a report on consumer preference and supply chain analysis ... ·...

SSH4A is supported by the Australian Government and DGIS.

A Report on Consumer Preference and Supply

Chain Analysis for Sanitation

March 2015

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Netherlands

Development

Organization

i | P a g e Consumers Preference and Supply Chain Study for Sanitation

A report on Consumer Preference and Supply Chain Analysis

for Sanitation (Dolpa, Jumla, Kalikot, Mahottari, Rukum, Rolpa, Salyan and

Sarlahi)

SNV Nepal Bakhundole, Lalitpur, Nepal

[email protected]

Submitted by: Surya Binod Pokharel Deependra Kaji Thapa

Research Center for Integrated Development Nepal

Gausala, Kathmandu [email protected]

ii | P a g e Consumers Preference and Supply Chain Study for Sanitation

Acknowledgement RECID Nepal is grateful to SNV Nepal for offering the opportunity of carrying out the Consumer Preference and Supply Chain Analysis study. Special thanks are due to Ms. Nadira Khawaja (WASH Sector Leader) and Mr. Kailash Sharma (Market Development Advisor) and Mr. Anup Regmi (Project Leader) from SNV Nepal for their continuous support and guidance in the finalisation of study methodology, field plans as well as finalisation of the study report.

RECID Nepal would like to thank a wide range of individuals who supported this study. We are grateful to the district advisors of SNV Nepal for supporting the field work in the districts. Special gratitude goes to all the participants and respondents including the staff and representatives of WSSDO/RMSO and the supply chain actors (ring producers, wholesalers, retailers, masons) for their patience, cooperation and valuable time in sharing their insights and experiences. We express our deep appreciation to all the supervisors and enumerators for their hard work and timely completion of field levels.

Surya Binod Pokharel

Deependra Kaji Thapa

Research Center for Integrated Development (RECID) Nepal

Kathmandu, Nepal

March 2015

iii | P a g e Consumers Preference and Supply Chain Study for Sanitation

Table of Contents

Acknowledgement ............................................................................................. ii

Table of Contents .............................................................................................. iii

List of Tables and Figures .................................................................................. vi

List of Abbreviations ........................................................................................ vii

Executive Summary ......................................................................................... viii

Chapter I. Introduction and Objectives ............................................................. 11

1.1 Background .................................................................................................................. 11

1.2 Supply Chain and Consumer Preferences in Sanitation ................................................. 11

1.3 Objectives of the Study ................................................................................................ 12

1.4 Study Area and Methodology ....................................................................................... 12

1.4.1 Study Area ................................................................................................................... 12

1.4.2 Study Methodology ..................................................................................................... 12

1.5 Structure of the Report ................................................................................................ 14

Chapter II. Findings of the Study ....................................................................... 15

2.1 Findings of Consumer Preference Study ....................................................................... 15

2.1.1 General Demographic and Socio-‐Economic Status of the Study Districts ................... 15

2.1.2 Sanitation Status of Study Districts ............................................................................. 16

2.1.3 Current Defecation Practice among Latrine Non-‐users .............................................. 17

2.1.4 Reasons for Having a Latrine ....................................................................................... 17

2.1.5 Reasons for Not Having a Latrine ................................................................................ 18

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2.1.6 Convenience of Toilet Use by Household Members ................................................... 19

2.1.7 Hand-‐washing Practice ................................................................................................ 19

2.1.8 Types of Latrine Construction Materials ..................................................................... 20

2.1.9 Purchasing Practices .................................................................................................... 21

2.1.10 Transportation of Materials for Latrine Construction ............................................... 22

2.1.11 Construction Period .................................................................................................. 23

2.1.12 Construction Practices and Services .......................................................................... 23

2.1.13 Use and Maintenance of Latrines ............................................................................. 24

2.1.14 Possible Solutions to Challenges in Construction and Maintenance of Latrines ....... 25

2.1.15 Willingness to Pay and Financing .............................................................................. 26

2.2 Findings of Supply Chain Study ..................................................................................... 27

2.2.1 Type of Private Sector Actors Engaged in Sanitation .................................................. 27

2.2.2 Analysis of Current Sanitation Supply Chains .............................................................. 28

2.2.3 Wholesalers/Retailers ................................................................................................. 32

2.2.4 Ring Producers ............................................................................................................ 38

2.2.5 Masons ........................................................................................................................ 40

Chapter III. Discussion, Conclusion and Recommendations ............................... 44

3.1 Discussion of the Major Findings of the Consumer Preference Study ............................ 44

3.2 Discussion of the Findings Related to Supply Chain Analysis ......................................... 45

3.2.1 Products ...................................................................................................................... 45

3.2.2 Pricing .......................................................................................................................... 46

3.2.3 Place ............................................................................................................................ 46

3.2.4 Promotion ................................................................................................................... 46

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3.2.5 Policy ........................................................................................................................... 47

3.2.6 Partnership .................................................................................................................. 47

3.3 Role of Local Government and Line Agencies in Supply Chain ....................................... 47

3.4 Overall Analysis ........................................................................................................... 48

3.4.1 Knowledge Challenge .................................................................................................. 48

3.4.2 Technology Challenge ................................................................................................. 49

3.4.3 Affordability Challenge ................................................................................................ 49

3.4.4 Outreach and Fragmentation Challenge ..................................................................... 50

3.5 Conclusion and Recommendations .............................................................................. 50

3.5.1 Conclusion ................................................................................................................... 50

3.5.2 Recommendations ...................................................................................................... 51

References ....................................................................................................... 59

Annexes ........................................................................................................... 60

Annex I. Tools used for the Study ....................................................................................... 60

1. FGD guideline with community people .......................................................................... 60

2. Interview guideline for Supply chain (business-‐importer, wholesaler, retailer) .............. 60

3. Interview guideline for mason ...................................................................................... 60

4. Interview guideline for ring producer ............................................................................. 60

5. Checklist for financial institutions/I-‐NGOs ...................................................................... 60

6. Checklist for estimating latrine cost ............................................................................... 60

Annex II. Supply chain mapping of study districts .............................................................. 61

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List of Tables and Figures

Table 1. Wealth quintile by districts (Source: Data from baseline survey, July 2014). ................ 16

Table 2. Sanitation Coverage of Study Districts (Source: Data from baseline survey, July 2014). 17

Table 3. Reasons (motivation) for toilet adoption and non-‐adoption. ........................................ 19

Table 4. Construction materials used for latrine construction. ................................................... 20

Table 5. Average toilet construction cost (NPR) as per consumer responses .............................. 22

Table 6. Problems in toilet construction and use. ........................................................................ 25

Table 7. Private Sector Actors Engaged in Sanitation Businesses or Related Supply Chains in the

Districts ........................................................................................................................................ 27

Table 8. Sanitary and Construction Materials Cost ...................................................................... 33

Table 9. Sanitation Hardware Transportation Cost ...................................................................... 35

Table 10. The Annual Interest Rate of Bank and Service Charge ................................................. 37

Table 11. Issues Related to Technology, Cost and Supply Chain .................................................. 42

Table 12. Proposed Activities under each Recommendations ..................................................... 56

Figure 1. Map of Nepal showing study districts. .......................................................................... 13

Figure 2. Land ownership by district (Source: Data from baseline survey, July 2014). ................ 16

Figure 3. Sanitation Hardware Supply Chain in the Terai ............................................................. 30

Figure 4. Sanitation Hardware and Supply Chain in the Hills and Mountains .............................. 31

vii | P a g e Consumers Preference and Supply Chain Study for Sanitation

List of Abbreviations BCC Behaviour Change Communication CAC Community Awareness Centre CBOs Community Based Organisations CBS Central Bureau of Statistics CLTS Community Led Total Sanitation CSOs Civil Society Organizations DDC District Development Committee DPHO District Public Health Office DWASHCC District WASH Coordination Committee FCHV Female Community Health Volunteer FGDs Focus Group Discussions FNCCI Federation of National Chamber of Commerce and Industries GoN Government of Nepal I/NGOs International / Non-Government Organizations KAP Knowledge, Attitude and Practice KID Key Informant Discussion LCBs Local Capacity Builders LGCDP Local Governance and Community Development Programme LRPs Local Resource Persons NGOs Non-Government Organizations NSHMP National Sanitation and Hygiene Master Plan ODF Open Defecation Free PAF Poverty Alleviation Fund QIS Qualitative Information System RECID/N Research Centre for Integrated Development Nepal RMSO Regional Monitoring and Supervision Office SNV Netherlands Development Organization SSH4A Sustainable Sanitation and Hygiene for All VDC Village Development Committee VSLA Village Saving and Loan Association WASH Water, Sanitation and Hygiene VWASHCC Village WASH Coordination Committee WCF Ward Citizen Forum WSSDO Water Supply and Sanitation Divisional Office

viii | P a g e Consumers Preference and Supply Chain Study for Sanitation

Executive Summary Objective and Methodology

The demand and supply of sanitation was assessed in eight districts of Nepal representing the three different

ecological zones. The districts were Kalikot, Jumla and Dolpa in the mountain eco-zone; Rukum, Rolpa, and

Salyan in the hill eco-zone; and Mahottari and Sarlahi in the Terai eco-zone. Consumers as well as supply

chain actors were interviewed to generate the findings.

To understand their needs, preferences and desires including knowledge, attitude and practices related to

sanitation, community people representing both latrine users and non-users were surveyed. Moreover,

different supply chain actors such as input suppliers, wholesalers, retailers, ring producers and masons were

interviewed to investigate the issues related to supply chain and their relationship with the consumers.

Focus group discussions were carried out among consumers while key-informant interviews were carried out

among supply chain actors. Furthermore, secondary data analysis was performed that included findings from

a baseline survey conducted in July 2014 for VDCs targeted under SNV’s Sustainable Sanitation and Hygiene

for All (SSH4A) programme along with previously conducted research within and outside the nation.

Findings from Consumer Preference Study

Data taken from a baseline survey of programme VDCS in July 2014 showed that almost 42.8 percent

households in the targeted VDCs of the programme districts still practice open defecation. The Terai districts

had more than 95 percent households practicing open defecation. Among those who had a latrine, the

majority had a pour-flush (water seal) latrine. The major type of pit for collecting human excreta included

single off-set pit followed by direct pit. Latrine non-users in the hills and mountains defecated in nearby

forest while households in the Terai districts used agricultural lands, river banks and road sides.

The community people used stone, wood, bamboo, mud, sand, gravel, thatch etc. as local materials and

cement, pan, pipe, iron rod and GI sheet as non-local materials. People in the Terai mostly used bricks,

sand, cement and cement rings for latrine construction while those in the hills and mountains mostly used

stones and mud.

Sanitation, health, safety, privacy, prestige as well as pressure by local authorities and ODF movement were

the major reasons behind latrine construction. The major reasons for not having a latrine in the hills and

mountains included illiteracy, ignorance, poverty, poor accessibility of latrine construction materials and

skilled masons for latrine construction. In case of the Terai districts, other reasons cited for not using a

latrine were expensive and inadequate land for latrine construction as well as the age-old tradition of open

defecation.

There were several issues related to maintenance of latrines as well. People in the hills and mountains

mostly faced difficulties in latrine maintenance because of a lack of skilled masons, unavailability of market

in the proximity to buy maintenance materials, inadequate water, etc.

People mostly constructed latrines after major festivals like Dashain, Tihar, and Chhaith and also during

major ceremonies such as marriages of their sons and daughters. The people in the Terai mostly bought

latrine construction materials from district and sub-district level markets as well as highway shops while the

ix | P a g e Consumers Preference and Supply Chain Study for Sanitation

people in the hills and mountains had to walk a long distance (mostly up to the headquarter of a district) to

buy construction materials. As a result, the total construction cost of latrines was found to be relatively

higher in the hills and mountains.

Findings from Supply Chain Study

The supply chain actors such as wholesalers and retailers mostly resided in market areas such as district

headquarters and business hubs. Latrine construction materials sold by wholesalers and retailers were

mostly pans, pipes, cement, iron rods, titles and GI Sheets, etc. In addition, they also sold cleansing

materials, pipe fittings and marble. The proportion of money they earned from selling latrine construction

materials ranged from 5 - 20 percent. The majority of them had experienced a rise in their sales over the

last few years. The major reasons they gave for such an increase were increasing awareness among people,

involvement of private sector and NGOs in latrine construction advocacy and support, along with increased

population and urbanization. Masons were mostly employed to construct latrines; family members whose

latrine was under construction as well as their neighbours assisted masons in doing so.

Those who owned latrines were mostly middle-class and rich people, and the quality of latrine they owned

depended on their economic status as the cost of a toilet ranged from as low as NPR 50001 (for simple pit

latrine) to NPR 100,000 (for a modern aesthetically pleasing toilet with many facilities).

The supply chain actors mostly got their customers through personal contacts. In many cases,

wholesalers/retailers assisted their clients in finding masons and vice versa. The buying and selling mostly

occurred in cash.

Wholesalers and retailers as well as ring producers took loans to run their business whereas masons did not

take any loans to run their business. Masons were less certain about the improvement of their business in

the future. All the actors however hoped that their business would improve provided that the awareness and

income of people was raised.

Recommendations

Based on the findings of the study, the following recommendations are made:

1. Product and Service Options

• Develop different latrine options (affordable, technically simple and viable)

• Enhance mason capacity and skills

• Support upgrading of existing facilities for safe use by all

2. Explore Viable Options for Strengthening Sanitation Supply Chain

• Increase capacity of existing supply chain actors for sanitation business expansion

• Develop concrete ring producer for complete sanitation solution

• Link cooperative for supplying sanitation materials

• Engage women in sanitation business

• Develop existing entrepreneurs for sanitation business at the local level

1 1 US $ equivalent 100 NPR (March 2015)

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3. Link Cooperatives for Supplying Sanitation Materials Sales, Promotion and Marketing

• Target seasonal sales opportunity

• Promote product display of latrine options

• Develop motivating communication tools

4. Engaging Stakeholders

• Link sanitation programme with other different programmes in the districts ( e.g. Local Government

Community Development program, Poverty Alleviation Fund Program and so on) so far applicable

and possible

• Develop linkages with financial institutions at the local level (cooperative, microfinance, etc.)

