Transforming Rural Water Supply Services for the Poor through Public-Private Partnership in Vietnam

East Meets West builds the capacity of the private sector and government to effectively deliver clean water to rural villages in Vietnam.

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I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.

  • Yes, I'm eligible

Preferred language

  • English

Organization name

East Meets West (EMW), a program of Thrive Networks

Year founded

1988

Initiative stage

  • Growth (the pilot has already launched and is starting to expand)

Annual budget in 2017 (USD)

  • $1mil - $5mil

Number of beneficiaries impacted so far

  • 10,000 - 50,000

Organization type

  • Nonprofit, NGO, or citizen sector

Secondary Focus Area

  • Rural development

Headquarters location: Country

  • Vietnam

Headquarters location: City

Hanoi

Location(s) of impact

Son La, Ha Nam, Nghe An, Hai Duong, and An Giang provinces

Website

thrivenetworks.org

Facebook URL

https://www.facebook.com/thrivenetworks.org/

Twitter URL

@ThriveNet

Problem: What problem is this initiative trying to address?

Only 45% of rural villages in Vietnam have access to clean water. Where piped water systems exist, connection rates are low and quality of operation and maintenance is poor. Weak community ownership, a focus on asset building over system management, and low tariff levels to cover costs mean the government struggles to connect more families. Private enterprises can fill the gap, but their lack of capacity and the complicated government bidding and procurement systems discourage them from investing in rural water supply.

Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?

EMW provides smart subsidies to encourage the private sector to build, own, and operate rural water supply systems. Our study showed that privately-ran systems are 69% more sustainable than those ran by cooperatives or local authorities. We work with the government to implement transparent and efficient procurement processes and invite private operators to bid for construction projects. Women’s Union, our long-time partner that promotes women’s rights and gender equality, provides health education to motivate villagers to connect to water systems.

In our pilot in Son La province, winning enterprises spent $100 for each new connection. For every household connected, Thrive disburses $50 to the enterprises upon independent verification, while households pay $50 connection fee, allowing 100% full cost recovery. Digital monitoring tracks customer satisfaction and accurate payment to enterprises.

We aim to solidify the pilot to ensure sustainability in the ecosystem of water services.

Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work

EMW facilitates the creation of shared value by increasing rural communities’ access to clean water while enhancing the sustainability of water systems and private enterprises. Since 2016, we have awarded smart subsidies to five private operators, which in turn have built new piped water connections that serve 7,000 rural households (~35,000 people) in Son La and Ha Nam provinces. Clean piped water ensures the health of families and communities. It also leads to improved sanitation and hygiene practices, which positively impact health and the environment. Moreover, as systems are developed, women’s decision-making in their families’ health and hygiene also increases.

With EMW's support, private enterprises improve their efficiency through reduced construction time (from 12 to 5 months) and increased access to digital monitoring, advanced technology, and better accounting and budgeting procedures, which help them effectively manage business operations and serve more households.

Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?

The Australian government funded the pilot project, and we aim to diversify funding to expand our work in three rural provinces in Vietnam. Our annual budget is composed of 60% grants, 38% individual donations, and 2% earned income.

To ensure long-term sustainability, we are determining full cost recovery tariffs and smart subsidy levels. Customers pay for individual connections and a monthly fee for water use with wealthier households cross-subsidizing the costs for poor households. Depending on the size of the system (number of connections), the payback period for the enterprise will vary from 10-20 years. We will also advocate for government adoption of the smart subsidy approach and for regulatory reform to support private enterprise ownership and management of rural water systems.

Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?

East Meets West goes beyond traditional aid to incentivize poor rural households, communities, the government, and the private sector to deliver clean water and ensure long-term sustainability of rural water systems. By attracting private sector investment in the water sector, EMW is helping solve challenges and creating shared value for the poorest rural communities and local private enterprises.

Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.

As part of a World Bank grant to provide clean water services to poor rural communities in Vietnam, we learned that private operators were more efficient service providers than cooperatives or local authorities but were not being tapped effectively. Grant results revealed that private operators have higher labor productivity, lower water losses, better collection performance, fewer system breakdowns, and quicker response to repair requests, leading to higher customer satisfaction. But the private sector only manages 2.9% of total water schemes, with a sustainability rate 19% higher than other providers. These findings led us to pilot a partnership with the private sector to build water systems in provinces lacking access to clean water.

Where did you hear about the Nestlé Creating Shared Value Prize?

  • Upon recommendation from others

Evaluation results

3 evaluations so far

1. Overall evaluation

5 - This idea rocked my world. It’s awesome! - 33.3%

4 - This idea seems really exciting. With a little more polishing, it’d be among my favorites. - 33.3%

3 - I think the idea is great, but it needs some work before it moves onto the next round. - 33.3%

2 - I liked it fine but preferred others. - 0%

1 - It didn’t make my heart beat faster. Needs significant revisions. - 0%

2. Innovation

5 - Absolutely, 100%! - 33.3%

4 - I feel really good about this - very promising - 33.3%

3 - This has some good elements and some areas for development - 0%

2 - This doesn’t inspire me so much - 33.3%

1 - This entry is weak here - 0%

3. Social and/or Environmental Impact

5 - Absolutely, 100%! - 66.7%

4 - I feel really good about this - very promising - 33.3%

3 - This has some good elements and some areas for development - 0%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

4. Financial sustainability

5 - Absolutely, 100%! - 100%

4 - I feel really good about this - very promising - 100%

3 - This has some good elements and some areas for development - 0%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 100%

Nothing stands out! I thought it was great. - 0%

5. Potential to Scale / Replicability

5 - Absolutely, 100%! - 66.7%

4 - I feel really good about this - very promising - 0%

3 - This has some good elements and some areas for development - 0%

2 - This doesn’t inspire me so much - 33.3%

1 - This entry is weak here - 0%

6. Organizational Leadership

5 - Absolutely, 100%! - 66.7%

4 - I feel really good about this - very promising - 33.3%

3 - This has some good elements and some areas for development - 0%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

7. Potential for Creating Shared Value

5 - Absolutely, 100%! - 33.3%

4 - I feel really good about this - very promising - 33.3%

3 - This has some good elements and some areas for development - 0%

2 - This doesn’t inspire me so much - 33.3%

1 - This entry is weak here - 0%

Attachments (1)

(E) PSI slides for PPP forum_final (1).pptx

Our team presented the project in an event co-organized by the World Bank and the Government of Vietnam's Committee for Ethnic Minority Affairs.

1 comment

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Photo of Ramy Elmery

Great project Lynn. Wish you The Best Of Luck! 5 Stars ....