16 SEPTEMBER

20
22

WATER
GOVERNANCE IN
INFORMALSETTLEMENTSKNOWLEDGE EXCHANGEREPORTTable of Contents
Introduction

01

UN-Habitat Presentation

02

WaterAid Myanmar Presentation

02

Myanmar Kitchen Presentation

03

Comparison of Models

04

Q&A

05

Facillitated Session

07

Conclusion

09

Annex 1

11

Annex 2

13

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORTIntroduction
The impact of COVID-19 is being most devastatingly felt in the world’s urban areas,
especially the urban poor communities including in informal settlements. In addition,
the COVID-19 pandemic has reminded us once again of the central role that water,
sanitation and hygiene (WASH) plays in protecting us from diseases. In 2011, the UN
Human Rights Council recognized the rights to water and sanitation as vital for
leading a life of dignity and as a prerequisite for realizing other human rights.
However, despite clear international law on the human rights to water and sanitation,
and widespread recognition of these rights, more than a decade later, most of the
COVID-19 recommendations were almost impossible to implement in informal
settlements due to poor infrastructure and lack of accessibility to basic social services.
To respond to water supply and quality related challenges in the informal settlementsof Yangon, both UN-Habitat and WaterAid Myanmar have been implementing
projects aiming at construction/ rehabilitation of water supply systems for the deliveryof clean, safe, and reliable drinking water to communities in informal settlements. Dueto their informal nature, these vulnerable neighbourhoods not only lack basic services,
they also face challenges with maintenance of services following upgrading efforts.
Therefore, both agencies also provide emphasis on strengthening the capacity ofcommunities to operate and maintain the quality and function of their water supply
systems. Much of the innovation in upgrading is in community-driven processes andpartnerships with local communities and organizations formed by informal
settlement residents. For these initiatives to succeed in the long run, collaborative
governance strategies and clearly delineated mandates are needed, with explicit
integration of urban green infrastructure into strategies for in-situ informal
settlements upgrading and green growth opportunities.
Therefore, on the 16 of September 2022, UN-Habitat and WaterAid Myanmar jointly
organized a knowledge sharing session. The objective of the session was to gain
insight into, and share experiences regarding different approaches to governance ofwater supply systems in informal settlements.
The knowledge exchange session involved presentations from each participatingorganization followed by a Q&A session, and a facilitated discussion. This reportsummarizes the key points from the session. A full list of the 33 participants is
attached (Annex 1) along with the original concept note and schedule (Annex 2).

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

01

UN-Habitat Presentation
UN-Habitat presented on the project “Building resilience against COVID-19 through WASH andwaste management support in urban informal settlements”. This project consists of threecomponents, 1) enhancing access to safe water and improved environmental sanitation, 2)
improving solid waste management, and 3) improving hygiene awareness and capacity ofcommunities. A key part of the first component is the construction of 22 drinking water supply
systems across 8 townships.
UN-Habitat also shared past experiences on water governance. UN-Habitat mainstreams thePeople’s Process for their project and programme. In the past, the process involved theformation of Community Development Committees (CDCs) which comprised of volunteers
from the community. CDC members take responsibility for managing, maintaining, andoperating the system. To support the CDCs, UN-Habitat normally provides trainings and gives
the community a comprehensive Water Safety Plan manual. The Project plans to apply thesame approach for the governance of 22 water supply systems which are currently being
implemented in peri-urban Yangon.

WaterAid Myanmar Presentation
WaterAid Myanmar presented on their people-centred approach to providing safe drinking
water to people across Myanmar. Within two townships, the organization has established six
drinking water production factories. They have additionally established 6 drinking waterproduction factories the communities. Two nunneries and three monasteries additionallysupply water to their schools. Water can be purchased directly at the facility, but WaterAid also
pays distributors via credits to allow water to be purchased at the household level.
WaterAid uses a community owned social enterprise model for the community waterproduction factories. Community representatives comprise the board of directors and thelaborers responsible for operating and maintaining the system. Members will go throughInstitutional Training, Management Training, and Accountability & Compliance Training, and/or
a longer Operation & Maintenance (O&M) Training, depending on their role in the social
enterprise. WaterAid Myanmar also has an agreement for three years with a private technicalcompany for the continued mentoring on O&M and management of social enterprise for theboard of directors as well as the production teams of each enterprise.

