting, licensing of service provision, enhancing WASH governance, and increasing equity and inclusiveness and other provisions in the regulation are about equity and inclusion, monitoring, and regulation as per the proposed regulation inspection are to be nominated or selected by the ministry for the monitoring, supervision and regulation of the standard.

Similarly, it has been proposed that the ministry establishes one monitoring unit where the provision of planning and coordination, service standards and quality, and grievance handling are well mentioned.  "The right to a clean environment, health-related rights (access to safe water supply and sanitation), and the right of the consumer have all been guaranteed under Nepal's 2015 constitution. The Water Tax Act of 1966, which established the taxing of drinking water, marked the beginning of the legal path for water supply and sanitation,” he added.

The status of policy and other legal instruments for water supply and sanitation services in Nepal revealed the formulation of WASH Policy 2023, Drinking Water Quality Standard 2022, Drinking Water Quality Standard Implementation and Monitoring Directives 2022, and Domestic Waste Water Effluent Standard 2023.

On behalf of the collaborator organization, UN-Habitat Nepal representative Sudha Shrestha presented UN-Habitat Nepal’s support to the government of Nepal on WASH regulatory reform. “This is for the three countries with which we are collaborating to really strengthen the regulation part for which we have formed a citywide inclusive sanitation alliance for Nepal where 18 agencies are collectively working to advance inclusive sanitation aspects in Nepal. In this, we have three themes where policy and monitoring are led by UN agencies, the advocacy part is led by SOPHEN and Water Aid, and the capacity building part is led by ENPHO. So, we are standing by to really move forward for the inclusive sanitation services for the people of Nepal,” said Shrestha.

In the conference, ADB’s Initiatives for regulatory reform in Bangladesh were also presented. Water supply sanitation regulatory mechanism development TA is a collective TA between the development partners led by ADB, World Bank, Bill and Melinda Gates Foundation and UNICEF. The executing agency of the TA is the local government division; the implementing agency would be the policy support branch of the local government division. The main outcome of TA is establishing water and sanitation mechanism Three outputs of the TA are identify a clear mandate and appropriate structure of the water supply, sanitation regulatory mechanism, finalize the laws to establish the WSS regulatory mechanism, strengthen the capacity of LGD in understanding the requirements of the water supply sanitation regulatory mechanism. A joint work plan from ADB, World Bank, Bill and Melinda Gates foundation and UNICEF has been shared with LGD and Bangladesh Resident Mission, Asian Development Bank (ADB) agreed on as per the work plan, a 17-member national steering committee has been formed. 

Similarly, G Mathi Vathanan, Principal Secretary, Department of Housing and Urban Development, Odisha, India, presented the government’s current efforts on WASH regulatory reform. “The works that have been done till now include the regulatory actions to improve the multi-level integrated WASH planning and improving the speed and quality of project implementation for the maintenance of quality and speed to cover the water supply and sanitation  and the piloting service delivery improvements  and data collection monitoring. We are looking forward to the regulatory aspect. We are drafting and planning for an independent public sector integrated water and sanitation regulatory framework also finalizing the regulatory instruments for tariff and service level environmental monitoring during the period from December 2023 to May 2024,”   he said.

Shubhagato Dasgupta, Global Water and Sanitation Center, presented on GWSC’s support to the state of Odisha on WASH regulatory reform. “The government ‘s funding in the water sector has gone up by 100 times as compared to the funding 20 years back. In Odisha itself, what drives the understanding of the strategy is that  the government policy of WASH as a public good and as a right for all citizens is getting more and more embedded and is reflected in many of their documents. The Government of Odisha has identified itself as a welfare state. Odisha’s success in improving WASH infrastructure and services is nationally and internationally recognized. 

After the presentations from different country’s representatives on WASH regulatory reforms, participants gave their views, questions and suggestions on the sector. 

In the conference, representatives from Zambia, Malaysia, Philippines and Kenya discussed various aspects of regulation and shared the experience and status of their respective countries on the sector. 

Sujatha Krishnan Nair, Suruhanjaya Perkhidmatan Air Negara (SPAN), Malaysia shed light on SPAN’s uniform regulation, monitoring and enforcement with further prosecution that has ensured better system  and quality service. 

Patrick Lester Ty, MWSS-RO, Philippines, expressed the hope that a water regulatory commission and department of water bill pass soon which is already with the Congress in the lower house. “The WRMC will hopefully finally be passed after 25 years, which will ensure regulatory services to the rest of the Philippines and not just Metro Manila '', he said.

James Kigutu, Water Services Regulatory Board (WASREB), Kenya emphasized on compliance monitoring and enforcement –ensuring quality of services and operations; enforcement process and procedures. “Kenya is a small country in East Africa with a population of about 50 million. Current water coverage of safely managed water is about 62% and we have stagnated there since 2011. I believe that most of the countries that we represent here are facing similar challenges of climate change impact, finance gap and increasing population and that   is what we are trying to fight, “he said.

Izan Aziati Binti Samsuri, representative of SPAN, Malaysia, said that in terms of the regulation mechanism, how SPAN regulates water supply services providers and sewage service providers is basically the same, which is through a licensing regime. Hence, any person who carries out a water supply service in the form of operation and maintenance of water supply system and sewage system are subject to a license. The operation of such services without a license is an offense. 

Chola Nbilima, representative of NWASCO, Zambia, said that stakeholder mapping is an important aspect while regulating onsite sanitation to identify who is legally responsible to regulate what. This prevents duplicating regulations. 

The second day of the conference addressed various other important aspects such as tariff setting, licensing, sector reporting and benchmarking, and sanitation regulation. Under sector reporting and benchmarking, which serves as an important tool and a reference point, Yvonne Magawa, Executive Secretary at Eastern and Southern Africa Water and Sanitation Regulators Association (ESAWAS), Zambia, presented ESAWAS’s KPI and harmonized performance boundaries.

Water coverage, sewerage coverage, water quality and hours of supply as the KPIs for quality of service, likewise,0&M coverage, collection efficiency and staff cost as KPIs for economic efficiency and staff/1,000 water and sewerage connections, NRW and metering ratio as KPIs for operational sustainability. 

Over two days, the conference provided a platform for participating governments to present their current efforts and future outlooks in regulatory reform in the water and sanitation sector. Each session was followed by an interactive Q&A and discussion, fostering a robust exchange of knowledge and ideas among participants and regulatory experts. The conference concluded with the participating governments outlining their intended paths for regulatory reform.

 
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