• Mainstream the private sector in ODF campaign

• Place sanitation agenda in the VDC/DDC planning process

• Engage media in the sanitation supply chain

Chapter I. Introduction and Objectives

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Chapter I . Introduction and Objectives

1.1 Background

Access to sanitation is essential for human well-being, dignity and economic development. SNV Nepal has

been implementing its Sustainable Sanitation and Hygiene for All (SSH4A) programme since 2010. The

programme has been structured into four key components: sanitation demand creation, supply chain

strengthening, behaviour change communication (BCC) and WASH governance. With the support of the

DFAT-funded Civil Society WASH Fund, the programme is being implemented for a period of four years

(2014 – 2018) in eight districts of Nepal (Sarlahi and Mahottari in the Central Development Region; Salyan,

Rukum, Rolpa, Kalikot, Jumla and Dolpa in the Mid-Western Development Region) with the aim of increasing

access to effective, affordable and sustainable sanitation in rural communities, leading to improved health

and its associated economic and social benefits. Supply chain strengthening, one of the four components of

the programme, aims to increase access to affordable and acceptable sanitation technologies as well as

improve availability and outreach of sanitation services in the target districts.

1.2 Supply Chain and Consumer Preferences in Sanitation

In Nepal, innovations in sanitation demand creation such as Community Led Total Sanitation are providing

an unprecedented opportunity to motivate rural people to construct and use toilets. Evidence shows,

however, that it is difficult to translate the motivation into practice unless a number of key supporting

conditions are met. One of these conditions is access to affordable and appropriate sanitation hardware and

services. Market-based sanitation solutions have the most potential for reaching scale and sustainability.

However, rural sanitation markets are often poorly developed and outreach is limited. Particular attention is

required to address the needs and preferences of different consumer segments, most notably special needs

groups, households living in poverty, ethnic minorities and low caste groups, and people with a disability.

Supply chain is a term used for a system of organisations, people, technology, activities, information and

resources involved in moving a product or service from a supplier to a customer. Supply chain activities

transform natural resources, raw materials or other components into products and services that are

delivered to end customers. The underlying objective of all supply chains is to deliver a successful product or

service at an acceptable profit (Oyo, 2002). In sanitation, major actors in the supply chain are

importers/wholesalers, retailers, concrete product producers as well as masons (IDE, 2007b).

In Nepal, UN-Habitat conducted a supply chain study in its programme districts in 2013 in the hill and Terai

areas; these districts have however different social characteristics from the SSH4A programme area. iDE

also conducted a study on four of its Terai districts2. District specific mapping of supply chain actors and

their interactions and a better understanding of consumer needs is however required for the SSH4A

programme area to be able develop strategies for strengthening the supply chains in the target districts.

2 The studies are: Sanitation Marketing and Supply chain Development Strategies of GSF Programme Areas , 2013, UN Habitat Nepal and Research Deep Dive Report, 2012, Sanitation Marketing Initiatives/ iDE Nepal,



There is also an information gap on how demand for sanitation hardware and services develops over the

longer-term, and which factors are most important in determining whether a sustainable market for private

sector actors emerges (SNV, 2012b). Sanitation supply chain analysis provides stakeholders with a deeper

understanding of the rural sanitation market in their area, both in terms of constraints as well as

opportunities for improvement.

1.3 Objectives of the Study

The overall objective of the study was to systematically investigate supply and demand for sanitation

products and services across the programme districts. Based on the analyses, concrete and practical options

for interventions that could support improved, market-based access to sanitation products and services to

households are recommended.

Specific objectives of the study were:

1. To conduct detailed analyses of sanitation needs and preferences of different consumer segments.

2. To analyse existing sanitation technologies and their appropriateness based on findings of consumer

preferences for the different groups of consumers including disabled and elderly people.

3. To carry out an in-depth study of sanitation products and service delivery processes in the supply

chain.

4. To map the supply chain actors.

5. To recommend intervention modalities for increasing access to sanitation products and services to

consumers.

6. To identify the role of local government and line agencies in strengthening the supply chain.

1.4 Study Area and Methodology

1.4.1 Study Area The study as a whole looked at the eight districts of Nepal where the SSH4A programme is being

implemented with the support of the CS-WASH Fund (Figure 1). The districts were Sarlahi and Mahottari in

the Central Development Region and Salyan, Rukum, Rolpa, Kalikot, Jumla and Dolpa in the Mid-Western

Development Region. The districts fall in all three main ecological zones of the country with Sarlahi and

Mahottari districts being in the Terai (southern flat lands) eco-zone; Rukum, Rolpa and Salyan districts being

in the hill eco-zone; and Kalikot, Jumla and Dolpa districts being in the mountain eco-zone.

1.4.2 Study Methodology

The study methodology consisted of a literature review and secondary data collection as well as primary

data collection and analyses of consumer preferences and supply chains. The primary assessment methods

consisted of qualitative methods using focus group discussions (FGD), semi-structured interviews and

observation. These were conducted in November and December 2014.



Figure 1. Map of Nepal showing study districts.

Literature review and secondary data collection

The main aim of reviewing available literature was to gain a broad understanding of the current sanitation

situation in the programme districts, including progress and key challenges related to sanitation market

development, pro-poor strategies, approaches to improving sanitation coverage and hygiene behaviour

change, and policy and institutional issues. To this end, the study team reviewed related documents

(secondary information) from different sources and concerned authorities. Data from a baseline survey

conducted in the target communities (117 programme VDCs) of the eight programme districts in July 2014

were also considered. The baseline was carried out in 2,979 sampled households in 47 sampled VDCs from

8 districts. This data, although not sampled from the whole district, gave an idea as to the situation of

sanitation in the programme area. In addition, findings from the Consumer Preference and Supply Chain

Analysis study conducted in seven separate districts under the DFID-funded SSH4A-Results Programme

were used as a basis for this study (February 2015)3.

Data collection for consumer preference study

Sampling for the consumer preference study was done in all eight programme districts. It was carried out

with households and individuals as consumers of products and services, focusing specifically on product and

service knowledge and preferences. The study also assessed the general purchase behaviour of households.

3 The study districts under the DFID-‐funded SSH4A-‐Results Programme were: Siraha and Saptari in the Eastern Development Region; and Banke, Surkhet, Dailekh, Mugu, and Humla in the Mid-‐Western Development Region.



Focus group discussions (FGDs) were conducted with different consumer segments which included

households having a latrine as well as latrine non-owners, women and men, female and male-headed

households, and poor, marginalized and Dalit households. The focus group discussions were used to probe a

number of topics to understand consumer needs, preferences and desires as well as their knowledge,

attitude and practices regarding sanitation behaviour, products and services.

In each district, three to six FGDs were conducted. FGDs in Sarlahi, Mahottari, Rukum, Salyan, Rolpa and

Dolpa were conducted by the study team while FGDs in Kalikot and Jumla were conducted by local resource

persons of SNV’s partner organizations.

Data collection for supply chain study

Data for the supply chain study was collected in six districts, representing the three ecological regions of

Nepal, which included Sarlahi and Mahottari from the Terai; Salyan, Rukum and Rolpa from the hills; and

Dolpa from the mountains.

Interviews and observations were conducted with a range of actors involved in providing sanitation-related

products and services, including input suppliers, wholesalers, retailers, cement-ring producers, transport

service providers, masons, labourers and financial institutions, in order to understand the main market

players and their relationships. The supply of materials used in sanitation such as cement, sanitary hardware

(pan, pipe) as well as construction and maintenance services, transportation services, and other goods and

services (timber, stone, sand, labour cost, etc.) were analysed. These included analysis of price, margin,

and volume of products and services.

Additionally for Jumla and Kalikot Districts, mapping of the current supply chain actors was carried out using

data collected by the Local Resource Persons of SNV’s partner organisation.

1.5 Structure of the Report

The report is divided in to three main chapters:

Chapter 1: presents the background information, objectives and methodology of the study.

Chapter 2: presents the findings of the consumer preference and supply chain analysis parts of the

study.

Chapter 3: presents a discussion of the findings and develops recommendations.

Chapter II. Findings of the Study


Chapter I I . Findings of the Study This chapter presents the findings of the study. Firstly, the findings of the consumer preference study are

presented followed by the findings of the supply chain analysis study.

2.1 Findings of Consumer Preference Study

In this section, the socio-demographic characteristics and general purchasing behaviour of the target

population are presented followed by sanitation related knowledge, attitude and practices and their

relationship with the supply chain system. This study presents findings from the perspective of the

consumers whereas Section 2.2 presents findings from the perspective of the supply chain actors in

sanitation.

2.1.1 General Demographic and Socio-Economic Status of the Study Districts

An overview of the demographic and socio-economic status as well as wealth ranking of the eight study

districts is presented here based on data collected from communities targeted under the SSH4A programme

in a baseline survey conducted in July 2014.

The majority of households (81.8%) were male-headed. The average number of household members was

6.7. Nearly 59 percent of the households had member(s) older than 50 years and 13.8 percent of the

households had a person with special needs, which was any member who had difficulty in seeing, walking or

climbing steps, or self-care such as washing or dressing.

Regarding the main source of drinking water, 60.2 percent of the households reported using piped water

and more than one-fourth (26.5%) had access to a tube well or a hand-pump followed by water from a

spring source (10.8%). A higher proportion of households in the hills and mountains were using piped water

and spring water, while households in the Terai were largely using ground water (tube-well/hand-pump).

Table 1 shows the wealth quintile distribution of households across the districts. From five wealth quintiles

spread from the poorest (1st quintile) to the richest (5th quintile), a higher proportion of households in the

Terai districts (Mahottari and Sarlahi) belonged to the poor (2nd) and middle (3rd) wealth quintiles, while in

the mountain and hill districts, a significant proportion of households were in the poorest (1st) quintile. Very

few (0.3%) households in all the districts were from the richest wealth quintile. More people from the Terai

zone possessed household assets such as radio and television compared to people in the hills and

mountains.



Table 1. Wealth quintile by districts (Source: Data from baseline survey, July 2014).

Quintile Dolpa Jumla Kalikot Rolpa Rukum Salyan Mahottari Sarlahi Total

% % % % % % % % %

Poorest 15.6 28.3 23.5 24.8 17.2 21.8 0.8 3.4 16.8

Poor 56.8 67.5 66.1 58.3 38.6 31.9 26.6 51.3 50.0

Middle 25.0 3.3 9.0 15.6 34.5 21.5 55.6 38.9 25.5

Rich 2.6 1.0 1.4 1.2 9.1 22.8 16.8 6.2 7.3

Richest 0.0 0.0 0.0 0.0 0.5 2.0 0.3 0.3 0.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

From the focus group discussions carried out in this study, it was found that agriculture was the major

source of income followed by seasonal labour work. Community people also kept livestock such as buffalo,

cattle, bullock and goat as a source of income. Some people were engaged in fish farming or harvesting

from ponds and rivers and sold the fish in nearby markets. The months in which the households had

comparatively higher income were October to April.

Figure 2. Land ownership by district (Source: Data from baseline survey, July 2014).

Around 82 percent of the total sampled households had their own land for agriculture (Figure 2). The Terai

districts (Sarlahi and Mahottari) had relatively lower proportion of households with land ownership as

compared to the mountain and hill districts.

2.1.2 Sanitation Status of Study Districts

At the time of the baseline survey in July 2014, 42.8 percent of households in the targeted VDCs of the

programme districts practiced open defecation, meaning only 57.2 percent of the households had access to

latrine facilities. The Terai districts had more than 95 percent of households practicing open defecation.



Kalikot, Rukum and Rolpa districts were relatively in a better position as compared with other districts. It

should be noted however that due to the fast pace of the sanitation movement in the hill and mountain

districts, access to sanitation has changed rapidly, and Rukum District, for example, already became open-

defecation-free in December 2014.

Table 2. Sanitation coverage of study districts (Source: data from baseline survey, July 2014).

District Number of Households Sampled Households with Toilet Sanitation Coverage (%)

Dolpa 340 211 62.1

Jumla 400 224 56.0

Kalikot 366 352 96.2

Rolpa 403 341 84.6

Rukum 383 347 90.6

Salyan 307 203 66.1

Mahottari 394 18 4.6

Sarlahi 386 8 2.1

Total 2979 1704 57.2

Among those who had a latrine, the majority of households in all districts had flush toilets (88.5%) followed

by traditional pit latrines (9.3%).

People in the Terai were mostly advised by their neighbours and VDC offices to construct latrines while those

in the hills and mountains mentioned local WASH related NGOs in addition to VDCs and neighbours.

2.1.3 Current Defecation Practice among Latrine Non-users

The most common place of defecation among latrine non-users in the hills and mountains was a nearby

forest area while households in the Terai districts commonly used agricultural land and the road-side. Focus

group discussions revealed that men and women went to different places for defecation as well as at

different timings. Adult women used bushes and forested areas to defecate, while men defecated in rice

fields and along river banks. The Terai women usually went for open defecation at night (in a group of

around five women) while the men went in the early mornings. Open defecation was more problematic for

women, the elderly and disabled people. In the Terai, the elderly and children used the road-sides for open

defecation.

2.1.4 Reasons for Having a Latrine

The majority of study participants in all ecological zones said that they used latrines to prevent diseases as

well as to maintain their surroundings clean. The participants in the FGDs believed that sanitation was an

important part of their life. They were aware of different diseases and problems that occur as a result of

open defecation. The participants agreed that if they had latrines then roads, house-yards and even farm

land would be clean and that it would improve their sanitation and hygiene behaviour. They believed that it

would improve their social status as well. People in the hills and mountains were reportedly found to have



built latrines because of pressure from the local bodies (Village Development Committee and District

Development Committee) to make their communities free from open defecation.

One of the participants in Rolpa said, “People have to pay NPR 500 for open defecation, but this rule is not

yet strictly implemented”.

Ease, comfort, privacy and safety were other reasons mentioned by FGD participants in all zones as reasons

for toilet adoption. People, especially in the Terai felt that construction and use of toilet was associated with

pride and prestige in their community.

2.1.5 Reasons for Not Having a Latrine

People in all ecological zones said that the main reasons for not having a latrine were weak economic status

and low level of awareness amongst people. However, some of the reasons differed between the ecological

zones. In the case of the Terai districts, other reasons for not constructing a latrine included expensive and

inadequate land as well as the age-old tradition of open defecation. Some of the participants in FGDs from

the Terai districts did not perceive the necessity of constructing a toilet as they had forests, streams and

open fields nearby their house, which they could use for defecation.

In the case of the hill and mountain districts, besides illiteracy, ignorance and poverty, other important

reasons cited for not using latrines were poor accessibility to latrine construction materials and skilled

masons for latrine construction. Some people mentioned lack of suitable land as another barrier to latrine

adoption.

