Global Water Security & Sanitation Partnership Annual Report 2018 Water’s Edge: Rising to the Challenge of a Changing World Global Water Security & Sanitation Partnership – Annual Report 2018 A © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: “http://www.worldbank.org” www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, inter- pretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judg- ment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522- 2625; e-mail: HYPERLINK “mailto:pubrights@worldbank.org” pubrights@worldbank.org Cover photo: © Chris Terry / World Bank. Cover design: Ryan Clennan, StudioGrafik. PHOTO CREDITS: Page 6: Mirva Tuulia Moilanen / World Bank Page 12: Sofie Tesson / TAIMANI FILMS / WORLD BANK Page 15: Danilo Pinzon / World Bank Page 17: Armine Grigoryan / World Bank Page 20: Yuri Mechitov / World Bank Page 24: Simone D. McCourtie / World Bank Page 26: Chris Terry/World Bank Page 32: Caroline Suzman / World Bank Page 35: WASH United Page 43: Monica Tijero / World Bank Page 46: Dominic Chavez/World Bank Page 51: Matthijs Schuring / World Bank Page 52: Almin Zrno / World Bank Global Water Security & Sanitation Partnership Annual Report 2018 Water’s Edge: Rising to the Challenge of a Changing World TABLE OF CONTENTS Executive Summary......................................................................................................................................7 1. RISE to the Challenge: The Road to 2030................................................................................................ 13 2. ADD Value.............................................................................................................................................. 19 3. SHARPEN the Focus: Investing in Five Priority Themes.......................................................................... 27 Sustainability......................................................................................................................................... 30 Inclusion ............................................................................................................................................... 35 Finance ................................................................................................................................................. 38 Institutions............................................................................................................................................ 42 Resilience ............................................................................................................................................ 47 4. ACHIEVE Results.................................................................................................................................... 53 Annex A. Financial Update.......................................................................................................................... 59 Annex B. Results Progress......................................................................................................................... 62 THE GLOBAL WATER SECURITY & SANITATION PARTNERSHIP (GWSP) The GWSP is a multidonor trust fund (MDTF) administered by the World Bank’s Water Global Practice and supported by Australia’s Department of Foreign Affairs and Trade; the Bill & Melinda Gates Foundation; the Netherlands’ Ministry of Foreign Trade and Development Cooperation; Norway’s Ministry of Foreign Affairs; the Rockefeller Foundation; the Swedish International Development Cooperation Agency; Switzerland’s State Secretariat for Economic Affairs; the Swiss Agency for Development and Cooperation; Irish Aid; and the U.K. Department for International Development. In addition to the GWSP, the Water Global Practice supports other MDTFs, including the 2030 Water Resources Group, the Central Asia Energy- Water Development Program, the Danube Water Program, the Cooperation in International Waters in Africa Program, and the South Asia Water Initiative. ACRONYMS ASA Advisory Services and Analytics (World Bank) B billion CWIS Citywide Inclusive Sanitation DFID Department for International Development (United Kingdom) DLI Disbursement-Linked Indicator ESMAP Energy Sector Management Assistance Program EU European Union FCA fragile and conflict-affected FSM fecal sludge management GDP gross domestic product GHG greenhouse gas GPOBA Global Partnership on Output-Based Aid GSG Global Solutions Group GWSP Global Water Security & Sanitation Partnership HSAP Hydropower Sustainability Assessment Protocol HWA Hargeisa Water Agency (Somaliland) IFC International Finance Corporation (of the World Bank Group) JMP Joint Monitoring Programme K&L knowledge and learning M&E monitoring and evaluation MDG Millennium Development Goal  MFD maximizing finance for development MFI microfinance institution MHM menstrual hygiene management MIGA Multilateral Investment Guarantee Agency (of the World Bank Group) NRW nonrevenue water O&M operations and maintenance PIR Policy, Institutional, and Regulatory PPIAF Public-Private Infrastructure Advisory Facility  PPP public-private partnership  PSP private sector participation RBF results-based finance SDG Sustainable Development Goal UNICEF United Nations Children's Fund  UTF Utility Turnaround Framework WASH water, sanitation, and hygiene WASH PD WASH Poverty Diagnostic WPP Water Partnership Program WRM water resources management WSC Water Scarce Cities Initiative  WSP Water and Sanitation Program WSS water supply and sanitation All dollar amounts are U.S. dollars unless otherwise indicated. Global Water Security & Sanitation Partnership – Annual Report 2018 1 2 Global Water Security & Sanitation Partnership – Annual Report 2018 FOREWORD Over the past 12 months, the world has seen water in its extremes. In the same year, the City of Cape Town, South Africa, announced “day zero,” the day on which it was predicted the city would run dry, and a million victims of massive flooding were evacuated from Kerala, India.  Floods, droughts, infrastructure shortfalls, and poor water resources management all made global headlines. Countries are facing a new normal where water is either “too much, too little, or too polluted.”     These disasters compound mortality and vulnerability in an already fragile world, where 2.1 billion people still lack access to safely managed water and 4.5 billion lack safely managed sanitation.  The challenges are exacerbated by a cycle of conflict and violence that has produced more than 25 million refugees who, among other challenges, create enormous demands for water and sanitation and imminent risks to the environment. It is increasingly clear that decisions about how water is managed have greater consequences than ever before.     The World Bank’s Water Global Practice (GP) is uniquely well-placed to respond to this growing complexity. Driven by the vision of “a water secure-world for all,” its staff of nearly 300 professionals in 64 countries partner with clients to build their capacity to better manage water services across five business lines. Backed by a lending portfolio of $29 billion, the Global Water Security & Sanitation Partnership (GWSP) serves as a “think tank” that bolsters sustainable project outcomes by investing in innovation and intellectual leadership. The partnership, which expands the presence of GP staff around the world, ensures that first-rate knowledge and research flow both from and to our lending portfolio. GWSP analytics and knowledge assist governments and other partners in building capacity and strengthening the institutions, infrastructure, and inventiveness needed to adequately supply current and future generations with water, food, and energy.      As the outgoing and incoming Senior Director of the GP, we renew our unwavering commitment to ensuring GWSP remains an integral and globally influential resource. We would like to take this opportunity to thank our outstanding partners for cocreating a results-focused program that expands the impact of our lending, and invite new partners to join us in rising to the challenge of our changing water world.    Sincerely,      Guangzhe Chen Jennifer Sara  Outgoing Senior Director Incoming Senior Director  Water Global Practice Water Global Practice Global Water Security & Sanitation Partnership – Annual Report 2018 3 4 Global Water Security & Sanitation Partnership – Annual Report 2018 A NOTE FROM THE PROGRAM MANAGER Welcome to the next chapter in water security. In 2017, ten partner agencies and the World Bank’s Water Global Practice (GP) launched the new Global Water Security & Sanitation Partnership (GWSP), an integrated platform for working alongside countries as they rise to their next water challenge. The GWSP builds on the foundation of its two predecessor programs: the Water and Sanitation Program (WSP) and the Water Partnership Program (WPP). This year, the United Nations family concluded that the world is not on track to reach the Water Sustainable Development Goal (SDG 6) by 2030. Pollution is worsening, ecosystems are in decline, and country institutions have insufficient capacity and financing to make the investments needed to reach their targets. There is neither time—nor water—to waste.   Over the next five years, the GWSP aims to invest up to $200 million in low- and middle-income countries. Partnership resources will be used to boost demand for innovative investments and to improve the way water sector institutions function. The goal is to see one country after another achieve better development outcomes—across a range of sectors— through water management practices that mitigate risk. To more effectively bring critical resources to the front lines, the GWSP has been designed as a Water GP core asset—its “think tank,” which expands and deepens the impact of its lending program. The partnership leverages knowledge and analytics to improve World Bank lending operations in ways that more effectively reach people in need. GWSP-funded analytics and technical assistance to 31 countries has already influenced the size and shape of lending. In 2018, Bank lending in water reached an unprecedented $4.6 billion, one third of which is leveraging a new development approach that pays for long-term results rather than inputs. This is just one demonstration of how clients are asking for more programmatic investments that empower country institutions over traditional, siloed infrastructure projects. Such a shift in thinking would not have been possible without the upstream analytical and knowledge contributions of the WSP and WPP across a range of countries over the previous decade. We would like to thank the former GWSP Program Manager, Maria Angelica Sotomayor, and the donors for their pioneering efforts in designing the first integrated multidonor trust fund in water. Our hope is that this new, efficient structure—which feeds lending operations with GWSP-funded knowledge—will help our clients achieve more sustainable development outcomes. In the process, we hope to build a more influential GP that will be the partner of choice for decades to come. We welcome those who want to help us write the next chapter in water security.   Sincerely,   Joel Kolker  GWSP Program Manager  Global Water Security & Sanitation Partnership – Annual Report 2018 5 6 Global Water Security & Sanitation Partnership – Annual Report 2018 EXECUTIVE SUMMARY Many of the challenges of our time revolve around water. Fortunately, so do their solutions. Human health and human capital are boosted when water and sanitation services are provided to all. Water is a buffer against climate change through its role & Sanitation Partnership (GWSP). GWSP builds on 40 in adaptation. Food insecurity is reduced through better years of experience—through the Water and Sanitation drought management practices. And political crises can be Program (WSP) and the Water Partnership Program (WPP) abated by better engaging communities in the management of investing in innovation to change the water landscape. of public services. Water—either as sustenance or menace— Innovative in its own right, the GWSP, for the first time, is part and parcel of every one of the 17 Sustainable brings together the knowledge and lending arms of the Development Goals (SDGs), from nutrition, to education, Water GP to ensure knowledge and innovation can flow to disaster risk management. seamlessly under one organizational roof. This 5-year strategic partnership requires $200 million to achieve It has never been more important to make the most of our results in five priority themes that are deemed critical for water resources. The World Bank and its partners have risen the SDGs. To date, $118 million has been raised for the to the challenge by launching the Global Water Security program. 7 GWSP AT A GLANCE 10 $118 87 31 $13.8 1 MILLION BILLION GWSP donors activities countries 2 investing in a initiated supported water-secure committed in lending world for all by donors for influenced 2018–22 GWSP INFLUENCE ON GLOBAL LENDING Europe and Central Asia $1.58b COMMITMENT 20 lending projects East Asia and Pacific Middle East and $1.67b COMMITMENT North Africa 8 lending projects $2.10b COMMITMENT 9 lending projects South Asia $1.61b COMMITMENT Africa 8 lending projects $4.47b COMMITMENT Latin America and 25 lending projects the Caribbean $2.33b COMMITMENT 24 lending projects IBRD 44000 | OCTOBER 2018 This map was produced by the Cartography Unit of the World Bank Group. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of the World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 1 Including the U.K. Department for International Development (DFID) and Irish Aid, which have rolled over their previous contributions to the WSP and WPP to the GWSP. 2 Of the total $13.8 billion (as shown on the map), $8.2 billion is directly influenced by activities as reported through program initiation in the World Bank’s operations tracking system. This figure was adjusted—by an additional $5.6 billion—through the FY18 reporting process. This number is expected to fluctuate over the lifetime of the GWSP to account for ongoing and newly approved projects. 8 Global Water Security & Sanitation Partnership – Annual Report 2018 FY18 KEY ACHIEVEMENTS Frontline RESPONSE TO CRISES: refugee, drought, conflict Scaling up results-based lending: $4 BILLION influenced by water partnerships past and present Global reach: The Bellagio Principles universally guiding how we VALUE WATER in all its forms Financing the SDGs: thought leadership in 20 global events to shift mindsets about commercial finance Achieving results: 15.7 MILLION people directly benefited from improved water supply services; 11.5 MILLION people from improved sanitation; and 1.8 MILLION PEOPLE from improved irrigation services Global Water Security & Sanitation Partnership – Annual Report 2018 9 The World Bank’s Water Global Practice (GP), for the first RISE to the Challenge (chapter 1), by serving as an integrated time since its inception in 2014, is providing support to platform where both Bank lending and partnership resources all water subsectors under one umbrella partnership—the are jointly programmed by task teams. By consolidating the GWSP. This allows the GP to merge sector operations and WSP and WPP programs and combining all water subsectors donor resources into a single management structure. under one new partnership, the GWSP embodies the concept of “one water” as defined by SDG 6. The direct result for the GP has been a more effective corps of water professionals that can better integrate solutions across ADD Value (chapter 2), by doing what cannot be done with the wide water spectrum. For our clients, it means stronger World Bank resources alone. The GWSP synergizes with positioning of the water sector’s role in meeting national World Bank lending by enhancing portfolio performance objectives, raising the profile of water in the economy. across $13.8 billion in lending projects. At the same time, Water GP staff work alongside clients to build capacity. The Water GP can achieve significantly better, more sustainable The “knowledge in implementation” approach ensures results through its lending operations when it taps into the that research feeds into program design and then back innovation, knowledge, and flexibility afforded by GWSP into the next cycle of knowledge generation. This “think resources. The program supports the bulk of the analytical tank” approach is a practical mechanism for assisting client work and technical assistance in the Water GP, complementing countries and consolidating the evidence base needed to World Bank lending operations and country dialogue in guide the global water debate. Through its complementary three ways. First, it supports the GP’s global platform in support to World Bank lending programs (including continuously shaping the water debate, bringing the most projects in other sectors), GWSP’s reach is expansive and its relevant and timely evidence to the world stage. Second, the impacts reverberate far beyond the Water GP. partnership adds value to the work of other practitioners by helping them mainstream better water resources management SHARPEN the Focus (chapter 3), by investing in nine principles into their sectors, from energy to education. Third, it focus countries as well as globally in five priority themes. complements the current World Bank funding model, building These themes have been identified by the GWSP partners as out and linking across the scale, timing, and scope of country critical to achieving the SDGs, and serve as an entry point based lending. Together, these three GWSP contributions are for shifting the way governments invest their own resources: strengthening World Bank investments in ways that produce   more sustainable impacts. • Integrated approaches to sustainable sanitation and hydropower assessment are changing the way clients This report covers the period from July 1, 2017, through themselves approach complex challenges. June 30, 2018, and is structured around the primary contributions the GWSP made during its inaugural year to: • Cutting-edge research and roundtables on inclusion are helping teams incorporate gender and citizen engagement into project components in the rural water, rural sanitation, education, and agriculture sectors. 