Published in 2020 Lack of integrity and corruption in the water and sanitation sector affect who gets what services, when, where, and how. They impact negatively on the delivery of the UN’s Sustainable Development Goal 6, on sustainable economic development, human health and well-being, and reduce the effective use of limited financial, human and water resources. The costs are disproportionately borne by the poor and by the environment. Only a well-functioning and corruption-free water sector will be able to overcome the enormous challenge of reaching universal access to water and sanitation services by 2030. Further, corruption in the water sector affects the ability to meet many of the other SDGs. 2019 heralded the arrival of a new Executive Director at WIN, the appointment of new staff members, and the reinvigoration of a collaborative culture within the diverse and enthusiastic team in Berlin. The year saw the expansion of work in Latin America and Kenya, the revitalisation of work in Benin, the deepening of work in Bangladesh, the development of a new assessment tool for water utilities, and the conceptualisation of a corruption risk index for cities. It also saw the completion of the Multi-Country Water Integrity Programme (MCWIP) funded by the Swiss Agency for Development and Cooperation (SDC). We and our partners worked on public finance management (Kenya), school sanitation (Bangladesh), water utility governance (Latin America, Kenya and Benin). We expanded our strategic partnerships, including through signing a Memorandum of Understanding with the African Ministers’ Council on Water (AMCOW). Download full annual report:

A NOVEL METHOD TO MEASURE CORRUPTION IN URBAN WATER AND SANITATION Is corruption a real threat for water and sanitation services in our city? Is the situation improving or getting worse? How does our city compare with others? Can we even do something about it, and how do we start? These questions are often asked but are actually difficult to answer with objective and reliable evidence. Corruption is a concealed act by definition. It doesn’t easily lend itself to measurement. It’s nonetheless costly and dangerous, as it skews planning, diverts resources, and protects incompetence. In the water sector, corruption can be deadly. CAN YOU IMPROVE WHAT YOU CAN’T MEASURE? Existing measures of corruption tend to focus on country-level reports of perception of corruption, provided by sources such as the Political Risk Service, International Country Risk Guide, and Transparency International’s Global Corruption Index. These are important tools to raise awareness and guide research but they are less useful when trying to examine and improve integrity in a given sector. To ensure sustainable and resilient water and sanitation services across cities, local governments and sector decision-makers need a better understanding of the corruption risks that undermine their efforts. They need reliable measures that can guide practical action. We couldn’t find this, so we’re building it. LEVERAGING INCREASING DATA AVAILABILITY AND ADVANCES IN ANALYTICS TO DEVELOP NEW MEASURES FOR INTEGRITY Big Data and advances in analytics are making new kinds of measurements of corruption and integrity risks possible. WIN is collaborating with the Government Transparency Institute to take advantage of these innovations and develop a Water and Sanitation Sector Integrity Risk Index (WIRI) for urban areas. The Government Transparency Institute has a proven track record in applying innovative quantitative and qualitative methods to researching and advocating good governance. They recently won the IMF Anti-corruption Challenge with an intelligence tool which uses big data to spot corruption risks in public procurement processes. WIRI partly draws on the methodology applied in this award–winning project. WIRI is a composite index, which is constructed by applying Big Data analytics to administrative data and survey datasets. WIRI offers insight across the three main integrity hotspots in the water and sanitation sectors: Public investment projects Recurrent spending supporting ongoing operations Client-utility interactions In developing WIRI, we benefitted from continuous feedback from an advisory panel of experts, including Cetina Camilo (CAF – Development Bank of Latin America), John Dini (South African Water Research Commission), Kasenga Hara (ESAWAS), Ricard Gine (SIWI), Sanjeev Narrainen (GCF), and Vincent Lazatin (CoST). Our new working paper explains the building blocks of the Water Integrity Risk Index and presents results for selected cities. Download working paper (pdf, EN) First results are very promising. The working paper shows that corruption risks in a particular city tend to change over time. WIRI enables us to capture even small variations in risk levels, thanks to the precision achieved by measuring corruption at the transaction level (such as contracts, customer interactions, etc.). In contrast, the measures of corruption perception widely employed in other indices tend to be persistent over time. The results in the working paper also show that corruption risks can differ significantly across different cities within the same country. This makes us cautiously optimistic about the prospects of selectively preventing corruption at the local level through carefully designed interventions. AN ACTIONABLE INDEX FOCUSING ON SECTOR-SPECIFIC CORRUPTION RISKS What makes WIRI a useful tool? Firstly, we have aimed to capture a comprehensive list of sector-specific corruption risks. Moreover, unlike other existing measures of corruption that predominantly focus on perceptions, WIRI relies on direct measurement of corruption risks. Finally, WIRI results are comparable across time and space, which enables policy-makers to track progress and benchmark different cities. These properties of WIRI make it a useful tool for: monitoring, auditing, and investigations of corruption risks; informing sector-wide policy decisions, for example on regulation and oversight; and supporting civil society and other stakeholders to hold governments accountable and advocate for better services BUILDING INTEGRITY IN CITIES: WIRI FOR YOUR CITY? In 2021, we aim to support a number of cities in applying WIRI. The aim is to support decision-makers get insight on how to improve integrity in the water sector and enable better service provision. We’re always seeking out new partnerships. Want to know more? Interested in applying WIRI in your city? Download (pdf, EN)