Some households did not construct latrines because they felt that household members would have to wait in

a long queue to get their chance to use the toilet, and hence favoured open defecation. Some people said

that they felt suffocated inside toilets and hence open defecation seemed convenient for them. Some women

FGD participants in Salyan and Rolpa mentioned that it was difficult to manage materials and to find skilled

masons for latrine construction in the absence of male members in their households. Hence, it was difficult

to construct latrines in households headed by women.

FGDs also revealed that some of the households were waiting to receive subsidy for toilet materials so that

they could start constructing their toilet. In the past, many households had received construction materials

such as pan, cement, pipe, etc. free of cost. Households who had not received such materials also expected

the same for latrine construction in their households.



Table 3. Reasons (motivation) for toilet adoption and non-adoption.

Reasons for having toilet Reasons for not having toilet

Hills/ mountains

Sanitation, health, pressure from local bodies, ODF movement, motivation by CBOs and social mobilisers, privacy, safety, convenience

Cost, lack of information - place to buy latrine and construction materials, lack of supplies/latrine construction materials (pan, pipes, cement) and mason, waiting for subsidy, lack of male member in households

Terai Sanitation and health, prestige, privacy, safety

Cost, lack of land for disadvantaged and poor (Musahar, Malaha, Chamar and Dom) ethnic groups, satisfied with OD, traditional thinking, waiting for subsidy

2.1.6 Convenience of Toilet Use by Household Members

Some households reported inconvenience in using latrines by some members. The major reasons cited were

old age, disability and sickness. According to the baseline survey (July 2014), 13.8 percent of the

households had member(s) with special needs (any member who had difficulty in seeing, walking or

climbing steps, or self-care such as washing or dressing. People from all ecological zones said that the

current latrines were very inconvenient for the physically disabled people because the latrines were not

easily accessible to the disabled persons. No ramp with a landing was provided at the side of the door and it

was difficult to squat on a squatting plate for the disabled. It was difficult for the elderly as well but not as

much as for the disabled people. Latrines were somewhat inconvenient for pregnant women as well because

of difficulties in squatting.

One of the elderly respondent in the hills said, “I have the problem of knee ache and I cannot properly sit to

defecate. So, it would be easy if I had a taller pan”.

2.1.7 Hand-washing Practice

The baseline findings in the programme area showed that from households that had a toilet, the majority of

households (71.9%) did not have a hand-washing facility within 10 m of the toilet and served as a proxy

indicator to show that a high proportion of people were not washing their hands after defecation. A further

13.6 percent had a handwashing facility but no soap or soap substitute available at the handwashing station.

The FGDs carried out in this study further revealed that hand-washing with soap and water was scarcely

practiced even though most of the people were aware of it. However, the majority did not know the

appropriate steps of hand-washing with soap and water (WHO six steps). Latrine users were more likely to

wash hands with soap and water after defecation as compared with non-users. The most common spots for

hand-washing were taps in the hills and mountains and hand-pumps in the case of the Terai. People in rural

areas often used ash instead of soap for hand-washing. The major reasons cited for using ash instead of

soap were low purchasing capacity to afford soap in the Terai and the hills by the poor and unavailability of

soap in the mountains.



2.1.8 Types of Latrine Construction Materials

Community people used stone, wood, mud, sand, gravel, etc. as local materials and cement, pan, pipe, iron

rod and galvanized iron sheet as non-local materials. People in the Terai mostly used brick, sand and

cement for latrine construction while those in the hills and mountains mostly used stone and mud. In case of

pour flush latrines, almost all people used single, off-set pits as collection chambers.

For the construction of the sub-structure of the toilet (the part below the pan/slab of the toilet structure),

households in the Terai mostly used cement, concrete ring, sand and gravel while those in the hills and

mountains mostly used stone and mud and rarely used brick, sand and cement. Regarding the type of pan,

people in the hills and mountains used both plastic and ceramic pans while those in the Terai used ceramic

pans only. Some FGD participants mentioned that plastic pans were not good as they were difficult to clean.

Similarly, the items used for construction of the toilet slab (surface) were sand, cement, stone, pan and

metal rods; boulders were used around the outer area of the slab to raise the superstructure. The area in

the slab surrounding the pan was porous, less concrete and rough in the hills as compared to the Terai

because of less availability of sand, brick and gravel.

When enquiring about the super-structure (the part housing the toilet), people in the Terai responded that

they mostly used brick, sand, cement, pebble and thatch for wall construction and galvanized iron (GI) sheet

as roofing material. However, people in the Terai did not prefer the use of GI sheet for roofing because of

high temperatures in the Terai that would make the use of latrines less convenient in the summer season.

They preferred straw, thatch, mud tiles as roofing materials. People in the hills used GI sheet along with

thatch, sand, stone, pebble and cement for construction of the super-structure. In the mountain areas,

people used mud and wooden planks as roofing materials. They also used GI sheet in some cases.

Table 4. Construction materials used for latrine construction.

Pit (Sub-structure) Slab Super-structure

Mountains Stone, mud

Pan (both ceramic and plastic), siphon, cement, iron rod, pipe, sand, gravel, stone

Stone, wood, plastic sheet, bamboo and mud, nails

Hills Stone, mud, brick, cement and sand

Pan (both ceramic and plastic), siphon, cement, sand, iron rod, pipe, gravel, stone

Stone, mud, wood, bamboo, bricks, cement, sand, GI sheet, thatch, nails

Terai Cement ring, cement, sand and brick

Pan (ceramic), siphon, tiles, sand, cement, iron rod and plastic pipe

Bricks (mud, cement), cement, sand, iron rod, GI sheet, bamboo, wood, cement tile, nails



2.1.9 Purchasing Practices

General purchasing practice

Male members of households usually purchased goods as compared with their female counterparts. Very few

households purchased goods on credit. The majority of people purchased goods from retailers as compared

to wholesalers.

People mostly bought expensive goods during major festivals such as Dashain and Tihar in the hills and

mountains and Chhaith in the Terai and also at the time of wedding celebrations of family members. When

asked what they would buy if they had adequate money, they said they preferred to buy electronic goods,

land, jewellery, livestock (buffaloes, goats), bicycles and clothes. Construction and/or improvement of

latrines were rarely mentioned as a purchasing priority.

To purchase construction materials, households in the mountain districts had to go to the district

headquarter. In the hill districts, people went to district headquarter and business hubs along the road side.

Whereas in the Terai districts, people had access to such materials in markets along the highway, sub-

district level business centres and the district headquarter. People living close to the Indian broader in the

Terai districts preferred to buy construction materials from nearby Indian markets where they could buy

materials at a cheaper rate.

Latrine construction material purchasing practice

In the hills and mountains, there was no easy market access to purchase sanitation materials close to the

villages. The majority of households from the hills and mountains had to go to the district headquarter to

purchase latrine construction materials. Some people travelled to neighbouring districts where they found

larger markets. For example, people from Salyan (hill district) mostly went to Dang district to buy toilet

construction materials.

In the case of the Terai, such goods were comparatively easily available in nearby markets, sub-district level

business centres along highways, and the district headquarter. People from the southern VDCs in the Terai

districts preferred to go to nearby Indian markets along the Nepal-India border to buy materials at a

cheaper rate.

Regarding financing materials, general suppliers hesitated to sell materials on credit; customers had to pay

in cash for toilet construction materials at the time of purchase. The major sources of advice for construction

of latrines were social mobilisers, masons, neighbours and local NGOs.

FGDs revealed that the Dalit caste and the poor were more liable to have insufficient resources such as

money and private land for latrine construction and mostly waited for external support. Similarly, women

had little say in latrine design and material purchasing and these tasks were largely carried out by the men

of the family.

Table 5 below gives an overview of different costs incurred for the construction of a typical toilet as per

consumer’s calculations in the study districts. The cost for construction was much higher in the mountain

and hill districts as compared with the Terai districts. It was interesting to note that a large proportion of the

cost was incurred for the construction of the superstructure.



Table 5. Average toilet construction cost (NPR) as per consumer responses

District

Material cost Labour cost Cost

Pit (lining) Slab

Super-structure (walls, roof)

Pit (digging) Slab

Super-structure (walls, roof)

Total Up to slab level

Mahottari 3600 2800 12400 700 1200 2500 23200 8300

Sarlahi 3500 3000 13500 700 1200 2500 24400 8400

Kalikot 3500 8500 16400 2000 2400 2700 35500 16400

Rukum 3000 5200 9550 4200 2200 2800 26950 14600

Rolpa 3500 5500 12950 3800 1800 3000 30550 14600

Salyan 3800 5000 11600 3200 2200 2500 28300 14200

Jumla 2500 11500 21890 3500 2800 3200 45390 20300

Dolpa 5000 10500 18500 3500 2500 6000 46000 21500

Average 3550 6500 14599 2700 2038 3150 32536 14788

Exchange rate 1 USD = 100 NPR (March 2015)

2.1.10 Transportation of Materials for Latrine Construction

The difficulties involved in material transportation were expressed in all districts. In the hills and mountains,

since the materials required to construct latrines were mostly bought in the district headquarter, this

imposed a high cost of transportation. Furthermore, even though vehicles carried materials up to a certain

point, they ultimately needed to be carried manually up to the site of construction. Customers mostly

transported materials by themselves (using human labour or mule); those who could afford it, used mules

to transport the materials. In the Terai districts, bullock carts, tractors and vans were generally used to

transport rings, slabs and other materials.

People responsible for the transport of materials had to bear the loss caused from damage of materials

during transportation. For example, if businessmen took the responsibility of transportation up to a certain

distance using their own vehicles and drivers, then they had to compensate for any loss caused from

damage of materials during transportation. However, if customers themselves were responsible for

transportation of latrine construction materials then suppliers were not held responsible for any damage

caused during transportation. Such damages occurred more frequently in the hills and mountains as

compared with the Terai. Transportation of materials was more difficult for women customers when male

members were absent in their households.

The mountain district of Dolpa was a special case, as it is not connected by a road network and therefore the

transportation of materials was very difficult. Wholesaler/retailers made bulk purchases from Nepalgunj and

Surkhet (sometimes from Butwal) and transported it via air route. Some businessmen used mules from

Rarijyula (Rukum district) which required more than five or six days from Rarijyula to Dunai Bazaar (district

headquarter of Dolpa district). The air cargo transportation cost was high and charged NPR 130 - 140/kg of

material from Nepalgunj; in contrast, material transportation via mule cost NPR 80 - 90/kg from Rarijyula

(Rukum district) but required more time than air cargo. Poor community people used manual labour and



middle to rich class people generally used mules to transport materials from the district headquarter to the

site of latrine construction. The actual cost of one kilogramme of cement in Nepalgunj was NPR 13 to 14

whereas, in Dolpa the cost rose up to NPR 143 to 154/kg due to costly transportation charges using air

cargo.

2.1.11 Construction Period

People generally constructed latrines during festival times, family ceremonies and rituals (e.g. marriages)

and after harvesting crops between the months of November to May in the hills and the Terai and March to

May in the mountain districts. During that time people generally have money from crop harvest, services

and remittances sent by household members from foreign countries.

2.1.12 Construction Practices and Services

Masons were primarily employed for construction work in all ecological zones. Household members

participated in latrine construction by digging pits, collecting and transporting stone and mud, and

supporting the mason as and when required. In the case of the mountain districts, neighbours and

household members were equally involved in construction work.

The construction work was mostly carried out by community level masons (mistri) who had acquired the

necessary skills through practice and experience. In the mountain districts, a mason offered his services for

NPR 700 – 1000 per day and in the hills for NPR 600 – 800 per day. The wage rate of a mason in the Terai

was relatively cheaper than in the hills and mountains averaging 500 NPR but going up to 800 NPR in certain

areas.

In the mountain and hill districts, latrine construction involved engaging different types of masons for

digging pits, building walls, wood works (carpentry), and plastering, respectively. As a result, it was quite

difficult to identify and hire the different types of masons required to construct a toilet in the hills and

mountains. In contrast, in the Terai one mason was usually hired to complete all parts of the toilet.

People in all ecological zones, but more so in the hills and mountains, said that masons did not possess

adequate skills to construct latrines, especially setting the pan in the slab and connecting the siphon. Some

of the drawbacks of using masons as mentioned by FGD participants were: they charged more money, did

not have adequate skills to set the pan and do plastering, did not construct strong walls, etc.

Challenges in Construction and Services

People in the hills and mountains faced difficulties in digging land for construction of the sub-structure (part

below the surface) of the toilet because of presence of large stones that hindered the digging process.

Moreover, there was a risk of damaging pits due to falling of loose soil and rocks. People in the Terai said

that they faced difficulty in digging pits due to high ground water and therefore water oozing out from

beneath the surface whenever they tried to dig deep.

As described above, one of the major problems associated with the construction of latrines was a lack of

skilled masons; although these issues were faced in all districts, they were found to a greater degree in the

mountains and hills than in the Terai. Masons were not adequately skilled in setting pan and siphon in the



slab. Masons were also found to be less skilled in maintaining appropriate height of the superstructure and

fitting doors properly. One reason for this was that whereas master masons were used for construction of

houses, their semi-skilled subordinates or other masons were used for toilet construction. Another reason

was that households also did not give the same priority to the construction of a superstructure for a toilet as

they did to construction of a house structure. Therefore, issues of leaking roofs of the superstructure and

insufficient height of the superstructure were found. In the mountain districts there was often also the issue

of insufficient lighting in the toilet due to no window and/or low height of the superstructure.

People in the hills and mountains faced more transportation problems as compared with those in the Terai.

There was more chance of damage of construction materials in the hills and mountains because of uneven

topography and fragile landmass; in addition, the cost of transportation of materials through vehicles was

high in the mountains. People themselves had to bear the loss of damage of materials during transportation.

Moreover, even after transporting materials by vehicles, they further had to carry the materials manually up

to their villages and sites of construction. This made the cost of latrine construction quite high in the hills

and mountains.

2.1.13 Use and Maintenance of Latrines

Latrine owners in all districts were directly involved in maintaining toilets in a hygienic condition. In the hills

and mountains, challenges in maintenance were related to having access to materials and water and poor

construction of the toilets. Most of the participants mentioned using water and a locally prepared sweeping

brush (bamboo sweep-sticks) to clean the surface, though some of the participants in Rolpa and Rukum

districts mentioned using chemical disinfectants as well. Owing to the lack of a market at close proximity,

people faced problems of travelling long distances to purchase items needed for hygienic maintenance of

latrines. FGD participants said that some did not have buckets and jugs to be used in their latrines. In

households where these objects were present, many did not keep them filled with water for anal cleansing

or flushing and therefore keeping the toilet in a hygienic condition was difficult. Some households also faced

difficulties in cleaning due to scarcity of water. Furthermore, many people reported that the surface

surrounding the slab tended to be uneven and less washable because of which cleaning was a problem.