10 Global Water Security & Sanitation Partnership – Annual Report 2018 THE GWSP IS INFLUENCING $13.8 BILLION IN WORLD BANK LENDING, OF WHICH: $11.6 B IN WATER $2.2 B IN OTHER SECTORS Water Supply & Sanitation Energy Water Resources Management Urban Water, Poverty & Economy Agriculture Hydropower & Dams Health Water in Agriculture Environment Governance Climate Change • Governments are strengthening their countries’ ACHIEVE Results (chapter 4) introduces the new resilience to disasters and other shocks through the GWSP results framework, which shows the impact of application of a freshwater framework for improved GWSP-funded analytical work and country dialogue on decision making. Fragile and conflict-affected (FCA) downstream lending. Anchored by this one united results countries are using new evidence to understand risks framework, task teams across the GP are guided toward to water security. focusing on sustainability in every country engagement. Three results blocks are introduced, and progress on • Global frameworks on institutions are helping clients select indicators is provided for each. The entire results understand the incentives needed to foster change, framework is presented in annex B. and operational lending is now more strategically focused on building capacity across multiple levels of During its first year, GWSP had already disbursed $24.4 government, simultaneously, and in a cohesive manner. million of the initial allocation, mostly to global and regional knowledge and analytics3 activities that support • Technical assistance on building utility creditworthiness all five priority themes. The Water GP also completed is helping to bridge the commercial finance gap so disbursement of the final year of WPP funding, an additional the sector can tap into new money while enhancing amount of $10.9 million. Taken together, GWSP and WPP efficiency, affordability, and sustainability. disbursements totaled $35.3 million. Financial details are provided in annex A. Moreover, a selected country is highlighted under each theme to demonstrate the breadth and depth of multiple GWSP interventions ongoing throughout the year. By taking a more succinct look at GWSP influence across a country, these spotlights demonstrate how strategic investments are helping to shift the needle at the national level. 3 Coded by the World Bank as Advisory Services and Analytics (ASA), this includes knowledge, analytics, and technical assistance to client counterparts. Global Water Security & Sanitation Partnership – Annual Report 2018 11 12 Global Water Security & Sanitation Partnership – Annual Report 2018 1 Why is Water Important? RISE TO THE CHALLENGE: THE ROAD TO 2030 The Great Leap: From the MDGs to the SDGs Water insecurity remains one of the biggest global risks of The Sustainable Development Goals (SDGs), endorsed in our time. As more frequent floods and droughts capture 2015, provide concrete and ambitious targets for countries headlines, governments scramble to understand their role to address their water security challenges. SDG 6, the “Water in preventing and mitigating disaster impacts. Food and SDG,” aims to “ensure the availability and sustainable energy security depend increasingly on water security. management of water and sanitation for all.” With its eight Water supply and sanitation (WSS) services struggle individual targets, SDG 6 encourages decision makers to to keep up with rapid urbanization, while all too often support increasingly integrated solutions. Reaching the SDGs marginalized rural populations are still being left behind. by 2030 will require a redefinition of today’s aid architecture Without proper policies and planning, strong sectoral to allow countries to crowd in additional investment. institutions, and adequate financing, more low- and middle-income countries will face the dire consequences of At the macro level, water resources management water insecurity—poorer human health, slower economic challenges require collaboration between sectors as growth, and lost opportunities. diverse as agriculture, energy, transport, and disaster risk management. At the micro level, getting water and • 9 OUT OF 10 natural disasters are water-related sanitation services to all will require reaching more than a • 6 IN 10 people use sanitation facilities that are not billion additional people. safely managed • The crops lost to repeated drought could feed But universal access is perhaps the relatively easy 81 MILLION people each year challenge. There is a magnitude of difference between the water Millennium Development Goals (MDGs) and the water SDGs. In 2000, the goal was to halve the number of people without access to improved services. In 2015, the goal jumped to universal and safely managed access, with more requirements, like the walking distance and proximity of water points to a household, and the proper disposal and treatment of fecal waste. The goals are not only ambitious; they also require more innovative and integrated responses than most countries have ever had the resources to consider. Global Water Security & Sanitation Partnership – Annual Report 2018 13 SDGS MDGS SDG 6.1 – 6.2: Universal and SDG 6.3-6.6: Sustainable MDG 7.3: Halve the safely managed access to: management of water by # of people without addressing: basic access to: Ecosystems and pollution DRINKING WATER Clean, on premises, Within a 30-minute round trip on demand Scarcity and reuse SANITATION/ HYGIENE Separation of excreta Not shared, proper waste Integrated management from human contact disposal/treatment and institutions Focus on vulnerable/women/girls BUILD on a Foundation: Continuity from WSP and WPP The Global Water Security & Sanitation Partnership challenges in a more holistic manner. The GWSP also (GWSP) was launched by the World Bank Group’s Water provides a seamless continuation of funding for priority Global Practice (GP) with its partners4 in 2017 to help needs, allowing the mature initiatives of its predecessors to governments meet SDG 6 and other water-related goals. be streamlined into country programs. The program is the culmination of 40 years of water partnership between development agencies and the World The GWSP is fully aligned with and substantively Bank. Building on the legacies of the Water and Sanitation contributing to the vision of the GP: a water-secure Program (WSP) and the Water Partnership Program (WPP), world for all. With GWSP now an integral part of its the GWSP consolidates the experience and knowledge architecture, the GP for the first time ever has a unique produced under both pioneering programs. opportunity to align knowledge with operations under the same management structure, providing more flexibility in By combining the complementary scopes of the WSP resource mobilization and greater efficiency. Moreover, and WPP, which focused on WSS and water resources by measuring GP success against the GWSP results management (WRM) respectively, the GWSP embodies framework, all water programming is now tied to big one integrated framework, so the GP can tackle water picture outcomes across the wide water spectrum. 4 Australia’s Department of Foreign Affairs and Trade; the Bill & Melinda Gates Foundation; the Netherlands’ Ministry of Foreign Trade and Develop- ment Cooperation; Norway’s Ministry of Foreign Affairs; the Rockefeller Foundation; the Swedish International Development Cooperation Agency; Switzerland’s State Secretariat for Economic Affairs; the Swiss Agency for Development & Cooperation; Irish Aid; and the U.K. Department for International Development. 14 Global Water Security & Sanitation Partnership – Annual Report 2018 1978 2009 2017 The GWSP is unique, as it consolidates WSS and WRM GWSP supports interventions WPP supports within a WSP supports ONE WATER: mainstreaming country water and WSS and WRM of water to provide sanitation (WSS) interventions resources holistic interventions in in all WBG management solutions. 38 of the poorest countries across (WRM)  in 62 countries five new GP countries business lines Global Water Security & Sanitation Partnership – Annual Report 2018 15 HUMAN CAPITAL: SCARCITY AND THE NEXT GENERATION Uncharted Waters: The New Economics of Water Scarcity and Variability presents evidence to advance our understanding of how rainfall and droughts affect farms, firms, and families. While a flash flood or low rainfall season may seem to yield short-term challenges for people and industry, this new flagship document shows that the effects are both large and long-term. For example, babies who endure dry shocks in their first 1,000 days will suffer not only throughout their lives, but their children are also more likely to be stunted and less healthy. The paper recommends fundamental changes to water policy that enforce more prudent use of resources as well as infrastructure that help mitigate water-related risks. The methodology is also being used for water security analyses in Vietnam and India and agricultural sustainability analyses in Morocco and Central Asia. Most important, the approach is being mirrored across partnership frameworks used by the World Bank and its client countries, which form the basis of lending programs. FIGURE ES.2 Some Results at a Glance UNCHARTED WATERS With population growth the demand for water is accelerating and with climate change rainfall has become more erratic Rainfall shocks affect about 25% of humanity each year Impacts Exploring Impacts ripple across farms, firms, and families FARMS FIRMS FAMILIES Dry shocks reduce For firms and A dry shock in yields and Farms cause cities, the cost of Firms infancy can Families annual losses that dry shocks are become destiny, could feed 81 million four times greater with lasting effects people, the Rainfall variability than wet shocks. on health Water and availability population of Without sufficient wealth, trapping Germany. Dry shocks water, economies subsequent World Bank Group | Uncharted Waters: The New Economics of Water Scarcity 1 push farmers to slow down with generations in The report has been downloaded more than 18,000 times since its expand agriculture impacts on health, poverty and publication in November of into forests, 2017. labor incomes, and malnutrition worsening climate firm sales change and 16 threatening water Global Water Security & Sanitation Partnership – Annual Report 2018 supplies The Value of Water CHALLENGE: As much as 40 percent of the global population is affected by water scarcity. More than 2 The English language version billion people are drinking unsafe water, while 4.5 billion lack safely managed sanitation options. of the Call to Action video APPROACH: The High-Level Panel on Water (HLPW) has been viewed more than was convened in 2016 by the UN Secretary General and President of the World Bank Group. Comprised of 100,000 times and the report 11 heads of state and a special advisor, the panel was was covered by various charged with identifying ways to accelerate progress toward SDG 6 and facilitating collaboration to help shift news outlets, including The mindsets about water. Guardian, Foreign Affairs, and ADDITIONALITY: The GWSP supported the development process of the HLPW’s flagship publication Making Every CBS News. Drop Count: An Agenda for Water Action. The document, along with a video launched on World Water Day 2018, presents the HLPW’s outcomes and recommendations. The panel calls for the global audience to make three The GWSP also enabled the World Bank to lead the major shifts: development of the Bellagio Principles on Valuing Water, with Water GP staff providing intellectual leadership. • TURN IT OFF: the faucet; pollution; bacteria; and our The principles recognize the multiple values of water and denial of a global water crisis give explicit recognition and a voice to dimensions of water that are easily overlooked. Unlike its predecessor, • TURN IT ON: solutions; ideas; innovation; the Bellagio Principles have been universally welcomed, investments; and political will for change opening new fields of research in the Water GP, such as Uncharted Waters. • TURN IT UP: the urgency; the volume on water dialogue; and the value we place on water Global Water Security & Sanitation Partnership – Annual Report 2018 17 18 Global Water Security & Sanitation Partnership – Annual Report 2018 2 Entry Points ADD VALUE The GWSP supports task teams and clients through three on a long-term basis. This entry point allows the GP to distinct entry points. First, the GWSP fortifies the GP’s invest more resources in lower-capacity countries such as intellectual leadership, giving staff the time and space fragile and conflict-affected (FCA) states, and leverages the they need to collaborate with global experts, develop new project cycle as a tool for building capacity around planning, concepts, and conduct frontier research. Second, the long- budgeting, or procurement. Third, the just-in-time technical term country engagement model, a legacy of the WSP’s support modality, the Water Expertise Facility (WEF), builds “boots on the ground” capacity, places staff in strategic on the WPP’s expert model, providing rapid response to geographies to continue client dialogue between or in changing project conditions or to shift a project’s trajectory advance of operations, and to provide technical assistance toward more sustainable results. GWSP’ S ENTRY POINTS 1 New thinking 2 Long-term country engagement 3 Just-in-time technical assistance Leverages the global reach of the Lays the framework for country Enhances project designs Water GP, sharing lessons from one strategies between lending with highly specialized global part of the world with another operations or before lending knowledge operations begin Drives investments and innovation Offers rapid response to changing through cutting-edge analyses Institutional strengthening in circumstances advance of and during reforms Supports proof-of-concept Provides an unparalleled capacity- applications Project implementation support building model based on peer-to- to lower-capacity agencies, peer learning Shifts mindsets through advocacy especially in fragile and conflict- and outreach affected (FCA) countries GWSP’ s decision criteria Funding is provided for those activities that demonstrate additionality to a lending operation through one or more of the five GWSP priority themes and that have a high potential for global replication. Global Water Security & Sanitation Partnership – Annual Report 2018 19 What is the Water Expertise Facility? Key WEF Achievements • Building on the legacy of the WPP’s Water Expert • In FY18, WEF committed $1.4 million in expert Team, the WEF provides just-in-time support to support for 47 activities operational task teams by connecting them with global water experts • Missions have covered 27 countries and supported 3 global studies • WEF funds support discrete, time-bound activities that advance lending operations • A total of 750 technical questions were routed through the AskWater Help Desk, which links country-based • WEF works across all five business lines with funding challenges with the network of Water GP experts and tailored to the specific needs of each country and knowledge project context • The facility leverages the experience of the Water GP as well as the breadth and depth of its global knowledge • Experts enhance projects in several ways, among others, by addressing knowledge gaps, improving the design of investments, and integrating innovative approaches or solutions. “The use of GWSP funding has enabled more experimentation and quicker impact than Bank resources could on their own. GWSP enables the proof-of-concept that can then be scaled up with assurance using IDA funding.” – Shelley MacMillan, TTL 20 Global Water Security & Sanitation Partnership – Annual Report 2018 Illustrative WEF Impacts and Outcomes • Papua New Guinea: technical assistance in drafting recommendations for each of three service areas: a new bill to create a water apex body, the first of its homes, schools, and public facilities. The changes will kind. The bill is going for parliamentary approval in help provide more sustainable access to sanitation for November of 2018. 60,000 people. • Argentina, Colombia, and Peru: rapid, multiscale • South Africa: quick response to Cape Town’s water assessment of current and potential water resource crisis, with four subject matter experts making major issues, using earth observation coupled with in situ contributions to the city’s water augmentation plan monitoring, is informing a new regional water resources and long-term water security strategy. WEF’s support assessment to address water availability issues. to the Bank’s response was part of a partnership facilitated by the South African National Treasury • Haiti: engineering adjustments to the design with support from the Swiss State Secretariat for of new sanitation investments yielded different Economic Affairs (SECO). “The City of Cape Town wishes to thank you for your support on… water resilience. The sharing of international knowledge with our own staff and professional teams added real value to our water business.” – Alderman Ian Neilson, Executive Deputy Mayor, Cape Town, South Africa Global Water Security & Sanitation Partnership – Annual Report 2018 21 GWSP ADDITIONALITY Leverages its global platform to continually shape the global debate on water, bringing the most relevant and timely evidence and solutions to the world stage ​ Mainstreams the role of water in other sector outcomes, helping clients and staff in energy, education, health, urban development, and environment to “do water better”​ Complements the World Bank funding model with regard to the scale, timing, and scope of country-based lending, helping enhance and sustain the outcomes of the Water GP’s lending portfolio Additionality SHAPE the Global Debate: Knowledge as a Public Good The GWSP supports the bulk of the analytical work and technical assistance in the Water GP, complementing World Public goods benefit all of society, but someone must pay Bank lending operations and country dialogue in three ways. for their costs. Much like water and sanitation services, First, the GWSP leverages its place as a global platform to knowledge itself is a global public good. GWSP funds continually shape the debate on water, bringing the most research that helps shape the global debate around water by relevant and timely evidence and solutions to the world documenting experiences that can help shift global thinking. stage. Second, the partnership adds value by incorporating GWSP contributions to the High-Level Panel on Water or good water management practices in other sectors to help other global advocacy campaigns enable its partners to raise clients achieve better results in priority areas like health, the profile of water in the context of delivering on broader urban development, and the environment. Third, GWSP objectives like economic growth and shared prosperity. complements the current World Bank funding model by building on and creating links across the scale, timing, GWSP funding is being catalyzed to help staff shape and scope of country-based lending. Whether investing operations and learn from operations through an in new analytical work, or building the evidence clients iterative and dynamic process called “knowledge in need to instigate reform, GWSP resources are continuously implementation.” Topics are surfaced through country working to expand the impact of water lending programs analyses and client dialogue and checked against the toward achievement of the SDGs. World Bank’s water portfolio to identify where the same trends or challenges are emerging across multiple regions. Many of the research areas supported by the GWSP are critical to providing new evidence on emerging global water challenges and are areas in which think tanks or other water sector players are not currently investing. 