Scoping Study For Alternative Water Supply Service Operating And Management Model

SCOPE OF WORK

1. PROJECT BACKGROUND 

The USAID Karnali Water Activity will create healthy, resilient, and water secure communities at the watershed level through strengthened water and sanitation governance that improves water resource management (including water for more resilient and biodiverse ecosystems), enhance sustainable access to drinking water, improve agriculture water management, and reduce the fecal pathogen burden in the environment from poorly managed non-sewered sanitation through fecal sludge management. The USAID Karnali Water Activity team will methodically integrate water resource management (WRM), watershed biodiversity conservation, and water and sanitation service delivery by mapping and strengthening the roles, connections, and capacities of key actors and stakeholders’ systemwide. The USAID Karnali Water Activity works with 29 municipalities in 8 districts within the Karnali River Basin, which extends over Karnali, Lumbini and Sudurpashchim Provinces in the west of Nepal. Activities will take place in four watersheds (Rara, Tila, Middle Karnali and Lower Karnali). 

Various water supply service management models are currently practiced in Nepal. The commonly employed model involves Water Users and Sanitation Committees (WUSCs), which operate and maintain systems in rural and small towns. In larger towns, the Nepal Water Supply Corporation (NWSC) is responsible for providing services in 23 locations. Additionally, the Water Supply Management Board (WSMB) oversees services in three towns. In the Kathmandu Valley, a specific management structure is in place. The Kathmandu Valley Water Supply Management Board manages the water supply system, while the operation is carried out by Kathmandu Upatyaka Khanepani Limited (KUKL).

Community-managed water supply services, where Water User and Sanitation Committees (WUSCs) operate, have played a pivotal role in providing access to clean and reliable water in rural Nepal. Despite their significance, these committees encounter a range of challenges. These include technical limitations related to infrastructure maintenance and water quality, financial constraints in securing funds for upgrades and repairs, environmental issues such as water source pollution and depletion, and broader climate challenges. Social concerns, including equity in access and participation, further contribute to the complexity of the situation. In many cases, these challenges surpass the capacity of local WUSCs, particularly in rural areas of Nepal. This hampers effective service delivery and WASH governance, often leading to the poor functioning or non-functioning of systems shortly after construction. 

2.         OBJECTIVE

In this context, USAID Karnali Water Activity aims to explore and implement alternative management models for rural water supply services. This involves analyzing existing practices to ensure the long-term operational and financial sustainability of water schemes throughout their projected lifespan.

The primary objective of the scoping study is to identify the most effective model for the long-term operation, management, and delivery of water supply services in the rural areas where USAID Karnali Water Activity operates. The study will evaluate various management models employed in both Nepal and globally, assessing their performance, efficiency, and effectiveness. The ultimate goal is to recommend the best management model for implementation by USAID Karnali Water Activity which will fit into future plans around governance in Activity’s target municipalities for testing or piloting demonstration models with a focus on achieving the sustainable operation and service delivery of water supply schemes.

Importantly, the study will consider the sizes, technologies (gravity flow or lifting system) and remoteness of the schemes to recommend an appropriate management model tailored to the specific context.

3.         DETAILED TASKS

The Offerors will carry out a comprehensive assessment of current water supply services operation management models throughout rural Nepal evaluating their efficiency, effectiveness, and overall performance of existing water supply services management. Further, the Offerors will gather the information on knowledge, attitudes, and practices about WSS services operation including gaps, challenges and opportunities so as to capture the learning, experiences and recommendations from national/provincial/local level WASH stakeholders and governments. The Offerors will be responsible for the following activities under this SOW:

1. Conduct a comprehensive assessment of current water supply services operation management models practiced in rural area of Nepal which includes the water supply schemes size ranging from small (less than 50 households), medium (50-500 households) or large schemes, technologies (gravity flow or lifting system) and evaluate the efficiency, effectiveness, and overall relative performance of existing water supply services management approach. For the Activity’s four watersheds, this will mean mountain contexts in Rara Khatyad, hill and mountain contexts in Tila, hill contexts in Middle Karnali, and terai and hill context for the Lower Karnali.  
2. Analyze the operational processes, resource allocation, and decision-making mechanisms in place for the provision of water supply service including issues related to ownership of infrastructure, management responsivity, criteria of water tariff setting and scopes, and how scheme repairs and upgrades are designed, financed, and implemented.
3. Analyze the feasibility of alternate management modalities for USAID Karnali Water Activity working locations considering different scenarios e.g., single water scheme, merger of schemes under a management umbrella and several rural systems, or a Water Board, including analysis as to whether these modalities are also influenced by the type of technology or level of service.
4. Identify and categorize the various stakeholders to be involved in water supply operation and management for the alternative management modalities, including government agencies, private sector entities, non-governmental organizations, cooperatives, municipalities, and define the role and responsibilities of those identified stakeholder in the potential operating modalities.
5. Analyze the legal and regulatory framework governing water supply services in Nepal, with a focus on any provisions related to recommended alternative management models. 
6. Identify any existing barriers or incentives for the service provider to anticipate the opportunities and challenges for the recommended management modalities. Propose measures to resolve the identified barriers. 
7. Evaluate the financial viability of proposed management models, considering investment requirements, revenue generation, and cost recovery mechanisms considering different scenarios e.g. single water scheme, merger of schemes and two or more schemes and several rural systems, or a Water Board. Assess the affordability of water services for different income groups within the target communities.
8. Identify specific training and capacity-building requirements for potential service providers to ensure efficient operation, maintenance, and management of water supply systems. The Activity’s SPCA report can be a reference document.
9. Consider the existing and potential environmental impacts of water supply projects and ensure how those impacts may be addressed in the proposed alternative modalities, including issues related to water source protection, wastewater management, and their productive use. 
10. Conduct a lesson learning workshop to validate the proposed modalities ensuring multistakeholder participation including community representatives, local government, provincial government of Karnali Province, USAID and other development partners, private sector, and other WASH actors. 
11. Offer specific recommendations to guide the formulation and implementation of alternative management model/s especially relevant to the context of each watershed in the Activity’s working locations based on the findings of the scoping study.