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

02

Myanmar Kitchen Presentation
Myanmar Kitchen presented on the operation of their water kiosk project. The project involves
two water kiosks in Hlaing Thar Yar township which produce water to be distributed and soldto the community. These kiosks are located in monasteries where Myanmar Kitchen has
signed 5-year agreements for use of the land. Additionally, Myanmar Kitchen signs 5-year
maintenance contracts with the equipment suppliers.
The facilities operate as non-profits owned and managed by Myanmar Kitchen. Workers fromthe community are employed to handle the operation and maintenance of the facilities.
Myanmar Kitchen also works with youths in their respective communities to build capacity forsupervision and distribution of water bottles. In order to distribute the water, Myanmar Kitchen
also signs agreements with distributors in the communities and supplies them with water.

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

03

Comparison of Models
UN-Habitat

WaterAid Myanmar

Myanmar Kitchen

Operations
model

Community-owned
model

Social enterprisemodel

Non-profit kiosk

YCDC lands
Public schools
Monastic schools

Monasteries

Land

YCDC lands
Monasteries
Well-wishers

Management ofsystemCDCs

Board of Directors(BODs)

Myanmar Kitchen

Operation ofsystemCDCs

Board of Directors(BODs)

Locals are hired for
operation andmaintenance

CDCs and
distributors in thecommunity

Sales at the factory
gate
Sales from
distributors at thehousehold level
Sell to other schools

Local distributors at
every street ofcovered area
Want to improvelogistics to reachmore people

Meets national
water quality
standards during
installation
Annual checking
and checking basedonrecommendationwater treatment
plant supplier.

Quarterly testing is
put in place
Seasonal quality
testing5-year contract
signed with supplier
Incorporates quality
control system
Every 2 weeks by
the third-party
laboratory (water
quality and e-coli).

Present politicalenvironment posesa challenge to form
functioning CDCs
Difficulty for CDCs
to open a bankaccount

Unstable supply ofelectricity
High cost of fuel torun generators
Low price of water
selling may affectlong term O&M
costs
BOD team newly
trained andinducted; continues
to learn as time
progresses

Distribution
model

Water quality
check

Past andpotential
challenges

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

Face power
shortageDistribution* Solved by finding
distributors

04

Q&A
After the presentations, a question and answer session was held. Several common questions
emerged and the different responses are outlined below:

HOW DOES EACH PROJECT MAINTAIN AFFORDABLE PRICING?
Myanmar Kitchen: Prices are set to cover salaries, operation, andmaintenance costs. As a non-profit, this allows the water to be soldbelow the market price. At the moment, the system has not yet
reached sustainability but will once their place in the market has been
established.
UN-Habitat (UNH): Community members discuss the price, but it must
be below the market rate. Price will vary according to the cost of
maintenance at each plant.
WaterAid MM: Prices are analyzed by determining total inputs andoutputs for each of the water supply system established together withan experienced consultant and by adjusting to the market priceincluding labour costs. Profit from sales are utilized for O&M fund.

HOW DOES EACH PROJECT MANAGE LAND RIGHTS?
UNH & WaterAid: Communities identify potential locations for the water
plants. A final location is selected based on suitability based ondemarcation process and approval from Yangon City Development
Committee (YCDC).
Myanmar Kitchen: Agreements are formed with monasteries to use
their land for 5 years. Ownership of the plant remains with Myanmar
Kitchen.

HOW DOES UN-HABITAT SET UP CDCS?
CDCs are not registered with the General Administration Department(GAD). They usually comprise 5 or 7 members selected by community
members.
Positions include a chairperson, treasurer, secretary, etc. Almost half ofthe members are women.

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

05

WHAT ARE THE BENEFITS OF AN ENTREPRENEURIAL MODEL OVER ACOMMUNITY OWNED MODEL?
Community ownership allows for direct price control and water quality
oversight.
Community ownership can lead to fostering capacity building andstrengthens communal bonds.
However, ownership falls apart with internal conflict as nobody wants
to, or can, take individual responsibility (tragedy of the commons).
The ongoing political turmoil has led to distrust within communities
and makes forming CDCs more difficult. In the current situation, thegovernment may not allow CDCs to open bank accounts, and this may
be challenging to ensure budget accountability.
An entrepreneurial model creates clear responsibilities and prioritizes
sustainable finances.
It may be possible to learn from and incorporate aspects of bothmodels into ongoing work.