22 Global Water Security & Sanitation Partnership – Annual Report 2018 GWSP’S POTENTIAL TO INFLUENCE WORLD BANK LENDING WORLD BANK LENDING $29 B WATER SECTOR $12 B OTHER SECTORS WSS Urban, Rural & Soc. Dev Irrigation Agriculture WRM Energy Hydropower & Dams Climate Change Lessons Research Knowledge learned & Analytical work emerging Convening Knowledge in Implementation trends Advocacy PRIORITY THEMES Sustainability Inclusion Institutions Financing Resilience New thinking is next mainstreamed into lending operations COMPLEMENT the World Bank via the GWSP’s priority themes. In Ghana, this is the new Funding Model research on menstrual hygiene management (MHM). In Iraq, it is capacity building on maximizing finance for development (MFD). Once applied through lending, GWSP activities focus on improving the quality and the projects in turn yield unique insights, lessons, and sustainability of World Bank lending operations, which opportunities that form the basis of the next generation themselves address vital infrastructure needs. Lending of knowledge and analytics funded by the GWSP. Thus, programs most often comprise specific, time-bound the cycle of generating and then applying knowledge country engagements. GWSP resources are used to fortify continues toward further refinement. Knowledge both lending operations by building on and creating links flows from and feeds back into lending operations on both between the scale, timing, and scope of ongoing or future the country and global scale. operations. GWSP seizes opportunities to build bridges that enhance quality and sustainability. For example, GWSP can provide additional resources to promote regional dialogue toward shared goals, building on what would otherwise simply be country-based investments. These targeted resources enable the GP to bring new ideas to the table—ideas that improve project outcomes or even unlock major sector reforms. Global Water Security & Sanitation Partnership – Annual Report 2018 23 Opportunities to Strengthen the Value Added: The GWSP’s Contribution World Bank Funding Model Scale Country-based Supports regional and global engagements that leverage innovative ideas through collaboration with academia, the private sector, and civil society Lacks incentives for regional Brings multiple riparian countries to the table to discuss transboundary or regional coordination development issues Isolated interventions Identifies potential synergies across the portfolio; takes lessons from one part of the world to another Timing Time-bound Provides support to clients between and in advance of operations; staff on the ground help sustain momentum for reform in the interim Static budgets Enables clients to address unexpected changes or shocks—a flood, a new law, a sudden influx of refugees—in the context of existing and planned programs Insufficient time for Brings clients to the frontier of knowledge, using best practices in poverty mapping, adequate analysis and subsidy targeting, or project resilience to external (climate) shocks assessment Scope Most lending in the water Analyzes the legal, policy and governance frameworks that support results; works sector is designed for beyond physical assets to improve quality and sustainability as a complement to infrastructure investments Insufficient resources Global experts provide just-in-time support; technical assistance and training ensure for institutional capacity counterparts have the skills to operate new systems building Countries opt for lower-risk Enables teams to consider high-risk, high-reward options and to leverage innovative profiles approaches 24 Global Water Security & Sanitation Partnership – Annual Report 2018 MOZAMBIQUE: GWSP ENABLES BANK TO SCALE UP SANITATION INNOVATIONS The World Bank has supported the government of Mozambique since 2005 with both technical assistance and investments toward improving WSS services in urban areas and small towns and consolidating the national sector information system. The Bank’s support involves strengthening of provincial capacity, taking sector inventories in 70 small towns, developing strategic plans, and providing assistance for the design of on-site sanitation options. The strategic plans have since been adopted as the principal avenues for sector development in Mozambique. More recently, GWSP funding supported a study on innovative financing, which was subsequently taken up by the government and UNICEF. This and other innovative approaches first piloted in Mozambique, including an Urban Sanitation Status Index and a small towns inventory approach, are being replicated in projects in Zambia and Tanzania to improve the way investments are assessed, financed, and monitored. The results have led the government of Mozambique to request additional financing of $135 million for investments in the country’s sanitation sector. The pipeline project expects to help build the capacity of newly created sanitation agencies in four cities and to bring improved sanitation to more than 350,000 people. INFLUENCE the Current: Water and Beyond GWSP brings the incentives needed to help foster better water resources management in nonwater projects. collaboration between clients, Bank staff, and other By supporting the Bank’s core water work, the GWSP development practitioners working in water and other has already influenced $11.6 billion in water lending sectors. GWSP has been a critical asset to the GP in and an additional $2.2 billion in lending in other sectors, enabling staff to respond to other development challenges including energy, agriculture, health, and climate change. in which water is a key input. GWSP helps mainstream Global Water Security & Sanitation Partnership – Annual Report 2018 25 26 Global Water Security & Sanitation Partnership – Annual Report 2018 3 SHARPEN THE FOCUS: INVESTING IN FIVE PRIORITY THEMES How Does GWSP Help Countries Shift the Needle Toward the SDGs? The partnership seeks to change how governments approach GWSP activities target five themes: sustainability, inclusion, their water investments, so they can achieve the SDGs. This institutions, financing, and resilience. The donors believe means expanding traditional brick-and-mortar approaches that client country governments are better prepared to to incorporate improvements in overall sector sustainability, enter the SDG era when these five aspects are integrated financing, resilience, institutions, and inclusion. into project and program design. The partnership also seeks to change where governments The benefits of the GWSP are well worth the cost. In FY18, invest. This means making water service providers more $24.4 million in GWSP funds leveraged $13.8 billion in creditworthy so that public funds can be used to leverage World Bank lending. Projects that receive GWSP support additional resources. It also means encouraging countries have more strategic investment prioritization, better financial to take a more integrated approach to water, that is, shift analyses, and more capable institutions to implement them. their demand toward more integrated investments across This means that each dollar invested by the World Bank or the water spectrum. its clients has a broader, deeper, or more sustainable impact thanks to the value added by the GWSP. Global Water Security & Sanitation Partnership – Annual Report 2018 27 THE GWSP PARTNERS DEFINE THE PRIORITY THEMES AS FOLLOWS: SUSTAINABILITY: Ensuring water resources continue to deliver benefits to future generations. The GWSP bolsters client capacity to manage water more effectively, even under disruptive dynamics like urbanization and climate change. Sustainable services also require well-maintained assets, from handpumps to treatment facilities. INCLUSION: Improving the terms for individuals and groups who are disadvantaged, based on their identity, to equally benefit from improved water services. Benefits often depend on whether one has ownership and control of the resource, or a voice in its management. GWSP enables governments to understand the nature of water inequality and build strong institutions that will hold service providers accountable.  FINANCE: Increasing the efficient use of existing financial resources and securing additional resources to close the financing gap. For example, the WSS sector alone (SDG targets 6.1 and 6.2 only) requires six times more financing than governments, the private sector, and donors are currently providing. GWSP funds are used to improve the financial viability of sector institutions and enhance opportunities to blend public or donor funds with commercial finance. INSTITUTIONS: Better water management will require stronger institutions. GWSP helps clients understand which incentives are needed to drive change in the sector, and to identify the resource and capacity constraints. What’s needed is an incentive structure tailored to each country’s local cultures, economies, and political circumstances. RESILIENCE:   Increasing the resilience of water resources and facilities to potential shocks and stresses. The GWSP promotes strategies and tools at the country, basin, and local level aimed at incorporating risk considerations into program and policy analysis and bringing innovative solutions to ease water scarcity constraints. This chapter highlights some of the major contributions of GWSP activities in FY18 under each of the five themes and in five of the GWSP focus countries. Several types of activities are presented—including global knowledge and country engagements— and results that have evolved from key WSP and WPP initiatives. 28 Global Water Security & Sanitation Partnership – Annual Report 2018 SHIFTS IN THE WATER PORTFOLIO SIZE: $29 billion GROWTH: $4.6 billion record lending in 2018 SCOPE: Growing client demand for historically underfunded sectors: irrigation, sanitation, and rural services INSTRUMENTS: Bigger proportion of results-based and programmatic lending to bridge infrastructure investments with technical assistance Focusing on Results by Supporting The World Bank currently invests Country Systems $26.8 billion in results-based lending, CHALLENGE: Water GP support to clients has focused on with the Water GP contributing 18% of financing critical infrastructure. Faced with a lack of progress the total, or $4.7 billion. and the heightened ambition of the SDGs, clients see a need for sector-wide approaches that can unlock persistent institutional bottlenecks and build government capacity to deliver programs at scale using a country’s own systems. achievement of the results-based program. WSP and GWSP have helped shape several such water operations, including APPROACH: The Bank launched a new approach, in Benin, Egypt, Tanzania, Vietnam, and Burkina Faso. Program-for-Results, in 2012. The approach is unique in that it supports a slice of a government’s own program In Burkina Faso, following years of WSP pilot testing in and uses country systems and processes to deliver that the WSS sector, the government selected a results approach support. It also links funding to the achievement of for investing in three subsectors: water supply, sanitation, verifiable results and performance actions. Moreover, the and integrated water resources management (IWRM). The approach enhances the outcomes of a series of policies program invests $300 million, including funds from the or an investment program by developing the capacity of International Development Association (IDA) Scale-Up institutions and by providing a collaborative platform to Facility, to enhance results. Informed by GWSP-funded pool resources and coordinate with other development analytics, the project will ensure progress toward 1.1 partners at the country level. million additional people benefiting from improved water supply and 1.3 million from improved sanitation services. ADDITIONALITY: The GWSP adds value to the process Additional investments in sustainability will support an by supporting capacity building of country systems—at enabling environment to attract private capital throughout both the sector and country level—that are critical to the the country. Global Water Security & Sanitation Partnership – Annual Report 2018 29 SUSTAINABILITY City-Wide Inclusive Sanitation CHALLENGE: Only 36 percent of urban excreta is safely organized in Lebanon to present CWIS managed today, while the urban population continues and its relevance for countries in the growing at about 60 million people per year. Innovative Middle East and North Africa. More and flexible sanitation delivery models are needed to reach than 400 people have been reached the unserved and keep up with rapid urbanization. through CWIS knowledge events. APPROACH: The Water GP is a founding member of TOOLS: GWSP supported the completion the Citywide Inclusive Sanitation (CWIS) Initiative, a of the Citywide Inclusive Sanitation partnership that works to expand sustainable sanitation in Costing & Planning Tool; a shared, communal and public cities around the globe. CWIS aims to get city stakeholders sanitation guide; a fecal sludge treatment design manual (in to work together to radically change the current models collaboration with the Bill & Melinda Gates Foundation); and for urban sanitation by considering all its dimensions— a global report on container-based sanitation. technical, financial, regulatory, institutional and social. COUNTRY APPLICATIONS: The CWIS team has taken its Its core partners—the Bill & Melinda Gates Foundation, support to cities around the world where GWSP funds the University of Leeds, WaterAid, Plan International, and are leveraging Bank operational lending. Several other Emory University—provide an active platform for global countries are also using CWIS tools, and mobilizing dialogue and dissemination of good practices in urban support from the CWIS core team and consultants to help sanitation. Thus far, the World Bank’s CWIS activities develop urban sanitation schemes using a CWIS approach: have included advocacy and capacity building through knowledge and learning (K&L) events, the development of • In Angola, GWSP has enabled specialized assistance analytical tools, and initiation of the approach in several for the client to prepare a new sanitation component countries. for a water sector loan based on the CWIS principles. Additionality: • In Kenya, GWSP is supporting a county-wide approach to sanitation provision that looks at sanitation services K&L: GWSP supported country-based training events in the urban, small town, and rural spheres, as such to design CWIS interventions in Ethiopia and Kenya. provision has recently been devolved to the subnational Additionally, two four-day K&L events were held in Brazil level. Additional GWSP support is being provided to and Ghana, showcasing global practices and lessons learned Nakuru County to develop a CWIS approach through a from application of CWIS principles, and a workshop was new, multisectoral sanitation steering committee. PORTFOLIO SHIFTS: PORTFOLIO INFLUENCE: PORTFOLIO RESULTS: • 46% of new knowledge and • 75% of new lending promotes • 1,400 megawatts of analytics activities support sustainable and efficient hydropower generation sustainability water use capacity constructed or • 60% of new rural WSS rehabilitated lending projects measure • 320,000 hectares under functionality of water points sustainable land or water management practices 30 Global Water Security & Sanitation Partnership – Annual Report 2018 A series of CWIS videos document good practices in urban sanitation from around the globe. The eight videos (which include versions of each video with French and Spanish subtitles respectively), have been viewed more than 5,000 times. • In Bolivia, GWSP has supported the government in ADDITIONALITY: The GWSP has enabled the GP to shadow advancing its urban sanitation agenda—on aspects clients as they pilot the HSAP approach. In FY18, three such as CWIS strategic planning, fecal sludge dam operators in the Zambezi Basin were supported with management (FSM), and connecting unconnected training, a guided self-assessment, advisory services for residents to sewer systems. bridging performance gaps, and development systems or tools to continuously improve sustainability. The Zambezi River Authority then requested an accredited review of WPP Evolution: Sustainable Hydro the Environmental and Social Impact Assessment for the Batoka Gorge, which is being supported by the World Bank. CHALLENGE: Hydropower development is increasing While clients like the value added of the HSAP, many worldwide, helping countries diversify their water supply prefer a tool that can provide a more rapid assessment. and energy base to enhance resilience to climate shocks. In response, the GWSP has funded the design of a gap However, the complexity of hydropower development analysis tool, which can be applied in more countries at makes it difficult for country institutions to assess whether a lower cost than the HSAP. The Climate Bonds Initiative, projects are sustainable from a technical, environmental, a not-for-profit working to mobilize bond markets for social, and economic perspective. climate change solutions, has also expressed interest in rolling out the gap analysis tool to determine eligibility for APPROACH: The Water GP helped to design and test the hydropower projects. Hydropower Sustainability Assessment Protocol (HSAP), a globally applicable methodology that helps build stakeholder buy-in and attract the support of financial institutions to develop or improve a project. To date, the HSAP has been applied by the Water GP and other partners to 22 projects, influencing improved water management and energy generation. Developing the full hydropower potential of the Zambezi Basin and improving coordination around those investments would double current energy production, double the area under irrigation, provide more than 500,000 new jobs, and reduce flood risk. Global Water Security & Sanitation Partnership – Annual Report 2018 31 WSP Evolution: Clean India CHALLENGE: India has the largest number of people ADDITIONALITY: The Clean India program is benefiting practicing open defecation, contributing to pervasive disease, from the culmination of 12 years (2002–13) of WSP stunting, and pollution. But merely getting toilets into support to demand-led sanitation in eight states in India, households is not enough. Research shows that toilet use can addressing policy development, expansion of the sanitation decline over time if behavior change does not take root. market, and a stronger enabling environment, among others. Building on this experience, the GP has catalyzed its APPROACH: The government of India has committed to innovative results-based approach, which disburses funds ending open defecation by October 2019. A $1.5 billion only upon the use of sanitation facilities, safe disposal of World Bank loan supports the Clean India Mission, which fecal matter, and functionality of toilets over time, based was launched in 2014 as the country’s largest effort to date on a protocol approved by an Expert Working Group. to improve sanitation. The Bank investment—designed To date, the Bank has assisted the federal government in to incentivize the states to permanently reduce open designing new protocols, developing performance incentive defecation and maintain cleanliness in villages through grant schemes, and tracking open defecation reduction solid and liquid waste management—aims to reduce the across blocks, districts, and states through independent number of people defecating in the open by 95 million. verification. Based on provisional results of the National Annual Rural Sanitation Survey,5 about 77 percent of the rural households have access to toilets. 