PARTNERSHIP FOR SOUTH ASIA ANNUAL REPORT 2012 GROWING TOGETHER SOUTH ASIA REGION, THE WORLD BANK TABLE OF CONTENTS 1/OVERVIEW 1.1 Background…………………………………………………….......……........................12 1.2 Why an Umbrella Trust Fund?……………………………………............................…..12 1.3 Structure of the UTF………………………………………….......................…………...13 1.4 The Operating Environment in SAR……………………………...............................…...16 1.5 Impacts…………………………………………………………………..……...................17 1.5.1 Multiple Impacts of the UTF…………………………………………............................17 1.5.2 Results and Outcomes…………………………………………….............................…18 1.6 Strategic Management…………………………………………………..........................22 1.7 Strengthening the Partnership…………………………………..……….........................24 1.8 Going Forward……………………………………………………................................24 BANK EXECUTED WINDOWS 2/WATER AND SANITATION INITIATIVE INDIA 2.1 The Case for Water Supply and Sanitation Reforms in India………..............................…30 2.2 Objectives of WSI India…………………………………........................................…...32 2.3 Areas of Technical Assistance……………………......................................…………..34 2.4 Financial Summary……………………………………..................................................36 2.4.1 Disbursements and Commitments………………………………………........................36 2.4.2 Urban and Rural Projects………………………………………………………………37 2.4.3 Public Private Partnerships………………………………………………………………37 2.4.4 Type of Activity Supported………………………………………………………………38 2.5 Preliminary Results………………………………………………………………………...38 2.5.1 Scaling Up Innovation……………………………………….………………………….38 2.5.2 Supporting PPPs……………………………………….………………………………..39 2.5.3 New Lines of Business/Scaling Up Innovations………….……………………………...39 2.5.4 Gender and WSS……………………………………………………………………..…39 2.5.5 Just In Time (JIT) Support………………………………………………………………..41 2.6 Going Forward…………………………………………………………………………...41 3/SOUTH ASIA GENDER INITIATIVE 3.1 Why Gender Equality Matters in South Asia……………………………………………..44 3.2 Objectives of SAGE Initiative……………………………………………………………..46 3.3 Areas of Technical Assistance……………………………………….…………………….46 3.3.1 Improving Women’s Labor Force Participation………………………………………..47 3.3.2 Social Inclusion and Gender Relations…………………………………………………48 3.3.3 Gender and Human Development………………………………………………….…….48 3.4 Financial Summary…………………………………………..…………………………….51 3.4.1 Disbursements & Commitments……………………………….………………………….51 3.4.2 Allocations by Country……………………………………………………………......52 3.4.3 Allocations by Thematic Pillar……………………………………………………….....52 3.5 Preliminary Results………………………………………………………………………...53 3.5.1 Labor Force Participation………………………………………………………………53 3.5.2 Social Inclusion and Gender Relations…………………………………………………54 3.5.3 Gender and Human Development…………………………….…………………………54 3.6 Going Forward……………………………………………….….……………………....54 4/INFRASTRUCTURE FOR GROWTH 4.1 Why Infrastructure and Climate Change Matters for Growth in South Asia…………...58 4.2 Objectives of the Infrastructure For Growth Window………………………………..…59 4.3 Areas of Technical Assistance……………………………………………….…………....59 4.3.1 Regional Economic Integration……………………………………………….……….63 4.3.2 Climate Change…………………………………………………..……….…………….63 4.3.3 Cross Cutting Areas……………………………………………………..……………..64 4.4 Financial Summary……………………………………………….……………………......66 4.4.1 Allocations Made by Thematic Area…………………………….………………………66 4.4.2 Allocations by Sector……………………………………………….….……………….66 4.4.3 Allocations by Country……………………………………………….….…………….67 4.5 Preliminary Results……………………………………………….……….………………...67 4.6 Going Forward……………………………………………………..……….……………68 RECIPIENT EXECUTED WINDOWS - SRI LANKA 5/SRI LANKA NORTH EAST WATER AND SANITATION AND HYGIENE PROJECT 5.1 The Case for Water and Sanitation and Hygiene in North East Sri Lanka……..….…….74 5.2 Project Design and Objectives……………………………………………..………….....76 5.3 Results to Date………………………………………..…………..……………………….80 5.4 Financial Summary…………………………………………………..……………………..84 5.4.1Allocations……………………………………………..…………………..…………….84 5.4.2 Disbursements and Commitments……………………………………….………………...84 5.5 Partnership with AusAID……………………………………………..….…………………85 6/NORTH EAST LOCAL SERVICES IMPROVEMENT PROJECT 6.1 The Case for Local Services Improvement in North East Sri Lanka………………………88 6.2 Project Design and Objectives……………………………………………..…………......90 6.3 Co-Financing by AusAID……………………………………………..……………..........92 6.4 Results to Date……………………………………………..………………………..........93 LIST OF HIGHLIGHTS Highlight 1 - Communicating Stories of Change………………………………………23 Highlight 2 - Engendering Urban WSS in India…………………………………….......….40 Highlight 3 - Masculinity and Development………………..………………………….....49 Highlight 4 - The Challenge of Regional Integration in Post Conflict Lagging Border Regions………….............………...62 Highlight 5 - Addressing Gender and Disability Issues………………………………...79 LIST OF TABLES TABLE 1 - PFSA UTF AMOUNT PLEDGED AND CONTRIBUTED……………….……………….....14 TABLE 2 - PFSA UTF ADDITIONAL FUNDS LEVERAGED………………..…………………............21 TABLE 3 - SL-NE-WASH BENEFICIARIES AND SOCIAL VULNERABILITY………………..…………81 TABLE 4 - SL-NE-WASH HYGIENE, EDUCATION, AND AWARENESS PROGRAMS……..……...83 TABLE 5 - SL-NE-WASH FUNDS DISBURSED AND COMMITTED AS JANUARY 2013…..……....85 TABLE 6 - NELSIP Coverage of Local Authorities in the Northern and Eastern Provinces……………………………………....91 TABLE 7 - NELSIP RESULTS FRAMEWORK AND MONITORING………………..………………....93 LIST OF DIAGRAMS DIAGRAM 1 - PFSA UTF STRUCTURE...............................……………….………………..............15 DIAGRAM 2 - The Theory of Change.......................……………….………………..............33 Diagram 3 - WSI Thematic Pillars……………....................................................................35 DIAGRAM 4 - SAGE Thematic Pillars........………………..........................…………............50 DIAGRAM 5 - ifg Thematic Pillars........………………..........................…………................65 LIST OF MAPS MAP 1 - SOUTH ASIA REGION (COVER)...........................…………….………………..............27 MAP 2 - SRI LANKA NORTH AND EAST PROVINCES (COVER)......................…………...........71 MAP 3 - NE-WASH PILOT PROJECTS DISTRICTS...........................................…….......…...........75 MAP 4 - NELSIP INFRASTRUCTURE SERVICE DELIVERY BY THE PROJECT.............……............95 LIST OF FIGURES FIGURE 1 - WSI DISBURSEMENTS & COMMITMENTS……………….…………………….……...36 FIGURE 2- WSI URBAN & RURAL PROJECTS ALLOCATIONS…………...…………………….....37 FIGURE 3 - WSI PUBLIC PRIVATE PARTNERSHIPS ALLOCATIONS……………….………..……...37 FIGURE 4 - WSI TYPE OF ACTIVITY SUPPORTED………………..………………………………….38 FIGURE 5 - SAGE DISBURSEMENTS & COMMITMENTS………………..……………………….....51 FIGURE 6 - SAGE ALLOCATIONS BY COUNTRY………………..…………………………..…......52 FIGURE 7 - SAGE ALLOCATIONS BY THEMATIC PILLAR……………….……………………........52 FIGURE 8 - IFG ALLOCATIONS BY THEMATIC AREA…………………………………………......66 FIGURE 9 - IFG ALLOCATIONS BY SECTOR……………….………………………………….........66 FIGURE 10 - IFG ALLOCATIONS BY COUNTRY………………..…………………………………...67 FIGURE 11 - PROGRESS OF CONSTRUCTION ACTIVITIES, TRINCOMALEE DISTRICT……........77 FIGURE 12 - SL-NE-WASH HYGIENE, EDUCATION AND AWARENESS PROGRAM....……........83 FIGURE 13 - SL-NE-WASH ALLOCATIONS BY ACTIVITIES…………...…………………………....84 PHOTO CREDITS Cover Background: Chones/Shutterstock, Inc. Table of Content page 4-5: Curt Carnemark/World Bank Table of Content page 6-7: Curt Carnemark/World Bank Table of Content page 8-9: Curt Carnemark/World Bank Overview Section Cover: Curt Carnemark/World Bank Figure 1 Diagram: Sombat Kapan/Shutterstock, Inc. Illustration page 20: David Waldorf/World Bank Figure 2/Cover Brief 24/7 Water: Dominic Sansoni/World Bank Figure 2/Cover Brief Gender & Infrastructure: Curt Carnemark/World Bank Background Highlight 1: Chones/Shutterstock, Inc. WSI India Section Cover: Curt Carnemark/World Bank Figure 3 Diagram: Graphixmania/Shutterstock, Inc. Figure 4/9/13 Diagram: Ideldesign//Shutterstock, Inc. Background Highlight 2: John Isaac/World Bank SAGE Section Cover: Curt Carnemark/World Bank Background Highlight 3: Curt Carnemark/World Bank Illustration page 53: Ray Witlin/World Bank Illustration page 55: Scott Wallace/World Bank IFG Section Cover: David Waldorf/World Bank Background Highlight 4: David Waldorf/World Bank Illustration page 64: Dominic Sansoni/World Bank SL-NE-WASH Section Cover: Dominic Sansoni/World Bank Background Highlight 5: David Waldorf/World Bank NELSIP Section Cover: Simone D. McCourtie/World Bank Illustration page 94: Yosef Hadar/World Bank ACRONYMS ADB Asian Development Bank AUD Australian Dollar AUSAID Australia Association for International Development BE Bank Executed CAS Country Assistance Strategy CBO Community Based Organization DBO Design Build and Operate DFC Dedicated Freight Corridor GDP Gross Development Product GHG Green House Gases GII Gender Inequality Index GoI Government of India GoSL Government of Sri Lanka IFG Infrastructure for Growth IFGI Infrastructure for Growth Initiative IRAE Independent Review of Aid Effectiveness JIT Just in Time JMP Joint Monitoring Program JWP Joint Work Program KDP Kecamantan Development Program KUWSMP Karnataka Urban Water Supply Modernization Program LA Local Authority M&E Monitoring and Evaluation MC Municipal Councils MDG Millennium Development Goals MIS Management Information System MLARR Management of Land Acquisition and Rehabilitation MSME Medium, Small, and Micro Enterprise MTR Mid Term Review NARI Northern Area Reduction of Poverty Initiative NCR National Capital Region (Delhi) NEHRP North East Housing Reconstruction Program NELSIP North East Local Service Improvement Program NER North East Region (India) NGO Non-Governmental Organization NGRBP National Ganga River Basin Program NRLM National Rural Livelihoods Mission NWSDB National Water Supply and Drainage Board O&M Operation and Maintenance OC Operating Costs ODA Overseas Development Assistance ODF Open Defecation Free ODU Organizational Development Unit PC Provincial Councils PCG Partial Credit Guarantee PCN Project Concept Note PDD Project Design Document PFDSD Policy for Decentralization and Service Delivery PFSA Partnership for South Asia PMU Project Management Unit PPP Public Private Partnership PPPP People Public Private Partners PS Pradeshiya Sabhas PSP Private Sector Participation RE Recipient Executed RWS Rural Water Supply RWSS Rural Water Supply and Sanitation SAGE South Asia Gender Initiative SAR South Asia Region SARC South Asia Region Countries SIF Sanitation Incentive Fund SIG Sanitation Incentive Grants SL-NE WASH Sri Lanka North East Water, Sanitation and Hygiene SO Social Observatory SSA Sub-Saharan Africa TA Technical Assistance TF Trust Fund ToT Training of Trainers UC Urban Councils UNDP United Nations Development Program UNICEF United Nations Children’s Fund USAID United States Association for International Development UTF Umbrella Trust Fund UWSS Urban Water Supply and Sanitation WDR World Development Report WHO World Health Organization WSI Water and Sanitation Initiative WSP Water and Sanitation Program WSS Water Supply and Sanitation WUA Water Users Association ACKNOWLEDGMENTS The first Annual Report of the AusAID-World Bank Partnership for South Asia Umbrella Trust Fund (UTF) presented here consists of three sections: the Main Report, an Annex with finan- cial data and results frameworks and a Briefs section which provides a short brief on each activity funded. The report covers all five windows of the UTF. The report is designed and structured under the communications strategy adopted by the UTF. The strategy focuses on use of multi- media to present results and the report includes photos from projects and QR codes of videos and photo essays to link printed material to visual media. The report has been prepared by the PFSA Secretariat led by Tara Sharafudeen, Program Manager and main author. Nicola Vesco, Communications Specialist worked on the design and Nishtha Mehta, Knowledge Specialist assisted with the writing and editing of the report. Information for the report was also provided by the respective task leaders, Shideh Hadian for SL-NE WASH, William Kingdom for WSI-India, Seenithamby Manoharan for NELSIP and Jennifer Soltaroff for SAGE. 1 OVERVIEW 1.1 BACKGROUND The Partnership for South Asia (PFSA) is an innovative served both partners well, and has laid the founda- umbrella trust fund (UTF) set up by the South Asia Re- tion for a stronger partnership to improve develop- gion (SAR) of the World Bank. The key words to note ment outcomes in South Asia. here are “partnership” and “umbrella.” The UTF is a strategic partnership between AusAID and SAR for In anticipation of this and the proposed scale up of sustainable development in South Asia. The concept Australia’s Overseas Development Assistance (ODA) of an umbrella provides a framework that embrac- an innovative idea in donor partnerships was con- es the entirety of the partnership. The UTF grew out ceptualized in the form of an umbrella TF –the Aus- of an active five-year partnership between AusAID AID-World Bank Partnership for South Asia or PFSA for and SAR. This partnership commenced in 2007 with short. The TF was signed into existence in May 2011 the first trust fund (TF) the Policy Facility for Decen- and consolidates the region’s partnership with Aus- tralization and Service Delivery (PFDSD). This was fol- AID under one framework TF. It allows both partners lowed by the Infrastructure for Growth Initiative (SAR to open windows under the TF depending on stra- IFGI) in 2008. Over the past five years, these two TFs tegic priorities. It prevents fragmentation by consoli- have been successfully managed by the Bank. Au- dating all of AusAID funds under one UTF allowing sAID conducted independent evaluations of these them to gauge the impact of their partnership within two TFs and found that the relevance, effectiveness the Bank and the region. It also provides a vehicle and sustainability of the tasks funded was high. The for AusAID to quickly scale up the partnership with solid relationship built up over the past five years has the Bank. 1.2 Why an Umbrella Trust Fund? The umbrella TF is an innovative concept in partner- erations. Consolidating and focusing the partnership ship arrangements and PFSA is the first umbrella TF with the Bank was also of importance and value to facility at the World Bank. In May 2012, a year after AusAID, in line with the recommendations of the In- the PFSA UTF became operational, four global multi- dependent Review of Aid Effectiveness (IRAE) 2011 donors UTF pilots were launched by the Bank to road conducted by the Government of Australia. The IRAE test this concept at the World Donors Forum. In March stressed selective efforts, effective partnerships, fo- 2011, the Bank’s Independent Evaluation Group had cus on results, feedback, the need for transparency, highlighted the fragmentation of the Bank’s TF port- and coordination across the whole of government. folio and the need for greater consolidation of TF op- 12 The UTF approach seeks to consolidate and stream- how the TF operates and in the scope of the sectors, line all of the SAR’s trust funds with a single donor themes and activities funded. It brings together fund- - AusAID - under one umbrella facility. This allows ing for multiple sectors under the Bank’s Sustainable for greater effectiveness, efficiency and flexibil- and Human Development networks under one over- ity. It deepens and strengthens the partnership and arching umbrella. It also allows for strategic priorities avoids fragmentation of AusAID’s efforts through the of AusAID and the Bank to be funded as they arise by mushrooming of numerous small trust funds often flexibly opening and closing of windows under the TF. within the same unit leading to multiple and often The benefit of the UTF for both partners is evident at overlapping priorities. Sub-units negotiate these TFs multiple levels. It leads to more strategic and focused independently without examining the broader im- fund raising by the Bank and fund transfer by AusAID. pact on the Bank’s strategy and work program or It also allows for more flexible funding to areas of key on development outcomes and results in the region. strategic importance, which increases development On the Bank’s side the cost of processing, monitor- effectiveness, operational alignment, efficiency, and ing and reporting to the same donor on multiple improves results. It enables better administration and trust funds is high. For AusAID too, tracking several TFs management of the funds. It gives both the Bank and through numerous focal points at the Bank is a time AusAID a composite picture of their engagement in consuming and a less efficient way of managing aid the region. It also enables the partnership to be more for results. Under the UTF fund flows from AusAID are strategic, in scaling up the partnership to build a best easy to track and report for both partners. Aside from practice in aid effectiveness. consolidation and greater focus the UTF structure al- lows for increased strategic flexibility both in terms of 1.3 StructurE of the UTF The UTF is a programmatic engagement with AusAID be opened through exchange of a simple letter of that covers all the countries in the South Asia region- amendment signed by both partners. This avoids the Afghanistan, India, Pakistan, Nepal, Bangladesh, lengthy processing of separate Trust Fund proposals Bhutan, Sri Lanka and the Maldives. It mirrors the Sus- as would be the case if separate TFs were required tainable and Human Development Networks of the for each window. Currently the umbrella has five Bank that are important partners of AusAID. It also windows. All these windows come under the Sus- encompasses multiple sectors - urban development, tainable Development department. Three of these rural development, water supply and sanitation, en- windows are Bank Executed (BE) where funds are ergy, transport, social development, environment, utilized directly by the Bank. Two of the BE windows health and education. Windows can be opened by are regional in scope and cover the whole of SAR, sector (WSI–India) or across sectors (IFG), by country whereas one is focused on India. Besides the three (SL-NE WASH) or/and by region (SAGE). Under each BE windows, there are two Recipient Executed (RE) window themes for funding are decided based on windows that focus on one country - Sri Lanka. The a Concept Note in Bank parlance or, a Project De- next section describes both these type of windows sign Document as required by AusAID. Windows can in detail. A - Bank-Executed Windows Water and Sanitation Initiative (WSI) India: is the original window that set up the UTF in June 2011. It provides support for policy advocacy for WSS sector reforms in India and for the design, implementation, and monitor- ing and evaluation of Bank projects that support these reforms. It has a corpus of AUD 4.5 million South Asia Gender Initiative (SAGE): this window has a funding of AUD 2 million. The main objective of this window is to mainstream gender across all sectors and support gender informed policy making in the region. This window was also activated in June 2011. Infrastructure for Growth Initiative (IFG): the window has a pledged amount of AUD 20 million, of which AUD 11.35 million has been received. It supports infrastructure delivery in two sectors - energy and transport. IFG has two key focus areas that cover the entire region - regional economic integration and climate change. It is the newest window of the UTF and was set up in June 2012. 13 B - Recipient Executed Country Window for Sri Lanka Both the recipient executed windows cover Sri Lanka. In RE windows, funds are transferred to the client gov- ernment for implementation of projects. The windows fund projects in the post-conflict North-East region of Sri Lanka. They include a WASH pilot in two districts in the Northern and Eastern provinces, and the co-financing of the North East Local Services Improvement Project (NELSIP), which covers the entire Northern and Eastern provinces. This is the first co-financing of a Bank project in South Asia by AusAID. SL-NE WASH Window: this window has a corpus of AUD 2.3 million and funds a pilot to provide water & sanitation facilities and hygiene education for households in two districts in the North and Eastern Provinces in Sri Lanka. North East Local Services Improvement Project (NELSIP): AusAID is co-financing the $ 86 million Bank project with an additional AUD 28.6 million. The project provides basic infrastructure and strengthens the capacity of local government for accountable service delivery. It also supports communities in holding their local governments (LG) responsible. Together the five windows have a pledged amount of AUD 53.66 million. The contribution received from AusAID up to June 2011 is AUD 29.62 million. See Table 1 PFSA UTF Amount Pledged and Contributed for details by window. Table 1 - PFSA UTF Amount Pledged and Contributed !"#$%&'()'*!+,'-.!',/0$12'*3&4#&4'514'6012%"7$2&4'' UMBRELLA TF WINDOW PLEDGED AMOUNT RECEIVED AUD MILLIONS BANK-EXECUTED WSI 4.50 4.50 SAGE 2.00 2.00 IFG 20.00 11.35 A. SUB-TOTAL 26.50 17.85 RECIPIENT-EXECUTED SL-NE WASH 2.30 2.30 NELSIP 24.86 9.47 B. SUB-TOTAL 27.16 11.77 TOTAL (A+B) 53.66 29.62 ! 