Bank Netherlands Water Partnership Water Supply & Sanitation Windows Progress Report First Quarter, 2002 January 1 to March 31, 2002 Bank-Netherlands Water Partnership -Water Supply and Sanitation Windows www.worldbank.org/watsan/bnwp 1818 H street NW, Washington DC 20433 USA · Bnwp@worldbank.org · tel. 1-202-4587796 Bank Netherlands Water Partnership Water Supply and Sanitation Windows Comprehensive Quarterly Progress Report First quarter, 2002 1. The Bank-Netherlands Water Partnership ­ Water Supply and Sanitation Windows The mission of the Bank-Netherlands Water Partnership (BNWP) is to improve delivery of water supply and sanitation services to the poor. The partnership enhances performance of World Bank operations in the water supply and sanitation sector and supports a broad sector reform agenda with a strong poverty focus. BNWP activities centre on providing support to solve immediate problems with actual cases, testing policy and service delivery innovations, and plugging gaps in existing knowledge in the water sector as a whole. The BNWP is managed as a cohesive program based on good quality projects and activities, and is complementary to other sources of funding. BNWP projects are targeted interventions that support implementation of structural changes. A typical project fosters South-South collaboration and includes pilots in the field. All project proposals are quality-assured through peer review by reviewers chosen from within and outside the World Bank. More details on the work done by BNWP are available at www.worldbank.org/watsan/bnwp or by writing to bnwp@worldbank.org. 2. The quarterly progress report 2.1 Purpose This Quarterly Progress Report outlines the progress in work of the Water Supply and Sanitation Windows of the Bank Netherlands Water Partnership during the first quarter of 2002 (1 January 2001 ­ 31 March 2002). The purpose of the Quarterly Progress Report is to: · report outputs and activities of the various BNWP projects and activities · report expenditure that allows comparison with outputs · facilitate identification of links and common interests between various projects of BNWP · increase transparency of BNWP operations. 2.2 Structure of the Quarterly Progress Report The Quarterly Progress Report is organised with a main text with an annex giving the detailed progress reports for each project and activity. 3. Key developments in quarter BNWP activities in the first quarter of 2002 focused on the development of a number of prequalified flagship projects, while various smaller activities started implementation. 2 3.1 New projects and activities In October 2001 the Steering Committee of the Bank Netherlands Water Partnership assessed 25 project proposals that were submitted to the new program. Fourteen projects prequalified after a selection based on a set of general selection criteria. Task managers of pre-qualified projects were requested to develop a full project proposal. Nine full project proposals have been submitted at the end of the first quarter: S Community water supply management models for low income urban areas (001) S Follow up support to communities after construction of rural WSS facilities (007) S Public private partnership to promote handwashing with soap (008) S Trends in the Desalination Market in the Middle East and Central Asia (012) S State of the art hygiene and sanitation promotion component design of large scale RWSS programs (020) S Development of decision support model for PSP in the municipal WSS sector (032) S Modes of engagement with public sector WSS in developing countries (033) S Town Water Supply and Sanitation Initiative (043) S Beyond capital subsidies: financial alternatives for achieving rural universal coverage targets (047) The above project proposals were sent to peer reviewers for quality insurance; most peer reviews were in at the end of the quarter. Some projects need to be revised based on the advice of the peer reviewers. All the above projects are expected to start in the second quarter of 2002. A number of prequalified projects are still under development. These project are expected to start operations in the second half of 2002. S Pro-poor transaction design; Upstream work for private sector participation and reform (#005) S PPP in urban WSS: building capacity for civil society engagement (#006) S Small scale independent provides for water and other urban services (#011) S Enhancing the empowerment of poor women and men within communities (#017) Three new activities were started up: S Consultation workshop with African water operators in Dakar (#015); A roadmap on how to improve capacity of water ministries in implementing sector reform is developed during a three day high-level seminar of African water policy decision makers. S Scaling up sustainable rural water supply services (#026); The necessary supporting environment for successful scaling up of sustainable rural water supply services, such as demand response approaches, are characterized. S Toolkit for Rural Water and Sanitation Components in Multi-Sector Projects (#042); The toolkit will provide task teams with guidelines and tools for designing, implementing, and monitoring & evaluating RWS components in multi-sectoral projects. 