5 The independent verification is ongoing and the final report is yet to be submitted. 32 Global Water Security & Sanitation Partnership – Annual Report 2018 GSG SPOTLIGHT: REVOLUTIONIZING WATER IN AGRICULTURE From agribusiness to smallholders, the farming industry is working to feed more people with more diverse and changing tastes. At the same time, water and temperature variability are increasing real and perceived water risks throughout the global food supply chain. Sustainable development of the agriculture sector will depend on better coordination between all water users, among others, farmers, governments, and the private sector. The Water in Agriculture GSG is pioneering three approaches to encourage innovation in food and water security. On a global scale, the Water GP is spearheading Water Videos and other advocacy pieces funded by the GWSP help Stewardship in Agriculture,6 a platform for collective action popularize the farmer-led irrigation initiative to bolster by agricultural stakeholders to manage risks by working innovative practices. at the watershed level. The initiative demonstrates how sustainability practices applied in the private sector can be Finally, the GWSP uses study tours to help task teams and supported through public incentive mechanisms, and how clients gain first-hand knowledge from around the world pricing and trade policies can promote more sustainable that improves the dialogue with clients, project designs, and use of water resources in food production. project performance. In FY18, the GP partnered with leading organizations to implement three tours on emerging topics. The GP, along with USAID, the African Development Bank, GWSP funds were critical to mainstreaming the study tours’ and the Chicago Council, supports farmer-led irrigation—a design, which significantly contributed to the quality of the policy, technology, and financing option that encourages knowledge exchange, as evidenced by the participants’ ratings. partnerships between farmers and the private sector. The initiative is helping persuade farmers to switch from high- cost, centralized public irrigation schemes to alternative solutions. Several regional events this year led to the signing of a formal statement on building inclusive and resilient, farmer-led irrigation by various African countries. Topic Location Global Solutions Group Comparative advantage Participant (GSG) partner rating Irrigation Central Valley, Irrigation Training & Research Drought management through a water 4.5/5 modernization California, USA Center (ITRC) at California transfer program that raised $30 Polytechnic State University, San million for modernization schemes Luis Obispo Sustainable Nebraska, USA Daugherty Water for Food 50 years of sprinkler and drylands 4.9/5 groundwater Global Institute, University of irrigation while protecting soil and management Nebraska, USA aquifers Value chain Puglia, Italy Italian Trade Agency The role of cooperatives in using 4.9/5 development technology to advance sustainable agriculture practices 6 The platform’s partners are the World Wild Life Fund, the International Food Policy Research Institute, the International Union for the Conservation of Nature, and Pegasys, South Africa. Global Water Security & Sanitation Partnership – Annual Report 2018 33 COUNTRY SPOTLIGHT: ETHIOPIA Inclusive, Sustainable Services Sanitation WSP’s technical assistance was instrumental in helping ADDITIONALITY: the government of Ethiopia develop an integrated urban WASH Poverty sanitation and hygiene strategy. This groundwork led to Diagnostics the design of a $445 million World Bank loan created to LEVERAGING Integrated urban improve existing onsite and sewer-based solutions, increase $650 million in WSS sanitation and FSM services, and expand decentralized wastewater investments hygiene strategy treatment plants. Citywide Inclusive Sanitation (CWIS) The GWSP is now helping cities implement the national approach strategy through the CWIS approach to ensure that fecal sludge is safely captured, transported, and treated in urban areas. A total of 23 utilities across the country were trained in the use of CWIS tools, materials, and approaches for the To increase institutional capacity, the GP is design of urban sanitation interventions. The national and helping establish training curricula in local international consultants hired to support the government colleges aimed at improving the operations and in implementing the project also received guidance on maintenance (O&M) and construction skills of CWIS approaches and principles. local private operators, technicians, and artisans. Technical assistance is also being provided to help develop skills in Water sanitation marketing and behavior change. Rural communities need knowhow to help The cost of constructing safely managed latrines maintain water facilities and expand access is often prohibitive for women, the poor, and to water services. The GP is helping to other disadvantaged groups. The GWSP will establish supply chains for spare parts, help to strengthen inclusion as part of a $205 procuring equipment and tools, and building local private million WSS and Hygiene Project to ensure everyone, and operators’ capacity. In addition, a pilot is currently specifically women, are “invited to the table” during planning underway to look at the viability of rural utilities working processes. Mechanisms to improve transparency will be across village clusters to achieve economies of scale. developed to ensure women’s participation in rural areas and small towns across nine regions. SELECT TARGETS • Number of nonfunctional water points reduced from 25% to 10% • 23 cities have established or are using nonrevenue water (NRW) data management systems • 976,000 people trained in improved hygiene behavior/sanitation • Wastewater collection, transport, treatment, and disposal capacity has been increased to 130,000 m3 per day. 34 Global Water Security & Sanitation Partnership – Annual Report 2018 INCLUSION Reaching the Underserved Global Advocacy: Menstrual Hygiene Management CHALLENGE: Water belongs to everyone and yet many people and groups remain excluded from its benefits. CHALLENGE: In many societies, taboos associated with Women, youth, the disabled, minority groups, and refugees menstruation, along with a lack of adequate water, sanitation, are among those that often lack representation in water and hygiene (WASH) facilities in schools and homes, limit asset ownership or management. Ensuring their inclusion the ability of women and girls to fully participate in society. requires a better understanding of the nature of water inequality and building stakeholder capacity to design When schools lack separate toilets for girls, receptacles for projects that aim to bring benefits to all. used sanitary products, or water to wash their hands, girls often skip school during their period. APPROACH: The Water GP’s social inclusion agenda promotes better project design and builds advocacy around APPROACH: The Water GP raises awareness around MHM two primary themes: gender and citizen engagement. The GP and helps clients incorporate MHM into their operations. has created an inclusion core team supporting staff working Projects in the Kyrgyz Republic and Haiti each have an across the five water business lines in the Bank’s six regions. MHM component. In Ghana, new research tracked WASH interventions in over 200 junior high schools across the ADDITIONALITY: GWSP has been critical to integrating Greater Accra Metropolitan Area to understand the impact new knowledge on inclusion into Bank operations. In of MHM on project results. The study is now informing FY18, a series of staff training events and a regional social the ongoing $150 million sanitation and water project, inclusion roundtable were organized, and guidance notes under which 24 sanitation facilities in 9 schools have produced to make it easier for task teams to learn from already been installed. Each facility has separate stalls for one another on how best to incorporate gender and citizen teachers, girls, boys, and people with disabilities, as well as engagement considerations in project design and delivery. changing rooms for girls. Project teams in several countries, including Benin and Egypt, ADDITIONALITY: May 28, 2018, marked Menstrual Hygiene have also received targeted GWSP support for inclusion. Day, when public and private stakeholders promote MHM To better address gender-based violence, a one-stop-shop advocacy to fight the stigma. Sandie Okoro, Senior Vice- grievance redress mechanism to resolve issues is being President and General Counsel for the World Bank Group, developed under a new $31 million quality-of-life project in Brazil. A $280 million refugee services program is targeting women fleeing violence from South Sudan, the Democratic GWSP supported MHM advocacy in collaboration with WASH United Republic of Congo, Burundi, and Somalia. Finally, a $27 through cartoons and the related million component to pilot a new land rights system to help social media messages sent from @ secure land tenure for subsistence smallholder farmers at WorldBankWater reached more than high risk due to potential climate change impacts was added 100,000 accounts. to a new project in Malawi. PORTFOLIO SHIFTS: PORTFOLIO INFLUENCE: PORTFOLIO RESULTS: • 32% of new knowledge and • 100% of new projects • 400,000 female farmers analytics activities support incorporate gender in all adopted improved inclusion three dimensions (analysis, agricultural technology action, and results) • 7.9 million women have gained access to improved water services Global Water Security & Sanitation Partnership – Annual Report 2018 35 joined the #NoMoreLimits campaign, bringing attention to WSP Evolution: MHM challenges through a video that was viewed more Mapping the Bottom Billion than 67,000 times on various social channels. CHALLENGE: Governments don’t always know the most Global Knowledge Corner effective way to allocate resources to the WSS sector to improve sector outcomes. When they are ready to implement sector goals, such as universal access to WSS A new report released this year, services, they first need to identify who still lacks services The Rising Tide: A New Look and where they live. at Water and Gender, reviews a vast body of literature WATER GP RESPONSE: The WASH Poverty Diagnostic and offers a framework for (WASH PD) Initiative provides a comprehensive analysis of visualizing water. Gender in WSS indicators to pinpoint specific regions that suffer from water can be seen in terms of inadequate services. Conducted in 18 countries, the WASH an asset (land, labor), a service PD sheds light on major disparities in access between rural (water, sanitation), and a space and urban populations and poor and nonpoor areas. The (city, school). Water is an arena initiative’s institutional analysis advocates understanding the where gender relations play out in ways that often mirror broader governance context in which services are provided. inequalities between the sexes. The report’s key message WASH PDs provide the data needed for stakeholders to is clear—interventions in water-related domains are work together to solve problems. Where solutions are not important in and of themselves and for enhancing gender obvious, the initiative advocates an adaptive approach to equality more broadly. allow stakeholders to learn through rapid cycles to identify “best fit” solutions. The comprehensive framework also The GWSP funded a guidance note: Including Persons informs national country strategies that underpin decisions with Disabilities in Water Sector Operations and launched about where and how clients will invest to achieve their a podcast on social inclusion: Let Everyone Reap the poverty reduction goals. Benefits of Water, as part of the World Bank’s Water World podcast series. ADDITIONALITY: The WASH PD is a WSP flagship product and similar types of analyses are being carried out in countries with GWSP funding, including Angola, Niger, Globally, more than 1 billion people, and the economy of West Bank and Gaza. The resulting data bring a fresh lens to poverty, enabling different sectors and approximately 15 percent of the world’s institutions to collaborate. Not only have these analyses population, have disabilities. Of those, spurred several large-scale loans, but they also offer tools and entry points that ignite communication among 80 percent live in developing countries.  governance, poverty, health, and water practitioners. Country WASH PD findings Influence Broader impacts Nigeria Over 60% of the rural population Inspired the government to declare a water Supports a National WASH live more than 30 minutes away emergency and request $700 million in new Fund to expand service to the from a working water source WSS lending underserved Tanzania 20% of rural water points are Is informing preparation of a new $350 million Enables Water GP collaboration nonfunctional after one year in results-based program including the first with Health, Nutrition, and service major investment in rural sanitation with a Population GP colleagues focus on functionality toward an Early Years Initiative Ecuador 20% of household drinking water is Piloted one of the first water quality tests for Is informing the methodology contaminated with E. coli. The health SDG 6 with Joint Monitoring Programme (JMP)/ for global SDG monitoring with risks extend to 1 in 8 urban households United Nations Children's Fund (UNICEF) and JMP/UNICEF and 1 in 3 rural households. the National Institute of Statistics 36 Global Water Security & Sanitation Partnership – Annual Report 2018 COUNTRY SPOTLIGHT: BENIN Replicating a Proven Model: Regional Private Operators Despite high rates of poverty and slow GDP growth, Benin achieved the water MDG in 2015 with 1.4 million people gaining first-time access to improved water ADDITIONALITY: services in rural areas. But the scale of the SDG challenge 5 years of capacity building for sector looms large: in the rural sector alone, and taking account LEVERAGING institutions of population growth, 5.5 million will need to receive $288 million improved water services by 2022. for rural WSS Replication of best practices from $68 million for Senegal The country has embarked on significant institutional WSS reform reforms to recentralize the supervision responsibilities of Laying groundwork for water services and adopt Senegal’s successful delivery model affermage contracts using affermage contracts7 for regional private operators. In pursuit of these goals and with five years of WSP institutional support, two new projects worth over $350 million began implementation this year. The first, AQUA- GWSP also supports the government in VIE, represents half of the government’s planned investments preparing the groundwork for the affermage for rural water, at $288 million. The second, the Benin contracts. First, GWSP support to the in- Small Town Water Supply and Urban Septage Management country dialogue led to the signing of 74 Project (PEPRAU), supports 60 more water supply systems framework partnership agreements between rural agencies, countrywide. The $68 million loan includes $2 million for municipalities, and the Ministry of Water and Mines—the a private water operator guarantee fund to help operators first step toward sector reform. GWSP-funded work is also secure a subsidized concession to access commercial finance. supporting the preparation and approval of a new tariff policy based on global best practices and new analyses to The GWSP provides support to the task team on a host of underpin key decisions on water rate changes. And toward issues critical to the projects’ success, such as promoting the MFD agenda, GWSP is now helping private water inclusion and access to commercial finance. operators identify commercial financing opportunities, and prepare new bidding documents to jump-start the The government recognizes that greater solicitation of the affermage contracts. inclusion of women in rural water service planning, supervision, and delivery is needed. Women currently play a very limited role due SELECT TARGETS to cultural factors and entrenched traditions. To help identify opportunities for women, GWSP funded an initial • 80% of customer grievances are gender-gap assessment that led to the integration of registered gender-specific activities and results indicators that include • Tariff policy effectively applied targets for female representation in decision making and • 1.8 million people to gain access to training benefits specifically for women. Follow-up work is improved water services in rural areas also planned to explore the provision of study grants and by 2024 internships to build women’s capacity. • 350,400 people will benefit from improved urban sanitation facilities. 7 In the affermage type of arrangement, an operator is responsible for operating and maintaining the infrastructure facility (that already exists) and providing services but is generally not required to make any large investment.  