Water Supply and Sanitation

Transcription

1 International Development Association Water Supply and Sanitation IDA at WORK Improving Services for the Poor September 2010 SUSTAINABLE DEVELOPMENT NETWORK

2 Contents IDA at Work: Water Supply and Sanitation 1 Emergency Projects Bring Water and Sanitation Services to Millions in Iraqi Cities 6 Turning the Water on in Burkina Faso s Capital City 8 More Reliable Water for Armenia s Capital and Municipalities 10 d IDA at WORK: Water Supply and Sanitation

3 Water Supply and Sanitation Improving Services for the Poor Overall, access to improved water sources in IDA countries rose to 78 percent in 2008 from 65 percent in To continue delivering sustainable and efficient water supply and sanitation services, IDA projects will emphasize operation and maintenance activities, and address the technical, social and institutional issues related to sustainability. CHALLENGE In IDA borrowing countries, 559 million people remained without access to safe water in 2008 and 1.5 billion people were deprived of basic sanitation. Demand for adequate sanitation will increase with expansion of water piped services and household water use. APPROACH The following elements define IDA s approach: A country-based approach ensures that IDA investments are tailored to the needs and capacities of specific countries. For example, IDA assistance in post-conflict countries, such as Afghanistan and Sierra Leone, is mainly focused on reconstruction and rehabilitation of critical infrastructure, while supporting longer-term efforts to strengthen institutional capacities. In countries characterized by a more conducive environment, such as Ghana, Guyana, India, or Vietnam, IDA assistance is focused on expanding and sustaining the delivery of water supply and sanitation services. Global operational experience: IDA brings the lessons and emerging good practices learned in one country and region to other parts in the world. For example, the community-led total sanitation approach developed in Bangladesh and adapted in India is now being tested and further adapted in several countries in Africa, such as Tanzania, Ghana, etc. Through partnerships, the Bank has prepared country water resource strategies for some IDA countries that cover water and IDA at WORK: Water Supply and Sanitation 1

4 IDA at WORK: Sanitation and Water Supply sanitation sector priorities as well as setting sector activities in the context of water resource management. For instance the Iraq water strategy entitled Addressing Major Threats to People s Livelihoods was prepared in The Ghana water strategy is currently under preparation. Budget support: Budget support instruments, such as Poverty Reduction Strategy Credits (PRSCs), have enabled reforms that resulted in greater harmonization, and the prospect for more effective use, of both national budgets and assistance. International cooperation. IDA actively contributes to the international dialogue on water and sanitation. Special attention has been given to Africa through the African Ministerial Conference on Water for Africa s Development. The Sanitation and Water for All partnership helps focus support to IDA countries that are off track on meeting the Millennium Development Goals. Measuring results. IDA helps governments improve their overall monitoring. At the country level, IDA assists its clients in building and strengthening statistical capacity in both sector and central agencies. In the water sector, one tool is the International Benchmarking Network database of water utility performance indicators. The tool provides standardized performance indicators for 2,600 utilities in more than 100 countries, including 58 IDA countries, and covers water suppliers of more than one quarter of the world s urban population. Analysis and advisory service. IDA s analytic and advisory assistance products increased from nine for FY2000 to 39 in FY2010. The studies increasingly address issues that span several sectors, such as community participation, local government reform, public sector reform, and capacity-building. The focus is also on effectively integrating water supply and sanitation into country and regional studies. 2 IDA at WORK: Water Supply and Sanitation