14 WSI bring sustainable and higher quality water supply & sanitation services to India SAGE Limit gender inequalities Promote regional integration, service IFG in South Asia accountability, and to ensure climate smart equitable and development inclusive in South Asia development Bring higher promote inclusive quality water supply economic growth and hygiene services and accountable to Sri Lanka’s service delivery North East regions in Sri Lanka’s North East regions NE-WASH NELSIP Diagram 1 - PFSA UTF Structure 15 1.4 The Operating Environment in SAR The operating environment in the region is the back- The Lack of Inclusive Growth: while South Asia has ground against which the impacts and results of the been among the fastest growing regions of the world UTF should be gauged. The issues that need to be for the last two decades, there is increasing concern taken into account to achieve sustainable develop- that growth is bypassing lagging regions and com- ment outcomes include the recurring motif of con- munities, especially women and the poor. There is flict and fragility, the lack of inclusive growth and the persistent inequality in the region and the lack of complex political economy of implementing reforms voice and accountability prevents citizens from hold- in South Asia. These problems are often interlinked. ing service providers accountable or exercising their The lack of inclusive growth has resulted in lagging client power. The problems created by lack of social regions in all South Asian countries. These regions are inclusion and accountability in the region are clear often the areas where conflict develops due to the from the sporadic but continuing low level violence resentment resulting from inequitable development. plaguing many of the lagging regions in India. All the The complexity of delivering services also increases in windows of the UTF are addressing this issue through a fragile conflict or post conflict environment. tasks that support increased access to services and social and economic inclusion. This includes the de- Conflict and Fragility: is a recurring theme in the re- sign of the first national program in India for improv- gion and is particularly troubling since SAR has the ing access to water supply and sanitation in the ru- largest concentration of poor people in the world ral areas of low income states, the task addressing - close to 450 million - living on as little as a dollar gender differentiated housing in Bangladesh, and a day. Conflict hotspots are present in most coun- activities focused on women’s access to Urban WSS tries in the region. Conflict is endemic in Afghanistan services, and women’s labor force participation in and intermittent and persistent in parts of Pakistan India, Sri Lanka and Bhutan. and in India’s red belt. The region also includes two post conflict countries - Sri Lanka and Nepal. In both The Politics of Sector Reforms and Governance: is countries, and in particular in Sri Lanka, conflicts end- complex and reinforced by a vicious cycle of weak ed fairly recently and there continues to be the need policy and institutions leading to poor sector gover- to tread carefully. This has affected the way tasks are nance and accountability. These governance issues delivered, and it has often made it difficult to field are compounded by the technical, financial and missions to Afghanistan and Pakistan, due to the se- capacity challenges of service providers leading to curity situation in these countries. Conflict is endemic a lack of access, especially for lagging regions and in lagging regions that are often on the borders of communities. Where access is available, the service countries like the NE region in Sri Lanka and the NE is often poor and irregular, which affects the integrity region in India. These conflicts often spill over borders of the entire network. Poor service provision, cover- making regional economic integration more difficult age and inequitable pricing traps utilities in a loss- in South Asia. The problem of delivering results in this making cycle. Consumers lack voice and are unable difficult environment is one that governments and to hold service providers accountable. Breaking free development partners have been grappling with. of these cycles requires strong political will to under- The IFG window is funding the first regional study to take the necessary sector reforms. examine how services can be delivered under con- ditions of conflict and fragility in South Asia. 16 These reforms are held back by the lack of under- multiple stakeholders. It is an iterative and long-term standing of key policy and institutional issues, and process in a region where quick regime changes of- the inability of stakeholders to arrive at a consensus ten result in claw backs. For instance scaling up to on the reforms needed. This makes policy dialogue 24x7 water supply city wide requires not just technical aimed at facilitating sector reforms key to achiev- changes but also institutional and policy reforms. The ing high quality and sustainable service delivery. This change of government in the state of Karnataka in In- process has to however be initiated and directed by dia where this is being attempted resulted in the Bank client countries. Development partners like the Bank team scrambling to present to the new government and AusAID can only facilitate this reform process. the policy changes required for the scale-up that had The reform process is a transformation that involves been agreed upon with the previous leadership. 1.5 IMPACTS Though the UTF is only over a year and half old, it has already helped to scale up the relationship between the two partners and has started to bear preliminary results. The impact of the UTF can be gauged at multiple levels - at the level of the client, the Bank and AusAID. 1.5.1 - Multiple Impacts of the UTF FOR the client - It is providing consistent support for the institutional and policy reforms for better service delivery focused around improved connectivity (water and sanitation, transport and energy), regional eco- nomic integration, and climate change. It is also starting to help integrate gender issues in policy-making and improving voice and accountability for the delivery of services. These are supported by more effective and timely technical assistance, capacity building, knowledge sharing, networking, learning from regional and global best practices, and maximizing innovations, synergies and knowledge across regional and sectoral boundaries in South Asia. These impacts will be seen more in the future as tasks are completed. Some of the key tasks that are supporting sector reforms include the design of the National Program for RWSS in Low Income States in India, the Bhutan gender work that is informing discussions on the country’s 11th Five Year Plan, and the work strengthening capacity for gender differentiated housing in Ministry of Housing and Public Works in Bangladesh. The RE windows of the UTF are enabling access to basic services in the post- conflict areas of Sri Lanka. FOR the Bank - It has raised the quality of the Bank’ work program, by providing additional value, and by increasing the scale and scope of Bank’s work. It has provided the flexibility needed to respond to client needs more quickly and effectively. It has led to a more evidence based and effective policy dialogue, backed by more and better analytical work. It has leveraged the Bank’s policy dialogue and lending for greater impact. It has helped the Bank think outside the box and be more innovative. It has also allowed the development and strengthening of new business lines. The UTF has managed to impact the Bank’s entire pipeline of lending and TA in the energy, transport and climate change sectors. These impacts are illustrated in the section on adding value. 17 FOR AusAID - It has helped build greater focus into the relationship with the Bank, and a higher level of dialogue and partnership. It has enabled AusAID to assess the impact of its entire partnership with the Bank in South Asia. The UTF also delivers value for money by enabling a high expansion strategy and delivering effective performance with less administrative costs. Targeting aid through the Bank has enabled AusAID to leverage substantive reforms in South Asia and to be at the table when these reforms are being discussed. It has extended AusAID’s reach in areas where they have less experience and presence. The UTF has allowed AusAID to scale up activities and results and facilitated access to global knowledge and expertise. 1.5.2 - Results and Outcomes In slightly over a year of operations the UTF has already started yielding preliminary results and is having a strong impact on the Bank’s work program and on the partnership itself. The results and outcomes for the entire UTF are illustrated in the section below. Added valuE - There are several instances where the UTF is adding value to the Bank’s portfolio. This includes greater mainstreaming of gender into the Bank work program through the SAGE window and by having gender as a cross-cutting issue across all the UTF windows. Some of the work funded in this regard includes the mapping of all youth and gender activity in the region and analytical work in all SAR countries to fill in data gaps, and to facilitate greater understanding of gender issues. The work on gender in UWSS, which is a less investigated sub-sector as compared to gender and RWSS, falls in this category. The benefit assess- ment of the pilot 24x7 water supply in demonstration zones of three cities in India is vital to the design of a Bank project that will scale up this initiative to the level of the entire city. By providing evidence of the gender impacts of continuous water availability, it has allowed for better targeting of gender in the scale up project. The UTF is also enhancing the design of the project by assessing PPP modalities for continuous water supply. [ [ Use your smartphone to scan this QR code and watch the 24/7 Water Supply video story Increasing Scope and Scale - There is considerable evidence to show that the UTF has increased the scale and scope of Bank’s work beyond what would normally be possible. It has allowed the examination of the impact of good asset management on scaling up to 24x7 water supply in cities. The lack of opera- tions and maintenance of built assets is a major lacuna in infrastructure delivery in the region. This results in poor and unsustainable service delivery and resource inefficiencies in having to build the same infrastructure over and over again. The sustainability framework developed for WSS projects in Karnataka state in India is another step in this direction. This framework can be applied to WSS projects across the region. The UTF has enhanced the Bank’s ability to look at things more holistically across sectors and regions. This is exemplified by the policy dialogue and analytical work on sustained WSS delivery in the National Capital Region of Delhi (NCR). The NCR encompasses the entire capital territory of Delhi as well as areas surrounding it, in the four adjoining states of Punjab, Haryana, Uttar Pradesh, and Rajasthan. With a total area of about 33,578 km, it is the world’s second largest urban agglomeration by population behind Tokyo, and the largest by area. As a part of GoI’s urban growth strategy, several urban complexes have been developed as counter magnets to Delhi. The availability of water is crucial to the growth and lives of the 22 million people who live in the NCR. 18 The UTF has made possible an assessment of WSS services in 11 cities and key metro complexes for an in- formed policy dialogue on area wide reforms. Another example is the greater ability to look at water quality and availability across the entire water use cycle. Currently water issues are divided across three sectors at the Bank - water resources management including watershed management is with the environment and water resources team, irrigation with the agricultural team, and drinking water with the WSS team. The teams normally operate in silos and do not address issues across the water use cycle. The UTF has started to help move the region to a more integrated approach. It has funded an analysis in the desert state of Rajasthan, which examines the competing claims for water. In a low water environment, the lack of prudent manage- ment of watersheds and the overuse of water for irrigation, due to the subsidies provided for the power needed to pump water, is leading to a shortage of drinking water in cities. A study funded by the UTF allowed an assessment of the trade offs and hard political decisions needed to provide drinking water in the state. It brings together a range of broad water sector issues including climate change that potentially affects water yields, irrigation efficiency, and agricultural productivity, along with traditional issues of good governance and service sustainability. The UTF also funded an in-depth examination of gender and economic development in India as a follow up to the WDR 2012 Gender Equality and Development’s country case study on India. The draft report is cur- rently being finalized. There has been considerable interest in the findings as an input into policy making by key economic ministries in India including the ministries of Finance, Commerce, Labor and Social Welfare among others expanding the debate across sectors. Transformative National Projects - The design, implementation and monitoring and evalua- tion of several projects that will have a transformational impact on people’s lives in South Asia are being sup- ported by the UTF. This includes the scale up of the pilots of continuous water supply in three cities in India. The pilot had resulted in a huge amount of interest, from the media and from other cities interested in replicating the initiative. This project is expected to have a domino effect on WSS delivery in the region. The availability of continuous water supply will also transform lives through better sanitation and health. It will also reduce the time women spend collecting water, freeing up time for more productive work. Another such project being designed and funded by the Bank is the new national program for RWSS in the lagging states of India. This again will impact economic development and improve access to services in low-income states in India. In particular, it will have a positive impact on women’s lives in states where the position of women is among the lowest in the region. The UTF is funding key analytical work including on gender impacts to inform the design of the project. The National Ganga River Basin Project (NGRBP) is also being supported through the design of the first net positive energy sewage treatment plant in India and through capacity building of agencies at the national, state and city levels. The project aims to reduce pollution in this trans-boundary river of India and Bangladesh. At 2,525 km, the Ganga is the longest river in India and the second largest in the world in terms of water discharge (1). The reduction of pollution in the river, which is the fifth most polluted river in the world, will have a massive impact on the productive lives of the 400 million people who live in its basin (2). Use your smartphone to scan this QR code and watch the Ganga River Basin Project slideshoow [ [ 1 - The Ganga: water use in the Indian subcontinent, by Pranab Kumar Parua, p. 33 2 - Kalpana “Ganga is dying, pollution the killer.” Greendiary.com, 2007 19 Similarly in the energy sector the design of the North East Region Transmission and Distribution Project is be- ing supported through technical assessment of the utilities, and through key studies on gender impacts, the political economy of service delivery in a lagging post-conflict region, and the development of a communi- cations strategy to make the changes more acceptable to key stakeholders and the public. The project will cover 6 of the 7 states in the NE region. It will have a substantive impact on the entire region, which has 40% of India’s hydro-power potential. It will open up regional trade with Bangladesh and other countries. The impact evaluation of Northern Areas Reduction of Poverty Initiative (NARI) in Bangladesh which provides technical and life skills to poor women from lagging regions planning to join the garment sector, will allow for the scale up of the project to other regions and sectors in the country. It will enable the design of projects to increase women’s labor force participation in other countries of the region. Innovation - The UTF is supporting the scale up innovations and addressing frontier issues in develop- ment. This includes scaling up of 24x7 water supply city wide in three cities in India, when, currently, no city in India has continuous water supply. The issue of women and mobility has become central to the debate around gender equality in the region, in particular regarding the security of women while using public trans- port. The study of the pilot women-only bus services in Lahore and Dhaka cities will examine whether these services can be scaled up. For the first time in South Asia, the work on masculinity and gender relations will highlight the voices of men leading to a paradigm shift in the discourse on gender equality. The funding of the Social Observatory (SO) in the National Rural Livelihood Mission (NRLM) in India has put in place a com- prehensive and thorough learning system incorporating various monitoring and evaluation tools to measure change, assess the effectiveness of the project, and pinpoint design and implementation challenges. The SO combines techniques pioneered by the Progressa/Opportunidades project in Mexico, and the randomized roll-out of interventions with baseline, mid-term and follow up surveys, along with process and participatory monitoring emphasized in the Kecamantan Development Program (KDP) in Indonesia. In addition it builds on experience with ICT tools for data collection by the District Poverty Initiatives Project (DPIP) in Andhra Pradesh India. The SO combine these methods in an innovative way for integrated learning to improve program design. The UTF is also supporting the first Partial Credit Guarantee (PCG) issued by the Bank in the region to allow Power Grid, the national transmission company of India and a key player in regional energy trade deals, to access international financial markets. This is only the second PCG issued by the Bank. It will also set a precedent for private sector participation in the energy sector for other infrastructure companies. In this category also falls the pilots of the first Bank projects to incorporate GHG accounting in the transport sector. 20 New lines of business - The UTF has enabled the Bank to develop and expand its work in the urban WSS sector. It has also allowed the Bank to move into new areas, such as sewerage and solid waste manage- ment (SWM). It has allowed for a greater focus on PSP and PPPs in the RWSS, UWSS, transport and energy sec- tors. A basin wide approach to cleaning up rivers is being piloted through the support to the NGRBP. The UTF is also supporting the first youth and gender mapping in the Maldives and Sri Lanka and allowing for men’s voices to be heard in the discourse on gender relations. Flexible Funding Mechanisms - Built into the UTF have enabled rapid and high quality response to client requests for assistance. Normally the Bank’s budget is heavily programmed and in a flat budget situa- tion funds are not easily available for quick responses. The availability of flexible funds from AusAID enables the Bank to think outside the box for greater creativity. The innovative Just in Time facility within the UTF win- dows has funded in time TA to assist the government of Uttarakhand in India to look at options for reform of the WSS sector and to enable the government of Maharashtra again in India to look at the financial implica- tions for municipalities of its state wide UWSS reforms. Leveraging for Results: Financial and Non-Financial - In the short period of its existence the UTF has boosted the impact of its funding through leveraging Bank lending, the national programs of cli- ent countries, and funds from other development partners. In this manner, a total of $14.46 billion has been leveraged against allocations of $5.80 million. The ability to mobilize large-scale investments with financing leveraged from capital markets and the private sector as is the case with the PCG for Power Grid is an ad- dition to this leverage. See Table 2 Additional Funds Leveraged. Details of the amount leverage by each activity and window of the UTF can be found in the separate Annex section of the report. UTF 1: Table 2 - PFSATable Additional PFSA UTF:Funds Leveraged Additional Funds Leveraged. WINDOW ALLOCATIONS FUNDS LEVERAGED WSI 3,356,479 5,553,642,000 SAGE 1,568,221 5,901,293,200 IFG 1,670,000 3,073,050,000 TOTAL 6,594,700 14,527,985,200   The non-financial leverage provided is often overlooked but is equally important. A key part of this leverage is the access to global knowledge, networking and better knowledge generation and dissemination. Each task funded is required to have a dissemination strategy. Several workshops have been organized to share the knowledge generated from funded tasks, some of which have been attended by AusAID staff. The work- shops include the national workshop on PPPs in Sewerage at the request of the Ministry of Urban Develop- ment, India, state-level workshops to discuss suitable PPP options for RWSS in the state of Andhra Pradesh in India, the launch workshop for the regional study on energy security and trade among others. South-South knowledge exchanges include the JIT TA to the Government of Uttarakhand that allowed the Bank to bring in the Brazil experience of WSS reforms. AusAID is also leveraging Bank processes, its expertise and global reach, and its established relationships with clients in the region. The convening power of the Bank in coordinating development partner efforts at the regional, sectoral and country levels in response to trans-boundary chal- lenges such as regional integration and climate change has also to be taken into account while assessing the leverage provided by the partnership. 