92682 ANNUAL 2014 REPORT 2014 CIWA ANNUAL REPORT CONTENTS FOREWORD.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii ACRONYMS AND ABBREVIATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix MESSAGE FROM THE PROGRAM MANAGER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Challenges and Opportunities of Africa’s Transboundary Waters.. . . . . . . . . . . . . . . . . . . . . . . . . xiii Contents of the Annual Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv SECTION 1: PROGRAM AT A GLANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Results Areas and Long-term Targets.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Results and Impact.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Portfolio Synopsis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Program Distribution and Financial Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Looking Forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 CONTENTS SECTION 2: CIWA’S MAJOR ENGAGEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Criteria for CIWA Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 New Engagement: Niger Basin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Niger Basin Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Sustained Engagement: Volta Basin Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 CIWA’s Third Consultative Group (CG) Meeting: Focus on West and Central Africa. . . . . . . . 15 Sustained Engagement: Nile Basin Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Sustained Engagement: Zambezi River Basin Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Ongoing Engagement: Southern African Development Community. . . . . . . . . . . . . . . . . . . . . . . 24 Ongoing Engagement: Lesotho Highlands Botswana Water Transfer (Orange-Senqu Basin). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 SECTION 3: THE CATALYTIC SUB-PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Catalytic Sub-Program Objective.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Demand for a Catalytic Sub-Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Catalytic Sub-Program Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Catalytic Activity Selection Criteria.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Ongoing Activities in the Catalytic Sub-Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 SECTION 4: OVERVIEW OF RESULTS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Results to Date: Program Development Objective (PDO).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Results to Date: Intermediate Results (IR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 SECTION 5: FINANCIAL OVERVIEW.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Donor Pledges and Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Overview of CIWA Allocations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Commitment, Disbursement, and Funding Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Value for Money (VfM). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Financial Summary of Program Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Future Funding Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 SECTION 6: TOWARDS SUSTAINABLE CLIMATE RESILIENT GROWTH: FY15 AND BEYOND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Planning for the Mid-Term Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 ANNEX 1: CIWA’S PERFORMANCE MANAGEMENT FRAMEWORK. . . . . . . . . . . . . . . . . . . . 67 ANNEX 2: DEMAND FOR CIWA ENGAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 ANNEX 3: RECIPIENT PARTNERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 ANNEX 4: CIWA’S RISK ANALYSIS FRAMEWORK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 ANNEX 5: VALUE FOR MONEY IN CIWA PROGRAM DESIGN AND IMPLEMENTATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 CONTENTS v FIGURES Figure 1: Preparation and implementation status of CIWA engagements. . . . . . . . . . . . . . . . . . . . . . 3 Figure 2. Financial distribution of CIWA’s portfolio by region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 3. Financial distribution of CIWA’s portfolio by partner type. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 4. Financial distribution of CIWA’s portfolio by basin or region. . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 5. CIWA’s engagements spread across Sub-Saharan Africa... . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 6. Catalytic activities are delivered through the Knowledge Management & Capacity Building window and the Opportunistic window.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Figure 7. Financial Distribution Among Basins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Figure 8. Overall Endorsed Budget, Disbursement and Commitment, and Pipeline Activity Amounts per Basin/Sub-program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 TABLES Table 1. Indicative list of investments supported by NCORE from grant inception to present featuring estimated investment values and numbers of potential direct beneficiaries.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Table 2. Strategic pillars of the Catalytic Sub-Program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Table 3. Criteria for selection of activities under the Catalytic Sub-Program’s two windows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 CONTENTS Table 4: Overview of Donor Pledges and Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Table 5: Overview of Availability and Allocation of Funding.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Table 6: Detailed Account of Allocation of Available Funding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Table 7: Details of Projects Funded by CIWA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Table 8: Allocation, Commitment, Disbursement and Pipeline Amounts per Basin/Sub-Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Table 9: Fund Balance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60  vii FOREWORD Water is at the center of world economic and social development. It plays a vital role in supporting health, food security, biodiversity, energy, and peace and security. Yet, 2 billion people live in countries with absolute water scarcity, and this number is expected to rise to a level of 4.6 billion by 2080. Exacerbating matters, rapidly growing population and extreme weather due to climate change are creating even greater demands on existing water supplies. The fragility of water security is especially pronounced in Africa, where 345 million people lack access to a safe water supply, less than 10 percent of the hydropower potential on the continent has been exploited, and only around five percent of the cultivated land is irrigated. The transboundary nature of water resources in Africa, where most of the water resources are shared among two or more countries, makes the task of responding to this growing water crisis even more complex. This highlights the need for collaborative development of international waters as a critical strategy towards sustainable, climate-resilient growth. The Cooperation in International Waters in Africa (CIWA) program was established to strengthen FOREWORD collaborative management among riparian governments, to expand investment in the development of shared waters, and to address transformative issues such as agriculture and energy. This Annual Report, covering the period of July 2013-June 2014, demonstrates the progress the program has achieved with a robust portfolio of CIWA engagements across Africa. The report also illustrates how CIWA is nurturing trust among stakeholders and developing strategies and institutions along the way that increase shared benefits and reduce risks. The World Bank has a long history of supporting international cooperation on shared waters in Africa. In the Kagera River basin, for example, the Rusumo Falls Hydroelectric Project demonstrates that analytical work delineating the benefits of cooperation and joint project preparation has led to investments in transboundary water resources development that will bring power to electricity grids in Burundi, Rwanda and Tanzania. With the support of the Nile Basin Trust Fund, the Eastern Nile countries are working on Integrated Water Resources Management and development efforts for restoration and management of jointly identified transboundary watershed “hotspots” with high rates of erosion, including 140,000 hectare in Ethiopia and Sudan. Throughout Africa, efforts to bring about greater human development, rapidly expanding economic prospects and evolving opportunities depend heavily on water. Efforts that foster collaboration and agreement among riparian governments on shared waters are vital for helping these countries harness the productive potential of transboundary waters. The World Bank is committed to working with other organizations and partners to support efforts to meet the needs and aspirations of African countries through sustainable economic and development growth, reduced poverty, shared prosperity and a water-secure future for all. Junaid Kamal Ahmad Sr. Director, Water, World Bank Group  ix ACRONYMS AND ABBREVIATIONS AC Advisory Committee AF Additional Financing ANBO African Network for Basin Organizations BAC Basin Advisory Committee BoC Basis of Commitment CIESIN Center for International Earth Science Information Network CIWA Cooperation in International Waters in Africa CG CIWA Consultative Group CSP CIWA Support Plan DRC Democratic Republic of Congo ACRONYMS AND ABBREVIATIONS DSS Decision Support System ECOWAS Economic Community of West African States ENTRO Eastern Nile Technical Regional Office ESIA environmental and social impact analysis EC European Commission EU European Union FY Fiscal Year GDP Gross Domestic Product GEF Global Environment Facility GFR Grant funding request GMI Groundwater Management Institute GWP Global Water Partnership HES Hydroelectric scheme ISR Implementation Supervision Report ICP International Cooperating Partners IDA International Development Association IR Intermediate Results IRI International Research Institute IWRM integrated water resources management LCBC Lake Chad Basin Commission MTR Mid-term review MDTF multi-donor trust fund MISOA Multi-Sector Opportunities Analysis MoU Memorandum of Understanding NBA Niger Basin Authority NASA National Aeronautics and Space Administration NBD Nile Basin Discourse NBI Nile Basin Initiative x CIWA ANNUAL REPORT 2014 NBTF Nile Basin Trust Fund NCORE Nile Cooperation for Results NEL Nile Equatorial Lakes NELSAP Nile Equatorial Lakes Subsidiary Action Program–Coordination Unit NGO non-governmental organization Nile-Sec NBI Secretariat NOAA National Oceanic and Atmospheric Administration OKACOM The Permanent Okavango River Basin Water Commission OMVS Senegal River Basin Development Authority PMF performance management framework PEA political economy analysis PCN Project Concept Note PMU program management unit PDO Program Development Objective RBO river basin organization REC Regional Economic Community SADC Southern African Development Community SAWI South Asia Water Initiative SIWI Stockholm International Water Institute SDAP Sustainable Development Action Plan UN United Nations VBA Volta Basin Authority VfM Value for Money WMO World Meteorological Organization WPP Water Partnership Program WRD Water Resources Development WRM Water Resources Management WRCC Water Resources Coordination Centre ZAMCOM Zambezi Watercourse Commission ZAMSEC ZAMCOM Secretariat ZAMTEC ZAMCOM Technical Committee ZRA Zambezi River Authority ZRB Zambezi River Basin  xi MESSAGE FROM THE PROGRAM MANAGER W ater is fundamental for life, key to economic and social development and essential to reduc- ing the multiple dimensions of poverty. Utilizing water sustainably can improve food security through irrigation, increase energy security through hydropower generation, expand access to water supply, help communities build resilience to climate change, and protect them from weather extremes, such as flood and drought. However, water issues in Sub-Saharan Africa are complicated by the fact that most of the major riv- ers, lakes, and aquifers in the region cross the borders of multiple countries. Because Africa’s waters MESSAGE FROM THE PROGRAM MANAGER are inherently international, their development becomes entangled by complex political, institutional and logistical challenges. Yet at the same time, improved management and development of trans- boundary waters throughout Africa offers enormous opportunities to further economic and human development that can transform the continent. The Cooperation in International Waters in Africa (CIWA) program is uniquely positioned to help African countries overcome these complex challenges. With support from development partners and access to the World Bank’s vast knowledge, technical expertise and client-oriented service deliv- ery capabilities, CIWA is supporting the efforts of governments, river basin organizations (RBOs), Regional Economic Communities (RECs) and civil society organizations to unlock the potential for sustainable and climate-resilient growth by addressing and working to remove constraints to coop- erative management and development of international waters in Africa. This year CIWA deepened program implementation and broadened a robust portfolio in order to meet its objectives. Demand for CIWA support from African partner organizations has exceeded the program’s resources and the pace of disbursement nearly doubled in fiscal year (FY) 2014. This Annual Report provides details on the important results achieved by these programs this year. Last year CIWA and its donors, the governments of Denmark, Norway, Sweden, and the United Kingdom welcomed a new partner, the Netherlands, which pledged US$25 million of support. This contribution builds on the long and successful partnership between the Bank and the Netherlands and is an important component of plans to expand this collaboration under the Bank’s new Water Global Practice. CIWA also anticipates receiving a new pledge in FY15 which will bring the pro- gram’s funding envelope to US$78 million. With strengthened financial footing, CIWA extended its reach and is now a balanced program, with a portfolio touching international waters across the continent (West Africa, East Africa and Southern Africa). Several engagements in major basins are under implementation across the continent and are begin- ning to show results. The Nile Cooperation for Results (NCORE) Project, for example, supports infrastructure projects that will benefit the basin’s large population of poor men and women. The program’s support for the Zambezi River Authority (ZRA), now under implementation, will advance the Batoka Gorge Hydroelectric Scheme (HES), which is projected to contribute significantly to energy security for millions of people living in southern Africa. CIWA also initiated an engagement with the Niger Basin Authority (NBA) with the objective of strengthening the NBA’s ability to carry xii CIWA ANNUAL REPORT 2014 out its core mandate, including enhancing its financial sustainability, boosting benefit sharing in the region and promoting stakeholder engagement related to planned infrastructure in the basin. This year, the CIWA program undertook a focused effort to plan a coordinated, strategic approach to addressing demand and needs in West Africa. The third CIWA Consultative Group (CG) meeting was convened in Dakar during the fifth Africa Water Week, where CIWA showcased the dynamics of cooperative management of transboundary waters in West and Central Africa. The meeting gathered a broad range of stakeholders, including key African leaders. Participants had robust discussions of needs in the region and successful approaches that have been taken to meet them, which provided everyone with an opportunity to learn from each other. This meeting helped significantly to inform the design of CIWA-sponsored projects and actions with the Economic Community of West African States (ECOWAS) and in the Volta, Niger and Lake Chad basins. A milestone was reached this year when CIWA launched the final design of the Catalytic Sub- Program. With the Sub-Program in place, CIWA can use essential tools, such as analytical stud- ies, on-demand training for capacity building and cross-basin exchanges, to better understand the challenges related to international waters, and to address these challenges with more flexibility. This year CIWA also began implementation of key activities under the Sub-Program, such as a political economy analysis (PEA), and a Spatial Agent app designed to improve public access to basin data. For example, the PEA will be developed in partnership with the Stockholm International Water Institute (SIWI). One of the expected outcomes from this partnership is a better understanding of the drivers of the political economy that influence cooperation. This in turn can inform CIWA’s overall strategic thinking and decision making. Building on the program’s strong portfolio of basin programs and catalytic activities, CIWA this year also created new communication tools and estab- lished a strong online presence as a way to further disseminate the knowledge generated through its programs and to highlight riparian accomplishments. Next year, CIWA will focus on three priority actions: i) expanding results through implementation of ongoing basin and REC programs and projects; ii) continuing to attract additional financing to meet the high level of demand for new and expanded engagements; and iii) undertaking the Mid-Term Review (MTR) to evaluate its program and identify any priority areas that should be addressed as the program advances. CIWA looks forward to continuing to foster cooperative action among key stakeholders in Africa to help advance the development and management of international waters, paving the way for change on the continent, and leading to a positive global impact. We are grateful to our African partners and to our donors, all of whose contributions help to acceler- ate cooperation in international waters in Africa in support of sustainable, climate-resilient growth. Gustavo Saltiel CIWA Program Manager  xiii INTRODUCTION W ater is vital for maintaining health, growing food, producing electricity, managing the environment, and creating jobs. The World Bank helps countries address their water chal- lenges as a key element of its strategy for achieving its goals of ending poverty and ensuring shared prosperity. In line with World Bank objectives, the CIWA program and its development partners support Sub-Saharan Africa governments in unlocking the potential for sustainable, climate-resilient growth through cooperative water resources management and development. CIWA achieves this in a number of ways: helping African countries and organizations improve the quality and accessibility of information available for decision making; demonstrating how increased benefits and reduced risks can result from joint actions; supporting actions which strengthen regional institutions in order to provide a platform for riparians to build and continue a dialogue, share information and act jointly; enabling African governments to bring a wide range of stakeholders to the table so that development solutions reflect the needs of the men and women living in the basin, including those in poverty; and facilitating actions to advance and enhance the quality of regional investments and to promote adoption of a benefit and risk-sharing approach. These multiple entry points are required to ensure that cooperation leads to sustainable growth and economic development in ways that INTRODUCTION improve the lives of the more than 500 million people living in Africa’s international basins, many of whom are living in poverty without access to electricity, food or clean water. Challenges and Opportunities of Africa’s Transboundary Waters Water resources management and development is critical for economic growth and poverty reduc- tion in Africa. Proper management of water resources can help build resilience against a changing climate. Across Africa, the many competing demands for water include supplying households in teeming cities, irrigating crops to address hunger, and developing hydropower to meet the conti- nent’s increasing electricity needs. Africa is endowed with a generous supply of water. However, the real challenge facing the African people is having water “where they need it and when they need it”, because many African countries have inadequate systems in place to monitor, regulate, store and make use of water. Complicating matters, most of its rivers, lakes, and aquifers cross country borders. In fact, all coun- tries on the African continent intersect at least one international basin, 50 percent of the countries intersect at least two international basins, and 22 percent intersect more than five. The five largest river basins—Congo, Nile, Lake Chad, Niger, and Zambezi—cover 52 percent of the area of Sub- Saharan Africa. The continent’s international river basins are home to nearly 500 million people, which represents 65 percent of Africa’s total population, with 350 million living in the five largest river basins. Africa has the highest population growth rates of any region in the world, and the population is predicted to increase to 1.8 billion by 2040. Africa’s urban population is projected to double between 2000 and 2030. High rates of urbanization mean increased competition in demand for water from agricultural, industrial, and municipal sectors. By 2040, it is expected that the conti- nent’s food demand will double, energy demand will quadruple, and water demand will increase to five times that of today, putting stress on existing water sources in general, and having particular impact on the poor in particular. Climate change will worsen the situation both by increasing uncer- tainty about the continuation of water availability and through the occurrences of extreme events. xiv CIWA ANNUAL REPORT 2014 As water security declines, the poor will be disproportionately affected by the volatility of food and energy prices and will increasingly bear the brunt of disasters. In spite of these challenges, the opportunities for harnessing Africa’s water potential are tremen- dous. Less than six percent of its cultivated land is currently irrigated, and no more than 15 percent of its hydropower resources have been developed. Transboundary cooperation can increase the overall value of shared waters and improve regional payoffs through, for example; increased benefits of power distribution via regional power pools; reduction of flood and drought risk via coordinated operation of water storage; protection of environmental services and livelihoods that rely on water resources; and, improvement of the sustainability of shared waters. Collaboration on technical, environmental, financial and political aspects of transboundary water management and develop- ment can help countries overcome regional challenges and seize much needed opportunities. For example, in the Nile Basin, water-energy cooperation could save up to 12 percent of total costs over more isolated development projects and limited trade in energy. It is these kinds of opportunities for cooperative management and development that the CIWA program aims to use to help riparian countries in Africa unlock the productive potential of international waters. The complexity of the challenges of transboundary water requires countries and the global development community to go beyond traditional approaches and embrace smarter ways for managing and investing in the water sector. CIWA is structured to be responsive and flexible in enabling African countries to promote sustainable, climate-resilient growth that contributes to reducing extreme poverty and promoting shared prosperity. Contents of the Annual Report This past year the CIWA program has developed a robust portfolio of engagements and partnerships across Sub-Saharan Africa, with many projects under implementation that are beginning to show results. The program has endeavored both to offer strategic assistance where it is most needed and to balance CIWA’s portfolio geographically. This report showcases the results of the FY14, and is organized as follows: Section 1: Program at a Glance provides an overview of CIWA’s program and long-term expected results, a synopsis of on-going projects, and a summary of the program’s next steps. Section 2: CIWA’s Major Engagements discusses the demand for CIWA engagement from basin organizations and regional economic commissions, and describes the selection criteria for CIWA’s engagements. It also presents CIWA’s rationale for selecting a new engagement—the Niger basin— and outlines first-phase activities in that basin. This section also provides an overview of continued progress of basin programs previously presented (Volta, Nile and Zambezi basins), and describes the objective of CIWA’s intervention in the basins, the strategic context of the basin programs, and details of ongoing or planned projects in these basins. Finally, this section provides an update and overview of ongoing projects, including the Lesotho Highlands –Botswana Water Transfer in the Orange–Senqu River Basin, and support for the Southern Africa Development Community (SADC) Groundwater Monitoring Institute (GMI). Section 3: The Catalytic Sub-Program provides an overview of CIWA’s catalytic plans to help to strategically address the challenges of transboundary water resources management and development in Sub-Saharan Africa. Section 4: Overview of Results summarizes CIWA’s progress in relation to the predefined annual targets for the Program Development Objective (PDO) indicators, and presents the Intermediate Results (IR) to date. INTRODUCTION xv Section 5: Financial Report contains a summary of donor contributions and the allocation of funds. Section 6: Towards Sustainable Climate Resilient Growth: FY15 and Beyond describes CIWA’s plans for FY15 and provides an overview of the CG meeting which focused on CIWA in West and Central Africa. This section also describes CIWA’s plans to undertake in FY15 its MTR, which will evaluate the program and identify any priority areas that should be addressed as the program advances. INTRODUCTION xvi CIWA ANNUAL REPORT 2014 1  1 SEC TION 1 PROGRAM AT A GLANCE SECTION 1: PROGRAM AT A GLANCE T he CIWA program is supported by a multi-donor trust fund (MDTF) and administered by the World Bank. CIWA supports riparian governments in unlocking the and development of transboundary waters is becoming evident, and expanded results can be expected soon. CIWA was established in 2011 and is supported by potential for sustainable, climate-resilient growth through the governments of Denmark, the Netherlands, Norway, cooperative water resources management and development. Sweden, and the United Kingdom. CIWA achieves this by improving the quality and accessibil- ity of information in order to raise awareness of increased benefits and reduced risks that can result from joint Results Areas and Long-term Targets action, including: strengthening the ability of institutions The objective of the CIWA program is to strengthen to provide platforms for riparians to act jointly; enabling cooperative management and development of interna- African governments to bring a wide range of stakeholders tional waters in Sub-Saharan Africa to facilitate sustain- to the table; and enhancing the quality of regional invest- able climate-resilient growth. The program contributes to ments through adoption of benefit-sharing approaches. this objective by targeting results in four areas: CIWA leverages the comparative advantage of its Strengthened regional cooperation and integration—to host institution, the World Bank, which offers strong foster cooperative transboundary institutions for greater technical expertise in international waters and across regional stability and creation of an enabling environ- other relevant sectors such as agriculture, energy, and ment for shared sustainable growth; service delivery, while also having the power to convene and mobilize multiple stakeholders and to utilize the Strengthened water resources management (WRM)— experience gained from work on international waters to underpin the evidence-based knowledge for planning issues around the world. and decision-making to maximize development opportu- CIWA’s design is informed by lessons learned over nities and minimize climate variability risks; decades of work fostering cooperation in international Strengthened water resources development (WRD)—to waters. In particular, CIWA aims to capitalize on the support investments that improve climate resilience, successes of and lessons from the joint partner engage- enhance food and energy security, and enable countries ment involving the Nile Basin Trust Fund (NBTF) and to to follow a lower carbon growth path; incorporate these into its continent-wide work. Already, many CIWA supported projects and programs Strengthened stakeholder engagement and coordina- are under implementation. As CIWA deepens engagement tion—to provide a greater voice to civil society, the pri- with governments, regional organizations, civil society, vate sector, and academia in decision-making processes the public sector and other stakeholders, progress in related to the cooperative management and development Sub-Saharan Africa in areas of cooperative management of shared basin resources. 2 CIWA ANNUAL REPORT 2014 The 10-year targets for the program are: of the Kariba Dam Hydropower Complex in the Zambezi • US$10 billion in financing mobilized for projects River basin (ZRB), initiating an engagement that will supported by CIWA help facilitate cooperation for enhanced regional benefit sharing around the Fomi Dam in the Niger Basin, and • 50 million people directly benefitting from projects securing additional support for Nile Basin countries in supported by CIWA their efforts to promote investment in regional coopera- • 8 transboundary institutions strengthened in at least tive water resources management and development. 