5 Public Expenditure Reviews (PERs) are prepared to help governments assess the effectiveness of public spending in the water and sanitation sector and prioritize different policy options within and across sectors. Such PERs have been conducted in numerous IDA countries. Leveraging knowledge and expertise. Technical assistance to governments is a core component of the Bank s support in IDA countries. Programs such as the Water and Sanitation Program, a multi-donor partnership administered by the Bank, provide support that ranges from facilitating dialogue for project preparation to assisting governments effort in capacity building for successful implementation of the projects. For example, a core priority of Rwanda s PRSC was a move toward private operators in rural water supply. The Water and Sanitation Program worked with the task team to support the government through the contract preparation, tendering, and negotiation process. Results achieved with IDA support The population of IDA countries in Sub-Saharan Africa with access to improved water increased to 57 percent in 2008 from 46 percent in Access to improved water for all IDA countries improved to 78 percent in 2008 from 65 percent in Access to sanitation still trails behind: with only 37 percent in 2008 compared to 21 percent in Some specific results achieved with IDA support are listed below: The Rural Water Supply and Sanitation Project in Tanzania ( ) aided the national rural water supply and sanitation program through the construction of hand pumped supplies and small piped schemes, providing over 500,000 people access to improved water supply and sanitation services. In rural areas of Indonesia, 600,000 households and 3,000 schools have benefited from improved water supply and sanitation services under the Second Water and Sanitation for Low Income Communities Project ( ). The on-going water supply development project ( ) in Vietnam has succeeded so far in providing 1,550,000 people with access to improved water supply and 50,000 people with access to improved sanitation facilities. These results have been achieved through investment in new water supplies and rehabilitation of several water distribution systems in the region. IDA at WORK: Water Supply and Sanitation 3

6 IDA at WORK: Sanitation and Water Supply In Bosnia and Herzegovina, the Mostar Water Supply and Sanitation Project ( ) improved the city s water and wastewater services as part of a broader IDA program in a post conflict environment. By the end of the project, the population benefiting from continuous service rose to 75 percent in 2004 from 59 percent in An Urban Water Supply Project ( ) supported the turnaround of two water utilities in Cambodia. Through the project, 750,000 people gained access to water supply services in Phnom Penh. The number of water supply connections increased almost nine-fold to more than 105,777 from 10,777. Through the India Karnataka Urban Water Sector Improvement Project ( ), continuous, efficient, and sustainable water service delivery was achieved in select urban areas. About 175,000 individuals or 25,000 households benefitted from the project. Bank financing and Other Support Between 1998 and 2010, IDA lending for the water supply and sanitation sector averaged US$577 million each fiscal year. IDA s lending to the sector reached an unprecedented amount of US$1.67 billion in FY2010, a 50 percent increase from FY2009. IDA lending has been concentrated in Africa, which has received about half of the IDA commitments to the sector since Most of the remaining IDA lending in this sector is focused on Middle East /North Africa and South Asia, notably India and Republic of Yemen. Partners The trust funded Water and Sanitation Program works directly with client governments at the local and national level in 25 countries. The Program has led or supported many of the advances made within the water and sanitation sector over the last three decades. Current activities include improving the monitoring of water and sanitation utility performance through the International Benchmarking Network database, and piloting of programs to promote sanitation and hygiene at scale. The World Bank and the African Development Bank (AfDB) are committed to working together to support national programs for rural and urban water supply and sanitation in order to reduce transaction costs and maximize the funds that government and donors can contribute to the sector. The Rural Water Supply and Sanitation Initiative led by the AfDB is an important element of this strategy. The partnership with AfDB and other donors enables the Bank to leverage its IDA funds, and to balance investments between rural, town and urban water supply and sanitation. 4 IDA at WORK: Water Supply and Sanitation

7 Moving Forward The Bank continues to embrace a strategy based on the following principles: use of demand-responsive approaches in service provision; manage services at the lowest appropriate level; adhere to cost recovery policies, where necessary in combination with transparent subsidies targeted to the poor; use of appropriate technologies and standards to ensure cost effectiveness of investments; and shift from sewerage to on-site sanitation and hygiene promotion programs. Finally, there will be an increased focus on improving governance so that water and sanitation infrastructure investments can be operated and maintained in a sustainable manner. IDA will continue to focus on priorities set during the previous cycle, with Africa remaining a major region of focus. IDA is expected to increase lending for water supply and sanitation given the sector s prominence in poverty reduction strategy papers and country assistance strategies. Water and sanitation is currently represented in over 75 percent of poverty reduction strategy papers Bank-wide. The provision of urban water supply will remain important, fuelled by the rapid urbanization taking place in many IDA countries. Sanitation and hygiene promotion components in the overall IDA portfolio are likely to increase as previous projects are starting to show results and create demand. To continue delivering sustainable and efficient water supply and sanitation services, IDA projects will emphasize operation and maintenance activities, and address the technical, social and institutional issues related to sustainability. IDA at WORK: Water Supply and Sanitation 5

