BANK-NETHERLANDS WATER PARTNERSHIP PROGRESS REPORT SECOND SEMESTER, 2003

Transcription

1 BANK-NETHERLANDS WATER PARTNERSHIP WATER SUPPLY & SANITATION WINDOWS PROGRESS REPORT SECOND SEMESTER, 2003 JULY 1 DECEMBER 31, 2003 Bank-Netherlands Water Partnership -Water Supply and Sanitation Windows H street NW, Washington DC USA Bnwp@worldbank.org tel

2 BANK NETHERLANDS WATER PARTNERSHIP WATER SUPPLY AND SANITATION WINDOWS SEMI-ANNUAL PROGRESS REPORT SECOND SEMESTER, 2003 JULY 1 DECEMBER 31, THE BANK-NETHERLANDS WATER PARTNERSHIP WATER SUPPLY AND SANITATION WINDOWS The mission of the Bank-Netherlands Water Partnership (BNWP) is to improve delivery of water supply and sanitation services to the poor. The partnership enhances performance of World Bank operations in the water supply and sanitation sector and supports a broad sector reform agenda with a strong poverty focus. BNWP activities center on providing support to solve immediate problems with actual cases, testing policy and service delivery innovations, and plugging gaps in existing knowledge in the water sector as a whole. The BNWP is managed as a cohesive program based on good quality projects and activities, and is complementary to other sources of funding. BNWP projects are targeted interventions that support implementation of structural changes. A typical project fosters South-South collaboration and includes pilots in the field. All project proposals are quality-assured through peer review by reviewers chosen from within and outside the World Bank. More details on the work done by BNWP are available at or by writing to bnwp@worldbank.org. 2. THE SEMI-ANNUAL PROGRESS REPORT 2.1 PURPOSE This Semi-Annual Progress Report outlines the progress in work of the Water Supply and Sanitation Windows of the Bank Netherlands Water Partnership during the second semester of 2003 (July 1 to December 31, 2003). The purpose of the Semi-Annual Progress Report is to: Front page photo credits: D. Sansoni/World Bank (top), C. Carnemark/World Bank (bottom) 1

3 report outputs and activities of the various BNWP projects and activities report expenditure that allows comparison with outputs facilitate identification of links and common interests between various projects of BNWP increase transparency of BNWP operations. 2.2 STRUCTURE OF THE SEMI-ANNUAL PROGRESS REPORT The Semi-Annual Progress Report is organized with a main text with an annex giving the detailed progress reports for each project and activity. 3. KEY DEVELOPMENTS IN THE SEMESTER During the July-December 2003 period, BNWP projects and activities remained at cruising speed. Program activity focused the consolidation and ongoing implementation of BNWP s eight flagship projects. The BNWP project portfolio was cleaned up by removing three projects, for which (i) a quality full proposal had not been delivered within a reasonable timeframe, or (ii) the initial proposal had been withdrawn. A number of smaller activities were approved and initiated, while two activities were finalized. 3.1 NEW PROJECTS AND ACTIVITIES Four new activities were started up during the semester: Consumer Cooperatives: An Alternative Institutional Model for Delivery of Urban Water Supply and Sanitation Services? (#081) Identifying and assessing consumer cooperatives in various sectors, with particular emphasis on the Bolivian experience in the WSS sector. Public Reporting by Water Supply and Sanitation Utilities on Consumer-Oriented Issues (#083) Reviewing existing experience in, and developing a framework for, consumeroriented performance reporting for the water sector. Study Tour from Lima Water Utility (SEDAPAL) to Brazil on Peri-Urban Condominial Water and Sewerage Systems (#084) - South-south knowledge exchange to facilitate sector reform and improve access to WSS services among the poor in Peru. Franchising in Water Supply and Sanitation -- Phase 2: Large Urban Settlements (#085) - Investigating the potential of franchising as a means of providing water and sanitation services in large urban settlements, using Lagos, Nigeria, as an illustration. 2