5 basins • 10 strategic analyses used to illustrate the evidence base for cooperation. Portfolio Synopsis • 5 transboundary institutions in at least 4 basins with improved analytical tools, data, and capacity for In this reporting period, CIWA focused on transition- WRM ing projects from preparation to implementation as well as driving progress forward in projects already under • 10 investment opportunities with regional benefits implementation. In the Nile Basin, the NCORE project advanced through CIWA support implemented by the Nile Basin Initiative (NBI) is well • 5 relevant transboundary institutions with an underway and has generated a host of initial results improved approach to sustainable investment plan- which prompted the project to secure approval for addi- ning and bankable investment preparation tional financing (AF) of US$18 million from CIWA and • 5 basins with improved engagement with civil soci- NBTF, bringing the total project size to US$33.3 million. ety, the private sector, and/or academia, 60 percent The additional financing greatly expands the scope of the of which are organizations representing interests of NCORE project by allowing inclusion of a suite of activi- women and/or the poor ties such as: advancing preparation of additional region- • 5 basins with increased water resources management ally agreed-upon investments in the Nile Equatorial and development information in the public domain Lakes (NEL) region; strengthening stakeholder access to data, knowledge, tools, and analysis relevant to the Nile Basin; expanding ongoing successful outreach and capacity building programs for the youth in the Nile Results and Impact Basin; and providing integrated support to South Sudan With the finalization of the CIWA Strategic Framework to build additional capacity to manage its water chal- in early FY14, CIWA has established its program policy lenges and enhance its water resources development. and priorities, allowing the program to both expand its These new activities are aligned to the project’s original engagements and deepen its implementation efforts to development objective—to facilitate water resources enable it to work towards the objectives of strength- management and development in the Nile Basin—and ening cooperative management and development of are designed to produce additional results that widen international waters in Sub-Saharan Africa in order to the project’s coverage and deepen its impact. Also in facilitate sustainable climate-resilient growth. As CIWA the Nile Basin, a project implemented by the Nile Basin works upstream of actual investment, progress towards Discourse (NBD) on facilitating dialogue between civil this objective will be measured by assessing the value society and decision makers began implementation in of potential investments influenced by CIWA and by mid-FY14 after a grant agreement was signed. Through the number of people who will directly benefit if the CIWA support, the NBD is already engaging with the NBI investments go forward. CIWA’s targets for FY14 were to enhance community benefits from planned develop- to influence US$6 billion potential investment financ- ment projects. ing for projects with regional benefits and a related In Southern Africa, ZRA signed a grant agreement 8 million potential direct beneficiaries of those invest- with the World Bank and commenced implementation. ment projects. The program has surpassed both targets, CIWA’s partnership with ZRA will primarily support the potentially influencing $7.8 billion in project financing preparation of the Batoka Gorge HES on the Zambezi and potentially directly benefitting 46 million people River, signifying the successful end of an impasse through projects it has influenced. In order to achieve between Zambia and Zimbabwe that had been unre- these results, CIWA reached multiple milestones in FY14, solved since 1987. This project will advance an invest- including, helping catalyze discussions on rehabilitation ment that will secure the energy needs of an estimated SECTION 1: PROGRAM AT A GLANCE 3 FIGURE 1: Preparation and implementation status of CIWA engagements Identification Preparation of Preparation for Appraised of Engagement Concept Note Appraisal and and/or Implementation (Justification Note (JN Completed, Approval Approved (JN) Preparation) PCN Preparation) (PCN Completed) • Lake Chad • Zambezi: • SADC • ECOWAS ZAMCOM • Orange-Senqu • Nile: NCORE • Okavango • Niger + AF • Volta • Nile: NBD • Zambezi: ZRA • Catalytic Sub-Program 1.2 million households (estimated six million men, framework to help identify underlying political barriers women and children) in the two riparian countries. to cooperation in order to help inform strategic decision SECTION 1: PROGRAM AT A GLANCE CIWA’s partnership with SADC was also advanced due making and project planning. CIWA made progress on to full project approval, and legal agreements will be preparations to support the ECOWAS in catalyzing trans- signed in early FY15. CIWA’s support to SADC’s GMI boundary water resources management and develop- extends the program’s coverage beyond the typology of ment towards the areas of food and energy security and surface water by supporting sustainable management of climate resilient growth, and to support the Okavango groundwater at national and transboundary levels across Multi-Sector Investment Opportunity Analysis (MSIOA) SADC member states. In a third project in the Southern effort to assess development needs in light of conserva- Africa region, the Lesotho Highlands-Botswana Water tion of the ecological assets in the Okavango Delta. In transfer study, significant preparatory progress was made addition, several knowledge-generation and sharing during the reporting period, procurement processes are activities of the Catalytic Sub-Program have significantly currently ongoing, and the project is expected to be fully advanced implementation, as described in Section 3 of under implementation by mid-FY15. this report. A major highlight for CIWA in FY14 was the pro- Figure 1 provides a snapshot of the CIWA portfolio gram’s expansion in West Africa. An engagement was and shows the project preparation and implementa- initiated in the Niger Basin and funds were allocated to a tion stages for CIWA projects (excluding knowledge project supporting cooperative water resources manage- management and capacity building). Sections 2 and 3 ment and development and strengthening stakeholder provide detailed summaries of ongoing and planned engagement to be led by the NBA. The preparation of engagements. this project is underway, with implementation expected As of August 2014, the status of twenty-one CIWA to start in the second half of FY15. Also in West Africa, projects is as follows: CIWA and the Volta Basin Authority (VBA) advanced • 4 recipient-executed projects (NCORE including the preparation of the Volta River Basin Institutional AF, NBD, Zambezi River Basin Development, Development and Strategic Action Programme in FY14. and SADC Groundwater Management) are under The scope of CIWA support for the VBA is expected to implementation. see a substantial expansion as implementation com- mences in FY15, with co-financing pending approval • 1 recipient-executed project (Lesotho Highlands— from the Global Environment Facility (GEF) Secretariat. Botswana Water Transfer) is near implementation CIWA achieved another milestone on the Catalytic with expectation of signing a grant agreement in late Sub-Program front in FY14 when the structure of the August or early September 2014. Sub-Program was finalized and approved by the World • 3 recipient-executed projects (Niger River Basin Bank, and implementation began on many catalytic Management, Volta River Basin Institutional Support, projects. For example, CIWA is undertaking a PEA and Zambezi River Basin Management) are being 4 CIWA ANNUAL REPORT 2014 FIGURE 2. Financial distribution of CIWA’s portfolio FIGURE 3. Financial distribution of CIWA’s portfolio by region by partner type Africa- wide 4% Govt, 4% BE KM, 4% CSO, 3% REC, 6% West and East Africa Central Africa 38% 27% RBO, 82% Southern Africa 31% FIGURE 4. Financial distribution of CIWA’s portfolio prepared with expectation of Bank approval in by basin or region December 2014—April 2015, followed by signing of Lake Chad/Sahel, 2% Okavango, 1% grant agreements. ECOWAS, 2% Catalytic: Africa-wide, 4% • 6 Bank-executed projects are under implementation. • 7 Bank-executed projects are under preparation. SADC, 4% Orange-Senqu In addition, the World Bank executes activities 4% through CIWA program management and administration Nile, 38% to administer and manage CIWA, and monitor and evalu- Zambezi ate the progress of the strategic overview of the program. 21% More details on financial aspects of CIWA’s portfolio are found in Section 5. Volta Niger 7% 16% Program Distribution and Financial Overview CIWA supports a geographically diverse program, As of June 30, 2014, CIWA is a program of US$71.2 mil- servicing major needs across the continent. The largest lion, with pledges of contributions from Denmark, the share of CIWA’s financial support currently goes to East Netherlands, Norway, Sweden, and the United Kingdom. Africa (38 percent), followed closely by Southern Africa The Netherlands joined as a partner in December 2013, (31 percent) and by West and Central Africa (27 per- pledging US$25 million and expanding the previous cent). CIWA also supports analytical activities that have US$46 million program size by over 54 percent. Of the an Africa-wide scope (4 percent) as shown in Figure 2. total US$71.2 million envelope, US$59.9 million has been CIWA strives to support riparian-led and riparian- allocated, the majority of which focuses on activities in owned activities wherever feasible and practicable. the four basins where CIWA provides sustained support: Currently 78 percent of CIWA’s financial portfolio con- Nile, Niger, Volta, and Zambezi. CIWA is structured to sists of recipient-executed activities, with the remaining be able to devote 90 percent of its available envelope to 22 percent executed by the World Bank. The majority of providing long-term support to basins and regions across the CIWA program is executed by recipient partners or by the continent through the Basin Sub-Program. The the Bank in close partnership with partner organizations Catalytic Sub-Program is expected to comprise up to 10 using various entry points including RBOs, civil society percent of the CIWA envelope, and currently, US$5.5 mil- organizations, RECs, and national governments. A small lion has been allocated to catalytic activities. fraction of CIWA’s funding is used for analytical work led by the World Bank. A breakdown of the various types of SECTION 1: PROGRAM AT A GLANCE 5 organizations that CIWA partners with for program deliv- Looking Forward ery is included in Figure 3. Of the $59.9 million CIWA has thus far allocated to projects and programs, 82% is In the coming year, CIWA expects to further advance devoted to provide support through RBOs (NBI, ZRA, preparation of its projects and intends to have all proj- Zambezi Watercourse Commission (ZAMCOM), VBA, ects under implementation by end of FY15. Demand for NBA, OKACOM), 3% through civil society organizations CIWA program support from potential recipient organiza- (NBD), 6% through RECs (ECOWAS, SADC), 4% directly tions exceeds available funding; however, the program is to riparian governments (Government of Botswana), and also actively engaged in fund-raising efforts to address 4% on Bank-executed analytical work for knowledge needs across Africa. The European Commission (EC), in generation and management. The specific breakdown the context of the European Union (EU) “Global Public of CIWA’s allocation of finances by basin or region is Goods and Challenges” thematic programme and the provided in Figure 4. This graph shows that the majority 2015 Action Programme, intends to pursue a likely con- of funding is going to CIWA’s main basin engagements tribution to CIWA with a budget of €5 million. With the (Nile, Niger, Volta and Zambezi), but that important EC on board, the total funding envelope will be approxi- engagements are also being carried out in other basins mately US$78 million. Although new engagements and and regions. projects are subject to endorsement, CIWA has begun By the end of FY14, the program had committed and to plan funding allocations with the additional financ- disbursed a cumulative US$40 million. In FY14 alone, ing and anticipates expanding ongoing work in the Nile SECTION 1: PROGRAM AT A GLANCE CIWA committed US$35.7 million and disbursed basin, promoting cooperation around critical needs in US$4.4 million. The disbursement rate is expected to the Sahel and advancing important catalytic work with a rise as projects progress from design to implementation likely focus on the food-water-energy nexus. phases and as overall program delivery accelerates. By As CIWA nears the mid-point of the program’s the end of FY15, CIWA expects all projects to be fully 10-year life, it is beginning to plan for the MTR. The under implementation. scope of the review, including the main topics that will Where possible, CIWA has built partnerships with be considered in the review and the processes that will other organizations to leverage additional resources be undertaken for the review, will be established by the that allow multiplication of the impact CIWA influences end of this calendar year. Currently, the program antici- through the use of trust fund resources. CIWA has lever- pates that the MTR will assess the degree to which CIWA aged US$18.8 million of NBTF funds to co-finance the is “fit for purpose” in meeting its objectives moving NCORE project, and has leveraged US$15.4 million with forward. The MTR will evaluate the program’s progress the GEF to co-finance two projects—one on groundwater towards reaching its goals, and will explore the different management implemented by SADC, and the other on components of the program’s structure along the lines of institutional strengthening and watershed management their efficiency, relevance and effectiveness. Any changes implemented by the VBA. In addition, the NBTF pro- identified through the MTR process will pave the way for vided resources for the preparation of NCORE Phase I, improved program delivery for the remaining duration of and the World Bank (US$0.5 million) provided resources the program, and any amendments required in program employed in the start-up of CIWA. Along with leveraging design, implementation arrangements, and institutional funds from additional sources, CIWA incorporates prin- linkages will help CIWA to effectively contribute to the ciples of economy, efficiency, and effectiveness through- sustainable climate-resilient growth of transboundary out its program design and delivery, ensuring value for basins in Africa. money in program operation. 6 CIWA ANNUAL REPORT 2014 2  7 SEC TION 2 CIWA’S MAJOR ENGAGEMENTS SECTION 2: CIWA’S MAJOR ENGAGEMENTS T he CIWA Program provides support for cooperative water resources management and development in international waters, including basins, aquifers, and updated overview of ongoing progress in basin programs and projects previously presented (Nile, Zambezi and Lesotho-Highlands). lakes (generically “basins”). This FY, CIWA is deepening its engagement on multiple fronts to ensure that coopera- tion leads to sustainable growth and economic develop- Criteria for CIWA Engagement ment in a way that improves the lives of people residing in several major basins in Africa, many of whom are Demand for CIWA engagement exceeds the current fund- living in poverty, without access to electricity, food or ing envelope and therefore requests must be carefully water. CIWA is involved with basin organizations as well reviewed and evaluated to determine how CIWA can as with regional economic communities in tailoring the add value (demand outlined in Annex 2). Requests from engagements to fit the basins’ needs and demands, and basin organizations, regional economic communities and in helping to define the organization’s role in promoting member states were reviewed according to the following cooperation with respect to water resources. As shown in criteria: Figure 5, the program’s well-developed portfolio touches • Alignment: Engagement must align with CIWA objec- international waters across the continent, from the Niger tives and contribute significantly to one or more of basin and Fatou Djallon watershed in West Africa, to CIWA’s expected results. the Nile basin in East Africa, to the Zambezi River basin • Strategic importance: Engagement must address criti- and groundwater aquifers in Southern Africa. Several cal issues in the basin. recipient-executed programs are under implementation, • International River Basin Benefits: Engagement while others have advanced in terms of preparation and should promote the optimization of basin-wide and are expected to be under implementation in FY15. Select regional benefits while building cooperation and actions are being executed to help individual countries trust among stakeholders. overcome challenges related to issues of climate vari- ability, flood and drought, energy and food security, • Strong regional interest and country commitment: environmental degradation and the need to maintain Engagement should be demand-driven and in line ecosystem services. with the strategic direction and the needs of the This section presents a summary of the justifica- basin. tion for the selection of a new engagement in the Niger • Complementarity and additionality: Engagement basin, an overview of new projects and programs with should complement ongoing World Bank and/or basin organizations and regional economic commissions Partner programs and continue or build on existing that were developed this FY (Volta, Niger, SADC), and an work. 8 CIWA ANNUAL REPORT 2014 It should be noted that to ensure that CIWA develops does not ensure that a project will move to the next a robust pipeline of projects free of significant delays in phase in the funding cycle. While CIWA is continually implementation, the organization may undertake initial seeking additional funding from existing and prospec- project development steps for funding levels that exceed tive partners, it takes a cautious approach by matching pledged funds. However, it must be noted that CIWA the pace of project preparation with funding availability. cannot approve a recipient grant until sufficient financ- Consequently, lags can occur between the time donors ing has been pledged. Therefore, if funding limitations pledge funds and the time the funds are subsequently exist, endorsement by the Advisory Committee (AC) disbursed to recipients. FIGURE 5. CIWA’s engagements spread across Sub-Saharan Africa. SECTION 2: CIWA’S MAJOR ENGAGEMENTS 9 New Engagement: Niger Basin Criteria: Alignment people, including vulnerable and poor communities in rural, remote parts of the basin. For instance, enhanced Justification: Engagement in the Niger basin environmental flows help support wetland ecosystems, contributes to all four of CIWA’s results areas: sustain fisheries (an important source of income and • Institutional capacity building to strengthen regional protein for the poor), and provide watering holes for cooperation and integration livestock (critical for semi-nomadic pastoralists, particu- • Support for improved management of water larly in Sahel). Expanded micro—and large-scale water resources to ensure sustainability and optimum storage is an important climate adaptation strategy and utilization of the resources tool for empowering women, both by securing drinking • Support for improving the quality of regional water sources and by opening up new livelihood opportu- investments and enhancing benefit sharing among nities through irrigation. Enhanced navigation, including the riparians reduced cross-border red tape, can unlock remote areas and poor landlocked countries such as Chad, Mali and • Support for improved stakeholder engagement Niger. With low electrification rates in the basin, hydro- Ultimately, there is the potential to influence and SECTION 2: CIWA’S MAJOR ENGAGEMENTS power generation remains the main source of untapped improve the quality of up to $8 billion of agreed priority clean power for most countries. Many of the benefits investments (focused both on institutions and informa- derived from cooperative water resources management tion systems as well as small and large-scale infrastruc- and development can in turn help catalyze benefits ture) in the basin up until 2025 as outlined in the NBA’s beyond the river, including developing agribusiness, Sustainable Development Action Plan (SDAP). enhancing regional trade, and enhancing prosperity and security in the basin. Criteria: Strategic importance Justification: The Niger River is the continent’s third Criteria: International river basin benefits longest river, at 4,200 km, and the basin covers a Justification: Basin level cooperative water resources surface area of nearly 1.5 million square km, extend- management and development remains essential for ing from the mountains of Guinea through arid and building the information, investments and institutions semi-arid lands of the Sahel. The River is the economic necessary to sustain climate-resilient growth. While mainstay for the nine riparian countries in the basin, cooperation in the Niger basin is reasonably robust, seven of which are among the 20 poorest countries in CIWA support will be instrumental in removing key the world. About 70 percent of the 100 million people bottlenecks and encouraging deeper and more effective in the basin live in rural areas where food, security and cooperation in one of the poorest and most vulnerable social well-being are largely dependent on unreliable regions in the world. rainfall and highly-variable river flow patterns. The basin’s population is highly impacted by extreme cli- Criteria: Strong regional interest and/or country mate and rainfall variability, both of which are likely to commitment be exacerbated by climate change. The vulnerability of people in the basin is aggravated by political instabil- Justification: There has been long-standing political ity, and sub-regional security threats remain. Economic support for cooperation in the Niger basin, including a growth, regional integration, reduction of conflict over robust legal framework, a functional NBA, and active water resources, and improvement of access to remote dialogue at the highest level (including semi-annual areas could help to stabilize the region. Even under NBA Council of Ministers and annual Heads of State conservative development scenarios, the basin has meetings). While the NBA remains a robust and well- tremendous potential for infrastructure development, established basin authority, both the NBA and riparian including hydropower and irrigation, and has the countries also recognize the limitations of its current potential to create 1.7 million jobs. cooperative framework and the need to continue to Cooperative management and development of deliver more tangible and transformational benefits for water resources infrastructure in the Niger basin can its citizens. It is in this context that a request for CIWA both boost growth and transform the livelihoods of its engagement and support on behalf of all nine riparian 10 CIWA ANNUAL REPORT 2014 countries was endorsed at the May 2013 N’Djamena mega-watt hydropower potential is harnessed. This infra- NBA Heads of State meeting. The proposed engagement structure can significantly contribute towards economic is demand-driven, since it is intended to be responsive growth and improvement of livelihoods, especially if to the strategic needs identified by the NBA in its accompanied by sound integrated water resources man- January 2013 letter to CIWA. agement (IWRM). Since 1987, the basin countries have come together Criteria: Complementarity and additionality under the auspices of the NBA to collectively endorse the NBA’s $8 billion, 20-year SDAP (2007). This plan Justification: This engagement will complement and encompasses a broad mix of large-scale transbound- build on the following three factors: (i) the NBA’s core ary infrastructure investments on the River Niger, (the budget, which stems primarily from country contribu- Fomi dam in Guinea, the Kandadji dam in Niger, and the tions; (ii) two regional International Development Taoussa dam in Mali), as well as small-scale infrastruc- Association (IDA)-funded Niger Basin Adaptable ture investments, ecosystem protection, and institutional Program Loans to the Water Resources Development capacity building. Of the proposed large-scale water stor- and Sustainable Ecosystems Management Program that age infrastructure, the Kandadji dam in Niger is the most supports rehabilitation of small-scale infrastructure, advanced in terms of preparation, and the only structure reverses degraded ecosystems, and supports the Kandaji currently under construction. program in Niger, including financing the hydropower scheme and related irrigation and local development activities; and (iii) institutional capacity development FIRST PHASE PROJECTS support provided by donors such as the German Agency 1. Niger River Basin Management Project for International Cooperation and Canada. Budget: $7.5M Implementation Start Date: January 2015 Duration: 5 years Niger Basin Program Partner: Niger Basin Authority (NBA) Countries Algeria, Benin, Burkina Faso, Cameroon, Project Objective: To enhance the NBA’s systems and Chad, Guinea, Ivory Coast, Mali, Niger, Nigeria, Sierra Leone tools for facilitating improved water resources manage- ment and development in the Niger River basin Size of Basin 2,105,200 km2 Annual Runoff 185,990 mm/yr Key Expected Results: Population (2000) 75,079,832 • NBA’s financial, institutional, organizational and technical systems strengthened, including implemen- Basin Program Objective: Strengthen cooperative man- tation of priority recommendations from the ongoing agement and the development of water resources in the institutional and organizational audit. Niger River basin • Selected financing mechanisms operationalized to Strategic Context: For thousands of years, the Niger develop a sustainable income stream for the NBA. River basin has supported the riparian population with • Water Charter implemented, focusing on the process diverse livelihoods such as farming, cattle grazing and of adoption and operationalization of the Niger Basin fishing. Today the basin, shared by nine countries in Water Charter’s Annex 2 on Water Management West and Central Africa, plays a particularly important Regulation for the Large Regulating Dams. lifeline in the arid and semi-arid lands of the Sahel. Less • A common vision on general principles of benefit than a quarter of the basin’s largely rural population has and cost sharing reached among the NBA Member access to electricity, and many depend on unpredictable States. and extreme rainfall patterns to support subsistence farming. The challenges facing the basin, including • Enhanced regional cooperation and benefit sharing food security, climate change, and extreme poverty around Fomi Dam, including the design and imple- are acute. The basin’s tremendous potential for infra- mentation of a clear roadmap for project develop- structure development—including hydropower plants, ment, decision-making points and engagement. irrigation schemes, and navigation facilities—is signifi- • Organization of investment forums and coordination cantly under-tapped, and less than a third of the 6,000 mechanisms among project financing partners. SECTION 2: CIWA’S MAJOR ENGAGEMENTS 11 SECTION 2: CIWA’S MAJOR ENGAGEMENTS In sparsely populated areas a sampling bias may give erroneous results. • Complementary assessments of envi- ronmental, social and cumulative impacts identified during the update of the Environmental and Social Impact Analysis (ESIA) for the Fomi dam. Project Update: The CIWA allocation for sup- port for the Niger River basin was endorsed in May 2014. Project prepara- tion is underway in close collaboration with the NBA. 12 CIWA ANNUAL REPORT 2014 HIGHLIGHTED FOCUS WEST AFRICA CIWA’s expanded presence in West Africa reflects approach. ECOWAS is leading regional integration the region’s shared history and strong impetus for efforts. In the water sector, it can facilitate cross-basin regional economic integration among countries exchange, support dialogue between water, energy where transboundary water resources underpin and agriculture sectors, and provide sector lead- regional development and poverty reduction. West ers with access to planning and finance ministers, Africa is endowed with almost half of the continent’s thus legitimizing water related decisions. ECOWAS hydrological resources, including 25 out of 60 trans- coordination has also led to the issuing of directives boundary basins. These twenty-five basins account for on specific issues such as guidelines for infrastructure 80 percent of all surface waters, resulting in countries development in the region. in the sub-region being highly interdependent. With CIWA is engaged with several basins and institu- the exception of Cape Verde, each country in the tions in West Africa on a number of fronts. Over 100 region shares at least one international river. Guinea stakeholders, including ministers and senior lead- is the water tower for many rivers in the region, and ers from RBOs and ECOWAS convened in Dakar in is part of twelve international basins. West African May 2014 for CIWA’s third CG meeting where CIWA countries share similar challenges, such as increasing showcased the dynamics of cooperative manage- population and uncertain climatic changes, extreme ment of transboundary water in West Africa and poverty, gender inequality and disparate economic received strategic advice and guidance on CIWA conditions. West Africa experienced positive eco- strategy, programs and priorities in West and Central nomic growth during the past few years (ranging Africa. In terms of programmatic assistance, CIWA between 5-8 percent growth in gross domestic is supporting ECOWAS’ efforts to operationalize product (GDP)), and there are substantial plans for regional directives, such as guidelines for infrastruc- infrastructure development across the region. West ture development, and is working with ECOWAS’ Africa’s riparian country leaders recognize that coop- Water Resources Coordination Centre (WRCC) to eration is a key component of growth, infrastructure provide region-wide benefits and develop founda- development and sustainable WRM and have set up tional knowledge for water management in Guinea. institutions to facilitate cooperation at multiple levels. The Volta Basin Program supports strengthening of Yet many of these institutions are challenged by lack one of the region’s newest RBO, the VBA. The Niger of capacity and face financial insecurity. Basin Program is now preparing its first project and In recognition of this context, where coopera- will focus on financial sustainability of the NBA and tive and sustainable growth is increasingly necessary, benefit sharing and stakeholder engagement around West Africa has been making considerable strides Fomi dam, one of the ECOWAS-selected eight prior- towards regional integration by utilizing a strategic ity dams in the region. SECTION 2: CIWA’S MAJOR ENGAGEMENTS 13 Sustained Engagement: Volta Basin Program Countries Benin, Burkina Faso, Côte d’Ivoire, a vital need in view of the highly transboundary nature Ghana, Mali, Togo of the challenges and opportunities in the basin. The six Size of Basin 411,202 km2 riparian countries of the basin face energy shortages and Annual Runoff 47,646 mm/yr growing demand, paired with food insecurity and high Population (2000) 18,604,762 levels of climate variability, including increased risk of floods and droughts. For example, major flooding was Basin Program Objective: Strengthen cooperative man- experienced in Burkina Faso and Togo several times over agement and the development of water resources in the the last decade, resulting in damages to transport infra- Volta basin. structure, housing, small dams and crops. Historically, a lack of coordination led to heightened regional tensions Strategic context: The Volta River basin was one of over water allocation for irrigation and hydropower the last basins of its size in Africa to establish a formal development and over flood risk. For example, Ghana cooperative structure for its riparian countries, fulfilling remains concerned about the functionality of upstream SECTION 2: CIWA’S MAJOR ENGAGEMENTS 14 CIWA ANNUAL REPORT 2014 floodgates of the Bagre dam (located in Burkina a clear decision making and reporting hierarchy, and Faso), and about the functionality of the downstream articulating well-defined designs, roles and responsi- Akosombo dam (located in Ghana). Water resources bilities for each arm of the institution. management and investment planning at the national • The basin’s Water Charter is adopted, establishing a level is complicated by uncoordinated unilateral devel- legal foundation that delineates the water resources opment and management of water infrastructure in the usage of the riparian countries, as well as roles and individual riparian countries. responsibilities of water resources stakeholders. The VBA was formally established in 2009, through • Increased monitoring and exchange of information collective support of the basin’s riparian countries, in on transboundary issues and projects. order to