RESEARCH FROM SOUTH AFRICA AND KENYA STRESSES NEED FOR ACTION TO DELIVER ADEQUATE WATER AND SANITATION IN URBAN SLUMS Research Published in 2020 with SERI By Virginia Roaf, Alana Potter, Irene Ngunjiri, and Barbara Schreiner Suggested citation: Roaf, V; Potter, A; Ngunjiri, I; Schreiner, B (2020), Human Rights and Water Integrity: Implications for Informal Settlements Water and Sanitation. SERI and Water Integrity Network Despite clear international law on the human rights to water and sanitation, and widespread recognition of these rights, people living in informal settlements (slums) typically lack access to essential services. They pay more per litre for precarious, potentially unsafe water than residents in wealthier areas, and have limited access to toilets; relying on shared latrines, self-dug pits or overflowing chemical latrines. Lack of integrity and corruption contribute to the failure to deliver services, reinforcing existing inequalities in access to water and sanitation, diverting resources from where they are most needed, and reducing the quality and availability of services. A new paper from the Socio-Economic Rights Institute of South Africa (SERI) and the international Water Integrity Network (WIN) discusses these issues based on research conducted by SERI in Siyanda, Marikana and Ratanang, three informal settlements in South Africa, and by partners in Mukuru, an informal settlement in Nairobi, Kenya. The paper shows how an integrity focus can help to achieve human rights obligations and how a human rights focus improves integrity and reduces opportunities for corruption. Download full report (pdf, EN) Download summary (pdf, EN)

Research and advocacy Published in 2020 Developed with ASAN, Cantaro Azul, Controla Tu Gobierno, and Oxfam Mexico An analysis of the Mexican legal framework for water in different states and the legal form that community systems could take if they were taken into account by state laws. Download (pdf, ES):