4 3.2 CLOSED PROJECTS AND ACTIVITIES The following projects and activities were finalized in this semester: Scaling Up Sustainable Rural Water Supply Services (#026) This activity researched the conditions that further or constrain the scaling up of successful small-scale RWS initiatives. Four common challenges to scaling up successful RWS initiatives were found: resource constraints; lack of knowledge or shared understanding; resistance among key stakeholders; and untested implementation conditions. Recommendations for how to meet these challenges included case studies focusing on scalability and explorations of the policy context and organizational structure. The findings were presented at a workshop session at Water Week 2003 and in the discussion paper Taking Sustainable Rural Water Supply Services to Scale. An electronic version of the Discussion Paper is available on the BNWP website at Development of an African Sanitation and Hygiene Strategy (#054) - Eight ministers and more than 100 professionals participated in the conference organized under this activity. It was the first such conference dedicated exclusively to sanitation and hygiene and became a great success in terms of generating debate, discussion, and enthusiasm for the topic of sanitation in Africa. Timed as it was before the World Summit on Sustainable Development, (WSSD) in Johannesburg, the conference greatly contributed to the atmospherics leading to what many have described as the one practical outcome of the Johannesburg summit: the commitment to a Sanitation Millennium Development Goal (MDG). The WSSD, endorsed by the UN General Assembly, made the specific commitment to halve the fraction without access to basic sanitation by The final conference declaration can be found on the BNWP website at: EVENTS During the period, the BNWP sponsored the following events: Global Technical Handwashing Workshop (BNWP #008) in Lima, Peru, November 17-21, The workshop was attended by more than 30 participants, including public and private sector representatives from four country programs (Peru, Ghana, Senegal, and Indonesia) as well as the project s global steering committee. The event succeeded in (a) advancing and improving the design of programs in the four countries; (b) generating global lessons for an upcoming PPP handwashing program handbook; and (c) refining the project s FY04 program to support country teams and continue global advocacy. Workshop (BNWP #059) to present and discuss the draft annotated outline for the new Water and Sanitation Toolkit, Washington, D.C., July

5 Regional consultant training in implementation of the analytical framework to be used in the case studies to be carried out under BNWP Project #033 (Modes of Engagement with Public Sector WSS in Developing Countries). The training was undertaken in Delft, The Netherlands, August 25-26, 2003, with the participation of ten local consultants, two representatives of IHE-Delft, and three World Bank staff. Study tour for Peruvian officials and WSS sector professionals from Lima Water Utility (SEDAPAL) to Brazil (BWNP #084), December 6-12, Nine Peruvian officials visited three Brazilian cities with extensive experience in condominial WSS systems. The study tour was organized in response to a growing interest in Peru about the use of condominial systems to facilitate expansion of WSS services. A workshop on Franchising in WSS in Lagos, Nigeria, December 3-4, The workshop was organized by BWNP Activity #085 Franchising in Water Supply and Sanitation -- Phase 2: Large Urban Settlements. Over forty representatives of public and private entities participated in this highly interactive two-day workshop, where it was examined whether or not the principles of franchising could provide decision-makers in Nigeria with an additional tool for transferring knowledge and best practices to the WSS industry. The activity was followed by a half-day briefing workshop in Paris, France, December 5, BNWP Project #006 WSS Sector Reform: Building Capacity for Civil Society Engagement conducted stakeholder workshops in Zambia (August, 2003) and Senegal (November, 2003) where civil society representatives received training on tariffs, regulation, and communications. The project also hosted a synthesis drafting workshop in Lisbon, Portugal, in September 2003, with participants from Zambia, Senegal, Kenya, and Chad. Finally, the project presented an outline of the synthesis report Models and Strategies for Consumer Engagement in Urban Water Sector Reform to Congress participants at the at Consumers International Annual Congress in Lisbon, September Presentation on Water Sector Reform and the Poor at WBI Good Governance in the Water Sector Seminar (BNWP #005), December 2003; Workshop on Pro-Poor Subsidies for Urban Water Services (BNWP #050), Washington, D.C., November 17, Presentation of Market Development Study: Private Sector Participation in Europe and Central Asia (BNWP #057) at the conference on Private Sector Participation in Municipal Water Services in Central and Eastern Europe and Central Asia held in Vienna, Austria, July 2-3, In addition, the Public-Private Partnership to Promote Handwashing with Soap (BNWP #008) provided support for the launch of the Ghana PPP to Promote Handwashing with Soap Campaign in Accra, Ghana, on September 25, Finally, BNWP provided critical input to 4

