SEDIC Gallagher Estate 27 July 2011

1. PILOTING FRANCHISING O&M PARTNERSHIPS: CONNECTING UNRELATED CONCEPTS, TO CREATE SOMETHING INNOVATIVE

2. SEDICGallagher Estate27 July 2011 Kevin Wall (CSIR), Jay Bhagwan (Water Research Commission), Oliver Ive (Amanz'abantu Services)

7. Overview Studies by CSIR found that franchising of the operation and maintenance (O&M) of various elements of water services could greatly improve service. The concept was then further explored and developed, to the point that it could be implemented. Irish Aid agreed to fund a pilot programme in the Eastern Cape province.

8. The franchising partnership concept • A simple model based on the tried and tested business franchising format. • Formulated to improve infrastructure operations and maintenance by utilising small, locally based business entities who are in partnership with established companies which have the necessary expertise and resources. • All the day-to-day benefits of utilising small locally based service providers, with the added advantage of access to resource pool and expertise. • Other benefits include: quality assurance, proven and transparent procedures, and recourse to the franchisor if required.

9. FRANCHISOR FRANCHISEE MANAGEMENT ADMINISTRATION MARKETING PROCUREMENT OPERATIONAL SUPPORT QUALITY MANAGEMENT SAFETY, HEALTH ENVIRONMENT TRAINING

10. The authority / infrastructure owner • Has a choice to use in-house staff or outsourced services. • Often has many challenges, such as: • insufficient technical expertise, • logistical hurdles, • poorly equipped teams, • supply chain difficulties, etc... • Can through franchising partnerships access higher level expertise.

12. Project scope and requirements • Almost 6000 schools in the Eastern Cape Province, and the Department of Education requires: • improved maintenance of sanitation & water facilities • consistent achievement of acceptable standards • ongoing monitoring & reporting. • The Butterworth Educational District includes approximately 400 schools across 3 municipalities.

14. Selection and training Meet & interview prospective franchisees Practical training in the field Class of 2009

15. Training of prospective franchisees includes: • Correct use of on-site sanitation facilities and rural water systems • Pit emptying using on-site sanitation methods • Occupational Health & Safety • Environmental management practices • Solid waste handling and disposal • Health and hygiene education • Basic plumbing / rainwater harvesting • Pump operation and maintenance • Basic business management and administration

16. Scope of services by franchisee • Clean inside and outside of the ablution facilities • Undertake basic maintenance of facilities • Remove foreign material and dispose safely at designated solid waste site (solid waste management may be added to scope later) • Remove excess liquid, dispose liquids safely through irrigation • Educate SGB members on water & sanitation • Present to learners good health and hygiene practice • Report on activities and state of facilities to district managers

18. Getting to work Arrive at school Report to headmaster

19. Outside Cleaning around toilet facilities, including the removal of vegetation and rubble etc.

20. Inspect and report Inspect and report broken and damaged elements, and all safety hazards

21. Franchisee at work

22. Before and after

23. Health and hygiene awareness Explain to learners correct usage of toilets and good hygiene practices Hand washing and hand sanitizing practice

24. Irrigation of effluent Waste sludge and effluent from full pits are pumped, and irrigated in designated areas in root zone.

25. "Schools need safe water and separate, clean sanitation facilities. …. Health education curricula are undermined if children are unable to practice what they learn." UNICEF

26. Emerging issues In addition to servicing the sanitation facilities, there is a need to address water supply and solid waste disposal. DoE procedures and systems need to be refined to accommodate the budgeting, processing and payment activities. Trainee franchisees need to develop improved understanding of the requirements of being an independent business owner/manager.

27. Developing new clients Servicing household pit latrines in Centane (near Butterworth)

28. Some lessons learned Potential franchisees must be chosen on a broad range of criteria, including work ethic, business acumen and leadership skills. Franchise agreements must include provision for ongoing performance monitoring and the ability to promptly replace non-performing franchisees. Rates and payment schedules must be based on measurable deliverables and standardised pricing, and be simple to administer.

29. The way forward Based on success of the first year of the pilot programme, the DoE wishes to roll out to a further three educational districts. Potential franchisors will be requested to submit Expressions of Interest, in order that the DoE can evaluate them. Prospective Watsan franchisees, each in partnership with a franchisor, will tender to be appointed for 3-year O&M contracts for designated areas.

32. jayb@wrc.org.za oive@aserve.co.za kwall@csir.co.za

33. Eastern Cape Department of Education Water Research Commission (WRC) MOU Service delivery agreement Council for Scientific and Industrial Research (CSIR) (Technical Assistance) Employers Implementing Agent (IA) Licensing agreement O&M contracts Franchisee 1 (Franchisor) Franchisee 2 Franchise agreements Franchisee 3