21 1.6 Strategic Management The UTF, by scaling up the partnership and by its An innovative communications strategy has also breadth and depth, calls for higher levels of report- been developed which will use multiple media for- ing and management. To enable better program mats for better reporting of outcomes. This includes administration and management, a program secre- the development of high quality briefs on key tasks tariat has been constituted with a communications funded, videos, photo essays, blogs and a dedicat- specialist and a part time knowledge specialist. The ed website to be commissioned in September 2013, team has risen to their first challenge and success- which will make information on activities and results fully organized the first Annual Partnership Meeting in achieved available via the site and social media. April 2013 and the launch of the national centers of The briefs and informational material developed excellence in the Management of Land Acquisition are being shared separately. The first annual report and Rehabilitation (MLARR) via video links to Lahore, of the UTF has also set a higher standard in report- Dhaka, Delhi and Hyderabad. Based on a press re- ing and presentation of data backed by additional lease prepared by the secretariat media in India, communication materials, including photos and vid- Pakistan and Bangladesh covered this event. The eos of projects and tasks funded. See Highlight 1 for newspaper reports have been shared with AusAID. more details on the communications strategy. H ASIA Bank and AusAID und arrangements rship for South Asia d Bank and AusAID priorities. s in the South Asia upply & sanitation l governance and PFSA GENDER & BRINGING 24/7 WATER INFRASTRUCTURE TO INDIA ER od practices from a region. The briefs Water & Sanitation, & Service Delivery. outhAsia.org Bank and AusAID nd Asiaarrangements team. PHOTO CREDITS ship for South Asia en@worldbank.org Bank and AusAID priorities. SOURCES s in the South Asia EDITORIAL TEAM upply & sanitation governance and TARA EDITOR (2005) s/CS_Karnataka.pdf. Covers of the First PFSA Briefs Highlight 1 Communicating Stories of Change The role of communications in presenting key messages and results is often overlooked outside advertising. An effective communications strategy disseminates results, while generating support through knowledge sharing and collaboration among stakeholders. The PFSA secretariat is executing an innovative communica- tions strategy that will increase the quality, scale and scope of reporting on results and deepen the engage- ment of key stakeholders. The strategy will ensure that the audience understands clearly what the partner- ship does, the results achieved, and the challenges faced. It aims to draw stakeholders into the partnership’s vision and mission in a meaningful way by sharing not only numbers, but also the beautiful stories of hope and change that lie behind them. Interactivity is key and the target audiences in the region, as well as AusAID and the Bank are not seen as passive receivers of information but active parts of a two-way conversation. Lessons learned, best practices, innovations, along with opinions from experts and local communities that benefit from the interventions funded will be highlighted and shared through new media - social media, the Internet, and mobile gaming platforms - and through multiple media formats - briefs, reports, video blogs, docustories, photo essays and a dedicated website. Some of the communications tools are: • Visual Identity: to create a brand for the UTF as an entity that the two partners have built together. The PFSA UTF logo is a symbol of the partnership and will be used along with the logos of the two partners on all communication materials. • WEBSITE: the new PFSA website www.PartnershipForSouthAsia.org to be launched in September 2013 will be an integrated online platform to highlight data and multimedia content linked to the activities funded. Interactivity and visual content will be ensured through photo and video blogs, social media (Twitter and YouTube), webinars, and photo essays. • BLOG AND SOCIAL MEDIA: the PFSA blog and Twitter account will feature different voices from within and outside the Bank. Through the contribution of guest bloggers, team members from the field, international ex- perts, and beneficiaries, the Partnership’s social media presence will attract visitors to the website, develop media coverage, and, eventually, create a deeper interest in the activities supported in the region. • SOCIAL GAMING: with mobile phones representing the primary access point to the internet in South Asia, mobile gaming applications will be used as an effective way to engage and deliver information to local communities and youth (edutainment strategy) particularly on key themes like climate change. • SEMINARS AND WEBINARS: will create a knowledge space for sharing information and results and for debat- ing issues in relation to the thematic areas funded. • REPORTS, BRIEFS AND NEWSLETTERS: the strategy includes two types of reports; a comprehensive annual re- port and shorter quarterly briefs and newsletters providing highlights and “at-a-glance” information. In order to foster engagement and add storytelling value to the content, the materials will emphasize photos and data visualization through info graphics ecetra. The latest QR-code technology has been utilized to make interviews and video stories accessible directly from the printed materials. The integration of these diverse tools will position the PFSA UTF as a leading partnership in South Asia. By focusing on interactivity and storytelling, the strategy will transition towards an innovative use of traditional and online communications, guaranteeing increased awareness, interest, and engagement among all key audiences. 1.7 Strengthening the Partnership The UTF has played a key role in strengthening the ization in Pakistan is being developed. This is being relationship between the partners by raising the stra- facilitated by the program manager and discussions tegic focus of the partnership within both organiza- have taken place between the focal points on both tions. It is now possible to estimate in one place and sides to firm up the JWP. Besides this, the UTF has led at a glance, the impact of this partnership on de- to more regular discussions at the operational level velopment outcomes in South Asia, and on the Bank between the Program Managers on both sides. and AusAID. AusAID has started to maintain a pro- gram register of its partnerships with the Bank, while More needs to be done to bring the education the Bank is also closely following the partnership with and health sectors in the Bank under the UTF and to AusAID. An Annual Partnership meeting has been bridge the gap between the country and regional added to foster greater face to face interactions be- programs on the side of AusAID so that the two pro- tween the partners. The first such high-level discussion grams reinforce each other. Though there was an between Scott Dawson, FADG for West and South initial enquiry regarding placing the partnership on Asia, AusAID and John Henry Stein, Sector Director, education in Sri Lanka under the UTF, it was later de- Sustainable Development, World Bank took place in cided by the Post and the sector unit to set up an April 2013. A Joint Work Program (JWP) that covers independent TF. This limits the umbrella facility to cov- all three sectors in SAR and focuses on PPPs, water ering only one sector defeating the goal of consoli- resource management, education and decentral- dation of the partnership. 1.8 Going Forward The anticipated scale up of Australia’s aid has been There are challenges to the scale up and within the postponed, however it is expected that the partner- partnership that require attention and a closer rela- ship will continue to be forward looking and that tionship between the World Bank and AusAID. This the relationship between the two partners, which includes close links between country and sectoral has stood the test of time, will grow. The UTF struc- programs at the Bank, and country and regional ture, which embraces the whole of the partnership, programs at AusAID. It is hoped that the early suc- requires greater strategic focus at the management cesses will be built upon in the future, cementing the and operational levels to realize its full potential. relationship further. 24 25 BANK EXECUTED WINDOWS IBRD 36628 AFGHANISTAN PA K I S TA N BHUTAN NEPAL I N D I A BANGLADESH SRI LANKA MALDIVES FEBRUARY 2009 2 Water Sanitation Initiative 2.1 The Case for Water Supply AND Sanitation Reforms in India To understand and address the issues facing India’s all tiers of government, and service providers, and Water Supply and Sanitation (WSS) sector, it is im- (in the rural sector) Community Based Organizations portant to look beyond just the access agenda to (CBOs). This also impacts all stages of the project op- the challenge of providing quality and sustainable erational cycle from planning, to implementation, services. WSS services in the country are constrained operations and oversight. It is clear that the resource by a weak policy framework resulting in poor sector and capacity needs of the WSS sector cannot be governance and accountability, distorted and in- met only by the public sector and access to private equitable pricing and unsatisfactory cost recovery. capital and public-private partnerships are needed The weak financial position of water utilities has re- to improve services. sulted in insufficient maintenance of existing assets and low capital investments. These inefficient insti- These challenges and capacity constraints are worse tutional and financial arrangements leave service in the lagging regions of the country, which have providers weak, with poor operational incentives, the poorest access and the lowest quality of service. and a capital works mindset based on building as- Within the more advanced regions too, there are sets, rather than properly operating and maintaining vulnerable groups with limited access to water sup- them. The lack of focus on, and dearth of expertise ply and sanitation services, including women and around asset management adds to the losses in the the poor. The main challenge, then, is not just of ac- sector. Poor asset management combined with poor cess, but of providing sustainable and quality service service provision and coverage affects the utilities’ to all consumers. While these challenges and gaps potential to improve cost recovery, trapping them in are best understood in the water supply and sewer- a vicious cycle of losses. This situation is further exac- age sub-sectors, they are equally applicable to solid erbated by capacity constraints at all levels. Weak waste management and drainage. capacity and low levels of professionalization affect Water Supply Indiscriminate abstraction of ground water to compensate for poor service quality has resulted in dropping water tables. Access to drinking water is further threatened by the contamination of aquifers through un- treated wastewater in urban areas and chemicals from agricultural use and irrigation recharge in rural areas. Natural contamination of groundwater with arsenic and other metals such as fluoride is also common in parts of India. Weak management of water resources, particularly in the catchments and river basin ecosystems from which water is derived, exacerbates the issues of water quality and quantity. In India, each aspect of the water use cycle is with different departments, and there is no composite examination of water use and quality. According to the Joint Monitoring Program (JMP) of WHO/UNICEF, 2012, 97 % of the country’s popu- lation has access to improved water sources. However, these figures do not tell the real story. Currently, no Indian city has continuous water supply. 30 Intermittent water supply increases both the likelihood of contamination and the coping costs for consumers. JMP data also reveals that the coverage of piped water in urban India has been decreasing (52% in 1990 to 48% in 2010), implying that the rate of urbanization is outstripping the ability to expand service. In rural ar- eas too, while 90% of the population has access to improved water sources, distance of water sources from homes, availability of adequate water at the source, and lack of water for irrigation and the trade off with drinking water remain key issues. Sanitation South Asia is home to 692 million people who are forced to defecate in the open due to the lack of sanita- tion facilities; 90% of this population (623 million) lives in India. A 2006 Water and Sanitation Program (WSP) study estimated that the total cost of inadequate sanitation for India is $54 billion, or 6.4% of annual GDP. Inadequate rural sanitation, in particular, is one of the most critical issues in India, with more than 550 million people defecating in the open. GoI has implemented the Total Sanitation Programme (TSC) and Clean Vil- lage Award, which provides financial incentives and Presidential recognition for villages that demonstrate open defecation free (ODF) status. However, almost 95% of ODF villages lapsed back due to poorly con- structed toilets, population increase, lack of water, poor market linkages for repair and up-gradation, the fatigue of local leadership, and weak monitoring and incentives. Urban areas too face similar challenges in sanitation due to financially weak institutions, lack of demand, poorly constructed and managed assets, and lack of fecal sludge management. Solid Waste Management India is still a low income country and its solid waste generation rate per person is low. The average solid waste generation is about 0.5 kg/capita/day or 188,000 tons/day. Waste issues are significant primarily in urban areas, and only about 35% urban waste is safely collected at the source. Most of this waste undergoes segregation of recyclables by waste collectors in an unhygienic and unsafe manner. Drainage Inadequate drainage of storm water is evident in most large Indian cities. This stems from a series of mutually reinforced failures, including poor trash collection (resulting in blocked drains), poor enforcement of urban planning regulations (resulting in loss of natural flood plains and drainage channels), and weak service provi- sion. Whilst drainage is a low priority at this time, it is still a significant issue due to flooding and due to potential commercial losses for major cities. 31 2.2 Objectives of wsi india TThe primary objective of the WSI window is to cre- new benchmarks required to move the sector for- ate a demand for sector reforms that address the wards by deepening support for reform and thereby challenges in the sector and to improve the design, increasing the likelihood of success. implementation and outcomes of Bank projects that support these reforms. The broader outcome sought The approach is grounded in the realization that the is to assist GoI to meet MDG targets through increas- key to sustainable reform of the sector is to address ing access to sustainable service delivery. The dual the institutional, governance and financing shortfalls approach of creating the demand for and also sup- along with the technical issues. Communication and porting reforms links the entire change cycle; from outreach to stakeholders is crucial to the change problem to action to likely outcomes. Creating de- process and to arriving at outcomes. This support is mand without supporting implementation can lead crucial for the client to realize that these issues need to sub-optimal results, for it is during the implementa- to be tackled in a comprehensive manner and tion phase that support is required to overcome the that a consensus among stakeholders is needed for range of hurdles that appear as reforms move from change. Once the demand for reform is created, in- concept to reality. vestments that have a demonstrative effect and set new benchmarks for other states and local govern- In the same manner support for implementation ments, are vital. The domino effect that these trans- without creating demand for and understanding formative investments can have has been demon- of the reform agenda can result in weak ownership strated in other sectors in India like the metro in Delhi. and poor design. Reforms are impeded by the lack It is then important to follow through and provide of a common understanding of key sectoral and technical assistance throughout the reform process. policy issues by the stakeholders and the fragmenta- The theory of change supported by the WSI-India is tion of institutions that have oversight of different sub- modeled in Diagram 2. sectors. The funds from WSI are helping cement the 32 1 Communication: why undertake reforms? What will reform achieve? Motivate stakeholders: need to increase 2 the understanding of stakeholders on the need for reform and create the demand for reform. Bring stakeholders to a common framework 3 about reform priorities: enable stakeholders to find common ground and help them understand the importance of stakeholder support for reform to be successful Facilitate the reform process: 4 facilitatea process that takes policy to plans to action Support: provide technical support (hand 5 holding) for design, capacity building, implementation, and institutional reform, including corporatization, transitional arrangements, regulations, PPP activities etc. 6 Monitor: monitor implementation to assist with any problems that arise. Diagram 2 - The Theory of Change: Bridging the Gap between Needs and Outcomes 33 2.3 Areas of Technical Assistance WSI funds provide technical assistance (TA) for policy WSI is supporting key sector work, looking at imple- advocacy and sector reforms, and enhance project mentation options for the National Urban Sanitation preparation, design and implementation of Bank Policy, assessing PPP options for urban sewerage, projects that assist in implementing reforms. This bal- evaluating Maharashtra’s WSS reforms, and exam- ances the need to show results by working with proj- ining ways to improve regional WSS performance ects under preparation or implementation, and the in the National Capital Region. Aside from the ad- need to introduce and promote reforms and innova- vocacy work, it is also supporting preparation and tions, which can then be rolled out through projects. implementation of key projects. These include a new The TA is broadly supporting technical engagement, national program for RWSS in the lagging regions, around three pillars the Karnataka Urban Water Supply Modernization Project (KUWSMP) that will scale up 24x7 water sup- 1 - Improving access to water supply and sanitation ply in three cities, and the Rajasthan RWSS project. WSI also contributes to project implementation by 2 - Improving the quality and sustainability of services making it possible to include PPP options and pilots 3 - Improving sector capacity/professionalization in two ongoing RWSS projects in Punjab and Andhra Pradesh, the Ganga clean up and conservation pro- AusAID’s Policy Notes“Saving Lives: Improving public gram, and the project under preparation to scale up health by increasing access to safe water and sani- continuous water supply. tation” and “Sustainable Economic Development: Transport, Water, Urban, Energy and Communica- A JIT window has been created to support the reform tions” are strongly aligned with these pillars. Diagram process by funding urgent TA requests that require a 3 indicates the support provided under each pillar. rapid response. This window has supported the finan- Through their joint efforts, the Bank and AusAID are cial assessment of the state of Maharashtra’s UWSS facilitating and scaling-up innovation, improving ac- reforms, and a scoping study for sanitation in Kerala countability, increasing private sector participation state and options for reforms in the RWSS sector in and public-private partnerships, enhancing con- Uttarakhand state. nectivity in both urban and rural areas, and support- ing access to WSS services in lagging regions of the country. 34 1: 2: Pillar Pillar y 3: g Acc ess g Qualit Pillar Imp r o v in ly & IImpr o v in ility g Sector a t er Supp d S u s tainab v in Impro acity to W an vices Cap tion of Ser Sanita • Access for lagging groups: the poor • Policy and institutional reforms for • Working with educators and and women sustainable service provision professional associations to improve vocational training and academic • Scale up of innovations • Mobilizing private capital education • Introduction of output based models • Financial incentive schemes to improve • Development of accreditation scheme outcomes • Delivering the full range of services in for WSS professionals an integrated manner • Managing competing demands for • New capacity building models for scarce water resources • Improving WSS services in underserved service providers such as franchising urban areas and lagging regions • Better resource efficiency and asset management u pp o rt w s i s • Each project includes training and capacity building of service providers • Support to Ganga program to address and policy makers energy efficiency in wastewater treatment • Activities supported by AusAID through • Investigation of gender impacts of • Addressing issues of non-revenue IFGI and PFDSD trust funds have sup- poor access to water and sanitation water, energy efficiency and financial ported this pillar and informed services modeling WSI activities • Assess barriers to the implementation of • Support to PPPs in RWSS in Andhra • Building institutions and capacity for India’s National Urban Sanitation Policy Pradesh and Punjab and UWSS in Asset Management Karnataka • Access to RWSS in Lagging States • Sector reforms in Uttarakhand • Scaling up 24x7 water in cities • Sustainability framework for RWSS • Scoping studies for SWM • Options for WSS delivery in • Access to drinking water in low water the nationalCapital Region conditions in the state of Rajasthan • Financial sustainability of incentive based WSS reform program in Maharashtra Diagram 3 - WSI Thematic Pillars Supported 35 2.4 Financial Summary 2.4.1 - Disbursements & Commitments The trust fund is continuing to disburse well. The total allocation to 19 tasks in Round 1 and 2 is $3.35 million. Total disbursements and commitment for both rounds is at 53.11% of allocations. As of March 1, 2013, projects funded in Round 1 and Round 2 had committed and disbursed 54.20% and 51.46% of the total funds respectively. Total Total   Round 2 Round  2   Grant  Amount   Amount  Committed  &  Disbursed   Round 1 Round  1   | | | | | | | | 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 0   500,000   1,000,000   1,500,000   2,000,000   2,500,000   3,000,000   3,500,000   Amount  (USD)   Grant Ammount Disbursed & Committed Figure 1 - WSI Disbursements & Commitments (USD) 36 2.4.2 - Urban & Rural Projects Activities supporting projects in both urban and rural regions have been funded. Through AusAID support, the Bank has been able to initiate a new line of business in the urban areas. Approximately 33% of the funds are allocated to the urban sector and 43.5% to the rural sector. Activities spanning both urban and rural sectors have received 23.19% of the funds. 