HOW IS THE SUSTAINABILITY OF THE SYSTEM CONSIDERED?
Myanmar Kitchen: As of now, it is difficult to predict prices or necessary
costs in the future due to current environment. Thus, Myanmar Kitchen
decided to ensure the maintenance and operation of the kiosks for 5
years by forming agreements with monasteries and equipment
companies. Contracts can be renegotiated after 5 years which allow
flexibility given the uncertain future. They are also improving theirlogistics capacities because there is currently not enough demand tobe sustainable. If they reach 4,500 bottle capacity, they will reach breakeven.
UNH: UN-Habitat constructed four water supply systems in peri-urban
Yangon in the past. Two of them are continuously operated by CDCs,
which UN-Habitat formed in the past. This shows that CDC members
are able to operate and maintain the systems sustainably if they are
well-trained and have a relationship with water treatment company
and township engineers. However, two systems have become obsolete
after running and providing the services to their communities morethan 6 and 7 years. The obsolesce is a result of the township receiving
government managed piped water supply system. Government water
is cheaper and more easily accessible and thus preferred. After
consensus of community members in the meeting, these plants haveceased operation and been shut down due to the decrease in
consumption. Unlike other areas, families in informal settlements prefertap water to bottled water from the systems due to their financial
condition and accessibility.
WaterAid MM: WaterAid MM or a WaterAid MM-deployed organization
will support the BODs with functioning process of water supply systems
for 2-3 years and the handover process will be discussed accordingly.

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

06

Facilitated Session
In the afternoon, a facilitated session was held where attendees had the chance to discuss
issues raised in the morning session more in depth. The following 6 topics were suggested to
guide the discussion.
1. Different management models
2. Pricing issues
3. Water testing/quality
4. Mapping of coverage
5. Securing information from YCDC for future integration
6. Fund mobilization for long-term maintenance
The attendees were divided into three groups: 1) a group consisting mostly of UN-Habitat
members, 2) a group consisting of members of Water Aid Myanmar and Myanmar Kitchen,and 3) a group consisting of international participants.

GROUP 1
1. CDC model is preferred due to alignment with the People’s Process
Business and social enterprise models place focus on profit over capacity building
Current political climate is a major downside to forming and strengthening CDCs
2. Water pricing should be set as a percentage of the market price
Delivery: 75-80%
Pickup: 60-65%
3. The contractor which has been outsourced for water treatment plant installation is
responsible for Operation and Management (O&M) of the plants during the one-year
warranty period. Technical support is sought from them after expiry of the warranty period.
Water quality has been adhered to the national standard and it is tested yearly
4. Approval is requested from YCDC on the legal use of land for water treatment plants andcommunities are selected based on a set of criteria for the installation of water treatment
plants
5. YCDC is involved to help provide technical support for future maintenance and operations
6. Seek support from individual supporters including monasteries and private companies (i.e.
donation of lands)

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT07

GROUP 2
1. Different management models were defined accordingly:
Organization management - single organization manages all project aspects
Community based management - emphasis is on ownership and capacity building of
the communities
Combination model - management body oversees operations
2. Financial analysis should take into how different factors add up and change over timeNGOs and private sector can step in when costs exceed a ceiling
3. Quality checks should be conducted at regular (quarterly) intervals
4. Mapping should occur along with a feasibility study
5. Working with the YCDC is encouraged as they can provide legal approval and technicalsupport
6. Funds should be sought from private and public sources
Changes in production should be accounted for

GROUP 3
The group discussed about pricing issues. They calculated that a 20-liter bottle of water should
cost a minimum of 120 kyat for pickup and 150 kyat for delivery. In a social enterprise model, a20-liter bottle of water should cost 250 kyat.
The following were made as assumptions to simplify calculations:
1. 150,000 kyat for staff salaries
2. 5,000 kyat per day for a rental pushcart
3. No expenses for social benefits of employees (i.e. insurance)
4. Salary for 6 working days per week

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

08

Conclusion
The knowledge exchange session generated healthy discussion about the challenges anddiffering approaches to water governance. It is clear that there is still much to be learned andtested, especially given the dynamic and complex landscape of the informal settlements.
Several key themes emerged from the session.