Global Water Security & Sanitation Partnership – Annual Report 2018 37 FINANCE Maximizing Finance for Development (MFD) CHALLENGE: SDGs 6.1 and 6.2, expected to cost $1.7 in water and sewerage for Baghdad. A public–private trillion globally by 2030, can only be met with more partnership (PPP) framework has been signed between coherent financing strategies that combine public and the Iraq Ministry of Planning and IFC. GWSP funds private sources. were used to define a roadmap for improving commercial performance, creating the enabling APPROACH: The World Bank Group’s MFD approach environment, and strengthening local capacity seeks to use public resources more effectively to crowd in for private sector participation  (PSP). Additional new sources of private finance and service delivery models collaboration with IFC and the Multilateral toward meeting SDG 6. Investment Guarantee Agency (MIGA) concluded that there are opportunities for innovative financing, ADDITIONALITY: MFD is completely aligned with GWSP’s including blended finance through performance-based financing agenda, which is complementing the work of contracts and Build-Operate-Transfer transactions. other donors as they support new sources of finance. GWSP-funded research identified the two foundational • In Kenya, following creditworthiness assessments of issues that keep many service providers in low- and middle- utilities—among others, of Nairobi Water—a total income countries from attracting commercial finance: (i) of 50 transactions raised $25 million in commercial their weak technical and financial efficiency, caused by a capital, including finance from four domestic banks. lack of incentives to improve performance; and (ii) the Subsequent efforts with Nairobi Water to leverage an lack of clear and transparent sector governance, and the additional $6 million loan failed to advance because policy and institutional environments in which providers the financial assessment concluded that no new debt operate. Water GP advocacy has helped build consensus could currently be accessed. However, by laying out around “what” the foundational challenges are by driving the challenges, including more transparent governance the agenda in international forums. arrangements, GWSP and other forms of donor support are helping the utility get back on track. The GWSP also helps individual service providers address their constraints by improving efficiency, working toward ADDITIONALITY: Once service providers have reached creditworthiness, and ultimately accessing commercial financial sustainability, GWSP funding can support finance, as illustrated in Peru, Iraq, and Kenya. a dialogue to bolster private sector interest, such as is happening in Somaliland or to support the use of • In Iraq, the Water GP worked closely with the innovative platforms and technologies in the design of International Finance Corporation (IFC) and the financial transactions, as is being done in Benin, Indonesia, government to design a new $210 million investment and Tanzania. PORTFOLIO SHIFTS: PORTFOLIO INFLUENCE: PORTFOLIO RESULTS: • 550 clients and staff • 77% of new projects • 27 utilities have an improved trained on water finance support reforms/actions for working ratio and creditworthiness in 20 improving financial viability countries • 23% of new knowledge and analytics activities support finance 38 Global Water Security & Sanitation Partnership – Annual Report 2018 GOAL UNIVERSAL AND SUSTAINABLE WSS SERVICE DELIVERY Commercial Finance APPROACH Creditworthiness Efficiency and cost recovery FOUNDATION Governance and Performance Institutional incentives arrangements Indonesia: Targeted Toilet Subsidies Tanzania: Technology Lowers Costs for Rural Water Operators CHALLENGE: Provide rural sanitation access to the bottom 40 percent and prevent slippage in open defecation levels. CHALLENGE: Rural water service providers need to reach greater financial sustainability to expand or improve APPROACH: A WASH Poverty Diagnostic showed that the service quality. government’s no-subsidy policy was making it impossible for the poor to purchase a toilet. Bank support for the APPROACH: Demonstrate the benefits of a transition to community-led total sanitation approach demonstrated solar-powered pumping and prepaid meters to reduce the need for a hardware subsidy and enabled fragmented long-term operational costs and increase revenue. stakeholders to collaborate toward uptake of sanitation solutions. ADDITIONALITY: GWSP funds were used to enable 150 rural water utilities to participate in a new project that ADDITIONALITY: GWSP supported the development of will provide a 4-year loan from the TIB Development a “smart sanitation financing” platform that identifies Bank (a government-owned development bank in needy households and tracks the use of public funds. Tanzania), covering 40 percent of the capital cost of The platform is equipped with an IT system that uses By- both technologies, and a $4.8 million grant from the Name-By-Address data and served to identify the poor in Global  Partnership  on  Output-Based  Aid (GPOBA) to 19 villages across 8 districts. The work supports a $1.4 cover the remaining 60 percent. Private service contracts billion investment that uses a nationwide community- will be used for maintenance. The cross-sector nature of driven approach to increase WSS access. The Ministry of this work benefited from collaboration with private sector Health Regulation revised the national rural sanitation technology providers and leveraged funding from WSP, policy so that the government could redirect funds to GWSP, the Energy Sector Management Assistance Program ensure the poor can afford to purchase a toilet. The task (ESMAP), and the Nordic Development Fund. Moreover, team is now collaborating with Water.org to provide the GWSP work informs the $350 million program that technical assistance regarding toilet credit payments to includes private sector participation in O&M for rural microfinance institutions. water supply. Global Water Security & Sanitation Partnership – Annual Report 2018 39 WATER AND FRAGILITY: BRINGING DOMESTIC BANKS TO THE TABLE The autonomous region of Somaliland is one of the poorest and most fragile in the world. The European Union (EU) is providing a grant to increase the capacity of the Hargeisa Water Agency (HWA) to transfer water to Harageisa City. First, however, medium-sized investments are needed to optimize operations so that the additional water translates into higher profits for HWA. GWSP and PPIAF funded a financial analysis that showed how small commercial improvements and better collections could increase revenue by $300,000 per month. Adding new boreholes or reducing energy consumption would yield immediate returns and the surplus generated from these investments could provide the cash flow required to service other commercial debt. On the private side, the GP is supporting a domestic lender, Dahabshiil Bank, to better understand the potential risks and benefits of backing such investments. Despite external shocks, including rising energy prices and local currency depreciation, HWA has drafted a new performance-based contract to hire a local engineer to design an energy optimization scheme. By taking steps now to get on the right financial footing, HWA will be ready to market its improvements to the domestic banking sector once the macro environment has stabilized. Sanitation Loans Reduce Open Defecation Noor Aysha was raised in a poor family in the Chittagong District of Bangladesh. She never went to school and was married by the age of 12. After having seven children, Noor Aysha’s husband left her. She became a domestic worker and wood cutter, living in a small shack on her father’s land. Having practiced open defecation for most of her life, she was introduced to safe water and sanitation practices in 2017 at a meeting of the Utshad Women’s Society near her home. Noor Aysha became interested in the benefits of a latrine. She took out an interest- free sanitation loan and received assistance in constructing the latrine from the partner organization’s field officer under the World Bank project. Today, at the age of 68, Noor Aysha and her family practice safe sanitation and regular handwashing, which has reduced illness among herself and her family members. She repays her loan installments with the income from her wood cutting and has come to realize that “safe latrine means a prosperous life.” 40 Global Water Security & Sanitation Partnership – Annual Report 2018 COUNTRY SPOTLIGHT: BANGLADESH Microfinance at Scale: Better Toilets for over 850,000 people The Water GP—through GWSP, WSP, and GPOBA—has The third, most imperative contribution, was leveraging leveraged Bangladesh’s thriving private sector and well- private finance to make and pay for the products. Loans established microfinance industry to grow one of the most were provided to poor, rural households to enable them to successful sanitation microfinance schemes in the world. buy a new toilet; 21 local microfinance institutions (MFIs) The GP’s unique approach encourages private companies offered a total amount of $21 million in microfinance to meet the growing demands of the poor—an underserved loans. Moreover, a $3 million GPOBA grant provided market segment waiting to be tapped. an output-based subsidy of between 10 and 12.5 percent to make latrines affordable for poor households after GWSP funds were used to close the enormous their construction. Thanks to the support of GWSP and sanitation gap in three ways. First, task teams GPOBA, more than 850,000 people benefited from these encouraged private providers to enter the sanitation improvements. market with quality sanitation products and services by helping design toilets and subsequently produce The program’s success in terms of building demand for more and promote those products. Second, the team helped to and better products yielded two additional results. MFIs create sufficient demand by raising households’ awareness provided another $1.34 million in loans to more than 1,030 of the benefits of improved toilets and their maintenance local entrepreneurs to expand their market share. Second, requirements. This work is the culmination of several years a large public finance institution, Palli-Karma Sahayk of trust-funded support, starting with the WSP’s Domestic Foundation (PKSF), recently approved a policy to introduce Private Sector Development Initiative. sanitation loans for all their potential MFI borrowers. GWSP INVESTMENT Sanitation MFIs Private customers entrepreneurs 2,500 staff in 21 microfinance institutions 5,000 demand- (MFIs) trained in sanitation marketing 2,000 trained in creation sessions toilet production, to trigger behavior business skills, change Leverage: $25.3 million and market in additional funding promotion 170,000 houses $21 million $3 million in $1.3 million 1,000+ expanded with a hygienic product sales in loans output-based in loans toilet subsidy (GPOBA) These results have prompted a request from the government of Bangladesh for a $300 million Bank lending operation to go to scale with this approach. Global Water Security & Sanitation Partnership – Annual Report 2018 41 INSTITUTIONS Understanding Incentives for Change CHALLENGE: Experience shows that strong institutions— Second, the Policy, Institutional, and Regulatory (PIR) both those that are mandated to deliver services and Incentive Initiative, a partnership between the Water and those that frame the enabling environment—lead to Governance GPs, helps teams gain deeper insight into strong development outcomes, but countries often fail to the role of institutional dynamics in achieving sector understand what factors contribute to institutional strength. outcomes. The global report Aligning Institutions and Moreover, institutions can help countries reach the SDGs in Incentives for Sustainable Water Supply and Sanitation a second way, provided they themselves can attract external Services sets a framework for analyzing PIR incentives and finance sources to fund the necessary investments. offers recommendations for designing incentives that can be applied in any country context. The report, published APPROACH: Within the context of the MFD approach, the in 2017, has already led to an uptake in the new approach GP has invested in two new global initiatives that respond across the World Bank. to the need to bolster clients around two foundational issues: (i) performance incentives and (ii) institutions/ ADDITIONALITY: The GWSP has supported the governance. Both these frameworks analyze strengths and development of both frameworks and their application weaknesses across and within sector institutions. First, the around the globe. A selection of the results from Latin GP has created a Utility Turnaround Framework (UTF) that America demonstrates how PIR analysis supports systematizes the way performance is assessed and yields a comprehensive sector reforms (table below). short-term, tailored improvement program for the utility. The UTF has been piloted in Peru, Botswana, and Vietnam. Geography GWSP contributions Key recommendations for clients South America Briefing note provides first regional application Interventions should be context-specific and work of the global PIR framework in 5 countries within the prevailing PIR environment Argentina Analysis of federal dynamics on the PIR Need for a holistic approach to PIR that can help link structures; dialogue to inform implementation financing with policy objectives and measure progress of the new National Water and Sanitation Plan comparatively across provinces Paraguay Policy recommendations for WSS sector reform Creation of a Vice Ministry of WSS; a new wastewater treatment and reuse policy; strengthening of the role of the sector regulator Peru Support to implementation of regulatory reform Preparation of an issues paper to incorporate lessons program, including extending regulator’s learned mandate to include payment for environmental services, among others, and its participation in Peru’s accession to OECD process PORTFOLIO SHIFTS: PORTFOLIO INFLUENCE: PORTFOLIO RESULTS: • 42% of new knowledge and • 100% of new projects • 4,900 water user associations analytics activities support support reforms or actions created or strengthened institutions that strengthen institutional • 30 institutions with water capacity resources management (WRM) monitoring systems 42 Global Water Security & Sanitation Partnership – Annual Report 2018 In Peru, the GWSP supports a National Turnaround SEDAPAR, the water and wastewater utility serving Program that applies concepts from the PIR global the city of Arequipa. The study found that SEDAPAR is framework and the UTF at both national and local levels. sufficiently creditworthy to access commercial finance GWSP funding is now being used to strengthen the national for the NRW program costs but recommends that a debt regulator, SUNASS, to comply with its new mandate for management policy be prepared first. As a result, the utility rural services and to shift from tariff regulation to economic and the national regulator have requested Bank support regulation. Support has included a south-south exchange for the preparation of a new master plan for 2020–24, with Colombia to learn about the latter’s experiences in which would include a new tariff proposal to enable the calculating tariff rates and in managing operator data to utility to service long-term commercial loans. This work help the country meet progressive service standards. also leverages a $100,000 Public-Private Infrastructure Advisory Facility (PPIAF) grant to support progress on the GWSP funds are also helping utilities prepare model NRW program. utility turnaround programs for local piloting. Under the finance theme, GWSP funded a NRW strategy for Global Water Security & Sanitation Partnership – Annual Report 2018 43 Building Institutional Bridges in Uzbekistan CHALLENGE: To improve the quality of WSS services ADDITIONALITY: GWSP provided funding to design the across Uzbekistan, the government in 2016 merged very first integrated 5-year service delivery improvement urban and rural service providers into suvokas (state- plan for a utility in Uzbekistan. The team also benefited level enterprises), whose assets are jointly owned by from additional resources to support the Ministry of regional and local governments. However, to benefit from Housing and Communal Services, which oversees the economies of scale and boost their financial sustainability, utilities, in enhancing regulatory capacity and monitoring the 14 newly created suvokas will need significant support. of utility performance. APPROACH: Three ongoing Bank loans with a total value The government has used these experiences to help of $394 million are used to support various aspects of design national policies on tariffs, PPPs, and monitoring the sector reform program. Water GP support is critical systems. Next year, the government plans to roll out to bridging the two institutional spheres: service providers similar improvement plans for all 14 regional utilities and and the national regulator. establish a sector financial model and systems for linking allocations to performance improvements. The new financial framework is in turn expected to start utilities on a path toward creditworthiness. 14 Regional utilities Ministry of Housing and Communal Services Piloted first 5-year integrated service delivery improvement Improved monitoring for better management of water resources plan Designed operational and financial model for the Tariff policy and sector financing strategies Samarakand Suvokova utility Professional development of staff Regulatory capacity Customer service improvements Strategic use of public-private partnerships (PPPs) 44 Global Water Security & Sanitation Partnership – Annual Report 2018 COUNTRY SPOTLIGHT: EGYPT New Sanitation Institutions Restore Citizen Engagement Egypt’s 2011 revolution demanded political change to promote more inclusive institutions and help rebuild the social contract between the country’s 92 million residents and their government. ADDITIONALITY: WASH Poverty Diagnostic In the WSS sector, the country is decentralizing services to the local level, which will bring customers closer to LEVERAGING Systematic planning $550 million for water service providers, enhancing accountability for services. This new for rural sanitation providers and the model requires the building of new water service providers national regulator and changes in the way national institutions such as the national water regulator function. These institutional Tools and approaches for citizen engagement changes are happening at a time when Egypt, which met its WSS Millennium Development Goals (MDGs) ahead of the 2015 target, is finding that services are far from meeting the SDG requirements. For example, rural sanitation is often provided through trenches, which increase pollution water service providers to track their progress over time— in densely populated areas, while urban service providers prioritizing the reduction in operating costs in the short remain dependent on high subsidies from the central term and improving services in the long term. government, with negative impacts on service quality. As part of supporting performance improvement, the A $550 million World Bank rural sanitation operation, GWSP has focused on building sector-wide capacity using a results-based approach, focuses on accountability, in procurement and contract management to achieve sustainability of service delivery, and performance of operational targets, especially in satellite villages in rural the water service providers. The program aims to help areas. This capacity building includes the establishment of providers become more financially sustainable over an Independent Panel for Bidders’ Complaints; training time to ease their dependence on government resources. for water service providers on the use of standard bidding GWSP supports institutional capacity-building efforts to documents and for the local construction industry on strengthen relationships between the national government, bid preparation; and support for the planning and start- the regulator, water service providers, and customers. up of a knowledge hub for procurement, construction management, and monitoring and evaluation (M&E) at GWSP carried out a capacity assessment as the American University in Cairo. part of the government’s annual “state of the sector” report, which will help the government To strengthen water service providers’ increase cost recovery and take a more accountability, the government established systematic approach to monitoring water service providers’ a High-Level Committee to oversee performance. GWSP supported the development of citizen engagement across the sanitation performance improvement action plans to help water sector.  