3.2 Closed projects and activities No projects and activities were finalised in this quarter. 3.3 Events The purpose of the three-day Decision Makers Workshop on PSP in Water Sector (February 13 to 15, 2002) in Dakar was to take stock of the lessons emerging from our of the evolving pattern of PSP transactions, and to outline ways to tackle recurring issues. The workshop brought together 3 forty five decision makers engaged in water and sanitation services from seventeen African countries as well as twenty senior staff and representatives of multilateral and bilateral development agencies. Representatives from international private operators joined the workshop on the last day. 3.4 Program management The first quarter of 2002 was the first quarter that BNWP-WSS was operational. The first trench of funding arrived at the World Bank on 14th December 2001 from the Netherlands Ministry of Foreign Affairs. This implied that considerable time was put into design and operationalizing the program management structure during the first quarter of 2002: S The Program Manager (Jan Janssens) officially started working on the program, although he had spent considerable time on preparing for a quick launch in the second half of 2001. Meike van Ginneken joint the Bank in the last days of December 2001 to work as a Water and Sanitation Specialist for BNWP-WSS. Together with Marie-Claude Haxaire (resource management analyst) they form the BNWP coordination team. S A set of Guidelines for development and implementation of projects and activities were drafted and distributed to Task Managers and others involved in BNWP-WSS S A brochure and a leaflet were drafted, and will be published in the April 2002. Also a first version of a website was developed. S A tracking system was developed to follow up on the progress of projects and activities, as well as to file key documents and correspondence. 4. Overview of present portfolio The total value of the present portfolio and pipeline of projects is USD 6,353,000. This budget includes the activities that are approved by the chair of the Sector Board, and approved and prequalified projects. The planned disbursement per quarter is presented in figure 2. Figure 1: Planned disbursement per quarter 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 02-I 02-II 02-III 02-IV 03-I 03-II 03-III 03-IV 04-I 04-II 04-III 04-IV 05-I 05-II 05-III planned disbursement [USD] actual disbursement [USD] 4 The focus of the total portfolio (approved plus prequalified) is summarized in figure 2. There is a reasonable spread across regions and deliverables. An extra effort will be made to balance the portfolio per window, and to increase the number of projects on financing systems and sanitation and hygiene. Figure 2: Break up of portfolio in windows, regions, and deliverables Global advice on approaches Rural WSS Africa policy awareness and East Asia & Pacific Urban WSS dialogue Europe & Central Asia Financing systems synthesised knowledge & info Latin America & Carribean Sanitation & hygiene research & development Mediterranean & N. Africa Capacity building cap. building & training South Asia 5. Financial and progress report Table 1 gives a specification of accumulated progress as well as expenditure per window. The total expenditure between January 1 and March 31, 2002 was USD 292,940. This is 180% of the planned budget for the first quarter of 2002. The high expenditure can be easily explained because the cost for the Water and Sanitation expert had to be paid up front for two years for administrative reasons. The outputs achieved in the first quarter amount to 97% of the targets set for the quarter. This number represents a weighted average of the individual project achievements, as specified in the annex. The first quarter of 2002 was the start-up of the BNWP-WSS program. Only a limited portfolio was implemented, but the implemented activities performed on target. 5 Table 1: Outputs and expenditure first quarter 2001 (USD) Window Performance Quarterly Expenditure (% of target) Budget USD % of budget WSS in rural areas and small towns 94% 32,500 6,545 20% Reform of urban WSS 100% 17,500 6,732 38% Dev. of sustainable financing systems N/A 0 0 - Sanitation and hygiene promotion N/A 0 0 - Capacity building 100% 12,500 4,987 40% Program coordination N/A 100,000 274,676 275% Grand total 97% 162,500 292,940 180% Indicates that % of spent budget > % of reached target 6. Plans for next quarter The main goal for the second quarter of 2002 is to develop and approve all prequalified project proposals, and to start on implementation of a number of projects and new activities. Also in the second quarter the managerial start-up of the program will be completed, including finalized trustfund structure and implementation guidelines, and finalized brochures and website. 6 Annex: Overview per project or activity # Title Short Description Approved Windows Current Status Project Period Quarterly Budget (USD) Performance 001 Community water supply management Supporting the development of tools and design 150,000 Urban WSS Under development 15 months N/A models for low income urban areas alternative management arrangements for effective community management of low income urban water supply systems. 