Cost

Responsibility

Access to clean water is a human right.
The session considered how to ensure
access to affordable clean drinking water
for all, while still covering the cost of
production.

Clear responsibilities are necessary forsustainable operation and maintenance.
The session analysed the potential
responsible entity for the system as well
as how these responsibilities can besustained for long term continuation.

Trust
Trust within communities is critical for the
adoption and continued maintenance ofclean drinking water supply. The session
considered how to overcome the current
challenges and build trust in the watersupply and governance structures.
The following table compares the different governance models that were discussed
throughout the session:Community Owned

Management
Structure

Land Ownership

Employment

Non-Profit

Combination

Community
managed via
members elected to
a committee

Privately managed
by a board of
directors (BOD)

BOD overseen andregulated bycommunityorganization

Land use
permissions
granted by YCDC

Private agreements
made (ex. withmonestraies) for useof land
May or may notinclude rent
payments

Undetermined

Volunteers from
community

Employees andcontractors

Employees andcontractors

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

09

Pricing

Price set bycommittee
consensus to cover
O&M costs

Price set by BOD tocover wages andO&M costs

Prices set by BOD
and changes
approved bycommittee

O&M

Community training+ support fromcontractors and
YCDC

Employees trainedon O&M

Employees trainedon O&M

Subject to tragedyof the commons

No price or quality
oversight

Untested model

Creates new skills
within community
via capacity
building activities

Clear responsibility
and motivation for
O&M

Flexibility of nonprofit with
community
oversight

UniqueLimitations

Unique Benefits

While there is no-one-size-fits-all approach to overcoming these challenges, considering theseelements going forward will strengthen the approach to water governance in informal
settlements.

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

10

Annex 1: Attendence List
Name

Organization

Shihab Uddin Ahamad

WaterAid Myanmar

Khin Win Kyi

WaterAid Myanmar

Thiha Aung Soe

WaterAid Myanmar

Aye ThanWaterAid Myanmar

Khant Phyo Wai

WaterAid Myanmar

Peter Pau Za Dal

WaterAid Myanmar

Shresha Karmacharya

WaterAid Myanmar

Myint Zaw

Thuta Nyana Co., Ltd. (Research & Consultancy Services)

Win Thein

Thuta Nyana Co., Ltd. (Research & Consultancy Services)

Kyaw Lin

Thuta Nyana Co., Ltd. (Research & Consultancy Services)