23.19% Urban Sector 33.30% Rural Sector 43.49% Other Figure 2 - WSI Urban & Rural Projects Allocations 2.4.3 - Public Private Partnerships Activities supporting PPP have been funded in both rounds and in the urban and rural sectors. PPP related tasks have been allocated 33.62% of the funds. Four of the tasks funded have a PPP focus. 33.62% PPP Tasks 66.38% NON-PPP Tasks Figure 3 - WSI Public Private Partnerships Allocations 37 2.4.4 - Type of Activity Supported Both pre-Project Concept Note (PCN) tasks that deal with policy advocacy and those that are post-PCN where a PCN has been approved in the Bank system and the task is then linked to the design and/or imple- mentation of a project have been supported. In the Project Design Document (PDD) for WSI-India it had been agreed that the split between pre-PCN and post-PCN activities would be 40-60. Pre-PCN activities supporting policy dialogue have been allocated 35.27% of the funds while 64.73% of the funds have been allocated towards post-PCN activities supporting the design and implementation of Bank projects. 35.27% Pre-Project Concept Note Support 64.73% Project Design & Implementation Support Figure 4 - WSI Type of Activity Supported 2.5 Preliminary Results The WSI window has been operational since June 2011. In the normal course, an activity takes two years to be completed. However in the one and half years that the window has been active, we are starting to see preliminary results from a number of activities. Some of these are detailed below. 2.5.1 - Scaling up Innovation Benefit Assessment of the 24x7 Water Supply Demonstration Zones in Karnataka State - A Bank project had succeeded in demonstrating in demo zones of three cities that 24x7 water supply is an achievable target. The assessment provided valuable information for the design of the project currently under preparation to scale up 24x7 water supply from the demo zones citywide in the three cities. It emphasized the positive social and economic impacts of the availability of water in a continuous manner on the lives of the beneficiaries. People with continuous water supply not only save money due to lower cop- ing costs, they have more time to engage in productive economic and educational activities. Based on this work, the PFSA Program Secretariat has prepared a brief “Bringing 24x7 Water to India” which is forwarded 38 2.5.2 - SUPPORTING PPPs Transaction Advisory Services for PPP in RWSS in Andhra Pradesh - Possible options for PPPs for multi-village RWSS delivery were developed. After extensive consultations on the Design Build and Operate (DBO) model government decided to tender three DBO pilots. These are to be implemented via the Bank AP RWSS project currently under implementation. This is an early win for the WSI window. The Bank team continues to provide transaction advisory support for the successful implementation of the PPP pilots. These will have a demonstration effect on including PPP options for RWSS delivery. PPP in RWSS in Punjab - The final report and action plan for possible PPPs in RWSS has been completed. The report suggests the ways in which the government can incorporate PPPs into RWSS and structure better PPP arrangements. Workshops to disseminate the findings are being conducted. A national-level one-day workshop will be held on May 24th, 2013 by the Punjab Water Supply & Sanitation Department to disseminate the findings of the report. The next step is to explore the possibility of implementing the suggestions made in the report through pilots. Work has started on this aspect. Technical Assistance to Ministry of Urban Development (MoUD) on PPPs in the- Sewerage SectoR - The final report has been completed and presented to government. An Action Plan to include PPPs in the sewerage sector has been developed which has been endorsed by MoUD. The action plan and the outputs from the report will be used to support small and medium sized urban local governments in developing performance-based contracts and in rolling out these contracts. A national workshop chaired by the Secretary, Urban Development was held on April 18th, 2013. As a result of this work, the Secretary asked the Bank team to conduct state level workshops to disseminate the findings to various stakeholders including the private sector. 2.5.3 - New Lines of Business/Scaling up Innovations Karnataka Urban Water Supply Modernization Project - WSI has enabled the develop- ment of a new line of business focusing on WSS delivery in urban areas. A part of this engagement is the support provided for policy advocacy to scale up 24x7 water supply in three cities in Karnataka state. It has allowed the Bank team to work closely with the government of Karnataka in creating a consensus for the reforms needed for continuous water supply and for the design of the project. This has included improving the quality of the various technical and financial models that underpin the project design, the assessment of different institutional and PPP arrangements, and the organization of workshops to engage a range of stakeholders. 2.5.4 - Gender and WSS Engendering UWSS - The study examined the neglected area of gender exclusion in WSS in urban areas in India. See details in Highlight 2 Engendering Urban WSS in India. The final report is under preparation and the findings will be disseminated widely through workshops and discussions to inform water and sanita- tion policies at the national scale. This includes the National Urban Sanitation Policy which, at present, does not mention gender. 39 [ ] Highlight 2 Engendering Urban WSS in India While gender in RWSS has received some attention from policy makers, practitioners and academia, the same is not the case with urban WSS. Women suffer the most in urban settings due to the lack of access to WSS. This study on Gender and UWSS mainstreams attention to gender-based differences in the design and implementation of Bank proj- ects in the water and sanitation sector. It also suggests policy changes for gender inclu- sive UWSS. Through an extensive literature review and on the ground research in sev- eral cities, the obstacles to a gender inclusive approach to water and sanitation service delivery were analyzed. The reasons for why urban communities receive poor service and the gender implications of this poor service were distinguished. Building capac- ity of the service provider and knowledge sharing to ensure political support emerge as key factors in overcoming obstacles to gender mainstreaming in the WSS sector. As a part of this work, six case studies have been completed across India. They suggest two approaches to addressing gender and social exclusion issues in UWSS provision for the poor: (1) Household-level provision, which addresses most of the gender and social- exclusion issues; and (2) where this is not feasible, improved provision of shared services – with a special focus on gender and social exclusion issues. Based on this research, a social inclusion plan has been developed for the WSS sector. This plan is built around three key ideas – to increase awareness across all stakeholders (decision-makers, util- ity staff, academia, media and target groups) about social inclusion issues in UWSS, to highlight social inclusion issues in UWSS in the public domain – thus encouraging more government attention and action, and to create an institutional platform for joint ac- tion across government departments and institutions – for more effective grassroots impact. This plan, if buttressed by political support and an efficient service provider, could lead to a more inclusive and gender-sensitive service delivery in urban areas of India. This model of reform could provide valuable lessons for other cities in the region. 40 2.5.5 - Just in Time (JIT) Support Kerala Sanitation ScopinG - Technical guidance was provided for solid waste management in Kerala. This was in response to an urgent request from the Chief Minister of the State. A reputable interna- tional expert in SWM was engaged for this work and the final report suggested a way forward. Based on this report, the Government of Kerala has expressed interest in a pilot project. Uttarakhand Institutional Development Program for RWSS - This JIT activity led to the development of a menu of options for institutional restructuring of the Jal Nigam and Jal Sansthan, the agen- cies responsible for delivering water supply and for operations and maintenance respectively, for the State of Uttarakhand. This has helped the Government of Uttarakhand understand the options and international good practices for turning-around poorly performing RWSS service providers and institutions. 2.6 Going Forward The Bank, in partnership with AusAID, will continue 3 - Developing new institutional structures to provide to work to create the demand for reform and to im- long term sustainability for rural water supply and prove project design and implementation. Some of sanitation services, including new options where a the areas that will supported going forward are: convergence between urban and rural supply espe- cially around small towns is emerging. 1 - Looking at the entire water use cycle to ensure availability of water and water quality. This will en- 4 - Exploring the human side of gender inclusion in tail working with the Bank’s water resource manage- RWSS schemes and how this has provided a launch- ment and irrigation sectors. ing pad for new opportunities for women. 2 - Looking at ways to improve water and sanitation services in the fast growing secondary cities of South Asia where reforms are needed to prepare for rapid growth in demand. 41 3 SOUTH ASIA GENDER INITIATIVE 3.1 Why Gender Equality Matters in South Asia Gender equality is necessary to promote the human South Asia has the largest proportion of poor people development of society and not just of women. Gen- in the world. Around 460 millions out of a population der equality and empowerment is also good eco- of 1.37 billion survive on less than $1 per day. Pov- nomics as it taps into the productive force of half erty in South Asia has a strong gender dimension. the region’s population. It is also central to achieving The economic, religious, social, and caste-based the Millennium Development Goals (MDGs). While restrictions on women’s agency contribute to lower South Asian countries have made progress towards incomes and living standards for women and for achieving the MDGs, for example the improvements female-headed households. There is a growing con- in girls’ primary and secondary school enrolment cern that growth in the region is bypassing women. rates and declining total fertility ratios, gender indi- Women carry the triple burden of productive, repro- cators in South Asian nations (1) remain among the ductive, and social activities in the household and worst in the world. the community. This is in addition to limited mobility and access to educational opportunities, which re- The UNDP’s Human Development Report, 2013 pro- sults in greater inequality in economic participation. vides a Gender Inequality Index (GII), which reflects Female labor force participation rates in South Asian women’s disadvantages across three dimensions - countries in 2011 were at 31.3% compared to the reproductive health, empowerment and access to world average of 51.3%. This puts SAR ahead only the labor market. The GII, indicates the loss in human of the Middle East and North Africa Region, which development due to gender inequality, with rang- is at 22.8%. Even when women enter the economy, es from 0 where women and men fare equally to 1 they face significant barriers. Women, as compared where women fare poorly. SAR’s GII is 0.568 and only to men, are more likely to engage in less productive Sub-Saharan Africa (SSA) has a poorer GII at .577 (2). activities and to work in the informal sector. Accord- Though SAR countries are growing at a faster rate ing to the World Bank’s World Development Report than those in SSA, the GII for the two regions are com- (WDR) 2012 “women are more likely to be wage parable. Of the SAR countries, Afghanistan has the workers and unpaid family workers than men, to 13th worst GII value (.712) in the world. Bangladesh, have less mobility between the formal and informal Nepal, Pakistan and India also rank high on gender sectors, and to transition more between the informal inequality. Maldives and Sri Lanka fared better while sector and being out of the labor force(4).” Bhutan was not ranked (3). 1 - At the World Bank, SAR comprises Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. 2 - UNDP, Human Development Report, 2013. The Gender Inequality Index (GII) is a composite measure that reflects inequality in achievements between men and women in the dimensions of empowerment, the labor market, and repro- ductive health. 3 - The 2012 GII rankings out of 182 countries (182 being the poorest) were: Afghanistan 147, India 132, Pakistan 123, Ban- gladesh 111, Nepal 102, Sri Lanka 92 and Maldives 64. Bhutan was not ranked. 4 - South Asia and Sub-Saharan Africa have the highest average incidence of informal employment in the world with such employment representing over three-quarters - as high as 90 percent in some countries - of total employment. 44 Informal sector employment is highly correlated with the incidence of poverty and brings with it specific The incidence of gender based violence (GBV) re- challenges and bottlenecks that negatively impact mains high in several SAR countries. These cases women’s equal participation in the economy. These are sometimes extreme in nature with acid attacks, challenges include underemployment, lower aver- gang rapes and honor killings. Patriarchal social age wages, lack of basic safety, and minimal wage norms and the preference for sons continue to distort protection. Even when women earn an income, they sex ratios in Afghanistan, India, Nepal, Bangladesh often lack control over decisions regarding the use and Pakistan. Caste, religion and gender-based dis- of that income. In South Asia, women become even crimination have helped perpetuate this violence more vulnerable to economic disempowerment as and social exclusion in many parts of South Asia (6). they age and/or are widowed. GBV adversely affects women’s fundamental rights to life and freedom, and limits their choices. To en- The 2012 WDR argues that income and control over sure women’s safety, male voices must be included household assets play a number of reinforcing roles in in the broader gender discourse. Addressing gender improving quality of life outcomes for women across roles of both sexes is thus crucial to improving gender a number of parameters, including voice, bargaining relations in SAR. power, mobility, and ability to influence household decisions in a manner that is overwhelmingly posi- SAR has the largest proportion of young people in tive for women and children. Evidence from a range the world. One third of region’s population is be- of countries suggests that spending habits change tween the ages of 14 and 25. India alone has 200 mil- when women control a higher share of household lion young people. Gender inequality among youth income, and this directly benefits children. There- in South Asia is also apparent. Only 62% of young fore, increasing women’s labor force participation in women in SAR can read and write as compared South Asia is important not only to improve the qual- to the 77% of young men, the highest literacy gap ity of life for women, but is also a critical pathway among youth in the world. Young women in South for reducing poverty and enhancing developmental Asia also face social pressures for early marriage and outcomes for poor households. child bearing. These young mothers are twice as like- ly to die of pregnancy related causes as compared As SAR countries grow, investments in infrastructure to older women. Their children too, are more likely are also expanding. Gender remains critically im- to be malnourished. Young adults in South Asia also portant for infrastructure planning and provision. account for half the unemployment in the region be- Women pay a high price for the lack of access to cause formal job growth has not kept pace with the infrastructure, in terms of time spent accessing wa- economic growth. There continues to be a mismatch ter for domestic or agricultural uses, processing food between the skills required by employers and those and other agricultural or non-farm products, collect- taught in schools. Unemployment is worse for young ing firewood or other fuel for cooking and reaching women as compared to young men. This lack of job health facilities (5). Limited access to services also opportunities for youth will negatively impact the re- reduces academic and professional opportunities. gion’s economic growth. As this large youth popula- In particular, the paucity of safe, accessible and ef- tion transitions into adulthood, South Asian countries ficient modes of transport restrict women’s mobility, hope to reap a youth dividend by improving the pro- and impacts their access to health, education, and ductivity of this labor force. livelihood opportunities. 5 - World Bank. 2012. Companion to World Development Report. Washington, DC: World Bank. Steps to Stride: The Sustain- able Development Network’s Complement to the WDR. 6 - Oxfam Briefing Paper.2004.Towards ending violence against women in South Asia.http://www.wecanendvaw.org/ sites/default/files/Campaign%20Briefing%20Paper_1.pdf. 45 3.2 Objectives of THE SAGE Window Finding solutions for the complex issues of gender ventions. This will assist the region in meeting its MDG in South Asia presents both a challenge and an targets, in particular MDG 3 which is to “promote opportunity for action. Since June 2011, the SAGE gender equality and empower women.” partnership between AusAID and the World Bank has attempted to address some of these issues in all The corpus of the fund is quite small at AUD 2 mil- countries of the region. The objective of the SAGE lion. However the partnership affords many advan- Initiative is to scale up gender approaches in the tages, the foremost being the flexibility in the use South Asia region of the Bank through mainstream- of funds, which has allowed the development of a ing gender in operations and analytical and advisory cross-country, cross-sectoral regional program that activities. It also aims to support the preparation and strategically addresses key gender gaps. The SAGE supervision of stand-alone gender projects, strategic window has supported at least one task per country analytical work that fills knowledge gaps and the and several regional tasks (7). monitoring and evaluation of gender based inter- 3.3 Areas of Technical Assistance The approach followed by SAGE is to: These themes are built around the most pervasive gender issues in SAR. Each SAGE activity addresses 1 - continue mainstreaming gender across the World key aspects of one or more of the main themes. Fig- Bank’s work in SAR both in operations and AAA ure 9 gives the focus of each theme and the tasks 2 - finance strategic stand-alone projects that target supported in each thematic area. Several SAGE ac- the most salient gender issues in the region tivities have also been planned as a follow-up to the 2012 World Development Report on “Gender Equal- 3 - support analytical work that pushes forward the ity and Development.”Finally, the attempt has been thinking and approaches to addressing gender is- to introduce a truly gendered approach that identi- sues in the region fies masculinity concepts and the impact of interven- 4 - improve monitoring and evaluation of gender tions on both women and men and on gender rela- work, including rigorous impact assessments. tions. See Highlight 3 Masculinity and Development for more details. The main themes being addressed are: • Women’s Labor Force Participation • Social Inclusion and Gender Relations • Gender and Human Development 7 - Nepal is the exception, an ongoing country program on gender and social inclusion is supported by DFID. Separate AusAID funds are supporting the gender task in Afghanistan, a study of gender and access to justice in Afghanistan. 