Bank Netherlands Water Partnership Water Supply & Sanitation Windows Progress Report Third Quarter, 2002 July 1 to September 30, 2002 Bank-Netherlands Water Partnership -Water Supply and Sanitation Windows www.worldbank.org/watsan/bnwp 1818 H street NW, Washington DC 20433 USA · Bnwp@worldbank.org · tel. 1-202-4587796 BANK NETHERLANDS WATER PARTNERSHIP WATER SUPPLY AND SANITATION WINDOWS COMPREHENSIVE QUARTERLY PROGRESS REPORT THIRD QUARTER, 2002 1. 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 www.worldbank.org/watsan/bnwp or by writing to bnwp@worldbank.org. 2. The quarterly progress report 2.1 Purpose This Quarterly Progress Report outlines the progress in work of the Water Supply and Sanitation Windows of the Bank Netherlands Water Partnership during the third quarter of 2002 (1 July 2001 ­ 30 September 2002). The purpose of the Quarterly Progress Report is to: · 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 Quarterly Progress Report The Quarterly Progress Report is organised with a main text with an annex giving the detailed progress reports for each project and activity. 3. Key developments in quarter BNWP activities in the third quarter of 2002 focused on the development of a number of prequalified flagship projects, while various smaller activities were ongoing or started implementation. Also a start was made with the development of a second generation of activities and projects. 2 3.1 New projects and activities Three projects have been submitted for approval by the sector board and are expected to start implementation in early October: Pro-poor transaction design; Upstream work for private sector participation and reform (#005) Ensuring that urban water sector reforms involving the private sector are more effective at increasing access and service quality for poor consumers. PPP in urban WSS: building capacity for civil society engagement (#006) 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. Follow up support to communities after construction of rural WSS facilities (#007) Identifying the types of follow-up support to communities after the construction of rural water and sanitation Facilities that are needed to enable sustainability A number of prequalified projects are still under development or are being revised based on the comments of peer reviewers. These project are expected to start operations in the last quarter of 2002: Community water supply management models for low income urban areas (#001). Small scale independent provides for water and other urban services (#011). Enhancing the empowerment of poor women and men within communities (#017). Development of decision support model for PSP in the municipal WSS sector (#032). Beyond capital subsidies: financial alternatives for achieving rural universal coverage targets (#047). One new activity was started up: Assessing Resource Flows for Water Supply and Sanitation within a PRSP Framework (#061) - developing a framework to assess the flow of resources for WSS and their link to sector reforms. The framework will be developed in Ethiopia and generalized for use elsewhere. 3.2 Closed projects and activities No projects and activities were finalised in this quarter. 3.3 Events BNWP co-sponsored two events during the third quarter of 2002: The AFRICASAN conference in Johannesburg in July 2002 brought together high level decision makers from around the African continent. The conference raised the profile of sanitation and hygiene in Africa at the WSSD and strengthened leadership and advocacy for improved sanitation and hygiene in Africa. It also was a first step to develop an action plan for sanitation and hygiene in Africa The AFRICASAN conference was co-hosted by the Republic of South Africa, Water and Sanitation Program-Africa and the Water Supply and Sanitation Collaborative Council. 3 The WaterDome took place from 28th August till 3rd of September in Johannesburg, South- Africa, back-to-back with the United Nations' World Summit on Sustainable Development (WSSD). The WaterDome helped to put "water and sanitation" at the top of the summit's agenda.. The WaterDome created a unique opportunity for the water sector to show the participants that water is at the crossroads of development and environment. The WaterDome offered a timely opportunity to present the BNWP-WSS as a key promoter of sector reform in the water and sanitation sector with a strong poverty focus. A number BNWP flagship projects were presented. The BNWP co-ordination team also took part in one other event: In July the Water Supply and Sanitation Specialist attended the International Conference on Water Governance organized by the UNESCO Interdisciplinary Chair for Sustainable Water Management and, the Maghreb-Machrek Water Union, in cooperation with the UNESO-IHP, WSSCC, and the International Water Secretariat. The conference was attended by 120 people, mainly from the Mediterranean region. BNWP gave key note speech on "effective water governance". An activity on water governance in WSS is being prepared. 3.4 Program management The BNWP website (www.worldbank.org/watsan/bnwp) was extended to include a searchable database of projects and activities. The new TF structure was largely put in place, and will be finalized in early October. 