Sub-DLI 5.1 is a sub-component of DLI 5 that focuses on improving the performance, efficiency, and sustainability of state sanitation implementing agencies and service providers. While DLI 5 emphasizes the delivery of household-level sanitation infrastructure, Sub-DLI 5.1 ensures that the institutions responsible for planning, implementing, and monitoring sanitation services operate effectively to sustain these gains.
The Program incentivizes agencies to develop and implement Performance Improvement Action Plans (PIAPs), which serve as roadmaps for institutional strengthening. PIAPs guide agencies through the actions required to improve sector outcomes, tailored to each state’s context, level of development, and institutional capacity. Separate PIAPs are prepared for the two main sanitation subsectors: (1) rural and small-town sanitation, and (2) urban sanitation. These plans set clear baselines, define annual targets, and identify critical operational and managerial improvements needed to enhance service quality and sustainability.
During the first year of the Program, disbursement is contingent on the preparation of PIAPs in consultation with the Federal Program Implementation Unit (FPIU) and their formal approval. In the second year, disbursement depends on conducting an annual assessment of progress against PIAP targets. For subsequent years, disbursements are linked directly to the achievement of annual PIAP targets, ensuring that agencies maintain a continuous focus on improving performance rather than completing one-off activities.
The performance areas covered by the PIAPs include operational efficiency, financial management, monitoring and reporting systems, regulatory compliance, institutional accountability, and community engagement. Special emphasis is placed on ensuring that sanitation services remain safe, functional, and accessible to all, including women, children, and other vulnerable groups.
Verification of progress under Sub-DLI 5.1 is carried out by an Independent Verification Agent (IVA). The IVA conducts desk reviews of documentation submitted by participating agencies, including the State Governor’s Office, WASH regulatory bodies, and sanitation authorities. The IVA assesses the preparation of PIAPs, the baseline data, and the achievement of annual targets. Verified results are then submitted to the FPIU for disbursement consideration. Disbursements are proportional to actual achievements, and the allocation of funds by subsector is determined at the state level as part of the PIAP.
By combining institutional strengthening with performance-based incentives, Sub-DLI 5.1 ensures that sanitation investments are not only implemented but also managed sustainably and effectively. It complements the infrastructure-focused DLI 5 by building the institutional capacity required to deliver high-quality sanitation services, maintain facilities over time, and improve sector outcomes for communities across urban, small-town, and rural areas.