46 3.3.1 - Improving women’s labor force participation Impact Evaluation of Northern Area Reduction of Poverty Initiative (NARI) - The NARI project is the World Bank’s first gender focused project in South Asia. It facilitates access to employment opportunities in the garment sector for poor and vulnerable women from lagging areas of Bangladesh, through access to information, technical and life skills training, transitional housing, and other support. The impact evalu- ation (IE) will assess the project’s impact on the income and socio-economic conditions of the beneficiaries. Based on this evaluation, the project will be scaled up to include other areas and sectors in Bangladesh. Gender Analysis of Micro, Small and Medium Enterprises (MSME) in India - This ac- tivity informs the Bank’s ongoing policy dialogue with the Ministry of Micro, Small and Medium Enterprises in India regarding a potential Bank funded operation led by South Asia’s Finance and Private Sector Develop- ment Unit. The study is expected to contribute to either a component of this project or to a separate interven- tion on women and MSMEs in India. India Gender and Economic Development Report - This work is a follow up to the WDR 2012’s report on India. It will examine the factors behind the low labor force participation of women. It will also identify policies, programs and approaches that could enhance women’s labor force participation. The work has strong client support from several ministries that look at the impact of women’s labor force participa- tion on the economy and is expected to inform government policy and discussions on the next Five Year Plan. Sri Lanka Gender Assessment - Though Sri Lanka performs better on gender equality than most countries in South Asia, the Government of Sri Lanka (GoSL) is keen on addressing the remaining gender disparities in the country. The study will provide recommendations on narrowing the gender gap in eco- nomic participation. It examines the opportunities available to both men and women to participate in the economy, including access to and use of labor, land, financial and product markets. Close attention is being paid to issues faced by youth in both gender groups. Regional variations in labor force participation due to the conflict in the North East region of the country will also be taken into account. Social Observatory for the National Rural Livelihoods Mission - The task aims to create a new environment for monitoring and evaluation (M&E) within the world’s largest rural women cen- tered livelihoods program - India’s National Rural Livelihoods Mission (NRLM). The mission is supported by Bank lending of $500 million. Support from SAGE went towards the setting up a Social Observatory (SO) within the mission, which is utilizing more scientific techniques for M&E, with increased attention to the processes of change. The SO will facilitate learning and subsequent changes to the design of the program with a view to reducing gender inequalities in livelihoods projects. It follows the principle of open data access. Pink Buses in Pakistan - This activity aims to improve women’s mobility and security in the city of La- hore, Pakistan through a study of the women only Pink Buses Scheme. Analytical work including an activity based survey is being undertaken to understand women’s mobility under the pilot scheme. It will assist Lahore Transportation Corporation in understanding key issues linked to the feasibility and sustainability of scaling up the program. Study of the Women Only Bus Service in Dhaka - To address the increasing set of issues that female commuters face, many cities around the world have introduced women only services. These have included women only rail cars in Tokyo, New York, Sao Paulo, Mumbai, and women only bus service in Mexico City, Guatemala City, and Lahore. This women only bus service has been introduced before in Dhaka but the service was stopped as it was not financially viable. The study addresses the issues faced by women in accessing transport and the sustainability of the women only bus service. 47 3.3.2 - Social Inclusion and Gender Relations South Asia Youth and Gender Activity Mapping - The activity provides a strategic focus to the World Bank’s work on youth issues in South Asia, specifically on the vulnerabilities and needs of adoles- cent girls and young women. It builds and disseminates knowledge on youth and gender issues in the region, and aims to provide recommendations for youth and gender programming in SAR Youth Development and Gender in the Maldives - There is little information at present on the overall status of male and female youth in the Maldives and the gender issues they face. This study will increase the understanding of positive youth behaviors that lead to productive adulthoods in the Maldives through youth mapping exercises and interviews undertaken by youth of other youth and organizers of youth programs. Building Capacity for Gender Mainstreaming in Bangladesh - The task facilitates gen- der mainstreaming within the Ministry of Housing and Public Works. It builds the capacity of the ministry to address gender differences within housing programs. It will contribute to the design of a Bank funded project to improve the housing conditions of women in urban slums. Men, Masculinity and Development in SAR - The Bank is exploring options for supporting a re- gional initiative aimed at understanding men’s attitudes and practices, as well as women’s opinions of men’s roles and practices, on a variety of topics related to gender equality. The study is also exploring how migra- tion, unemployment and changes in the labor market impact the perceptions of masculinity in the region. More details are available in Highlight 3. Moving to a Male Inclusive Gender Approach in SAR (JIT) - This activity will create video/ photo blogs and presentations on a male inclusive approach to gender equality that will contribute to a radi- cal shift in on how gender is addressed by the Bank. It will strengthen the approach to gender equality and empowerment in Bank’s operational work. 3.3.3 - Gender and Human Development Bhutan Gender Policy Note - Bhutan fares better on many gender related parameters than most South Asian countries however disparities remain in economic and political participation by women. The policy note will provide recommendations to support the economic and political empowerment of women in Bhutan, with a focus on improving school enrollment. Gender issues in Bhutan are unique and, therefore, provide an opportunity for innovative analysis. Bhutan is one of the few South Asian countries where men and women are relatively equal and the study could offer an overall positive story on gender equality from the region. SAGE Seminar Series - A SAGE seminar series has been organized to disseminate the results and out- comes from tasks funded, within the Bank. The seminar series has included presentations on the Social Obser- vatory for the NLRM, and the study on Youth and Development in the Maldives among others. 48 [ ] Highlight 3 Masculinity and Development ‘Gender’ deals with more than women’s issues. Expanding our understanding of male gender roles can provide a more nuanced perspective on gender relations and how they impact society and economic development. Though much is talked about regard- ing this issue it has not been examined in any depth. The SAGE funded study on Mas- culinity and Development in South Asia will narrow this analytical gap. It will build upon an earlier study done in partnership with students of George Washington University in the US. It will explore how migration, unemployment and changes in the labor market impact the perceptions of masculinity in the region. It also looks at the impact of mas- culinity and femininity on exposure to risk factors and adoption of risky behaviors, for example, dropping out of school, drug consumption, and unprotected sex. It examines how gender based violence is connected to constructions of masculinity. By focusing on examples of how ‘masculinity’ is defined and the challenge of what it means to be male in a variety of contexts in contemporary South Asia. The activity highlights the diverse ways in which boys and men are both challenging and perpetuating gender norms, and impacting South Asia’s performance on gender equality indicators. The report, will address the impact of masculinity on development outcomes, including the well- being of males, females and children within a household and at the community level. 49 : : Pillar 1 e Pillar 2 : Pillar 3 man u sion Labor F orc Social In c l and uH er Rela tions Gender pment ation n d Develo Particip a nd G e • Analyze gender gaps in labor force • Focus on poor and vulnerable women • Close gender gaps in education participation in South Asia to influence from lagging regions policies • Improve women’s access to health • Focus on inclusion of youth issues in services • Improve sector capacities to allow for South Asia increased economic participation • Assistance to improve SAR countries’ • Broaden approach on gender to gender policies • Improve access to skills and jobs include male inclusive gender approaches • Improve access to services u pp o r t SAGE s • Bhutan Policy Note looks at the gen- der gaps in higher education to inform • Support for youth development Bhutan’s next development plan through i) Youth and Gender Mapping and ii). Youth and Gender Development • Other activities that impact women’s • Gender Analysis of the Micro, Small through ICT economic and social development also and Medium Enterprises in India to analyze support the objectives of this pillar gender implications • Impacts of masculinity on development outcomes through i) Men, Masculinity • Impact evaluation of the Northern Asia and Development in South Asia and ii). Reduction of Poverty Initiative (NARI) Moving to a Male-inclusive Gender Ap- in Bangladesh to determine impact on proach via blogs and presentations socio-economic welfare of women • Build Capacity in Bangladesh to plan • Women-only buses to improve access for gender differentiated housing needs i) Pink Buses in Pakistan; and ii) Women- only bus service in Dhaka • Analyze gender, youth and develop- ment in Maldives and Sri Lanka to impact • Social observatory for the National policy directions Rural Livelihoods Mission to look at how gender inequalities can be reduced • Analyze women’s economic participa- tion i) India: Gender and Economic Development Report; and ii) Sri Lanka Gender Assessment Diagram 4 - SAGE Thematic Pillars Supported 50 3.4 Financial Summary 3.4.1 - Disbursements & Commitments All but $300,000 of the AUD 2 million available under the SAGE window has been allocated to 14 activities. Disbursement and commitments which indicates funds under contracts are indicated in Figure 5. The window is disbursing well with 56.10% of total allocations either committed or disbursed. Since rounds are funded at different times it is useful to look at these figures by each round. In Round 1, 65.57% of the funds allocated have been committed and disbursed. The figure for the more recent Round 2 is 41.73%. Total Total   Round 2 Amount  Committed  &  Disbursed   Round2   Grant  Amount   Round 1 Round1   | | | | | | | | | 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 0   200,000   400,000   600,000   800,000   1,000,000   1,200,000   1,400,000   1,600,000     Disbursed & Committed Grant Ammount Figure 5 - SAGE Funds Allocated, Disbursed and Committed as of February 20, 2013 51 3.4.2 - Allocations by Country The allocation of funds across the countries in South Asia is indicated in Figure 6. The largest portion of funds have been allocated to activities in India and for regional activities, that received 31.95% each of alloca- tions. This is followed by Bangladesh and Bhutan at 14.06 and 7.67% respectively. Pakistan, Maldives and Sri Lanka received 4.79% of the funds each. Bangladesh 14.06% 31.95% India 4.79% Bhutan 4.79% Regional 4.79% Pakistan 7.67% Sri Lanka 31.95% Maldives Figure 6 - SAGE Allocations by Country 3.4.3 - Allocations by Thematic Pillar The SAGE window is supporting 14 tasks in total. Of these eight tasks with 58% of total allocations support the theme of women’s labor force participation. Five activities with 34% of the funds allocated support the work encompassing social inclusion and gender relations. One task with 7% of allocations supports the gender and human development theme. Figure 7 indicates allocations made by theme. 7.42% Gender & Human Development Social Inclusion & 34.50% Gender Relations 58.09% Improving Women’s Labor Force Participation Figure 7 - SAGE Allocations by Thematic Pillar 52 3.5 Preliminary Results 3.5.1 - Labor Force Participation Social Observatory for the National Rural Livelihoods Mission - A Social Observa- tory (SO) has been created within the NRLM in India. It has led to increased attention on the processes of change, rather than just outcomes. Livelihoods projects are now being assessed and monitored by mea- suring their impact on a multi-dimensional set of indicators; income, nutrition, health, empowerment, and agency. An international workshop is planned for June 2013 to disseminate the findings more widely. Sri Lanka Gender Assessment - The draft of the final report has been completed. Recommenda- tions based on the study include the importance of school and community based outreach campaigns to change perceptions of education and types of jobs for men and women. The assessment also emphasizes the importance of improving women’s access to job information and child care, especially for the jobs within the intermediate and services sectors, and of addressing biases against leaving children with child care pro- fessionals instead of family members. Workshops to share the findings of the report will be organized shortly. India Gender Report - Papers commissioned for the study to ascertain the factors leading to women’s continued low participation in the labor force vis-à-vis men in India, and to identify policies, programs and approaches that could contribute to enhancing women’s labor force participation have been completed and reviewed. As a result of this work, an Inter- Ministerial Task Force has been set up by the National Mission for the Empowerment of Women, Government of India. The report will be finalized and disseminated shortly. 53 3.5.2 - Social Inclusion and Gender Relations South Asia Youth and Gender Mapping - This activity has been completed. A number of com- munication materials have been developed. A phase II activity is looking at youth and ICT as an effective way of reaching youth in South Asia. The region has one of the fastest growing cell phone markets in the world. 3.5.3 - Gender and Human Development Bhutan Gender Policy Note - The report has been completed. However dissemination is awaiting the outcome of elections in Bhutan. A workshop to disseminate the findings will be held after August 2013 when a new government is in place. The work will feed into Bhutan next Five Year Plan. 3.6 Going Forward In the next round the SAGE window will continue to on WSI provides more information) and a proposed mainstream gender across the different sectors in study of gender and transport. Collaborative work the South Asia region of the Bank. The SAGE funded across sectors to integrate gender at every stage activities are being complemented by other gender of the project cycle from design, to implementation related activities funded under the WSI and IFG win- and monitoring and evaluation will also be on going. dows of the PFSA UTF. These include a study of gen- More outcomes and results from the tasks funded are der and urban WSS in India (Highlight 2 in the section expected in the next reporting cycle. 54 55 4 Infrastructure For Growth 4.1 Why Infrastructure and Climate Change Matters for Growth in South Asia The infrastructure gap in South Asia is a major chal- ple in them will bear the brunt of climate change due lenge to connectivity and integration both within to disadvantaged geography, limited assets, and a countries and within the region. Infrastructure indica- greater dependence on climate-sensitive sources of tors for the region are close to Sub-Saharan Africa income. South Asia is at the epicenter of the climate and, in doing business surveys, these indicators are change debate due to its extreme vulnerability. High cited as the biggest roadblocks to growth. SAR’s population levels place increasing demands on an electrification rate is well below the average for de- already stressed and largely degraded natural re- veloping countries at 73%. Unreliable and poor ac- source base. With an estimated 600 million South cess to electricity hampers business development. Asians subsisting on less than US$1.25 a day, even Taking “total road network per 1,000 people” as an small climate shocks can cause irreversible losses and indicator, SAR has 2.7 km, while the world average is tip large numbers into destitution. The region is also at 6.7 km per 1,000 persons. The quality of the roads is highly susceptible to natural disasters. Over 50 per- also much lower. The example of the transport sector cent of South Asians – more than 750 million people reveals that it suffers from lack of intra-regional con- – have been affected by a natural disaster in the last nectivity, unrealized potential for rail and inland wa- two decades. With climate change the frequency ter freight transport, and inadequate road and rail and incidence of such natural disasters is projected connectivity of ports with hinterlands, poor and un- to increase. Sea level rise is a further concern as the reliable road transportation and lack of inter-modal region has long and densely populated coastlines. connectivity. These gaps in basic infrastructure are This will have the largest impact on Bangladesh and coupled with poor sector governance, fragmenta- the Maldives. tion of institutions, low capacity and general ineffi- ciencies. This provides both an opportunity as well as a chal- lenge for sustainable growth in the region. South Asia Transport and energy connectivity (i) improves ac- has the world’s largest concentration of poor (44%) cess to goods and services at lower prices, making and undernourished (39%) people. At the same time prices less responsive to domestic shocks; (ii) increas- it has the greatest share of working age population, es access to markets and competitiveness of domes- and one fourth of the world’s middle class consum- tic goods; (iii) helps business develop competitive ers, at half a billion. In the next 20 years, one million advantages and reduce costs; (iv) provides workers, of the region’s youth will enter the workforce every particularly those in rural areas, with greater job and month. To take full advantage of this youth dividend, income opportunities, and movement of labor; and the region has to accelerate job creation while si- (v) increases the access of business to inputs. multaneously raising productivity by tackling gaps in education, infrastructure, and energy while being Another key regional issue is climate change, which sensitive to climate change impacts. is central to the development and poverty reduction agenda. Developing countries and the poorest peo- 58 4.2 Objectives Of THE INFRASTRUCTURE FOR GROWTH WINDOW The main objective of the IFG window is to meet the der, and social accountability, voice & participation, infrastructure gaps in the region by fostering an en- and safeguards. The approach is to support analyti- abling environment for infrastructure development cal work, provide technical assistance, and improve and facilitating infrastructure service delivery. It cov- knowledge generation and dissemination to enable ers two sectors - energy and transport - through two policy and institutional reforms around the themes thematic pillars Regional Economic Integration and supported. It also helps to raise the quality of Bank’s Climate Change. Several Cross Cutting themes that analytical and operational work around the two the- are crucial to realizing sustainable outcomes under matic pillars by funding informed policy dialogue these pillars are also funded, including sector gover- and improvements in the design, implementation, nance and reforms, private sector participation and supervision and evaluation of Bank projects. PPPs, conflict and fragility, social inclusion and gen- 4.3 AREAS OF TECHNICAL ASSISTANCE Several sub-themes are being funded under each thematic pillar along with cross-cutting issues. These are detailed below along with the tasks funded under each area. 1 - Regional Economic Integration In addition to cross border integration, activities that address connectivity to lagging regions and communi- ties, between key rural and urban regions and that focus on regional economic development around trunk infrastructure are supported. 59 Integrating Lagging Regions - These are often crucial for economic integration and reducing conflict and fragility in the region. Several of these underdeveloped areas can be found on the borders of countries in the region. These include the NE region in Sri Lanka, the NER in India, and the Chittagong Hill tract in Bangladesh, among others. These regions are integral to cross-border trade. Cross border disputes and conflicts play a major role in the lack of integration within the region. Connecting lagging regions to the mainstream economy is also key to inclusive growth. See Highlight 4 The Challenge of Regional Integration in Post Conflict Lagging Border Regions for details of work funded under this sub-theme. Regional Economic Development - Regional economic development lays the foundation for national, regional and international economic integration. It is a process by which public, private and peo- ple (NGOs and CBOs etc.) partners (PPPP) come together to maximize the economic assets of a region. There are several such potential growth corridors along trunk infrastructure in the countries in South Asia. This includes the proposed Inclusive Economic Development Zone around the Eastern Dedicated Freight Cor- ridor (DFC) in India. The DFC has the potential of connecting to the Trans-Asian highway, which is planned to link the South and East Asia regions. Rural-Urban Connectivity - Peri-urban regions at the crossroads of localization and globalization drive much of the growth and trade in emerging economies. They are at the forefront of the economic, social and built environmental change that leads to integration. Businesses relocate to these regions due to lower land and production costs and due to the proximity to markets, trade and transportation hubs. The de- velopment of these growth areas has been haphazard in South Asia. Well designed connectivity and urban- rural integration in these regions can promote greater trade and integration by linking together market towns and their hinterland, where economic production takes place. 