Activities include reforming and expanding the service provider staff achieve operational, financial, complaints hotline mechanism, reaching out to citizens institutional, and citizen engagement performance targets. who are likely to be excluded from information, and These plans are to be used by the Egyptian Water Regulation training government and project staff in responding to Agency as it oversees the water service providers, and by the the needs of citizens. Global Water Security & Sanitation Partnership – Annual Report 2018 45 GWSP supports community outreach, particularly to women and other vulnerable groups. To help the water SELECT TARGETS service providers achieve their citizen engagement–related indicators in their respective performance improvement • Implementation of the annual action plans, GWSP has supported the rollout of a “citizen performance assessment (APA) report card” and provided training for specific providers. systems and achievement of threshold The experiences have been documented in a Knowledge scores and Learning Note—Integrating Citizen Engagement into • Establishment of 167,000 household Program Design: Egypt’s Sustainable Rural Sanitation connections in villages and satellites Services Program Experience—produced  in collaboration • Preparation and approval of a new with the Urban GP to highlight citizen engagement activities national tariff structure for WSS and inform the preparation of similar projects in the region. services 46 Global Water Security & Sanitation Partnership – Annual Report 2018 RESILIENCE A Framework for the Future CHALLENGE: The future is expected to bring more shocks and stresses, not only caused by climate change but also by adverse political and financial events. Governments are too often ill-prepared to respond to sudden threats, GWSP supports innovations in the use of remote putting at risk the life and livelihoods of their populations sensing tools. The OpenET digital platform as well as existing and planned infrastructure. and web applications aim to make low-cost evapotranspiration estimation more readily APPROACH: GWSP supports the GP in leading the resilience accessible to clients at all levels of capacity. The challenge, from catalyzing global expert advice on emergency platform takes advantage of cloud storage, satellite response to drought, to developing tools for building the imagery, and computing power, and leverages resilience of small island states, to developing frameworks for free algorithms in Google Earth Engine to run looking at long-term country and city challenges. periodically over large areas, providing clients with data to better measure hydrological conditions. ADDITIONALITY: In Kiribati, fresh water reserves are Bank experts, using knowledge gained through critical for the residents of South Tarawa, the capital city. GWSP-funded evapotranspiration applications in GWSP supported the preparation of the South Tarawa five river basins, are collaborating with academia, Water Supply Project by informing the design of collective policy makers, and web developers to translate water supply infrastructure; and defining the groundwater open source data for private and public use. reserve protection activities, appropriate water use, and conservation and hygiene awareness programs. The report will guide the government in maximizing the conservation with the aim of building stronger, safer, and more resilient and protection of the freshwater reserves and in building the infrastructure and societies. The framework is currently being resilience of the city’s water supply to future anthropogenic used in Mexico, Nepal, Kenya, Tanzania, and Peru. and climate-related threats. The GWSP also supports the completion of a rainwater harvesting scoping study, an • In Mexico, GWSP funding enabled the project team to urban groundwater study, a water resilience study, and a undertake a comprehensive analysis of water resources water use and perceptions sociological analysis. in the Valley of Mexico, where the Freshwater by Design Framework is being applied to the Cutzamala system. ADDITIONALITY: The Freshwater by Design Framework This work informed the preparation of a $296 million (formerly the Decision Tree) helps project teams and pipeline project to improve the system’s reliability and governments assess the risks and uncertainties associated strengthen the management of groundwater resources with climate change and their potential impacts on water in the Valley of Mexico. It will also be incorporated management and infrastructure, even under stress. It provides into one system-wide assessment to help Mexico City tools and options for conducting climate risk assessments improve its water security. PORTFOLIO SHIFTS: PORTFOLIO INFLUENCE: PORTFOLIO RESULTS: • 25% of new knowledge and • 75% of new lending projects • 3.7 million people live in analytics activities support are incorporating resilience areas covered by water risk resilience in their design mitigation measures • 54% of new lending • 22 basins have management commitments have climate plans change co-benefits Global Water Security & Sanitation Partnership – Annual Report 2018 47 • In Tanzania, the GWSP is helping improve water WPP Evolution: Dry Cities management to attain national economic development goals. This requires smart water allocation, reflecting the economic value of water, across various sectors. CHALLENGE: Nearly one quarter of humanity lives in In support of a new Land and Water Development countries of physical water scarcity. Governments face a Project, GWSP funded an institutional analysis, a host of emerging threats to their water security. Effective water valuation analysis, and a political economy management of water resources will be critical to analysis. The work is influencing $575 million in sustaining inclusive and sustainable urban water services active lending and the development of a $600 million across water-scarce regions. pipeline portfolio in water and energy. Moreover, the GWSP’s support helps strengthen institutions APPROACH: The World Bank’s WSC initiative, maintained and advance an innovation for development process, with GWSP resources,  serves as a connecting thread in collaboration with the World Economic Forum, among water-stressed cities. WSC, which began as the which focuses on monitoring and enforcement for “dry country” pillar of the WPP’s Integrated Urban Water resilient water allocation. Management Initiative, offers an integrated water approach that encapsulates political, social, and institutional dimensions. This initiative includes close collaboration with the Cooperative Research Center for Water Sensitive Cities, based in Australia. Together, partners provide study tours and training events for sharing lessons on experiences from wastewater reuse to aquifer rehabilitation. WATER IN FRAGILE CONTEXTS Perhaps nowhere in the world is the lack of resilience a greater threat to sustaining development outcomes than in fragile and conflict-affected (FCA) states. By 2030, half of the world’s poor are expected to live in fragile conditions, up from less than 20 percent today. The WSP funded four WASH PDs in three FCA countries—the Democratic Republic of Congo, Haiti, and Yemen—and the economy of West Bank and Gaza. The results are informing preparation of WSS projects in the Democratic Republic of Congo and Haiti. In September 2017, the Yemen team shared its results at the Cholera Conference held in Geneva. The recommendations of the WASH PD also led to a more detailed study on the role of private water tankers in supplying water to the two largest cities. The findings suggest that the reliance on tankers in Sana’a and Aden undermines the affordability of water, health, and environmental management, and that urgent action is therefore needed. 48 Global Water Security & Sanitation Partnership – Annual Report 2018 CAPE TOWN: THE CITY THAT (NEARLY) RAN DRY In 2017, Cape Town, South Africa, was approaching its third year of drought when it experienced its lowest rainfall in 200 years. By 2018, the largest dam (which serves half the city) was only 13 percent full. The mayor announced that Cape Town would be the first major city to run out of water. The South African National Treasury asked the World Bank to advise the city on what it could do to enhance water security. The GWSP leveraged its Water Expertise Facility and Water Scarce Cities Initiative (WSC) to quickly come up with short- and long-term recommendations—among others, the need to diversify water sources through small desalination plants, groundwater abstraction, and wastewater reuse schemes. And to ensure the planning and financing of these investments will be done properly, Cape Town was advised to restructure its institutional framework so that water can in future be managed in an integrated manner across jurisdictions. The good news is that Cape Town has not yet run dry, and it can leverage the urgency to make the drastic changes needed to bolster its resilience. The Bank’s capacity to bring in the best global practices and expertise has helped decision makers transition from a reactive to a proactive approach to resilience. A Technical Deep Dive brought 35 client representatives and 29 Bank staff from 15 countries to Tokyo, where the governments of Spain, Japan, and Brazil showcased integrated solutions for urban planning. Interest from the event led to a second exchange to learn more about the experiences of two cities in Brazil. With funding from the GWSP and the South-South Facility, a delegation of 40 people from Ghana, Ethiopia, and Indonesia studied various Brazilian approaches to addressing climate change impacts. Moreover, the experiences of 20 dry countries in five regions have been synthesized in the newly published report Water Scarce Cities: Thriving in a Finite World, ADDITIONALITY: GWSP funds have been mobilized for which aims to help governments shift mindsets about quick response to the growing level of interest—from all urban water provision. The WSC team has been providing corners of the globe—in managing scarcity in cities. In operational support based on this report to clients in FY18, the Water Urban GPs cofunded two knowledge Lebanon, Algeria, Oman, and Iraq through workshops exchanges. and discussions with platform partners. Global Water Security & Sanitation Partnership – Annual Report 2018 49 COUNTRY SPOTLIGHT: VIETNAM A “One Water” Approach to Enhance Sustainability Rural Functionality Despite $1.5 billion invested by the National Target Program, sustainability of WSS services remains a major ADDITIONALITY: constraint to achieving SDG 6. In rural areas, an estimated WASH Poverty 60 percent of access points are either not functioning or Diagnostic underperforming. National Target Program targets were LEVERAGING Utility Turnaround geared toward infrastructure design and construction $1.12 billion in WRM Framework and failed to consider institutional arrangements for and WSS ongoing and pipeline investments Water Governance monitoring services or financing long-term O&M costs. Study Today, the financial sustainability of operators is hindered Draft decree for rural by low demand for piped water and an unwillingness to O&M charge for services at cost recovery levels. A $225 million results-based program is being implemented in 21 provinces in Vietnam to scale up access to rural water and A proposed $445 million Mekong Regional Water Security sanitation. GWSP funds are being used to Project will help finance a bulk water supply scheme in the address sustainability in two dimensions. First, to define Mekong Delta to move the source upstream, to less saline institutional roles beyond construction, the GWSP areas, which entails a higher cost to distribute the water supported the Ministry of Agriculture and Rural to the provinces. GWSP resources have been deployed to Development in drafting a decree to clarify responsibilities support this project in two vital ways: by (i) garnering for the O&M of centralized rural water schemes, expected public buy-in for challenging institutional reforms and (ii) to be approved next year. Complemented by a review of bolstering the capacity of the implementing agency. PSP in rural water, the decree is helping the government strengthen the enabling environment under which The GWSP funded the first comprehensive operators function, with the long-term aim of improving review of Vietnam’s water sector in a decade. the sustainability of services. The water governance study shows that a business-as-usual approach to escalating Urban Integration water demand and degrading water supplies is no longer feasible.  The report calls for integrating functions across Less than 40 percent of the population has access to piped jurisdictions and other steps for implementing the Water water supply in their homes. People living in the Mekong Act. The consultation process, which engaged many civil Delta are at heightened risk of losing current levels of access society and nongovernmental organizations, received as upstream dam development has increased salinity in the extensive media coverage, enhancing the public’s awareness aquifers near the delta. The government of Vietnam has of water security challenges. An action plan is now recognized the need for IWRM. However, despite a 2012 underway to accelerate the Act’s implementation, which Water Act, progress to put the legal framework for WRM will bolster results under the Mekong Water Security into practice has been slow. Management of resources Project. remains siloed within sectors or provincial boundaries, where environmental enforcement remains weak. 50 Global Water Security & Sanitation Partnership – Annual Report 2018 The GWSP has also supported a pilot SELECT TARGETS application of the Water GP’s UTF in the provincial utility Can Tho Water Supply and • 105,000 households have access to Sewerage Joint Stock Company, a potential sustainable water systems implementing partner in the Mekong Water Security • 630 new communes benefiting from Project. The resulting maturity assessment and commune-wide sanitation implementation plan provide a strategic approach to • 50% of operating costs for wastewater improving performance in just one year, from improving management in Ho Chi Minh City customer satisfaction with services to creating long-term covered by customer fees financing strategies. Global Water Security & Sanitation Partnership – Annual Report 2018 51 52 Global Water Security & Sanitation Partnership – Annual Report 2018 4 ACHIEVE RESULTS GWSP funds are invested to help shift the overall water portfolio toward more sustainable investments. While the Water GP has always promoted sustainable project operations, the GWSP strengthens that objective by providing a clear incentive structure for staff and World drives synergy, raises efficiency, and demonstrates the additionality of GWSP funds—or the added value that could not be achieved with World Bank resources alone. As presented in chapter 2 and illustrated in chapter 3 through Bank client country governments—the borrowers and select examples, the GWSP responds to client demand across grant recipients of World Bank funding. Under this new the five business lines by investing in five priority themes, results framework, all task teams are guided to demonstrate besides focusing on a subset of countries for experimental how their programs are enhancing sustainability. learning (country spotlights). The GWSP results framework has thus been built around these three core elements, as shown The GWSP’s results framework integrates knowledge below. Results are aggregated across all GWSP activities and and analytics activities into lending operations. It reported along three Blocks: A, B, and C. GWSP's Results Framework: Priority Themes, Business Lines, and Countries THEMES COUNTRIES RESULTS FRAMEWORK A B Sustainability C Inclusion INTERMEDIARY OUTCOMES OUTCOMES IMPACT Institutions GWSP WB PROJECTS COUNTRIES Financing Resilience WATER GP LENDING & KNOWLEDGE WATER SUPPLY WATER IN WATER SECURITY & INTEGRATED HYDROPOWER WATER, POVERTY & SANITATION AGRICULTURE RESOURCE MANAGEMENT & DAMS & THE ECONOMY 3 Global Water Security & Sanitation Partnership – Annual Report 2018 53 Block A: GWSP-Supported Knowledge In FY18, progress has been made across all five priority and Analytics themes. As shown below, for example, 71 percent of new knowledge and analytics activities are expected to deliver on sustainability targets by 2022. Thus far, 46 percent This block tracks the results that are directly achieved have already reported progress. The remaining 25 percent by the knowledge and analytics funded by GWSP. It are expected to deliver on their sustainability indicators comprises global, regional, and country analyses, as well before 2022. Moreover, the 5-year target will be adjusted as the technical assistance provided to World Bank client as additional activities are added in subsequent years. counterparts. Most GWSP activities are multiyear tasks and cross-cutting in nature and therefore often contribute Block B: Water GP Outcomes to results across several of the five GWSP priority themes. Block A results are tracked annually and supplemented by This block tracks partnership