People in the Terai had easier access to markets and were reportedly found to be using a toilet brush and

disinfectant chemicals purchased from the market. Furthermore, water in the Terai was easily available to

clean latrines as compared with the hills and mountains. However, some rural communities in the Terai

mentioned excessive breeding of flies in their latrines due to poor cleanliness of toilets.

The problem of foul smell in latrines was an issue in all ecological regions. This was due to leakages between

fitting of pan and pipe, improper slope in setting of pan such that it cannot be used properly and urine does

not flow into the pan properly, improper use of the pan and urine spreading around, and poor ventilation

In the hills and mountains, participants hardly experienced the need to empty their pits as it took many

years to fill up in the permeable soil. When the pits did fill, people closed the old pit and dug a new pit in

the adjacent area. In contrast, people in the Terai faced difficulty with quick filling of pits and tanks because

of regular flooding, high ground water table and surface run-off during the rainy season. People realised

that their tanks were full when faeces did not flush down. In some cases if the pits had not been

constructed at a proper slope, the water level rose up into the toilet. When their pits or tanks flooded,



people either cleaned them out or changed them. Emptying was done manually (often by hiring people of

the community who specially carry out such work) and faecal matter was emptied into nearby rivers, open

lands and forest. Use of excreta as fertilizer was reported by very few participants.

Notably, in the high mountain area, the pour flush technology is found to be challenging as there are

problems in the winter when the ordinary pipes used in latrines crack, water in the toilet pan freezes, and

the toilet does not work due to low temperatures especially when the temperature goes below zero degree

centigrade. In these areas typically dry sanitation systems are found.

Table 6. Problems in toilet construction and use.

Pit Slab Superstructure Other

Hill/Mountain

Difficult to dig due to stones and compaction of soil

Leakage from siphon and pipe joint, difficult to wash the surroundings of pan due to rough surface of pan

Landslide, leakage of water from roof, shortage of adequate light and buckets inside latrine

Lack of sufficient water, difficulties in transportation; unskilled mason -setting pan and siphon on the surface; High Mountain - water seal pan does not work in winter due to frozen water

Terai

Difficult to dig due to high water table and inundation; fast filling and emptying cost

Leakage from joint, nasty odor, rough slab surface and difficult to wash pan and surroundings

Heating of GI sheet, Cost of superstructure

Raised water level

2.1.14 Possible Solutions to Challenges in Construction and Maintenance of Latrines

People mentioned a number of possible solutions to build a stronger sub-structure. According to them,

because of greater availability of stones compared to bricks in the hills and mountains, they demanded that

instruments ought to be available for breaking stones. Similarly, they stressed the need of skilled masons

for proper plastering of pit walls thereby making pits less vulnerable to frequent collapse. People in the Terai

said that substructures can be made strong and durable by selecting an appropriate site for latrine

construction. This would on one hand prevent early sprouting of water while digging pits and on the other

hand protect pits from the effects of floods and rainfall which would otherwise fill it quickly. This according to

them would reduce the maintenance cost as well.

Regarding the surface (slab), people in the hills said that masons should be adequately trained to properly

fit pans in the surface which would solve the problem of leakage and foul smell. They also said it was

necessary to train masons to plaster surfaces around the pans. People in the hills and mountains added that

maintenance of slabs would be easy with the availability of adequate water and cleansing materials such as

brush and phenyl etc.



In case of the Terai districts, respondents felt that construction of latrines at a suitable location (preferably

land above frequent flood level) would help solve most of the slab level problems. Those who complained

about excessive breeding of flies and presence of foul smell in latrines thought that such problems could be

solved by ensuring the availability of suitable chemical disinfectants; however, people used it less frequently

because of weak economic conditions.

Regarding the superstructure, people in the hills and the Terai stressed the need of mason training for

plastering and proper fitting of roofs. Availability of strong materials such as galvanized tins and bricks were

also necessary. Moreover, people said that there should be adequate light inside latrines and the height of

the superstructure should be determined properly to make it more durable. People in the Terai said that

superstructures could be made better by choosing a suitable location for latrine construction that had

enough land to construct a proper toilet with a sufficient wall height without disturbing the neighbours. Many

people said that increasing the economic status of people, making them aware and adequately training

masons were necessary measures for making superstructures stronger and more durable.

2.1.15 Willingness to Pay and Financing

The FGD participants from disadvantaged groups (Dalits and poor) were willing to pay some amount of cash

and provide labour work to construct toilets. Participants from disadvantaged groups from the Terai districts

did not own land and were occupying government land; however, they were willing to construct community

toilets by providing non-skilled labour if their VDCs provided community land for toilet construction. In

addition they demanded materials such as cement rings, pan, slab, pipe and cement as well as services of a

mason from their VDC and or the government. Some people in the Terai were requesting to construct

community toilets on public land in coordination with the VDC and had shown willingness to voluntarily clean

toilets on a regular basis by developing rules and regulations.

The amount people were willing to pay for construction of a toilet varied depending on the type facilities

available in a latrine. The respondents in the Terai and hills said that whereas people living in urban areas

expected a fancy flush system, tap, light, as well as painted walls in a latrine and would pay a high amount

for constructing a toilet (NPR 70,000 - 80,000), they were willing to pay a lot less in the rural areas (not

more than NPR 20,000 - 30000). However, the disadvantaged and poor people could not offer cash

contribution and were willing to provide unskilled labour and collect local materials for latrine construction.

In the mountains, due to the high cost of transportation for materials, respondents felt toilets to be very

expensive.

The participants of FGDs had never thought about getting a loan for latrine construction and thought that

they would not be able to procure a loan for construction of latrine. Many of the participants, especially

females, were involved in saving and credit groups in all districts. During discussions, some participants

mentioned that such village level saving and credit groups could be a source of financing to construct

latrines for the poor households. One of the members of such a women’s credit group in the Terai said that

they would think about providing loans to households without latrines.



2.2 Findings of Supply Chain Study

This chapter presents the findings of the supply chain study. Firstly, mapping of sanitation supply chain

actors is presented and secondly, the findings of individual actors are described. It should be noted that

although some of the information appears the same as the findings from Section 2.1 on the consumer

preference study, this section presents the findings from the perspective of the supply chain actors in

sanitation.

2.2.1 Type of Private Sector Actors Engaged in Sanitation

Wholesalers/retailers were supplying toilet construction hardware products such as pan, pipe, cement,

bricks, ring, iron rods, etc. Masons and labourers were directly involved in constructing latrines in the

communities. In addition, transportation agents and individuals who carried sanitary hardware up to the

construction sites were also involved in the supply chain.

In the mountain and hill districts, hardware producers were virtually non-existence, whereas in the Terai, a

number of cement concrete ring producers were involved. Table 7 depicts the engagement of private sector

actors in sanitation business in the study districts.

Table 7. Private sector actors engaged in sanitation businesses or related supply chains in the

districts

Type of private sector actors engaged in the sanitation supply chain in the districts

Mountain districts Hill districts Terai districts

Dolpa Jumla Kalikot Salyan Rukum Rolpa Sarlahi Mahottari

1. Sanitation hardware producers (#) 0 0 0 0 0 0 25 30

2. Wholesalers/ retailers (#) 10 11 12 20 40 25 30 25

3. Cement sales agents* (#) 3 5 4 5 11 8 10 10

4. Masons/ carpenters (#) 20 10 55 90 200 145 200 175

5. Pit emptying service providers (#) 0 0 0 0 0 1 10 8

* Cement sales agents are included in wholesalers/retailers.

The concentration of private sector was high in the Terai districts as compared with the hills and mountains

(Table 7). They mostly ran their businesses in the district headquarter and some of them had installed

outreach centres at business hubs along the highway. Wholesalers/retailers had established their business

linkages with community level grocery shops and provided goods/materials to community level shop keepers

to sell their products.

The concentration of masons and carpenters was higher in the hill and Terai districts as compared to the

mountain districts. However, owing to the high population of the Terai and the increasing demand for



sanitation, there was a shortage of masons to be able to fulfil demand. From the mountain and hill districts,

the number of masons was found to be sufficient to respond to the level of demand with the exception of

Jumla which had too few masons.

Notably, there had been various efforts in skill building of masons. The government had provision to

provide skill building trainings in the mountain and hill districts and various I/NGOs had also carried out

trainings in the various districts. The key challenge was retention of the trained masons. In the mountains

and hills, many masons migrated down-country or went abroad and used their qualification certificate for

better opportunities. In the Terai, trained masons preferred to give their services to urban areas.

2.2.2 Analysis of Current Sanitation Supply Chains

In general, rural supply chains in programme districts for sanitary goods and services were characterized by

limited businesses in the mountains and hills as compared with the Terai districts. However due to GoNs

policy, local government efforts and I/NGOs sanitation promotional support, sanitation hardware business

are gradually increasing in rural areas. Most hardware goods (cement, polyethylene pipes, iron rods, bricks,

cement rings) are manufactured in Nepal and sanitary goods like ceramic pan and fittings are imported from

India.

Most existing sanitary and hardware goods and service businesses in the Terai districts were concentrated in

district headquarters and sub-district level business centres near the highway. Some wholesalers/retailers

were specialised to cater for the urban market and sold sanitary ware and bath fittings. Other businesses

sold for the most part cement, iron rod and fittings materials and also had stock of sanitary hardware such

as ceramic pans, bath room materials, tiles, pipes and aesthetic sanitary products. Whereas at the

community level, sanitary hardware materials and toilet cleaning products were sold in ‘General Shops’ and

small-scale retailers that sold groceries and fast moving consumer goods (rice, sugar, cooking oil, snacks,

soap).

In the hills and mountains, sanitary goods were stocked in hardware shops; these businesses were mostly

concentrated in district headquarters and limited business centres which were connected by road or airport

facilities. In a few cases, there were community level, general shops that sold sanitary and hardware items.

Despite limited market size and logistical challenges in the programme districts, deep distribution channels

existed even through the most remote foot trails and seasonal roads. Small purchasers mostly purchased

goods and services from nearby community business hamlets. The amount of goods purchased by

customers in the mountains and hills were generally one man’s load (40-50 Kg) and a mule’s load (70-80

Kg) at a time, which was slightly higher in the Terai where people used bullock carts and tractors to

transport materials and therefore purchased all supplies including cement rings, slab, cement and pipes at

one time from the different shops and then transported the materials all together.

Sanitation marketing is not a single actor engagement and there are multi-actors engaged in this business

such as input suppliers, manufacturers, distributors and constructors from national/international level to

community market hubs. Toilet components and materials move through different and disconnected supply

and distribution channels; however, they are generally considered a part of construction/housing material

supply chains. Figures 3 and 4 present a schematic diagram of supply chains for sanitation hardware



material inputs in the Terai and the hills and mountains. There are two main categories of manufactured

inputs- different types of toilet (ranging from simple pour-flush latrine to stylish flush toilets) and sanitary

components including ceramic pans, shower taps, pipes and fittings. In addition, a third category of inputs

include locally collected materials such as wood, stone, gravel and sand procured locally by individual

households. Ring producers also purchased sand and gravel. Even though, masons and carpenters at local

level provided construction services, most households actively provided unskilled or semi-skilled

construction labour.

District headquarters in the hills and mountains, considering the small volume of demand for sanitation

materials were not able to sustain their business selling solely sanitary hardware. The supply of construction

materials such as cement, iron rods, GI sheets along with pan, plastic pipes, cleaning materials made up a

large volume of the sales. Wholesalers/retailers generally sold 5 to 20 percent sanitary materials from their

total sales; from the total turnover major sales items were construction materials (cement, iron road, GI

sheet). This trend was even more pronounced in the sub-district level in the hills and mountains, sanitary,

construction and daily consumable goods were generally sold by a single shop to sustain the business.

Figure 3 depicts that individual rural households made up a very small fraction (below 20 percent) of overall

sales of the supply chain (for complete turnover of all the actors in the sanitation supply chain). Contractors

and government projects engaged in large scale of construction works (road, hydro-power, irrigation

channel, etc.) were the main consumers of hardware materials and occupied up to 80 percent source of

revenue and income. Figures 3 and 4 illustrate hardware supply chain actors in the Terai and in the hills and

mountains respectively.



Figure 3. Sanitation hardware supply chain in the Terai



Figure 4. Sanitation hardware and supply chain in the hills and mountains



2.2.3 Wholesalers/Retailers

Background Information

Wholesaler and retailers consisted of different types of businesses. Wholesalers could be a dealership which

was an authorised agent of a manufacturer and received direct supply from the manufacturer of cement or

pipes in the country. Wholesalers could also be businesses that purchased cement and pipes directly from

Nepali manufacturers without having a dealership. Wholesalers could also act as retailers for some

customers. Retailers purchased goods from wholesalers or other retailers. Moreover ceramic pans and

fittings manufactured in India were sold by retailers who in turn purchased them from authorised importers

Retailers and wholesalers found in the study area were all male and the majority of them had at least

completed high school. Most of them resided in the urban areas and had registered their shops in PAN/VAT

(registration for tax purposes). They had been running their business since 5 to 31 years individually without

partnership with other people.

Most of them were motivated by their family members to get into this occupation. All shops had some male

staff on a temporary basis. They were mainly responsible for managing accounts, stock and sales;

loading/unloading of materials and goods was done by wage labours. None of the wholesalers/retailers had

acquired formal training to do business; nonetheless they had gradually learnt and developed relevant skills

of doing business from their senior family members as well as friends who had been running a business

since long time back.

Product Information

The items sold by wholesalers/retailers that were used for latrines were mostly pans, pipes and plastics.

However some of them sold cleansing materials, cements, iron rods, pipe fittings and marble. The

proportion of profit earned from selling latrine related items ranged from three to forty percent as individual

product margin.

The average annual profit from the total business ranged from NPR 5 - 16 hundred thousand, with 10 - 20

percent share coming from sanitation related items. The most popular and highly demanded items were

pans and pipes across all zones and tiles as well in the Terai region. The businessmen explained that pans

were popular because of hygiene concern among people whereas tiles were popular because of ongoing new

constructions. The most profitable items were tiles and marble.

