Final Evaluation Report: The Commercialization of Afghanistan Water and Sanitation Activity (CAWSA) Project

The project was awarded to the International City Managers Association (ICMA) under USAID Agreement No. 306-A-00-09-00501-00, with an initial agreement for three years at a cost of $8.5 million. USAID provided additional funding, totaling $14.2 million, which extended the award to May 2014 to assist the Kandahar Service Business Unit (SBU), the Zaranj Water Supply Department (WSD), the Lashkar Gah WSD, and the Mehtarlam WSD. The primary purpose of the project was to enhance both the technical and commercial operations at the Afghanistan Urban Water Supply and Sewerage Corporation (AUWSSC) SBUs/WSDs. CAWSA's design included three elements: (i) technical assistance (classroom and on-the-job training) paired with capital investments and other in-kind support; (ii) embedded staff and interns hired to work at the utilities as normal staff; and (iii) performance-based incentive payments for SBU/WSD staff to achieve targeted performance indicators. The first phase of CAWSA closed in May 2011, while the second phase began in June 2011 and concluded in August 2014. During this period, CAWSA provided limited capacity building support to the AUWSSC Headquarters based in Kabul. The project aimed to establish a cost recovery system for operations that would support long-term infrastructure. CAWSA's technical assistance focused on improving the technical and commercial operations of the SBUs/WSDs. This included training for utility staff, development of business plans, and implementation of performance-based incentive systems. The project also provided capital investments and other in-kind support to the SBUs/WSDs. The project's commercial operations focused on establishing a cost recovery system for operations. This included the development of tariffs and the implementation of a billing system. CAWSA also worked with the SBUs/WSDs to develop a system for tracking and monitoring water supply and sanitation services. CAWSA's performance-based incentive system was designed to motivate SBU/WSD staff to achieve targeted performance indicators. The system provided bonuses to staff based on their performance in areas such as water supply and sanitation services, customer satisfaction, and financial management. The project's impact was evaluated through a midterm evaluation, which was conducted in August 2014. The evaluation found that CAWSA had made significant progress in establishing a viable business model for water service delivery in Afghanistan. The project had improved the technical and commercial operations of the SBUs/WSDs, and had established a cost recovery system for operations. The evaluation also found that CAWSA had made significant progress in improving the water supply and sanitation services in the target areas. The project had increased the number of households with access to improved water sources, and had improved the quality of water supply and sanitation services. However, the evaluation also identified some challenges and limitations of the project. These included the need for further capacity building support for the AUWSSC Headquarters, and the need for more effective monitoring and evaluation systems to track the project's progress and impact. Overall, the Commercialization of Afghanistan Water and Sanitation Activity (CAWSA) project was a significant effort to establish a viable business model for water service delivery in Afghanistan. The project made significant progress in improving the technical and commercial operations of the SBUs/WSDs, and in establishing a cost recovery system for operations. However, the project also faced some challenges and limitations, and further support and capacity building were needed to ensure the sustainability of the project's impact.