Situational Assessment Consultant

The Indonesia Urban Water Sanitation and Hygiene (IUWASH) project is a sixty-month program funded by the United States Agency for International Development (USAID) and implemented under the leadership of DAI. IUWASH works with government, the private sector, NGOs, community groups and other stakeholders to improve access to safe water supply and sanitation in Indonesia’s urban areas. The overall goal of IUWASH is to assist the Government of Indonesia (GOI) in achieving its safe water and sanitation Millennium Development Goal (MDG) targets by expanding access to these services. The expected results to be achieved are: (a) Two million people in urban areas gain access to improved water supply; (b) 200,000 people in urban areas gain access to improved sanitation facilities; and (c) the per unit water cost paid by the poor in targeted areas decreases by at least 20%. To achieve the above, technical assistance is divided in three main technical components: 1. Mobilizing demand for water supply and sanitation service delivery; 2. Improving and expanding capacity for water and sanitation service delivery; and 3. Strengthening policy and the financial enabling environment for improved water supply and sanitation service delivery. *REQUEST FOR EXPRESSION OF INTEREST* The objective of this activity is to provide IUWASH with an enhanced understanding of the current application(s) of and broader potential for the use of microfinance as a means to expand access to sanitation. More specifically, the assessment will describe to what extent microfinance is currently being utilized in the sanitation sector; the types of household and community-based infrastructure that may be appropriate for microcredit, both in terms of potential demand and loan size; and the level of interest of institutional stakeholders, such as centralized sewerage providers, microfinance institutions, and NGOs. Ultimately, the results of the assessment will inform the Project’s approach to furthering the use of microfinance in the sanitation sector. *SCOPE OF WORK* The detailed tasks envisioned for this Scope of Work are as follows: *Task .1: Planning and Preparation* · Prepare detailed work-plan covering the complete duration of the consultancy · Hold kick-off meeting with IUWASH team as well as with Bank Andara * Task 2: Review of Current Experience with Microfinance and Sanitation* •Compile an initial list of MFIs, cooperatives, NGOs, and other actors in the microfinance sector that have experience utilizing microcredit for the improvement of household sanitation facilities. Note that the uses of the small loans may vary, including (but not limited to) centralized sewerage connections, communal system connections, communal latrines, individual septic tanks, or individual toilets/bathrooms. Also, the form of financing need not be on a “commercial” basis, but could also come in the form of, for example, subsided revolving funds, community-based lending schemes, etc; •Conduct face-to-face or phone interviews with the above actors, detailing the nature of their approach and market penetration; •Based on the interview results, where possible carry out field visits to more fully understand each program and the potential applicability to IUWASH’s objectives; •Compile final profiles of at least 4 case studies where microfinance has been used to improve access to sanitation. One of the referenced case studies should include the WSP experience in Total Sanitation Marketing in East Java; *Task 3: Household Focus Group Discussions in Two Targeted Regions* •In consultation with the Component 1 Team Leader, Component 3 Team Leader, and Microfinance Specialist, develop the format and content questions for a series of focus group discussions (FGDs) in two regions. The aim of the FGDs will be to better understand the level of interest of a sample of households in the use of small loans to improve their sanitation facilities, including the types of improvements households would like to finance, the amount of funding required to make those improvements, and the preferred terms of the loan. •In consultation with the IUWASH regional teams, select 2-3 communities in each of the targeted regions and conduct one FGD in each community, for a total of 4-6 FGDs. •Document results of FGDs. *Task 4: Assessment of MFI Interest in Targeted Regions* •In consultation with Bank Andara, enumerate possible MFIs, cooperative, and NGO partners in the targeted regions; •Using the above “long-list” of potential partners, conduct institutional interviews to gauge the interest of respective organizations, including the extent to which the organizations have existing financial products that may be adapted to the sanitation sector, the level of risk tolerance of the organizations, and the requirements of each organization in order to launch a new product for household sanitation improvements; •Based on the responses of the respective organizations, develop a short-list of potential IUWASH partners. *Task 5: Recommendations and Reporting* · Using the broader case studies combined with the more targeted household FGDs and MFI interviews, recommend several options/approaches to the use of microfinance to expand access to sanitation for the consideration of IUWASH and Bank Andara. Options should be as specific as possible, including plausible partners and locations, the types of end-user financing required, the extent to which capacity building and/or grant funds may be needed, and likely implementation timelines. · Prepare final report for IUWASH in accordance with outline agreed by the Microfinance Specialist. *KEY QUALIFICATON* 1. Education Bachelor Background, minimum S1 in any major 2. Proven experience in establish research/Study expertise in the area of Microfinance for Sanitation Sector. 3. Strong experience in program documentation of micro finance business activities or Micro Finance Institute (MFI), market research study in micro business or business development in field activities. 4. Experience working with Community Based Organizations in research context. The selected Consultant or Consultant Group will be engaged for a maximum of 50 days between the periods of August 2012 to December 2012, with the target date completion by December 31, 2012. Travel cost outside Jakarta will be paid directly by IUWASH. An Expression of Interest letter (EoL), together with the applicant's CV or organizational profile must be sent by June 25, 2012 to IUWASH.recruitment@gmail.com below at 17:00 hrs. Jakarta Western Indonesia Time. Based on the initial set of EoLs, applicants will formally invited to complete their application through the submission of a concept note and indicative work plan. Please indicate position that you are applying for in the title of the email and only short list applicants will be notified.