2 - Climate Change Within this broad theme, the window is funding activities focused on clean and renewable energy, and leading to improvements in energy efficiency. Reducing the impact of cities on climate change, improving access to green finance, development of climate smart strategies and climate resilient infrastructure delivery are other sub-themes. Clean Energy and Renewables - Strategies to lower emissions by diversifying into cleaner energy sources are crucial to SAR. India, the largest energy consumer in the region, is not well endowed with cleaner fuels (1). The hydropower potential in the country while large is not enough to meet future energy needs that are fuelled by rapid growth. There is potential for importing hydropower from Nepal and wind power from Sri Lanka, but challenges are rife in trans-boundary energy trade. There is considerable scope to expand renewable energy through hydropower in India, Nepal, and Pakistan, and natural gas in Bangladesh. Solar and wind power are two other green energy sources that have great potential in the region. Energy Efficiency - It can translate into reduction of costs, greater productivity and reduction in GHG emissions. Cost-effective energy efficiency opportunities exist across the entire chain of energy production, dis- tribution, and consumption in all South Asian countries. Governments have a key role to play in specifying and imposing energy efficiency standards, coming up with incentives and certification programs for industry and utili- ties, and improving the regulatory environment for PPPs. This neglected area can yield quick wins at a low cost. Cities and Climate Change - Cities, the engines of growth as the region transitions to services- led growth, are also major contributors to GHG emissions. South Asia is undergoing rapid and unplanned urbanization and its cities consistently rank at the bottom of global livability surveys. Rapid urbanization is accompanied by growing demand for transportation, energy, water supply and sanitation and increased generation of wastewater and solid waste contributing to the growth in GHG emissions. There are untapped opportunities for South Asia’s cities to enhance densification and simultaneously improve services and quality of life while reducing the GHG footprint. 1 - Oil reserves are 789 million tons of oil equivalent and gas reserves are 1,101million tons of oil equivalent (Government of India, Integrated Energy Policy). 60 Climate Smart Development and Green Growth - Countries in South Asia will be increasingly challenged to develop and implement climate smart development strategies (low carbon, low water, low energy, and green growth), taking into account the impacts of climate change on development outcomes. There is considerable scope to develop national, state, city, and sectoral strategies and action plans for cli- mate smart and sustainable green growth in South Asia. Green Finance - Green finance is fundamental to the investments needed for green technologies and green growth. It requires tapping into, international and domestic, public and private financial flows through a variety of instruments besides carbon finance. Competitive, profit-oriented private initiatives are essential for getting to least cost options for climate mitigation and adaptation. Public policy will play a crucial dual role in growing this sector: by establishing regulatory and incentive frameworks to catalyze private invest- ment and by generating public resources for needs not addressed by private flows. Integrating adaptation and mitigation considerations into infrastructure - New infrastructure can be made climate resilient by ensuring that an asset is located, designed, built and operated with the current and future climate in mind. Existing infrastructure can be made climate proof by ensuring that maintenance regimes incorporate resilience to the impacts of climate change over an asset’s lifetime. Achieving more climate resilient infrastructure requires that impacts of climate change be a key consideration in the way infrastructure is planned, designed, built and maintained. 3 - Cross Cutting Themes Several crosscutting themes are essential to achieving optimal and sustainable results under the main pillars. Sector governance and reforms are fundamental to overcoming the institutional and governance deficit in South Asia. Social inclusion, gender equity and access are essential to ensure inclusive growth and achieve- ment of the MDGs. Social accountability along with voice and participation can enable beneficiaries and civil society groups to engage with policymakers and to make service providers more responsive to con- sumer needs. South Asia has a recurring motif of fragility and conflict both intra and cross border that affects development outcomes and requires substantial investment in the reconstruction and rehabilitation of infra- structure. This calls for a light footprint and for development partners to play the role of honest brokers. Infra- structure connectivity in fragile environments also requires a good understanding of the political economy to develop sustainable models of service delivery. Mobilizing private investment and creating an enabling environment for private actors is crucial for closing the financial and service delivery gaps and for achieving lasting outcomes. Environmental and social safeguards provide important benchmarks for performance for both public and private sectors. Safeguard policies allow the potentially adverse environmental and social impacts of invest- ments to be identified, minimized, and mitigated. The region lacks the expertise needed to design and imple- ment safeguard policies, and for capacity building especially through South-South cooperation. The IFG window has so far funded five tasks for $1.67 million. Proposals are being evaluated for the next phase of funding. Of the activities funded, two come under the regional integration, and one can be classified un- der the climate change theme. Two other tasks support the cross-cutting themes. These are briefly described below. Diagram 5 indicates the key themes and the projects funded for the IFG window. 61 [ ] Highlight 4 The Challenge of Regional Integration in Post Conflict Lagging Border Regions Conflict is endemic in South Asia. Conflict in border areas is persistent due to the ne- glect of these areas that are remote. One such highly sensitive geo-political region is the North East Region (NER) of India, comprising seven states called the seven sisters. Six of the seven states have seen armed conflict and rumblings are still heard from time to time. This is an area of strategic importance that borders five countries -Bhutan, Ban- gladesh, China, Nepal and Myanmar - and stretches across the eastern foothills of the Himalayas. The bordering areas in Bangladesh and Myanmar have also seen conflict with rebels often taking refuge across borders. The slow pace of industrialization and lim- ited opportunities for productive economic activities have led to a distressed economy and an alarmingly high rate of youth unemployment of 14%, despite high rates of lit- eracy. This frustration of the youth provides fuel for insurgencies. Agriculture remains the backbone of the economy, contributing close to 26% of the regional GDP and employ- ing over 75% of the population, with agricultural workers being predominantly women. However, the region is well endowed with natural resources. Its energy reserves include more than 40% of the hydropower potential, 37% of estimated petroleum reserves and 15% of natural gas reserves of India. This puts the NER at the center of the energy secu- rity and trade equation for India and for South Asia. In addition, with significant deposits of mineral reserves like limestone, clay and iron ore, the region could be one of the economic drivers of SAR’s economy. NER is also emerging as an important gateway for trade with Bangladesh, Myanmar, Thailand, Laos, South-west China and further east. The area is of great strategic importance and GoI has acknowledged this with its ”Look- ing East” policy which focuses on development of the region and on energy trade with Bangladesh. The Bank plans to support the development of the transmission and distri- bution grid in six states with lending of $1.5 billion. GoI will support electricity generation. Given the complexities of infrastructure delivery in NER the IFG window is funding key work that will improve the design of the project and ensure sustainable regional integra- tion and trade. This includes key diagnostics of the utilities, a study of gender impacts, and of the political economy of energy delivery in this post conflict region, PPP options and the development of a communication strategy. The assessment of the utilities that has been completed points to poor institutional frameworks and low capacity as the key challenges to be overcome for sustainable energy security and trade in the region. 62 ] 4.3.1 Regional Economic Integration NER Distribution and Transmission Project: is for assessing opportunities and challenges to improv- crucial for integrating a lagging post conflict region ing electricity sector integration in the South Asia with other parts of the country and region and for Region, with particular attention to how activities regional energy security and trade. The work funded aimed at improving integration can impact the ad- includes diagnostic studies of transmission and distri- equacy of electricity supplies to meet growing total bution companies in six states of the NER with a view demand and increase access to affordable elec- to facilitate institutional reforms and build capacity tricity sources. It looks at increasing the reliability of of the companies to strengthen transmission and dis- supply, whether domestic or regional to reduce the tribution in the region. It will help raise the quality of burden of economic disruptions from interruptions the design of the $1.5 billion Bank-funded project. in supply. It also examines the economic efficiency See details in Highlight 4. and environmental sustainability of supply, to reduce threats to health and the ecosystem and assess the Regional Study on Energy Security and Trade: financial sustainability of enterprises in the sector. aims to create and disseminate a knowledge base 4.3.2 Climate Change Green House Gas (GHG) Accounting for Transport sions. It will take into consideration the many fac- Projects: while the Bank is an advocate for green tors involved in the consumption of fossil fuels and technologies and growth, it has not introduced GHG in estimating GHG emissions (e.g., quality of fuels, accounting in its own projects. It now plans to intro- vehicle kilometer travelled, travel speed, driver’s be- duce GHG accounting in the energy, transport and havior, modal choice, vehicle technologies, etc.). forestry sector projects. This activity pilots GHG emis- A highway project in Sri Lanka and the Rajasthan sion accounting in transport projects in South Asia by Rural Roads Project in India have been selected for customizing improved methodologies and tools for the pilots. The aim is to develop methodologies that select projects. It will measure emissions before and are cost effective and easily transferrable to gov- after project interventions to determine the impacts ernments. This is particularly important because the (positive or negative) thus impacting project design. public sector is providing investments that are signifi- In addition, the approach will examine congestion cantly larger than the support provided by develop- and energy efficiency as ways to reduce GHG emis- ment partners. 63 4.3.3 Cross cutting areas Regional Study State Fragility and Service De- foreign currency financing using a variety of options. livery: the study examines how to better integrate The task funded will support Power Grid in entering marginalized communities and lagging areas of SAR the international loan market for the first time on its into the economic mainstream by overcoming insti- own credit, setting a precedent for other regional tutional bottlenecks and other drivers of fragility and public sector entities. Based on a market sounding, conflict. It addresses the issue of poor physical and credit enhancement through the World Bank’s PCG social connectivity, and economic integration as is essential for this large open market borrowing and they relate to low capacity conflict affected areas, for the long tenor of 12 to 15 years from commercial with a view to defining more effective engagement banks, suitable for capital investment in transmission strategies and responses to weak institutions, slow operations. growth, and conflict. This work will include case stud- ies on Afghanistan, Nepal, Pakistan and Sri Lanka. To successfully negotiate and close this landmark The goal is to develop an analytical framework and transaction would require the use of experienced operational guidelines that allow for better design guarantee specialists who know and understand and implementation of infrastructure interventions in the business and the Bank’s guarantee instrument, conflict-affected and fragile areas of South Asia. and have a track record of completing challenging transactions in difficult market and country environ- Private Sector Participation through Partial ments. The window is financing the financial and le- Credit Guarantee: Power Grid Corporation of India gal advisory support for the World Bank guaranteed is the national transmission company of India and a syndicated loan transaction. The activity marks a key player in regional energy trade in South Asia as landmark transaction nationally and in South and for example in the Indo-Nepal Energy Trade project. East Asia. This would be the first time a World Bank It is also the main developer behind the North East Guarantee would be used to mobilize private sector Region Grid. The Bank is offering the first Partial Credit financing in India, signaling the readiness of the coun- Guarantee (PCG) in South Asia, and the second one try’s power sector to attract international commercial ever at the Bank, to enable the company to raise financing. The funds would result in an intra-regional US$500 million of private financing to complement grid that would enhance connectivity to lagging re- Bank financing for the Power System Development gions improving their growth prospects. An efficient Project V (PSDP V). The project will strengthen the national transmission grid would contribute to greater national grid in order to increase reliable power ex- cross-border trade by moving excess energy from changes between regions and states of India, and across the country for trade and by improving elec- potentially between other countries in South Asia. tricity access for intra-regional transport and logistics The project would strengthen the transmission system networks and producers of tradable goods. Diagram in the power deficit regions and increase inter-re- 5 indicates the thematic areas and sub-themes and gional transmission capacity. The company has large activities funded under the IFG window. financing needs for capital expenditure and plans to mobilize US$18 billion, including US$2 to 2.5 billion of 64 1: Pillar l 3: na 2: Pillar nge Pillar ng Regio ic s-cutti om Cha Cros mes Econ C limate ation The Integr • Focus on transport and energy con- • Focus on clean energy and renewables • Sector governance and reforms nectivity • Focus on energy efficiency • Social inclusion, accountability, voice, • Connectivity to lagging regions and gender equity and access communities/groups • Address links between urban growth and climate change • Focus on fragile states and conflict/ • Regional economic development post-conflict regions • Support climate smart development & • Rural-urban connectivity green growth • Mobilize private investment • Green finance • Improve capacity for environmental and social safeguards • Integrate adaptation and mitigation considerations into infrastructure delivery pp o r t if g su • Framing Responses to State Fragility in South Asia to analyze the needs of • GHG accounting in South Asia marginalized, fragile, and post-conflict region to measure greenhouse gas emis- communities to better integrate them into sions and determine impacts of transport the economic mainstream projects in India and Sri Lanka • Sustainable Development of Transmis- • Using innovative financing structures sion and Distribution Sector in North to leverage private sector financing for Eastern Region of India to improve India’s national transmission company transmission and distribution of power Powergrid to promote a stronger intra- to lagging regions and support future regional grid to improve energy con- cross-border trade nectivity and trade • South Asia Energy Security and Trade Study to analyze challenges and oppor- tunities for regional energy integration and facilitate trade among South Asian countries Diagram 5 - IFG Thematic Pillars Supported 65 4.4 Financial Summary 4.4.1 - Allocations made by Thematic Area The window has a corpus of AUD 20 million AUD 11.3 million has been received from AusAID. Of this $1.67 mil- lion has been allocated. Figure 8 indicates the grant amount under each theme. 23.58% Cross-Cutting Themes 2.36% Climate Change 74.06% Regional Economic Integration Figure 8 - IFG Allocations by Thematic Area 4.4.2 - Allocations by SECTOR Of the sectors funded, energy received the largest portion of grants nearly 67% followed by conflict and fra- gility approximately 30% and transport sector with 3% of funding. Other activities that address the key themes of the IFG window are under consideration for funding. Energy 69.78% Transport 2.75% Cross-Cutting Themes 27.47% Figure 9 - IFG Allocations by Sector 66 4.4.3 - Allocations by COUNTRY Three of the five tasks funded are regional in nature and received approximately 56% of the grant amount. Two tasks were funded in India with 44% of the funds being allocated by country. In the next phase of IFG funding, more tasks focused on other South Asian countries and the region are to be funded. 56% Regional 44% India Figure 10 - IFG Allocations by Country 4.5 Preliminary Results IFG newest window in the PFSA UTF was set up in June 2012. The five tasks funded are still under implementa- tion. There are however interim results available from two of the tasks funded. NE Transmission and Distribution Project - Government of India has initiated a program to strengthen the inter-state and intra-state transmission and sub-transmission infrastructure in the region as a part of its wider efforts to develop the energy resources in the NER for electricity trade within and outside the region, and to expand and strengthen transmission systems and make possible last mile connectivity to households. GoI has sought Bank support for investments in the intra-state transmission and distribution network and for institutional reforms and capacity building initiatives across the 6 states of Assam, Manipur, Mizoram, Meghalaya, Tripura and Nagaland. Assessments of the utilities in all six states were carried out to identify the key challenges to institutional reform and capacity and the institutional strengthening interven- tions needed in each state. Diagnostic assessments of all six states in the NER have been completed. These have revealed weak institutions and low capacity as the key challenge in all six state power institutions and systems. 67 Regional Study on Energy Security and Trade - Inception workshops were held in Delhi, Kathmandu, Islamabad, and Dhaka, along with meetings with a variety of stakeholders including govern- ment advisors, regulators, power market players, and organizations. Besides this discussions have been held with AusAID, ADB, USAID and the SARC secretariat and energy office. AusAID staff attended the regional workshop in Delhi and the consultations that followed. The common view expressed was that the study was valuable and timely. Participants highlighted a number of domestic policy challenges that had to be ad- dressed to meet growing demand and for regional energy trade. The strengths and weaknesses of the two broad approaches to regionalization were discussed: a more incremental model in which bilateral projects build up to multilateral cooperation, and a framework model by which consultations towards a broader re- gional approach are initiated. Consultants are in the process of being hired for the analytical work. Based on the consultations undertaken, advisors with experience and insight into national issues in each country and also regional issues are being selected. Workshops are to follow in Afghanistan, Bhutan and Sri Lanka shortly. 