Multi-Village Pooling Project in Indonesia : handbook for community-based water supply organizations

 WATER AND SANITATION PROGRAM: HANDBOOK 65995 Ministry of Public Works Multi-Village Pooling Project in Indonesia Handbook for Community-Based Water Supply Organizations October 2011 The Water and Sanitation Program is a multi-donor partnership administered by the World Bank to support poor people in obtaining National Development Planning Agency affordable, safe, and sustainable access to water and sanitation services. The Water and Sanitation Program The Water and Sanitation Program (WSP) is a multi-donor partnership created in 1978 and administered by the World Bank to support poor people in obtaining affordable, safe, and sustainable access to water and sanitation services. WSP provides technical assistance, facilitates knowledge exchange, and promotes evidence-based advancements in sector dialogue. WSP has offices in 24 countries across Africa, East Asia and the Pacific, Latin America and the Caribbean, South Asia, and in Washington, DC. WSP’s donors include Australia, Austria, Canada, Denmark, Finland, France, the Bill and Melinda Gates Foundation, Ireland, Luxembourg, Netherlands, Norway, Sweden, Switzerland, United Kingdom, United States, and the World Bank. For more information, please visit www.wsp.org. WSP reports are published to communicate the results of WSP’s work to the development community. The findings, interpretations, and conclusions expressed herein are entirely those of the author and should not be attributed to the World Bank or its affiliated organizations, or to members of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. © 2011 Water and Sanitation Program Multi-Village Pooling Project (MVP) in Indonesia Handbook for Community-Based Water Supply Organizations Written by Jemima Sy (Water and Sanitation Specialist), Team Leader for Multi-Village Pooling Project, Water and Sanitation Program with contributions from Leila Elvas (Senior Water and Sanitation Specialist) and Deviariandy Setiawan (MVP Project Coordinator) and inputs from Rudi Andrian (Engineer), Rudy Jusdian (Finance Specialist), Silva Liem (Organizational Development Specialist), Tatit Palgunadi (Engineer), Novalinda Ramdhani (Organizational Development Specialist) and August Restiawan (Finance Specialist). Alfred Lambertus conducted a peer review on the book. This handbook was inspired by the efforts and experiences of staff of local governments, non-government support agencies and community- based water organizations in the five districts that participated in MVP: Bandung Cianjur Indra M. (Head) Dispertasih Kusnadi Bappeda Deddy Mulyadi (Water Supply Dadang Umar (Division Head) Dinas Tata Ruang & Permukiman Section Head) Iden Aringga (Water Supply Pudjadi Section Head) Ruhiyat Asep Sudradjat Rukmansyah Muhammad Cakra Amiyana Bappeda Hasanudin BPSAB Kademangan Kusnar Nazsir BPSAB Ciburial Ece Hasanudin BPSAB Tirta Manggala Adam H.S. BPSAB Panenjoan Yayat Hidayat Helen Lok Yayasan Pesat D. Hidayat BPSAB Tirta Jagabaya, Wawan Gunawan Cikidangbayabang Kosasih Padmakusumah Lamongan Bedih Supriadi Puguh Setya W. Bappeda Lina Rozana Hadi Broto (Head) Dinas Pekerjaan Umum, Cipta Karya Suhaeti (Adhe) Widi Siswono Zulkhah Blitar Kasdan (Head) Asosiasi Banyu Urip Imam Hanafi Bappeda Kiswanto M. Mauludin Sumantri (Head) Dinas Lingkungan Hidup & Atekan Andriono Siswanto Permukiman M. Safik Dwi Pudyono Nur Supriyanto Hariyanto (Head) Asosiasi Badan Pengelola Air Bersih Patah Wijaya Frans Hehanussa Malang Ahmad Budianto Wanuh Asmoyo Anwar Suprapto Dinas Cipta Karya dan Tata Ruang Hari Badrus Renung Rubiyatadji Andreas Suwito Sayid Muhammad (Head) Asosiasi Badan Pengelola Air Bersih Surani Jauhari Fatkhur Ridlo & Sanitasi Basuki Siswoyo A.Zayyadi Nardi Sugiani M. Qosim M. Sukron Sibaweh www.wsp.org 1  Water and Sanitation Program with the Ministry of Public Works and the National Development Planning Agency Table of Contents Additional Materials and References Included in the Accompanying CD 5 Foreword 6 1. Background 7 2. Introduction 8 2.1. Purpose 8 2.2. About the Multi-Village Pooling Project 8 2.3. Topics and Tools in the Book 8 3. Institutional Framework for Community-Managed Water Supply 10 3.1. Who is Responsible for Providing Water Supply to the People? 