Customers in the Terai preferred ceramic pans to other type of pans, whereas people in the hills and

mountains gave high preference to plastic pans which were easy to transport and non-breakable. The

number of pans sold ranged from 20 to 300 per month, with different ranges across the different ecological

zones. The number of pans sold per month in the Terai, hills and mountains were 12-300, 5-50 and 4-15

respectively. The sales were higher in Terai because the suppliers in the Terai also supply pans to sanitation

retailers in the hills and mountains.

Most of the wholesalers and retailers said that the sales of items related to latrines had increased by 20 - 40

percent in the past year across the districts due to the sanitation movement and increasing demand. The

major reasons cited for increase in sales of latrine related items were on-going construction of new buildings



in the neighbouring areas, government policy, changing consumer behaviour (cautious in sanitation hygiene

through awareness campaign), pride and dignity, etc.

The majority of wholesalers/retailers said that the price of sanitary items had increased compared to the

previous year and the reported increase in price was 5 to 20 percent. The prices mostly increased for

sanitary materials, pipes and fittings rather than for cements and iron rods because they were imported and

the exchange rate had increased cost.

The months with highest sales were March through June; this was because most procurement by

government contracts occurred in these months. Similarly, months with least sales were from July through

September. Dry season was said to be the most favourable season for selling goods.

Some wholesalers/retailers provided suggestions and advice to their costumers related to quality, durability,

prices of products and types of toilets without service charges for business promotion.

Table 8. Cost of sanitation related construction materials

Description Common Brand Retailer Price per Unit Cost (NPR) Ecological Zone

Super flush pan Hind ware, parry ware 15000-17000 Terai districts- Sarlahi and Mahottari

Ceramic Pan (No) Hind ware, Parry ware 550-650 Terai districts- Sarlahi and Mahottari

Plastic Pan (No) 350-500 Terai districts- Sarlahi and Mahottari

Plastic Pan (No) 850-1200 Mountain district- Dolpa

Plastic pipe (4”)/M NS marked 124-150 Terai districts- Sarlahi and Mahottari

Plastic pipe (4”)/M NS marked 250-350 Hills district- Dolpa

Plastic pipe (4”)/M NS marked 350-450 Mountain district- Salyan, Rukum and Rolpa

Cement/Bag (50 Kg)

Jagdamba, Biswakarma, Maruti, Shivam, etc. 625-725 Terai districts- Sarlahi and

Mahottari

Cement/Bag (50 Kg)

Jagdamba, Biswakarma, Maruti, Shivam, etc. 800-950 Hills districts- Salyan, Rukum

and Rolpa

Cement/Bag (50 Kg)

Jagdamba, Biswakarma, Maruti, Shivam, etc. 10,000-10,500 Mountain districts- Dolpa

Cement Ring/Per ring 360-600 Terai districts- Sarlahi and

Mahottari

Cement slab/per slab 360-600 Terai districts- Sarlahi and

Mahottari

Easy Slab (slab with pan)/slab 2500-2800 Terai District-Sarlahi and

Mahottari

Iron rods (10 mm)/Kg NS marked 85 Terai districts- Sarlahi and

Mahottari



Description Common Brand Retailer Price per Unit Cost (NPR) Ecological Zone

Iron rods (10 mm)/Kg NS marked 90-100 Hills districts- Salyan, Rukum

and Rolpa

Cement Bricks (10”x 8 x 6”)/PC 50-60 Terai districts- Sarlahi and

Mahottari

Cement tiles (18’’ x24”) (No) 100-120 Terai districts- Sarlahi and

Mahottari

Cement (50 Kg bag) 800-100 Hill district-Dailekh

Iron rods, fittings materials etc.

Mountain district Dolpa: 12-15 times higher prices than the actual cost in Nepalgunj.

Customer Information

All businessmen said that their customers mostly belonged to medium to high class families. The majority of

them said quality of product, durability and market price of products were the major determinants of sales

of items. According to them, people mainly constructed latrines at their households due to influence of

people constructing latrines around them, increased awareness, and availability of support from NGOs and

government.

In the Terai, customers mostly came to buy pan, pipe and cement at their shops and preferred to buy latrine

products in instalments; majority of them bought pipes at first followed by tools and then pans. Customers

purchased cement rings and slabs from ring producers and went to shopkeepers for plastic pipes, pan and

fittings. If they had hired bullock carts or tractors for transportation, then they purchased all materials from

the different suppliers at one time and transported them all together. They paid their bills in cash at the

time of purchase of goods. In the hill and mountains, customers purchased all they required at one time

from suppliers and arranged for transportation. In all districts, the majority of consumers acquired

necessary information before coming to the shops; however, shopkeepers also provided information

regarding the products and their usage.

Some of the businessmen said that customers, at times, ordered items not available at their shops. They

were ready to sell sanitation related items on credit based on mutual understanding between shopkeepers

and buyers; however, all of them said that selling on credit would sometimes create problems. Most of the

businessmen sold goods directly to customers and few of them sold their goods through outreach shops

along main roads and community level shops. Some of them had bid for latrine construction works a few

times with NGOs/INGOs in the past when subsidy was being given and large-scale purchases were being

done. Customers mostly bought products based on price and durability and bargained as well. Households

were the major consumers of latrine products. The number of customers who bought latrine items per

retailer/wholesaler (last year) ranged from 200 to 1200 and the majority of them knew the

retailers/wholesalers through reference of masons, neighbours, relatives and friends.



Transportation

Customers mostly carried purchased items to their homes

by themselves. However, shopkeepers made provision for

transportation of purchased items for large quantity of

goods or if women had come to buy at their shops without

taking any extra charge for home delivery within city area

and also within half a kilometre distance. In case of cement

ring, slab, cement and iron rods, the Terai people generally

used thela (Man pulled cart) and three-tire bicycle for

transporting materials within 1 km distance; for distances

up to 5-6 km they used bullock carts and for distances

greater than that, customers used tractors and vans as

means of transportation. In the hills they transported goods and materials from district headquarters and

business centres in Butwal, Nepalgunj and Dang.

The majority of wholesalers/retailers said that arrangement of transportation was not an easy job. In the

mountain district Dolpa, wholesalers/retailers of Jufal and Dunai Bazaar mostly used air cargo from

Nepalgunj and Surkhet to transport hardware and daily consumable goods. Business people from Dunai

Bazaar used mules to transport construction materials and daily consumable goods from Rarijyula bazaar in

the neighbouring district of Rukum.

Table 9. Sanitation hardware transportation cost

Description Manufacturer to Wholesaler Costs (NPR) Means of

transportation Ecological Zone

Cement (Ton) Siraha, Birgunj, Hetauda 850-1000 Truck Terai districts Sarlahi, and Mahottari

Iron Rod (Ton) Simara 800-1000 Truck Terai districts Sarlahi and Mahottari

Cement Ring (per ring)

Large, Medium and Community business centre

50-100 Tractor/bullock Cart

Terai districts Sarlahi and Mahottari

Cement slab (Per slab)


50-100 Tractor/Bullock Cart


Slab with pan (Easy slab) (per slab)


50-100 Tractor/Bullock Cart


Cement Bricks/Tiles


1000-1500 Tractor Terai districts Sarlahi and Mahottari

Cement Bricks Large, Medium and Community business centre

300-500 Bullock Cart Terai districts Sarlahi and Mahottari



Description Manufacturer to Wholesaler Costs (NPR) Means of

transportation Ecological Zone

Cement (Ton) Nepalgunj 1300-1700 Truck Hill districts Salyan, Rukum and Rolpa

Iron Road (Ton) Nepalgunj 1500-1700 Truck Hill districts Salyan,

Rukum and Rolpa Cement, Iron rod, Pan, fitting etc. (Ton)

Nepalgunj, Surkhet 120,000-140,000 Air Cargo Mountain districts Dolpa, Jumla through air craft or mule

Cement, Iron rod, Pan, fitting etc. (Ton)

Rarijyula, Rukum 80,000-100,000 Mule Mountain District Dolpa

Marketing and Promotion

Businessmen got most of their customers through

personal contacts. Only a few customers knew about

these shops through sign boards and FM radio

advertisements. Similarly, a few knew from

recommendation of other people and masons. The

majority of wholesalers/retailers did not advertise to

promote their goods; however, some of them had done

so through local FM stations and a very few of them had

used agents to promote their goods. They stated that

they competed with other businessmen by establishing

good relationship with customers and by selling quality

goods and products.

When asked about how the latrine construction items could be made accessible to the poor families, they

said that it could be done through the formulation of sound government policy on such matters followed by

subsidy from the government and NGOs, along with the support from business enterprises. None of the

wholesalers/retailers had any complaints filed against them by any customers. Only 8-20 shops (per

wholesaler/retailer) competed in their market and none of them had collaborated with their competitors on

any issues such as price regulations. However, in case of cement ring, slab, bricks and tile producers in the

Terai, they displayed their products at their main entrance to grab customers’ attention. Furthermore, the

businessmen who sold sophisticated sanitary materials such as high quality flush toilets, pan, tap items, sink

basin, tiles in the Terai demonstrated their materials and goods to provide material choice to the customers.

Business Management

All businessmen had taken loan from financial institutions such as banks and cooperatives with interest rates

ranging from 10 to as high as 18 percent per annum at some point for their business. The interest rates at

commercial banks were lower ranging from 8 - 11 percent whereas at cooperatives it ranged from 14 to 18



percent. Also, annual interest rate of development banks was slightly higher (10-12%) than the commercial

banks. Some said that it was difficult to pay the loan back and had managed to do so with great toil.

Table 10. The annual interest rate of bank and service charge

S. No. Types of Financial Institution

Annual Interest rate (%)

Service Charge

(%) Remarks

1 Commercial Bank 8 to 11 0.25 to 1

The interest rate depended on negotiations between bankers and consumers during the loan process. Higher the loan amount, lower the interest rate. If the loan is > 50 million and above the service charge 0.25%, > 5 million 0.5 % and <5 million the service charge is 1% respectively.

2 Development Bank 10-12 The service charge was higher than that of commercial banks

3 Cooperatives 14-18

Simple for loan process, till date loan provided for IGAs and small scale business. If shareholder requested for latrine construction support, they discussed in executive committee and were positive for providing support. In Siraha one cooperative provided cement rings and slabs to shareholder’s households instead of providing bonus/divided for sanitation promotion.

4 Community Level Saving/Credit Groups

12-18

Simple loan process, till date they have provided loan for IGAs. If their member requested for latrine construction support then they responded positively and reduced interest rate than business. Potential option for rural credits.

Some wholesalers/retailers experienced difficulties when customers didn’t pay money adequately and timely

after buying products on credit albeit the small number of people who purchased on credit. About half of

the businessmen planned to expand or enlarge their current business while the remaining said they would

probably not expand their business despite an increasing scope in sanitary hardware as well other hardware

items. Some traders in the Terai coordinated with FNCCI (Federation of Nepal Chamber of Commerce and

Industries) for the promotion of outreach of their products through linkages with the local chapter of the

federation. Some of them mentioned that challenges for expansion of sanitation business were lack of

awareness and motivation among customers.

They said that such challenges could be overcome by raising awareness through campaigns, creating

supportive and sound government policies, technical assistance from government and I/NGOs along with



socio-economic empowerment of people. All of them supported the idea that it was necessary to further

expand sanitation services in nearby villages and rural areas.

2.2.4 Ring Producers

Background Information

Ring producers were concentrated in the Terai ecological zone whereas in the hills and mountains, they were

virtually non-existent. All ring producers found in the districts were male. The majority of cement ring and

slab producers had not received any formal training and had learnt the skills to run such business through

personal skills and experience. Besides products, they provided advice on latrine construction and use of

materials such as single pit, double pit, slab, slab with pan etc. They charged NR 360 to 600 per ring

according to the size of ring with total of 4 to 8 rings per set. Customers who constructed single pit latrines

generally used 4 to 6 rings per pit and those who constructed double pit latrines purchased 8 to 10 rings and

two slabs. The size of cement ring is varied from 14” to 21” height and 3 ft. diameter.

The business was high from October to May whereas the lowest was from June to September. Their supplies

had increased compared to the previous year. The customers were mostly villagers from neighbouring 3 to 7

VDCs. The poor people, according to them received support from local Village Development Committees

(VDCs) through pro-poor support mechanisms. Some of them sold rings on instalment basis to selected

customers who had to pay within a month of purchasing goods. The majority of them intended to expand

their business in the coming years; however, they did not have a definite expansion and business

promotional plan for their business. However, small scale ring producers showed interest in having access to

bank loans for business expansion.

Few of them had coordinated with local VDC and NGOs but the majority of them didn’t work in coordination

with government and NGOs and neither of them had ever bid for contract in NGO or government.

Product Offering

Ring producers sold cement rings, slabs (cover), roofing tiles, cement poles, ventilation and cement blocks

and they mostly sold their own products. The hardest part for them was setting rings accurately in a frame

and pulling out moulds from the rings. They said that cement rings were used for other purposes such as

making garbage collection pits in urban areas, constructing wells for drinking water, constructing cattle

feeders and water collection tanks. Customers were primarily responsible for the transportation of rings,

slabs and other related materials. Sometimes ring producers transported rings via their own bullock carts

and tractors up to customers’ location and charged extra money for it. In one trip, they could usually

transport rings and slabs sufficient to construct one latrine. Delivery of materials was not easy and thus they

preferred to use their own drivers for delivery rather than assign an outsider to do so.

Input Suppliers

Cement ring, tile and slab industries mostly required mould, sand, gravel, cement and iron rods as input

materials. Out of six ring producers interviewed in the Terai, some furthermore supplied hardware materials

such as cement, iron rod, pipes and cleaning materials and some also supplied pans with a slab. The ring

and slab producers purchased sand and gravel from nearby rivers and streams. Similarly, district head



quarter and sub-district level business centres had traders who supplied hardware materials like cement,

iron rod, pipes, pan and cleaning materials in the districts.

Latrine Customers

Ring producers usually built latrines for consumers when they built new houses or if they were hygiene

conscious. They said that there had been increase in construction and use of latrine in recent years because

of rising awareness among people, GoN policy, dignity and pride of latrine owners while arranging sons

and/or daughters marriage in the Eastern Terai. The construction was high in the months of October to June

and low from July to September i.e. low during the rainy season. Most consumers in the Terai districts were

from the middle class families from the nearby villages within the reach of few kilometres distance from the

place of ring production (0-15 km). Ring producers at the Indian borders supplied their products to Indian

costumers as well.