4.6 Going Forward The activities funded through the IFG window will cross border trade with Bangladesh via the Ganga continue to address key climate change issues and and Brahmaputra rivers. Under the climate change to mainstream climate change considerations into pillar the tasks to be funded includes a green urban the Bank’s work program in the South Asia region. transport strategy for Afghanistan. Under the cross It will also support the many dimensions of regional cutting theme a program to build in country capac- economic integration. The next phase of activities ity for environmental safeguards taking into account are currently being finalized. These will cover among green growth and climate change will be launched others, under the regional economic integration pil- through the facilitation of national centers of excel- lar a study of ports, trade and logistics in South Asia. lence. The window will continue to fund strategic Another task will look at building inland waterways and innovative tasks under the focus areas. in India that can link to the DFC and make possible 68 69 RECIPIENT EXECUTED WINDOWS SRI LANKA NORTHERN EASTERN 5 Sri Lanka North East Water And Sanitation and Hygiene Project 5.1 The Case for Water and Sanitation and Hygiene In North East Sri Lanka Sri Lanka’s development, even through the long pe- The United Nation’s Millennium Development Goals riod of conflict, has been impressive. Since the end of (MDGs) confirm the critical role of water supply and 26 years of conflict in the northern province in 2009, sanitation (WSS) in sustainable development and (the conflict in the eastern province ended in 2007), poverty alleviation. The health, environmental, and the country is on its way to achieving middle-income socio-economic benefits that result from improved status. Growth however has been uneven and not access to WSS is a compelling argument for greater inclusive, as lagging regions and communities have investment in the sector. The poor gain directly from not shared in this prosperity to the same extent as improved access to basic water and sanitation ser- the leading areas. The south-western region has ben- vices through improved health, averted health care efitted from economic growth while the north and costs, and time saved. Investing in WSS makes busi- east, which have been devastated by civil war and ness sense as it also contributes to increased produc- natural disasters, are still lagging behind. Income per tivity. Meeting the MDG for WSS globally would mean capita in the Eastern and Northern provinces is al- an annual gain of 322 million working days, valued at most 50% less than in the Western Province, which $750 million. alone contributes over 50% of the country’s GDP. In- dicators on poverty, income, health, education, and The Joint Monitoring Program (JMP) Regional MDG accessibility to economic infrastructure and services (2009-10) reports that Sri Lanka is on track to meet its show significant disparities between the North, Cen- water supply targets and is an early achiever of sani- tral, and South-West provinces. Another indicator of tation targets. In the rural areas improved or piped skewed growth is the fact that poverty is concen- water coverage was 88% while sanitation coverage trated in rural areas, with 15.7% of population consid- was 92% in 2008. However, the data does not include ered poor, compared to 6.7 % in urban areas (World information on many parts of the north and east. Bank 2011). Reducing regional disparities is a priority An assessment of the condition of returnees in the of the government of Sri Lanka (GoSL). Northern Province in early 2010 reported high levels of damage to basic infrastructure. In the assessment There is an urgent need to support reconstruction area covering 13,300 water sources, 52% were not in the post conflict areas, particularly as the scaling working and 38% were damaged or contaminated. down of humanitarian activities further impacts the In addition almost 25,000 toilets were needed. Of the access to infrastructure and services. in the country. existing facilities only 587 were functional and 2,880 AusAID’s Country Strategy for Sri Lanka (2011-2015) needed repair (IOM, 2010). In spite of Sri Lanka’s bet- stresses inclusive development for vulnerable peo- ter performance on development indicators in com- ple in lagging regions. Key sectoral priorities include parison to other South Asian countries, the quality of recovery of conflict affected areas and rehabilita- water and sanitation service delivery declines rapidly tion of infrastructure, sustainable livelihoods and im- for communities in small towns and rural areas. The proved access to services, and social protection. The northern and eastern provinces of Sri Lanka have World Bank’s Country Assistance Strategy (2009-12) 85% of their population living in rural areas compared stressed the need to create opportunities for equita- to the national average of 72%. These provinces ble growth and economic development, especially have also suffered prolonged under-investment in in the lagging regions. Other objectives include ac- infrastructure due to conflict. In addition to this, they celerating economic growth and ensuring effective also fall in the dry zone, which limits their access to and accountable service delivery. natural sources of water. 74 74 The World Bank had financed the North East Hous- that come for improved access to housing. The Na- ing Reconstruction Programme (NEHRP), from 2004 tional Water Supply and Drainage Board (NWSDB), to 2011 through which houses were constructed for which is entrusted with the provision of water supply 50,000 families. The damage verification surveys con- in the country, has identified the lack of access to ducted by the Bank, revealed that the project villag- water as an urgent issue to be addressed. There has es had sustained damages to community infrastruc- also been an increasing demand from communities ture, including WSS. The lack of safe drinking water for reliable and quality water supply in the project and sanitation has limited the socio-economic gains and nearby areas. 75 Map 3 - Pilot Project Districts 5.2 PROJECT DESIGN AND Objectives It was in this background that the Sri Lanka North are responsible for operating and maintaining the East Water and Sanitation and Hygiene Project (SL- schemes under the supervision of the PS. This institu- NE WASH) was conceived with AusAID’s support. This tional model is also aligned with GoSL’s Rural Water project became operational on November 29, 2011. Policy and their goal of strengthening local govern- The project goal is to provide sustainable piped wa- ments to oversee the delivery of services. Concerted ter to a select number of conflict affected rural com- efforts were to be made to enhance the capacity of munities within the project area of NEHRP on a pilot the PS and the rural communities, ensuring a more basis. Any intervention in the north and east has to be sustainable, accountable, and efficient service de- designed taking into account the transition from a livery mechanism. conflict to a post-conflict society, where families and communities are still socially fragmented and eco- The development objective of the project is to in- nomically deprived. The sustainable development crease safe and sustainable piped water supply and of lagging regions requires community participa- sanitation to complement post-conflict housing re- tion, empowerment, and ownership. This is especially construction for select communities in two districts. true in the north and east where communities had The project would contribute to the improvement of no voice during the long period of conflict. Allowing hygiene practices and the quality of life of returnees. communities that have long been deprived of voice, It would test viable institutional models for WASH ser- a role in state- building and the opportunity to hold vice delivery and generate lessons for a possible scale service providers accountable is an important as- up. It was expected that women would benefit more pect of peace-building efforts in post-conflict areas. from access, as they bear the responsibility of collec- Northern Sri Lanka has a high proportion of female- tion and are the largest consumers of water in house- headed households and their empowerment is also holds for food preparation, maintaining a hygienic vital to sustainable poverty reduction in the region. environment, caring for the sick, cleaning, waste disposal and washing. It would also impact their per- Appropriate institutional arrangements that define sonal health and hygiene in a positive way. Mannar the accountability relationships between the state, district in the Northern Province and Trincomalee dis- service provider, and communities had to thus be in- trict in the Eastern Province were selected as the pilot corporated into the project design. It was decided zones. Among the beneficiaries of NEHRP, 12% house- that the pilot would be implemented by the NWSDB holds in Mannar district and 5% in Trincomalee district as the service provider in consultation with the local were women-headed households. It was expected governments (Pradeshiya Sabhas or PS) and the Wa- that women headed households would be among ter Users Association (WUA) that represent consum- the main beneficiaries of the pilot. ers. The WUAs are key stakeholders because they 76 The pilot has three components: 1 - Provision of Water Supply and Sanitation: Under this 2 - Capacity Building: Under the second component, component, the project is financing the capital costs technical assistance (TA) and capacity building is for water supply provision in nine sub-projects. Each provided to the NWSDB’s local units, PSs and WUAs associated WUA selects the level of service based on for the implementation of the pilot. It strengthens the affordability and technical feasibility from a range of capacity of the PS for planning for and monitoring scalable technical options. Around 3,000 households local water supply systems in partnership with WUAs. in the two districts are to be connected by the end of It helps set up WUAs and provides training to enable the pilot. The design provides for future expansion that them to take on project management responsibilities could accommodate an additional 20% of house- and O&M. Training for sanitation and hygiene aware- holds. The WUA are to be trained and made responsi- ness is another key feature of the capacity building ble for operation and maintenance (O&M) of the sys- efforts. This includes health and environment educa- tem by the NWSDB in consultation with the PS. A 50% tion for communities to improve hygiene and sanita- subsidy towards the cost of connection is offered and tion practices. the balance is recovered in monthly instalments by adding the charges to the water bills of the first year. 3 - Project Management: This component supports [ ] Tariffs would be structured to cover O&M costs for up NWSDB and PSs for effective implementation of the to 10 years. A Sanitation Incentive Fund (SIF) has been pilot. This includes creation of a Management Infor- set up that is managed and monitored by the PS. A mation System (MIS) for monitoring and evaluation 50% grant and 50% loan is available to all non-NEHRP (M&E), O&M and transfer of information. At the same beneficiaries (NEHRP beneficiaries have already been time, documentation of the pilot with a view to fu- covered) to ensure total sanitation coverage. About ture scale up will be done. The incremental operat- 900 units covering 30% of the population are to be ing costs of project administration by NWSDB are also constructed in the pilot areas. being met. Figure 11 - Progress of Construction Activities Trincomalee District 77 [ ] Highlight 5 Addressing Gender and Disability Issues The project, at every stage from design to implementation, is taking into consideration gender and social inclusion by focusing not only on lagging regions of Sri Lanka but also on the most vulnerable minority groups within these areas. Women interviewed in the project area revealed that they spent an average of 3 to 4 hours a day fetching water. Having reliable and easily accessible piped water would drastically reduce the amount of time dedicated to collecting water. The time freed up can be then allo- cated to more productive activities. This is a critical aspect in the post-conflict areas of the North and East that have a substantial incidence of women-headed households. Women-headed households comprise arguably the most vulnerable group of re- turnees and are among the priority groups targeted by development schemes. A survey conducted in September 2010 by the Jaffna based NGO Center for Wom- en and Development* revealed that the post-conflict northern region had approxi- mately 40,000 female-headed households. Over 50 percent of the women heads of the households surveyed were single parents under 30 years of age supporting their own and extended families. Although up to date statistics are hard to come by due to the number of displaced people, NGOs and government officials estimate that the northern and eastern regions combined are home to some 89,000 war widows, a very high number considering that the conflict displaced more than 280,000 people. As the main users of water in households and initiators of change in hygiene practices, the central role of women in WASH is fundamental for the success of the project. Wom- en hold at least one of the three key positions (Chairperson, Secretary or Treasurer) in the WUA and at least 50% of the executive committee is female. To better monitor and evaluate the gender related benefits of the project, gender disaggregated data is be- ing collected. At the initial stage of the project, a baseline survey was done and it indi- cated that at least 15% of the households in the project area were headed by women. Addressing disability issues is equally important for the social inclusion agenda. In a post- conflict situation there will be larger proportion of disabled people within households whose needs will need to be taken into account. Poverty and disability are intrinsically linked. People with disabilities are more likely to be poor, and this not only increases their social and economic vulnerability, it also limits their access to basic services. Traditional water supply, sanitation and hygiene schemes have marginalized the needs of different- ly-abled people. Policies to address these needs are also lacking. As a result, disabled people face many challenges as they attempt to access WASH services, which have severe health and economic consequences and also impacts their dignity and ability to be self-reliant. The participation of disabled people is necessary for the success of the project. Data has been collected on the number of disabled people in the project com- munities in order to design WSS schemes that address their specific needs. The baseline survey found that 5.5% of all households in the project area included disabled residents. The design of the project has ensured that women headed house-holds form 15% and households with disabled members form 5.4% of the targeted beneficiaries. See Table 3. . *Source: http://www.irinnews.org/report.aspx?ReportID=90429 5.3 Results TO DATE It should be kept in mind that this project is being the lack of contractors in the region and issues with implemented in some of the most vulnerable villages finding a good water source for some sub-projects. in the region in a challenging post-conflict environ- Flooding in the project areas also delayed construc- ment. Aided by strong community mobilization and tion for some time. There has been some escalation participation, the project is on target to meet all its in costs due to several reasons, including difficulties objectives by the closing date of June 2014. Active in finding contractors in some sub-project areas; an participation of the community is fundamental to increase in the cost of fuel and materials; demand- achieving sustainable outcomes from this interven- pull inflation due to the end of conflict and a con- tion. In the 16 months since the project became op- struction boom. Inadequate electric supply in the erational there has been satisfactory progress on all project areas necessitated payments to the Central three components. The safeguards, financial man- Electricity Board for transformers. The government agement, and procurement aspects were rated sat- has agreed to meet the costs of any escalation. This isfactory by the mid-term review (MTR) conducted reflects their commitment to the project and to pro- in December 2012. There was an initial delay in start- viding better services for the underserved in these ing the construction of water supply schemes due to lagging provinces. Provision of Water and Sanitation All 9 water supply sub-projects, covering 16 villages, 10 in Mannar and 6 in Trincomalee district, have been contracted out and are under construction. The sub-projects were reduced from 12 to 9 since one commu- nity did not have a water source that could be easily accessed, another joined an ADB funded program, and yet another opted out. The sub-projects will provide access to 2,303 households. However, given the continuing migration into the area, which is expected to accelerate as water supply improves, the scheme also has built-in extra capacity. Looking at the population growth rate and new resettlement in the region, it is expected that the schemes will in the final analysis cover 4,488 households. This is a 50% increase over the figure of 3,000 set out in the Concept Note. The project is also providing toilets in the sub-project areas to households and to local schools. The Sanitation Revolving Fund is disbursing well. The amount of grant and loan per household has been in- creased from Rs 12,000 to Rs 18,000 after extensive consultations with beneficiaries as the original amount was found to be inadequate to build a quality toilet. The $90,000 in the fund has been topped up by another $19, 166 from the government to meet the additional costs. Two villages that were dropped from the water supply schemes were included in the sanitation program, as they were a part of the initial social mobilization and their expectations for assistance had already been raised. A baseline survey has been conducted to identify the potential beneficiaries. Water User Associations are registered in all subproject areas and they all have accounts opened in commercial banks to allow for the transfer of sanitation grants to WUAs. Out of the 2,809 households covered under the sanitation program, 14.7% are female-headed households and 5.4% have disabled members. The sanitation program also covers 27 sanitation facilities in 11 schools in the scheme area that are being constructed by the School Development Society. 80 Table 3 - SL-NE-WASH Beneficiaries and Social Vulnerability Table 1: SL NE WASH – Beneficiaries and Social Vulnerability HH WITH DISABLED NAME OF SUB PROJECT NO. OF HOUSEHOLDS FEMALE HEADED HH MEMBERS 1   BAKMEEGAMA*   262   45   25   2   KILLIVEDDY   209   71   20   3   MAHADIVULWEWA   264   63   20   4   NAVATCHOLAI   281   40   7   5   NEELAPOLA*   244   30   13   6   NAMALWATTE   210   21   3   TOTAL  (A)   1,470   270   88   1   KONDACHCHI   333   20   9   2   KOOLANKULAM   257   0   10   3     175   32   10   4   PALAMPIDDY   267   30   29   5   THALAIMANNAR   307   60   7   TOTAL  (B)   1,339   142   65   TOTAL  FOR  2  DISTRICTS  (A+B)   2,809   412   153   %  OF  TOTAL  HH   100%   14.70%   5.40%   *excluded from water supply schemes * excluded from water supply schemes Technical Assistance and Capacity Building The capacity constraints of PSs and communities have been identified and steps are being taken to strengthen capacity at all levels. The lack of capacity within the communities is being addressed through the creation of specialized WUAs that work closely with the community and provide guidance for operation and mainte- nance of the water supply schemes. Eleven Water Users Associations have been formed and registered with the NWSDB in all sub-project areas including two that are only for sanitation. Over 83% of the households to be covered have already paid for membership of their WUA. This is an impressive result, demonstrating the huge demand for safe water. This number is expected to increase, as more families learn about the social, economic and health benefits of safe drinking water at their doorstep and with growth in population over time. 81 Hygiene, education, and awareness programs are at the heart of the success of any water and sanitation project. This aspect is however, often ignored in projects with more attention being paid to the construction of the hard infrastructure. The project has undertaken an intensive hygiene promotion program to educate communities on the socio-economic costs of lack of sanitation and benefits of good hygiene and improved sanitation. Many innovative learning materials have been prepared. Schools in particular, are being targeted to enhance their hygiene education programs. Families have reported that these programs are very useful for them and for their children. The program includes orientation, preparing an action plan to address hy- giene issues, programs for hygiene promotion and education, posters and materials for hygiene awareness, and discussions/education at community and school levels. The innovative training methods used include street plays for the community and arts competitions in schools. Until January 2013, a total of 39 trainings were organized. A total of 2,300 students (of which 50% are girls) attended 13 hygiene education programs in both districts (6 in Trincomalee and 7 Mannar). Art competitions were also held in 5 schools. The training at school level covered different grade levels, from 3-5, 6-8, and 9-11 grades. At the community level training programs covered 890 people (55% female). There were 12 community awareness programs and training conducted, 6 in each district. In addition, a Training of Trainers (ToT) program for the PS staff and CBOs, and a street play on the importance of sanitation and hygiene were organized. Finally, 7 general training programs covering orien- tation for partners and social mobilization were conducted. These awareness programs will continue to provide a lasting impact resulting in better sanitation and health. See Table 4 for details of the 39 training programs. Project Managament Under this component, two Rural Water Supply (RWS) offices have been set up in the two project districts by NWDSB. These will be permanent offices that will continue to help communities after the pilot is over. Ad- equate staffing has been provided and these units are functional. In order to monitor and evaluate progress against indicators, a Management Information System (MIS) has been created and all progress reports are being generated from this. The progress of water supply schemes and construction of sanitation facilities and all aspects of hygiene awareness and education programs are being captured in the MIS. A results frame- work was also developed for the project at the concept stage. See Annex 5 - A Results Framework in the An- nex section of the report. The baseline survey has been completed. The PMU is now working to include water quality data and to strengthen the documentation process as recommended by the MTR. The project is closely monitored by the Bank. The Bank is supervising the project through desk reviews of prog- ress reports that are sent by the government every two months. In addition, the World Bank team conducts field visits every six months and continues to work closely with the PMU. Two missions, including an MTR, have already taken place and the next mission is planned for May, 2013. 