4. Overview of present portfolio The total value of the present portfolio and pipeline of projects is USD 7.9 million. This budget includes projects and activities that are approved by (the chair of) the Sector Board (USD 4.8 million), and prequalified projects (USD 3.1 million). The planned disbursement per quarter is presented in figure 1. 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 02-I 02-II 02-III 02-IV 03-I 03-II 03-III 03-IV 04-I 04-II 04-III 04-IV 05-I 05-II 05-III planned disbursement [USD] actual disbursement Figure 1: Planned disbursement per quarter 4 This approved budget of USD5.8 million leverages cofinancing of USD0.7 million from other funding sources. The focus of the total portfolio (approved plus prequalified) is summarized in figure 2. There is a reasonable spread across regions and deliverables. An extra effort was made during this quarter to increase the number of projects on financing systems and sanitation and hygiene in order to balance the portfolio, resulting in a number of new activities. per region per deliverable per window Global advice on approaches Rural WSS Africa Urban WSS East Asia & Pacific policy awareness and dialogue Financing systems Europe & Central Asia synthesised knowledge & info Sanitation & hygiene Latin America & Carribean research & development Mediterranean & N. Africa Figure 2: Break up of portfolio in windows, regions, and deliverables 5. Financial and progress report Table 1 gives a specification of accumulated progress as well as expenditure per window. The total expenditure between July 1 and September 30, 2002 was USD209,749. This is 74% of the planned budget for the third quarter of 2002. The fact that the expenditure is lower than expected can be explained by some delays in billing by and therefore payment of consultants. The outputs achieved in the third quarter amount to 103% of the targets set for the quarter. This number represents a weighted average of the individual project achievements, as specified in the annex. BNWP was still building up activities in the third quarter of 2002, disbursements are still relatively low. Only a limited portfolio was implemented, but the implemented activities performed on target. 5 Table 1: Outputs and expenditure first quarter 2001 (USD) Window Performance Quarterly Expenditure (% of target) budget USD % of budget WSS in rural areas and small towns 88% 65,500 52,579 80% Reform of urban WSS 83% 51,200 28,002 55% Dev. of sustainable financing systems 77% 27,500 0 0% Sanitation and hygiene promotion 147% 42,500 65,412 154% Capacity building 88% 35,300 11,635 33% Program coordination N/A 60,000 52,122 87% Grand total 103% 282,000 209,749 74% Indicates that % of spent budget > % of reached target 6. Plans for next quarter The BNWP will aim to start implementation of the outstanding project proposals during the third quarter. The pipeline will be reviewed, with projects development either being speeded up, or projects being revised. The BNWP team will present progress of the first nine months of the program at the Dutch Water Week in October 2002. 6 Annex: Overview per project or activity # Title Short description Approved Windows Current status Project period Quarterly budget (USD) performance 001 Community water supply management Supporting the development of tools and design 150,000 Urban WSS Under 15 months N/A models for low income urban areas alternative management arrangements for effective development community management of low income urban water supply systems 005 Pro-poor transaction design; Upstream Ensuring that urban water sector reforms involving 780,000 Urban WSS Under 18 months N/A work for private sector participation the private sector are more effective at increasing development and reform access and service quality for poor consumers 006 PPP in urban WSS: building capacity Addressing the role of civil society in public private 150,000 Urban WSS Under 21 months N/A for civil society engagement partnership transactions and build capacity of key Capacity building development civil society groups, and policy makers to engage positively in the reform process 007 Follow up support to communities after Identifying the types of follow-up support to 180,000 Rural WSS Under 18 months N/A construction of rural WSS facilities communities after the construction of rural water development and sanitation Facilities that are needed to enable sustainability 008 Public private partnership to promote Promoting partnership between the soap industry, 850,000 Hygiene & Operational Jun 02 ­ Dec 03 164% handwashing with soap public agencies and NGOs to provide soap and sanitation promote handwashing with soap to decrease diarrhoeal diseases 011 Small scale independent provides for Enhancing the global understanding of ssips and 420,000 Rural WSS Under 36 months N/A water and other urban services their importance in the water supply and sanitation Urban WSS development sector, and the impact of the policy and business environments in which they operate 012 Trends in the Desalination Market in Improving the understanding among Bank staff and 350,000 Urban WSS Operational Jun 02 ­ Sep 03 50% the Middle East and Central Asia clients in the Middle East and Central Asia of recent developments in the desalination industry 015 Consultation workshop with African Organizing a three day high-level seminar of 50,000 Urban WSS Operational Feb 02- Jun 02 100% water operators