meet the above challenges. Despite this first step, the riparian member states have come to realize • Communication and cooperation between the ripar- that cooperation in the Volta basin is still in its infancy ian countries and stakeholders on WRD is improved. and needs to be supported by trust and political will. • Environmental and water resources concerns that are Since its inception, the organization has made strides in identified in different regions of the basin, such as meeting its mandate. CIWA support for the VBA will be impacted water quality, coastal degradation, reduced blended with GEF support in order to expand the scope flow, soil erosion, and sedimentation, are reduced of the program and address governance and manage- through implementation of select priority actions ment of transboundary resources, water quality, ecosys- with transboundary significance. tem degradation and climate concerns. CIWA’s support to the Volta, carefully crafted based on assessment of the Project Update: CIWA support for the VBA will be most pertinent needs, can prove transformational for the blended with GEF support in order to expand the scope young RBO. of the program and address governance and manage- ment of transboundary resources, water quality, eco- system degradation and climate concerns. Having been FIRST PHASE PROJECTS endorsed by GEF Focal Points in the six riparian coun- tries, as well as by environment and water line minis- 1. The Volta River Basin Institutional Development tries of the riparians, the project has met most of the and Strategic Action Programme Implementation GEF requisites for support, and is pending final approval Project from the GEF board (November, 2014). The project is Budget: US$3 million (complementing US$7.2 million being processed according to Bank procedures (stream- from GEF, pending GEF Secretariat approval) lined with GEF), and implementation is expected to Implementation Start Date: April 1, 2015 begin in April of 2015. Duration: 4 years Partner: Volta Basin Authority 2. Volta Basin Support Program: Independent Assessment of the Volta Basin Authority Project Objective: to strengthen transboundary water Budget: US$500,000 resources management in the Volta River basin through Implementation Start Date: November 1, 2014 institutional development and implementation of priority Duration: 1 year actions of the Strategic Action Programme. Partner: World Bank executed Key Expected Results: Project Objective: to carry out a comprehensive • VBA’s role in promoting cooperative management institutional assessment of the VBA with the aim of and development of resources in the basin will be strengthening its capacity to fulfill its mandate, including strengthened, which will help countries overcome cooperative management and development of Volta basin challenges related to energy and food security, water resources. climate variability, flood and drought, environmental degradation and maintaining ecosystem services to Key Expected Results: improve the quality of life for the basin’s growing • The consultative environment between the VBA, population. stakeholders and government representatives is • VBA procedures for administration and financial strengthened so that there is increased ownership of management are strengthened, including establishing the institution. SECTION 2: CIWA’S MAJOR ENGAGEMENTS 15 • The political economy dynamics which influence The third CG meeting was well attended, conven- implementation of the VBA’s mandate are better ing almost 100 representatives of RBOs from the wide understood by the VBA and basin stakeholders. reaches of the African continent, along with represen- • A review of the organizational structure of the VBA tatives of other programs, national governments, civil identifies areas for improved effectiveness, includ- society organizations, research and consulting firms, ing organizational architecture, the role of its main international water agencies and international develop- organs and capacity-building needs. ment partners. CIWA’s planned recipient-partners (VBA, NBA, LCBC, and ECOWAS WRCC) made presentations • A comparative analysis of policy and legal instru- on the basin contexts in which CIWA will provide sup- ments governing transboundary water resources port. This afforded attendees the opportunity to gain a in the basin, including recommendations for their better understanding of proposed project details and the enhancement. needs of basin communities being supported. Despite • Draft terms of reference for VBA’s internal regula- the existence of basin-specific complexities, the presen- tions and communications plan. tations highlighted common regional concerns and the similar challenges faced in West Africa. For instance, a Project Update: This assignment is being carried out common theme expressed among RBOs was the impor- in close coordination with preparation of the recipient- tance of establishing sound institutional, legal and executed activity (Phase 1 project 1, described above) in SECTION 2: CIWA’S MAJOR ENGAGEMENTS operational frameworks related to investment projects. order to identify critical areas of institutional strengthen- In addition, ECOWAS is taking the lead in developing ing that are required for the VBA to carry-out its man- guidelines for developing water resources infrastructure date. Implementation of this activity is underway where and IWRM to complement institutional frameworks of Terms of Reference have been finalized, and a consultant transboundary RBOs in the region. The organizations is being procured. The activity is expected to start in attending the meeting expressed strong support for a November, 2014 and to conclude in FY15. proliferating culture of knowledge sharing and exchange. Meeting participants benefited from insightful remarks on how to maintain long-standing political commitment CIWA’s Third Consultative Group to transboundary cooperation contained in a key note (CG) Meeting: Focus on West and address by the Commissioner of the OMVS. Leaders from other basins across Africa, including the Nile and Central Africa Zambezi basins, commented on ways cooperation has In FY14, CIWA significantly expanded its focus on West been advanced in their region and sought insight from and Central Africa in an effort to balance its portfolio the West African organizations on how to bring about a across Africa and to meet the demand expressed and similar culture of cooperation. needs identified in the region. Projects in the Niger, Volta Attendees engaged the panelists by discussing issues and Lake Chad basins were initiated or advanced, and relevant to their respective basins and communities. The support for ECOWAS was streamlined, to help ensure issue of financial and institutional sustainability was that CIWA’s resources are used strategically. In order highlighted by many RBOs in attendance and demon- to best plan, understand and advance these programs, strated the need for RBOs to maintain strong linkage CIWA hosted its third CG meeting in Dakar, Senegal dur- between transboundary water issues and national pro- ing the fifth Africa Water Week. The objective of the CG grams. Participants agreed that strengthening knowledge meeting was to “showcase the dynamics of cooperative and information on international waters is important in management of transboundary waters in West Africa and order to advance cooperation within basins. Participants to receive strategic advice and guidance on CIWA strat- discussed the need to have shared vision processes when egy, program, and priorities in West and Central Africa.” developing basin plans to ensure that the voices and This CG meeting built on two previous CG meetings: the needs of all stakeholders in a basin are integrated. The first held in March 2012 in Marseille, France, during the meeting was successful as demonstrated by the many World Water Forum which launched the CIWA program; attendees who expressed an interest in participating and the second held in September 2013 in Stockholm, in future meetings that facilitate information exchange Sweden, to receive strategic advice on the program’s among basin organizations and where transboundary strategic direction and its focus. water concerns can be brought to light. 16 CIWA ANNUAL REPORT 2014 Sustained Engagement: Nile Basin Program Countries Burundi, Democratic Republic of Congo water resources management and development to facili- (DRC), Egypt, Eritrea, Ethiopia, Kenya, tate sustainable climate-resilient growth. Rwanda, South Sudan, Sudan, Tanzania, Uganda Strategic Context: The Nile River basin is shared by Size of Basin 3,020,100 km2 eleven countries, each of which faces unique challenges, Annual Runoff 184,816 mm/yr and all have ambitious national development plans to Population (2010) 238,000,000 fuel economic growth and promote poverty alleviation efforts that depend critically on the sustainable use Basin Program Objective: The long-term objective and management of shared Nile waters. The benefits of CIWA in the Nile basin is to strengthen cooperative and sustainability of many of these investments could be enhanced from a regional perspective. Cooperative development and management of shared Nile waters can generate substantial “win-win” benefits to help unlock the full productive potential of the Nile basin for more prosperous and sustainable national and regional growth and poverty reduction. The CIWA Nile Program follows on the heels of over a decade of MDTF support provided to the basin through the NBTF. Over the past decade, the Nile countries have embarked on building a better knowledge base, institut- ing a cooperation platform, expanding outreach with professional networks, increasing engagement by stake- holders and civil society organizations, and developing an investment portfolio that encourages strategic coop- eration between riparians and that responds to sustain- able development needs in the basin. The CIWA program is enabling countries to build from this progress to date, using a targeted approach along two tracks: grants to the NBI, an inter-governmental transitional institution established by all of the riparian states and dedicated to fostering collaborative and sustainable development and economic growth through the shared resources of the Nile; and the NBD, a network of civil society organiza- tions that boasts membership from across the basin countries, and aims to increase voices of communities in development of basin resources. The CIWA Nile Program is envisaged as a long-term engagement, designed to provide complementary sup- port in the areas of information, institutions and infra- structure, in a flexible and service-oriented approach that reflects the outlook of the basin organizations being financed by CIWA. Through CIWA recipient-executed grants, the NBI knowledge enhancement activities have been shown to amplify the call for cooperation being advanced by the institution; similarly, in response to riparian country interest, the NBI is actively advancing individual projects that were prioritized though broad investment opportunity studies, while increasing both SECTION 2: CIWA’S MAJOR ENGAGEMENTS 17 in-house capacity of the centers, as well as of its col- tools and analytical products; preparing and packaging laborators in government and academia. The NBTF, the investment projects; developing awareness raising and NBI’s primary source of donor funding, is scheduled to cooperative platform; and facilitating dialogue between close in December 2014. In order to offset the waning stakeholders at many levels. The NCORE project is made levels of grant support towards the NBI, the institution up of three components that are implemented by the developed a Financial Strategy designed to generate three NBI centers, and each component is designed to funding to cover the institution’s core costs, including leverage the comparative advantage of the center imple- mechanisms to gradually increase country contributions. menting it. The Nile Secretariat (Nile-SEC) is advancing Adherence to the planned financial schedule is one of WRM and building a platform for cooperation, while the determining factors for CIWA’s future institutional the Nile Equatorial Lakes Subsidiary Action Program support. Despite strong NBI efforts, progress towards Coordination Unit (NELSAP) and the Eastern Nile NBI financial sustainability is lagging because contribu- Technical Regional Office (ENTRO) are expanding their tion commitments for the FY have not been met. investment portfolios in the basin, and are providing The NBD is a network of civil society and com- analytical products around development issues. munity organizations working on Nile water-related As a result of the successful implementation of the issues across the basin. Recognizing similar interests project, the original scope of the project was expanded in and needs, the NBD members have joined the network FY14 to include additional funding from both the NBTF SECTION 2: CIWA’S MAJOR ENGAGEMENTS in order to present strong unified voices in response to and CIWA. Highlights of the new activities include: a development initiatives taking place in the basin. They MSIOA of the Eastern Nile (EN); support for preparation also represent a consultative stakeholder group that of priority investment projects in the Equatorial Lakes addresses NBI projects and activities. CIWA’s support to region; development of customized communications and the NBD is designed to complement the NBI’s coordina- outreach products; and an integrated package of support tion and infrastructure development roles by providing a for the most recent NBI member, South Sudan. mechanism for information dissemination and dialogue between civil society and decision makers. CIWA support Highlights of Progress to Date: for the NBD will allow the network to develop state-of- (Additional details are included in the NBTF Annual the-art mechanisms for connecting different levels of Report) stakeholders in the basin and increasing civil society’s • Nile basin cooperation and dialogue were advanced understanding of the ways that planned developments • South Sudan became the newest member of the may impacts the lives and livelihoods of the people liv- NBI and is receiving a comprehensive cross-center ing in the basin. package of support. Additional CIWA support may be identified as basin cooperation and the CIWA program evolve, and as addi- • The Eastern Nile Council of Ministers, the highest tional donor funds become available. governing body for ENTRO, resumed governance meetings in January 2014. The June Council meet- FIRST PHASE PROJECTS ing included representation from three of four EN countries, affirming their commitment and resolve 1. Nile Cooperation for Results (NCORE) Project to advance cooperation around the EN. Budget: US$14.5 million (complementing • The NBI facilitated a number of stakeholder US$18.8 million from the NBTF) dialogues to discuss regional issues, including Nile Implementation Start Date: January 2013 Day celebrations and Permanent Secretary study Duration: 4.5 years tours. Partner: Nile Basin Initiative—three centers • The Strategic Dialogue organized by the Nile- Sec brought together members of the Technical Project Objective: To facilitate cooperative water Advisory Committee, Council of Ministers, develop- resources management and development in the Nile ment partners and others to discuss NBI’s institu- basin. tional sustainability and the closing of the NBTF. Project Update: Consistent with NBI’s long-term strate- • Planning for the upcoming Nile Basin gic plan, NCORE supports a diverse set of interventions Development Forum is underway. It is scheduled including: developing and disseminating information for October, 2014. 18 CIWA ANNUAL REPORT 2014 • National Focal Points received training to enable gender audit and began to incorporate feedback them to serve as liaisons for the NBI and to bring from the process including working with CIWA to national-level governmental attention to pressing marshal tools and resources so that it can revise Nile issues. its gender guidelines and checklists • Nile Decision Support System (DSS) is more acces- • Water resources development was advanced sible for users • NELSAP governance approved NELSAP’s prepara- • Additional DSS licenses were distributed to minis- tion of ten new investment projects (Table 1). tries and universities in the basin. • NELSAP has facilitated advancement of the • The NBI trained 120 water professionals on use of Muvumba Irrigation and Watershed project, which the DSS. will irrigate 13,000 ha of land, is expected later in • A DSS Help Desk was established to provide addi- the year. tional support to DSS users. • NELSAP is preparing six additional investment • Application of the DSS to Nile issues is increasing. projects in water storage, irrigation, flood protec- For instance, the Secretariat hired its first PhD tion and water supply through CIWA support. candidate interns who used DSS principles in their Procurement for preparation of feasibility studies research field studies. and environmental and social reports for these investment projects is underway. • Water resources knowledge products and tools were enhanced • ENTRO began preparation of an EN MSIOA, which will include analysis and a consultative process • Communications products were developed and to help countries agree on a next round of invest- distributed to different types of stakeholders. ment projects of regional significance. It builds These products included the NBI Corporate on the sectoral studies carried out by ENTRO, and Report, the Success Story on Nile Cooperation, draws from the methodologies for similar work government briefings, and technical publications. employed in the NEL region and the Zambezi. The Website usage increased and the Secretariat is inception phase has been completed and included working with the other centers to improve the initial consultations with ENTRO and development ease of access to NBI information. partners. • ENTRO is meeting its project target for the number • Dam safety activities in the EN are underway of visits to its website portal. Additional work is required to improve the user interface portion of • ENTRO and country professionals worked the portal to allow easier access and to offer better to develop a Regional Reference Dam Safety communication of what features are available on Guideline, a Small Dams Guidelines, and a Road the website. Map for the development of an EN dam safety framework. • ENTRO is enhancing its flood preparedness tool to help increase the ability of users of the center’s • ENTRO completed two relevant training work- flood forecasting system to predict and understand shops targeting EN country professionals and droughts and flash floods in the EN. ENTRO engineers, including hands-on Potential Failure released regular flood forecasting bulletins, includ- Mode Analyses (PFMA) of five dams in the region. ing timely bulletins during a period when com- • An assessment of dam safety (legal, policy and munities along the Blue Nile were experiencing technical capacity) in the EN (Ethiopia, South- severe flooding. Sudan and Egypt) was carried out, including • As part of a Nile Basin River Monitoring Strategy, review of environmental and social matters. the NBI is developing design and implementation • NBI outreach with professional and stakeholder plans for a regional basin-wide hydro-meteoro- networks was expanded logical system. An inception report for the design • ENTRO is expanding its outreach through four of this system was presented with country needs new teams of young professionals from all its assessments during an August 2014 workshop. countries to support its major activities under • NBI/NELSAP finalized a Swedish International NCORE: EN Flood Season program; Dam Safety; Development Cooperation Authority-funded Benefits of Cooperation; and the MSIOA. SECTION 2: CIWA’S MAJOR ENGAGEMENTS 19 • NBI South Sudan package of services is under • A study of least-cost power generation expansion preparation for South Sudan and integration of South Sudan • An additional support program for South Sudan into the regional grid was initiated and selection of was designed. It will assist the newest NBI mem- consultants is under way. ber with capacity building, knowledge manage- • Design of a South Sudan Hydro-met Information ment, and planning support. System is underway. TABLE 1. Indicative list of investments supported by NCORE from grant inception to present featuring estimated investment values and numbers of potential direct beneficiaries. Beneficiaries Investments Projects (People) (US$ m) Area of CIWA Support Source of data Mara Valley 72,000 50 Feasibility/ESIA NEL WRD Project, Mara Valley Irrigation Scheme Final Pre-Feasibility Report Ngono 99,000 50.4 Feasibility/ESIA NEL WRD Project, Ngono Valley Irrigation SECTION 2: CIWA’S MAJOR ENGAGEMENTS Scheme Final Pre-Feasibility Report Muvumba 168,000 104.3 Facilitated agreement Detailed Identification Studies for Potential Large Dams in the Kagera Basin Kabuyanda 41,000 39 Feasibility/ESIA Feasibility study of a Kagera Integrated Watershed Management (2012) Nyabanja 12,000 58.7 Feasibility/ESIA Pre-feasibility Studies for the Development of Multi-Purpose Storage Reservoirs in the SMM River Catchment Nyimur — 90 Facilitated agreement Aswa Basin Development Strategy & Investment Plan Keben 45,000 Facilitated agreement Yala River Basin Development Strategy & Investment Plan Ruvyironza 126,000 158 Feasibility/ESIA Pre-feasibility study of a Kagera Integrated Watershed Management (2012) Sio Sango 20,000 39.5 Feasibility/ESIA Pre-feasibility Studies for the Development of Multi-Purpose Storage Reservoirs in the SMM River Catchment Gogo 1,152,000 523.7 Facilitated advancement Identification of a Multi-Purpose Water Resources Development Project in the Gucha- Migori River Basin in Kenya—Investment Plan Bunyunyu 675,625 260.8 Facilitated advancement Identification of a Multi-Purpose Water Resources Development Project in the Gucha- Migori River Basin in Kenya—Investment Plan Keben 45,000 24 Facilitated agreement Investment Plan for the Yala River Basin in Kenya Rusumo Falls 1,240,000 306 Facilitate Project Appraisal Document implementation EN Watershed 570,000 121 Feasibility/ESIA Cost based on ongoing ENTRO watershed management work in both Ethiopia and Sudan EN MSIOA TBD TBD Identification Estimates being developed TOTAL 4,265,625 US$1,825 beneficiaries 20 CIWA ANNUAL REPORT 2014 2. Engaging Civil Society for Social and Climate In the coming months, the NBD will also focus on Resilience in the Nile Basin reanimating its network by shifting from a top-down flow of information model to a more dynamic plan that Budget: US$1.5 million engages and draws information and energy up from its Implementation Start Date: December 2013 membership. Specific activities will include increasing Duration: 3 years its online visibility, creating press releases about new Partner: Nile Basin Discourse developments (for example hiring of new staff) and Project Objective: To contribute to the equitable and increasing utilization of social networking sites such as sustainable development of the Nile basin through Facebook and Twitter. A stakeholder mapping activity increased engagement of civil society in Nile basin coop- will help the organization better understand its main eration programs and processes. stakeholders, assess their needs, and identify resources its member organizations and other stakeholders can Project Update: This project was finalized and began offer. The NBI is in the process of undertaking related implementation during FY14. This first phase project “knowledge audit” and stakeholder mapping activities. focuses on three key areas: strengthening the NBD Recognizing that the two exercises are complementary, Secretariat; improving communications and outreach; and the organizations agreed to share terms of reference and engaging in capacity building for NBD members. Before to collaborate where possible. implementation began, the NBD recruited a new Regional Manager and a new Monitoring and Evaluation Officer. 3. Nile Basin Support Program The two new staff members will be instrumental in Budget: US$1 million implementing activities, particularly in monitoring prog- Implementation Start Date: January 2015 ress in achieving project goals and overall CIWA results. A Duration: 3 years meeting of the Board in July 2014 retroactively approved Partner: World Bank-executed the NBD’s work plan as well as the work plan for 2015. The NBD in collaboration with the Both ENDS orga- Description: Implementation support and technical nization and Delft University, carried out a workshop in advice for recipient organizations. Analytical work and February 2014 in Jinja, Uganda, designed to “instigate evaluation of both the Nile Basic Support Program and the process of defining a new agenda for the Nile Basin” the Nile Story are being implemented through this fund. by developing “storylines of plausible futures for the This work will be managed by the World Bank in part- Nile Basin for the next 30 years”. The workshop was nership with basin organizations. attended by organizations from Kenya, Uganda, South Sudan, Sudan, Ethiopia, Egypt, Tanzania, and DRC that Project Update: To make the best use of scarce represented interests of fisheries, energy officials, envi- resources, the NBTF is being used to fund the Nile ronmental conservation organizations, universities, min- Basin Support Program. However, the NBTF closes istries, the NBI, youth and women. In addition, the NBD in 2015. In previous years, as part of the Nile Basin participated in a NBI media capacity building event this Support Program, the NBTF supported an Independent year titled “The Nile: Journalists Training Workshop.” Evaluation of the NBTF, technical modeling assistance The NBD highlighted its planned activities and discussed for the NBI, remote sensing, and other facilitation work. the role of water advocacy and effective use of media. The World Bank has also commissioned a political In order to gain a higher profile and extend its out- economy analysis of the development track of activities reach efforts, the NBD will present a paper on “Benefits in the Nile to benefit and enhance this Support Plan. of Cooperation” at the 2014 Nile Basin Development Currently, the World Bank is carrying out a “Nile Forum. The two-day event brings together scholars, aca- Story” to develop new ways to describe the results of demics, practitioners and riparian community and gov- the Nile program over the past 15 years (1999-2014) in ernment representatives to discuss the latest issues on both qualitative (evidence in stories) and quantitative Nile basin development, challenges and opportunities. (evidence in numbers) terms. After the initial architec- The NBD will introduce the perspective of communities ture and expectations of the program are described, the and organizations represented by its network, and will Nile Story employs a “theory of change” framework in reflect on the impact of regional cooperation on local charting the pathway over time from problem to inputs benefits. The NBD also intends to convene side meetings to outputs to outcomes and to impact. The assignment related to disaster and climate risk management. is expected to demonstrate the breadth of the program SECTION 2: CIWA’S MAJOR ENGAGEMENTS 21 as well as to highlight which issues warrant coverage in transboundary issues, was drafted and is being tested more depth. The storyline will also highlight some of the during in-person interviews during project team field outcomes that are “above and beyond” targeted results— visits. outcomes that were beyond expectation or that have In addition, the Bank has provided targeted support taken the program into different directions from what to the NBI for further implementation of its projects. was originally envisaged. This activity is currently at its This includes the provision of gender-related support at inception phase. A first draft of the inception report was NELSAP, and support to NBI provided by world-class developed and distributed among NBI stakeholder and experts. including guidance from a past manager of a development partners for review. In addition, a percep- complex river system, the creators of several hydrologi- tional survey, which will be used to understand how the cal models, experts in spatial analysis and visualization, program has influenced perceptions on cooperation and and experts in hydromet systems designs. SECTION 2: CIWA’S MAJOR ENGAGEMENTS 22 CIWA ANNUAL REPORT 2014 Sustained Engagement: Zambezi River Basin Program Countries Angola, Botswana, Malawi, Sustained economic growth above six percent Mozambique, Namibia, Tanzania, in many of the riparian states is both providing new Zambia, Zimbabwe opportunities and increasing development pressure on Size of Basin 1,380,200 km2 the basin’s resources. More than US$16 billion worth of Annual Runoff 140,686 mm/yr investments have been identified at the pre-feasibility Population (2000) 30,675,804 or feasibility stages of preparation, and the combined GDP among the ZRB riparian states is estimated at over Basin Program Objective: The long-term objective of US$100 billion. While the region continues to experi- CIWA support is to strengthen cooperative management ence increasing prosperity, poverty is persistent across and development within the Zambezi River basin to the basin and income inequality in some states is among facilitate sustainable, climate-resilient growth. the highest in the world. The challenge in the ZRB is to promote cooperative development and management Strategic Context: The Zambezi River basin (ZRB) is of international waters in a way that drives sustainable shared by eight countries: Angola, Botswana, Malawi, economic growth and improves the livelihoods of the Mozambique, Namibia, Tanzania, Zambia, and populations that critically depend on the sustainable use Zimbabwe. In addition to meeting the basic needs of and management of shared waters. This year the coun- more than 30 million people and playing a central role tries in the basin made significant progress in establish- in the riparian economies, the river sustains a rich and ing ZAMCOM as a permanent RBO. Upstream work to diverse natural environment. prepare the Batoka Gorge HES is under implementation This year CIWA has deepened its engagement in the through a grant with the ZRA, and numerous strategic ZRB, which has been the subject of a long history of analyses that complement CIWA’s support to ZRA and sustained efforts to foster cooperative development. SECTION 2: CIWA’S MAJOR ENGAGEMENTS 23 ZAMCOM are underway and are being used to demon- • Flood-forecasting and early warning system strate the evidence base for cooperation. developed. The ZRB has always been central to visions of • Zambezi Water Information System enhanced. economic development and prosperity in the southern African region, and there is a long history of sustained Project update: The countries in the Zambezi basin efforts to foster cooperative development of the ZRB. made significant progress in establishing ZAMCOM as The evolution of international cooperation in the ZRB a permanent RBO during FY14 including: establishing has developed over more than three decades, building on and operationalizing all of the Permanent Organs of the the earlier foundations established during the time of the ZAMCOM (ZAMCOM Council of Ministers, ZAMSEC federation and also during the development of the Kariba and the ZAMCOM Technical Committee (ZAMTEC)), dam hydropower complex. Negotiations leading to the establishing legal instruments and financial systems in ZAMCOM Agreement date back to the late 1980s. The support of the hosting arrangements in Zimbabwe, tran- ZAMCOM Agreement came into force in 2011 after six sitioning assets from Gaborone to Harare, and appointing of the eight riparian countries completed their ratifica- an Executive Secretary. tion processes. In 2013 Zambia ratified the ZAMCOM CIWA’s initial support for ZAMCOM was developed Agreement, and in 2014 the Interim ZAMCOM secretariat and endorsed by ZAMTEC, the Zambezi Basin Advisory transitioned into a permanent ZAMCOM Secretariat Committee (BAC) and the CIWA AC and appraised by SECTION 2: CIWA’S MAJOR ENGAGEMENTS (ZAMSEC). the World Bank prior to the transition from an interim The CIWA Zambezi River Basin Program has been Secretariat in Botswana to a permanent secretariat in envisaged as a long-term engagement consisting of a Zimbabwe. As a result of this transition and the estab- series of programs, each with different projects at vari- lishment of the Secretariat in Harare, CIWA is re-apprais- ous levels (including at the country level, among sub- ing the project. The activities have been reconfirmed regional clusters, and across the basin) and also across with the new Secretariat and key procurement activities different sectors within the basin. CIWA uses the IWRM have been launched in anticipation of approval this strategy developed for the basin. The program utilizes year. Options are being explored while approval is still a mix of instruments, including continued dialogue, pending to blend and coordinate project details with new analytical work and technical assistance, coupled with co-financing opportunities under the GEF. investment preparation and infrastructure financing. The first phase of the program has two recipient partners: the 2. Zambezi River Basin Development Project ZAMSEC and the ZRA. Budget: US$6 million Implementation Start Date: Approved June 2014; FIRST PHASE PROJECTS Signed July 2014 and Declared Effective August 2014 1. Zambezi River Basin Management Project Duration: 2 years Partner: Zambezi River Authority (ZRA) Budget: US$4 million Implementation Start Date: January 2015 Project Objective: To advance preparation of the Batoka Duration: 3 years Gorge Hydroelectric Scheme and strengthen cooperative Partner: ZAMCOM Secretariat (ZAMSEC) development within the Zambezi River basin. Project Objective: To strengthen ZAMCOM’s role in Key Expected Results: promoting cooperative management and development in • Updated engineering study for the Batoka Gorge the ZRB through institutional strengthening, improved HES. information sharing and decision support, and strategic planning. • ESIA for the Batoka Gorge HES. • Improved safety of the existing Kariba hydropower Key Expected Results: complex after completion of a dam break analysis. • Plan for financial sustainability adopted based on • Completion of legal review of governance and orga- member state contributions. nizational oversight. • Basin-wide Master Plan developed. • Options developed for the future role of ZRA in the Zambezi basin. 