8 IDA at WORK: Sanitation and Water Supply Emergency Projects Bring Water and Sanitation Services to Millions in Iraqi Cities Challenge As in the majority of post-conflict countries, most of the water supply and sanitation facilities in Iraq were looted or destroyed in the aftermath of the 2003 invasion. Most Iraqis had limited access to these services. Potable water coverage was as low as 73 percent and 43 percent in urban and rural areas respectively. The consequences were acutely felt in urban centers where the majority of Iraqis live. This low coverage was often exacerbated by electrical power cuts of up to 16 hours per day. About 25 percent of Baghdad s population was unconnected to the water supply network. Wastewater service levels were much lower than potable water service in terms of coverage, service quality, and treatment. Excluding Baghdad, less than 8 percent of the population was connected to the sewer system. Serious environment and health risks associated with poor water quality and inappropriate handling of sewage wastewater posed a health threat to the population. Moreover, seven years after the 2003 invasion, lack of security in Iraq remains the main issue that the government and international organization have to face during service delivery and project implementation. In addition to the security concerns, one of the key challenges facing Iraqis is to develop credible and inclusive institutions that could lead to stability and sustainable economic prosperity. Approach The projects were designed to assist with restoring the basic water supply and sanitation services in eleven cities in Iraq, targeting areas with the greatest and most urgent needs, and where the populations were at serious risk. The projects addressed these needs by completing water supply and treatment infrastructure, including treatment plants, pumping stations, water pipes (including house connections), and sewer and other related infrastructure. The projects also developed roads in urban areas and storm water drainage systems. Additionally, the projects assisted the government in developing related policies and strategies including the National Water Supply and Sanitation Strategic Plan, which is crucial for the country s long-term sustainable infrastructure investment. The projects also had an institutional capacity building component that addressed the need for trained and competent personnel and efficient institutions in the service sector. Results The projects helped restore basic water supply and sanitation services in Iraq s poorest areas in Baghdad and in eight other governorates. They contributed to the reduction of health risks and improved the wellbeing of two million Iraqis. The high percentage of almost 25% of Iraqis in Baghdad that did not have access to clean water in 2004 was reduced significantly by The eleven cities where the project was implemented benefited from newly-developed water treatment plants that in 2004 either did not yet exist or were dysfunctional. The projects impacts were vivid in the impoverished Badawa and Sadr cities, where the changes were felt by the citizens and reflected on property value. The impact of the projects was also felt on the environmental level where contaminated water has been reduced to lower levels compared to Moreover, the project trained about 300 Iraqis who worked for the Ministry of Municipalities and Public Works and the Mayoralty of Baghdad, as well as local consultants and contractors on contract and financial management, procurement, environmental impact assessment, and other skills. 6 IDA at WORK: Water Supply and Sanitation

9 STREETS IN SADR CITY IDA Contribution The World Bank-administered trust fund provided a total of US$175 million through the Emergency Baghdad Water Supply and Sanitation Rehabilitation Project, and the Emergency Water Supply, Sanitation and Urban Rehabilitation Project. IDA financed the Emergency Water Supply Project with a total of US$110 million. Next Steps The ongoing National Water Supply and Sanitation Sector study that addresses the key issues of universal access to, and sustainability and affordability of, the water supply and sanitation (WSS) service infrastructure and reliability provides a promising window of opportunity to reengage with the Iraqi government for the purpose of developing a final strategy. The strategy includes a medium-term action plan for the rehabilitation and extension of the WSS infrastructure and it will also include policy and institution reforms. The Ministry of Municipalities and Public Works has also requested the Bank s technical assistance for building a consensus on improved policies and institutional arrangements in the water supply and sanitation sector. A series of consultation workshops with stakeholders will be held before finalization of the study planned by the end of Due to the successes of the Bank projects, the Iraqi government had been requesting additional water and sanitation projects for an amount of US$400million. BEFORE AFTER IDA at WORK: Water Supply and Sanitation 7

