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Using Natural Resource Wealth to Improve Access to Water and Sanitation

Using Natural Resource Wealth to Improve Access to Water and Sanitation

David Doepel Ryan Admiraal Mark McHenry Judy Walls Africa Research Group Murdoch University

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Mining in Africa

In 2011, 5 of the top 20 fastest growing world economies (in terms of GDP) were in Sub-Saharan Africa with mining being a key contributor to this growth.1 Mining accounts for roughly 50% of GDP in Gabon and the Republic of Congo and approximately 40% of GDP in Botswana.2 The African continent ranks either first or second in deposits of a broad range of minerals, including bauxite, chromite, cobalt, diamond, manganese, phosphate rock, platinum-group metals, soda ash, and zirconium.3

1International Monetary Fund, 2012. 2U.S. Geological Survey, 2013. 3Bray, 2012; Corathers, 2012; Gambogi, 2012; Jasinski, 2012;

Kostick, 2012; Loferski, 2012; Olson, 2012; Papp, 2012; Shedd, 2012.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Flip Sides of the Same Coin

PRO: Mining carries significant economic potential for developing nations in Sub-Saharan Africa. CON: Mining introduces new pressures in cities and towns along mining corridors.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Pressures on Communities

Resettlement Repurposing of land Population influx

Pressures on existing infrastructure, including water supply and both solid and human waste disposal. Health impacts.

Economic pressures on individuals

Using Natural Resource Wealth to Improve Access to Water and Sanitation

The Project

“Using Natural Resource Wealth to Improve Access to Water and Sanitation” aims to build the case for long-term investment of mineral resource revenues into the water and sanitation sector. Considered in the context of mining corridors. Improved access to and quality of water and sanitation has a variety of direct benefits for communities, but there are also co-benefits that are frequently

• verlooked.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Nacala Corridor, Mozambique

Using Natural Resource Wealth to Improve Access to Water and Sanitation

NAMWASH Programme

The towns of Ribaue, Mecuburi, Rapale, Namialo, and Monapo were all included in the Nampula Water, Sanitation and Hygiene (NAMWASH) Programme. These towns all have growth rates above the Mozambican average and lie along the Nacala corridor. Programme funded by the Australian Government and implemented by UNICEF Mozambique. Included a baseline survey to establish water and sanitation conditions in these towns.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Nacala Corridor, Mozambique

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Water Source Usage

Water Source Percentage

0.1 0.2 0.3 0.4 0.5 Y a r d t a p P u b l i c t a p B

• r

e h

• l

e P r

• t

e c t e d W e l l U n p r

• t

e c t e d W e l l P r

• t

e c t e d S p r i n g U n p r

• t

e c t e d S p r i n g R i v e r , S t r e a m , L a k e , P

• n

d

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Commonly Used Water Sources

Borehole Unprotected Well

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Latrine Type Usage

Latrine Type Percentage

0.2 0.4 0.6 R u n n i n g w a t e r s y s t e m I m p r

• v

e d l a t r i n e ( w i t h m a n u a l w a t e r ) V I P l a t r i n e ( w i t h s l a b a n d v e n t p i p e ) I m p r

• v

e d l a t r i n e ( w i t h c

• n

c r e t e s l a b ) T r a d i t i

• n

a l l a t r i n e ( w i t h s l a b

• f

d u r a b l e m a t e r i a l ) E c

• l
• g

i c a l l a t r i n e S h a r e d l a t r i n e T r a d i t i

• n

a l l a t r i n e ( n

• s

l a b

• r

m a t e r i a l n

• t

d u r a b l e ) O p e n d e f e c a t i

• n

C a t s y s t e m

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Anticipated Benefits of Improved Water Supply

Better water quality: Improved sources have significantly better water quality, both in terms of colony forming units (CFUs) and turbidity. This improvement in water quality does not necessarily carry over to the home (e.g. improper cleaning of water transport containers).

Highlights that water interventions must be accompanied by sanitation and hygiene interventions.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Anticipated Benefits of Improved Water Supply

Increased water consumption: Decreased time collecting water: Water Source Type Water Consumption Water Source Type Time Collecting Water (in litres) (in min/day) Yard tap 25.88 (21.17, 30.59) Piped 35.13 (26.53, 43.72) Public tap/standpipe 20.67 (17.14, 24.19) Other improved 56.82 (53.08, 60.57) Borehole 17.18 (16.23, 18.14) Unimproved 56.03 (52.72, 59.34) Protected well 16.03 (13.25, 18.81) Unprotected well 17.54 (16.75, 18.32) Protected spring 7.33 (6.41, 8.26) Unprotected spring 26.67 River, stream, lake, pond 23.69 (19.05, 28.34)

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Anticipated Benefits of Improved Water Supply

Improved Health and Reduced Incidence of Childhood Death: Those living with HIV require increased quantity of water.4 Reduced incidence of water-borne diseases such as diarrhoea.