24 CIWA ANNUAL REPORT 2014 Project update: The project is currently under imple- order to provide evidence to make the case that benefits mentation (the project was approved June 2014). are gained through cooperation. The case study is based Consultants for the engineering study and for the ESIA on a framework that is structured in three parts: Part i) are under contract, and work is underway. The procure- describing the basic hydrological, economic and politi- ment processes for Transaction Advisors and the Dam cal conditions in the basin, including the existing water Break Analysis have been launched. However, because infrastructure, planned water development projects, of resource constraints, the Dam Break Analysis will be and existing and envisaged governance structures; Part financed under a parallel project being implemented by ii) examining the factors that influence international ZRA for the rehabilitation of the Kariba Dam. Additional cooperation in the basin, as well as the challenges lying financing from CIWA is being sought to provide funds ahead, such as those resulting from climate change; and for Transaction Advisors under the CIWA Grant. Part iii) providing a synthesis and drawing conclusions in support of the overall objectives of CIWA in Africa. 3. Zambezi River Basin Support Program The study will be finalized upon further consultations with the riparian states. Budget: US$1 million An analysis titled “The Institutional Assessment of Implementation Start Date: January 2013 the Zambezi River Authority”, a review of the govern- Duration: 3 years ing legal framework for the effective and efficient use Partner: World Bank-executed of waters and other resources within the Zambezi River Project Objective: To facilitate sustainable, climate- under the ZRA, was completed in FY14. The analysis resilient cooperative management and development of helped to identify national and local legislation that water resources within the ZRB. This is intended to pro- results in potential overlapping authority over economic, vide evidence-based analytical work and “just in time” environmental, technical, safety, or other areas affect- technical assistance within the broader context of the ing the Zambezi River. This study will be utilized in an objectives defined for the ZRB. options paper that identifies potential measures, and that outlines detailed steps toward harmonizing existing poli- Progress Update: The program was formulated through cies and laws to improve the cooperative management of a consultative process led by the ZAMSEC in collabora- waters within the ZRB. tion with the ZAMTEC, riparian states, the International Cooperating Partners (ICPs), and the CIWA BAC. Basin Support Program activities were presented to the ZAMTEC at its meetings in November 2012 and March Ongoing Engagement: Southern 2013 as integral parts of the overall basin program. African Development Community In partnership with the University of Cape Town, Budget: $10.2 million ($2 million CIWA, $8.2 million work is underway on an analysis entitled “The Climate GEF) Change Assessment of the Energy-Water Nexus in the Implementation Start Date: July 2014 Zambezi River Basin”. This analytical effort aims to Duration: 5 years assess the potential impacts of climate change in the Partner: Southern African Development Community ZRB through a scenario-based analysis within the (SADC) regional context of the energy-water nexus. The results will highlight the feedback mechanisms between water Project Objective: To support sustainable management management and development in the ZRB and power of groundwater at national and transboundary levels generation in Southern Africa, and will illustrate the across SADC Member States. trade-offs between irrigation and hydropower that are often necessary due to limited water resources. The Key Expected Results: analysis will be shared during ZAMCOMs Strategic Plan • Development of the SADC GMI into a regionally formulation. recognized center of excellence. An analysis titled “The Context for Cooperation in the Zambezi River Basin” is under development. It will • Transboundary and national institutions strength- explore some of the underlying geo-political contexts ened to improve regional cooperation. for framing cooperative agreements and for informing • Enhanced capacity for sustainable transboundary contemporary hydro-political positions in the basin in and national groundwater management in the SECTION 2: CIWA’S MAJOR ENGAGEMENTS 25 Ministries and departments responsible for ground- Project Objective: To determine the viability of water water in SADC Member States. resource development options for Botswana to access water from the Lesotho Highlands by assessing engineer- Project Update: In FY14, the project document and ing, costing, social, legal, environmental, economic and legal agreements were prepared, appraised and negoti- financial information. ated with the grant recipient, the SADC Secretariat in Botswana, and the project implementing entity, the Key Expected Results: University of the Free State in South Africa. On April 24, • In-depth analysis of potentially transformative 2014, the World Bank approved the Project’s financing development options for the further transfer of water of US$8.2 million from the GEF and US$2.0 million from from the Lesotho Highlands to Botswana and South CIWA. At the same time, the CEO of the GEF provided its Africa. endorsement for GEF financing on March 5, 2014. During • Examination of additional transfer options from FY15, the legal agreements will be signed and the project the Lesotho Highlands and the development of is expected to become effective shortly thereafter. Key additional, sustainable revenue streams for Lesotho procurements have begun with the processes for hiring based on renewable water resources. the Director for the SADC GMI already underway. • Inform Botswana’s options for securing water sup- plies and consolidate Lesotho’s position as the water SECTION 2: CIWA’S MAJOR ENGAGEMENTS tower of southern Africa. Ongoing Engagement: Lesotho • Contributes to an emerging regional strategic analy- Highlands Botswana Water Transfer sis of long term water supply security in southern Africa. (Orange-Senqu Basin) Project Update: Appraisal and negotiation of the recipi- Countries Botswana, Lesotho, Namibia, South Africa ent executed grant has been concluded. The package Size of Basin 944,051 km2 is expected to be approved in August and signed in Annual Runoff 476 mm/yr September, 2014. Procurement has been under imple- mentation in parallel. The five bids received in response Population (2000) 12,779,823 to the Request for Proposals are currently under review. Budget: $2 million Implementation Start Date: September 2014 Duration: 2 years Partner: Government of Botswana, on behalf of the government of the Kingdom of Lesotho and the government of South Africa 26 CIWA ANNUAL REPORT 2014 3  27 SEC TION 3 THE CATALYTIC SUB-PROGRAM SECTION 3: THE CATALYTIC SUB-PROGRAM A frica is rich in water resources, yet cooperation over transboundary waters is stifled by shortcomings in both institutions and policies, and by knowledge waters central to Africa’s growth. The Catalytic Sub- Program and its activities have attracted strong Bank- wide interest, facilitating the strengthening of linkages gaps related to the challenges of and benefits from with Bank operations and providing opportunities to shared water development and management. The CIWA leverage technical expertise and long-standing regional Catalytic Sub-Program addresses these challenges with partnerships. knowledge generation, capacity building, and opportu- Projects currently under implementation include: nistic activities. Borne out of important lessons learned development of a baseline reference of Africa’s interna- from previous efforts to promote cooperation, such as tional waters; a comparative analysis of institutions that the NBTF, the Catalytic Sub-Program activities focus on support cooperation in international waters; an analysis identifying and understanding barriers to cooperation, of how political economy plays a role in transboundary exploring and advancing cooperative opportunities water cooperation; and work that pulls together relevant outside of CIWA’s main basins, building stakeholder information on how cooperation provides economic capacity, generating regional public goods, brokering benefits to people living in transboundary basins. CIWA’s knowledge and developing new models and tools to Catalytic Sub-Program is also supporting efforts to pro- foster cooperation in basins throughout Africa. vide people with information they need to make water This FY, CIWA has deepened its engagement and and climate-related decisions. One example is the Spatial expanded implementation to strengthen the knowledge Agent application which was launched this year. The base and analytical foundation to bring about coopera- Spatial Agent app allows users to access, use, overlay tive management and development of international and visualize key water, climate, agriculture and energy waters in Sub-Saharan Africa, to help spur sustainable, data from over 300 data sources, and is now publicly climate-resilient growth throughout the region, and to available for iPad and iPhone. Finally, CIWA took needed provide new opportunities to improve the lives of ripar- steps to prepare catalytic activities with ECOWAS and in ian country populations. In FY14, a process was final- the Okavango and Lake Chad basins. These timely activi- ized that refined the Catalytic Sub-Program’s structure, ties are expected to be under implementation in FY15 content, and implementation mechanisms to be more and will help inform riparian decision making on water clearly aligned with its planned goals and expected resources development and management. outcomes. The Sub-Program was approved by the World This section includes a description of the demand Bank in December 2014 in a review meeting chaired by for CIWA engagement; a summary of the Catalytic Sub- the World Bank Africa Region Chief Economist, where Program structure and the type of stakeholder needs reviewers acknowledged the need for deeper analyti- addressed (Figure 6); a description of how each project cal support for strategic issues involving transboundary supports the program’s four strategic pillars (Table 2); 28 CIWA ANNUAL REPORT 2014 and criteria for selection of activities under the Catalytic providing related knowledge products and analytical Sub-Program’s two windows (Table 3). The section also studies which demonstrate the benefits derived from provides a summary of the Sub-Program’s dissemina- cooperation. tion and outreach strategy, and updated overviews of • Experience with other similar programs supporting implementation and continued progress of the ongoing cooperation in international waters has clearly activities in the Catalytic Sub-Program. underlined the importance of catalytic/analytic activities. • The Africa Infrastructure Country Diagnostic, carried Catalytic Sub-Program Objective out by the World Bank and other partners, has high- lighted the lack of, and the pressing need for, a bank- The objective of the Catalytic Sub-Program is to able pipeline of water-related investments. Analytical strengthen the knowledge and analytical foundation for reports confirm the importance of knowledge cooperative management and development of inter- services, technical assistance, training, and strategic national waters in Sub-Saharan Africa to help achieve investment support as foundational elements for sustainable climate resilient growth. The Catalytic identifying transformational investments. Sub-Program is directly aligned with CIWA’s four results areas (described in Section 1, Program at a Glance). The • Discussions with several countries have noted the Sub-Program contributes to the CIWA PDO by: importance of convincing their Ministries of Finance why work on transboundary basins is essential for • Generating, sharing, and managing knowledge that economic growth and poverty alleviation. can facilitate cooperative development and manage- ment of international waters; • Exploring potential high-impact collaborative invest- ment opportunities in defined basins and regions; Catalytic Sub-Program Structure and The Catalytic Sub-Program is motivated by two impor- • Creating shared understanding among stakeholders tant lessons about cooperation learned in international of the opportunities, risks, costs, and benefits of waters: first, that building cooperation is a long-term cooperative development and management of inter- process that can accelerate or lapse around specific national waters. issues, requiring progress to be both systematic and opportunistic; and second, that analytical work on economic, social, environmental, and political issues can help unlock the potential for cooperation and optimize Demand for a Catalytic Sub-Program regional investments. Along with long-term, sustained In Sub-Saharan Africa, cooperation over transbound- support for cooperative institutional building, CIWA ary waters is hindered by gaps in technical knowledge, recognizes that short-term, event-driven opportunistic shortcomings in institutions and policies, knowledge windows periodically open up that have the potential to gaps regarding economic opportunities, socio-political advance cooperative efforts. These short-term opportu- difficulties and insufficient capacity, all of which are nities might arise in the form of analytical support for subjects of consideration of the CIWA Catalytic Sub- specific investments prioritized by riparians or in the Program. Effective demand for technical capacity build- form of knowledge management and capacity build- ing, knowledge-sharing services on cross cutting issues, ing activities. CIWA maintains the flexibility to respond better understanding of opportunities for high-impact to these short-term strategic opportunities through its collaboration, and strategic investment support is wide- Catalytic Sub-Program. spread. The evidence of this demand includes: Support for activities under the Catalytic Sub- • Consultative meetings involving regional organiza- Program is provided through two windows that distin- tions, national governments, development partners, guish the type of need addressed: World Bank teams, and CIWA have underscored 1. Opportunistic window; and the need for making data and information more accessible in the public domain, and for increasing 2. Knowledge Management and Capacity-Building capacity building and technical assistance, as well as window. SECTION 3: THE CATALYTIC SUB-PROGRAM 29 FIGURE 6. Catalytic activities are delivered through the Knowledge Management & Capacity Building window and the Opportunistic window. Provides useful methodologies, tools, best practice, and capacity building for opportunistic interventions Knowledge Management & Opportunistic Window Capacity Building Window Provides experiences and lessons useful for wider sharing through KM efforts SECTION 3: THE CATALYTIC SUB-PROGRAM Scope: Discrete activities that generate, share, Scope: Short-term engagements that respond and manage knowledge that can facilitate to high-priority, high-stake issues and explore cooperative management and development of collaborative, potential high-impact investment international waters opportunities with regional benefits Geographic coverage: Multiple basins, regions, Geographic coverage: Basins and regions continent-wide or other relevant scope and across Africa identified and selected against scale, depending on the nature of activity pre-agreed criteria Types of Activities: Analytical work on Types of Activities: Strategic analyses; cross-cutting issues; synthesis and adaptation techincal assistance; dialogue facilitation of information for use in different contexts; generation and dissemination of knowledge and tools; capacity building Planned Activities: • Okavango Multi-Sector Investment Opportunity Analysis (MSIOA) Planned Activities: • Supporting Coordination in WRM and • Strategic overview of international waters in WRD in West Africa through ECOWAS Africa • Lake Chad/Sahel • Overview of institutions for International Waters • Socioeconomic rationale for cooperation • Political economy of cooperation • Africa-wide hydroment services • Improved access to capactiy building and knowledge exchange • Improving public access to basin data Under both windows, activities are largely analytic window responds to demands for exploring collabora- in nature and aim to generate requisite knowledge, infor- tive investment opportunities, and involves discrete mation and data, and to focus on cross-cutting issues interventions in specific basins other than the initial with significant economies of scale. priority basins CIWA has already selected. Activities The two windows are different in scope and in the Knowledge Management and Capacity Building coverage, as shown in Figure 6. The Opportunistic window are designed to be responsive to demands for 30 CIWA ANNUAL REPORT 2014 TABLE 2. Strategic pillars of the Catalytic Sub-Program Strategic Pillar Gaps Addressed Activity Focus Ongoing Activities Pillar I. Analytical Stakeholders involved in Examining key thematic issues I-1. Strategic Overview of Work for cooperation in transboundary such as: socioeconomic benefits International Waters in Africa Catalyzing waters have underscored the need from cooperation; innovative I-2. Overview of Institutional Cooperation for support on strategic analytical financing models for transboundary Arrangements for International studies. For example, strategic institutions; agriculture, water and Waters analytical work that can explain energy nexus; benefit sharing. I-3. Economic Rationale for the benefits of transboundary Responding to needs for catalyzing Cooperation in Transboundary information, institutions, and cooperation identified in multiple Basins in Africa infrastructure investments in basins. I-4. Political Economy of tangible economic terms can be Cooperation instrumental in mobilizing support from Ministers of Finance. Pillar II. Exploring In the absence of a bankable Identifying and helping advance II-1. Okavango MSIOA Collaborative pipeline of water-related collaborative investment II-2. Supporting Coordination Investment investments at multiple scales, opportunities in basins or regions in Water Resources Opportunities there is a need to identify and where CIWA does not provide Management and provide support on identifying sustained support. Development in West Africa and preparing transformational II-3. Promoting Regional investments and to support key Cooperation in the Lake Chad institutions that need to engage in Basin or facilitate cooperative activities. Pillar III. Amidst the uncertainty of climate Identifying improvements in III-1. Facilitating Africa Wide Information change-induced impacts, there is a hydromet services to help improve Hydromet Services Services need to improve the understanding climate resilience. for Climate of ways to effectively mainstream Resilience climate change considerations into transboundary water cooperation, management and development. There also is the need for support to adapt existing principles, procedures, and institutions for managing shared water resources in a manner that enhances their ability to respond to the potential climate change impacts. Pillar IV. Capacity There is an urgent need for Drawing upon experiences and IV-1. Improved Access Building and capacity building, training, and lessons from CIWA’s sustained to Capacity Building and Knowledge knowledge in critical areas of engagements to develop guidance Knowledge Exchange Management transboundary WRM. This includes material, document best practices, IV-2. Improving Public Access a strong focus on assisting with and build capacity in a sustained to Basin Data the design and implementation of manner. transformative water investments, Developing innovative information South-South learning opportunities, tools (for example online portals, and strengthening knowledge mobile Apps, knowledge products) partnerships with research institutes for improving public access to and data providers, and civil climate variability, climate change, societies. and related water resources and sectoral data and tools. Filling the capacity and knowledge gap among select riparian countries, RBOs and relevant regional organizations in a cost-effective way. Enhancing public access to information. knowledge activities and capacity building on themes will not be limited to any one basin. The two windows that are important for unlocking transboundary coop- are complementary in that the outputs from activities in eration. Activities supported through this window draw one window provide useful information for activities in on experiences and lessons from multiple basins across the other. Africa and around the world. The utility of the outputs SECTION 3: THE CATALYTIC SUB-PROGRAM 31 TABLE 3. Criteria for selection of activities under the Catalytic Sub-Program’s two windows Opportunistic Window Knowledge Management & Capacity Building Window   Demand for the activity   Alignment with CIWA PDO and four IR areas   Alignment with one or more strategic pillars of the Catalytic Sub-Program   Implementation and financial feasibility Capacity of main implementing entity Budget appropriate to activity scope Funding levels consistent with CIWA Leveraging of additional financial resources   Implementation schedule consistent with CIWA’s operating timeframe   Value added   Value added Contribution to value creation and economic development Addition of necessary knowledge and capacity to RBOs and in basin or region of application other stakeholders Evident linkage and leveraging of World Bank or other development partner activities in the basin or region   Technical robustness   Technical robustness Use of a suitable approach Clear potential to advance knowledge on priority topics SECTION 3: THE CATALYTIC SUB-PROGRAM Feasibility, significance, and results sustainability (including Wide relevance and importance of topics covered to potential follow-on activities) multiple basins, RBOs, RECs Potential for influencing regional policy dialogue on Tangible output with clear outcomes transboundary water cooperation   Clear and innovative dissemination plan that effectively targets key audiences Activities included under the Catalytic Sub-Program Ongoing Activities in the Catalytic are categorized under one of four strategic pillars. The strategic pillars highlight how CIWA adds value while Sub-Program addressing gaps in the process of facilitating cooperative PILLAR 1. ANALYTICAL WORK FOR action. CATALYZING COOPERATION Activity I-1. Strategic Overview of International Waters Catalytic Activity Selection Criteria Activity Objective: To provide a strategic overview The range of possible engagement for CIWA on oppor- of international waters in Africa that can guide the tunistic and knowledge management activities is broad. engagement of donors in the region. One of the primary In order to use CIWA’s resources strategically, CIWA applications of such an overview is to reveal needs, selects discrete activities that are in agreement with the opportunities, challenges, constraints and tradeoffs selection criteria of either of its two windows, listed that collectively define the hydro-political landscape of in Table 3. CIWA’s interventions are based on these Africa’s international waters, thereby informing prioriti- selection criteria are also informed by extensive consul- zation and shaping of CIWA’s engagements. This study tation with key stakeholders, including the CIWA AC, will be equally relevant to assist in strategic decision- the CIWA’s CG, other development partners, the World making by other development partners looking to sup- Bank, non-government organizations (NGO), academ- port the region. ics, and others. It is important to note that the Catalytic Sub-Program will expend up to 10 percent of the total Strategic Context: Africa’s water resources underscore available CIWA resources. the opportunities and challenges for sustained growth and transformation. Demand for food is expected to dou- ble by 2040. Over the same period the increased demand for energy is predicted to grow four-fold. The popula- tion is expected to double and is becoming increasingly prosperous, thereby increasing demand for food, water, 32 CIWA ANNUAL REPORT 2014 and energy. The transboundary nature of Sub-Saharan Strategic Context: The contemporary delineation of Africa’s abundant waters calls for cooperative manage- Africa’s political boundaries that was created at the end ment and development in order to harness its productive of the 19th century, and the existence of varying legal potential in a way that increases regional benefits and regimes, have increased the complexities associated with shares them in an equitable manner, and accomplishes economic growth and development and accentuated both of these goals in an environmentally sustainable water-related insecurity. To deal with these challenges, fashion. Development interventions need to take into a robust, enforceable legal and institutional framework account needs, opportunities, challenges, constraints, is needed to ensure equity in the allocation of resources and tradeoffs from regional as well as national points of and the optimization of development opportunities. view. The water resources knowledge base does not cur- Water resources institutions are created to provide for rently include a comprehensive compilation of indicators the control and use of water as it passes through its nat- describing the continent’s transboundary surface waters, ural system. The form and character of the institutions, including the demographic, socio-economic, political, both nationally and internationally, create a framework and biophysical aspects of transboundary basins, in a that determines the manner in which political and eco- way that provides sufficient context about those areas nomic factors relate to water resources. Understanding of uncertainty that collectively affect the challenges the principles and the mechanisms employed in the and opportunities inherent in cooperative investment. creation and formalization of water resources institutions This study aims to address that gap and form a baseline across Africa will provide insights useful for current and reference for a better understanding of the needs and future water management and contribute to regional opportunities in international waters and the basins. efforts to increase cooperation. There is currently no comprehensive compilation Collaboration Partners: African Network of Basin of water laws, policy instruments and international Organizations (ANBO), Global Water Partnership (GWP) agreements on water in Africa to facilitate comparative analysis. This activity will fill this critical gap and will Key Expected Results: construct the first ever compilation of a single resource • A report outlining a baseline reference of Africa’s of national and transboundary legal and policy instru- international waters and an analysis of a wide range ments relating to water issues in Africa. of indicators and factors that describe the socioeco- nomic, geopolitical, and biophysical context of inter- Key Expected Results: national waters and their contribution to economic • A report presenting a comparative analysis of the development across Africa. form, functions, scopes of authority, and funding • A publicly available database of indicators consisting mechanisms of international river basins across of the findings of this work. Africa along, with an assessment of the current state of their financial independence, sustainability, and Activity Update: This activity has been under imple- autonomy. mentation since FY12. Findings and analysis are pre- sented in a draft report prepared in FY14 and are in the Activity Update: This activity has been under imple- process of being finalized. mentation since FY12. Findings and analysis are pre- sented in a draft report prepared in FY14 and are in the Activity I-2. Overview of Institutions in International process of being finalized. Waters Activity I-3. Economic Rationale for Cooperation in Activity Objective: To provide an in-depth apprecia- Transboundary Basins in Africa tion of the principles and mechanisms employed in the creation and formalization of water resources institutions Activity Objective: To solidify the evidence base on the engaged in fostering cooperation in international waters link between cooperation in transboundary basins and across Africa, with the expectation of providing a sound equitable growth in Africa. basis upon which current and future institutions can be supported as they respond to key national and interna- Strategic Context: There is evidence that the challenges tional policy objectives. associated with international waters have resulted in significant sub-optimal investments where unilateral choices have been made in favor of cooperative solutions SECTION 3: THE CATALYTIC SUB-PROGRAM 33 in order to avoid the complexities of engaging with ripar- perceived risks to a country’s interests in the basin, the ian neighbors. It is also evident that major development impact of decisions by important or conflicting drivers activities have often been delayed for decades or forgone within a single state, and opportunities for indirect bene- entirely. This is assumed to have had a huge impact on fits from increased cooperation. Efforts to improve coop- economic growth and resulted in significant social and erative water resources management and development environmental costs. However, this impact and its cost to in transboundary basins in Africa have been ongoing Africa has not been adequately quantified and is largely for decades with varying levels of results. These results still unrecognized as a binding constraint on the ability include: establishment of institutional platforms for to unleash Africa’s economic potential, address poverty cooperation; signing of basin-wide agreements; strength- reduction and foster peace. ening of RBOs; and cooperation among a subset of basin This activity aims to increase the evidence base countries towards common development projects or on the broad relationship between cooperative water shared regional interests. Support by development part- resources development and management and basin-wide ners has been a key element in these processes. While economic growth, poverty reduction, and shared pros- one basin may benefit from limited but catalytic support perity. The analysis will focus on how cooperation in that spurs long-term cooperative measures, consistent transboundary basins have and can enhance productiv- support in another basin may result in evolving own- ity in different water-related sectors. In so doing, it will ership by basin riparians of the institutions set up to SECTION 3: THE CATALYTIC SUB-PROGRAM focus on the current contribution of water to economic manage the water resources. Political economy analysis, growth and poverty reduction at a transboundary level therefore, becomes critical where and when governance along with the potential benefits of climate-resilient and political economy factors appear to prevent progress water investments for economic growth, or alternatively that is otherwise considered possible from a technical viewed, the ‘’costs of inaction.’’ perspective. As such, the importance of understanding the cooperative challenges and goals, and the political Key Expected Results: economy dimensions, in transboundary basins is critical • A comprehensive literature review of past and ongo- for reducing the risk profile of investment projects and ing empirical studies on the economic rationale for identifying the existing and/or feasible opportunities for transboundary water resources cooperation in order advancing cooperation. to construct an evidence-based argument supporting This activity takes a two-pronged approach to cooperative action among riparians. enabling CIWA, and other entities looking to provide effective development interventions in the transboundary Activity Update: This activity began implementation in water context, to incorporate political economy consider- FY14 and consists of a broad literature review. A draft ations in their strategic decision making. outcome document of the literature review is expected in The first component involves designing an analytical FY15. framework that prescribes a method for systematically conducting a PEA for a general transboundary basin, Activity I-4. Political Economy of Cooperation followed by the application of this framework to a set Activity Objective: To formulate a method of analysis of selected basins. The PEA framework will build on for understanding the political economy drivers and con- approaches that have been developed and refined in straints that influence cooperation within CIWA’s four recent years, and will take into consideration important results areas, and to develop scenarios that can inform changes in regional contexts, such as; the arrival of overall strategic thinking and decisions related to CIWA new financing and development options for large-scale engagements in different international waters contexts in infrastructure; increases in the challenges of resource Africa. Secondarily, to develop comprehensive political governance resulting from increased demand for water, economy analyses of selected cases of transboundary land, and other natural resources in the wake of eco- basins in Africa. nomic and population growth in Africa; and increases in ‘foreign direct investment’ in Africa. Compounding Strategic Context: Decisions related to cooperative these challenges are the more uncertain changes and water resources management and development, in risks associated with climate change. While CIWA will addition to being based on consideration of traditional actively use the framework thus developed to improve economic factors and physical constraints, are highly the effectiveness of engagements and activities it influenced by political considerations, such as the initiates in the future, the case studies will be hugely 34 CIWA ANNUAL REPORT 2014 informative in shaping activities in focus areas of the Activity Update: Implementation of this activity com- case studies—Lake Chad basin, Niger basin, and the menced in FY14. SIWI was commissioned to design the NEL region—which are currently under preparation or PEA framework and undertake case studies for select implementation. basins. SIWI prepared an inception report for the exer- The second component involves the application of cise, which includes a proposed methodology for devel- the rapidly changing landscape of development assis- oping the framework and a plan of action for conducting tance in Africa, with emerging economies taking on an the case studies. Informed by a round of consultations increasing role in providing support for water resources with African water-sector stakeholders present at the infrastructure. With fewer conditions for financing fifth Africa Water Week in Dakar in May 2014, along related to technical, environmental, and social aspects with a round of feedback from the CIWA AC, SIWI is of projects, as compared to conventional lenders like currently engaged in analytical design of the framework, the multilateral banks, emerging economies are able to and has made field visits to develop case studies in prep- advance implementation of projects with much shorter aration of a first draft of the PEA framework expected in lead times. In fact, when all tradeoffs are considered, the fall of FY15, with the final framework expected to be the emerging economies have become for many coun- completed in the spring of FY15. tries the preferred source of financing. However, while The second exercise under this activity, which relates offering advantages of speedier implementation, such to the political economy of financing from emerging projects run the risk of having activities commenced economies for transboundary water projects in Africa, without notification to or consideration of existing and is under progress by a team of experts with decades of future uses by other riparians, transparent data shar- water resources governance, management, and develop- ing, or agreements on infrastructure operating rules, ment experience in China, Brazil, and Africa. A report among others. This can lead to sub-optimal design and that will be used to inform CIWA’s strategy is expected operation on the one hand and escalation of conflict in FY15. on the other. This component aims to understand the political economy of this new financing landscape and PILLAR II. EXPLORING COLLABORATIVE its implications for the World Bank and other develop- INVESTMENT OPPORTUNITIES ment partners, while exploring if and how CIWA could Activity II-1. Okavango Multi-Sectoral Investment contribute to implementing these transboundary projects Opportunity Analysis (MSIOA) with improved technical strength, greater social equity, more environmental sustainability and higher political Activity Objective: To conduct an overall assessment of acceptability. development needs and options for riparian countries and to address them in such a manner as to safeguard Collaboration Partners: SIWI, international experts on the ecological status of the basin, particularly the development in Africa Okavango delta, a biodiversity-rich wetland ecosystem with significant social, economic, and ecological values. Key Expected Results: • A framework consisting of a general set of guidelines Strategic Context: Despite the fact that all three ripar- to conduct a PEA in any given transboundary ians of the Okavango basin—Angola, Namibia, and basin that can inform and thus improve the design Botswana—are middle income countries, economic and implementation effectiveness of development productivity in the basin is driven by centralized interventions promoting growth-centered cooperative extractive industries, and the population of the basin water resources management and development. is poor and relies heavily on local subsistence agricul- • Detailed political economy analyses of the Lake ture. Downstream Botswana relies on ecotourism in Chad basin, the Niger basin, and the NEL region the Okavango basin for a significant contribution to its obtained from application of the above constructed GDP. Proposed water development projects in the three framework. riparian countries may impact the river as a whole, and the delta in particular, due to it being very sensitive to • A report on the role of emerging economies in water fluctuations of inflow, resulting in significant implica- resources infrastructure development and manage- tions related to the delta’s ecology and the livelihoods of ment in Africa and implications for a sustainable the poor populations in the basin. The MSIOA will seek path forward. to better understand and present options for finding a SECTION 3: THE CATALYTIC SUB-PROGRAM 35 SECTION 3: THE CATALYTIC SUB-PROGRAM balance between the pressures to boost economic growth • Analysis and inclusion of multi-basin options includ- through water-dependent sectors such as energy and ing regional energy and food security plans and agriculture, on the one hand, and by meeting environ- alternatives. mental and developmental needs of the poorer commu- • Assessment of incremental costs of options to offset nities residing within the basin, on the other. Okavango Delta impacts and an analysis of offset The MSIOA will build upon the Transboundary financing options. Diagnostic Analysis and the Cubango-Okavango basin • Development of suitable hydrological and economic Strategic Action Plan. It will consist of: an analysis of modeling tools through which to develop and assess legal and institutional frameworks related to WRD in the options. region and riparian countries; analysis of regional energy • Review of potential finance packaging options. and food security plans and alternatives; assessment • National workshops to verify information and dis- of incremental costs of options to offset the Okavango cuss options and scenarios. Delta impacts; development of suitable hydrological and economic modeling tools through which to develop and • Hosting by OKACOM Secretariat of a regional work- assess options; review of potential financing options; shop to review results. support for national and regional workshops to discuss • Training of suitable national and regional officials in development scenarios and review MSIOA results; and the use of developed models and tools. training of national and regional officials in the use of • Preparation of outputs and reports consolidating the developed models and tools. outputs outlined above. Collaboration Partner: The Permanent Okavango River Activity Update: The World Bank is working in close Basin Water Commission (OKACOM) partnership with OKACOM to engage a suitable consult- ing firm to conduct the various tasks under this activity. Key Expected Results: Full implementation is expected in FY15. • Review and collation of existing information and data gathered for the Transboundary Diagnostic Activity II-2. Supporting Coordination in Water Analysis, Basin Strategic Action Program, National Resources Management and Development in West Action Plans, country information on planned water Africa source augmentation and so forth. Activity Objective: To strengthen the ability of ECOWAS • Analysis of various existing national and regional to catalyze transboundary water resources management water development proposals, including the Strategic and development in support of food and energy security Action Program. and of climate-resilient growth in West Africa. 36 CIWA ANNUAL REPORT 2014 Strategic Context: The West Africa region has been Collaborating Partners: ECOWAS WRCC, NBA, VBA, experiencing a high rate of positive economic growth in Mono River Basin Authority and Senegal River Basin the past few years (ranging between 5-8 percent growth) Development Authority (OMVS). and the trend is projected to remain positive in the near future despite uncertainty and challenges faced in the Key Expected Results: region. This poses the risk of straining finite resources • An evaluation of transboundary RBOs in West Africa. in the region such as land and water, which will in turn • Capacity building activities for select RBOs. affect the path of economic growth. However, the region • Documentation of Guinea’s strategic importance to has abundant water, being endowed with almost half of water resources in the region. the continent’s hydrological resources, including 25 out of 60 transboundary rivers and lake basins. These twenty • Analysis of the pivotal role of transboundary five transboundary basins account for 80 percent of all resources management for growth in the ECOWAS surface waters, making countries in the region highly region. interdependent, with many countries highly dependent • Dissemination of the ECOWAS Directive on Shared on water originating in other nations. With the excep- Water Infrastructure and harmonization with tion of Cape Verde, each country in the region shares at national policies. least one international river, and some countries (such as Niger and Mauritania) receive as much as 90 percent Activity Update: Implementation is expected to begin of their total share of renewable water resources from early in FY15. outside its borders. There are also several transboundary aquifers across the region. In many parts of sub-Saharan Activity II-3. Promoting Regional Cooperation in the countries, groundwater is the major source of drinking Lake Chad Basin water, accounting for up to 80 percent of drinking water Activity Objective: To strengthen national and regional consumption in many countries. Therefore, the need for impetus for cooperation in the Lake Chad basin through regional processes on IWRM, and transboundary coop- an exploration of political and institutional feasibility, eration will be key factors in the ability of individual assessment of the socio-economic potential for coopera- countries to achieve sustainable growth. tive management and development of the Lake Chad Awareness of these issues in West Africa has spurred basin, and provision of tools and technical knowledge efforts by the countries of the region to galvanize sup- to support decision making processes and facilitate port at the highest political level for a collaborative and cooperative action.- IWRM approach to water governance, and has also resulted in an increased focus on consolidating efforts Strategic Context: The region of Lake Chad basin, through regional initiatives in developing policy, institu- similar to the entire Sahel region, faces a series of tional support and guidelines that will foster better man- challenges as a vast, arid and scarcely populated area, agement and investment opportunities in shared basins. with high population growth. The livelihood of nearly At the regional level, these efforts are being spearheaded 20 million people depends on economic activities carried by the ECOWAS’s WRCC, which has set up policy and out in the basin, which is a hydrologically-active basin organizational structures and support to advance these of about 1 million km2, which also includes important principles. ECOWAS can facilitate, coordinate, and cata- wetlands and floodplains. The region experiences cli- lyze investments and build capacity on institutional and matic variability and is extremely vulnerable to climate regional policies (such as the ECOWAS gender strategy), change. Both factors have a negative impact on human and can also ensure that infrastructure investments in development, but they are not very well understood. The transboundary waters contribute to optimizing regional gradual reduction in the size of the Lake1, reduction of development objectives. Through this partnership fish stocks and desert encroachment in the basin have with ECOWAS, CIWA will be working to support goals greatly reduced and disrupted agricultural, pastoral and of strengthening institutions, knowledge sharing and fishing activities, which has in turn contributed to a loss capacity building for water resources management and and reduction in biodiversity and poor conditions for development, as well as stakeholder engagement and navigation inside the Lake and its tributaries. Addressing facilitative support in the region. 1 Approximately 2,500 km2 compared to 25,000 km2 in the early 1970s. SECTION 3: THE CATALYTIC SUB-PROGRAM 37 these concerns requires stronger cooperation and optimi- various knowledge products and technical tools zation of the scarce basin resources. produced. The riparian countries of Lake Chad developed, through the Lake Chad Basin Commission (LCBC), the Activity Update: This activity is currently under prepa- necessary legal framework for cooperation by adopt- ration in close coordination with LCBC and taking into ing in April 2012 the Lake Chad Water Charter, and the account priorities of regional and national stakeholders countries are now moving toward creating the neces- in the Lake Chad basin. sary mechanisms for sustainable and integrated water resource management in the basin, including transbound- PILLAR III. INFORMATION SERVICES FOR ary aquifers. The planned activity is intended to facilitate CLIMATE RESILIENCE this process and is directly aligned with the 2025 vision of LCBC, which outlines a path: to create favorable condi- Activity III-1. Facilitating Africa-Wide Hydromet tions for the preservation of Lake Chad; to ensure the Services economic security of the people who rely on its eco- Activity Objective: To identify and plan for a signifi- system; to conserve its biodiversity; and to improve the cant investment on the information, institutions, and sustainability of WRD in order to help protect the right to infrastructure related to hydromet services for improving the usage of water and other resources by the people liv- productivity and adapting to climate risks in Africa’s SECTION 3: THE CATALYTIC SUB-PROGRAM ing in the basin. The proposed activity sets the scene for international basins. a long-term, sustained engagement with LCBC and the basin riparian countries through regional and national Strategic Context: Africa is highly vulnerable to climate consultations, improved knowledge, strengthened variability and only has limited capacity to cope with capacity and analytical studies leading to developmental natural disasters. Climate change threatens to exacer- actions and concrete investments on the ground. bate this further in all its key river and lake basins. It is essential to improve weather forecasting in Africa to help Collaboration Partners: Lake Chad Basin Commission its population better manage its water and agriculture (LCBC) related infrastructure and investments. More specifically, a critical need for improved climate resilience is having Key Expected Results: in place a well-functioning hydro-meteorological moni- • Regional and in-country policy dialogue aiming to toring and forecasting system. Current hydromet systems support the ratification of the basin’s Water Charter. are woefully inadequate and consist of traditional man- • The formulation of a water balance model and a ual systems and some ad hoc and poorly planned auto- time series mapping of the water in the Lake Chad mated systems. Little real-time ground-based hydromet basin, executed in cooperation with the hydrology information is shared among riparian countries in these and natural resources teams at NASA Goddard Space river basins and the availability of such information in Flight Center. the public domain is extremely poor. There is also little • A mapping of donor activities in the Lake Chad basin focus on provision of hydromet services based on this that informs an institutional analysis exploring the equipment. There is a need to help gradually fill criti- challenges and opportunities for regional cooperation cal missing gaps in the accessible and inter-operable in the basin hydromet networks at the regional level, to facilitate the inclusion of regional and national hydromet services in • An assessment of the economic potential of Lake conceptualizing such shared systems, to improve incen- Chad. tives and systems for improved public access to the data, • In-country policy and technical dialogues to initi- to improve integration of increasingly powerful earth ate the update and prioritization of the Five Year observation products, and to improve the capacity for Investment Plan and the National Action Plans. forecasting and last-mile connectivity. • Preliminary technical studies to confirm the feasibil- This activity consists of preparation of a program ity of proposed actions, for example: improving the of phased Africa Hydromet Services to modernize the hydraulicity of Lake Chad and the Chari-Logone hydromet services by gradually filling in missing links River; identifying water pollution control measures in the use of global and regional information in national for the lake; and conducting capacity-building programs among critical transboundary river and lake activities to increase ownership and usability of basins across Africa. 38 CIWA ANNUAL REPORT 2014 Collaborating Partners: This activity involves exploring information/analysis, institution/policy, and investment collaboration with global data providers involved with needs and will consider use of new mechanisms, such as hydromet services (for example WMO, NASA, ESA, IRI, payment for results. UN, private sector, and so forth) as well as with regional organizations (starting with transboundary water orga- nizations such as in the Nile and Senegal basins, and PILLAR IV. CAPACITY BUILDING AND various regional climate centers) and associated national KNOWLEDGE MANAGEMENT organizations within Africa. Activity IV-1. Improved Access to Capacity Building and Knowledge Exchange Key Expected Results: • An analytical scoping assessment that takes account Activity Objective: To promote innovative approaches of the current status of ongoing and proposed pro- to improving capacity building and knowledge exchange grams; explores good global practice on information, on critical demand-driven areas of interest, such as institutions, and investments; evaluates options for improved basin planning and management, analytical the Africa region for investment phasing, packaging tools, legal and policy instruments, holistic “bankable” and implementation; and evaluates potential costs investment preparation, public-private partnerships, and benefits. climate risk management, and so forth. • Evaluation of technical robustness, institutional Strategic Context: The effective development and arrangements, and implementation and financial management of water resources requires a paradigm feasibility for a roll-out of a phased investment shift in the way capacity is built in Africa’s regional and program; design of incentives for sharing and public national institutions. There is a significant lack of insti- provision of hydromet data; and adoption of plans to tutional capacity across the continent when attempting facilitate financing. to modernize the way transboundary water resources are • Technical assistance provided to transboundary perceived, analyzed, developed, managed, and moni- basin organizations, including targeted training and tored. There are also several modern tools (for example professional networking to facilitate interactions improving access to internet and video-conferencing) among regional institutions and related national whose potential has not been systematically leveraged stakeholders to develop a shared vision on the use to provide African institutions with improved access to of hydromet systems, and better design, deployment, regional and global good practices. The proposed CIWA analysis, customization, and use of hydro-meteoro- activity aims to address this gap between need and avail- logical services. ability of capacity-building and knowledge-exchange resources by drawing upon the Bank’s global expertise Activity Update: This project has initiated activi- and partnerships to help regional counterparts learn ties that are compatible with the Public Data Access from one another and access global expertise. activities expected to begin full-scale implementation in FY15. Progress to date includes completion of a rapid Collaborating Partners: The team has been in discus- institutional review of regional organizations, including sion with NASA and the United States Army Corps of climate centers and basin organizations, in conjunction Engineers (UNESCO-IHE Center), and several others to with work on Public Data Access activity. An analytical outline training topics on water-related issues, including effort which explored the use of statistical techniques some that are planned to be introduced using distance- (as used by the National Weather Service in the United learning techniques beginning in FY15. These topics States) for seasonal hydrologic forecasting (currently include: enhanced use of earth observation data prod- absent in Africa) was completed and pilot tested in the ucts; use of simple analytical tools for water resources Blue Nile basin with very encouraging results. A more planning and management; use of modern water detailed review of the existing status of ongoing and resources observation systems and open data platforms; proposed programs in each Basin, including describing forecasting techniques; aquatic weed management in how the programs utilize and build on previous work, is large transboundary lakes; dam safety; payment for eco- to be completed in FY15. In addition, a regional pro- system services; climate risk management, and integrat- gram concept is being developed for a phased invest- ing gender into transboundary water resources planning ment program. It will include an outline of associated and management. SECTION 3: THE CATALYTIC SUB-PROGRAM 39 Key Expected Results: Collaborating Partners: UN agencies, NASA, NOAA, • Training, including distance learning events, work- CIESIN, IRI shops, webinars, and so forth. Key Expected Results: • Internship/young professional programs. • A suite of knowledge products—interactive web por- • Improved professional networking and connectivity tal, innovative mobile apps, web-based atlases, and with other regional and global counterparts and so forth—that integrate a number of existing spatial experts. datasets (on historical climates, climate change, • Improved documentation of training and guidance disasters, water resources, social and economic indi- material, and good practices cators, environmental and natural resources manage- • Online resources support. ment, infrastructure, and so forth) that provide a general overview of any transboundary basin as well Activity Update: This project is expected to begin full as listing specific resources that would be of interest implementation in FY15. Thus far, with the support of to anyone examining water resources management the Public Access to Basin Data initiative, the activity issues. has focused on providing a rapid analysis of the needs • Support for select regional institutions in Africa to and interests of global, regional, bilateral, and other adopt such portals, apps, and atlases as part of their SECTION 3: THE CATALYTIC SUB-PROGRAM institutions involved in regional capacity-building activi- online services. ties in Africa related to transboundary waters, as well as • A Primer to document sources, advantages, limita- identifying tools useful for improving data sharing. tions, and potential uses of public domain global and local datasets. Activity IV-2. Improving Public Access to Basin Data • Strengthened partnerships among public-domain Activity Objective: To develop a range of knowledge knowledge providers and potential institutional users products to improve public access to information on working on development issues. transboundary basins in Africa. • Application development by the general public in the Strategic Context: A critical obstacle to improved water form of “Hackathon” competitions, resources management in a transboundary context Activity Update: The activity is under implementation in Africa is the poor availability of even basic water and various knowledge products have been released resources information in the public domain. Today, mod- (Spatial Agent app) or are under development (web ern spatial databases and tools can help organize and portal, web-based atlases, integration with CIWA web visualize a wide variety of useful spatial and other infor- portal). A version of the “Spatial Agent” app, which mation in an informative, interactive setting. However, demonstrates an innovative way to visualize key multi- there is a lack of well-designed and easily accessible sectoral public domain data from 300 data sources, online applications to access such data on international is now available (For more information see below— basins in Africa, and it is becoming increasingly critical Highlight: Spatial Agent). Efforts to expand the reach to make publicly accessible a rapidly-growing, compre- of this work include increasing support for riparian and hensive knowledge base, including categories and topics basin-driven efforts to provide better access to public such as: water resources; energy; agriculture; climate information through technical support. For example, variability and climate change; environmental, eco- technical support facilitated NBI’s development of an nomic, social, demographic, and administrative indica- NBI app and an NBI Flood app along with support for tors; water infrastructure; and opportunities and risks. the Web Portal. The first “Appathon” competition will This activity aims to bridge the challenges on the one take place in FY15 in association with CIWA’s Capacity hand of poor availability of critical spatial and temporal Building activity. A primer on key public-domain data data in the developing world with on the other hand the sets is under development. abundance of new high-quality datasets available from a number of institutions such as different UN agencies, NASA, NOAA, CIESIN, IRI, and the World Bank on the other, to facilitate formulation of solutions to critical water-related problems. 