10 IDA at WORK: Sanitation and Water Supply Turning the Water on in Burkina Faso s Capital City Challenge The supply of clean drinking water was quickly running out in Burkina Faso s capital city of Ouagadougou. The problem was that the public water service (The National Water and Sanitation Utility- ONEA), couldn t keep up with the demands of a surging population. The city s population had more than doubled between 1985 and With only 30 percent of the city s population connected to the water system, the government knew it had to act fast. It had to make more water available to the city s residents and strengthen the management of its urban water sector to ensure a stable and efficient supply. Approach Develop new storage capacity to ensure a steady supply of water. Expand coverage by extending secondary and tertiary water distribution networks and by providing connections to low-income households. Promote efficiency by strengthening ONEA s capacity while using a service contract with an international water operator to manage ONEA s commercial, financial, and accounting operations. Results The number of Ouagadougou residents with household connections to piped water more than tripled in six years, from 300,000 in 2001 to 1,040,000 people in A full 94 percent of the city s population 1,480,000 people now has access to safe water. Highlights: Full-pressure water service is now ensured at all times. In 2001, it was chronically intermittent and weak. ONEA s accounting is in order: the annual financial reports are on time and in accordance with international standards. The bill collection ratio has increased from 86 percent in 2001 to 95.4 percent in 2007; and unaccounted-for-water (UFW) was stabilized at 18 percent, which compares well to the best performing water utilities in SSA. The financial equilibrium of the urban water sector has been restored, and ONEA is able to recover its operating and maintenance costs, and its cash contribution to the capital expenditure program (Capex) from collected bills. The cash flow of the sector doubled from CFAF3 billion (US$6 million) in 2001 to CFAF6 billion in 2006 (US$12 million, representing 30 percent of sales). There has been a jump in the staff productivity index, which far exceeded the target of 230 connections per employee initially set for 2007 (the figure now stands at 810 connections). A 2007 survey of ONEA customers found that 85 percent of them were highly satisfied with their water service. IDA Contribution Of the total project cost of US$269.37, IDA s contribution was $85.97 million in the form of an IDA credit. IDA partners in the project were the African Development Bank (AfDB), European Investment Bank (EIB), Islamic Development Bank (IsDB), OPEC Fund for International Development, ONEA: Office 8 IDA at WORK: Water Supply and Sanitation

11 National de l Eau et de l Assainissement, Kreditanstalt fur Wiederaufbau (KFW), Arab Bank for Economic Development in Africa (BADEA), Kuwait Fund for Arab and Economic Development (KFAED), European Development Fund, French Development Agency (AFD), and the West African Development Bank (WADB). While assembling the technical and institutional features of the project, the IDA team addressed social and environmental aspects as well. Drawing on lessons from earlier projects in the region, they found the major risk factors then proposed ways to mitigate them. Because of IDA s long experience in similar multi-donor sector reform operations, its role was critical for the implementation of the sector reform. IDA was able to convene other donors around project preparation and funding, and guarantee the operation s technical soundness. IDA knowledge was also put to work to ensure that governance and fiduciary issues were addressed. The number of Ouagadougou residents with household connections to piped water more than tripled in six years, from 300,000 in 2001 to 1,040,000 people in Next Steps An IDA-financed $US80 million follow-up operation was approved by the Board in May In addition, with the support of the international donor community, Burkina Faso has prepared a National Water Supply and Sanitation Program (PN-AEPA) for achieving the Millennium Development Goals. Donors (including IDA) will finance the program up to US$240 million over the period This program will support post-completion operation of this project since IDA and other donors will continue to assist the urban water sector and ONEA until IDA at WORK: Water Supply and Sanitation 9

