WATER P-NOTES ISSUE 48 JUNE 2010 55280 Strategic Environmental Assessment: Improving Water Resources Governance and Decision Making T he SDN calls for elevating the environment into plan; identify hydropower, urban water supply or upstream processes such as policy, programmatic, irrigation investment options; support trans-bound- and investment dialogue. In its 2002 Environ- ary water resources management and development; ment Strategy, the Bank committed to use strategic or institute and implement sectoral strategies and environmental assessments (SEAs), an environmental programs (see Figure 1). But, relatively few SEAs planning tool for improving decision-making at the have been applied in the water sector, and few strategic level of decision-making--policies, legisla- regions have introduced systematic procedures for tion, strategies, plans, and programs (PLSPP)--and conducting SEAs in the water sector. as a process for improving public policy design and The overall goal of this report is to help water good governance of natural resources. SEAs share resources and environment professionals use SEAs many concepts and characteristics as integrated to effectively implement the principles of IWRM. water resources management (IWRM), the accepted It recommends a framework for expanding use of paradigm for efficient, equitable, and sustainable SEAs to mainstream environmental considerations management of water resources since the 1990s. in water resources policy, legislative and, institu- IWRM recognizes the dual nature of the environment tional reforms, planning and development lending as both a water using sector and a provider of ser- decision-making as well as for enabling adaptation vices that maintains water resources for all sectors. in the water sector. Although developing nations have increasingly accepted IWRM at the national policy and strategy levels, it is not practiced effectively. Some elements SEA Case Studies and Water Policies are implemented independently to suit certain The report used a structured approach to analyze 10 requirements, and others are neglected, particu- geographically diverse case studies of SEAs in the larly those practices concerned with environmental water sector (including 7 Bank-funded projects and sustainability. 3 non-Bank funded cases), four national and state Because of shared concepts and characteristics, water policies1, and an in-depth pilot case study of SEAs can serve as a complementary process to sup- water reform in a developing country (Tanzania). The port IWRM at many levels through helping: develop analysis reviewed diverse sectors and different deci- a national or sector water policy; enact water legislation; draw up river basin plans; establish a 1 These include National Water Policy for South Africa (1997), river basin institution; formulate and implement a Tanzania National Water Policy (2002), India National Water national water supply, irrigation or energy master Policy (2002) and Victoria Water Policy (2004). This note highlights the key messages from the publication by Rafik Hirji and Richard Davis from the Water Sector Board Discussion Paper 12 Strategic Environmental Assessment: Improving Water Resources Governance and Decision Making, April 2009. Readers may downloaded two volume report from www. worldbank.org/water. WATER P-NOTES the team leader must understand the inter- Figure 1. The Relationship Between connections between economic, social, and Policy, Legislation, Strategies, environmental factors. Plans and Programs and Projects 3. The assessment methods need to be suited to Policy SEA the characteristics of the issues. Legislation Strategy 4. Consultation is essential but does not always Strategic SEA need to be widespread; however, it is important Plans to include the stakeholders who will be affected SEA by the decision. The consultation and participa- Program tion process should be planned to ensure that participants are well briefed and involved at Tactical Project EIA appropriate stages of the process. 5. The spatial scale of the SEA impacts its design; when the target area is large, appropriate tools are required to conceptualize problems sion levels--strategic, programmatic, and planning. and to engage all stakeholders. SEAs can also Table 1 lists the cost, duration and consultation span strategic scales: such as the capacities of of case studies. The SEAs covered spatial scales institutions, the relevance and consistency of policies and legislation, mechanisms to involve from small catchments to large transboundary vulnerable groups, and political economy fac- regions. The case studies illustrate how SEAs can tors that affect implementation of the plans and serve diverse purposes. Two SEAs were estab- programs that trigger the SEAs. lished to assess the potential social and environ- mental impacts of a specific draft instrument. Two more assessed the institutional structures within Substantive Lessons which a program was to operate. The other six · The process of interacting with different stake- SEAs were undertaken before a specific instru- holders, examining causative influences and ment had been formulated. Three SEAs were used longer term consequences, and integrating to provide information for a plan, program or environmental, social, and economic consider- strategy about to be developed. The remaining ations is as worthwhile as the findings. This pro- SEAs were not used to either assess draft instru- cess should commence early in the preparation ments or to provide specific environmental input of the PLSPP and continue after the study has been completed. into a new instrument about to be developed. Instead their purpose was to better understand, · The most effective SEAs established funda- clarify and structure complex situations and mental changes in national policies, laws and develop a framework for action. The SEAs also institutions; they were undertaken at opportune diverged considerably between those that relied times when there was political receptivity to on formal analytical methods and those that change. In some cases, economic arguments played a key role, but these changes usually relied on participative methods. took many years, which meant that develop- ment partners and governments had to stay Procedural Lessons committed over an extended period. 1. The objectives of the SEA and the terms of ref- · SEAs need not be generated by environmental erence (TOR) must be clear and well-formulated concerns. Some effective SEAs were primarily for the SEA to be influential. driven by factors other than the environment, although environmental sustainability played 2. The professional composition of the team an important role. Successful SEAs led to water and leadership of the team is important. policy reforms and full implementation of water- The SEA team must represent a balance of related programs such as the establishment of the sectors contributing to the study, and river basin institutions. 