CORRUPTION AND POOR INTEGRITY CAN BE A BIG DRAIN ON RESOURCES, REPUTATION, AND EFFECTIVENESS OF KEY WATER SECTOR PLAYERS; UTILITIES IN PARTICULAR By Jason Kirkpatrick, Water Integrity Network. Even organized with support from cewas. Water utilities do not often feel they have enough practical guidance to deal with the integrity and corruption issues they actually face in their daily business. This is the case despite the high-level policies in place to tackle the challenges of corruption and poor integrity. What do you do to make sure integrity risks don’t drag you down? What do you do when funds disappear or when vehicles and company resources are being used abusively for private purposes? Integrity Management in the water sector is a change management approach to prevent and reduce unnecessary losses from corruption and to develop preventive measures to strengthen procurement, human resources, accounting, O&M and other work processes. The Integrity Management Toolbox was developed to support such an integrity management process and transform challenges into opportunities. To date, the Toolbox has been used to support different organizations in over 20 countries, including large utilities in Bangladesh, Kenya, Albania, Ecuador, and Honduras. WIN and cewas organized a webinar on the Integrity Management Toolbox on March 18, 2020 to discuss the Integrity Management methodology and share experiences from previous applications of the Integrity Management Toolbox. Here’s what we learned. Assessing and tackling corruption and integrity risks in water utilities: the integrity management process Erion Likaj of KfW Albania, a former Integrity Management (IM) coach for utilities and panellist at our webinar, explained that better revenues can be a positive result of good planning and discussed how the Toolbox has been used to support planning, to develop better performance targets, and to link these to investments. Sareen Malik of ANEW, a former IM coach in Kenya, discussed the way institutions are increasingly seeing the water crisis as a governance crisis, not a technical one. Many see the need for a new approach even if they may at first fear digging into the corruption angle. Panellists agreed there is real value in being prepared and having a good understanding of risks. Integrity management can ensure corruption problems are detected early and contained, without the need for external or costly interventions. Lessons learned: what is needed to launch integrity management processes? An enabling environment must be created if it doesn’t exist. Utilities must see the alignment of operational processes to integrity values as beneficial for the organisation’s performance. There needs to be willingness at mid- or senior management level. Lenders can require utilities to have performance targets before investment is activated. This has been the case in Albania for example. There can be significant socio-cultural barriers preventing adoption of integrity management; the integrity toolbox may not automatically be well received. Communication is key for avoiding misunderstandings that could potentially damage the process. In Kenya, for example, utilities willing to address integrity issues pulled out at last minute of the process with WIN, for fear they might be accused of having corruption problems in the first place. Context-adapted communication could have pre-empted such issues. Lessons learned: assessing integrity risks and choosing the right tools to address them Each specific context will require a different risk assessment (looking at what regulations are in place, what institutions, etc.). It’s partly why cookie-cutter approaches will generally be less effective. Encouraging behaviour founded on integrity principles can be done through rewards. There needs to be a structured process for addressing emerging issues. It’s key to be clear about who is doing what, and when. If corrupt activities are protected and propagated at top management level, it will be of little use to address integrity issues from within the organization itself. Instead, different strategies would have to be adopted: supervisory boards or administrative councils can be very influential and steer an organization towards integrity. Third parties addressing integrity or external oversight mechanisms can also influence an organization. Follow the full webinar:

By Kei Namba This blog is based on our partners’ work and responses at the webinar “Integrity Readiness of Water Sector for Climate Change Finance – Challenges and Opportunities”, organized by GIZ on August 28th, in partnership with Green Climate Fund Independent Integrity Unit (GCG-IIU) , Central American Bank of Economic Integration (CABEI), and WIN. Thank you to all partners and participants! See recording: Water plays a pivotal role in how the world mitigates and adapts to climate change impacts . Extreme weather such as floods, droughts, and heatwaves caused by climate change not only affect water availability and quality but also hinder access to safe drinking water, especially for the most in need . For these reasons, global climate finance increasingly flows towards the water sector, especially for climate adaptation processes. As all major financing flows however, climate finance to the sector is vulnerable to corruption. The relatively untested nature of funding sources for climate finance, the increment in the number of interested parties (e.g. energy and agricultural sectors), as well as the rise of multilateral climate finance and the emphasis on mobilization of the private sector boost the potential for corruption. 0% corruption, 100% climate action Water infrastructure development for climate adaptation is prone to corruption, bribery, and nepotism, especially at the procurement stage. Without integrity and strong governance standards, climate finance can be diverted from vital prevention and adaptation activities into private bank accounts and vanity projects, often leading to catastrophic effects for vulnerable countries. In response, there is a need to promote integrity readiness of the water sector for climate finance, by building capacity of all relevant actors and raising awareness of red flags for corruption throughout the project lifecycle. “Integrity readiness is highly important to ensure that these funds are adequately used to safeguard vulnerable communities; who may be affected the most from the consequences of lack of integrity in climate adaptation processes. The water sector already has complex fragmented institutional arrangements. With added complexity comes added risk. That is why integrity readiness within institutions absorbing climate funds and among stakeholders at an early stage is important. We need to prepare for the changing architecture of the water sector.” – Binayak Das, Programme Coordinator at WIN The aim is to ensure corruption cannot compromise effective climate action . Integrity readiness – building block 1: preventive action and capacity building Green Climate Fund (GCF) is an operating entity of the Financial Mechanisms of the UN Framework Convention on Climate Change. It provides the largest amount of funding to water-related projects in climate finance, approximately 13% of its portfolio. The GCF Independent Integrity Unit (IIU) registered 40 cases of integrity violations in its 2019 Annual Report . These included project-related fraud, corruption and collusion; staff misconduct such as abuse, harassment, conflict of interests and retaliation against whistle-blowers; and others. The cases marked a 90% upsurge in the number of investigations by the IIU, in comparison to those of the previous year. The trend is of concern and confirms that increased funding may lead to increased risk. Preventing and managing these risks is essential, an approach GCF-IIU is working actively exploring, in addition to implementing strict policies and a strong control framework. “We are developing and institutionalizing strong preventative measures as well as investing in capacity building to address risks. The most crucial future development is Proactive Integrity Reviews (PIRs) methodology based on a data-driven integrity risk assessment. We think that descriptive data analytics would help to understand what it is going on from the integrity perspective.” – Ibrahim Pam, Head of the Independent Integrity Unit, Green Climate Fund. There are a number of other tools and methods to address integrity risks, from both the water sector and the climate sector, that can be applied and adapted for water-related projects for climate finance. The Integrity Management Toolbox , is one such water sector tool that is adaptable and has already been used by water sector government agencies and river basin organisations. Integrity readiness – building block 2: involving local communities and civil society In the water sector specifically, corruption directly affects the most vulnerable. From project selection to implementation, there is also a high risk that vulnerable communities and those most directly touched by an intervention are not able to participate. It is crucial to safeguard and include local communities and civil society at all levels and stages. “Understanding what the local population are seeking from a project and bringing people’s voices is one of the biggest challenges, but it is fundamental. In most of my experiences, there are conflicts of interest with the private sector. It is important to have close auditing and monitoring with due diligence. We must also have the conversation with the beneficiaries of climate finance, not just follow the procedures. – Rennie Valladares Alcerro, Country Analyst at CABEI Integrity readiness – building block 3: building partnerships In addition to promoting the participation of vulnerable communities and civil society, we need more knowledge-based partnerships to collect data and information, to increase transparency and jointly curb corruption in water-related projects for climate finance. “We need to work in partnerships and coalition. It is also key to keep the media involved. If you are looking for solutions and measures, it is necessary to think about what we can do to improve together, instead of just pointing out that corruption is happening.” – Binayak Das, WIN Programme Coordinator Key takeaways 0% corruption, 100% climate action and commitment A data-driven approach, as well as strong preventative measures and capacity to address risks is important. Zero tolerance, honesty, and professionalism must be core values. Working with beneficiaries and in partnerships is key About the author: Kei Namba is an independent consultant, specializing in water governance, climate, and environmental politics. She has been working with WIN on several projects including water integrity and climate finance, Water Integrity Global Outlook (WIGO 2021), building strategies for Asia-Pacific, and promoting WIN’s tools .