40 CIWA ANNUAL REPORT 2014 HIGHLIGHTED FOCUS S PAT I A L A G E N T: B R I N G I N G T H E W O R L D ’ S D ATA T O YOUR FINGERTIPS The “Spatial Agent” mobile app is an innovative way datasets through a single window, enabling the user to help water, energy, agriculture and other deci- to find answers to an endless list of development- sion makers visualize thousands of key multi-sectoral related questions. For example, those working on public domain spatial and temporal datasets from solutions for shared water use in the Lake Victoria over 300 data sources. Now publicly available, Spatial Basin can find out how water levels have changed Agent provides users with a general overview of the over the past decade, what the estimated rain levels economic, social, environmental, and climate aspects were over various time periods, including hours, days of any transboundary basin, in addition to a range and months, and how climate change is expected to of indicators specifically related to water resources change rainfall patterns over the coming decades. management. By facilitating data sharing in the public domain, Many high-quality datasets, ranging from earth Spatial Agent strengthens partnerships among pub- observation systems that can systematically collate lic-domain knowledge providers, boosts long-term and analyze national data, to hundreds of different knowledge cooperation, and leverages the compara- climate models that can generate future climate tive advantages of various institutions to support scenarios are available from institutions such as the water and energy planning in Sub-Saharan Africa. United Nations agencies, the NASA, the World Bank, The app is currently accessible on iPhone and and basin organizations, such as the NBI. At the iPad, and is under development for Android and same time, solutions to development challenges that PC platforms. CIWA’s support for this app lever- exist across the globe related to agriculture, energy, ages funding from the World Bank, the World water supply, sanitation, and climate risks are ham- Bank-Netherlands Partnership Program, the Trust pered by the poor availability of information that can Fund for Environmentally and Socially Sustainable support water and climate-related decision making. Development, and the Central Asia Energy-Water Spatial Agent directly addresses this data acces- Development Program. sibility gap and provides anyone who has access to Users can find answers to a variety of ques- a computer with a range of these publicly available tions such as those below: Which areas in Africa experienced rainfall in the last 3 hours? 24 hours? 3 days? SECTION 3: THE CATALYTIC SUB-PROGRAM 41 How has the water level in Lake Victoria changed How is population changing in Cairo? In Entebbe? SECTION 3: THE CATALYTIC SUB-PROGRAM over the past decades? What are the seasonal and year-to-year precipitation patterns in Accra? What is this year’s wet season flood forecast for Khartoum? What are mortality risks and potential economic losses? What are the differences in climate model projections for rainfall in the next century across models? 42 CIWA ANNUAL REPORT 2014 4  43 SEC TION 4 OVERVIEW OF RESULTS SECTION 4: OVERVIEW OF RESULTS T he overall impact of CIWA has been to strengthen sustainable climate-resilient growth in Sub-Saharan Africa. CIWA seeks to support riparian countries in these reports also provide qualitative information about progress that has been made. Details of individual basin programs and projects are available through the unlocking the potential for sustainable and climate- CIWA website and are included in the Implementation resilient growth by addressing constraints that limit Supervision Reports (ISR) for each project. cooperative management and development of interna- This section includes a summary of results to tional waters. CIWA’s focus on water-related growth date which contribute towards meeting targets for the reflects the desire of riparian governments engaged in program’s development objectives, including: potential cooperative management to accelerate development investment dollars influenced; potential direct benefi- efforts aimed at supporting economic growth and pov- ciaries; highlights of CIWA’s key achievements this year; erty reduction. It also leverages the comparative advan- and a detailed account of the progress made toward the tage of the program’s host institution, the World Bank, FY14 targets for each of CIWA’s four Intermediate Results to bring knowledge and experience of infrastructure areas. investment across the water-related sectors in Africa. CIWA reports its results in terms of indicators which help assess how it achieves both its PDO and its IR, as defined in its Performance Management Framework Results to Date: Program (PMF) (Appendix A). The PMF provides rationales for Development Objective (PDO) inclusion of CIWA’s indicators, describes how results are calculated, and includes information on data sources, The program’s development objective is to strengthen known data limitations, and definitions of key terminol- cooperative management and development of interna- ogy. It is important to note that for the purposes of CIWA tional waters in Sub-Saharan Africa to assist in achieving reporting, the status of “in operation” is established sustainable climate-resilient growth. In order to accom- when the project concept note (PCN) has been endorsed plish this objective, CIWA supports the institutions that by the CIWA AC and has been subsequently approved manage and develop the basins, catalyzes and enables using standard Bank practices, and when the project transformative water-related investments, and facili- is either under preparation or under implementation. tates information gathering and sharing on the benefits Projects that do not require a PCN are considered to be of cooperation. As with all infrastructure preparation “in operation” when the Grand Funding Request (GFR) projects, information sharing efforts, and institutional has been approved by Bank management. Because strengthening work, the impact of any support pro- CIWA recognizes that often progress is made that cannot vided may not be fully realized for many years. In be easily aggregated across its various engagements, particular, CIWA works upstream of actual investment, 44 CIWA ANNUAL REPORT 2014 making immediate attribution of results a challenge. CIWA influences investment and beneficiaries can vary CIWA tracks progress towards these long-term results and is defined in the results presented below and in the by measuring on an interim basis the estimated value CIWA Support Plans (CSP). Ultimately, CIWA will focus of potential investments influenced by CIWA, and by on quantifying actual secured financing for investment identifying potential direct beneficiaries of the invest- projects and actual direct beneficiaries of those projects ment projects influenced. Depending on the basin, and it has specifically supported (See the PMF in Annex 1). on the cooperation status of that specific basin, the way HIGHLIGHTED FOCUS T H E K E Y AC H I E V E M E N T S I N F Y14 I N C L U D E D : • New engagement initiated in the Niger Basin. NBA, Lake Chad, Okavango MSIOA, ECOWAS, CIWA engagement in the Niger Basin was ZAMCOM and the Lesotho Highlands Botswana endorsed and was significantly advanced in close Water Transfer) is nearly complete and implemen- cooperation with the NBA. Activities will sup- tation is expected to begin in FY15. port cooperative water resources management, • Targets for investment financing influenced improved benefit sharing around water resources and potential beneficiaries exceeded. CIWA’s development, and strengthened stakeholder support for potential investments grew to $7.8 engagement. billion. The number of beneficiaries who are • Substantial number of engagements are under expected to experience positive results down- implementation. This year, CIWA moved a stream of the programs and projects grew to 46 number of projects to implementation (that is, million. Catalytic Sub-Program, NBD, NCORE AF, ZRA, • Nile Basin Program significantly expanded. and SADC Groundwater Management) totaling Support for the Nile basin was expanded with more than $30 million in project financing. All of an additional $18 million dollars in FY14 (CIWA the projects are designed to support transforma- and NBTF financing) bringing its total budget tive cooperative engagements and climate- to US$27 million (an increase of 48 percent). resilient growth, and to help countries tackle This additional financing allows the recipient energy, and food security, and poverty reduction partner to prepare upstream work for several new challenges. potential investments with expanded targets for • CIWA continues to strengthen and build its potential investments advanced and potential portfolio. Preparation of many projects (VBA, direct beneficiaries. SECTION 4: OVERVIEW OF RESULTS 45 Program Development Objective: To strengthen projection of CIWA support, CIWA has influenced the the cooperative management and development of potential investment in the Fomi dam which is cur- international waters in Sub-Saharan Africa to facilitate rently estimated to be approximately US$1 billion3. sustainable climate-resilient growth. CIWA support is expected to enhance riparian under- Indicator i): US$ financing mobilized for cooperative standing of benefits and trade-offs, and to increase management and development of international waters stakeholder input, as the project progresses. In addi- projects supported by CIWA. tion, CIWA’s contribution is closely coordinated with potential financing from the IDA for the anticipated Target FY14: US$6 billion (value of potential projects Sahel Disaster Resilience Project (around $200 mil- influenced by CIWA) lion) and an anticipated third phase project (around Actual: US$7.8 billion in potential investments influ- $100 million) under the ongoing regional Water enced by CIWA Resources Development and Sustainable Ecosystems Management Program. Disaggregated: • US$3 billion (updated)—CIWA supports the Nile • US$250 million2 (new result)—CIWA helps to cata- countries in their efforts to promote investment in lyze discussions on the rehabilitation of the Kariba regional cooperative water resources management Dam. CIWA signed a grant with ZRA in FY14 to sup- and development. CIWA provides support to the NBI port cooperation for the development of the Batoka by facilitating cooperative activities, improving inte- SECTION 4: OVERVIEW OF RESULTS Gorge HES in the ZRB and to enhance the legal and grated water resources planning and management institutional framework for the operation and safety and identifying and preparing potential investments of the Kariba Dam hydropower complex. As part of of regional significance4. In FY14, CIWA finalized the the preparation process for CIWA’s support to the NCORE additional financing package which provided ZRB, CIWA provided a platform for riparians and significant additional support to the NBI for prepara- financiers to reopen promising discussions on reha- tion of multi-sectoral cooperative regional invest- bilitation of the Kariba Dam. Progress towards fund- ments. NCORE supports upstream work on multiple ing mobilization has been demonstrated by receipt investments throughout the entire project, the sum of formal requests from both Zambia and Zimbabwe of which are estimated to require $3 billion in financ- to explore financing options. The World Bank has ing. The total sum of investment projects influenced been asked to take the lead in preparation activities. by the NCORE grant through FY14 was $1.8 billion. In addition, joint missions by the World Bank, the Further detail on investments influenced by CIWA African Development Bank and the EC have been support through FY14 is provided in Table 1. CIWA carried out to meet with riparians and ZRA, with the support will create feasibility and design studies, World Bank planning to take the project to the Board and package investment information to reach in November 2014. national agreement to advance the investment, as • US$1.3 billion (new result)—CIWA helps to facili- well as improve river basin planning and strengthen tate cooperation around the Fomi Dam. In FY14, stakeholder participation in the investment, in CIWA initiated an engagement with the NBA for the order to advance projects that improve watershed purpose of improving water resources management management, irrigation, electricity production, and development in the Niger River basin. The and water supply. In addition, through the NBD project will strengthen the NBA’s ability to deliver on project, CIWA is supporting enhanced civil society its core mandate and will enhance regional benefit participation in the preparation and implementation sharing around the Fomi Dam. The PCN for this of Nile investments of regional significance. While project has been approved and full project develop- the NBD has not yet finalized selection of investment ment is underway with implementation expected to begin in FY15. Through project development and the 3 The US$ 1.1 billion of potential investment for Fomi Dam is calcu- lated as the sum of the costs associated with the remaining detailed design studies (about US$ 10 million), the cost of the dam (~US$ 315 2 The value for the Kariba Dam rehabilitation (US$250million) is based million, estimated in 1999 Feasibility Study), the related hydroelectric on a series of feasibility and design studies completed by ZRA in July plan and transmission lines (~US$ 220 million, estimated in 1999 Fea- 2012. These initial estimates have been escalated to account for pos- sibility Study), and implementation of social and environmental plans sible advanced infrastructure, tendering, supervision and engineering (~US$ 560 million, estimated in 2009/2010 ESIA, RAP and ESMP). costs, along with ZRA’s own costs, provisional sums and escalations from 4 Note that CIWA support for the NBI is blended with NBTF support. 2012. See Section 5 for more details. 46 CIWA ANNUAL REPORT 2014 projects for enhanced stakeholder dialogue, they are Target FY14: 8 million (number of potential beneficia- working with NELSAP to identify opportunities for ries of projects influenced by CIWA) NBD member organizations to improve community Actual: 46 million potential beneficiaries of projects benefits from the Nyimur multipurpose water influenced by CIWA resources management and development project • 3 million (new result)—Potential beneficiaries (currently an investment agreed to by NEL Technical of rehabilitation of the Kariba Dam. The Kariba Advisory Committee, but not planned for CIWA sup- Dam is the second largest hydro-electric scheme in port). If NBD’s engagement on the Nyimur project is the ZRB, contributing more than 50 percent of the expanded, or if the NBD engages around investment power generation in Zambia and Zimbabwe. Without projects in addition to those described above, the rehabilitation, the reservoir cannot be operated as reported value will increase accordingly. designed and in accordance with international dam • US$2.5 billion (previously reported)—CIWA safety regulations, because power production and catalyzes the resumption of negotiations for the flood control capabilities are not fully functional. preparation of the Batoka Gorge hydroelectric A failure of the Kariba Dam could result in the loss scheme. CIWA conducted an analysis of the financial of 40 percent of the generation capacity within the implications of the stalled development of this Southern African Power Pool (outside of South long-identified major infrastructure project. CIWA Africa) and would put other assets, livelihoods then facilitated negotiations between Zimbabwe and and lives in the basin at risk, with severe regional Zambia to review the implications of the analysis implications; an estimated 3 million people would be and encourage the resumption of project preparation. severely impacted if a catastrophic failure occurred. The total expected cost of this project was estimated Therefore, CIWA’s influence in advancing this project in the 1993 feasibility study to be US$2.5 billion. by providing a platform for dialogue among ripar- In FY14, the World Bank signed a grant with ZRA ians, the ZRA and financiers will benefit more than which supports updating the engineering studies, as 3 million people by helping to avoid catastrophic well as undertaking a new environmental and social failure and by securing the efficiency and safety of assessment in line with international best practices the dam’s operation. in the development of this important scheme under • 30.8 million (new result)—Potential beneficiaries the Zambezi River Basin Development Project. The of the planned Fomi Dam5. This figure captures reported figure will be adjusted based on the out- the potential beneficiaries from the development comes of these studies. of Fomi Dam that would benefit from increased • US$0.8 billion (previously reported)—CIWA electricity production, enhanced food security from provides analytical support to inform the Lesotho irrigated agriculture and increased sustainability of Highlands-Botswana Water Transfer Project. CIWA fisheries, and increased employment opportunities. recently signed an agreement with the Government Beneficiaries from electricity generation are estimated of Botswana (on behalf of the governments of at around 4.6 million people based on current design Lesotho and South Africa) to fund an analytical plans. Around 25 million people are estimated to study which will explore the costs and benefits of benefit from increased food production from irrigated the transfer of water from the highlands of Lesotho agriculture and 0.8 million people are projected to to southern parts of Botswana and northern South benefit from enhanced fisheries. Nearly 0.5 million Africa. CIWA’s support incentivizes cooperation people can anticipate to benefit from jobs created. among the riparians around this potential $800 These estimates are based on the information cur- million investment. This figure is the best available rently available. It is anticipated that future studies, estimate at this time and is based on the current con- including those that will be supported by CIWA, will cept and experience in water-transfer infrastructure refine these estimates, and add estimated beneficia- in the region. However, details of the potential cost ries from improved transportation due to increasing will depend on the outcomes of the study and the preferred design of any proposed scheme. 5 Current design for Fomi Dam as outlined in the 2010 ESIA and the 1999 Feasibility Study which projects an annual generation of 374.2 GHh. Indicator ii): Number of people directly benefiting from The 4.6 million beneficiaries figure was calculated assuming a 20 percent improved water resources management and development energy loss (both technical and non-technical), 80 percent consumption in Guinea and 20 percent in Mali, and per capita electricity consumption in target basins through projects supported by CIWA. of 78.8 kHw in Guinea and 37.64 kHw in Mali. SECTION 4: OVERVIEW OF RESULTS 47 the river’s navigability, from reduced impacts of cli- Results to Date: Intermediate Results mate variability and climate change due to regulation and control of the upper basin, and due to increased (IR) local development in areas influenced by Fomi Dam. This FY, progress towards deepening implementation • 4.2 million (updated result)—Potential ben- and broadening of the CIWA portfolio in order to achieve eficiaries of CIWA support to the NBI regional all four of the IR areas resulted in significant implemen- investment portfolio in the Nile Basin. People in tation progress. In FY14, CIWA’s engagement with the the Nile Basin benefit from cooperative management Niger Basin was approved and important steps were and development of water resources facilitated by taken for preparation of the project. After an additional the NBI. Among other activities, CIWA’s NCORE financing package was approved for the Nile basin, project supports the NBI’s efforts to prepare project which significantly expanded CIWA’s support to the documentation for investments with regional ben- basin, implementation was begun for projects with ZRA, efits (that is, identification and prefeasibility studies, SADC, and the NBD. In addition, important progress environmental studies and social impact studies). was made in making preparations for the Volta Basin CIWA’s support influences investments that are pro- Program and the Lesotho Highlands Botswana Water jected to benefit over 4.2 million people based on the Transfer project, both of which are expected to begin current, on-going and planned efforts (See Table 1 execution under implementation in FY15. Finally, the for a breakdown of potential beneficiary figures and structure of the Catalytic Sub-Program was approved in SECTION 4: OVERVIEW OF RESULTS data sources for the data estimates). Additionally, as FY14, and significant progress was made on a number the NBD engages in consultation and enhancement of catalytic activities: a framework was developed for of investment projects in addition to those already examination of political economy in international waters; counted here, this indicator would increase to also support for ECOWAS was approved; support for the Lake include the beneficiaries of the additional projects. Chad Basin was advanced; and procurement began for • 6 million (previous result)—Potential beneficiaries the Okavango MSIOA. (Full details on the Catalytic Sub- of the planned energy production of the Batoka Program are reported in Section 3). Gorge hydroelectric scheme. This number is the Progress toward the FY14 targets for each “people-equivalent” figure derived from the mean Intermediate Result is presented below. energy production (estimated at 8,739 GWh/yr by the 1993 feasibility study) and average household Intermediate Result 1. Regional cooperation and consumption in Zambia (estimated 1.2 million integration strengthened households, assuming five people per household) of Target FY14: Four basins with programs and CSPs 7,200 KWh/yr. designed. • 2 million (previous result)—Estimated potential Progress against target: Fully achieved. beneficiaries of the Lesotho Highlands-Botswana • Niger Basin Program Designed (new result). In Water Transfer Project. While the details of the FY14, CIWA presented and received AC endorsement preferred scheme will be developed through a of a new engagement in the Niger Basin, including CIWA-sponsored analytical study, initial potential an allocation of up to $7.5 million for a recipient- beneficiary estimates indicate that 600,000 people in executed grant to the NBA. Preparation of the project Botswana should benefit through provision of water, is underway, with appraisal expected in November 1,000,000 people in Lesotho should benefit from 2014 and approval and implementation expected in additional revenues, and 400,000 people in South early 2015. The draft Niger Basin Support Plan (BSP) Africa should benefit through provision of water was developed in discussions between the CIWA along the transfer route. This estimate is based on team and the NBA, and a final version is expected by the current concept, demographics of the region, October 2014. and experience in water-transfer infrastructure. The number of beneficiaries is subject to refinement • Nile, Zambezi and Volta Basin Programs Designed and confirmation at the conclusion of the study and (previously reported). Three Basin Programs were when investment is actually mobilized. designed in FY12 and FY13. In FY14, the Zambezi BAC discussed progress on the implementation of the Zambezi Basin Program and the BAC noted 48 CIWA ANNUAL REPORT 2014 delays in the transition of the ZAMCOM Secretariat which delineates riparian water usage and related and resulting impacts on the CIWA program imple- roles and responsibilities. CIWA will help strengthen mentation. However the transition to the permanent the capacity of the basin riparians’ Focal Points to Secretariat has been completed and the project is to engage on cooperative water resources management be re-appraised with a view to obtaining approvals and development issues. In addition, the political in early 2015. Also in FY14, the Nile BAC approved economy analysis that will be conducted for the the Nile CSP. The Volta Basin CSP was discussed Volta will inform the VBA’s strategic planning by and reviewed with the VBA. The Volta Basin CSP identifying key points of entry and engagement with highlights the long term strategic goals of VBA and riparian countries in order to increase cooperation. potential support of CIWA for priorities for facilitat- • Engagement with Southern African Development ing collaborative investments in water resources Community (SADC) will strengthen the insti- infrastructure. Discussions with the VBA determined tutional capacity for cooperation around the that its Committee of Experts, which meets regularly, sustainable management of groundwater in will form part of the BAC, and meetings of the Volta Southern Africa (new result). CIWA support will BAC will commence as preparations advance. help to enable SADC to operationalize the SADC Groundwater Management Institute (SADC GMI) Target FY14: Five relevant institutions with projects in which will provide a platform for cooperation on operation that contribute to strengthening regional coop- groundwater management and development in the eration and integration. region. Progress against target: Fully achieved. • Engagement with the NBI strengthens the platform for regional cooperation (updated result). The proj- NBA, VBA, NBI, ZAMCOM, ZRA and SADC (six basin ect contributes to regional cooperation and integra- institutions) have projects currently in operation that tion by supporting a platform for dialogue between contribute to strengthening regional cooperation and Member States, strengthening national and regional integration. linkages, building an evidence base for cooperation, • Engagement with the NBA helps to demonstrate and supporting the transition to coverage of core linkages between regional cooperation and shared financing from Member States. In FY14, the NBI benefits. CIWA support to the NBA will contribute organized a Nile Day Event that attracted more than to strengthening regional cooperation and integra- 400 attendees from different water-related sectors; tion by supporting the institution in delivery of its four Member States (DRC, South Sudan, Kenya and core mandate. This will include using institutional Tanzania) supplemented this with National Nile strengthening measures to improve the basin-wide Days. The NBI also brought together Permanent cooperative platform, such as implementing key Secretaries from the Nile countries to discuss com- financial sustainability measures; and facilitating, mon challenges and to review tangible results stem- promoting and informing dialogue dealing with the ming from their cooperation to date. In addition, the preparation of a key transboundary investment in Secretariat held a regional meeting of the National order to improve the quality of the project and to Focal Points to review NBI progress, plan for 2013 help riparians better share benefits from the planned and identify strategic challenges. development. • Engagement with ZAMCOM will strengthen the • Engagement with the VBA supports institutional platform for dialogue between the eight Member strengthening and development for improved States (previous result). The permanent ZAMSEC regional cooperation (new result). Among its has now been established in Zimbabwe and many activities that will advance cooperation in approval of the grant is envisaged in early 2015. the basin, CIWA’s engagement with the VBA will CIWA’s engagement with ZAMCOM is intended primarily focus on institutional strengthening. to assist the institution in becoming a financially This will include help to establish clear roles and sustainable, efficient RBO that provides a useful responsibilities for the institutions main organs, platform for dialogue among its Member States. to strengthen procedures for administration and Activities will include institutional support and financial management and to support establishment institutional strengthening for the ZAMSEC, confi- of a Water Charter that will be the legal foundation dence building and negotiation training initiatives SECTION 4: OVERVIEW OF RESULTS 49 aimed at engendering cooperation, support for Based on the Institutional Assessment, an options communications to foster greater dialogue among paper was drafted to identify potential measures, the ZRB riparians, and support for harmonizing the inform options and outline detailed steps toward har- legal instruments of cooperation. This project also monizing existing policies and laws to improve the is designed to build partnerships between power cooperative management of waters within the ZRB. authorities and the basin commission in recognition of existing bi-lateral agreements for power generation Intermediate Result 2. Water resources management and trade. strengthened • Engagement with ZRA will strengthen regional Target FY14: Four relevant institutions with projects in cooperation and integration (previous result). The operation that improve water and climate risk manage- project contributes to efforts to strengthen regional ment and/or investment operation coordination. cooperation by advancing cooperative WRD in the Progress against target: Fully achieved. Zambezi basin in conjunction with the institutional and policy support provided to ZAMCOM and the NBI, ZAMCOM, ZRA, SADC and VBA (five basin insti- Bank-executed analytical basin support program. The tutions) have projects in operation that contribute to grant with ZRA was signed in FY14. strengthening water resources management. Target FY14: Three strategic analyses conducted • Engagement with VBA will strengthen WRM (new that will be used to illustrate the evidence base for result). CIWA’s support for the VBA will strengthen SECTION 4: OVERVIEW OF RESULTS cooperation. cooperative water resources management by imple- menting several priority actions with transboundary Progress against target: Partially achieved. significance. For example, activities will help ripar- Numerous strategic analyses are underway, several of ians address water quality concerns, better manage which will be used to inform cooperation across Africa, soil erosion and sedimentation, and reduce costal and several of which will be used to provide evidence degradation. The project will also increase the for the benefits of cooperation in specific basins. One monitoring and flow of information by developing study has been completed and is being used to improve standardized tools for data collection and monitoring cooperative management of waters in the Zambezi and for facilitating exchanges of information that Basin. will help riparians better prepare for and respond to climactic events such as floods and droughts. • Zambezi River Basin Support Program supports studies that will illustrate the evidence base for • Support for the SADC Groundwater Management cooperation. The ZRB political economy analysis Institute will strengthen groundwater management titled “The Context for Cooperation in the Zambezi in southern Africa (new result). The engagement River Basin” is intended to contribute to deepening with SADC includes development of guidelines, cooperative development and to fostering sustainable standards and management tools to strengthen economic growth and development in the ZRB. The national and regional groundwater monitoring and case study explores details of the underlying geo- data management systems—supported by a regional political context for framing cooperative agreements data sharing platform. The engagement will also and for informing contemporary hydro-political posi- target Transboundary Aquifer Diagnostics with the tions. The study was presented to the Zambezi BAC use of Strategic Action Plans for selected shared in August 2013 and will be completed in consultation groundwater systems in the region. Targeted analyti- with the ZAMSEC. The “Institutional Assessment of cal work will also focus on threats to sustainable the Zambezi River Authority” has been completed. It groundwater