Appendix F
Product-service package
By Steven Sugden and Rémi Kaupp, included in the joint
report.
The product service package approach can be divided into four
components:
1. Designing and developing low cost, low space latrines which
are affordable to the poor
2. Developing reliable affordable, safe pit emptying services to
take excreta from the pit to a transfer tank.
3. Providing bulk transport services from the transfer tank to
the final disposal site
4. Providing a site for safe, acceptable final disposal.
This approach is based on the need to remove the two main
constraints facing the res- idents; lack of space and money. The way to make a
latrine smaller and cheaper is to reduce the size and cost of all the
components, including the pit, so as to make the cap- ital cost low enough to
be affordable (and desirable) for the majority of the households. This process
of reducing the pit size automatically decreases the time it takes for the
pit
to fill and the need is introduced for more frequent emptying.
This emptying service has
to be provided by small scale private sector operators whose
development, capacity and commercial viability is one of the keys to making
this approach sustainable. The small scale emptiers dump the waste into a
transfer tank, which when full, is taken for final disposal.
F.1 Components
F.1.1 Designing low cost, low space, affordable
latrines
The price of current latrine design built by the local masons is
around HT$ 2,500 (US$
310) and unaffordable to the urban poor. International
Development Enterprises (IDE)
describe the three building blocks of cheapening designs as:
Miniaturisation: This asks the questions are
large 3m deep pits necessary? Will a 1m
deep pit coupled with a reliable emptying service work just as
well?
Affordability to the poor is always important.
Are expensive concrete slabs absolutely necessary? Are there cheaper
alternatives?
Expandable: This enables households to build
latrines in small affordable sections.
House building processes in developing countries are
incremental i.e. the owner first saves to buy the land, then saves to pay for
the cement for the foundations, then for the bricks, etc. It is not all done
at once as in Northern countries, and house building is matched with the family
income flows, avoiding the need for banking services.
By using these principles the following is possible:
Table F.1: Components of a low-cost latrine
Component
|
Standard design
|
Low-cost option
|
Ultra-low-cost
option
|
Pit
|
2 m deep, 1 m
square, block lined
|
1 m deep, 60 cm
diameter, plastic drum lining
|
1 m deep, 60 cm
diameter, plastic drum lining
|
Slab
|
Rough cast, 8cm
thick, iron bar reinforced, fitted with concrete pedestal.
|
80 cm diameter x
5cm thick concrete dome slab with pedestal
|
80 cm diameter
wooden platform with squat hole
|
Ventilation pipe
|
100 mm diameter
plastic pipe
|
100 mm diameter
plastic pipe
|
None
|
Superstructure
|
Cement block with
galvanised tin door
|
Wooded frame
covered with sacking
|
Provided by owner
to a minimal level
|
Roof
|
Galvanised tin
|
Galvanised tin
|
Provided by owner
to a minimal level
|
Price
|
HT $2,500
(US$ 312)
|
HT$ 800 - 1,000
(U$ 100 - 125)
|
HT$ 200 - 300
(US$ 25 - 37.5)
|
The price of different items can be detailed below. Original
figures come from local
masons or are rough estimates; prices were refined during the
workshop and by working with a local GTIH engineer:
The process is made expandable by having the
components inter-changeable. A household may be able to afford only a wooden
slab in the beginning, but over time could afford to upgrade to a concrete slab
and vent pipe.
Assessing the willingness to pay for an unseen product and
service is a difficult pro- cess and at best only gives a feeling of demand.
When costs were discussed in a Focus
Table F.2: Detailed pricing of a low-cost latrine elements
Element \ Source
|
First estimates
|
Workshop
|
GTIH Engineer
|
HT$
|
US$
|
HT$
|
US$
|
HT$
|
US$
|
Essential items
|
1m pit digging
|
120
|
15
|
30
|
3.75
|
50
|
6.25
|
200 l plastic drum
|
100
|
12.5
|
100
|
12.5
|
50
|
6.25
|
4 blocks (bottom)
|
12
|
1.5
|
12
|
1.5
|
12
|
1.5
|
Concrete domed slab
|
200
|
25
|
120
|
15
|
150
|
18.75
|
Sub-total
|
432
|
40.5
|
262
|
32.75
|
262
|
32.75
|
Superstructure
|
Wood
|
|
|
|
|
35
|
4.37
|
Cloth
|
|
|
|
|
20
|
2.5
|
Tin roof
|
|
|
|
|
40
|
5
|
Sub-total
|
300
|
37.5
|
200
|
25
|
95
|
11.87
|
Extra
|
Ventilation pipe
|
50
|
6.25
|
40
|
5
|
45
|
5.65
|
Seat
|
100
|
12.5
|
60
|
7.5
|
100
|
12.5
|
Sub-total
|
150
|
18.75
|
100
|
12.5
|
145
|
18.15
|
Total
|
882
|
96.75
|
562
|
70.25
|
502
|
62.77
|
Group Discussion with women from Shada they gave the impression
that HT$1000
would be given consideration and HT$200 was defiantly affordable
and they «would hit
[their] heads on the ground to raise the money». Another
interesting aspect to the capi-
tal cost discussion was that the women did not know the cost of
the existing traditional latrine design, they just knew it was unaffordable.