Research brief by Diana Suhardiman Published in 2018 with IWMI What are the dynamics of rent-seeking practices in the Indonesian irrigation sector, and what can be learnt from community-based development initiatives, such as irrigation management transfer? Download (pdf, EN)

Case studies Published in 2019 with Helvetas, Caritas Switzerland and cewas with support from SDC Lessons Learnt from the Multi-Country Water Integrity Programme (MCWIP) Phase 3 (2015-2019) in Guatemala, Kenya, Mozambique, Nepal with a focus on the challenges of mainstreaming integrity in local and rural water programmes. The SDC-funded Multi-Country Water Integrity Programme (MCWIP) was a water governance and water integrity programme for rural water implemented in Guatemala, Kenya, Nepal, and Mozambique from 2012 to 2019. The overall progamme goal was to increase the engagement of water users and decision-makers to change both individual attitudes and the institutional behaviour of public, private and civil society stakeholders. Water rights holders would be thus empowered and duty bearers held accountable, leading to effective water governance as well as equitable and sustained access to water and sanitation. The programme was implemented in collaboration with Swiss organizations working on water and sanitation, including Helvetas Swiss Inter-Cooperation, Caritas Switzerland and cewas. Partnerships were established with local organizations to develop and support local programme activities. The MCWIP focused on remote regions where service levels are lower and engaged directly to empower vulnerable communities using a framework of Transparency, Accountability and Participation (TAP). Social accountability mechanisms were introduced in particular, as a key component of the programme. From 2015 to 2019, MCWIP in its third and final phase focused on collecting and structuring the knowledge gathered during the programme both to feed sustainability and to reflect on lessons learnt. One category of lessons relates to enablers, or conditions, that support the effective launch and implementation of water integrity projects. Lessons focus on the value of media involvement in boosting Transparency and accessibility of information; the importance for Accountability of clear rules and regulations, mechanisms for gathering evidence, and open platforms for dialogue; the need for Participation to include all stakeholders and an increased proportion of women, youth, and other marginalized groups; and the value of slow progress in Anti-corruption using a collaborative, solutions-oriented, non-confrontational approach. Download:

RESEARCH ON INTEGRITY IN WATER SECTOR PUBLIC FINANCIAL MANAGEMENT IN KENYAN COUNTIES The Kenyan government has made a commitment to achieve universal access to water and sanitation services by the year 2030, yet service coverage for water and sanitation is still low (57 percent and 25 percent respectively) and has only marginally increased in the last couple of years. To improve and fulfil the human rights to water and sanitation enshrined in the Kenyan constitution, urgent action is required to ensure available financing is used efficiently and effectively, and to build the necessary environment to increase financing. RESEARCHING PUBLIC FINANCIAL MANAGEMENT IN THE WASH SECTOR Pipes, Policy, and Public Money is a report on new research by KEWASNET and WIN that shows how integrity in public financial management can be strengthened to increase WASH sector efficiency and accountability towards citizens. Developed in partnership with the Kenya Ministry of Water and Sanitation and the Council of Governors, the report considers in detail to what extent the sector’s rules, institutions, and processes for decision-making on the allocation and management of resources are transparent, accountable, participatory, followed, and contain safeguards to prevent and sanction corruption. Pipes, Policy, and Public Money points to some of the integrity issues that are keeping the sector back and outlines the way forward for Kenyan water sector stakeholders to make good on their promises. Following the adoption of the Constitution in 2010 and the promulgation of the 2016 Water Act, the report provides insight for the first time on the key risks and ‘leaks’ in the system as it is now administered at devolved level. Bridging the gap between policy and practice, and between the WASH and public finance sectors, it also goes into unique detail as to why budget tracking is so complex, also in terms of IT systems, reporting, and responsibilities. Download (pdfs, EN) Full report: Summary: INTEGRITY RISKS AND EMERGING ACCOUNTABILITY PRACTICES The report identifies significant integrity risks. For example, the institutional arrangements are new and there is still distrust in the relationship between county governments and water service providers, especially because it is not yet fully clear to all stakeholders who is accountable to who and how this should be shown in practice. This leaves water service providers vulnerable to undue political interference and county governments scrambling for more information. Concerns regarding public participation also feature in the report: although public participation mechanisms are already strong especially at county level and especially at the planning phase, they lack consistency across the full budget lifecycle. The core of the Pipes, Policy, and Public Money report is the inventory of emerging accountability practices and policy recommendations it highlights. There is more guidance required on public finance management, reporting, and division of responsibilities. Accountability mechanisms must be brought together and made effective, to link what the county does and what water service providers do, building on the stronger experiences of public participation at the planning phase. Ensuring that water service provider boards have the necessary expertise and knowledge, and are appointed through due process is also essential. The report is meant as a resource and motivation to rally sector stakeholders towards improved coordination and more integrity. At the official launch of the report on July 31st 2019 in Nairobi, Joseph W. Irungu, CBS, Principal Secretary of the Ministry for Water and Sanitation said clearly that “business as usual is not good enough to live to our ambitions”. He added, speaking to a crowd of about 60 national and county WASH sector representatives, development partners and WASH and public finance CSOs that: “The recommendations of the report are a call to all of us in this room to do our part in fixing the leaks in the systems. Changing practices on integrity won’t be done from one day to another, and rooting out corruption is a tall order. This administration has made it very clear that this is the order, and that has to be an effort across all sectors and all walks of society.”