management, such as climate change. includes a review of the governing legal framework At the regional and multinational level, efforts will for the effective and efficient use of waters and be made to facilitate the integration and harmoniza- other resources within the Zambezi River under the tion of groundwater provisions between national and ZRA. The study helped to identify national and local basin-level commitments. legislation that has resulted in potential overlapping • Engagement with the NBI strengthens WRM authority over economic, environmental, technical, (updated result). The NCORE project includes the safety, and other areas affecting the Zambezi River. application of many tools and models to help the 50 CIWA ANNUAL REPORT 2014 Nile countries understand the hydrovariability in the Intermediate Result 3. Water resources development basin. This includes the Nile basin DSS to identify strengthened and analyze the opportunities and challenges related Target FY14: Two investment opportunities with to basin management, including climate risk assess- regional benefits influenced by projects in operation. ment. Support is being provided to the DSS user Progress against target: Fully achieved. communities of the ministries of water of all member states, and of academics, in an effort to advance NBA, NBI, and ZRA have projects in operation which DSS development and application. Additional DSS contribute to advancing 16 investment opportunities. software and an initial set of models and data were • Niger Basin Program will advance development distributed to seven NBI countries. The System is of the Fomi Dam with an emphasis on regional improving the knowledge and analytical foundation benefit sharing. CIWA support for the NBA will for a shared understanding of cooperative water help advance the development of the Fomi Dam by resource management and development options. providing process, dialogue and analytical support CIWA supports the enhancement of the flood fore- upstream of a potential future investment. The casting system to include new areas in the EN. It also PCN for this engagement was endorsed in FY14 supports the mainstreaming of sustainable environ- (the project is in operation) and progress towards mental and social practices into investment project implementation is advancing in close consultation development. In FY14, the Flood Forecasting tool with the NBA. was enhanced to include real-time earth observation data, and flood bulletins are now routinely released • Nile Basin Program makes progress on advancing to enable national governments and communities multiple investment opportunities (updated result). along the Blue Nile to respond more quickly during The NCORE project supports preparation of transfor- flood season. In a related effort to enhance water mative investment projects of regional significance in and climate-variability related knowledge, ENTRO hydropower, irrigation, water supply and watershed recruited experts in hydropower and climate to management. Progress toward advancing these enhance its major reports and studies, including investment projects in FY14 included: preparations integrating climate change into its modelling. moved forward on the final design of the Muvumba Finally, CIWA support will allow the NBI to develop Irrigation and Watershed Management project; the a detailed specification of the planned basin-wide NBI is using the Nile DSS to identify five relevant hydro-meteorological system. investment projects and will prepare “project profiles” designed to help secure project financing; • Engagement with ZAMCOM will strengthen WRM and procurement is underway for feasibility studies (previously reported). The engagement with and associated ESIAs for seven additional investment ZAMCOM will improve the WRM knowledge base projects in the NEL region. Future work that will and analytical capacity by strengthening the water contribute to this result area includes an analysis for information management system and undertaking a Least-Cost Power Expansion Plan for South Sudan, basin-level climate risk analysis. The project will also which will enhance planning for the integration develop a flood forecasting and early warning system of South Sudan into the Regional Power Grid and for better management of extreme events. CIWA will allow for optimal development of the region’s will additionally support the improvement of key water resources. More details on investments the institutional functions through technical assistance, NBI is advancing with CIWA support are provided in confidence-building measures, and negotiation Section 2 and Table 1. training. • ZRA project to advance and strengthen two • Engagement with ZRA will strengthen WRM (previ- investment opportunities with regional benefits ously reported). The engagement with ZRA will (previously reported). This project is supporting enhance the regional institutional arrangements for the ZRA in updating the feasibility studies for the catastrophic disaster risk management, enhance the Batoka Gorge HES, preparing an ESIA, and exploring legal and institutional framework for the operation transaction options. Also, the Zambezi River Basin and safety of the Kariba Dam hydropower complex, program will support the ZRA to enhance the opera- and enhance the ZRA’s capacity for water resource tions and safety of the Kariba hydropower complex, management and control within the ZRB. including dam break analysis. SECTION 4: OVERVIEW OF RESULTS 51 Target FY14: Two institutions with projects in operation results will show the feedback mechanisms between that improve the approach to sustainable investment water management and development in the ZRB and planning and bankable investment preparation6. power generation in Southern Africa. These results Progress against target: Fully achieved. will illustrate the trade-offs between irrigation and hydropower due to limited water resources, and will NBI and ZAMCOM (two basin institutions) have projects also provide estimates of Greenhouse Gas emissions in operation that contribute to improving the approach under different development scenarios. This work to sustainable investment planning. will provide an input into the formulation of the • Engagement with NBI/NELSAP strengthens integra- Strategic Plan to be developed by the ZAMCOM. tion of gender considerations into institutional planning. In FY14, NBI/NELSAP began to imple- Intermediate Result 4. Stakeholder engagement and ment recommendations from a recently concluded coordination strengthened gender audit. CIWA provided expert guidance and Target FY14: Three basin institutions with projects in support on how to functionally mainstream gender operation that contribute to strengthening stakeholder into its operations by reviewing policy and guideline engagement and coordination, thirty percent of which documentation, providing advice on how to integrate include organizations representing interests of women a gender perspective into conferences and strategic and/or the poor. events, and by collating and expanding on gender Progress against target: Fully achieved. SECTION 4: OVERVIEW OF RESULTS resources developed by the Bank that NBI/NELSAP could use to address issues highlighted in the gender Progress against sub-indicator target: Partially achieved. audit. Gender-related expert advice may be expanded NBA, NBI, NBD, and ZAMCOM (four basin institutions) in the coming year to include informational sessions have projects in operation that contribute to strengthen- on relevant Bank resources and expansion of advi- ing stakeholder engagement and coordination. CIWA’s sory services to the other two NBI centers. NBI and support facilitates the NBD (with 25 percent of basin NELSAP gender guidelines and lessons learned will institutions contributing to IR4, Stakeholder Engagement) be shared with other basin teams to facilitate integra- in their collaboration with organizations representing the tion of gender into their programs. interests of both women and the poor. When engagement • Engagement with NBI/ENTRO strengthens sustain- with ZAMCOM and NBA is fully under implementation, able investment planning including integration CIWA expects to have increasing clarity on how its sup- of climate and safety considerations into project port increases stakeholder engagement with organiza- planning. The NCORE project launched and is tions that represent women and/or the poor. further developing an EN Climate Change portal • NBA project focuses on stakeholder engagement with tools and data to enhance climate resilience around the coordinated management of hydraulic and adaptation in project planning. The project also works in the basin including those associated with provides significant technical support and capacity Fomi dam construction, flow regulation and eco- building to improve dam safety in the EN. In FY14 system services. The Niger River Basin Management ENTRO provided training to its members on aspects Project will facilitate informed decision-making of establishing a regional Dam Safety framework and around the Fomi dam investment, and will convene guidelines, and provided hands-on training to coun- investor forums to facilitate engagement with the try technicians on assessing and preventing potential private sector. The project will also develop a stake- dam failures. Training studies were completed on 5 holder engagement strategy involving the operation dams in Ethiopia and Sudan. of Annex 2 of the Water Charter. The Water Charter • Analytical work supports incorporation of climate lays out general rules and recommendations for coor- change considerations into Zambezi River Basin dinated management of hydraulic infrastructure, and planning. CIWA is partnering with the University of supports an information tool that would facilitate Cape Town to assess the potential impacts of climate consultation and communication with regards to the change on the energy-water nexus in the ZRB. The operation of the river basin’s dams, both current and planned. This tool is expected to enhance engage- 6 Sustainable investment preparation includes consideration of pov- erty, gender, long-term climate change among other social and environ- ment with a broad group of stakeholders, including mental considerations. civil society and academia. 52 CIWA ANNUAL REPORT 2014 • NBI project expands partnerships with academia enhance partnerships with academia to help broaden and civil society (updated result). The NCORE the base of transboundary knowledge and analysis project enhances knowledge partnerships with stake- in the basin. CIWA is also supporting ZAMCOM to holder networks, including government, power utili- conduct a detailed stakeholder analysis, followed ties, and academia, through an internship program by the development and distribution of targeted that provides training to regional specialists. For communication materials to foster greater awareness example, in FY14, ENTRO and the NBI Secretariat within the Basin on equitable and reasonable utiliza- recruited new interns whose focus will be on tion of the Watercourse. increasing the knowledge base, and on developing Target FY14: One basin with increased water resources outreach and knowledge products. In addition, the management and development information in the public project has supported, and will continue to support, domain. holding modeling forums where members of profes- sional networks and civil society organizations can Progress against target: Fully achieved. explore and debate regional water issues. CIWA’s engagement in the Nile Basin has contributed • NBD project designed to better coordinate civil soci- to increased public access to and updating of water ety engagement in the Nile basin (updated result). resources information and knowledge. The project will support bridging policy and practice • Engagement in the Nile basin increases water to both inform project design and to help monitor related knowledge in the public domain and sup- NBI activities, creating a safe space for dialogue with ports outreach to user communities (new result). civil society groups, and also to contribute to capac- Building off of previous support from the NBTF, ity development in Nile Basin communities directly CIWA support for the NBI has strengthened public affected by ongoing projects. Implementation began access to water-related information in the Nile basin. in FY14 and the NBD is already engaging with the For example, a project has been launched for further NBI on water planning through CIWA support. For development of an EN Climate and Flood portal, example, the NBD worked with NELSAP to identify which includes tools and data to enhance consid- how the organization’s members could enhance the eration of climate resilience and adaptation issues livelihoods of communities that are intended to ben- in project planning, and has a flood forecasting app efit from the Nyimur Multipurpose Water Resources under development. In addition, the NBI is actively management and development project planned in enhancing its portal user interface by developing the Aswa basin. It is important to note that the NBD and strengthening communications material and has significant membership from organizations that conducting outreach to ensure that users are aware represent the interest of women and the poor, and of available products, and to ensure that the outputs that the organization routinely monitors representa- are readily accessible on the internet. The NBI’s tion from this constituency. efforts have already begun to demonstrate results • Engagement with ZAMCOM to enhance external in terms of public uptake of information, where communications and build partnerships with enhancements to the NBI’s web portal increased web academia (previously reported). The project will hits by 35 percent. SECTION 4: OVERVIEW OF RESULTS 53 OVERVIEW OF RESULTS 54 CIWA ANNUAL REPORT 2014 5  55 SEC TION 5 FINANCIAL OVERVIEW SECTION 5: FINANCIAL OVERVIEW T his year CIWA made important progress in working with countries and organizations in Sub-Saharan Africa, deepening its engagements and supporting the the World Bank. Consistent with standard World Bank Trust Fund practices, funding for CIWA is pledged by donors (current pledges total US$71.2 million) and funds implementation of several basin projects. The World are deposited on an agreed schedule (current deposits Bank approved four projects (NBD, NCORE AF, Zambezi total US$26.5 million). Then, in accordance with CIWA’s River Basin Development, and SADC Groundwater strategic planning efforts, funding is allocated to basin Management). Of particular note, the pace of disburse- programs or projects (current allocations are US$59.9 ment nearly doubled in FY14, while at the same time, 95 million) and allocations are endorsed by the CIWA AC. percent of the available funding was allocated to CIWA After allocation, CIWA works with its riparian partners projects and activities. During this FY, CIWA has also and the Bank task team to develop GFRs and funds are worked to leverage additional resources in an effort to committed by the Bank through its standard fiduciary better establish itself and to maximize the use of trust processes (current commitments are US$35.7 million). fund resources for its projects. For example, CIWA has Funds are then disbursed according to the grant agree- established partnerships with the NBTF to co-finance the ments and financing plans (currently US$4.4 million has NCORE AF project and with the GEF to co-finance two been disbursed). Additional details on pledges, depos- projects—one led by SADC on groundwater management its, allocations, commitments, and disbursements are and the other led by the VBA on institutional strengthen- presented below. ing and watershed management. A significant milestone This section includes the following: a description of for the program involved finalizing the design of the the CIWA financial framework; a summary of the donors Catalytic Sub-Program, an essential tool for focusing and the total funds pledged (Table 4); an overview on cross-cutting issues that provides CIWA with much of CIWA allocations (Table 5); a detailed account of needed analytical underpinnings, and that advances allocations (Table 6); the financial distribution among implementation of key activities under the Catalytic basins (Figure 7); and a summary of the status of CIWA Sub-Program. projects. This section also provides a quick look at the The CIWA program is supported by a MDTF and details of projects funded (Table 7); a listing of the dis- administered by the World Bank on behalf of contribut- bursement and funding balance of the program (Figure ing development partners. This specific type of MDTF is 8 and Table 8); and a summary of how program design known as a “Programmatic Trust Fund” to which donors and delivery work prominently incorporates Value for commit funds designed to support a thematic framework Money (VfM) principles for minimizing costs and for rather than financing any specific project. Within this maximizing the impact of CIWA resources in order to framework, CIWA supports projects executed by recipi- achieve overall program objectives. Finally, this section ent organizations as well as projects directly managed by includes a financial summary of program management, 56 CIWA ANNUAL REPORT 2014 TABLE 4: Overview of Donor Pledges and Deposits Pledges Deposits Amount (in Amount Outstanding Contributing Partners Currency Donor Currency) Amount (US$) Received (US$) Balance (US$) Denmark (DANIDA) DKK 18,700,000 3,398,597 3,398,597 0 The Netherlands USD 25,000,000 5,000,000 20,000,000 Norway (NORAD) USD 882,746 882,746 0 Sweden (SIDA) SEK 170,000,000 25,493,276 7,644,234 17,849,042 United Kingdom (DFID) GBP 10,000,000 16,393,762 9,579,800 6,813,962 TOTAL 71,168,381 26,505,377 44,663,004 and a summary of the funding requirements needed for deposited in the CIWA–MDTF account. This leaves a future projects and those already under preparation. remaining balance of US$44.7 million to be deposited in Unless otherwise noted, the financial informa- the coming years. Table 4 shows the pledges, deposits, tion presented in this report, including exchange rates, and outstanding balances. Contributing donors to date reflects the status as of June 30, 2014. include the governments of the Kingdom of Denmark, the Kingdom of the Netherlands, the Kingdom of Norway, Kingdom of Sweden, and the United Kingdom of Great Britain. Development partners deposit funds in Donor Pledges and Deposits the CIWA MDTF account according to an agreed sched- The total funds pledged as of June 30, 2014 amounted ule of deposits that is detailed in the Administration to US$71.2 million. The Netherlands joined as a new Agreement or other documents exchanged between the partner in December 2013, pledging US$25 million and Bank and the partners. This schedule can be revised as expanding the then US$46 million program size by necessary to meet project disbursement requirements. over 54 percent. Of these funds, US$26.5 million was TABLE 5: Overview of Availability and Allocation of Funding Allocation of Funding US$ Pledges in signed Administration Agreements 71,168,381 Plus current investment interest income 160,543 Less 2% administrative cost recovery fee –1,423,368 Funds available for project/activities 69,905,556 Less contingency for currency fluctuation (unallocated, 15% of donor receivables, $44.7M)* –6,699,451 Funds available for allocation 63,206,105 Less allocation to projects/activities 59,865,461 Unallocated Funds 3,340,645 % Allocated 95% *The Basis of Commitment (BoC) of the CIWA MDTF is based on cash-plus future donor contribution receivables (that is, including amounts not yet paid in by a trust fund donor under a signed administration agreement or equivalent). Trust funds may be exposed to BoC risk if grant agreement amounts (that is, commitments) exceed the cash received from donors at the time the grant agreements are signed. The BoC risk may arise when donors provide less than agreed—or delay—funding to a trust fund, after grant commitments have already been entered into with recipients based on the expectation of future contributions from these donors. Most trust funds operate under the Bank’s best practice recommendation of committing new grants only against donor contributions already received in cash. However, on an exceptional basis, some trust funds enter into grant agreements based on future donor receivables. To help avoid an over-commitment of grants against available donor funding due to currency volatility, the Bank applies an automatic discount on future donor receivables. This discount is applied on the US dollar-equivalent value of donor contributions in currencies other than the holding currency for a given trust fund. The regular discount percentage equals 15 percent of future donor receivables, but it can be increased by CTR in times of heightened currency volatility in the financial markets. In practice, the Bank system will only allow grant commitments of up to 85 percent of the prevailing US dollar value of future donor receivables. SECTION 5: FINANCIAL OVERVIEW 57 TABLE 6: Detailed Account of Allocation of Available Funding Basin/REC/Sub- Allocated Amount program/Activity Description (US$) Niger NBA, Niger Basin Support Program 8,950,000 Nile NBI (incl. SEC, NELSAP and ENSAP), Nile Support Program, Nile Basin 20,850,000 Engagement (contingent upon NBI financial strategy) Volta VBA, Volta Basin Support Program 3,950,000 Zambezi ZAMCOM, ZRA, Zambezi Support Program 11,900,000 Orange Senqu Government of Botswana (Water Transfer Study) 2,175,000 SADC SADC Groundwater Management 2,300,000 ECOWAS West Africa 1,200,000 Lake Chad / Sahel Water Balance and Strategic Communication 1,000,000 Okavango OKACOM MSIOA 800,000 Africa wide Knowledge management and technical assistance catalytic activities 2,470,358 PMU Program Management and Administration (incl. evaluation, reporting and 4,270,103 partnership coordinaton) Total 59,865,461 SECTION 5: FINANCIAL OVERVIEW FIGURE 7. Financial Distribution Among Basins Overview of CIWA Allocations As of June 30, 2014, US$59.9 million has been allocated Lake Chad/Sahel, 2% Okavango, 1% to CIWA projects and activities, which effectively has ECOWAS, 2% Catalytic: Africa-wide, 4% assigned most of the available funding (95 percent) to SADC, 4% activities under preparation or implementation. Table 5 Orange-Senqu presents an overview of the availability and allocation of 4% funding. Table 6 presents a detailed account of allocation of available funding. Nile, 38% The majority of available funds are allocated to the Zambezi 21% four sustained basins: Nile, Niger, Volta, and Zambezi.7 Basin programs include recipient-executed projects Volta Niger and Bank-executed support programs that fund techni- 16% 7% cal assistance and analytical work which supplements the recipient-executed projects (basin program alloca- tions currently total US$45.7 million). In certain cases, CIWA also pre-allocates funding for follow-up work on current projects, based on project and organizational performance and riparian commitment. In the current the Lesotho Highlands–Water Transfer Study executed envelope, US$3 million is pre-allocated for support in by the Government of Botswana. Finally, an allocation the Nile Basin subject to demonstrated commitment of of US$5.5 million will go to support the Catalytic Sub- the riparian states. In order to broaden CIWA’s impact Program, and the Bank will use this amount to execute beyond the water sector and to complement basin pro- opportunistic projects that contribute to meeting the grams, CIWA allocated US$3.5 million for projects with program’s objectives in the ECOWAS, Lake Chad and RECs. Support for RECs is comprised of US$1.2 million Okavango (a total of $3 million) and on Africa-wide for engagement with ECOWAS (Bank-executed) and activities on knowledge management, economic sec- US$2.3 million for the SADC Groundwater Management tor work and technical assistance (a total of $2.5 mil- Program. In addition, CIWA allocated US$2.2 million to lion) to generate and share knowledge and to build capacity. Table 7 lists all CIWA projects and shows 7 The final allocation for the Niger Basin Support Program is contin- financial results of projects for which grants have been gent upon endorsement by CIWA AC. established. 58 CIWA ANNUAL REPORT 2014 TABLE 7: Details of Projects Funded by CIWA Basin/Sub- Grant Actual program Executed by Fund Name TF# Amount Disbursement NIGER NBA Niger River Basin Management Project tbd 7,500,000 0 WB Niger Basin Support Program* tbd 1,000,000 0 WB Enhanced Supervision (NBA) TF016609 450,000 79,384 Niger Total 8,950,000 79,384 NILE NBI (incl NEL, Nile Cooperation for Results (NCORE) TF013767 1,500,000 0 EN) NBD Engaging Civil Society for Social and Climate TF015834 1,500,000 399,678 Resilience in the Nile Basin (NBD) NBI (incl NEL, NCORE Additional Financing I TF013767 13,000,000 0 EN) NBI (incl NEL, Nile Basin Engagement(subject to tbd 3,000,000 0 EN) contingency of NBI financial strategy)* WB Nile Basin Support Program TF014064 1,000,000 0 WB Enhanced Supervision (NBD) TF014064 400,000 122,556 WB Enhanced Supervision (NCORE AF) TF015335 450,000 26,519 Nile Total 20,850,000 548,753 VOLTA VBA Volta River Basin Institutional Support Project tbd 3,000,000 0 WB Volta Basin Support Program TF015556 500,000 0 Enhanced Supervision (Volta) TF015557 450,000 104,504 Volta Total 3,950,000 104,504 ZAMBEZI ZAMCOM Zambezi River Basin Management Project tbd 4,000,000 0 (ZAMCOM) ZRA Zambezi River Basin Development Project TF016238 6,000,000 0 (ZRA) WB Zambezi River Basin Support Program TF011577 1,000,000 434,675 WB Enhanced Supervision (ZAMCOM) TF014926 450,000 186,268 WB Enhanced Supervision (ZRA) TF014927 450,000 204,790 Zambezi Total 11,900,000 825,733 ORANGE- Botswana Lesotho Highlands - Botswana Water Transfer TF016233 2,000,000 0 SENQU WB Enhanced Supervision (LH-B) TF016038 175,000 9,189 Orange-Senqu Total 2,175,000 9,189 SADC SADC Sustainable Groundwater Management in TF016748 2,000,000 0 SADC Member States WB Enhanced preparation (SADC) TF015336 300,000 90,095 SADC Total 2,300,000 90,095 CATALYTIC Pillar 2: ECOWAS / West Africa TF016610 1,200,000 25,783 PROGRAM Opportunistic Investment by WB Lake Chad / Sahel TF015878 1,000,000 49,867 Okavango MSIOA tbd 800,000 Africa-wide Pillar 1: Analytical Work for Catalyzing TF011569 1,110,358 702,162 Cooperation TF011626 Pillar 3: Information Services for Climate tbd 300,000 0 Resilience Pillar 4: Capacity Building and Knowledge TF016747 700,000 142,443 Management Peer Review/Admin & Mgmt of Cat. Prgm. tbd 360,000 (6% of CP) Catalytic Total 5,470,358 920,255 Sub-total (projects) 55,595,358 2,577,912 PMU WB Program Management and Administration TF011372/ 4,270,103 1,256,746 11377 TOTAL 59,865,461 3,834,658 *Contingent upon endorsement by CIWA AC. SECTION 5: FINANCIAL OVERVIEW 59 FY13, an additional $2.4 million was disbursed during Commitment, Disbursement, and FY14 alone. Figure 8 and Table 8 provide a summary of Funding Balance the overall allocations, commitments and disbursements, and pipeline activity amounts per basin/sub program. By the end of FY14, the program had committed and Going forward, CIWA expects to commit an disbursed a cumulative US$40 million. (US$39.5 mil- additional US$17.4 million (Niger, ZAMCOM, Volta, lion for projects and US$0.5 million for administrative Okavango and various knowledge projects) in FY15. fees). The pace of disbursement nearly doubled in FY14. The pace of disbursements is expected to significantly While a cumulative amount of US$1.9 million had been increase in FY15 because all CIWA projects will be in a disbursed from the start of the program until the end of full implementation phase by the end of FY15. Since its FIGURE 8. Overall Endorsed Budget, Disbursement and Commitment, and Pipeline Activity Amounts per Basin/Sub-program 25,000,000 20,000,000 15,000,000 SECTION 5: FINANCIAL OVERVIEW 10,000,000 5,000,000 0 er ile lta zi u C AS el go e U nq id be D PM ah ig N Vo an W w SA Se N m /S O av ca Za ad e- EC k fri ng O Ch –A ra ke tic O La ly ta Ca Allocation Commitment+Disbursement USD Pipeline Amount USD USD *Pipeline activities are those for which an endorsement was initiated with conditions. TABLE 8: Allocation, Commitment, Disbursement and Pipeline Amounts per Basin/Sub-Program Commitment + Disbursement Basin/Sub- Commitment Disbursement % of Endorsed Pipeline Program Allocation USD USD USD USD Budget Amount USD Niger 8,950,000 370,616 79,384 450,000 5% 0 Nile 20,850,000 17,301,247 548,753 17,850,000 86% 3,000,000 Volta 3,950,000 845,496 104,504 950,000 24% 0 Zambezi 11,900,000 7,074,267 825,733 7,900,000 66% 0 Orange-Senqu 2,175,000 2,165,811 9,189 2,175,000 100% 0 SADC 2,300,000 2,209,905 90,095 2,300,000 100% 0 ECOWAS 1,200,000 1,174,217 25,783 1,200,000 100% 0 Lake Chad/Sahel 1,000,000 950,133 49,867 1,000,000 100% 0 Okavango 800,000 0 0 0 0% 0 Catalytic -Africa 2,470,358 565,753 844,605 1,410,358 57% 0 wide PMU 4,270,103 3,013,357 1,256,746 4,270,103 100% 0 Total 59,865,461 35,670,802 3,834,659 39,505,461 66% 0 60 CIWA ANNUAL REPORT 2014 TABLE 9: Fund Balance Fund Income vs Disbursement & Commitment and Balance US$ Total Deposits 26,505,377 Plus current investment interest income 160,543 Total Income 26,665,920 Less disbursements (CIWA projects/activities) –3,834,659 Less administrative fee accrual of 2% of deposits –530,108 Balance 22,301,154 Less current commitments –35,670,802 Total Balance (when including commitments) –13,369,648 launch in 2011, CIWA has focused on building a strong high quality in its interventions and has met its basin pipeline of projects and programs that contribute to the and program level output and outcome targets, thereby program objectives. This effort has required time and achieving a good return on the financial support pro- effort and CIWA recognizes that rational disbursement vided by development partners. follows a grounded, well-developed portfolio. This is not CIWA’s positioning within the World Bank is crucial uncommon in an MDTF program like CIWA, and similar to achieving economy, and to leveraging technical and initial start-up periods have occurred in other programs, financial support in a way that has a multiplier effect on such as the NBTF and SAWI in the context of the inter- efficiency and effectiveness. This has been accomplished national waters program. in the following ways: By the end of June 2014, CIWA had a total income • By tapping into the World Bank’s experience and of US$26.7 million (US$26.5 million from payments expertise in managing trust funds, thereby streamlin- received from CIWA donors plus US$0.2 million of ing administration costs; investment income from the CIWA account). Total • By leveraging the strong technical expertise of Bank disbursements were US$4.4 million (US$3.83 million staff across a wide range of relevant sectors; from projects and US$0.53 million from administrative fees). Grant commitments totaled US$35.7 million. Table • By drawing on the Bank’s longstanding experience in 9 presents the balance available in the CIWA account international water cooperation through other medi- which is approximately US$22.3 million and negative ums such as the NBTF, SAWI, WPP, among others; balance of US$-13.4 million when grant commitments • By tapping into the Bank’s deep partnerships with are included. global collaborators to leverage regional experience and networks; • By leveraging additional sources of financing, Value for Money (VfM) such as from the NBTF (US$18.8 million), GEF (US$15.4 million), for CIWA-supported projects; The CIWA program design and delivery prominently the African Water Resources Management Initiative incorporates Value for Money (VfM) principles—econ- (US$46,212), and additional World Bank resources omy, efficiency and effectiveness. VfM is valuable not (US$0.5 million) supported the start-up of CIWA. only for minimizing costs but also for maximizing the • By leveraging multiple sources of follow-up financing impact of CIWA resources in order to achieve overall such as IDA, African Development Bank, and other program objectives. Guided by its cost-saving measures investors for projects where CIWA supports bankable in program management and administration, as well project preparation. as in project preparation and supervision, CIWA oper- ates within its financial targets. CIWA has not only Annex 5 contains additional reporting on the Value successfully kept costs down, but has also maintained for Money of the program. SECTION 5: FINANCIAL OVERVIEW 61 management and monitoring systems put in place at Financial Summary of Program program inception. Management CIWA management costs include expenses incurred by Future Funding Requirements the Program Management Unit (PMU) and the Bank’s technical experts who provide strategic advice and sup- Demand for the CIWA program from potential recipi- port to the overall CIWA program. In addition to staff ent organizations has exceeded the program’s current and consultant costs, this category encompasses costs resources. At present, CIWA has allocated most of its associated with CIWA donor coordination, outreach and available funding and has provisional plans for an communications, monitoring and evaluation, reporting, anticipated FY15 pledge that will bring the program’s partnership meetings, and dissemination activities (web- total funding envelop to US$78 million. The program has site, brochure, publications, and so forth). identified a pipeline of potential projects that will exceed The CIWA Administration Agreement establishes that the projected 10-year funding envelope of US$200 mil- PMU costs should not exceed six percent of total donor lion. Demand is high from current recipient-partners contributions. From the beginning of the program, CIWA who would like to expand their current engagements. has spent less than two percent of the current envelope, Demand from catalytic partners and other basins is which is well within the agreed-upon range. increasing. CIWA will explore these future opportunities Overall, the program has been very cost-efficient in parallel to its efforts to identify additional sources of SECTION 5: FINANCIAL OVERVIEW in its management, benefiting from the solid financial funding. 