With the aim of contributing to the strengthening of the management capacity of the Autonomous Decentralized Municipal Governments and their Companies, this program consists of carrying out interventions in four areas: administrative(management model, human talent, processes, assets); financial (financial sustainability, collection efficiency, past due portfolio, tariff schedules); commercial (cadastre, micro-measurement, communication and dissemination); and operational (unaccounted for water index (IANC), O&M manuals, operation of projects financed by the BDE), which allow the technical and financial sustainability of drinking water and sanitation services, through the implementation of technical assistance processes from of the Development Bank of Ecuador B.P.

When implementing Technical Assistance, the following actions are carried out:

• Survey of diagnoses of services in the administrative, financial, commercial and operational areas.
• Evaluation of the Service Management component in the drinking water and sanitation investment projects.
• Elaboration of Institutional Strengthening Plans (PFI) for the management of services (objectives, goals, activities, resources, responsible and deadlines).
• Advice on activities formulated in the PFI.
• Advice for the development and fulfillment of conditions of credit disbursements.
• Advice on the application of the rate simulator.
• Monitoring and evaluation of PFIs.

For this, the following tools have been developed:

• Drinking Water and Sewerage Services Management Toolbox.
• Drinking water and sewerage rate simulator (according to ARCA regulation) https://bde.fin.ec/wp-content/uploads/2019/07/Plantilla-administrador.xlsx
• Virtual courses on the management of drinking water and sewerage services.
• Technical Assistance Agreement.
• Formats for the diagnosis and evaluation of service management.
• Drinking Water and Sewerage Tariff Ordinance Model.

The objective of this program is to contribute to the fulfillment of the objectives of articulating the financial and institutional strengthening of the clients of the Development Bank of Ecuador B.P., by developing the potential of tax revenues for the full exercise of financial autonomy.

The products currently offered by the BDE within this program are:

• Urban and Rural Property Tax: Aimed at all Autonomous Decentralized Municipal Governments, designed in order to contribute to the increase of municipal tax revenues. It promotes a progressive rate scheme based on the entity's property registry. For this, AT interventions are carried out in the following areas:
  • Diagnostic survey of the entity.
  • Simulation of progressive scenarios based on the reality of your canton.
  • Rising of an action and follow-up plan that must be fulfilled in the established time.
  • Ordinance type.

• Special Contribution for CEM Improvements: Aimed at all Autonomous Decentralized Municipal and Provincial Governments, designed with the purpose of contributing to the increase of their own income through the total or partial recovery of the investment in works subject to recovery of the contribution. For this, technical assistance interventions are carried out in the following areas:
  • Diagnostic survey of the entity.
  • Preparation of the inventory file of GAD works subject to recovery of the contribution.
  • Accompaniment in the preparation of the projection of emission values by taxpayers based on the entity's cadastral base.
  • Rising of an action and follow-up plan that must be fulfilled in the established time.
  • Ordinance type.
• Special Contribution for Road CEM Improvement: Aimed at Provincial GADs, designed in order to boost their own income in order to strengthen the management of the Contribution. For this, technical assistance interventions are carried out in the following areas:
  • Diagnostic survey of the entity.
  • Simulation of tariff scenarios under 3 schemes.
  • Rising of an action and follow-up plan that must be fulfilled in the established time.
  • Ordinance type.
• Comprehensive Collection Strategy: Aimed at all Autonomous Decentralized Municipal and Provincial Governments, as well as their public companies to improve and strengthen their tax management that allows maximizing voluntary payment and making non-performing loans effective. For this, technical assistance interventions are carried out in the following areas:
  • Diagnosis of the entity.
  • Methodology for recovering past due portfolio.
  • Tools for the collection of issued titles.
  • Resolution formats and credit titles.

Aimed at Autonomous Decentralized Municipal Governments with the objective of promoting the development of cadastral updating projects financed by the BDE, the areas intervened for the Technical Assistance process are:

• Support and assistance in the approval process of the Base Cartography in the IGM
• Changes made in the project: modification of TDR, changes in values and technical specifications of equipment
• Assistance in contractual matters
• Work methodologies and product review
• Implementation of cadastral systems
• Strengthening of technical capacities (contract administrators, municipality staff, consultants, auditors)
• Follow-up visits and permanent accompaniment to identify progress in the completion of the project consultancies.
• Support in the development of action plans that allow establishing goals, deadlines, managers and indicators of compliance with said consultancies.

The Technical Assistance Cooperation Program is executed thanks to a grant of € 10,000,000 from the European Union through the French Development Agency (AFD), with the aim of strengthening the management capacities of the Decentralized Autonomous Governments ( GADM) and / or its beneficiary drinking water and sanitation companies (EP).

OBJECTIVES

LAIF non-reimbursable aid is intended to finance the following components:

1. Pre-investment studies to contribute to the identification and good design of future BDE investment programs (Component 2).
2. Technical assistance (TA) to strengthen the capacities of the Decentralized Autonomous Governments and / or their public companies that are beneficiaries of the investment program financed by the AFD and the BDE. This line also includes the financing of the equipment necessary for the permanent management of the programs as an accompaniment to technical assistance (Component 3.1).
3. LAIF Program Management (Component 3.2).
4. Communication and Visibility Management Actions (Component 3.3)
5. Program Evaluation and Audit (Component 3.4).

Global Objectives (Goal): 

1. Achieve efficient and sustainable management, improve the economic and financial health of the beneficiary municipalities and / or their companies.
2. Achieve greater citizen satisfaction with services.

Specific Objectives (Purpose): 

1. Finance pre-investment studies in more fragile municipalities.
2. Achieve good practices in the management of water and sanitation programs and services.
3. Innovate management through a model of commonwealth between municipalities and communities.

The Technical Assistance Component seeks to provide complementary support to the PROSANEAMIENTO-AFD program, guaranteeing the good management of the investment to the beneficiary entities of the Program: Ambato, Antonio Ante, Cayambe, Guano, Guaranda, Ibarra, Lago Agrio, Latacunga, Otavalo, Pedro Moncayo, Tulcán.

In the Preinvestment component, potential projects to be financed have been identified and technical visits have been made to collect information on drinking water and sanitation in the areas of jurisdiction of the coast, Austro, Manabí and Sur Zonal Branches, with which the possible portfolio of projects to be financed is available.

Overall, the Program is ready for the execution of technical assistance projects to strengthen the management of drinking water and sewerage services and approximately Pre-investment projects in the respective beneficiary GADMs, which will be executed between 2020 and 2021.

Its objective is to contribute to the institutional strengthening and generation of capacities of the authorities and technicians of the GAD, so that they improve their management in the formulation, implementation and sustainability of urban equipment projects.

The intervention of the Technical Assistance within this type of projects revolves around advice and support in the strengthening and design of the business plan and their management model both in the pre-investment phase and during the investment.