Subsidies

By Kairos Posted on Sat 26 Jul 2008, over 17 years ago

Hi,
generally I value the idea of providing subsidies (to poorer households) as stimulans for the building of toilet facilities. And I see the connection to pure water as well. What puzzles me a bit, is the fact that subsidies which are only available in a clearly limited area (such as the case of this project) can lead to negative impact on the motivation to erect toilets in the surrounding area. Why are they getting 25 USD, and we don't? My own perspection on subsidy policies is, that they should be channeled through the national (or subnational) administrative channels. I'm aware that this can be tedious in some areas (corruption etc) but I guess Vietnam would not be the worst area to channel through official bodies. Any ideas or comments on this?
Martin
-PS. I'm presently working in an area where people don't even attend government-offered training courses because all the NGOs offer free food for their courses.... NGOs create parallel universes here...

Co-financing challenges and sanitation reports

By A Single Drop Posted on Thu 17 Jul 2008, over 17 years ago

I think I reveiwed this last round but I have a few more questions this time. Can you tell us a little more about the challenges and learnings from the last implementation. Did you have co-financing challenges? $100 seems like a lot of money for the users, but I absolutely understand it is the cost of the latrine. What is your payment scheme? If yes, what is the rate of people paying on time, defaulting etc? Also, you have a very intensive report on the clean water systems attached with full descriptions of M&E, maintainence, quality control. Do you have anything specifically about the latrines, M&E, maintanence, quality control??

Co-financing challenges and sanitation reports

By East Meets West Foundation Posted on Sun 27 Jul 2008, over 17 years ago

Subsidies are useful for two reasons. Most people are motivated by the offer of free money (subsidy). Most rural Vietnamese families nowadays (although this is not necessarily true of ethnic minority communities who have different cultural attitudes about defecation) would prefer to have a proper hygienic latrine, as opposed to practicing open defecation. There are several motivating factors involved, including the more obvious ones are having privacy and isolating feces from the local environment. If people routinely defecate openly in the typically rainy environment of much of Vietnam, when the rains come, shit is dispersed everywhere, a situation that neither rich nor poor people appreciate.

Therefore, essentially every family wants to have its own latrine. If there is no subsidy available to build latrines, people are still likely to build a family latrine eventually, but they may put off that investment for a year or two until after they have accumulated sufficient capital to invest in the latrine.

However, when a subsidy is made available, people are much more likely to invest in a latrine now. For example, this year EMW has provided subsidies for 200 families to build latrines. Without those subsidies, it is likely that only 50 or so latrines would get built in the first year. The other 150 family latrines might not get built for another two or three years, contingent upon the families’ capacity and willingness to accumulate sufficient capital to make that investment.

Regarding investment costs, the cost of a proper of pour-flush double vault sanitary latrine with brick walls and a roof was about $120 last year. If there was a proper bathroom as well (i.e., shower for bathing) the price would have been about $500. Due to the steadily inflating costs of goods, materials and labor, the current price of a basic pour-flush latrine is about $180 (VND 2,200,000). Inflation across the board is reflected by the increase in the price of petrol, which was VND 20,000 per liter, and nowadays is VND 32,000 per liter.

Payment scheme and default - Subsidy payments are made only after the latrine is built, so there is no possibility of default payments.

Yes, we have a description of the latrine program, though it is not anywhere as detailed and comprehensive as our water project evaluation that you alluded to.

Subsidies

By Kairos Posted on Sat 26 Jul 2008, over 17 years ago

Hi,
generally I value the idea of providing subsidies (to poorer households) as stimulans for the building of toilet facilities. And I see the connection to pure water as well. What puzzles me a bit, is the fact that subsidies which are only available in a clearly limited area (such as the case of this project) can lead to negative impact on the motivation to erect toilets in the surrounding area. Why are they getting 25 USD, and we don't? My own perspection on subsidy policies is, that they should be channeled through the national (or subnational) administrative channels. I'm aware that this can be tedious in some areas (corruption etc) but I guess Vietnam would not be the worst area to channel through official bodies. Any ideas or comments on this?
Martin
-PS. I'm presently working in an area where people don't even attend government-offered training courses because all the NGOs offer free food for their courses.... NGOs create parallel universes here...

