DLI 2 is implemented at the State level and focuses on strengthening the policy, institutional, and regulatory foundations of the WASH sector through the design, adoption, and implementation of a State-specific Policy, Institutional, and Regulatory (PIR) Plan. Each participating State, including Plateau State, is required to develop and implement a tailored PIR Plan that reflects its institutional context and reform priorities, while aligning with national sector objectives and the SURWASH Program framework.
The PIR Plan serves as a structured reform roadmap aimed at improving the enabling environment for WASH service delivery at State and local government levels. It focuses on strengthening sector governance, clarifying institutional roles, improving regulatory oversight, and enhancing coordination across State agencies and Local Government Authorities. Successful implementation of these reforms is expected to lead to improved service sustainability and efficiency, expanded access to safe and inclusive WASH services, protection of poor and vulnerable populations, job creation within the sector, and increased resilience to climate-related risks.
Implementation of DLI 2 follows a phased approach, beginning with a comprehensive baseline assessment of the existing WASH policy, institutional, and regulatory landscape in the State. This baseline informs the design of a State-specific PIR Plan and reform agenda by assessing the current status of required reforms across key WASH institutions and identifying gaps, risks, and priorities. The baseline establishes a clear starting point against which progress is measured over time.
Following the baseline, the State is required to formally adopt and approve the PIR Plan and reform agenda, ensuring that it is aligned with national policy direction and acceptable to relevant Federal oversight institutions and development partners. This formal endorsement signals the State’s commitment to sector reforms and provides the basis for structured implementation and annual performance assessment.
Subsequent implementation focuses on the achievement of annual PIR Plan targets, with progress assessed on a year-by-year basis. These annual targets represent incremental milestones toward the full implementation of the required reforms and allow for performance-based tracking of institutional strengthening. Achievement levels are scalable, recognizing differences in State capacity and reform pace, while maintaining accountability for sustained progress throughout the Program period.
The PIR Plan targets reforms across the full WASH institutional spectrum, including the State WASH regulatory function, the State urban water and sanitation authority, the Rural Water Supply and Sanitation Agency (RUWASSA) or its equivalent, the Small Town Water Supply and Sanitation Agency (STWSSA) or equivalent, and WASH Departments within Local Government Authorities. This comprehensive scope ensures that reforms address both service provision and oversight functions across urban, rural, and small-town contexts.
Key reform areas under DLI 2 include the establishment and strengthening of LGA WASH Departments with dedicated budget allocations and releases to support sustained monitoring, technical assistance, and service oversight at the local level. The DLI also supports policy consolidation and institutional reform in the urban sanitation subsector, including the establishment of functional urban sanitation authorities, development of inclusive sanitation policies, and formulation of State-level standards and regulations that address the entire sanitation service chain.
In the urban water subsector, DLI 2 emphasizes the creation of autonomous and accountable urban water utilities, supported by clear legal, policy, and operational frameworks. This includes the development and implementation of poor-inclusive tariff policies that promote sustainable cost recovery while protecting vulnerable households, alongside the establishment of a clear regulatory function responsible for tariff setting, performance monitoring, and accountability.
The DLI further promotes the use of performance contracts and financing and service agreements between State Governments and State Water Agency Boards. These instruments are intended to strengthen accountability, improve operational efficiency, and link financing to measurable service delivery outcomes within urban water utilities.
Environmental and social sustainability is addressed through the operationalization of a WASH environmental and social screening and assessment mechanism, guided by a comprehensive manual and supported by satisfactory annual implementation. This reform ensures that WASH investments effectively manage environmental and social risks while building institutional capacity for future sector investments.
Finally, DLI 2 integrates cross-cutting reforms aimed at increasing the participation, representation, and leadership of women and youth in the WASH sector. This includes gender mainstreaming within human resource policies to address gaps in technical and managerial roles, as well as the development and implementation of young professional programs to build a skilled and inclusive workforce.
Overall, DLI 2 is a cornerstone reform DLI under Plateau SURWASH, providing the institutional backbone required for sustainable WASH service delivery. By linking annual performance targets to a structured reform agenda, the DLI ensures that improvements in infrastructure are matched by lasting gains in governance, accountability, and sector resilience.