005 Pro-poor transaction design; Upstream Ensuring that urban water sector reforms involving 780,000 Urban WSS Under development 18 months N/A work for private sector participation the private sector are more effective at increasing and reform access and service quality for poor consumers. 006 PPP in urban WSS: building capacity Addressing the role of civil society in public private 150,000 Urban WSS Under development 21 months N/A for civil society engagement partnership transactions and build capacity of key Capacity building civil society groups, and policy makers to engage positively in the reform process. 007 Follow up support to communities after Identifying the types of follow-up support to 180,000 Rural WSS Under development 18 months N/A construction of rural WSS facilities communities after the construction of rural water and sanitation Facilities that are needed to enable sustainability 008 Public private partnership to promote Promoting partnership between the soap industry, 850,000 Hygiene & Under development 18 months N/A handwashing with soap public agencies and NGOs to provide soap and sanitation promote handwashing with soap to decrease diarrhoeal diseases 011 Small scale independent provides for Enhancing the global understanding of ssips and 420,000 Rural WSS Under development 36 months N/A water and other urban services their importance in the water supply and sanitation Urban WSS sector, and the impact of the policy and business environments in which they operate 012 Trends in the Desalination Market in Improving the understanding among Bank staff and 350,000 Urban WSS Under development 15 months N/A the Middle East and Central Asia clients in the Middle East and Central Asia of recent developments in the desalination industry 015 Consultation workshop with African Organizing a three day high-level seminar of 50,000 Urban WSS Operational Feb 02- Jun 02 100% water operators in Dakar African water policy decision makers to develop a roadmap on how to improve capacity of water ministries in implementing sector reform. 017 Enhancing the empowerment of poor Assessing the extent of empowerment being 147,000 Rural WSS Under development 18 months N/A women and men within communities effected, specifically for poor women and men within user communities, as a result of water and sanitation interventions. 020 State of the art hygiene and sanitation Supporting the implementation of effective 530,000 Rural WSS Under development 18 months N/A promotion component design of large instruments for improving hygiene and sanitation Hygiene & scale RWSS programs behaviours in rural communities in the context of Sanitation large-scale rural water supply and sanitation projects. 026 Scaling up sustainable rural water Characterizing the necessary supporting 50,000 Rural WSS Operational Feb 02 ­Jul 02 80% supply services environment for successful scaling up of sustainable rural water supply services, such as demand response approaches. 7 # Title Short Description Approved Windows Current Status Project Period Quarterly Budget (USD) Performance 028 Understanding the Infrastructure Improving our understanding of infrastructure 375,000 Financing Under development 18 months N/A Environment of Small and Medium shortages faced by small and medium enterprises systems Firms in transitional and developing economies, the impact of such shortages on firm productivity and competitiveness, and the firms' coping mechanisms. 032 Development of decision support Developing a modelling framework that links utility 325,000 Urban WSS Under development 16 months N/A model for PSP in the municipal WSS pricing and investment decisions with water sector resources allocation. 033 Modes of engagement with public Developing better performing public sector water 628,000 Urban WSS Under development 30 months N/A sector WSS in developing countries utilities in developing countries.- identifying, Capacity building categorizing and analysing various international models for public sector water service provision 042 Toolkit for Rural Water and Sanitation Providing task teams with guidelines and tools for 50,000 Rural WSS Operational Mar 02 ­Sep02 120% Components in Multi-Sector Projects designing, implementing, and monitoring & evaluating RWS components in multi-sectoral projects. 043 Town Water Supply and Sanitation Building appropriate models for service provision 1,030,000 Rural WSS Under development 18 months N/A Initiative for town water supplies, by identifying, assessing Urban WSS and market testing professional support options for town water supply, and by investigating ways to aggregate towns. 047 Beyond capital subsidies: financial Documenting the sustainability and scalability of 400,000 Rural WSS Under development 14 months N/A alternatives for achieving rural government capital subsidies in the rural water Financing universal coverage targets sector; and financial alternatives such as use of systems non-public funds, private participation, inflow of donor funds. 8