6 the Consultative Meeting convened by the Bank with the relevant international financial institutions following up on the G8 Summit Water Action Plan to discuss the greater use of risk mitigation instruments and sub-sovereign lending. The meeting demonstrated that all institutions are responding to the increasing demand for contractual/regulatory and devaluation instruments. A draft comparative review of IFI risk mitigation instruments and direct sub-sovereign lending (prepared under BNWP Activity #080; see Annex for description of activity) was discussed at the meeting. 3.4 PUBLICATIONS Publications from projects and activities included: Can the Principles of Franchising be Used to Improve Water Supply and Sanitation Services? A Preliminary Analysis. Report prepared under BNWP #052 Franchising in Water Supply and Sanitation. The report is available on BNWP s website at A print version of the report will be published in early 2004 as part of the Water and Sanitation Sector Board series. Capacity Building Kit for Civil Society Engagement in Urban Water Supply and Sanitation Sector Reform. Toolkit prepared under BNWP #006 Water Supply and Sanitation Sector Reform: Building Capacity for Civil Society Engagement. The toolkit is available on BNWP s website at At the program level, the BNWP management team prepared a series of Briefs providing an overview of the objectives, activities, and progress of the individual activities and projects funded by the program. The BNWP Briefs have been in high demand and will, in response, be distributed to all World Bank WSS sector staff in early Finally, a new BNWP Program brochure was prepared and published, updating the information in the previous brochure. 3.5 PROGRAM MANAGEMENT BNWP program management was ongoing. During the reporting period, a Research Assistant joined the BNWP management team. 4. OVERVIEW OF PRESENT PORTFOLIO The total value of the present portfolio of projects and activities is USD 6.7 million. This budget includes projects and activities that are approved by (the chair of) the Sector Board. In addition, pre-qualified projects under development amount to a budget of USD 710,000. The planned and actual disbursement per semester is presented in figure 1. 5

7 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 Planned Actual $400,000 $200,000 $ I 2002-II 2003-I 2003-II 2004-I 2004-II 2005-I 2005-II Figure 1: Planned and actual disbursement per semester. The approved budget of USD 6.7 million leverages co-financing of USD 1.8 million from other funding sources. BNWP Portfolio: Windows BNWP Portfolio: Regions Rural WSS Urban WSS Financing Systems Sanitation and Hygiene Capacity-Building Global Africa East Asia & Pacific Europe & Central Asia Latin America & Caribbean Middle East & N. Africa South Asia Figure 2: Breakdown of portfolio per window Figure 3: Breakdown of portfolio per region 6

8 The focus of the present portfolio is summarized in figures 2 and 3 (above). The majority of the portfolio is global or located in Africa or South Asia. This is in line with the needs for the Millennium Development Goals. BNWP-WSS sponsored initiatives are predominantly located within the rural WSS, urban WSS, and sanitation and hygiene windows. 5. FINANCIAL AND PROGRESS REPORT Table 1 gives a specification of accumulated progress as well as expenditure per window. The total expenditure in the period July 1 December 31, 2003, was USD1,149,358. This constitutes 103% of the planned budget for the second semester of Having reached cruising speed during the second quarter of 2003, BNWP disbursements continued at this level during the July-December, 2003, period. The outputs achieved in the second semester of 2003 amount to 78 percent of the targets set for the semester. This number represents a weighted average of the individual project achievements, as specified in the annex. While four of five windows are performing as anticipated, the outputs achieved under the fifth window WSS in Rural Areas and Small Towns corresponded to only 56 percent of the targets set for the semester. The delay experienced under the WSS in Rural Areas and Small Towns window is largely attributable to a temporary delay faced in the implementation of BNWP Project #007 Follow-Up Support to Communities after Construction of Rural WSS Facilities. Window Performance (% of target) Semi-Annual Budget (USD) USD Expenditure % of budget WSS in rural areas and small towns 56% 209, ,511 98% Reform of urban WSS 86% 226, ,118 96% Dev. of sustainable financing systems 92% 211, , % Sanitation and Hygiene Promotion 89% 307, , % Capacity-building 90% 83,550 90, % Program coordination N/A 75,000 53,481 71% Grand Total 78% 1,113,201 1,149, % 7

9 6. PLANS FOR THE NEXT SIX MONTHS BNWP will continue at cruising speed in the first semester of Now firmly in the implementation phase, BNWP has geared up for extra efforts in the areas of quality assurance, capacity-building, monitoring and evaluation, and dissemination of outputs. With a substantial number of reports currently in the pipeline, a significant increase in outputs (reports, presentations, etc.) from BNWP projects and activities is anticipated during the coming six months. In response, the BNWP management team is in the process of developing a strategy for publication and dissemination of outputs. Primary components of the strategy include an integrator report distilling cutting-edge lessons from BNWP projects and activities, a WBI/BNWP capacity-building course in WSS, and a BNWP synthesis book. Implementation of the strategy will begin in the second half of

