Robust regulatory mechanisms can play a crucial role in limiting integrity risks. Bangladesh is working on developing an entirely new regulatory system for water and sanitation. This system will have to address fragementation, conflicts of interest, and integrity issues.
Guest post by ITN-BUET
The primary goal of the International Training Network Centre of Bangladesh University of Engineering and Technology (ITN-BUET) is to achieve an improved human resource base that promotes sustainable development of water supply and sanitation. It strives for expansion of the knowledge base through networking. It acts as a bridge between stakeholders, creating opportunities for the academicians and implementers join a common forum and work hand in hand for the WASH sector.
Bangladesh, with its growing population and urbanisation, faces significant challenges in ensuring adequate water supply and sanitation services. According to the latest Joint Monitoring Programme for Water Supply, Sanitation and Hygiene (JMP) report [1], the national coverage rates for safely managed water supply and sanitation are 59% and 31% respectively. A lack of transparency and low accountability in service delivery enable common malpractice, compounding the service challenges further. Unethical practices, illegal activities, and fraud hinder fair and sustainable water and sanitation services.
Establishing robust regulatory mechanisms is a vital policy intervention to address these challenges, promote sector goals in the public interest, and balance the competing interests of various stakeholders. Evidence suggests that having a formal regulatory body can lead to more consistent application of regulatory functions.[2]
Currently, in Bangladesh the WASH regulatory mandate is fragmented. Multiple entities are involved, including Water Supply and Sewerage Authorities (WASAs) and Local Government Institutions (LGIs), which often act as both service providers and regulators. This overlap creates conflicts of interest and leads to various integrity issues that undermine the effectiveness of regulation, and ultimately of service.
Bangladesh is following the Citywide Inclusive Sanitation (CWIS) framework to achieve SDG 6.2 targets. Faecal Sludge Management (FSM) is prioritised under the approach. To do so, the Government of Bangladesh (GoB) has formulated the Institutional and Regulatory Framework for Faecal Sludge Management (IRF-FSM). [3] It designates LGIs as the primary service authorities for non-sewered sanitation (NSS). The regulatory roles for FSM services remain ambiguous however, and the development and enforcement of integrity mechanisms remain limited.
The Eighth Five Year Plan of the GoB [4] highlights the set-up of a formal WASH regulatory system as a key policy action. The Ministry of Local Government, Rural Development & Co-operatives (MoLGRD&C) is taking this forward with support from the Asian Development Bank (ADB). ITN-BUET, in collaboration with the Institute of Water Modelling (IWM), is providing technical support for this initiative.
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THE NEED FOR EFFECTIVE URBAN SANITATION REGULATION
The decision to establish a regulatory system is spurred by sectoral challenges, coordination gaps in policy implementation and limited private sector engagement. Several other factors are also driving this process, including a number related to integrity risks.
Integrity risks in financial management and governance
In service delivery across the country, there are integrity concerns related to governance, finance, human resources, procurement, project implementation and customer relations.
For example, public procurement is prone to mismanagement, corruption, and vendors’ ploys, as it is everywhere. The World Bank's evaluation of Bangladesh [5] found the procurement process to be highly unsatisfactory, citing problems such as inadequate advertisement, short bidding periods, vague specifications, non-disclosure of selection criteria, one-sided contract terms, unnecessary rebidding, and frequent instances of corruption at the national level.
Furthermore, misuse of public funds, discriminatory allocation of resources, and the exploitation of monopoly power by service providers to overcharge customers are major areas of concern. Irregularities in recruitment processes, nepotism in contract awards, and issues related to hiring qualified staff have also been noted. There are cases where bribes are extorted for basic services and the suppression of complaints is common.
Undue political interference
Unethical or overreaching actions of political leaders can cause major setbacks, hindering the ability to make impactful decisions and deliver services fairly.
For example, though WASA boards are meant to operate independently, the involvement of high-level political figures in WASA affairs can create significant challenges and compromise the ability to act in the public rather than personal interests. Similarly, elected representatives of LGIs often fail to exercise the powers granted to them by the LGI Act, prioritising public support for political gain over effective governance.
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THE PATH FORWARD
For the definition of a new regulatory system and in light of these factors, two considerations emerge.
First there is a need to ensure financial and political autonomy of regulators and service providers both for effective regulation and for the effective implementation of CWIS and the delivery of pro-poor services. Rather than political motivations, clear criteria for equitable and optimised service delivery, should guide sector developments and the selection of water and sanitation service point locations.
Second, adequate regulatory attention must be paid to those integrity risks that hold services back.
With regard to international best practices and the country’s institutional and financial context, ministerial regulation appears to be suitable for a country like Bangladesh and could be set up to address these considerations.
The proposed system should be able to set the roles of water and sanitation service providers, set service standards, manage monitoring and reporting mechanisms, and wield sanctions and incentives, to enable:
• Improved service quality, sustainability, and equity, and customer satisfaction
• Financial sustainability of water and sanitation service providers
There are a number of next steps to take in establishing this regulatory system and make it effective.
Firstly, establishing a coordination platform that unites all regulatory and service delivery entities—including the Department of Public Health Engineering (DPHE), WASAs, and LGIs—is essential. This platform will help clarify and streamline the roles and responsibilities of those involved in service delivery and regulation.
Secondly, increasing and training staff for all WASH services in these entities will improve monitoring and regulation. Strengthening corporate governance of public utilities also requires targeted training, such as training for boards of directors of WASAs.
Thirdly, enabling greater involvement of Civil Society Organizations (CSOs) is also vital, as these can help mitigate undue political interference and hold public officials accountable. They can do this by actively participating in open decision-making processes, conducting social audits, and raising voices in public hearing platforms.
Fourthly, developing and enforcing clear standards for service provision is a first measure to take —such as with service level requirements, tariff-setting guidelines and adjustment procedures.
Finally, ensuring transparency and accountability must be part of the regulator’s responsibilities. This can be done first through standardised monitoring and reporting requirements, with incentives for regularly updating the data and information. Making performance data publicly available through digital tools like e-PMIS and e-GPS will also improve transparency and enable the public to access information on service quality.
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The establishment of a water and sanitation regulatory system is a crucial step towards ensuring sustainable and equitable access to water and sanitation services in Bangladesh. By addressing the challenges faced by the sector and providing a robust regulatory framework, the government can improve the lives of millions of people and contribute to the country's overall development.
References:
[1] JMP. (2022). Wash Data. Retrieved from: https://washdata.org/data/household
[2] ESAWAS. (2022). The Water Supply and Sanitation Regulatory Landscape Across Africa: Continent-Wide Synthesis Report. Retrieved from: http://www.ppa.pt/wp-content/uploads/2024/01/Esawas_Report_2022.pdf
[3] Policy Support Branch, Ministry of Local Government Rural Development & Cooperatives, GoB. (2017, October). Institutional and Regulatory Framework for Faecal Sludge Management
(IRF-FSM). Retrieved from: https://itn.buet.ac.bd/web/resource-category/national-documents/page/2/
[4] Bangladesh Planning Commission, Ministry of Planning, GoB. (2020). 8th Five Year Plan. Retrieved from: https://plancomm.gov.bd/site/files/8ec347dc-4926-4802-a839-7569897e1a7a/8th-Five-Year-Plan
[5] World Bank (2002). Bangladesh Country Procurement Assessment report. Retrieved from: https://documents.worldbank.org/en/publication/documents-reports/documentdetail/812041468743656486/bangladesh-country-procurement-assessment-report
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