According to ring producers, consumers had some knowledge about latrines; they knew what else they had

to purchase besides rings for latrine construction; however, consulted them in those matters at times.

Promotion and Sales

Personnel linkage, quality products delivery and goodwill were found to be the major promotional activities

of most ring and slab producers. Few of them displayed sign boards and visited government offices such as

VDCs and WSSDO. All ring and slab producers kept their products in stock and showed physical products

and production procedure to consumers who visited their production site. Some of them provided different

sized rings with varying heights, 14” to 21”, and consumers had choice to buy.

Similarly, 80 percent of ring producers produced tiles, cement bricks and ventilation. Few of them

constructed toilets using their own products and used constructed toilets for demonstration to increase their

sales. While discussing about price negotiation between ring producers and customers, they said that they

either reduced sales prices or provided transportation facilities to costumer as the products promotion and

sales.

Finance and Business

The average profit that they made per annum from total sales ranged from around NPR 200 thousands to

around 250 thousands out of which 10 – 20 percent was related to sanitation items. Their customers

typically paid in cash but sometimes, they also bought on instalment basis which was not very common.

Their customers bargained on price and mutually agreed on some price after bargaining.

There was no system of credit for sales. The amount of rings they kept in stock depended on market

situation and most of them did not take loan for maintaining stock. Discussion with financial institutions

revealed that they had provided loan to wholesalers/retailers, ring producers and for construction of

buildings. They did not provide loan for latrine construction but cooperatives were positive about providing

loan to its members upon request. The process for ring producers to get a loan was felt to be cumbersome

however as it was time-consuming and required collateral which was not easy for these entrepreneurs.

Tile, ring and slab producers had initially started their business with their own investment but later, some of

them had taken loan from commercial banks. The banks charged them up to 12 percent interest rate



whereas the cooperatives charged up to 18 percent annually. Whenever the production remained in stock,

producers experienced economic problems and input suppliers would not provide inputs for long on credit.

Generally, producers repaid their previous credit without fail for inputs such as cement and rods and

received inputs for their product production on credit. Ring producers shared that the demand of their

products, especially concrete rings had increased by 20 - 30 percent in recent years which had ultimately

promoted their business. They mostly paid their staff on a monthly basis however some of them paid based

on results i.e. masons were paid NPR 50 – 100 per ring production. Masons were paid on a weekly basis

whereas labourers were paid a daily wage. They ordered items whose demand they predicted would increase

in the near future. The biggest worry they had about their business was the fluctuating market price of raw

materials and fluctuating demand from customers. All ring and slab producers were interested in promoting

their business to fulfil the demand for sanitary products in the days to come.

2.2.5 Masons

General Information

The masons identified in the study were also all men and had engaged in agriculture works and had later

started working as a labourer and then finally started working as a mason. Their experiences ranged from 4

to 20 years. Most of them worked on a daily wage basis. Some masons who were working as contractors

had 8 - 15 workers working under them. The majority of them had not received any formal training of a

mason and learnt the necessary skills through experience.

Their work peaked after major festivals like Dashain, Tihar and Chhaith from October to November when

there was an increase in construction of new houses. The construction work was high during the dry season

as well since they could do construction works in dry season without being hindered by rainfall and had

longer days for work.

Service Offering

The major services offered to people was the construction of buildings while some of them regularly offered

the service of latrine construction as well when needed. Those who worked as contractors hired workers for

construction. In the mountain districts, a mason offered his services for NPR 700 – 1000 per day and

similarly, in the hills for NPR 600 – 800 per day. The wage rate of a mason in the Terai was relatively

cheaper than in the hills and mountains averaging 500 NPR but going up to 800 NPR in certain areas.

Masons who worked on a monthly basis earned NPR 8000 - 10000 per month. Those who worked on a

contractual basis i.e. unit basis received NPR 50 - 100 for casting one cement ring from cement ring factory

owners. When masons took responsibilities to build complete latrines, they charged within a range of NPR

5000 - 15000 per latrine for mason and labour costs.

The commonly built latrines were water seal pour flush latrines and traditional pit latrines. As far as their

role in latrine construction was concerned, they were mostly involved in installing plinth level (pan) and

constructing walls and roofs. Some masons, mostly in the hills and mountains, mentioned setting pan

(squatting base) as the most difficult part of latrine construction. Some mentioned roof and walls to be the

most difficult aspects of construction. Those who could guesstimate said that the proportion of income they

earned from sanitation related work ranged from 20 - 35 percent. In the perception of the masons, there



was no shortage of workers for their job and they had adequate machinery and equipment to construct

latrines. They were positive about developing women masons by providing training so that women

customers could easily communicate with women masons about their needs of toilets and kitchens. Such

provision would make women masons easily available since men mostly go for foreign labour.

Customers

In the Terai, the majority of masons built all the parts of latrine but some did not build the pits (customers

built it by themselves using labour), whereas in the hills and mountains masons were hired for different

tasks in construction. Their usual customers were the middle class and high class families. They said that

customers had options to choose among different masons and that they mostly chose the sincere, skilled

and honest masons. They were usually paid immediately after the completion of construction work. Masons

had not yet bid on government or NGO contracts.

Inputs

Customer themselves decided and bought necessary items to build latrines but sometimes

wholesalers/retailers helped them make decisions and choose items. The items such as pans and cements

were available from traders in a nearby city, whereas sand and gravel were available from tractor owners

who bought from a nearby river. Customers paid 1500-1800/tractor for sand and NPR 2500 to 4000/tractor

for aggregate as transportation cost depending on the distance. Additionally, customers were responsible for

any damage caused during transportation.

Marketing and Promotions

Masons had never done any promotion to sell their products. They did not compete with other masons and

regarded themselves as very sincere in their work. They believed that mason services could be better

marketed to the poorest households through VDC or governmental subsidy. Some masons had contact with

wholesalers/retailers and got new customers, mostly in case of the Terai districts.

Business Management

Latrine construction has been a good business for masons, but they hoped that it would get better. They

expected that its scope would keep on rising because of construction of new houses and therefore more

toilets being constructed. Most of them had never taken any loan. Masons feared that other masons would

distract their clients. The majority of them had no concrete plans to expand their business nor had received

any training related to business expansion. They agreed that such sanitation services could be expanded if

awareness was raised among people and if collaboration was done among different people. Some masons

believed that the role of women could be increased in that sector and they perceived that women could

provide cheap labour; however, some masons were not in favour to increase the role of women as masons,

as they felt that women were slow at work and caused many accidents. Masons had no insurance provision

for their works in their area. They had no definite plan to expand their business at the moment; however,

they said that the training opportunities could, to some extent help them expand their work and services.

The majority of them did not have strong links with retailers and wholesalers.

The issues related to technology, cost and supply chain has been summarized in table 11.



Table 11. Issues related to technology, cost and supply chain

Technical/User Challenges Cost/Affordability Supply Issues

Mountains

• Insufficient number of masons available to construct latrines in Jumla district

• Low technical skills of masons for pan and pipe fitting and mortar preparation (cement, sand and gravel)

• In the High Mountains, water seal pans are not workable due to low temperatures. Ecologically suitable latrine design is not available

• The present latrine technology are costly and need to develop cheaper options and maximise the use of local materials

• Community people would like to adopt local materials and labours

• Poor people are reluctant to pay for cement, pipes and pan because of past subsidy practices

• High cost of construction materials.

• No loan available from financial institutions to households level, however hardware suppliers had access to loan

• Difficult to transport material and high transportation cost (air lifted or/and mule).

• Cement, pipes, pans and iron rods are not easily available when required

• Damage and loss of materials

• Takes long time to supply materials from regional hubs such as Nepalgunj and Surkhet, which is beyond the capacity of ordinary people

• In rainy and winter season, no or limited air flights and difficult to get construction materials

• No market centre nearby village and materials are not available in local shops

Hills

• Poor technical skills of masons

• Leakage and poor pan/pipe setting

• Limited latrine design option

• Relatively high cost of materials due to transportation from hub in Terai

• Materials are not available and poor people had problem to cover latrine construction

• No linkages with financial/ cooperatives/ saving & credit groups

• Difficult to transport materials from district and sub district level

• High time consumption for materials transportation using man and mule

• High costs of transportation

• Mostly depend on either manual or mule transportation.

Terai

• Poorly ventilated

• Heat inside latrine due to roofing materials (GI Sheet)

• Low cost technology was not demonstrated

• Limited or no linkage of masons between customers and wholesalers

• Limited or no market/sales promotion

• Difficult to get loan from financial institutions by for building latrines and by ring producers; however wholesalers/retailers had access to loan

• Existing latrine design does not solve problems associated with high ground water table, flood and water logging

• Sanitary materials’ cost are unaffordable by the poor

• In rural area there are limited/no strong suppliers

• No linkages with financial/ cooperatives/ saving & credit groups to finance latrine construction

• Breakage of materials

• Poor supply of construction and cleaning materials in rural areas

• Difficult to transport construction/sanitary materials during rainy season



Technical/User Challenges Cost/Affordability Supply Issues

Terai landless

• Inadequate and limited skills by people to build latrines by themselves

• High latrine costs and no low cost option available.

• No or limited land for latrine construction (Dalits: Mushar, Sahani, Dhobi etc.)

• Can afford labour and local material cost but unable to pay for non-local materials and masons

• Materials breakage • Producers unavailable at nearby

places and had to pay higher cost of transport

Chapter III. Discussion, Conclusion and Recommendation


Chapter I I I . Discussion, Conclusion and

Recommendations This chapter presents the overall analysis of findings from the consumer preference study and the supply

chain analysis study. Moreover, the challenges in establishing a good sanitation market (from consumer and

supply chain perspectives) are highlighted along with the possible strategic directions.

3.1 Discussion of the Major Findings of the Consumer Preference Study

Socioeconomic characteristics

Latrine use in communities differed across different economic strata. The hills and mountains faced more

difficulties in fetching water. People in the hills and mountains had relatively low access to household assets

such as radio and television.

Decision making practice

Males were more involved in decision making as compared with females in all ecological zones on major

household activities including decisions on latrine construction and maintenance. In addition, male members

of many households had gone abroad for work which further created difficulties for women to make

decisions about latrine construction. Even for those females who could decide on their own, they faced

difficulties in transportation of construction materials and finding necessary labour (e.g. masons) for

construction without having male members at home.

Latrine construction

Financial barrier was the major constraint for latrine construction. Moreover, in case of the hills and

mountains, people faced difficulties in fetching masons. The majority of households in the hills and

mountains had to travel to the district headquarter for purchasing latrine construction materials. They

further faced difficulties in transportation of the materials. People in the Terai had relatively easier access to

markets for purchasing and transporting latrine construction materials. Thus, the focus should be on making

construction materials easily available in the hills and mountains.

Defecation and hand-washing practice

Non-latrine users practiced open defecation in open areas such as bushes, river banks, forest areas, open

grounds and paddy fields. The elderly and children defecated along road sides as well. This practice is likely

to contaminate water sources and cause diseases that are transmitted by faecal-oral route. However, such

practice was gradually decreasing. Hand-washing with soap and water was more common among those

households that had latrines. Many people in the Terai washed their hands directly in ponds and rivers after

defecation which in the long-term might bring serious health hazards. Thus awareness about hand-washing

practice needs to be raised, especially the importance of hand-washing with soap and water at critical

junctures. Furthermore, the marketing of soap and handwashing facilities was required.



Knowledge and perception of latrine construction materials and use

The majority of respondents in all ecological zones were found to have known about the use of materials for

latrine construction. However, they mostly knew the type of materials used as per the construction practices

and latrine designs prevalent in those areas.

People had better knowledge about the benefits of latrine use. The most common benefits of latrine use as

identified by the participants were increased prestige, improved sanitation, saved time, improved health etc.

However, some people felt that use of a latrine was tedious since they had to wait in a long queue for their

turn. Furthermore, some people found it quite convenient to defecate in the open. The female respondents

perceived more benefits of a toilet as compared with male participants. The general awareness and

perception about latrine use can be improved by the joint effort of WASH related NGOs and the local

government through advocacy, communication and social mobilization of sanitation programmes.

Regarding the reasons for not having a latrine, cost of latrine construction was a major issue in all ecological

zones. In addition, people in the Terai said that unavailability of land was another important reason for not

constructing and using a latrine. Some participants in the hills and mountains mentioned lack of information

about places to buy toilet construction materials and that people lacked materials for construction. This

signifies the importance of dissemination of information, especially in the hills and mountains, about the

type of materials required for latrine construction and the place to purchase them.

Construction, use and maintenance of latrine

Masons were mostly employed for latrine construction. In the hills and mountains however, it was very hard

to fetch masons. The family members were also involved in latrine construction. In case of the hills and

mountains, local NGOs assisted in latrine construction by providing technical assistance. The maintenance of

latrine was another issue raised in all ecological zones. The majority of participants from the mountain and

hill districts mostly mentioned using water and brush only. People in the Terai mentioned using disinfectant

chemicals (e.g. phenyl) as well because of easy access to markets in the Terai.

3.2 Discussion of the Findings Related to Supply Chain Analysis

3.2.1 Products

Product refers to construction and maintenance materials needed for toilets. People had general awareness

about the type of products necessary for latrine construction however the access to such products from

nearby markets was a major challenge. Integrated effort from NGOs and local bodies (VDC and district) is

required to strengthen the supply chain market to increase access to such products. Reduction of the cost of

products is also recommended as the survey revealed that financial barriers led to reluctance in latrine

construction. The key qualities the respondents desired in latrines were affordability, durability, ease in

construction and maintenance.



3.2.2 Pricing

Economical feasibility is a key to development initiatives and latrine construction is not an exception. High

cost of latrine construction materials, high transportation cost (as people had to carry the materials up to a

long distance, particularly in the hills and mountains), increased cost of materials because of damage of

materials during transportation and high construction charges (relative to people’s economic condition)

made the overall price of latrines high. The baseline data showed that the majority of people in the hills and

mountains belonged to the low wealth quintile. Thus, the price of latrine is a critical factor for latrine

construction. Even for people in the Terai who belonged to medium to high wealth quintiles there is a need

to develop a range of options with different costs to suit their abilities. The type of products offered could

encourage households to invest in latrine construction. As per the calculations made from the survey data,

an approximate price option for latrine construction (considering the ecological differences) should range

from NPR 20,000 to 30,000.