Note that steps #1 and #2 above essentially cover a comprehensive review and understanding of the current situation, whereas steps #3 onwards cover the analysis of alternative management modalities.

4.         ACTIVITIES, AND TIMELINE

5.         MANAGEMENT OVERSIGHT, REPORTING AND TECHNICAL DIRECTION

The Offerors will work under the overall guidance and advisement of the USAID Karnali Water Activity’s COP and/or DCOP under the technical oversight of Water Supply Services and Private Sector Development Specialist (WSSPSDS). The Offerors will also consult with the GESI Director/Advisor, Governance Manager, and Supervisory Engineer as required for technical inputs. 

The Offerors shall submit the final report detailing the progress of tasks via email to the Water Supply Services and Private Sector Development Specialist, which will be reviewed by the team. The deliverables will be submitted as per the agreed schedule so that they may be reviewed and improved accordingly. Final due dates for deliverables will be determined once the Offeror has been on-boarded. 

All the products and reports prepared under this SOW will be in English and submitted to the Water Supply Services and Private Sector Development Specialist. All products and reports will belong to the USAID Karnali Water Activity. The Offeror will not have any right to publish/share them in full or in part in any form/print material neither it will have any rights on its use.

6.         LEVEL OF EFFORT

The Offerors will implement this scope of work with a 60-day level of effort from a national STTA individuals. The Offeror will start from 1st May 2024 and submit the final report by 31st July 2024.

7.         DELIVERABLES AND PAYMENT

The STTA will be required to submit the deliverables with the payment structure as follows:

8.         EVALUATION CRITERIA

The SOW will be evaluated according to the following criteria:

• Relevant experience of the individuals in conducting similar studies and research
• Qualifications and experience to accomplish the assignment.
• Methodology proposed to accomplish the assignment, with particular emphasis on quality and appropriateness of the study.
• GESI integration approach in methodology.

The distribution of the scoring system corresponding to each of the evaluation criteria is tabulated below. 

9.         QUALIFICATIONS AND EXPERIENCE

• Master’s degree in Sociology, Rural Development, Civil engineering, WASH, Water Resource Management, or other relevant fields.
• At least 8 years of technical experience on water supply services, including relevant work in water supply service operation management, water systems, infrastructure, and management practices in different settings, study and research, climate change, disaster risk and economical/financial analysis.
• Skill in assessing the financial viability and economic feasibility of different water supply models.
• Knowledge of local, regional, and national laws governing water supply, including regulations regarding privatization or cooperative models.
• Ability to assess social impacts, community needs, and stakeholder engagement strategies concerning water supply services.
• Experience in conducting feasibility studies, managing projects, and implementing operational changes in the water supply services sector.
• Understanding the environmental implications of various water supply models and the ability to assess their sustainability.
• Familiarity with policy frameworks related to water supply, including public-private partnerships (PPPs) and cooperative models.
• Knowledge of water infrastructure, technology, and engineering solutions applicable to different operating models.
• Proficiency in financial modeling, cost-benefit analysis, and funding mechanisms relevant to water supply projects.
• Experience in this field of water supply services with government, development partners, private sector, co-operatives, private insurance companies and preferably in the communities supported by the USAID Karnali Water Activity.
• Cross cultural awareness and ability to work amongst a diverse group of staff, and partners.
• Excellent proficiency in oral and written communication in English and Nepali, including a demonstrated record of accomplishment in technical report writing and ability to communicate technical matters effectively to general audience. 
• Required computer proficiencies: Word, Excel, PowerPoint, etc.

10.     PROPOSAL SUBMISSION (INSTRUCTION)

Interested individuals should submit the technical and financial proposal including the following bullets:

• Technical proposal should be no more than 7 pages, no smaller than 12-point font, excluding any annexes. Proposal must follow for the format outlined in section 5c.
• CV of individual/s proposed for tasks, maximum 6 page per person as part of annexes.
• Cost proposal submitted in separate files (PDF and Excel) which should cover all individuals cost including travel, DSA and accommodation cost and other activity cost defined by SoW and technical proposal. Cost should be proposed in a standard format comprising item, quantity, unit, rate and total cost format.
• Technical and financial proposals must be submitted in English.
• The proposal should be in .pdf, or .docx format, and “.rar” files will not be accepted.

Interested and qualified applicants should submit the proposal via email stating the position title in the subject line to KarnaliWater_recruitment@dai.com no later than 3 May 2024, 12 PM Nepal time.

About DAI

DAI is a global development company with corporate offices in the United States, the United Kingdom, EU, Nigeria, Pakistan, and Palestine and project operations worldwide. We tackle fundamental social and economic development problems caused by inefficient markets, ineffective governance, and instability. DAI works on the frontlines of global development. Transforming ideas into action—action into impact. We are committed to shaping a more livable world.

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