12 IDA at WORK: Sanitation and Water Supply Armenia: Safe and Constant Water Supply with Reduced Environmental Pollution Challenge Prior to 1998, despite an abundance of water in the country, for almost all Armenians, water was available for only a few hours a day, with poor pressure and quality, and high leakage and waste. The system suffered from systemic problems associated with the poor condition of networks, limited institutional capacity, and weak financial performance. Over the past decade, the government of Armenia has strived to improve access, reliability and quality of the drinking water and its infrastructure Approach While recognizing that the main reason for the poor water services was the management of the available water resources, the International Development Association and the government introduced an example of a performance-based management contract for Yerevan in 2000, under a Municipal Development Project. Since then, private sector participation is increasingly seen by the Armenian government as a key component of sector reform strategies aimed at not only at improving service provision, but also as an agent of institutional change. The Yerevan Water and Wastewater Project (YWWP) builds upon earlier reforms and continues to strengthen Yerevan s water supply while reducing environmental pollution. The government opted for increased private sector participation a lease contract for ten years. Based on this positive experience, the Municipal Water and Wastewater Project (MWWP) introduced a public-private partnership model for urban areas outside Yerevan, covering about 33 percent of the population. The reform continues under Additional Financing, scaling up the rehabilitation and investments under the MWWP. Results In Yerevan, where over 332,000 households have benefitted from these improvements: The duration of water supply with a base value of 19.6 hours, after a significant decline to 17.4 hours, has increased to 21.5 hours (end of project target: 24 hours/day). The number of sites for wastewater discharges has been significantly reduced from 17 to 8 (end of project target: 8). Water quality remains high, bacteriological safety increased from 93 percent at baseline to 98 percent now (end of project target: 98 percent). Electricity consumption decreased from 119 megawatt hour (MWh) at baseline to 24 MWh now (exceeding end of project target: 50 MWh). In areas outside Yerevan, where 264,000 households have benefitted from these improvements: The average daily hours of drinking water service has increased significantly, from an average of 6 hours/day in 2004 to 13.2 hours in quarter one of Cities with minimal daily hours of water increased from 68 percent at baseline to 87 percent now). Revenue collection increased significantly (from 47.9 percent in 2004 to about 90 percent in 2010). Billing on the basis of metered consumption increased from 40 percent at baseline to 75 percent now. Bacteriological safety compliance increased from 93 percent at baseline to 98 percent now. 10 IDA at WORK: Water Supply and Sanitation

13 IDA Contribution To improve the access, reliability and quality of drinking water, IDA provided the first credit of US$30 million to Yerevan s water sector with Municipal Development Project (MDP) in Recognizing the need for continued support, the government requested another IDA project the on-going Yerevan Water and Wastewater Project (YWWP) (US$20 million). The closing date is February 2011, with an expected one-year extension. In addition, in 2004, IDA provided US$23 million under a new project, Municipal Water and Wastewater Project, for the areas outside Yerevan for improvement of water supply in terms of coverage, quality and cost. To scale up the ongoing program of water system rehabilitation and improvements under the MWWP project, in 2008 IDA provided Additional Financing of US$20 million. The closing date is December Partners There is a strong partnership among key development partners in Armenia s water sector. IDA coordinates with the Asian Development Bank on water sector reforms, particularly on exchange of information on mutual efforts in the Armenia Water Supply Company (AWSC) service area. The European Bank for Reconstruction and Development has invested in five treatment plants in the Sevan region. Germany s development bank (Kreditanstalt für Wiederaufbau, KfW) is financing water supply investments in the cities of Armavir, Vanadzor and Gyumri. The French government provided funding for Yerevan s water and wastewater services, including some investments in the Aeratsia wastewater treatment plant. The coordination efforts bode well for future improvements of the sector. The quality, reliability, and efficiency of water supply services improved dramatically for the Yerevan service area of around 1.3 million people. IDA at WORK: Water Supply and Sanitation 11

14 IDA at WORK: Sanitation and Water Supply Armenia Next Steps Armenia appears to be on target to achieve the Millennium Development Goals of water and sanitation by Significant investment is still needed, however, to reduce excessive amounts of unaccounted for water, rehabilitate poor water and wastewater infrastructure, and continue institutional and financial capacity building. The disparities are more acute between urban and rural areas. The shortcomings in the system can only be remedied through rehabilitation of water systems with well established prioritizations and the adoption of regulatory and institutional changes that introduce adequate incentives to improve efficiency and management of the supply systems and infrastructure. An increased emphasis should also be put on improvements in wastewater collection. 12 IDA at WORK: Water Supply and Sanitation

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