3.2.3 Place

The study shows that the key players in latrine construction in communities are the mason/artisans and the

hardware suppliers including cement ring producers. Most of the masons working as masons in the districts

didn’t have any formal training except for a few in the Terai and mountains, the key reason being that most

of the trained masons had migrated in search of better opportunities. They depend on the construction of

latrines and houses for their earning.

Most of the people and masons depend on hardware suppliers for materials needed in latrine construction.

The hardware suppliers interviewed in this study stocked latrine construction materials which comprised up

to 20 percent of their total stock and average monthly sales volumes ranged between 10-20 percent from

the sanitation related business. Most wholesalers/retailers supplied hardware materials up to 15 km distance

radius and a few of them supplied to neighboring districts as well. Those suppliers used certain distribution

channels to enhance supply of sanitation products and services. Their stock values and willingness showed

that they would probably expand their businesses in the future if the demand of people for latrine

construction materials increased. Wholesalers and retailers resided in major market hubs and headquarters.

Thus, there was no easy access to markets in the villages. People had to travel a long distance in the hills

and mountains to reach market hubs and headquarters to buy latrine construction materials. It was however

noted that businessmen were willing to expand their businesses on the periphery of district headquarters as

well.

3.2.4 Promotion

Local Resource Person (carrying out demand triggering), Female Community Health Volunteers (FCHVs),

mass media (radio and TV), and Social Mobilisers were the best sources of sanitation and hygiene

information. The survey revealed that these sources were adopted for promotion of sanitation. Additionally,

supply chain actors promoted their products and services through meetings and discussions with customers.

Some used sign boards and some displayed the products outside their stalls. The promotion of sanitation

market is thus a shared responsibility.



3.2.5 Policy

The current sanitation policies, strategies and action plans are concentrating on building and promoting

toilets by creating demand for sanitation. However, there is an equal need to promote the private sector to

ensure availability of construction materials and skilled masons in the rural areas; to support technology

innovation considering the ecological zones, wealth quintiles, and disability status; and to pursue legal

channels in making approval of house construction design and implementation subject to inclusion of toilets.

Informed choice materials with details specifications should be designed, documented and disseminated to

the masons and or to the households (household also build their latrines). The NSHMP has recognised the

role of private sector but their participation is limited in the development of district strategies. Private

sector engagement can be increased in rural sanitation business by identifying district specific action areas

for strengthening sanitation supply chains. The study also indicates a greater scope for financing latrine

construction and business development that can be enhanced through networking and coordination with

financial institutions such as cooperatives in the rural areas. Policy changes may be required to engage

cooperatives in sanitation business and financing for latrine construction.

3.2.6 Partnership

Improvement in sanitation depends on collaborative efforts from household members, the government,

vocational training institutions, local NGOs, youth clubs, local FM, local leaders, female community health

volunteers, banks and cooperatives as well as donor agencies. The survey revealed that those places which

had better evidence of stronger partnerships had better sanitation status. Such partnership was more

evident in the hills and mountains through the fast pace of the sanitation movement.

3.3 Role of Local Government and Line Agencies in Supply Chain

Till now, local government and line agencies, including WSSDOs are mainly involved in demand creation and

they are less involved in supply chain strengthening. Local government has a major role in market-based

solutions which involves discussing effective use of public funding in sanitation with the aim to reach those

households and communities where market access and product and service affordability remains most

challenging. Local governments (DDC at district level and VDC at community level) can foster support

mechanisms such as linking communities to suppliers of latrine construction materials which are not locally

available (e.g. pan, pipe, cement). Government agencies can facilitate in simplifying the process of

construction material purchase and transportation, to make it less expensive. For example, VDCs can buy

construction materials in bulk amount and facilitate material transportation to rural households at an

affordable price. They can link businesses to households that are ready to purchase. In addition,

government line agencies can organise skill-building trainings for supply chain actors, especially business

entrepreneurs to promote and market their products. On top of that, government agencies (responsible

quality assurance body) should carryout their responsibility to monitor the quality of products available in

the market.



3.4 Overall Analysis

3.4.1 Knowledge Challenge

The applicability and transferability of any health promotion activity is very much dependent on the level of

local knowledge of implementers and beneficiaries. People were aware of the health benefits of using a

latrine. In addition, privacy, improved prestige, convenience and time-saving were other motivators for

using a toilet.

It is important, when addressing sanitation and hygiene promotion efforts, to consider the ‘composition’ of

the communities. Many disadvantaged communities are characterised, among other factors, by their

historical legacy. The legacy that people carry is influential on attitudes of people towards others as well as

the conditions in which they live. For example, some people in the Terai believed that there were no

problems associated with open defecation as they had been practicing it since long. The study identified

three major behavior practices that were believed to be more detrimental to poor health than others. Firstly,

the tradition of open defecation which has shaped their level of knowledge. Secondly, the fact that the

practice of defecating in the open was generally an accepted practice. Thirdly, the practice of hand washing

with soap and water was even lower in case of open defecation. Also people in the hill and mountain districts

said that they were not constructing toilets because of inadequate money, however many people in the Terai

said they were satisfied with open defecation. Many respondents expressed the fact that existing latrines

were too smelly and dirty, and the option of defecating in the open was much more appealing. The level of

awareness and knowledge about disadvantages of open defecation was different in different geographical

locations. An unusual explanation offered for not having a latrine was that the practice of open defecation

was considered a ‘social activity’, especially for women. It was mentioned that women made excuses to

leave home together in search of firewood or some other product and used that time collectively to defecate

in jungle and chat together.

In many communities, especially in the hills and mountains, the present ODF declaration movement bound

households to construct toilets. VDC initiatives to force households into constructing toilets had made a

positive effect. This finding supports the importance of generating political will for consumer’s performance

and sanitation supply chain.

Regarding knowledge, people in the hill and mountain districts were less aware about the use of pans, sand,

bricks and cement in constructing toilet as these materials were not used by them much in comparison to

the Terai districts. The knowledge of use of zinc plate was high in the hill and mountain districts; however,

in the Terai districts, people had negative perception towards the use of zinc plates due to its tendency to

heat their toilets.

Perceived benefits of latrine use included increased comfort, privacy, convenience, dignity and safety for

women and men along with the rise in social status of people who adopted improved sanitation and hygiene

practices.

Most latrine non-users desired to build a toilet. They believed masons, social mobilizers and neighbours who

had constructed toilets were the main sources of information and advice for toilet construction. Very few

households did not know whom to ask for such advice. Local NGOs and social mobilizers working on WASH



at community level should be mobilized for supporting informed decision among consumers. Despite the fact

that households across all study districts were less satisfied with their technical skills on latrine construction,

households still believed masons were the main source of information.

3.4.2 Technology Challenge

Most households discussed within their family about construction of toilets in their home and the majority of

them preferred flush type toilet. There were technology challenges in meeting people’s desire along with a

low level of knowledge. Keeping in mind the geography, culture, and technology, sanitation supply chain

should be varied according to the context of the location and perceptions of consumers.

Transportation of toilet construction materials in the mountain and hill districts was another challenge. Also,

many communities in the hills and mountains had inadequate water for toilet cleaning. Almost half of the

households purchased toilet construction materials from district headquarters. It meant there was no market

access for sanitation supply chain in nearby places for the community people. Sanitation marketing

approach has to be developed within the reach of communities.

The study revealed that the existing technology options were not useable by the physically disabled and it

was difficult for the elderly and pregnant women to use the facility as well. Hygiene and sanitation related

infrastructure should be gender, children, disabled and old-age people friendly. In addition, pour-flush toilets

were not applicable for the high mountains (e.g upper Dolpa) where water freezes during the winter and

ordinary plastic pipes crack due to low temperatures. So, in this situation an ecological option of toilet

design and materials is needed to increase access to sanitation facilities for all.

The construction and maintenance of public and institutional toilets was another challenge in the study

districts. People might have the perception that all toilets are nasty and smelly because of public toilet they

might have visited and discourage them to build toilets in their households.

Ecological toilet offers an option for people who invest on chemical fertilizers in food production. In Nepal,

handling of human faeces is a taboo and it is difficult to convince people that human faeces can be handled

safely once it is properly composted. Urine is traditionally believed to have “healing” powers. Animal urine is

used in religious performances and handling urine is not a “taboo”. Urine has high nutrition content and

therefore it is a very good fertilizer. There are experiences that support that urine can be used as a pesticide

to protect plants. However, there are limited practices of using human excreta as fertilizers. There are small

debates on different latrine options in the communities. People generally perceive pour-flush latrine as an

ideal type and do not have knowledge on other options.

3.4.3 Affordability Challenge

There were numerous responses regarding subsidies being given previously which resulted in latrines being

misused. Some latrines were used for storage, some were abandoned. In addition, many others were

waiting for such subsidies to construct latrines.

Because of lack of adequate money, latrine non-users could not construct toilet at their households;

however, the majority of them were willing to build toilets. Though they perceived the cost of latrine

construction is high, the majority of households had not saved any money for latrine construction.



People mostly bought expensive goods during the major festivals like Dashain and Tihar (in the hills and

mountains) and Chhaith and Holi (in the Terai) and also during marriage ceremonies of any family members

such as sons and daughters. Programmes aiming at increasing the coverage of latrine use should target

such opportunities and extend support in making the purchasing process more easy and convenient.

3.4.4 Outreach and Fragmentation Challenge

The study identified that consumers were facing problems in collecting sanitation and hygiene materials. For

example, they had to travel to district headquarters to buy toilet pans, cement, etc., and they had to collect

sand from another location and stone or brick from another location. If all sanitation and hygiene promotion

materials were available in their own community, people would build toilets and start changing their

sanitation and hygiene behaviours. An approach of sanitation marketing and sanitation supply chain has to

be developed at the community level with convenient procurement of materials. This can be done in

partnership with public private sector and cooperatives.

In addition, the fragmentation challenge was also prevalent in case of finding masons. In hills and

mountains, a household had to rely on different masons for different tasks related to latrine construction

(e.g. stone collection, wall building, pan setting, RCC, door construction, etc.). As a result, it was quite

difficult to identify and hire adequate masons in the hills and mountains. In case of the Terai, a single mason

carried out multiple tasks because of which the cost of a mason was relatively cheaper.

3.5 Conclusion and Recommendations

3.5.1 Conclusion

The supply chain study needs to recognise consumer preferences as well to improve access to affordable

and appropriate sanitation products and services in rural households. The study has shown that households

without latrines would like to install latrine facilities and those who had latrines aimed to improve their

latrine facilities. This creates opportunities for the promotion of businesses in sanitation sector.

Use of locally available materials in all ecological zones was found high. However, wholesaler/retailers and

cement ring builders sold improved latrine construction materials in small volume mostly at district

headquarters. Entrepreneurs at the district headquarter and business hubs sold latrine construction

materials to customers who were 10 to 30 KM far and to those from adjoining districts in the central region.

Latrine construction work was done by mason/artisans who were not formally trained. Construction

materials and expensive goods (e.g. jewellery) were generally purchased by a household head, mostly

males, whereas staple food items were purchased by women as well.

People (mostly latrine users) usually had knowledge about commonly used latrines in their community and

nearby urban areas. Therefore, most of them had an opinion on their preferred latrine types and parts

(substructure, slab and superstructure). Some of the motivation factors behind latrine construction were

government sanitation policy, arrival of daughter-in-law in the family, privacy, health and sanitation.

Community awareness through local resource persons were very strong drivers for latrine construction and

their use.



Many people had the ability to afford latrine construction except for the poor households. However,

construction and/or upgradation of toilet facilities were not a priority for most non-latrine and latrine owners

in the study area. They prioritized investing their money on purchasing land, building houses and jewellery.

The supply chain actors (wholesalers/retailers) either inherited business run by their father or started

business as suggested by their relatives and friends. The concrete ring producers entered business when

they saw the scope of business and also after they received suggestions from development workers.

Mason/artisans transitioned from working as labour/unskilled workers. The supply chain was found to be

fragmented and there was little coordination among service providers due to the inadequate flow of

information, lack of WASH stakeholder stimulation and knowledge among the actors.

Materials for latrine construction were available in few hardware shops located in the district headquarter

and business hubs near highways. Latrine construction was increasing by 25 to 30 percent annually. Most

wholesalers/retailers had taken loan from commercial banks to expand business and keep stocks. Products

were mostly sold in cash and very little was sold in credit. They used hoarding boards, business cards and

show rooms to promote their products and services. Cement ring producers mostly demonstrated their

products at main entrance as their business promotion activity. In the hill and mountain districts, relatively

few suppliers were available in the district headquarter. Materials were supplied from the Terai via aircraft in

Dolpa district and the cost of latrine construction materials was many times higher than the actual price of

products.

Wholesalers mostly used trucks to supply latrine and construction materials from manufacturing sites to

shops; while consumers used tractors, auto rickshaws, and bullock carts as transportation means to

transport materials from shops to communities. Aircrafts were the main means of transportation in Dolpa

district while mules, donkeys and manual labour were used for material transportation within Dolpa and the

other mountain and hill districts. Mason/artisans available in communities mostly provided advice on latrine

types, materials required and construction of latrines.

3.5.2 Recommendations

Based on the findings and analysis of consumer preferences and supply chain, following recommendations

are made for the improvement of developing business opportunity and strengthening the supply chain with

some interventions through market0based solutions. The recommendations are presented in four main

areas:

1. Product and service options 2. Business model and supply chain interventions 3. Sales, promotion and marketing 4. Engaging stakeholders



1. Product and Service Options

a. Develop Technological Options of Low Cost Latrine with Standards

Affordable and accessible latrine products are likely to increase construction of toilets provided that the

products meet consumers’ desires. The cost reduction of product should come from research with standards

providing more than one technological option using available materials. The ecological variation, local

materials available, and climatic condition should be considered while providing technological options to the

community people. For example, GI sheets are less preferred in the Terai and water-sealed toilets may not

be feasible in the high mountains. Other upgrading options for current latrines users and higher income

households should also be considered. People were concerned about the problems associated with emptying

pits thus informed choice work should include emptying options.