2 ISSUE 48 · JUNE 2010 · Perhaps the most significant finding was that the policy and legislation that have subsequently sup- SEAs often cost less than $100,000, a small ported multi-sectoral approaches; the Palar Basin price to pay for a tool that can lead to profound SEA led to a rollout of water resources SEAs across long-term changes in water resource manage- Tamil Nadu, India; and the Colombia Water Supply ment. Some of the most effective SEAs were and Sanitation SEA led to progressive water sector completed in less than 12 to 15 months and cost reforms and multi-sectoral involvement. less than $100,000--a fraction of the cost of the strategy/program/plan they were supporting. Some initially skeptical institutions became advocates of increased stakeholder participation as a result of their experiences during the SEA; in Lessons on SEA Support for IWRM two cases, this led to legislative requirements for public participation. These outcomes contributed to IWRM encompasses all uses of water (see Figure 2). improved public governance and a number of SEAs Its major principles of are multi-sectoral water man- contributed to decentralization of water resources agement, stakeholder participation, and the use of institutions and the establishment or strengthening of economic instruments to underpin resource manage- participative river basin institutions. ment. The case studies illustrated how the SEAs had contributed to all three principles. However, SEAs did little to encourage the use of economic instruments: one advocated charges Two cases explicitly contributed to implementing to control water use and the discharge of pollution; the principle of multi-sectoral water management, another advocated permits for fishing and its export and all cases raised environmental sustainabil- and to provide a source of finance for water resources ity questions. A number of SEAs were undertaken operations. There was no attention to demand man- by multi-sectoral task forces, potentially advanc- agement. One case study focused on improving pri- ing multi-sectoral approaches to water resource vate sector investment, including through reduced and management (WRM), and all but one case study more defensible water quality standards. considered multi-sectoral impacts. Some SEAs had long-term influence on integrative approaches to The in-depth pilot case study of water sector water sector management: the Tanzanian Rapid reforms in Tanzania demonstrated that other water Water Resources Assessment catalyzed changes in using sectors (such as energy, agriculture, and live- Table 1. Cost, Duration, Consultation of Case Studies Extent of Level of Case Study Duration Cost Consultation* Influence Water Supply/Sanitation SEA, Colombia 3 months $28,000 Moderate High RWRA, Tanzania 15 months $50,000 Limited High SEA of Main River Basins, Czech Republic 18 months $26,000 Limited Low Power Development SecEA, Kingdom of Nepal 14 months $1,200,000 Extensive Moderate Water Resources Sector Adjustment Loan SEA, 4 months $70,000 Extensive Moderate Indonesia Pioneer Catchment Study, Australia N/A N/A None Moderate SEA of Mhlathuze Catchment, South Africa 24 months $280,000 Moderate Low SEA of Usutu-Mhlathuze WMA, South Africa 36 months $700,000 Moderate Low Palar Basin SEA, India 12 months $20,000 Moderate High Nam Theun II Power, Republic of Laos N/A N/A Limited Moderate , Lake Victoria TDA/SAP NELSAP Region 30 months $1,000,000 Extensive Moderate * "Limited" means primarily confined to government ministries; "Moderate" means selected public consultations as well as ministries; "Extensive" means widespread public consultations, sometimes involving multiple rounds. 3 WATER P-NOTES Figure 2. Conceptual Framework for Integrated Water Resources Management (adapted from the Global Water Partnership) Integrated Water Resource Management Infrastructure for management of floods and draughts, conjunctive use of surface and groundwater, multi-purpose storage, water quality management and source protection. Water Water Water Water Other Policy/Institutional framework for supply side and demand for for for for envi- uses management options people food energy ronment Management instruments Political economy of water management Water by usage stock) need to reform and harmonize their policies, their different terminology, techniques, and legislation, and strategies if the advances in WRM approaches, thereby increasing the power and are to be effective. SEAs would be suitable instru- coherence of their efforts. ments for coordinating these changes across sectors. · Establish an enabling environment where sec- toral policies are harmonized to support IWRM principles; the appropriate SEA type is used or A Framework for Expanding the Use customized, depending on different needs to of SEAs for IWRM be met; and stakeholder participation in SEAs is promoted. The Bank can help develop this SEA implementation promotes important IWRM enabling environment by using its influence and objectives and helps remove impediments that knowledge to help introduce SEAs and build up often stall IWRM progress from the policy level into experience. practice--and SEAs serve as an alternative route · Build capacity by emphasizing the benefits of for introducing environmental considerations into SEAs, particularly among senior decision mak- strategic and sectoral water resources decision- ers. It is important for staff from sectoral institu- making, underlying institutional and governance tions to know how to work in multi-disciplinary factors, legislation, strategies, plans, and pro- teams to conduct SEAs. Useful assessments grams. By extension, SEAs also offer an important depend on good quality water resources data, tool for developing adaptation programs for water so reliable systems for collecting and monitor- resources management and development. ing data must be in put in place. The World Bank can advance the use of SEAs · SEAs need to be well-planned, featuring an to mainstream environmental concerns into water experienced team leader capable of dealing resources management using a framework that will: with the diversity of sectoral issues arising in · Bridge disciplinary boundaries by helping envi- IWRM, TORs that are clear and specific, ana- ronmental and water resources professionals lytical procedures suited to the problem, and understand the points of connection between fully-integrated stakeholder participation. The Water Sector Board Practitioner Notes (P-Notes) series is published by the Water Sector Board of the Sustainable Development Network of the Water World Bank Group. P-Notes are available online at www.worldbank. Sector org/water. P-Notes are a synopsis of larger World Bank documents in Board the water sector. 4 THE WORLD BANK | 1818 H Street, NW | Washington, DC 20433 www.worldbank.org/water | whelpdesk@worldbank.org