in Dakar African water policy decision makers to develop a roadmap on how to improve capacity of water ministries in implementing sector reform 017 Enhancing the empowerment of poor Assessing the extent of empowerment being 147,000 Rural WSS Under 18 months N/A women and men within communities effected, specifically for poor women and men development within user communities, as a result of water and sanitation interventions 020 State of the art hygiene and sanitation Supporting the implementation of effective 530,000 Rural WSS Operational Jun 02 ­ Dec 03 50% promotion component design of large instruments for improving hygiene and sanitation Hygiene & scale RWSS programs behaviours in rural communities in the context of Sanitation large-scale rural water supply and sanitation projects 021 Addis Ababa International Conference Organizing a conference to take stock of the 50,000 Rural WSS Operational Apr 02 ­ Aug 02 82% "Water Supply and Sanitation Services lessons learned on water supply and sanitation in Urban WSS in Small Towns and Multi-Village small towns and to launch the new BWNPP small Schemes" town initiative 7 # Title Short description Approved Windows Current status Project period Quarterly budget (USD) performance 026 Scaling up sustainable rural water Characterizing the necessary supporting 50,000 Rural WSS Operational Feb 02 ­Jul 02 92% supply services environment for successful scaling up of sustainable rural water supply services, such as demand response approaches 028 Understanding the Infrastructure Improving our understanding of infrastructure 375,000 Financing systems Under 18 months N/A Environment of Small and Medium shortages faced by small and medium enterprises development Firms in transitional and developing economies, the impact of such shortages on firm productivity and competitiveness, and the firms' coping mechanisms 032 Development of decision support Developing a modelling framework that links utility 325,000 Urban WSS Under 16 months N/A model for PSP in the municipal WSS pricing and investment decisions with water development sector resources allocation 033 Modes of engagement with public Developing better performing public sector water 628,000 Urban WSS Operational Jun 02 ­ Dec 04 63% sector WSS in developing countries utilities in developing countries.- identifying, Capacity building categorizing and analyzing various international models for public sector water service provision 042 Toolkit for Rural Water and Sanitation Providing task teams with guidelines and tools for 50,000 Rural WSS Operational Mar 02 ­Sep02 85% Components in Multi-Sector Projects designing, implementing, and monitoring & evaluating RWS components in multi-sectoral projects 043 Town Water Supply and Sanitation Building appropriate models for service provision 1,030,000 Rural WSS Operational 18 Jun 02 ­ Dec 100% Initiative for town water supplies, by identifying, assessing Urban WSS 03 and market testing professional support options for town water supply, and by investigating ways to aggregate towns 047 Beyond capital subsidies: financial Documenting the sustainability and scalability of 400,000 Rural WSS Under 14 months N/A alternatives for achieving rural government capital subsidies in the rural water Financing systems development universal coverage targets sector; and financial alternatives such as use of non-public funds, private participation, inflow of donor funds 050 Evaluation of Pro-Poor Subsidies for Assessing the effectiveness of the subsidy 50,000 Financing systems Operational May 02 ­ Aug 02 90% Urban Water Services in West-Africa schemes used in Senegal and Ivory Coast in providing piped water supply to the poor 051 Developing a Flowchart for Providing support to the Argentina's Renegotiations 50,000 Financing systems Operational May 02 ­ Aug 02 75% Renegotiations: Assistance to Commission in defining the renegotiation process, Urban WSS Argentina's Concession Contract and renegotiation policies and strategy, and Renegotiations Commission developing a flowchart on renegotiation that can be applied in other countries 052 Franchising in Water Supply and Investigating the potential of franchising as a 50,000 Rural WSS Operational Jun 02 ­ Oct 02 103% Sanitation means of providing water and sanitation services in Urban WSS small and medium sized towns and in marginal urban areas 8 # Title Short description Approved Windows Current status Project period Quarerly budget (USD) performance 054 Development of an African Sanitation Assessing the state of sanitation and hygiene in 50,000 Hygiene & Operational Jun 02 ­ Sep 02 105% and Hygiene Strategy (phase I) Africa, sharing experiences and lessons learned by Sanitation people and organizations working in this field, and raising the profile of sanitation and hygiene in Africa 060 Improving efficiency and competition Disseminating and tailoring the PSP Toolkit to the 50,000 Urban WSS Operational May 02 ­ Aug 02 65% of WSS provision in medium and small legal, regulatory and social situation of W&S at municipalities in Brazil municipal level in Brazil 061 Assessing Resource Flows for Water developing a framework to assess the flow of 50,000 Financing systems Operational Sep 02 ­ Feb 03 100% 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. WB13183 L:\BNWPP\Progress Reports\BNWP 2002 Q3.doc June 9, 2003 11:47 AM 9