The notion that the construction of sanitary toilets costs a lot of money and that they are therefore

unaffordable for the poor wealth quintiles living in villages needs to be eradicated. Thus, raising awareness

and demonstrating the actual cost of construction of simple toilets of different types is essential by

considering the ecological zones. The demonstration locations shall be in strategic place for demonstration

and replication effects such as at health facilities, VDC offices, schools, and business outlets e.g. ring

producers.

b. Enhance Mason Capacity and Skills

Most latrines were constructed by local masons with inadequate skills. Improper installation of pan and pipe

causes bad odour and leakages which discourages potential households to construct latrine and increases

latrine construction cost. Masons did not have proper knowledge of making mixture of cementing agent to

be used during latrine construction. Strengthening capacities of masons at the community level ensures

quality in constructing the latrine components and reduces cost of cement to be used in latrine

construction.

c. Upgrading Facilities for Safe Use by All

Not all latrine users were willing to invest in upgrading latrines. Offering simple options for upgrading helps

households to have higher quality facilities. Such improvements should focus on installing water

sealed/flush pan where there is traditional pit and it is suitable for the site conditions. In addition, not all

pour-flush (water sealed) latrines in communities are improved to an acceptable level of having no access

to flies or being environmentally safe. Constructing pits that are safe such that it does not provide access

to flies or contaminate ground or surface water is an important issue. Importantly, the needs of consumer

segments that face difficulties in using a toilet need to be considered, especially the elderly, children,

pregnant women, and people with disabilities. Simple adjustments can be made to toilets such as a guided

pathway for people who cannot see well enough, support structures for the toilet, or adjusted pans for

people who find it difficult to squat.



2. Supply Chain Interventions. a. Increase Capacity of Existing Supply Chain Actors for Sanitation Business Expansion

There were a number of supply chain actors active in selling sanitation materials in rural markets. These

were however focused in district, sub-district or highway market centres and only some suppliers, mostly in

the Terai, had linkages to community shops (general stores). The poor network among supply chain actors,

inadequate knowledge on sanitation business opportunities and weak linkages with financial institutions

were some of the key factors hampering the scaling up of business and enhancing outreach.

Entrepreneurship development and financial linkage might ensure business expansion and sustainability of

business. Though it must be noted that sanitation related sales made up a small proportion (up to 20%) of

the total business of the supply chain actors and therefore scope for a stand-alone sanitation business is

limited. Building network of cement and ring producers as well as masons and wholesalers/retailers would

support expansion of sanitary hardware market and promote the quality of technological options in rural

areas.

b. Develop Concrete Ring Producer for Complete Sanitation Solution

The purchasing and delivery process in sanitation market in the Terai districts were time consuming and

complicated. Promoting concrete ring producers located within the community or in proximity to the

community to sell and deliver all sanitation materials for latrine construction may be one of the options to

simplify the purchasing process. This may be achieved through one business or a combination of businesses

coming together.

c. Link Cooperatives for Supplying Sanitation Materials

Cooperatives can be targeted as focal business centres to reduce the complexity in transportation of

sanitation materials. The linkage of cooperatives with district headquarter-based hardware suppliers can

reduce transportation burden, cost and assure quality supply of sanitation materials in bulk amount.

d. Engage Women in Sanitation Business

Although none of the current actors in the supply chain were found to be women, women are involved in

various groups at the VDC level such as credit and savings groups. Linkages with such groups can be

explored to provide loans for the construction of toilets locally, which has not been happening so far. Also

women engaged in existing micro-enterprises may have potential to be developed as providers of sanitation

related hardware and consumable items at the local level, especially as it was found that the outreach of

sanitation supply chain actors to customers at the local level was limited in all districts.

e. Develop Existing Entrepreneurs for Sanitation Business at the Local Level

Since a major bottle neck in building toilets as well as in maintaining toilets was the inaccessibility and

unavailability of markets in close proximity of communities, local level suppliers of sanitation hardware and

consumable items need to be developed. In order to maintain sustainability of such businesses, it would be

best to identify existing businesses and facilitate them to expand and include sanitation related business. As

the study found that even in major market centres, most businesses were not stand-alone sanitation



businesses, rather sanitation is a part of their larger business (making up to 20 percent of the profit), in the

villages, marketing of sanitation goods could be added to existing businesses. Here it may be possible to

target women entrepreneurs (see d. above). Moreover, such shops should also stock soap and market its

use.

3. Sales, Promotion and Marketing a. Target Seasonal Sales Opportunity

Sanitation demand creation, sales and promotion activities need to be implemented during times such as

marriages, festivals (e.g. Dashain, Tihar, Chhaith and Holi) and immediately after crop harvesting season

when people have cash in their hand and are more receptive to ideas. Linking with financial institutions (e.g.

local level saving and credit groups) available in areas can ease the cash flow burden. Sales and promotion

activities need to be planned accordingly to take advantage of such times.

b. Promote Product Display of Latrine Options

People believe in what they see. The display of different types of latrine (options) helps to deliver message

and promote latrine types. The display might include low cost options of shelters. On one hand, suppliers

can display latrine product options in their shops making it more appealing to consumers and on the other

hand, cheap latrine options can be built in public places (e.g. VDC offices, health facilities, market centres

and location of cement ring producers) so that people can see the available latrine options.

c. Develop Motivating Communication Tools

Clear and encouraging messages that ensure their safety, status and other factors help motivate people to

build latrines. The messages can guide consumers to select appropriate latrine based on affordability, access

and other features. These messages should include issues such as health, sanitation, privacy, comfortability,

safety and availability of construction materials. Communication messages should also target the use of

soap with handwashing after defecation. The communication messages needs to be developed, whenever

and wherever possible, using local dialects and incorporating the cultural context with pictorial illustration.

Moreover, communication messages need to be linked with demand creation events to enhance outreach

and its effectiveness. By doing so, the knowledge gap of the communities about appropriate options will also

be addressed.

d. Provision of Insurance on Damage During Transportation and Construction

Consumers themselves have to bear the damage occurred during transportation and installation. Provision

of insurance for such damages could be one of the important sales promotion strategies. However this is

practically difficult to implement.



4. Engaging Stakeholders a. Linking Sanitation Programme with LGCDP Programme

REFLECT sessions were running at Citizen Awareness Centre (CAC) in all VDCs under Local Governance and

Community Development Programme (LGCDP) through DDC/VDCs and municipalities and can be a good

platform for discussing and educating women on latrine options, cost and purchasing process. VDC social

mobilizers were responsible for facilitating REFLECT sessions. In coordination with the VDC and VWASHCC,

CAC can be used for delivering messages at household and community level.

b. Bringing Financial Institutions for Financing latrines

Most of the people in rural areas had access to micro finance institutions, cooperatives, saving and credit

groups. Different agencies were mobilising significant amount of revolving fund for livelihood enhancement.

These institutions and groups can be brought together for developing financing mechanism at community,

VDC and district level to finance households for latrine construction.

c. Mainstreaming Private Sector in ODF Campaign

Private sector involvement in sanitation campaign was very less. Their engagement was limited to selling

sanitation product as per demand without having any broader knowledge on its scope and market potential.

Increasing communication between demand and supply side actors would allow both parties to identify

opportunities to collaborate resulting in more households constructing latrines. DWASHCCs and VWASHCCs

can play a vital role in mainstreaming the private sector in ODF promotion campaign and supply chain.

d. Sanitation Agenda in VDC/DDC Planning Process

VDCs and DDCs follow participatory planning processes to develop plan and budget in each winter season

for the following fiscal year. In this planning process, Ward Citizen Forum (WCF) and political party leaders

are mainly engaged. There is a need to establish a strong link between WCF and VWASHCC to develop a

mutual understanding and to include sanitation and supply chain promotion in this planning process. Mostly,

WCF and political parties place a higher priority for road construction and electricity which overshadows the

sanitation agenda. Thus, there is a need to orient WCF and political leaders about the participatory planning

process and that sanitation is a prime agenda for allocation of budget to improve the quality of life. VDC

level planning process can also be used to address issues such as lack of land for the people in Terai who do

not own any property and are living on government land; the VDCs can, for example, allocate government

land to this poorest segment for construction of a shared latrine and provide materials for construction

through the pro-poor mechanism of a VDC. The labour would be willingly provided by the landless people as

indicated in the study.

e. Engagement of Media on Supply Chain

The media (printed and aired) were playing a vital role in supply chain promotion, not only the demand

creation. They can disseminate product prices, availability of sanitary materials and masons and uses of

local materials to construct an improved latrine.



Table 12 summarises activities that may be possible to undertake for each of the recommendation areas.

Implementing any of the activities would need to be looked at with regards to the context and practicability

of implementation and programme priorities.

Table 12. Proposed activities under each recommendation

Recommendation Proposed Activities Difficulty

Product and Service Options

1

Develop technological options for low-cost latrines with standards

• Design and test prototype of entire latrine construction • Develop simple technology and cost information system

considering the ecological zone • Orient and train supply chain actors on new option • Develop advertising materials for new products

Medium

2 Enhance mason capacities and skills

• Design practical refresher training course for mason • Train masons on quality installation of key components

of latrines Low

3 Upgrade facilities for safe use by all

• Problem identification in latrines and setting up simple steps/ process for upgrading latrines for safe use by all, especially people with difficulties in using a toilet

• Training local resource person and mason for technical advice

Medium

Supply Chain Interventions

1

Increase capacity of existing Supply chain actors for sanitation business expansion

• Train supply chain actors (wholesaler, retailer, ring producer) in business skills: business plan development, preparing marketing strategy etc. for strengthening their entrepreneurship

• Facilitate linkages with financial institutions for business scaling-up

• Exposure tours for ‘seeing is believing’ approach to replicate successful business.

• Network development among similar business actors

Medium

2

Develop concrete ring producer for complete sanitation Solution (Terai district)

• Work closely with one to two ring producers, trailing business model and allow field staffs to understand new mode of business for gaining confidence

• Facilitate formal and informal linkages with government and non-government sector

• Identify business gap and support strengthening for improvement

• Establish network among ring producers to enhance their technical capacity to supply varieties of products

• Develop roster of cement ring producers and encourage them to produce quality products and establish an award mechanism for their contribution to avail sanitary products in rural areas

Medium

3

Link cooperative for supplying sanitation materials

• Identification of potential cooperatives for their engagement in sanitation market business

• Link hardware suppliers/ wholesaler based in district headquarter and business centres with cooperatives

Medium




4 Engage women in sanitation business

• Facilitate women’s saving and credit groups to provide loan to households for construction of toilets

• Identify existing women micro-entrepreneurs and developing them to provide sanitation related hardware and consumable items

Medium

5

Develop existing entrepreneurs for sanitation business at the local level

• Identify existing entrepreneurs at the local level with potential to expand business

• Develop linkages of entrepreneur to sanitation related hardware and consumable goods.

Medium

Sales, Promotion and Marketing

1 Target seasonal sales opportunity

• Develop work plan, business calendar and marketing campaign that match with season

• Link consumers with financial institutions • Develop realistic sales target to address seasonal sales

target • Facilitate supply chain actors to maintain inventory to

meet demand

Low

2 Promote product display of latrine options

• Physical product display at sales centre, community centre

• Ensure business investment and lead on promoting product display

• Facilitate and support sanitation supply chain actors to participate in trade fairs and sanitation fairs in coordination with FNCCI

• Facilitate in using marketing brand

Medium

3

Develop motivating communication tools

• Design pictorial information booklet and posters on available latrine options and cost options

• Develop social marketing message to draw attention that actually encourages households to purchase latrine in local dialect incorporating culture wherever and whenever possible

• Link marketing messages and information sharing on the materials and cost with the communities during the triggering workshop

Low

Engaging Stakeholders

1 Link sanitation campaign with LGCDP programme

• Orient VDC social mobilizer on sanitation and hygiene who are facilitating REFLECT session at CAC

• Organise sanitation lectures for CAC members by WASH stakeholders.

• Facilitate and support in organising rallies and awareness campaigns through women and DAG members at CAC

• Orient Ward Citizen Forums along with VWASHCC members and local political leaders that sanitation shall be an agenda in participatory planning process in VDC/DDC plan formulation process

Low




2 Bring financial institution for financing latrines

• Identify potential financial institutions, saving and credit groups willing to finance latrine construction

• Facilitate in developing financing mechanism • Facilitate and support organisation of interaction

meeting with financing institutions and groups

High

3 Mainstream private sector in ODF campaign

• Lobby with local line agencies and WASH stakeholders for meaningful representation/ participation of private sector in DWASHCC, VWASHCC.

• Support private sector to engage in rural sanitation promotion by encouraging them to establish outreach in rural area and production centre (cement ring producers)

• Encourage media to promote sanitary supply chain informing about availability of materials, their costs and technology option

High


References IDE. (2007b). Supply Chain Assessment for Sanitary Latrines in Rural and Peri-Urban Areas of Cambodia:

Prepared for The World Bank Water and Sanitation Program.

Oyo, A. (2002). Creating successful private sector supply chains: a resource guide for rural water supply and sanitation practitioners: World bank.

SNV. (2012b). Rural Sanitation Supply Chains and Finance, PROGRESS BRIEF

SNV. (2014). Report on Preliminary Assessment of Sanitation and hygiene situation in Rukum and Banke district April 2014. Nepal.


Annexes

Annex I. Tools used for the Study

1. FGD guideline with community people

FGD Check list-CP.docx

2. Interview guideline for Supply chain (business-importer, wholesaler,

retailer)

Supply chain- 27 Oct 2014.docx

3. Interview guideline for mason

Mason-Questionnaires_final- neplai.docx

4. Interview guideline for ring producer

Ring producers.docx

5. Checklist for financial institutions/I-NGOs

Check list for Financial institution.docx

Check list for I-NGOs.docx

Checklist-FNCCI.docx

6. Checklist for estimating latrine cost

Check list for Latrine-Construction Costs.docx


Annex II . Supply chain mapping of study districts

Sanitation supply chain actor mapping, Dolpa district


Sanitation supply chain actor mapping, Jumla district


Sanitation supply chain actor mapping, Salyan district


Sanitation supply chain actor mapping, Rukum district


Sanitation supply chain actor mapping, Rolpa district


Sanitation supply chain actor mapping, Kalikot district


Sanitation supply chain actor mapping, Sarlahi district


Sanitation supply chain actor mapping, Mahottari district


Contact Information

SNV Netherlands Development Organisation

Nepal Office

Address: Jawalakhel, Lalitpur

P.O. Box 1966 Kathmandu, Nepal Tel. +977 (0) 1 5523444 Fax. +977 (0) 1 5523155 Email. [email protected]

Contact person: Nadira Khawaja, SL ([email protected])

SNV is dedicated to a society where all people enjoy the freedom to pursue their own

sustainable development. We contribute to this by strengthening the capacity of local

organisations.

a report on consumer preference and supply chain analysis ... ·...

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