The problem they say with a small
pit is paying for the emptying.
The issue of space was discussed by laying planks of wood on the
ground and asking
«If the latrine design was this big, would you have room for
one in your house?» Al- though space was often given as a constraint in
the survey, it would appear that a 1m
x 1m latrine design could be accommodated by the majority of
the group. The main issues were whether it could be placed inside the house
and the relationship with the landlord.
F.1.2 Developing effective pit emptying
services
The effectiveness of this process is dependent on whether the
customers pay sufficient funds to sustain the commercial viability of a pit
emptying service: Revenue from cus- tomers > emptying costs + profit. The
commercial viability of the emptying service is dependent upon Productivity
rate and dumping charges.
Productivity rate
Road conditions allowing easy access
· Percentage coverage and usage of latrines
· Number of pits requiring emptying per month
· Average distance from households to collection
point
· Average distance between customers
· Volume of sludge removed per visit
· Extraction equipment efficiency and transport
equipment efficiency
· Volume capable of being extracted per hour
· Speed and size of transport equipment in
kgs/km/hour
· Ability to access pits in narrow streets
· Capital costs an life expectancy of equipment
- Failure and breakdown rate
- Ease of equipment maintenance
- Operation and maintenance costs of equipment
- Equipment staffing requirements
- Fuel and lubricants usage
- Spare parts costs and availability
Dumping costs
· Distance from intermediate to final disposal
· Final dumping charges
· Running costs of bulk transfer vehicle (as above)
· Level of competition within city
· Public sector attitude and contribution to final
removal
This is a long list of variables and our knowledge of how they
apply to a place like Shada
is limited. It is possible to assume that if an emptying service
was established for the current latrine coverage it would not be viable as
there are simply not enough latrine pits
to empty. The development of the emptying service must therefore
go hand in hand with
the development and promotion of lower cost, smaller, latrines.
Any subsidy should be not given for the building of latrines, but instead used
as a buffer to cover the initial start
up losses and there after gradually reduced as the demand for the
emptying services increases and commercial viability is established.
Shada has the following disadvantages in the development of an
emptying service,
· Low percentage coverage and usage of latrines with no
pits currently in need of
emptying
· None of the current emptying equipment, (the Vacutug
or MAPET) will fit through
the narrow passageways of Shada
· Low willingness to pay for emptying services
expressed in FGD
· Local government unlikely to pay for final disposal
or transfer costs
Shada has the following advantages
· All the houses are relatively close to a main road
and therefore average distance from households to transfer points will be
low
· Apparent high demand for improved household
facilities
· Dissatisfaction with current excreta disposal
practices
F.1.3 Providing bulk transport services from the
transfer tank to the final disposal site
Jedco is the only company in Cap Haitien with the equipment or
capacity to suck waste out of a transfer tank and transport it to a final
disposal site. Their main customer is the UN who have a strong presence in the
city and require their septic tanks to be regularly emptied. There is no
competition and this allows Jedco to charge around US$250 per trip. Jedco are
interested in expanding their business, but whether they would be willing
to reduce their rates or work for an CBO is questionable.
The Ministry of Public Health and Population (MSPP) were once
donated a small vacuum tanker under a German funded project, but this fell into
disrepair when a vital spare part could not be obtained. They are now rotting
in the MSPP yard and could be relatively inexpensively adapted to provide a
towable transfer station.
F.1.4 Providing a site for safe, acceptable final
disposal
There is no sewage treatment works in Cap Haitien and dumping
waste in a mangrove swamp at the cities boundary seems to be an accepted
practice. This is far from satisfac- tory, but probably the least worse
alternative and certainly preferable to dumping waste
in the river next to the housing settlements. It is difficult
to predict at this stage, but the project could have problems gaining
permission to adopt a similar practice. Officials tend to feel more
comfortable denying permission for any changes which they feel may leave them
open to criticism in the future. Granting permission to dump what could be
large quantities of raw faecal waste in a ecologically sensitive wetland may
just regarded
as too risky.