Subsidies

By East Meets West Foundation Posted on Sun 27 Jul 2008, over 17 years ago

Just because you do not have access to a latrine subsidy doesn't mean you can't build a latrine on your own. There already are national programs for channelling funds for both water and sanitation. These programs are financed by both the Government of Vietnam as well as international donor agencies and many NGOs.

Channelling NGO funds through government agencies would add a significant overhead that would ultimately reduce the level of services currently being made available through EMW and other NGOs providing watsan services.

By El Porvenir Posted on Sun 20 Jul 2008, over 17 years ago

Dear Rick,

I think I reviewed this one last time as well. I would also be interested to hear about the subsidy results. We are very interested, since our beneficiaries to not contribute monetarily to their latrines at the moment, just their sweat equity. Are the villagers farmers, what is their source of income to pay $100?

How do you get de-sludging for just $10? Are these villages fairly high density? Here I think it would cost about $100 (just a guess though). I think we are likely not nearly as dense in our population here.

I will also be interested to hear about the ecosan initiative and how that goes. We are also looking into that as an alternative, and also in Nicaragua it is not widely accepted. (well, not at all, practically speaking).

Is the hygiene education program funded separately? Your application seems to imply that.

My other questions are repeated above, so I look forward to your answers there as well.

Thanks,
Rob

Income source, etc.

By East Meets West Foundation Posted on Sun 27 Jul 2008, over 17 years ago

Their income source is primarily agriculture production (mostly rice).

At this time the hygiene behavioral change program is funding directly by EMW overhead funds.

High density housing surrounded by rice fields.

De-sludging labor is cheap for a single family latrine in the countryside.

Interest in Eco-san latrines is somewhat limited in the Central Region for cultural reasons.

Latrine Subsidies - similar to previous response above

By East Meets West Foundation Posted on Sun 27 Jul 2008, over 17 years ago

The hygiene promotion program is currently funded out of discretionary funds, which are nowadays quite limited.

Subsidies are useful for two reasons. Most people are motivated by the offer of free money (subsidy). Most rural Vietnamese families nowadays (although this is not necessarily true of ethnic minority communities who have different cultural attitudes about defecation) would prefer to have a proper hygienic latrine, as opposed to practicing open defecation. There are several motivating factors involved, including the more obvious ones are having privacy and isolating feces from the local environment. If people routinely defecate openly in the typically rainy environment of much of Vietnam, when the rains come, shit is dispersed everywhere, a situation that neither rich nor poor people appreciate.

Therefore, essentially every family wants to have its own latrine. If there is no subsidy available to build latrines, people are still likely to build a family latrine eventually, but they may put off that investment for a year or two until after they have accumulated sufficient capital to invest in the latrine.

However, when a subsidy is made available, people are much more likely to invest in a latrine now. For example, this year EMW has provided subsidies for 200 families to build latrines. Without those subsidies, it is likely that only 50 or so latrines would get built in the first year. The other 150 family latrines might not get built for another two or three years, contingent upon the families’ capacity and willingness to accumulate sufficient capital to make that investment.

Regarding investment costs, the cost of a proper of pour-flush double vault sanitary latrine with brick walls and a roof was about $120 last year. If there was a proper bathroom as well (i.e., shower for bathing) the price would have been about $500. Due to the steadily inflating costs of goods, materials and labor, the current price of a basic pour-flush latrine is about $180 (VND 2,200,000). Inflation across the board is reflected by the increase in the price of petrol, which was VND 20,000 per liter, and nowadays is VND 32,000 per liter.

Payment scheme and default - Subsidy payments are made only after the latrine is built, so there is no possibility of default payments.

Yes, we have a description of the latrine program, though it is not anywhere as detailed and comprehensive as our water project evaluation that you alluded to.