10 ANNEX: OVERVIEW PER PROJECT OR ACTIVITY # Title Short description Approved budget (USD) 005 Pro-poor transaction design; Upstream work for private sector participation and reform 006 PPP in urban WSS: building capacity for civil society engagement 007 Follow up support to communities after construction of rural WSS facilities 008 Public private partnership to promote handwashing with soap 012 Trends in the Desalination Market in the Middle East and Central Asia 015 Consultation workshop with African water operators in Dakar 020 State of the art hygiene and sanitation promotion component design of large scale RWSS programs 021 Addis Ababa International Conference Water Supply and Sanitation Services in Small Towns and Multi-Village Schemes 026 Scaling up sustainable rural water supply services 033 Modes of engagement with public sector WSS in developing countries Ensuring that urban water sector reforms involving the private sector are more effective at increasing access and service quality for poor consumers Addressing the role of civil society in public private partnership transactions and build capacity of key civil society groups, and policy makers to engage positively in the reform process Identifying the types of follow-up support to communities after the construction of rural water and sanitation Facilities that are needed to enable sustainability Promoting partnership between the soap industry, public agencies and NGOs to provide soap and promote handwashing with soap to decrease diarrhoeal diseases Improving the understanding among Bank staff and clients in the Middle East and Central Asia of recent developments in the desalination industry Organizing a three day high-level seminar of African water policy decision makers to develop a roadmap on how to improve capacity of water ministries in implementing sector reform Supporting the implementation of effective instruments for improving hygiene and sanitation behaviours in rural communities in the context of large-scale rural water supply and sanitation projects Organizing a conference to take stock of the lessons learned on water supply and sanitation in small towns and to launch the new BWNPP small town initiative Characterizing the necessary supporting environment for successful scaling up of sustainable rural water supply services, such as demand response approaches Developing better performing public sector water utilities in developing countries.- identifying, categorizing and analyzing various international models for public sector water service provision Windows Current status Project period Semi-Annual performance 780,000 Urban WSS Operational Nov 02 Feb 05 96% 150,000 Urban WSS Capacity building Operational Nov 02 May % 180,000 Rural WSS Operational Nov 02 May 04 34% 850,000 Hygiene & sanitation Operational Jun 02 Jun % 350,000 Urban WSS Operational Jun 02 Jun % 40,567 Urban WSS Closed Feb 02- Jun 02 N/A 530,000 Rural WSS Hygiene & Sanitation 20,195 Rural WSS Urban WSS Operational Jun 02 Jun04 58% Closed Apr 02 Jan 03 N/A 43,962 Rural WSS Closed Feb 02 Jan 03 N/A 628,000 Urban WSS Capacity building Operational Jun 02 Dec 04 92%

11 Title Short description Approved budget (USD) 042 Toolkit for Rural Water and Sanitation Components in Multi-Sector Projects 043 Town Water Supply and Sanitation Initiative 050 Evaluation of Pro-Poor Subsidies for Urban Water Services in West-Africa 051 Developing a Flowchart for Renegotiations: Assistance to Argentina s Concession Contract Renegotiations Commission 052 Franchising in Water Supply and Sanitation 053 Good Governance to Improve Water Supply and Sanitation Services for the Poor 054 Development of an African Sanitation and Hygiene Strategy (phase I) 055 Distributional Impact of Utilities Subsidies 057 Market Development for Private Water Utility Management in the ECA Region 059 Updating the toolkit for Public Private Partnership in the water supply and sanitation sector Providing task teams with guidelines and tools for designing, implementing, and monitoring & evaluating RWS components in multi-sectoral projects Building appropriate models for service provision for town water supplies, by identifying, assessing and market testing professional support options for town water supply, and by investigating ways to aggregate towns Assessing the effectiveness of the subsidy schemes used in Senegal and Ivory Coast in providing piped water supply to the poor Providing support to the Argentina s Renegotiations Commission in defining the renegotiation process, and renegotiation policies and strategy, and developing a flowchart on renegotiation that can be applied in other countries Investigating the potential of franchising as a means of providing water and sanitation services in small and medium sized towns and in marginal urban areas Developing a methodology to assess governance regimes in urban water supply and sanitation sector Assessing the state of sanitation and hygiene in Africa, sharing experiences and lessons learned by people and organizations working in this field, and raising the profile of sanitation and hygiene in Africa Editing and publication of a book synthesizing recent empirical research on the distributional impact of utilities subsidies. Assessing the possibilities of how to increase the number of players in the market, risks for the private sector and consumers Updating the toolkit for PPP in the water sector to include new development and increase focus on pro-poor design issues, small scale providers, and the use of output-based aid. Windows Current status Project period Semi-Annual performance 46,842 Rural WSS Closed Mar 02 Sep 02 N/A 1,030,000 Rural WSS Urban WSS Operational 18 Jun 02 Jun 04 52% 50,000 Financing systems Operational May 02 Mar 04 93% 50,000 Financing systems Urban WSS 50,000 Rural WSS Urban WSS Operational May 02 Feb 04 95% Operational Jun 02 Jan 04 99% 45,000 Urban WSS Operational Mar 03 Jun 04 22% 44,145 Hygiene & Sanitation Closed Jun 02 Aug 03 N/A 50,000 Financing systems Operational April 03 Dec % 50,000 Urban WSS Operational Mar 30 Jun 04 77% 50,000 Urban WSS Operational Mar 03 Oct 04 94% #