Brief Published in 2019 with DORP and BAWIN Dirty and locked toilets are leaving students behind. Poor integrity is a contributing factor. Change requires a holistic approach to the issues. DORP, BAWIN, and WIN are using integrity assessments in schools to raise awareness, increase Transparency, Accountability, and Participation and ensure resources are spent for decent WASH faciltities, as they are meant to be. Download in Bengali (pdf, BE) Download in English (pdf, EN)

Global climate change finance flows are expected to increase over the next few years in response to climate change. As these funds will be channeled through relatively untested funding sources, existing corruption risks from the water sector and broadly in climate change finance need to be better understood. This policy brief provides an overview of challenges and opportunities concerning corruption in the wa­ter sector in the context of climate change finance. It addresses policy makers and practitioners from both sectors. Download (pdf, EN): The policy brief was drafted based on a literature review and interviews with experts from international and civil society organizations as well as implementing entities. To promote greater responsibility and accountability in climate finance, this policy brief makes a number of recommendations: In the context of multilateral climate funds, national designated authorities and accredited entities should improve their respective capacities in order to strengthen integrity and address specific corruption risks. A zero-tolerance approach and targeted climate finance readiness support can positively affect projects related to the watersector. Strengthening participation of vulnerable communities and civil society in prioritization, planning and implementation of projects could reinforce their role concerning oversight. The climate finance architecture in many countries, as well as globally, is still under development. This provides an opportunity to consider some of the best practices and to undertake early measures to curb corruption and strengthen integrity. Development partners are encouraged to continue demanding high standards of accountability and transparency from their partners and support capacity building, e.g. through South-South learning on integrity approaches. Both climate change finance and the water sector can draw on different tools, approaches and experiences concerning the prevention of corruption. Thus, both can benefit from each other’s expertise.

RESEARCH INTO KEY ELEMENTS REQUIRED IN CLIMATE ADAPTATION FRAMEWORKS AND INSTITUTIONAL ARRANGEMENTS TO ACHIEVE EQUAL AND JUST CLIMATE ADAPTATION The need for communities and households to be able to adapt is increasingly pressing as climate change impacts hit harder and faster than expected. Many of these impacts relate to water, in the form of more severe and more frequent floods and droughts, changing rainfall patterns, and higher water demands for crops in the face of increased temperatures. Increasing funding is pouring into climate adaptation responses, from international and national sources. And yet, as this research piece from IWMI shows, the finances don’t always flow to the ground level where the impacts are being felt.There are also no explicit mechanisms to reflect adaptation needs from the ground upwards, including those from the poorest and most marginalized groups. The lack of participation of local communities in decision-making regarding adaptation approaches, as well as the lack of transparency and accountability for the use of climate funds raises the spectre of corruption and lack of integrity in the use of climate funds. Evidence from other research has shown how transparency, accountability and participation can serve to reduce corruption, improve integrity in decision-making, and ensure that finances are used appropriately to address the adaptation needs of poor and marginalized communities in particular. Partners: Developed with IWMI Download (pdf, EN):