influence on the results of qualitative analyses and narratives, as illustrated in chapter World Bank lending. It does this in two ways. Firstly, by 3 of this report. The chart below shows, in aggregate, the tracking inputs to mainstreaming the five themes in water percentage of new knowledge and analytics activities that lending operations. Select indicators are provided in the are expecting to deliver, and are delivering, on one or more chart on the following page. The complete table of block priority theme indicators. A complete list of the indicators B indicators, targets, and FY18 progress is presented in by theme, as well as the targets and progress made are annex B. presented in annex B. BLOCK A: PROPORTION OF NEW KNOWLEDGE AND ANALYTICS ACTIVITIES THAT SUPPORT THE GWSP PRIORITY THEMES 100% 80% 60% 40% 20% 0% Sustainability Inclusion Institutions Financing Resilience FY18 progress 5-year target 54 Global Water Security & Sanitation Partnership – Annual Report 2018 BLOCK B: PROPORTION OF NEW KNOWLEDGE AND ANALYTICS ACTIVITIES THAT CONTRIBUTE TO: 100% 80% 60% 40% 20% 0% Sustainable & Other Reforms/actions Reforms/actions Resilience in Climate efficient water use social inclusion that strengthen for improving design of change aspects institutional financial viability water-related co-benefits capacity initiatives FY18 progress 5-year target Note: Other social inclusion aspects refer to projects that target the poor, and vulnerable or underserved communities or areas. They exclude citizen engagement, which is reported on as part of corporate monitoring. Secondly, via the results of ongoing lending operations, Block C: Country-Level Outcomes most of which were influenced by WSP, WPP, and GWSP- funded activities. The complete table of block B indicators, targets, and FY18 progress is presented in annex B. Some The GWSP is a demand-driven program that engages select indicators are the following: with clients worldwide. To help strengthen the overall impact of future GWSP interventions at the country • 15.7 million additional people now have access to level, the partners have agreed to direct some resources improved water services, 7.9 million of whom are toward experimental learning in a subset of countries. female; The purpose of this is to test innovative interventions and • 11.5 million additional people now have access to approaches to shift the trajectory of a country’s outcomes improved sanitation services, 5.7 million of whom are so that the resource impact is maximized. The partners female; also aim to discover how the future water portfolio can • 2 million farmers are adopting improved agricultural be restructured to elicit greater client demand for WRM technology, 400,000 of whom are female; interventions, more integrated approaches, and greater • 4.3 million people have been trained on hygiene prioritization of the five GWSP themes. behavior, 2.1 million of whom are female; • 1.8 million water users have been provided with The GWSP has identified nine countries where the improved irrigation and drainage services, 500,000 of partnership will invest strategically: Bangladesh, Benin, whom are female; Bolivia, Egypt, Ethiopia, Haiti, Pakistan, Uganda, and • 3.7 million people live in areas covered by water risk Vietnam.8 These “Block C” countries (referring to their mitigation measures. progress as tracked in Block C of the results framework) 8 Block C countries may change in future years and reporting is not limited to the nine priority countries. In addition, as agreed by the GWSP donors, for any given block C country, key results areas and indicators may evolve over time as a result of changing client priorities. Global Water Security & Sanitation Partnership – Annual Report 2018 55 are expected to see large-scale World Bank engagement in the next five years, and are thus primed for investing BLOCK C HAS THREE REPORTING CYCLES: GWSP resources in an investigative manner. The GWSP has an agreement with partners to allow flexibility in • Baseline (FY18) country choice to accommodate exogenous uncertainties. • Mid-term (FY20) • End-term (FY22) Block C tracks the combined effect of both lending and nonlending interventions at the country level. A results For FY18, qualitative stories for five focus matrix was completed for each country based on proxy countries can be found in chapter 3, under indicators (annex B). The indicators are categorized into “country spotlights,” one for each of the results areas and include a baseline and a target. Indicators five themes. and targets are pulled from ongoing and expected World Bank operations across the water business lines. Therefore, indicators are unique to each country and may evolve to Subsequent qualitative and quantitative assessments will be reflect shifts in government priorities. conducted at the mid-term (FY20) and end (FY22) of this GWSP funding cycle. This year, the program is reporting on block C through a series of qualitative country highlights to demonstrate the evolving strategy and GWSP’s expected role in targeted sector outcomes (chapter 3). Block C: Indicative Country-Level Metrics BANGLADESH BOLIVIA BENIN Key Focus Outcome Key Focus Outcome Key Focus Outcome Area Area Area Urban Monitoring and Urban Policy/legal framework Rural Water Policy / legal framework Sanitation evaluation strengthened Sanitation Targeted planning and Accountability toward Human resources investment customers and organization Rural Water Targeted planning and Inclusive management development investment and service delivery Accountability towards Inclusion-focused Financial sustainability customers monitoring and of service providers: Urban Operational evaluation sustainable revenue Water effectiveness sources Resilient investments Inclusion-focused Rural Investment planning  IWRM Sector planning and monitoring and Sanitation and delivery system design evaluation  Rural Leveraged funding from Sanitation private financial sector 56 Global Water Security & Sanitation Partnership – Annual Report 2018 EGYPT ETHIOPIA HAITI Key Focus Outcome Key Focus Outcome Key Focus Outcome Area Area Area Rural Regulation Rural Operational Rural Water Monitoring and Sanitation Sanitation effectiveness evaluation Monitoring and evaluation Human resources Human resources and organization and organization Management Autonomy development development and leadership Urban Water & Operational Financial sustainability Human resource Sanitation effectiveness of service providers: and organization sustainable revenue development  Urban Targeted planning and sources Sanitation investment (by actors Accountability toward influenced by WB) Financial sustainability customers of enabling institutions Rural Water & Targeted planning and Inclusive management at national and local Sanitation investment (by actors and service delivery levels influenced by WB) Financial sustainability Rural Sector planning and of service providers Sanitation system design Rural Water Investment planning & Sanitation and delivery UGANDA VIETNAM PAKISTAN Key Focus Outcome  Key Focus Outcome Key Focus Outcome Area Area Area Rural Water Operational Rural Policy / legal framework Rural Water Monitoring and effectiveness Water evaluation Operational Rural Targeted planning and effectiveness Inclusive management, Sanitation investment and service delivery (by Financial sustainability actors influenced by WB) Urban Investment planning of service providers: Sanitation  and delivery   sustainable revenue Financial sustainability sources of service providers: IWRM Investment planning sustainable revenue and delivery Rural Leveraged funding sources Sanitation from service users Urban Water  Accountability toward Urban Management autonomy (households, community customers Water and leadership groups, industrial, public Operational administrations and Targeted planning and effectiveness other users) investments (by actors  Urban Financial sustainability influenced by WB) Sanitation of service providers: IWRM Monitoring and sustainable revenue evaluation sources Policy, legal, and IWRM Leveraged funding from regulatory frameworks private financial sector for sustainable water Policy, legal, and resource management regulatory frameworks Sector planning for sustainable water resource management Global Water Security & Sanitation Partnership – Annual Report 2018 57 MOVE Forward issues between investments. The WSP model proved that the field staff’s ability to continually boost country institutions’ capacity had an invaluable impact. The The GP aims to become the partner of choice for clients model helps institutions withstand the detriments of short and donors who want to be the game changers in the water political cycles and shifts in leadership priorities over time. sphere. With its current funding envelope,9 the GWSP Moreover, GP staff can bring global knowledge to new partners plan to continue investing across all five priority administrations quickly, helping sustain the momentum themes. Over the next year, the GWSP will enable the GP needed for reform. to expand its impact and support deeper contributions toward two critical needs: finance and technology. In FY18 the GP mobilized more female and decentralized staff, especially in FCA countries. Additional funding would Disruptive technologies have the potential to advance help expand staff levels to the GP’s full capacity—about 310 outcomes if they are properly integrated into country-based water professionals. delivery systems through World Bank lending operations. The GP, a pioneering member of the OpenET platform, is already piloting low-cost remote sensing applications Conclusion in five river basins to better estimate floods, crop yields, groundwater availability, and water quality using satellite data. With a technology strategy in the works, the GP In its inaugural year, the GWSP has set a firm foundation will expand the use of its water data platforms (IBNet — from selecting priority themes to formulating baselines and SIASAR),10 while developing new analytical work — for the next four years of donor support to the on the fintech market, utility modernization in the 21st water security agenda. Not only has the GWSP helped century, and mechanisms to scale up innovative sanitation maintain the continuity of WSP and WPP initiatives, it solutions. has supported the GP in forging a new path to 2030 by emphasizing sustainability across investment selection The second innovation will be through connecting the and sector outcomes. thread between global advocacy on financing the SDGs, and local transactions at the country level. Next year, the Progress thus far shows that the Water GP, and other Water GP will marry the two initiatives of valuing water at sectors within the World Bank, are influencing clients, the global level and maximizing finance for development who are in turn shifting their demand toward more (MFD) by conducting a global flagship study on subsidies— integrated, robust and results-oriented programming. And looking at the incentives and disincentives generated by as the GWSP’s influence on Bank lending grows, clients country subsidy policies and how they change the way worldwide will continue to experience for themselves how people value and use water. global “knowledge in implementation” yields stronger institutions that can deliver better and more sustainable Moreover, securing additional resources would boost the development outcomes. number of in-country staff. Long-term staff presence in a country enables the GP to remain engaged on water 9 Commitments made to the GWSP by its 10 donors as of June 30, 2018, totaled $118 million. The anticipated overall contribution is $200 million over the course of the 5-year program, leaving $82 million yet to be committed. 10 IBNet (International Benchmarking Network for Water and Sanitation Utilities) offers direct access to the world’s largest database on WSS utilities’ performance. SIASAR (Spanish acronym for Rural Water and Sanitation Information System) is a platform designed to assist water sector policy makers, practitioners, and national planners in monitoring the development and performance of rural WSS services.  58 Global Water Security & Sanitation Partnership – Annual Report 2018 ANNEX A: FINANCIAL UPDATE GWSP Donor Commitments 40% 35% 30% 25% 20% 15% 10% 5% 0% Netherlands Sweden Australia BMGF Swiss Swiss Rockefeller Norway United Irish - DGIS - Sida - DFAT - SDC - SECO Foundation - MFA Kingdom Aid - DFID New contribution WSP rollover WPP rollover The GWSP was designed as a 5-year program for its first GWSP Donor USD phase. In alignment with the program’s objectives, the (millions) GWSP anticipates commitments for the 2018–22 period to Netherlands - DGIS 39.34 total $200 million. As of June 30, 2018, eight donors had contributed $111.43 million in new funding to GWSP and Swedish International Development 28.43 Cooperation Agency (Sida) the remaining $6.15 million in WSP and WPP funds from two partners was rolled over into GWSP. The program strives Australia – Department of Foreign Affairs and 19.08 Trade (DFAT) to raise an additional $82.42 million from existing or new donors to reach the anticipated $200 million commitment. The Bill & Melinda Gates Foundation (BMGF) 10.00 Swiss Agency for Development and 8.14 Cooperation - (SDC) Amount ($, millions) Swiss State Secretariat for Economic Affairs 5.46 (SECO) GWSP funding goal (2018–22) 200 Rockefeller Foundation 3.00 New commitments 111.43 Norway – Ministry of Foreign Affairs (MFA) 2.37 WSP rollover 3.98 United Kingdom - (DFID) 1.74 WPP rollover 2.17 Ireland - Ministry of Foreign Affairs (MFA) 0.02 Total donor commitments 117.58 TOTAL COMMITMENTS 117.58 GWSP funding gap 82.42 Note: DFID = Department for International Development; DGIS = Direc- torate-General for International Cooperation. Global Water Security & Sanitation Partnership – Annual Report 2018 59 FY18 Allocations The GWSP has not yet raised its entire anticipated Through June 30, 2018, $35.28 million had been allocated commitment from partners and start-up implementation to GWSP work program activities.1 More than two has been scaled accordingly.  For example, the hiring of thirds (71%) of the allocation went to specific, multiyear, local staff has been slower than anticipated due to the knowledge and analytics activities that are either global, short-term funding gap. regional, or country-based. The largest allocations went to global knowledge work, followed by knowledge and analytics for Africa. 60% Global 2% 71%, of which Communications 5% 3% Program management and administration 9% M&E baselines and systems Knowledge sharing and dissemination 15% AFR 8% LCR GSG support and led analytics 10% 5% SAR 5% EAP Knowledge and analytics - 4% ECA 3% MNA global, regional, country Note: AFR = Africa; EAP = East Asia and Pacific; ECA = Europe and Central Asia; LAC = Latin America and the Caribbean; MNA = Middle East and North Africa; SAR = South Asia. 1 FY18 was not a typical year for GWSP. While the Water GP was launching GWSP, it was also simultaneously closing out two long-standing partner- ship programs—WSP (June 30, 2017) and WPP (October 31, 2017). During this period, WPP disbursed a total of $10.9 million. 60 Global Water Security & Sanitation Partnership – Annual Report 2018 FY18 Disbursements Of the total initial allocation, $24.4 million, or 70 percent, and the GP’s knowledge and learning team. Management was disbursed in FY18. GWSP funded 87 knowledge and administration costs comprised just 5 percent of total and analytics activities in 31 countries, in addition to disbursements. In FY18, the Water GP also completed regional and global activities. Each activity contributed to disbursement of the final year of WPP funding, an one or more of the priority themes.2 Another 18 percent additional amount of $10.9 million. Taken together, FY18 of disbursements supported the global knowledge and GWSP and WPP disbursements totaled $35.3 million. advocacy work of the five Global Solutions Groups (GSGs) 73%, of which 39% Sustainability 5% Program management and administration 3% M&E baselines and systems 9% 27% Institutions Knowledge sharing and dissemination GSG support and analytics 9% 14% Resilience Communications 11% Inclusion 2% Knowledge and analytics 9% Financing —global, regional, country Note: GSG = Global Solutions Group (World Bank); M&E = monitoring and evaluation. 2 Most GWSP-financed activities are cross-cutting in nature, reflecting their comprehensive approach, and thus cannot be clearly distilled as one of the five themes. For clarity of reporting and to avoid double counting, the activities are being reported according to the leading theme associated with the respective activities.  Global Water Security & Sanitation Partnership – Annual Report 2018 61 ANNEX B: RESULTS PROGRESS Block A: GWSP-Funded Knowledge and Analytics Activities TABLE A. KNOWLEDGE AND ANALYTICS RESULTS INDICATORS Indicator % of activities with indicator Preliminary targets FY18 progress SUSTAINABILITY Policies / strategies / regulatory frameworks informed to strengthen: a) sustainable 50% management of water resources and/or b) built infrastructure assets. 25% Tools and monitoring systems supported to strengthen: a) the sustainable management of 28% water resources at the national, basin and/or aquifer level and/or b) built infrastructure assets. 14% Water-related institutions supported to: a) sustain water resources; and/or b) built 44% infrastructure assets. 24% Knowledge products generated on sustainability. 43% 27% INCLUSION Policies / strategies generated or refined to enhance social inclusion in the management of 30% water resources, or service delivery. 16% Initiatives that develop approaches including integrated cross-sectoral approaches where 18% relevant to address water, sanitation and/or nutrition issues. 13% Water-related institutions trained in gender and/or inclusion issues and/or HR practices related 15% to diversity and inclusion. 8% Knowledge products generated on inclusion. 23% 18% INSTITUTIONS Policies/strategies/regulatory frameworks informed to strengthen the institutional 44% environment for improved water resource management and/ or water services delivery. 19% FCV supported to develop and/or implement a water sector transition strategy. 10% 4% Water-related institutions supported to strengthen capacity for managing water resources, or 50% service delivery. 27% Knowledge products generated on institutions. 35% 19% 62 Global Water Security & Sanitation Partnership – Annual Report 2018 TABLE A. KNOWLEDGE AND ANALYTICS RESULTS INDICATORS (CONTINUED) Indicator % of activities with indicator FINANCING Policies/strategies/regulatory frameworks developed to improve financial viability. 29% 12% Institutions supported to improve their financial viability and credit worthiness. 23% 12% Knowledge products generated on financing. 