12 Title Short description Approved budget (USD) 060 Improving efficiency and competition of WSS provision in medium and small municipalities in Brazil Disseminating and tailoring the PSP Toolkit to the legal, regulatory and social situation of W&S at municipal level in Brazil 061 Assessing Resource Flows for Water Developing a framework to assess the flow of Supply and Sanitation within a PRSP resources for WSS and their link to sector reforms. Framework The framework will be developed in Ethiopia and generalized for use elsewhere. 062 Methodology of Baseline Analysis of Producing a flexible framework to help project Water Distribution Performance officers and regulatory agencies to develop appropriate and cost-effective baselines for water utility performance 064 Does Community Involvement Improve Looking into the household decisions to connect to Performance of Water Supply the piped water system and an evaluating of the Projects? Evidence from the effectiveness of community/ user involvement in Philippines the design of water supply initiatives in the Philippines 066 Sanitation Sector Study for Indonesia Developing an action plan for sanitation in Indonesia, including assessment of existing situation and evaluation of existing incentives 071 Development of a Tool for Regulatory Developing a more generic dynamic financial Oversight of Water Utilities: A Cash model that can be utilized more generically and can Flow Equilibrium Model (CFEM) serve as an important analytical tool for policy makers as well as professionals. 074 Improving Policy and Business Enhancing the global understanding of SSPs, their Environments for Small Scale importance in the water supply and sanitation Providers of Water Supply and sector, and the impact of the policy and business Sanitation Services environments in which they operate 077 Potential for Domestic Private Sector Exploring innovative methods for increasing private Participation in Water Supply Service management of water supply and sanitation utilities Delivery in the Europe and Central that may open the domestic market for local Asia Region players 078 Pro-Poor Design of Water and Assessing the social dimensions of the WSS Sanitation Private Sector Participation services in Mauritius in order to address the Transaction specific needs of the poor in the design of a PSP option. 080 Comparative Review of Risk Mitigation Enhancing water supply and sanitation service Instruments and Design of a delivery by strengthening the use of risk mitigation Framework for Financing Pro-Poor instruments and facilitating lending to municipal Water Investments and Sub-Sovereign governments. Governments Windows Current status Project period Semi-Annual performance 50,000 Urban WSS Operational May 02 Aug 02 65% 50,000 Financing systems Operational Sep 02 Feb 04 99% 50,000 Financing systems Operational Sep02 Mar 04 90% 50,000 Capacity building Operational Sep02 April 04 70% 50,000 Hygiene & Sanitation Operational Nov 02 Jun 04 39% 32,000 Financing systems Operational Sep 02 May 04 63% 35,000 Urban WSS Financing systems 50,000 Rural WSS Urban WSS Financing systems Operational Dec 02 Feb % Operational Jun 03 Mar 04 72% 46,000 Urban WSS Operational Sep 03 Jun % 50,000 Financing systems Operational Jun 03 Feb 04 95% #

13 Title Short description Approved budget (USD) 081 Consumer Cooperatives: An Alternative Institutional Model for Delivery of Urban Water Supply and Sanitation Services? 083 Public Reporting by Water Supply and Sanitation Utilities on Consumer- Oriented Issues 084 Study Tour from Lima Water Utility (SEDAPAL) to Brazil on Peri-Urban Condominal Water and Sewerage Systems 085 Franchising in Water Supply and Sanitation -- Phase 2: Large Urban Settlements Identifying and assessing consumer cooperatives in various sectors, with particular emphasis on the Bolivian experience in the WSS sector. Reviewing existing experience in, and developing a framework for, consumer-oriented performance reporting for the water sector. South-south knowledge exchange to facilitate sector reform and improve access to WSS services among the poor in Peru. Investigating the potential of franchising as a means of providing water and sanitation services in large urban settlements, using Lagos, Nigeria as an illustration. Windows Current status Project period Semi-Annual performance 34,200 Urban WSS Operational Jul 03 Mar 04 64% 50,000 Urban WSS Operational Oct 03 Jun 04 0% 46,000 Capacity-Building Operational Oct 03 Mar % 48,900 Urban WSS Capacity-Building Operational Oct 03 Mar % #