F.2 Rough break even and financial viability
calculations
The initial calculations for the commercial viability of the
emptying operation were based on fees a family of 3 adults would pay per month
for using the public latrine. This amounted to approximately 90 Gdes (US$ 2.25)
per month. During the FGD it became apparent that this was considered too much
and the women said they had to compare
Income per trip
|
Willingness to pay
|
120 Gdes
|
Expenses per trip
|
Bayakou pay
|
25 Gdes
|
Barrow boy pay
|
12,5 Gdes
|
Equipment
|
2,5 Gdes
|
Dumping fee
|
?
|
Moving transfer station
|
15 Gdes
|
Total
|
55 Gdes
|
Balance per trip
|
65 Gdes
|
Expenses per day
|
530 Gdes
|
Minimum to break even
|
Trips
|
8.15
|
Bayakous
|
1.02
|
Latrines needed
|
367
|
the price with open defecation, not the public latrine fees,
as this is what they currently practised. It was difficult to assess the
willingness to pay for an emptying service as by this stage the group was
beginning to realise that we were discussing an NGO project who are known to
give everything for free. However, as a best guess, the following calculations
are based on a willingness to pay 120 Gdes (US$ 3.15) for emptying 100 l
of waste every 1.5 month, or 240 Gdes for emptying 200 l every 3
months:
Table F.3: Financial viability calculations
Capacities
|
Emptying every
|
1.5 months
|
Quantity to empty
|
100 litres
|
1 bayakou serves daily
|
8 latrines
|
Transfer station capacity
|
2,000 litres
|
Emptied every
|
2.5 days
|
Daily wages
|
Bayakou
|
200 Gdes
|
Barrow boy
|
100 Gdes
|
Staff
|
400 Gdes
|
Nightwatch
|
100 Gdes
|
Costs and maintenance
|
Moving transfer station
|
300 Gdes
|
Equipment maintenance
|
320 Gdes
|
Station maintenance
|
30 Gdes
|
If each latrine fills in 1.5 months, one Bayakou could serve 367
latrines with a profit
to the managing organisation of HT$ 3,300 (US$ 412) per month.
Shada has a population of around 20,000 comprising of 2,400
families. In theory this could be served by 10 Bayakou providing a profit for
the managing organisation of HT$33,000 per month. From this the organisation
would have to provide some form
of management and office space, but it is these types of
calculations that indicates the potential of «the fortune at the bottom of
the pyramid».
This calculation is based on an ideal situation and too many
assumptions are used which need to be further research and tested. Economies
of scale could bring down some costs just as easily as a willingness to only
pay 150 Gdes for emptying 200l could
make the entire process unprofitable. It does however give an
indication of the potential
of a sustainable form of excreta management in what would be
usually considered to be
a very difficult area.
F.3 Public Private Partnership (PPP)
Government has a role in protecting the public health of its
citizens. When visiting all of
the areas in Cap Haitien, particularly the high density areas, it
is clear that public health
is being compromised and raises the question what could and
should the government be doing for the residents of areas like Shada?
Mrs Guettie Noel, a Public Health Technician from the Ministry
of Public Health and Population stated that it was their job to empty the
latrine pits, but they found this impossible because they did not have the
equipment of the resources. The MSPP could present an argument that they do
not need a PPP if Oxfam simply donated a new vacuum tanker to their ministry.
An MSPP operated emptying service is likely to be unsustainable and only
partially benefit the poor, but refusal could result in the MSPP proving
difficult over refusing final disposal sites and possibly applying over-zealous
building regulations latrine design. The project needs to develop good
relationships with
the MSPP and continually point out that removing the excreta from
areas like Shada has
a significant impact on public health and the productivity of the
residents, and that it is
a duty that they are failing to perform.
If the MSPP could be persuaded to cover the cost of taking the
waste from the transfer station and for final disposal, the commercial
viability of the emptying service will be significantly easier to achieve.
There are a variety of organisational arrangements possible
for private sector latrine building, emptying and transfer services. Which is
most suitable would need further discussion, but an initial suggestion would be
to have one organisation overseeing the whole process and to manage the Bayakou
in providing the building and emptying ser- vices. The organisation would need
to be experienced in programme management, have
the capacity to keep accurate accounts and be able to monitor the
various processes. Oxfam's project partner, GTIH, could be ideal in this
role.
Rémi Kaupp
|