26% 16% RESILIENCE Policies / strategies / regulatory frameworks developed or implemented to strengthen resilience 16% of freshwater basins, and/or of the delivery of services for communities dependent on them. 5% Diagnostics conducted or implementation undertaken to promote principles of building 15% freshwater resilience. 11% Water-related institutions supported to build resilience in water resource management, or 17% service delivery. 8% Knowledge products generated on resilience. 28% 18% Note: FCV = fragile and conflict-affected. Global Water Security & Sanitation Partnership – Annual Report 2018 63 64 Block B: Water GP Outcomes TABLE B.1: PORTFOLIO INFLUENCE INDICATORS GWSP Sustainability Inclusion Institutions Financing3 Resilience Priority Theme Indicator Number % of new % of new rural % of new % of % of new % of projects % of % of % of projects Number % of new of new projects WSS lending projects new projects that support projects projects incorporating of Fragile WB lending projects that projects that with projects with reforms/ that with resilience and commitments approved promote measure gender that are other actions that support explicit in design of Conflict- with climate- sustainable “functionality” in all 3 gender social strengthen reforms/ focus on water-related affected change co- & efficient of water dimensions tagged inclusion institutional actions leveraging initiatives states benefits water use points (analysis, aspects2 capacity for private supported action and improving finance with a results)1 financial resilience viability lens4 RESULTS Baseline FY15 29 69% 0% 59% N/A 21% 72% 67% 6% 69% 5 29% FY16 27 63% 50% 56% N/A 33% 100% 88% 6% 74% 5 18% FY17 27 74% 25% 70% N/A 52% 100% 81% 10% 74% 5 31% Progress FY18 28 75% 60% 100% 50% 50% 100% 77% 14% 75% 2 54% (Year 1) Target5 FY22 80% 80% 90% 55% 60% 90% 85% 14% 80% 15 50% Note: 1/ Social Inclusion - Gender: Projects that include gender in all 3 dimensions i.e. analysis, actiion and monitoring results framework. The IDA gender indicator has been revised under the IDA-18 to enhance monitoring. The new indicator is “Percentage of new products that are gender tagged”. As part of the corporate reporting, the Water GP monitored the old indicator during the transition period (FY17) and began reporting on both old and new indicators in FY18. 2/ Other Social Inclusion aspects - Projects that target the poor, vulnerable or underserved communities or areas. Excludes citizen engagement and gender which we are reporting on as part of corpo- rate monitoring. 3/ Financing - Total % is estimated based on relevant projects only since this is not relevant for the ‘Water Security and Integrated WRM/Dams’ theme 4/ Fragile & Conflict-affected States supported with a resilience lens - This refers to number of fragile and conflict states supported over the next five years. In FY16, 35 countries have been classified as FCA states as per corporate guidelines. 5/ Total targets: The total targets are estimated based on a weighted average of 45% operations in Water Supply & Sanitation; 45% operations in Water Security & Integrated WRM/Dams and 10% operations in Water for Agriculture Global Water Security & Sanitation Partnership – Annual Report 2018 TABLE B.2. SECTOR RESULTS INDICATORS Baseline Progress Indicative Targets FY13-17 Yearly FY18 FY18-22 Yearly average average WATER SUPPLY AND SANITATION 1.1 People with access to 72 mln 14 mln 15.7 mln 70 mln 14 mln improved water sources of which female: 7.9mln 1.2 People with access to 30 mln 6 mln 11.5 mln 80 mln 16 mln improved sanitation of which female: 5.7 mln 1.3 BOD pollution loads removed 15,000 tons/yr 3,000 ton/yr 8,300 tons/yr 25,000 tons/yr 5,000 tons/ by treatment plants yr 1.4 People trained on hygiene 11.7 mln 2.3mln 4.3 mln 13 mln 2.6 mln behavior of which female: 2.1mln 1.5 Utilities with improved 85 17 27 90 18 working ratio WATER FOR AGRICULTURE 2.1 Area with new/improved 4.3 mln ha 0.8 mln ha 0.5 mln 4 mln ha 0.8 mln ha irrigation services 2.2 Farmers adopting improved 6 mln 1.2 mln 2 mln 3.5 mln 0.7 mln agricultural technology of which female: 0.4mln 2.3 Water User Associations 17,900 3,580 4,900 20,000 4,000 created/strengthened 2.4 Water users with improved 5.6 mln 1.1 mln 1.8 mln 5 mln 1 mln irrigation services of which female: 0.5mln WATER SECURITY AND INTEGRATED WRM 3.1 People in areas covered 15.3 3 mln 3.7 mln 16 mln 3.2 mln by water risk mitigation measures (flooding/ drought) 3.2 Basins with management 85 17 22 140 28 plans/stakeholder engagement mechanisms 3.3 Institutions with WRM 110 22 30 120 24 monitoring systems 3.4 Area under sustainable 1.2 mln ha 0.24 mln ha 0.32 mln ha 1.3 mln ha 0.26 mln ha land/water management practices HYDROPOWER AND DAMS 4.1 Hydropower generation 2,100 MW 420 MW 1,400 MW 7,500 MW 1,500 MW capacity constructed/ rehabilitated Note: BOD = biochemical oxygen demand; WRM = water resources management. Global Water Security & Sanitation Partnership – Annual Report 2018 65 Block C: Country-Level Outcomes TABLE C.1 BANGLADESH Business line Outcome Proxy indicator Baseline Targets indicator (July 2017) by 2022 Key area 1.5. Human Number of sanitation directorate posts in project area 0 TBD 1: Urban resources and filled with trained staff Sanitation organization development Number of staff trained as per approved staff training and development program 134 350 (2020) Key area 2: 1.6. Accountability Number of customers in project supported areas who 0 TBD Urban Sanitation towards customers know how to raise a grievance for poor service delivery Key area 3: 1.3. Monitoring and Number of pourashavas in project supported area 0 TBD Urban Sanitation evaluation adopting an interactive M&E system for reporting and informed decision making Key area 4: 2.4. Operational Water Utility maturity level (score 1–5) 2 3 (2020) Urban Water effectiveness Key area 5: 3.3. Inclusion- Number of M&E systems supported by the project that 0 TBD Urban Water focused monitoring can produce disaggregated data (by gender and income) and evaluation Key area 6: 4.4. Leveraged Level of private sector investment ($) into safely 0 TBD Rural Sanitation funding from private managed sanitation facilities influenced by WB financial sector interventions Note: M&E = monitoring and evaluation; TBD = to be determined; WB = World Bank. TABLE C.2 BENIN Business Outcome Proxy indicator Baseline Targets by 2022 line indicator (July 2017) Key area 1: Policy / legal AQUA-VIE Disbursement-Linked Indicators Services DLI 3a: all framework Rural Water framework (DLIs) for sector reforms: provided at agreements signed DLI 3a: framework agreements with municipal level; DLI 3b: publication by municipalities weak service ANAEPMR of biannual DLI 3b: ongoing service performance performance service monitoring monitoring monitoring reports DLI4: performance-based regional contracts DLI 4: all contracts signed Key area 2: 1.6. Accountability Percentage of grievances registered related to 0 80 percent Rural Water toward customers delivery of program that are addressed Key area 3: 3.2. Inclusive Number of women professionals in project 0 To be determined Rural Water management and areas trained in rural water supply and service delivery management-related areas Key area 4: 4.2. Financial Tariff policy for rural water supply services 0 1 Rural Water sustainability of being applied service providers: sustainable revenue sources Key area 2.3. Investment National investment plan for rural sanitation 0 1 5: Rural planning and prepared, including clear strategy for Sanitation delivery implementation Note: DLI = disbursement-linked indicator; ANAEPMR is the Benin rural water utility. 66 Global Water Security & Sanitation Partnership – Annual Report 2018 TABLE C.3 BOLIVIA Business line Outcome indicator Proxy indicator Baseline Targets (July 2017) by 2022 Key area 1: 1.1 Policy/legal framework National strategy for wastewater 0 1 Urban Sanitation management, including decentralized sanitation, approved and implemented Key area 2: 3.1 Targeted planning and Number of (selected) cities covered by 0 1 large and 3 Urban Sanitation investment the project that have implemented city intermediate wide urban sanitation planning processes cities including FSM Key area 3: Rural 3.1 Targeted planning and Number of targeted communities with 0 216 Water investment improved water sources Key area 4: Rural 3.3 Inclusion-focused Number of municipalities covered by the 0 36 Water monitoring and evaluation project that are collecting basic information on their communal piped water systems Key area 5: Rural 5.2 Resilient investments Number of improved water sources resulting 0 10200 Water from the project intervention Key area 6: 5.1 Sector planning and Number of Basin Plans including climate 0 3 IWRM system design change considerations based on sector specific guide Note: FSM = fecal sludge management; IWRM = integrated water resources management. TABLE C.4 EGYPT Business line Outcome indicator Quantitative indicator Baseline Targets (July 2017) by 2022 Key area 1: Rural 1.2. Regulation SRSSP AF: No Yes Sanitation DLI 7: Strengthen capacity of the EWRA Key area 2: 1.3. Monitoring and evaluation Rural Sanitation Key area 3: 1.4. Management autonomy SRSSP: No Yes Rural Sanitation and leadership DLI 3: Design and implementation of the APA system for the water service providers and Key area 4: 1.5. Human Resource and water service providers’ achievement of the Rural Sanitation organization development required APA threshold scores in accordance Key area 5: Rural 1.6 Accountability towards with the Program Operations Manual Sanitation customers Key area 6: 3.2. Inclusive management SRSSP: 10,000 167,000 Rural Sanitation and service delivery DLI 1: Establishment and functioning of new household connections to working sanitation systems in villages and satellites of which at least 10% of the connections are in satellite. Key area 7: 4.2 Financial sustainability of SRSSP: No Yes Rural Sanitation service providers DLI 4: Preparation and approval of a new national tariff structure for water and sanitation services by MHUUC to allow for sustainable cost recovery. Note: AF = additional financing; APA = annual performance assessment; DLI = disbursement-linked indicator; EWRA = Egyptian Water Regulation Agen- cy; MHUUC = Ministry of Housing, Utilities and Urban Communities; SRSSP = Sustainable Rural Sanitation Services Program. Global Water Security & Sanitation Partnership – Annual Report 2018 67 TABLE C.5 ETHIOPIA Business line Outcome indicator Proxy indicator Baseline Targets by (July 2017) 2022 Key area 3.1. Investment Number of cities that have prepared and 0 23 1: Urban planning and delivery implemented an integrated urban sanitation plan (including Sanitation under the project Addis) Key area 2: 2.4. Operational a) Participating utilities that have established / are 0 23 Urban Water effectiveness using NRW data management system (including and Sanitation Addis) b) Improved wastewater collection, transport, and 0 130,000 disposal capacity under the project (in M3 per day) (including Addis) Key area 3: 2.4. Operational Percentage of improved water supply schemes that 25 percent 10 percent Rural Water effectiveness are nonfunctional in the program woredas Key area 4: 3.1. Targeted planning % of woredas with prepared and approved RWSS 50 percent 70 percent Rural Water and and investment programs and established WWTS Sanitation Key area 5: 1.5. Human resources People trained to improve hygiene behavior/ 0 976,200 Rural Sanitation and organization sanitation (by end of development 2019) Note: NRW = nonrevenue water; RWSS = Rural Water Supply and Sanitation; WWT = wastewater treatment system. 68 Global Water Security & Sanitation Partnership – Annual Report 2018 TABLE C.6 HAITI Business line Outcome indicator Quantitative indicator Baseline Targets (July 2017) by 2022 Key area 1: 1.3. Monitoring and Sector monitoring is enriched by suite of No Yes Rural Water and evaluation instruments enabling comprehensive expenditure Sanitation tracking, as well as technical and financial performance monitoring. Key area 2: 1.5. Human resources and Number of POs in the South and Centre that adopt 0 25 Rural Water organization development simplified technical, commercial, and financial management instruments Key area 3: 2.3 Investment planning DINEPA takes ownership of the program budgeting No Yes Rural Water and and delivery tool (BPO) and uses it to coordinate the sector and Sanitation harmonize monitoring practices across donors. The sector review takes place every year and uses the BPO to review sector achievements Key area 4: 3.1 Targeted planning and DINEPA adopts a gender-based strategy for the No Yes Rural Water investment provision of rural water supply Key area 5: 4.1 Financial sustainability DINEPA increases its cost recovery by 15% per year Not tracked Yes Rural Water and of enabling institutions at Sanitation national and local levels Key area 6: 4.2 Financial sustainability 25 POs increase their financial viability Not tracked Yes Rural Water of service providers: sustainable revenue sources Key area 7: 5.1 Sector planning and DINEPA’s capacity to operationalize its National Not tracked Yes Rural Sanitation system design Sanitation Strategy is strengthened Note: DINEPA = Direction Nationale de l’Eau Potable et de l’Assoinissement (Haiti’s national water and sanitation agency). Global Water Security & Sanitation Partnership – Annual Report 2018 69 TABLE C.7 PAKISTAN Business line Outcome indicator Proxy indicator Baseline Targets by (July 2017) 2022 Key area 1: Rural 1.3 Monitoring and evaluation Percentage of rural water 0 70 percent Water systems in project area that are covered by MIS database Key area 2: Rural 3.2 Inclusive management and service Percentage of CBOs providing 0 50 percent Water delivery (by actors influenced by WB) rural water systems and supported by GWP project that have structured participation from women and the poor Key area 3: Rural 4.2 Financial sustainability of service Percentage of communities 0 50 percent Water providers: sustainable revenue sources engaging with GWP project where billing and metering system is in place for rural water systems Key area 4: 1.4 Management autonomy & leadership Number of policy and 0 2 Urban Water legislative changes which Government of confirm the managerial and Sindh issues fiscal independence of urban notifications; water utilities a Sector Note and Concept Note Key area 5: 3.1 Targeted planning and investment (by Number of ongoing 0 1 Urban Water actors influenced by WB investments by KWSSIP in katchi abadis (informal settlements) that have been informed by GWP assessments Key area 6: 1.3 Monitoring and evaluation Percentage of key sites 0 100% IWRM across the Indus System and supported by project, covered by real-time monitoring and data analysis/sharing system Key area 7: 2. 1. Policy, legal and regulatory Number of provincial IWRM 0 2 IWRM frameworks for sustainable water policy framework established (KP and Sindh resource management in provinces supported by provinces) WGP; Groundwater Management Act 0 1 in place in Punjab; Key area 8: 4.2. Financial sustainability of service Percentage of O&M costs 0 40% IWRM providers: sustainable revenue sources covered by tariffs collected in project supported areas with improved level services Key area 9: 5.1. Sector planning and system design Water resource planning TBD 50% IWRM in Sindh established and incorporates resilience to climate change and population growth. Note: CBOs = community-based organizations; ; GWP = Global Water Partnership; IWRM = integrated water resources management; KP = Khyber Pakhtunkhwa; KWSSIP = Karachi Water and Sewerage Services Improvement Project; MIS = management information system; O&M = operations and maintenance; PAD = project/program appraisal document (World Bank); TBD = to be determined; WGP = Western Greater Peshawar. 70 Global Water Security & Sanitation Partnership – Annual Report 2018 TABLE C.8 UGANDA Business Outcome indicator Proxy indicator Baseline Targets line (July 2018) by 2022 Key area 1: 1.6. Accountability towards % of customers satisfied with services delivered 0 60% Urban Water customers Key area 2: 2.4. Operational effectiveness No of service areas that reduce NRW to 20% 3 6 Urban Water under the project Key area 3: 3.2. Investment planning and New sewerage connections 0 200 Urban delivery Sanitation Key area 4: 2.4 Operational effectiveness Selected service providers that achieve more 3 4 Rural Water than 80% in collection efficiency under the project Key area 5: 3.1. Targeted planning and Number of women provided with access to 0 90,000 Rural investment improved sanitation services Sanitation Key area 6: 2.3. Investment planning and Number of agreed catchment and source 5 10 IWRM delivery protection plans developed Note: IWRM = integrated water resources management; NRW = nonrevenue water TABLE C.9 VIETNAM Business Outcome indicator Proxy indicator Baseline Targets line (July 2017) by 2022 Key area 1: Policy/legal framework A decree on O&M of rural water systems issued, 0 1 Rural water regulating rural water services, has been adopted and is being implemented Key area 2: Operational effectiveness Rural Water Number of households with access to sustainable 0 105,000 Key area 3: Financial sustainability of water supply systems Rural Water service providers: sustainable revenue sources Key area Leveraged funding from Number of communes achieving commune-wide 0 630 4: Rural service users (households, sanitation in the participating provinces (TBC) Sanitation community groups, industrial, public administrations and other users) Key area 5: Policy, legal, and regulatory An action plan for implementation of strategic 0 1 WRM frameworks for sustainable elements of national policies related to water water resource management security (i.e., water law and law on hydraulic works) is in place Key area 7: Leveraged funding from Level of investment ($) leveraged from the private 0 TBD WRM private financial sector sector for the construction and/or operations of bulk water supply production and/or distribution systems in up to six provinces in the Mekong Delta region Key area Financial sustainability of Percentage of total operating cost of wastewater 37% 50% 6: Urban service providers: sustainable management in Ho Chi Minh City generated through Sanitation revenue sources revenue from service users Note: TBC = to be confirmed; TBD = to be determined. Global Water Security & Sanitation Partnership – Annual Report 2018 71 72 Global Water Security & Sanitation Partnership – Annual Report 2018 1818 H Street, NW FOLLOW US Washington, DC 20433 Tel : (202) 473-1000 @Worldbankwater worldbank.org/Water worldbank.org/gwsp Blogs.worldbank.org/water #GWSP 74 Global Water Security & Sanitation Partnership – Annual Report 2018