Second leading cause of death for children under the age of five in Africa.5 Incidence estimated to be 8.45% for children under the age of five in these communities.

4WaterAID, 2009. 5Liu et al., 2010

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Anticipated Benefits of Improved Sanitation

Solid and human waste removal not considered to be a pressing issue for these towns, and household latrines were quite clean. Increased privacy and security, especially for women and girls: Result of a reduction in the number of individuals using

• pen defecation/cat method.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Anticipated Benefits of Improved Sanitation

Increased School Attendance for Girls: Improvements could be made in schools, where, in spite of the overwhelming majority of latrines being improved:

• nly approximately 25% were judged to be clean,
• nly 10% had locks, and

none had sanitary bins in girls’ latrines.

The odds of boys using schools latrine were approximately 2.5 times higher than that of girls.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Additional Benefits

Increased business opportunities: Increased spending on improved water supply and sanitation potentially creates new business

• pportunities.

Water infrastructure development/rehabilitation, latrine slab construction and selling, waste removal services, etc.

Greater earning potential: Time saved in getting water or finding a place to defecate can potentially be used for income-generating work.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Laying the Case for Investment in Water and Sanitation

Both governments and industry strive to maximise return on investment. If water and sanitation improvements have already been made, this return on investment can be estimated through a cost-benefit analysis.

Incorporates the actual costs for the (ongoing) water and sanitation improvements and the amount that individuals are paying for these improvements.

If improvements have yet to be made, a return on investment can be estimated through willingness to pay for the improvements. Focusing only on payments for water and sanitation services misses much of the value in water and sanitation improvements.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Laying the Case for Investment in Water and Sanitation

It is vital that analyses additionally provide an economic measure of the values of:

improved health (through reduction in water-borne diseases), reduced incidence of childhood death, increased school attendance, new job creation, increased earning potential, etc.

Market values may be obtained for some benefits if enough time has elapsed from implementation of water and sanitation improvements. Otherwise, the contingent valuation method can be used to provide estimates.6

6Urama et al., 2006; Spash et al., 2006

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Sources I

Bray, E. L. (2012). Bauxite and alumina: U.S. Geological Survey Mineral Commodity Summaries 2012, pp. 26–27. Corathers, L. A. (2012). Manganese: U.S. Geological Survey Mineral Commodity Summaries 2012, pp. 100–101. Gambogi, J. (2012). Zirconium and Hafnium: U.S. Geological Survey Mineral Commodity Summaries 2012,

• pp. 190–191.

International Monetary Fund (2012). World Economic Outlook Database: October 2012 Edition. Washington, DC: International Monetary Fund.

http://www.imf.org/external/pubs/ft/weo/2012/02/weodata/index.aspx.

(Accessed 1 April 2014.)

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Sources II

Jasinski, S. M. (2012). Phosphate Rock: U.S. Geological Survey Mineral Commodity Summaries 2012, pp. 118–119. Kostick, D. S. (2012). Soda Ash: U.S. Geological Survey Mineral Commodity Summaries 2012, pp. 148–149. Loferski, P . J. (2012). Platinum-Group Metals: U.S. Geological Survey Mineral Commodity Summaries 2012,

• pp. 120–121.

Liu, L., Johnson, H. L., Cousens, S., Perin, J., Scott, S., Lawn, J. E., Rudan, I., Campbell, H., Cibulskis, R., Li, M., Mathers, C., Black, R.!E., Child Health Epidemiology Reference Group of WHO and UNICEF (2012). Global, Regional, and National Causes of Child Mortality: An Updated Systematic Analysis for 2010 with Time Trends Since 2000. Lancet 379(9832), pp. 2151–2161.

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Sources III

Olson, D. W.!(2012). Diamond (Industrial): U.S. Geological Survey Mineral Commodity Summaries 2012, pp. 50–51. Papp, J. F . (2012). Chromium: U.S. Geological Survey Mineral Commodity Summaries 2012, pp. 42–43. Shedd, K. B. (2012). Cobalt: U.S. Geological Survey Mineral Commodity Summaries 2012, pp. 46–47. Spash, C., Urama, K. C., Burton, R., Kenyon, W., Shannon, P . and Hill, G. (2006). Motives Behind Willingness to Pay for Improving Biodiversity in a Water Ecosystem: Economics, Ethics and Social Psychology. Ecological Economics 68(4),

• pp. 955–964.

Urama, K. C., Penning, W. E. and Kamari, J. (2006). Cost-Effectiveness Analysis and the Implementation of the

Using Natural Resource Wealth to Improve Access to Water and Sanitation

Sources IV

WFD: Review of Available Approaches and the Role of Model Benchmarking. Archiv fuer Hydrobiologie: Large Rivers Supplement 17(1-2), pp. 201–219. U.S. Geological Survey (2013). U.S. Geological Survey 2011 Minerals Yearbook: Africa. WaterAid (2009). Water and Sanitation for People Living with HIV and AIDS: Exploring the Challenges. WaterAID Tanzania.