82 Table 4 - SL-NE-WASH Hygiene, Education, and Awareness Programs TARGET TOTAL % OF PEOPLE TRAINED TYPE OF TRAINING AUDIENCE TRAININGS GIRLS/WOMEN  HYGIENE EDUCATION (13) -­‐ 3-5 GRADES SCHOOL 18 2,300 50% -­‐ 6-8 GRADES -­‐ 9-11 GRADES  ART COMPETITIONS (5)  AWARENESS PROGRAMS (12) COMMUNITY 13 890 55%  STREET PLAY (1)  STAFF ORIENTATION (1) GENERAL 8 70 16%  SOCIAL MOBILIZATION OF PARTNERS (7) TOTAL 39 3,260 83 FIGURE 12 - SL-NE-WASH HYGIENE, EDUCATION AND AWARENESS PROGRAM 5.4 Financial Summary 5.4.1 - Allocations The entire grant amount of $2.01 million that was to be received by government has already been trans- ferred to GoSL. Allocations have been made against this for construction of the water supply schemes (WS), sanitation incentive grants (SIGs), training (TRG), and incremental operating costs (OC). See Figure 13 for the percentage allocated to each activity. The SIGs are over budget by $19,161. This shortfall is being met by the government as explained above. 1.5% TRGs 4.5% SIGs 4.5% OCs 89.6% WS Figure 13 - Allocations by Activities 5.4.2 - Disbursements and Commitments This is a recipient executed project and every two months the Bank task team receives a progress update from GoSL. As per the last report in January 2013, 24% of the funds have been disbursed. Table 5 provides details by component. Only 1% of the funds remain uncommitted with more than a year remaining for the project to close. All 9 water supply contracts have been awarded and disbursement is expected to acceler- ate during the next few months as construction picks up. 84 Table 2- SL-NE WASH Funds Disbursed and Committed (USD) as of January 2013 Table 5 - Funds Disbursed and Committed (USD) as of January 2013 *excess amount met by govern DISBURSEMENT COMMITMENT ALLOCATION BALANCE AMOUNT % AMOUNT % 1   WATER  SUPPLY  SCHEMES   1,800,000   297,691   16.5   1,502,309   83.5   0   SANITATION  INCENTIVE   2   90,000   109,161*   121.3   0   0   0   GRANTS   3   TRAINING   30,000   26,313   87.7   0   0   3,687   INCREMENTAL  OPERATING   4   90,000   55,070   61.2   0   0   34,930   COSTS   TOTAL   2,010,000   488,235   24.3   1,502,309   74.7   38,617   *excess amount met by government 1 5.5 PARTNERSHIP WITH AUSAID AusAID as the sole funder of the pilot has participat- informed GoSL that this scale up will not take place ed in all phases of the project, from concept design as originally anticipated due to funding constraints. to the ongoing implementation. Staff from the Co- Given the positive results achieved by the pilot in lombo Post also participated in the recent MTR of the providing access to WASH facilities in post-conflict project. In addition, the Task Team Leader has con- communities within a short time frame, the extent of ducted face-to-face briefings for the staff at the Co- community participation generated it is important to lombo Post to report on progress after every mission. scale up the project without losing the momentum In addition, AusAID has leveraged the Bank’s resourc- that has already generated in these post conflict es, including the expertise of its staff and its long-term communities. The Bank is currently in discussions with relationship with GoSL in the water supply and sani- the government regarding a potential WSS project in tation sector, at little cost. It has also leveraged the Sri Lanka. The partnership between AusAID and the Bank’s NEHRP that provided houses to communities, World Bank for the Sri Lanka North East WASH pilot will which are now benefitting from access to WSS ser- lead to sustainable improvements in the quality of life vices through this project. Initially, the pilot was to be of some of Sri Lanka’s most vulnerable populations. scaled up with additional funds in 2013. AusAID has 85 6 North East Local Services Improvement Project 6.1 THE Case for Local Services Improvement In North East Sri Lanka The northern and eastern provinces of Sri Lanka these regions would continue to lag behind the rest constitute a lagging region of the country that has of the country in terms of poverty, income, educa- experienced armed conflict for nearly three de- tion, and other MDG indicators. Years of civil conflict cades. Though the economy has continued to grow and natural disasters have traumatized populations, even during conflict, growth remains skewed with resulting in a lack of trust in many communities. Provi- more than 50% of the country’s GDP coming from sion of basic local infrastructure and services along the Western Province, which includes the Colombo with avenues for voice and participation and hold- area. Per capita incomes in the north and east are ing local governments accountable for service de- 50% less than in the Western Province. The decades livery, can help the healing process and build confi- of fighting have negatively impacted growth in the dence in the local state. region and the country at large. The armed conflict in the Eastern Province ended in July 2007 and in the Local governments are best placed to deliver basic Northern Province in May 2009, bringing to an end services according to community priorities. The Lo- 26 years of armed conflict. During this period, start- cal Authorities (LA) comprise the middle and lower ing in the early 1980s, people in the North and East tiers of government in Sri Lanka. The 13th Amend- have been repeatedly displaced and their houses, ment of the Constitution created a sub-national sys- public facilities, and basic infrastructure damaged tem with Provincial Councils (PCs) at the provincial or destroyed. There is a considerable, conflict in- level and below them, the Pradeshiya Sabhas (PSs) duced backlog of local infrastructure and services in in rural areas, and Urban Councils (UCs) and Munici- the Northern and Eastern provinces. Rural roads that pal Councils (MCs) in urban areas. These institutions provide connectivity, and village level infrastructure, together constitute “Local Authorities.” The LAs as such as drainage systems, primary health clinics, elected bodies mandated to deliver services, could schools and markets, were all severely damaged play a vital role in participatory planning, prioritiza- during the conflict. Most urban, peri-urban, and ru- tion, execution and maintenance of local facilities ral drinking water schemes were in disrepair and and services. LAs in the North-East however face needed to be reconstructed. Essential local services, several impediments in delivering services. These in- such as street lighting and solid waste management, clude lack of administrative and technical capac- were either not available or were insufficient in many ity, inadequate resources, and poor responsiveness locations in this region. to citizen’s needs and priorities. Central government transfers, the main source of funding, are insufficient The major challenge after initial resettlement of the and often unpredictable. The central government displaced families was to restore and sustain the vi- makes two types of grants, through the PCs to the tal economic infrastructure and services needed for LAs Criteria-Based Grants (which are allocated on communities to ensure their livelihood. The destruc- the basis of a formula encompassing population, tion of property and basic infrastructure had severely level of poverty, and other socio-economic indica- undermined the capacity of people to rebuild their tors) and Province-Specific Development Grants. lives and develop their local economies. Without restoration and development of local infrastructure, 88 Actual transfers are often lower than agreed allo- higher tiers of the state and the local community cations due to cash flow problems, revenue short need to be enforced through institutionalizing partic- falls or other problems affecting national finances. ipatory approaches for the planning and manage- This hampers effective planning and implementa- ment of local development. Increased fund flows tion of local infrastructure investments. LAs are the designed to enhance the role of local government front line of service delivery at the local level. Due to also need to be accompanied by improvements in their closeness to citizens, they offer opportunities for operational systems, management procedures and community participation in local decision-making. accountability mechanisms for local government to However, participation and dialogue with communi- deliver results. ties needs to be institutionalized and strengthened to enhance accountability and responsiveness. The GoSL strategy in the north-east region stresses re- lief, resettlement and rehabilitation, along with the Lessons learned from post conflict regions in Asia and restoration and development of livelihoods and re- Africa indicate the importance of rebuilding the lo- construction of basic infrastructure. It also focuses on cal state from bottom up through community par- the restoration of services and establishment of ef- ticipation and ownership, and providing basic local fective administration and service delivery arrange- level infrastructure facilities. Extensive information ments. AusAID and World Bank strategies also stress and communication to inform citizens about proj- the need for reconstruction and improvement of ect design, work plans, and a grievance redressal services in the region. After the initial humanitarian mechanism are necessary ingredients for successful activities are over and once the displaced people implementation of projects. Experience from local return to their villages, it was important to quickly im- government operations in South Asia and elsewhere prove local infrastructure and services in the north attest to the positive impacts of improved resource and the east and to restore confidence in local gov- allocation at the local level, along with enhanced ernments by allowing communities to participate accountability in planning and expenditure man- and hold their LA accountable. It was in this back- agement based on community needs and priorities. ground that the World Bank designed the North East These aspects are inter-related. To hold local govern- Local Services Improvement Project (NELSIP). The ments accountable, it is important that these agen- project which became effective from December 15, cies have the resources to deliver services in a trans- 2010 will be operational until December 2015. parent and accountable manner. The upward and downward accountability relationships between the 89 6.2 PROJECT DESIGN AND Objectives NELSIP, which was designed and prepared in the af- erment of the different communities in the Northern termath of the conflict in the north-east, addresses and Eastern Provinces. Strengthening local govern- many of the issues noted above. The primary objec- ment institutions and the ability of LAs to respond to tive of the project is to improve the delivery of lo- local needs will help advance a durable solution to cal infrastructure services by local authorities in the the concerns of citizens in the North-East region. The Northern and Eastern Provinces of Sri Lanka in an ac- basic components of the project address the infra- countable and responsive manner. It provides much structure gap through additional resources for ser- needed support for local infrastructure services, such vice delivery, along with accountability measures to as rural roads, drinking water supply, drainage and ensure resources are expended in a transparent and waste disposal that are provided and maintained by accountable manner. They also build the capac- LAs in the Northern and Eastern provinces. By build- ity of local governments to deliver services and of ing the legitimacy and capacity of the local state, it higher tier agencies and communities to hold them also addresses the causes and consequences of the accountable. The three components are expanded conflict in Sri Lanka. Besides targeting development, upon below. NELSIP also addresses issues of voice and empow- Infrastructure Service Delivery This component funds the reconstruction of infrastructure and services by providing resources to improve local service delivery in a transparent and predictable manner within the context of a sound inter-govern- mental fiscal framework. It provides predictable and transparent capital grants to the LAs through the coun- try’s budget system in accordance with the GOSL’s guidelines for participatory planning. The use of country systems to deliver aid is an integral part of the global aid effectiveness agenda. These grants cover infrastruc- ture and services such as rural roads, drains, culverts and bridges, community buildings, markets and fairs, waste disposal, rural water supply, parks, recreation facilities and libraries, nursery schools, playgrounds, and dispensaries. The funds can also be used to improve local government utility services. Institutionalizing Accountabilities This component ensures that LAs undertake public expenditures and deliver local services in a transparent and accountable manner. It strengthens upward and downward accountability systems at the local level. Activities under this component include improving accountabilities by instituting sub committees, standing committees and advisory committees to enable participation and oversight by stakeholders. It also includes an education and communication campaign to disseminate project information to various stakeholders. Preparation of participatory LA Development Plans that prioritize community development needs are an- other feature. Building Capacities This component strengthens the service delivery systems and capacities of LAs to deliver services. It also strengthens the monitoring capacities of provincial and national level institutions. It supports improvements in systems and processes related to planning, budgeting, financial management, revenue management and procurement at the LA level. It strengthens the audit of funds by improving the efficiency, timeliness and follow up of the internal and external audits of LAs. The funds under this component support the training of elected representatives and staff of LAs on financial management, procurement and project management. 90 Better and more effective technical support to LAs provided by the district local government staff is also funded. Another important feature is the development of a long-term capacity building strategy for LAs including the Organizational Development Unit (ODU) of local government departments. The project covers all the Local Authorities in the Northern and Eastern Provinces of Sri Lanka. The 79 LAs include 66 Pradeshiya Sabhas, out of which 28 are located in the 5 districts of the Northern Province and 38 in the 3 districts of the Eastern Province. In addition, it covers 9 Urban Councils – 5 in the North and 4 in the East and 4 Municipal Councils namely Jaffna, Kalmunai, and the newly created Akkaraipattu and Batticaloa. NELSIP will result in an increase in the quantity and quality of public goods delivered and maintained by Local Authorities. Improved infrastructure connectivity will enable post-conflict communities in the north-east to benefit from enhanced access to social services and economic opportunities. The capacity of Local Authorities to deliver services will also be strengthened. Through these steps the project will help reduce poverty in the project implementation areas. Table 6 - NELSIP Coverage of Local Authorities in the Northern and Eastern Provinces URBAN PRADESHIYA MUNICIPAL PROVINCE DISTRICT TOTAL COUNCIL SABHA COUNCIL JAFFNA   3   13   1   17   KILINOCHCHI   -­‐   3   -­‐   3   NORTHERN   PROVINCE   MULLAITIVU   -­‐   4   -­‐   4   VAVUNIYA   1   4   -­‐   5   MANNAR   1   4   -­‐   5   SUB  TOTAL   5   28   1   34   TRINCOMALEE   2   11   -­‐   13   EASTERN   PROVINCE   BATTICALOA   1   10   1   12   AMPARA   1   17   2   20   SUB  TOTAL   4   38   3   45   TOTAL   99   66   4   79   91 6.3 co-financing by AusAID AusAID is co-financing the project to the tune of AUD The higher-level outcomes from this partnership and 24.86 million. Co-financing provides AusAID with the project are expected to be a reduction in poverty, opportunity to support the development of a lag- improved health and well-being, new economic ging post conflict region and of the vulnerable com- opportunities, and more efficient and effective de- munities within this region. It will also help deepen livery of infrastructure and services. The project can the engagement with the Bank at the country level. also be replicated and scaled up to other lagging Greater engagement with multilateral partners is a regions of the country, and GoSL has expressed inter- key recommendation of the Government of Austra- est in expanding the project to other provinces. lia’s Independent Aid Effectiveness Review, 2011. It also enables AusAID to leverage the Bank’s resourc- AusAID was to initially co-finance the project to the es, both financial and non-financial including the tune of AUD 37.77 million. These funds were to be de- expertise of its staff, relationship with the client, and livered in three tranches, of which the first tranche of Bank processes and systems, and thus minimize ad- AUD 9.47 million was received in June 2011. However ministrative costs. there has been considerable delay in the signing of the Grant Agreement (GA) by GoSL. Both the Bank NELSIP covers the entire Northern and Eastern Prov- and AusAID have been actively following up with inces of Sri Lanka, including the 79 Local Authorities government on this. The government wanted the in these two provinces. The fund requirement of a project to be restructured after the Mid-Term Review LA is between LKR 200 to 600 million of which, only a (MTR). The MTR mission originally scheduled for De- small portion is covered by government transfers. The cember 2012 was finally approved by GoSL for March Bank’s funding of NELSIP provides a total of approxi- 2013. It has since taken place and AusAID staff from mately LKR 80 million over four years. AusAID funds the Colombo Post participated in the MTR. On the ba- will support the overall development objectives sis of the MTR and subsequent discussions with GoSL, of NELSIP and all the three components discussed steps are underway restructure the project to include above. The co-financing by AusAID enables some of areas in adjoining provinces that were also impacted this funding gap to be bridged It will enable the proj- by the conflict in the north-east. Due to the delay in ect to be scaled up and will help increase the size of signing the GA, the second tranche has been with- fiscal transfers to LAs. Along with increased capacity held by AusAID. The co-financing has thus been re- building it will lead to more and better service deliv- duced to AUD 24.86 million and will be limited to two ery by LAs. It will also improve local accountability tranches. The second tranche is now to be transferred both upward to Provincial Councils and downward in 2014. Government has agreed to sign the GA for to the community. the reduced amount. The GA is now expected to be signed after the restructuring takes place. 92 6.4 RESULTS TO DATE TThe mid-term review of the project has taken projects in the Northern Province. A key positive out- place from March 12 to 25, 2013. All three compo- come noted is the high level of satisfaction among nents received a satisfactory rating though areas of communities with regard to their LAs. Table 7 Results weakness in monitoring and evaluation and project Framework and Monitoring shows high satisfaction management were noted. Though cumulative dis- among citizens with regard to LA performance. The bursement to date is 74% there has been delay in targets for participation have been exceeded at the project approval and implementation in the North- midpoint in the project lifecycle. The preparation of ern Province which does not have an elected Pro- annual financial statements within 3 months of clo- vincial Council, this has resulted in the project imple- sure and acceptable audits of LA accounts are both mentation being noted as moderately satisfactory. outcome indicators that have been exceeded at Action is being taken to improve the approval of the time of the MTR. Table 7 - NELSIP Results Framework and Monitoring MTR March 2013 TOTAL MTR PROJECT OUTCOME INDICATORS MTR ACHIEVEMENT TARGET TARGET Rural and village roads (km) 1,000 618 303 Drainage systems (km) 245 32 16 Rural water supply schemes 439 6 2 Playgrounds, markets and nurseries 405 112 21 Rural electrification 79 16 16 % capita grants released against allocations (IDA) 70 90 70 Rising satisfaction of local people on LAs (%) 80 60 87 LAs preparing annual financial statements within 3 60 40 75 months of closure Acceptable financial audits of accounts 60 40 75 LAs with budgets prepared in a participatory manner 60 40 45 LAs whose revenues, expenditures and procurement 40 15 79 decisions are publically disclosed   93 In little over two years, the project has shown that government and by the communities they serve. The when local authorities are provided with resources capacity of local governments to deliver basic ser- and held accountable by the communities they vices is no longer in doubt, and a positive practice serve, they can provide quality service in an account- of constructive interaction between citizens and LAs able manner. NELSIP has empowered both local gov- to prioritize community needs has emerged. This is no ernments and citizens. Elected local governments are mean achievement in a post conflict environment, increasingly seen as an integral element of the local particularly in this short a period. service delivery framework by both the upper tiers of 94 COMMUNITY CONTRIBUTION, KULANAI ROAD, KARAVEDDI KILINOCHCHI GEMUNUPURA WATER SUPPLY Market stall, mallavi MARKET COMPLEX, MUTHUR seruwila market aarayampathy children park uyilankulam water supply electricity extension, pottuvil MAP 4 - INFRASTRUCTURE SERVICE DELIVERY BY THE PROJECT 95