10 3.2. How can CBOs be Involved in Water Supply Service? 10 3.3. Residual Authority of the State and Local Governments 11 3.4. Are CBOs Part-Owners or Strictly Operators of Water Supply Systems? 11 3.5. Why is it Important to Distinguish between Owners and Operators? 11 4. Regulatory Requirements to Establish a Water Supply Service Organization 14 4.1. Must be a Legal Entity; Recognized Forms of Community Organizations 14 4.2. Must Have a License to Operate 17 4.3. Must Have a Permit to Extract Raw Water 20 4.4. Must Have Legal Access to Land 20 4.5. Continuing Obligation to Ensure Water Quality 20 4.6. Continuing Performance Review and Reporting 21 5. Organizational Structures and Management Systems of CBOs 22 5.1. What Makes Up an Organization? 22 5.2. Laying the Basis for the People, Processes and Practices of the CBO 23 5.3. Summary of Systems of CBO Accountability 26 6A. Components of a Small Piped Water Supply System 28 6.1. What are the Components of a Water Supply System? 28 6.2. Selecting Water Sources 29 6.3. Estimating Quantity of Water Demand 31 6.4. Different Ways to Measure the Capacity of the Water Source 32 6.6. Managing Water Quality 38 6.7. Design of Water Transmission and Distribution 38 6B. Basic Operations and Maintenance 45 6.8. Financing Operations, Maintenance and Emergency Repairs 45 6.9. Most Frequent Problems with the Water Intake 46 6.10. Most Frequent Problems with the Spring Catchment (Bronkaptering) 46 6.11. Most Frequent Problems with the Deep Well, Pump and Pump House 48 6.12. Most Frequent Problems with the Reservoir 49 6.13. Electrical Safety and Most Frequent Problems with Generators 50 6.14. Most Frequent Problems with Water Meters 50 7. Financial Recording and Reporting System 51 7.1. Organizational Structure and Internal Controls 51 7.2. General Flow and Terminologies 52 7.3. Billing Procedures 56 Water and Sanitation Program 2  Multi-Village Pooling Project in Indonesia Handbook for Community-Based Water Supply Organizations 7.4. Collection Procedures 57 7.5. Payment Procedures 58 7.6. Financial Reports Preparation Procedures 58 8. New Investment Project for Community Water Supply 82 8.1. Technical Planning Phase 82 8.2. Financial Planning Phase 84 8.3. Implementation Phase 88 Appendices 91 Appendix 1: Sample License to Operate 91 Appendix 2: Model Articles of Organization: Cooperative 93 Appendix 3: Blank Forms 113 List of Figures Figure 1: Rural Water Supply Access 7 Figure 2: Responsibility for Water Supply and Sanitation Development (PP 16/2005) 10 Figure 3: Examples of Ownership and Operations Structures: Fully Public Provision to Fully Private Provision 11 Figure 4: Functional Areas of a Water Supply Enterprise 23 Figure 5: Strengths-Weaknesses-Opportunities-Threats Strategies 24 Figure 6: Suggested Organization Chart of CBOs 25 Figure 7: Simple Water Supply System (Combined Pump and Gravity) 28 Figure 8: Ground Water Formation 29 Figure 9: Spring Formation 30 Figure 10: Components of a Jet Pump 30 Figure 11: Jet Pump System 30 Figure 12: Basic Pump Operating Stages 30 Figure 13: Flow Measurement Using Volumetric Method 33 Figure 14: Weir Method 34 Figure 15: Intake Structure 37 Figure 16: Roughness Coef