While the sanitation sector has attracted increasing levels of funding in recent years, there remains a severe lack of expenditure on remuneration, safety, and welfare of workers. ULBs don’t have budgets to hire sanitation workers directly and hence outsource this role to contractors who pay them a small fraction, ULBs spend minuscule components of their sanitation budgets on gear, equipment, and training of workers (typically 1%). There is an urgent need to reconsider funding models for sanitation workers’ safety and livelihoods.
Bearing this in mind, we proposing a solution that aims to drive ‘More and Better Budgeting’ for the safety and livelihoods of sanitation workers. Preliminary provisions include scientific budgeting built around preventive maintenance models, outcome-based financing such as in social impact bonds, and CSR contributions directly for worker welfare funds.
- Scientific budgeting based on machines required for preventive maintenance, and adequate safety gear for every worker
- Scheme allocation based on the number of workers
- Outcome-based financing such as social impact bonds
E.g., ULB will only pay investors if number of deaths is reduced by xx% in a year; not only will this lead to safe sanitation work but also accrue government savings for compensation not paid in case of deaths of sewer workers
E.g. NCSK pays only if workers do not relapse into sanitation after undergoing skilling program
WORKERS IMPACTED (100%)
Types of work: all
Gender: Male and female
Employment nature: Contractual and permanent
Personas: All personas
• Goldman Sachs invested in a Social Impact Bond to help fund a program aimed at reducing the recidivism rate for adolescent offenders at the Rikers Island correctional facility in New York City- the Department of Correction pays only based on reduced re-admission
- Expertise in financing, especially in international models
- Strong project management units to execute projects; willing private investors; third-party to carry out evaluation