Georgia Pretty

WaterAid Myanmar

Mir Nadia Nivin

UNDP

Patrick Galli

UNICEF

Pravin More

UNICEF

Payam Ardalan

Myanmar Kitchen

Soe Thandar Htet

Myanmar Kitchen

Hsu Hsu Lin Lett

Myanmar Kitchen

Catarina Camarinhas

UN-Habitat Myanmar

Shashank Mishra

UN-Habitat Myanmar

Htun Lynn

UN-Habitat Myanmar

Win Hlaing Tun

UN-Habitat Myanmar

Aye Cho

UN-Habitat Myanmar

San Win

UN-Habitat Myanmar

Aung Naing Oo

UN-Habitat Myanmar

Myo Nyunt Oo

UN-Habitat Myanmar

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT

11

Name

Organization

Tun Lin Latt

UN-Habitat Myanmar

Than Lwin Oo

UN-Habitat Myanmar

Aung Pyae Phyo

UN-Habitat Myanmar

Myint Aye

UN-Habitat Myanmar

San Tun Aung

UN-Habitat Myanmar

Naw Khine Thazin

UN-Habitat Myanmar

Jun Fujihira

UN-Habitat Myanmar

Madison Berry

UN-Habitat Myanmar

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEGE EXCHANGE REPORT12

WATER GOVERNANCE IN INFORMAL SETTLEMENTSKNOWLEDGE EXCHANGE SESSION
Background
The impact of COVID-19 is being most devastatingly felt in the world’s urban areas, especially the urban
poor communities including in informal settlements. In addition, the COVID-19 pandemic has reminded
us once again of the central role that water, sanitation and hygiene (WASH) plays in protecting us from
diseases. In 2011, the UN Human Rights Council recognized the rights to water and sanitation as vitalfor leading a life of dignity and as a prerequisite for realizing other human rights. However, despite clear
international law on the human rights to water and sanitation, and widespread recognition of theserights, more than a decade later, most of the COVID-19 recommendations were almost impossible toimplement in informal settlements due to poor infrastructure and lack of accessibility to basic social
services.
To respond to water supply and quality related challenges in the informal settlements of Yangon, both
UN-Habitat and WaterAid have been implementing projects aiming at construction/ rehabilitation ofwater supply systems for the delivery of clean, safe, and reliable drinking water to communities in
informal settlements. Due to their informal nature, these vulnerable neighborhoods not only lack basic
services, they also face challenges with maintenance of services following upgrading efforts.
Therefore, both agencies also provide emphasis on strengthening the capacity of communities tooperate and maintain the quality and function of their water supply systems. Much of the innovation in
upgrading is in community-driven processes and partnerships with local communities andorganizations formed by informal settlement residents. For these initiatives to succeed in the long run,collaborative governance strategies and clearly delineated mandates are needed, with explicit
integration of urban green infrastructure into strategies for in-situ informal settlements upgrading andgreen growth opportunities.

Summary of the session
OBJECTIVE
To strengthen approaches of capacity building of communities, operation andmanagement of the water systems through sharing and discussion about lessons
learned and possible measures to be taken to respond to common issues in
informal settlements of Yangon.
DATE & TIME

VENUE

16 September 2022
9:00 am – 12:00 pm* (optionalsession from 14:00 pm onwards)

Eureka room
Novotel Hotel

AGENDA
09:00 – 09:30 Registration
09:30 – 09:40 Welcome Remarks
09:40 – 09:50 Opening of the session andintroduction of Participants
09:50 – 10:00 Brief introduction about the
UN-Habitat & Japan SB
project
10:00 – 10:15 Sharing from UN-Habitat
10:15 – 10:30 Sharing from Water Aid

10:30 – 10:45 Sharing from
UNICEF/ Myanmar
Kitchen
10:45 – 11:00 Break
11:00 – 12:15 Discussion
12:15 – 12:30 Closing Remarks
12:30 – 13:30 Lunch
14:00 – 16:30 Facilitated Session

AGENDAWATER GOVERNANCE IN INFORMAL SETTLEMENTS
Knowledge exchange session

TIME

TOPIC/ ACTIVITY

09:00 – 09:30

Registration and welcome

09:30 – 09:40

Welcome Remarks

FACILITATOR
UN-Habitat
WaterAid

09:40 – 09:50

Opening of the session and introduction of Participants

Jun Fujihira(UN-Habitat)

09:50 – 10:00

Introduction

Jun Fujihira(UN-Habitat)

Brief introduction about UN-Habitat and the project for“building resilience against COVID-19 through WASH andwaste management support in urban informal settlements”
10:00 – 10:15

Presentation 1
UN-Habitat’s experiences, approaches, and plan on theoperation and management of 22 water systems incooperation with partners

10:15 – 10:30

Presentation 2
Water Aid’s experience on capacity building trainings,
operation and management related to water systems

10:30 – 10:45

Presentation 3
Myanmar Kitchen/UNICEF’s experience on WSS in
communities

10:45 – 11:00

Break

11:00 – 12:15

Discussion
Discussion and consideration of lessons learned that could
be put into future governance of water supply systems

12:15 – 12:30

Closing Remarks

Htun Lynn(UN-Habitat)

TBD(WaterAid
Myanmar)
Myanmar
Kitchen

TBD(UNH)
UN-Habitat
WaterAid

12:30 – 13:30

Lunch

All

14:00 – 16:30

Facilitated session on documentation of findings, including
WSS models and water governance
WaterAid in collaboration with UNDP is commissioning alearning documentation of WSS in Yangon’s peri-urban
areas. Discussions and findings from the morning session
will be captured to feed into this learning documentation
more critically.
Participants from UN-Habitat, Myanmar Kitchen, UNICEF
and UNDP are very much welcome to join this segment of
the workshop.

WAMM