62 CIWA ANNUAL REPORT 2014 6  63 SEC TION 6 SECTION 6: TOWARDS SUSTAINABLE CLIMATE RESILIENT GROWTH: FY15 AND BEYOND TOWARDS SUSTAINABLE CLIMATE RESILIENT GROWTH: FY15 AND BEYOND A s this report demonstrates, CIWA has a robust portfolio of engagements and projects across Africa. Many projects are under implementation and are contribution will bring the total funding envelope to approximately US$78 million. Although new engage- ments and projects are subject to endorsement, CIWA beginning to demonstrate results. A significant pipeline has begun to plan funding allocations with the addi- of projects and engagements are under development and tional financing and it anticipates expanding ongoing are expected to be under implementation in FY15. CIWA work in the Nile basin, promoting cooperation around undertook a serious effort in FY14 to plan a coordi- critical needs in the Sahel and advancing important cata- nated, strategic approach to addressing demands and lytic work with a likely focus on the food-water-energy needs in West Africa, including hosting a CG meeting nexus. focused on West Africa and Central Africa (described in In the coming year, CIWA will be near the mid-point Section 3), initiating and advancing engagement with of its planned 10-year lifetime, which provides a good the Niger basin, and moving the engagements in the opportunity to review the program and identify any Volta basin and with ECOWAS towards implementation priority areas that should be addressed as the program and initiating procurement activities. In addition, the advances. CIWA will plan and initiate the MTR during Catalytic Sub-Program’s design was completed this year FY15 to ensure that the program is as relevant, efficient, and many opportunistic, knowledge management and and effective as possible. capacity building activities are also under implementa- tion. Meaningful progress on analytical work to inform cooperative efforts is expected in FY15. Planning for the Mid-Term Review In FY15, CIWA anticipates that the majority of funding pledged will be committed to specific projects CIWA plans to undertake its MTR during FY15. The MTR and programs that are under implementation, further will follow standard internal review processes employed advancing disbursements. However, riparians, RBOs by organizations such as the World Bank Group and the and RECs continue to express demand for new and United Nations for international development programs expanded engagement with CIWA. The program is such as CIWA. Planning for the MTR is underway and actively engaged in fund-raising efforts to address needs the scope of the review, including the main topics that across Africa. The EC, in the context of the EU “Global will be considered in the review and the process that Public Goods and Challenges” thematic programme and will be undertaken for the review, will be established the 2015 Action Programme, intends to pursue a likely by the end of the calendar year. Currently, the program contribution to CIWA with a budget of €5 million. This anticipates that the MTR will assess the degree to which 64 CIWA ANNUAL REPORT 2014 CIWA is “fit for purpose” in meeting its objectives b. Consultations and workshops with relevant stake- moving forward. The MTR will evaluate the program’s holders from CIWA’s governance structure, core progress towards reaching its goals and will explore the team, project teams and clients, and different components of the program’s structure from c. Triangulation of qualitative findings through quanti- the standpoint of their efficiency, relevance and effec- tative analysis of the results of CIWA-funded projects, tiveness. In addition, the review will likely consider impact assessments and review of relevant project if and how CIWA is playing a strategic role in helping documentation Africans to meet their water resources management and development needs. Experts in the field of international The MTR will take place over the course of the water resources will support the MTR process, provid- upcoming year and is expected to generate recommenda- ing important and strategic guidance for CIWA moving tions for priority reforms. Recommendations could be forward. geared towards improved program planning, execution Notionally, the MTR activities will include: and monitoring. a. A comprehensive document review that incorporates strategic documentation, project documentation, reports and reviews, SECTION 6: TOWARDS SUSTAINABLE CLIMATE RESILIENT GROWTH: FY15 AND BEYOND 65 SECTION 6: TOWARDS SUSTAINABLE CLIMATE RESILIENT GROWTH: FY15 AND BEYOND 66 CIWA ANNUAL REPORT 2014  67 ANNE X 1 CIWA’S PERFORMANCE MANAGEMENT FRAMEWORK1 IMPACT: Strengthen sustainable climate-resilient growth in Sub-Saharan Africa Indicator Target FY122 Target FY13 Target FY14 Target FY15 Target FY16 Target 2020 ANNEX 1: CIWA’S PERFORMANCE MANAGEMENT FRAMEWORK1 Program Development Objective: to strengthen cooperative management and development of international waters in Sub-Saharan Africa to aid sustainable climate resilient growth. i) US$ financ- $2 billion (value of $4 billion (value of $6 billion (value of $8 billion (value of $8 billion (value of US$10 billion ing mobilized potential projects potential projects potential projects potential projects potential projects mobilized for for cooperative influenced by influenced by influenced by influenced by influenced by cooperative management and CIWA) CIWA) CIWA) CIWA) CIWA) management and development of FY12 FY13 FY14 development international water Achievement: Achievement: Achievement: international resources projects $2.5 billion of $4.02 billion of $7.8 billion of waters projects supported by potential invest- potential invest- potential invest- CIWA ment influenced ment influenced ment influenced Baseline: $0 billion (value of projects influenced by CIWA) ii) Number of 3 million (potential 6 million (potential 8 million (potential 10 million 15 million 50 million people people directly direct beneficiaries direct beneficiaries direct beneficiaries (potential direct (potential direct directly benefiting benefiting from of projects influ- of projects influ- of projects influ- beneficiaries of beneficiaries of from improved improved water enced by CIWA) enced by CIWA) enced by CIWA) projects influenced projects influenced water resources resources manage- FY12 FY13 FY14 by CIWA) by CIWA) management and ment and develop- Achievement: Achievement: Achievement: development ment in target 6 million potential 13.2 million 46 million projects basins through direct beneficiaries potential direct potential direct projects supported beneficiaries beneficiaries by CIWA Baseline: 0 people directly benefiting Intermediate Result 1. Regional cooperation and integration strengthened i) Number of rel- 2 project i. a) 3 basins with i. a) 4 basins or i. a) 4 basins or i. a) 4 basins or 8 transboundary evant transbound- design outlines programs and RECs with programs RECs with pro- RECs with pro- institutions in at ary institutions completed for CSPs designed and CSPs designed grams and CSPs grams and CSPs least 5 basins strengthened to projects that aim FY13 FY14 Achievement: designed designed have strength- improve regional to strengthen Achievement: 3 4 basins with i. b) 6 relevant i. b) 6 relevant ened regional cooperation regional coop- basins with pro- programs and CSPs institutions with institutions with cooperation and Baseline: 0 institu- eration and grams and CSPs designed projects or activi- projects or activi- integration tions strengthened integration designed ties in operation ties in operation 10 strategic i. b) 5 relevant ii) Number of FY12 i. b) 3 basin institu- institutions with ii) 4 strategic analy- ii) 5 strategic analy- analyses used strategic analyses Achievement: 2 tions with projects projects or activities ses conducted ses conducted to illustrate the and knowledge relevant project in operation in operation evidence base for products used design outlines that contribute cooperation completed FY14 Achievement: to illustrate the to strengthen- 5 relevant institu- evidence base ing regional tions with projects for coopera- cooperation and in operation tion, needs, and integration challenges ii) 3 strategic analy- FY13 ses conducted Baseline:0 Achievement: 3 strategic analyses basin institutions FY14 target partially conducted by have contribut- met: Many strategic CIWA ing projects in analyses are operation underway, none are complete. (continued) 1 For additional information regarding CIWA’s Results Framework, indicators, targets, data sources and terminology used, please see the document titled CIWA’s Results Framework and Monitoring on the CIWA website. 2 Note that targets for all indicators are cumulative 68 CIWA ANNUAL REPORT 2014 Indicator Target FY122 Target FY13 Target FY14 Target FY15 Target FY16 Target 2020 Intermediate Result 2. Water resources management strengthened i) Number of rel- 2 project i. a) 3 basins with i. b) 4 relevant i. b) 5 relevant i. b) 5 relevant 5 institutions in evant transbound- design outlines programs and CSPs institutions with institutions with institutions with at least 4 basins ary institutions completed for designed projects in opera- projects in opera- projects in opera- using improved using improved projects that aim FY13 Achievement: tion that improve tion that improve tion that improve analytic tools, analytical tools, to strengthen 3 basins with water and climate water and climate water and climate knowledge knowledge water resources programs and CSPs risk management risk management risk management products, data, products, data, management designed and/or invest- and/or invest- and/or invest- forecasting, and/ forecasting, and/ FY12 ment operation ment operation ment operation or capacity for or capacity for i. b) 3 basin institu- coordination coordination coordination improved water Achievement: 2 tions with projects improved water relevant project FY14 and climate risk and climate risk in operation that management or design outlines contribute to Achievement: 5 management or completed relevant institu- investment opera- investment opera- strengthening tion coordination water resources tions have projects tion coordination in operation that management Baseline: 0 institu- contribute to tions using tools, FY13 Achievement: strengthening data and capacity 3 basin institutions water resources improved with have contribut- management CIWA support ing projects in operation Intermediate Result 3. Water resources development strengthened i) Number of invest- 2 project 2 basin institutions i) 2 investment i) 4 investment i) 6 investment i) 10 investment ment opportunities design outlines with projects in opportunities with opportunities with opportunities with opportunities with with regional ben- completed for operation regional benefits regional benefits regional benefits regional benefits efits that have been projects that aim FY13 influenced by proj- influenced by proj- influenced by proj- that have been advanced through to strengthen Achievement: 2 ects in operation ects in operation ects in operation. advanced through CIWA support water resources basin institutions FY14 Achievement: ii) 3 institutions ii) 4 institutions CIWA support Baseline: 0 invest- development have contribut- Multiple investment with projects with projects ii) 5 relevant ment opportuni- FY12 ing projects in projects are being in operation in operation transboundary ties with regional Achievement: 2 operation advanced by proj- that improve that improve institutions with benefits advanced relevant project ects in operation. the approach to the approach to an improved by CIWA design outlines ii) 2 institutions with sustainable invest- sustainable invest- approach to ii) Number of rel- completed projects in opera- ment planning and ment planning and sustainable invest- evant transbound- tion that improve bankable invest- bankable invest- ment planning and ary institutions the approach to ment preparation ment preparation bankable invest- with an improved sustainable invest- ment preparation approach to sustain- ment planning and able investment bankable invest- planning and bank- ment preparation able investment FY14 Achievement: preparation3 2 institutions have Baseline: 0 basins relevant projects in supported by CIWA operation Intermediate Result 4. Stakeholder engagement and coordination strengthened i) Number of 2 project i.a) 3 basins with i.b) 3 basins with i.b) 4 basins with i.b) 4 basins with 5 basins with basins with design outlines programs and projects or activities projects or activi- projects or activi- improved engage- improved engage- completed for CSPs designed in operation; 30 ties in operation; ties in operation; ment with civil ment with civil projects that aim FY13 percent of which 50 percent of 50 percent of society, private society, private to strengthen Achievement: 3 include organiza- which include which include sector and aca- sector and aca- stakeholder basins with pro- tions representing organizations rep- organizations rep- demia; 60 percent demia; percent- engagement and grams and CSPs interests of women resenting interests resenting interests with improved age of basins coordination designed and/or the poor of women and/or of women and/or engagement of with improved FY12 FY14 Achievement: the poor the poor women and/or the engagement of i.b) 3 basin institu- poor Achievement: 2 tions with projects 4 basin institutions ii) 2 basins with ii) 3 basins with organizations relevant project have projects in increased informa- increased informa- 5 basins with representing the in operation design outlines that contribute operation that con- tion in the public tion in the public increased informa- interests of women completed tribute to strength- domain domain tion in the public and/or the poor to strengthen- ing stakeholder ening stakeholder domain Baseline: 0 basins engagement and engagement; only with improved coordination 25% of which have engagement an explicit linkage FY13 with organizations ii) Number of Achievement: 3 basins with representing the basin institutions interests of women increased water have contribut- resources man- ing projects in ii) 1 basin with agement and operation increased informa- development tion in the public information in the domain public domain FY14 Achievement: Baseline: 0 basins 1 basin has increased information in the public domain 3 Sustainable investment preparation includes consideration of poverty, gender, long-term climate change among other social and environmental considerations  69 ANNE X 2 DEMAND FOR CIWA ENGAGEMENT Organizations Requesting Basin/Region Engagement Countries Nile Nile Basin Initiative Burundi, Democratic Republic of Congo, Egypt, Nile Basin Discourse Eritrea (observer), Ethiopia, Kenya, Rwanda, South Lake Victoria Basin Commission Sudan, Sudan, Tanzania, Uganda Incomati-Maputo Progressive Realization of the Inco- Mozambique, South Africa, Swaziland Maputo Agreement Lake Chad Lake Chad Basin Commission (LCBC) Cameroon, Central African Republic, Chad, Libya, Niger, Nigeria, Sudan (observer) ANNEX 2: DEMAND FOR CIWA ENGAGEMENT Niger Niger Basin Authority (NBA) Benin, Burkina Faso, Cameroon, Chad, Côte d’Ivoire, Guinea, Mali, Niger, Nigeria Okavango Okavango River Basin Water Angola, Botswana, Namibia Commission Orange–Senqu Government of Botswana Botswana, Lesotho, Namibia, South Africa (Namibia International Waters Unit (on behalf of is member of ORASECOM, but an observer to the Lesotho and South Africa) MoU governing the study) Southern Africa aquifers The Southern African Development Angola, Botswana, Democratic Republic of Community (SADC) through the Congo, Lesotho, Madagascar, Malawi, Mauritius, SADC Groundwater Management Mozambique, Namibia, Seychelles, South Africa, Institute Swaziland, Tanzania, Zambia, Zimbabwe Volta Volta Basin Authority (VBA) Benin, Burkina Faso, Côte d’Ivoire, Ghana, Mali, Togo West Africa ECOWAS ECOWAS Member States Zambezi Zambezi Watercourse Commission Angola, Botswana, Malawi, Mozambique, Namibia, (ZAMCOM) Tanzania, Zambia, Zimbabwe Zambezi River Authority (ZRA) Zambia and Zimbabwe Knowledge Management and CIWA’s CG, African Network Africa-wide Capacity Building of Basin Organizations (ANBO), World Bank teams 70 CIWA ANNUAL REPORT 2014  71 ANNE X 3 RECIPIENT PARTNERS T his annex provides background information on recipient partners for all of CIWA’s projects which are recipient executed and are in operation. The descrip- sustainable socio-economic development through the equitable utilization of, and benefit from, the common Nile basin water resources.” The NBI has three centers: tion below provides a link to the Partner’s website for • The Nile Secretariat in Entebbe, Uganda; additional information. • The Nile Equatorial Lakes Subsidiary Action Program Niger Basin Authority (NBA). The Niger Basin Coordination Unit (NELSAP) in Kigali, Rwanda; and Authority (NBA) is the regional RBO with the man- • The Eastern Nile Technical Regional Office (ENTRO) date to promote cooperation among the nine member in Addis Ababa, Ethiopia. countries in developing and managing the Basin’s water Partner’s Website: http://www.nilebasin.org/ ANNEX 3: RECIPIENT PARTNERS resources. The NBA emerged from the now-defunct Niger River Commission (NRC) in 1980. The “Shared Nile Basin Discourse (NBD). The NBD is a civil society Vision Process,” was started in 2002 and the NBA has network with more than 800 member organizations that made significant progress in more firmly establish- raises awareness among civil society actors on Nile basin ing the role of the NBA since it began building on this development programs and promotes a culture of “One initiative. Examples include: the SDAP, approved in Nile, One Family.” The NBD was established in 2002 to July 2007, Appendix 1); a 20-year $8 billion Investment strengthen civil society participation in NBI develop- Program (approved in April 2008); and the Water Charter mental processes and programs. It builds civil society (approved in April 2008). The NBA’s current investment capacity to contribute to social and climate resilience of program encompasses a broad-based mix of large scale riparian communities, and informs the design, imple- transboundary infrastructure investments (Fomi dam mentation and monitoring of Nile basin policies and in Guinea, Kandadji dam in Niger and Taoussa dam in programs. It is managed by a regional Secretariat based Mali1), small scale infrastructure investments in all 9 in Entebbe, Uganda, with national level forums in each countries (rehabilitation and valorization of small dams, of the eleven riparian states. development of lowlands, agroforestry); ecosystem NBD’s extensive ground presence in riparian commu- protection (regulatory systems, information tools includ- nities makes it uniquely placed to link higher-level Nile ing modeling of low flows, and investments in erosion cooperation processes and projects with local commu- and siltation control); and institutional capacity building nity perspectives and needs. NBD channels community- (legal systems and tools, strengthening the NBA hydro- based voices to ensure broad stakeholder engagement logical observatory and sub-basin committees; and basin and coordination in Nile basin programs and processes stakeholder mobilization). for a sustainable and equitable climate-resilient growth. Partner Website: www.abn.ne Partner’s Website: http://www.nilebasindiscourse.org/ Nile Basin Initiative (NBI). The NBI is an inter-gov- Southern Africa Development Community (SADC). ernmental organization dedicated to the equitable and The SADC Secretariat is mandated to carry out the stra- sustainable management and development of the shared tegic planning and management of SADC Programmes water resources of the Nile Basin. The NBI was estab- for the coordination and harmonization of policies and lished in 1999 by the Ministers of Water Affairs of each strategies in Member States (SADC Treaty 1992, Article member country declaring a Shared Vision “to achieve 14).The institutional mechanisms and functions for the implementation of the Protocol were established in the 1 Kandadji dam is the most advanced, and is the only one currently under construction. 2000 Revised Protocol on Shared Watercourses. In the 72 CIWA ANNUAL REPORT 2014 SADC Secretariat in Gaborone, Botswana, the Directorate bilateral arrangements among some of the member for Infrastructure and Services includes a ‘Water States. The VBA would benefit from institutional Division’ that provides strategic guidance and manage- strengthening which would help riparians establish the ment of implementation of water-related projects. The legal, fiduciary, and procedural foundations needed to vision of the SADC Water Division is “to attain the sus- confront the challenges facing the larger basin context. tainably, integrated planning, development, utilization and management of water resources that contribute to Zambezi Watercourse Commission (ZAMCOM). The the attainment of SADC’s overall objectives of an inte- ZAMCOM was established “to promote the equitable grated regional economy on the basis of balance, equity and reasonable utilization of the water resources of and mutual benefits for all member States.” For many the Zambezi Watercourse, as well as the efficient man- projects, the SADC Water Division chooses to achieve agement and sustainable development thereof.” The its vision and implement operational project activities Agreement was signed on July 13, 2004, by seven of by applying the subsidiarity principle (agreed upon by the eight riparian states—Angola, Botswana, Malawi, the SADC Council of Ministers in 2004). This principle Mozambique, Namibia, the United Republic of Tanzania, aims to promote cost-effectiveness and sustainability and Zimbabwe—and came into force on June 26, 2011, of activities that promote implementation of the SADC after six of the eight riparian countries completed their Treaty and SADC Protocols (including the 2000 Revised ratification processes. Zambia acceded to the agreement Protocol on Shared Watercourses), and applies to the in July 2013 while Malawi, which signed on July 13, CIWA-supported project for sustainable groundwater 2004, has not yet ratified it. The riparian states estab- management in SADC Member States. This project also lished an Interim ZAMCOM Secretariat in May 2011. enables implementation of the SADC Regional Strategic The Interim Secretariat is hosted by the Government of Action Plan’s programme on groundwater (programme Botswana in Gaborone and is working with the riparian number 11, SADC RSAP III 2011-2015). states to operationalize the ZAMCOM Agreement and ZAMCOM Work Plan. The Permanent Secretary is now Partner’s Website: http://www.sadc.int/sadc- established in January 2014 in Harare, Zimbabwe. All of secretariat/directorates/office-deputy-executive- the major organs of the organizations are now functional secretary-regional-integration/infrastructure-services/ and the Executive Secretary has been appointed. sadc-water-sector/ Partner’s Website: http://www.zambezicommission .org/about.php Volta Basin Authority (VBA). An Executive Directorate in collaboration with the six National Focal Points of the Zambezi River Authority (ZRA). The ZRA was estab- riparian countries and their supporting staff comprise lished in 1987 through legislation that established joint the VBA, the implementing agency for CIWA-supported ownership by the governments of Zambia and Zimbabwe projects in the Volta basin. The VBA came into force as in equal proportions. The ZRA is governed by a Council a result of a regional Convention for its establishment, of Ministers consisting of four members, including the which was held August 14, 2009. A notable outcome of Ministers holding portfolios of energy and finance in this Convention was the commitment voiced by ripar- each country. The primary functions of the Authority are ian countries to engage in sustainable development and to operate, monitor, and maintain the Kariba Complex; to enhance coordination and information-sharing with identify, and with the approval of the council, are to respect to shared water resources. Notwithstanding construct, operate, monitor, and maintain any other this important first step, the riparian States have come dams on the Zambezi River; to provide liaison with to realize that cooperation in the Volta basin is still in the National Electricity Undertakings in activities that its infancy and needs to be supported by commitment, affect the generation and transmission of electricity; trust, and political will. In addition, evidence-based and to make recommendations to the Council to ensure assessments are needed to strengthen riparian commit- the effective and efficient use of the waters and other ment by demonstrating that regional cooperation offers resources of the Zambezi River. lasting and tangible development benefits. The VBA also faces the challenge of having to build on existing Partner’s Website: http://www.zaraho.org.zm/  73 ANNE X 4 CIWA’S RISK ANALYSIS FRAMEWORK T he overall risk level of CIWA is Medium to High. This program level risk rating is informed by the varying levels of risk within the program. program level risk analysis is informed by the many risks in various basins, individual basin and project-specific risk analyses and associated mitigation measures are At the impact level, the risk is high. This is a result not detailed in this matrix. However, they are included of political risks, both regional and national, that influ- in basin and project-specific documentation. All Bank ence the ability to sustain deep, long term cooperation programs and projects require an assessment during the and effective transboundary water management. project approval process of operational risk and mitiga- The risk at the outcome level is medium to high. tion measures, along with appropriate documentation. This reflects the mix of low to medium risks at the out- Once a recipient-executed project is operational, the put level, and the need for a combination of political as World Bank conducts significant technical and financial well as technical progress to achieve desired outcomes. oversight, including consideration of how risks, after ANNEX 4: CIWA’S RISK ANALYSIS FRAMEWORK Technical progress is generally low risk, but sustaining being initially identified, then affect implementation. technical achievements amidst favorable political prog- When a project is being evaluated for restructuring ress (for example, negotiations and effective coopera- or additional financing, the project team re-considers tion) is higher risk. While political risks are generally operational risks and incorporates any new risk miti- outside the control of the program, the World Bank is gation measures that are required. In addition, for the strengthening the role of political economy analyses CIWA program, each basin program is guided by the in the design and management of CIWA’s engagement BAC which, in its annual meetings, reviews progress in with specific basins and diversifying its portfolio across program implementation, evaluates basin-level risks, and Africa, which will strengthen the effectiveness of the identifies strategic responses. overall program. In addition, this risk rating includes the Recognizing the dynamic nature of risks and the fact that CIWA may not reach its funding envelope target need to actively manage them throughout the course of of $200 million dollars. the program, CIWA continuously evaluates risks and mit- This document presents a matrix with key risks igation measures, as well as the acceptability of residual identified at the program level as well as corresponding risk, and updates the risk matrix on an annual basis. mitigation actions that have been applied. While this 74 CIWA ANNUAL REPORT 2014 Probability/ Probability/ Impact before Impact after Risk description mitigation Mitigation applied mitigation Political & Developmental Risks 1. Challenging political context Probability: CIWA has diversified its portfolio in terms Probability: All work in international waters has an High of both geography (programs in East, Medium inherent risk that domestic or international Impact: High West, Central, and Southern Africa), Impact: political issues (either related or unrelated and in terms of type of work (focus on Medium to water issues) may negatively impact the strengthening information, institutions, context in which such projects operate, and infrastructure). While the political resulting in long-term delay or even failure context may be challenging for one type of specific projects which could impact of work in a particular region, it may be the success of the program. This risk is less so for another type in another region. often beyond the scope or the influence Portfolio diversification helps mitigate of CIWA or of the partner organizations political risks at the program level. (RBO, REC, NGO, or of other regional organizations) In addition, political economy issues are considered whenever possible in CIWA program planning. Basin programs in the Nile and Zambezi are informed by corresponding political economy analyses (PEA), which help to better understand risks, formulate mitigation strategies that enable effective program implementation, and design projects within an acceptable risk appetite. To further mainstream the use of PEA in informing its work, CIWA has commissioned the development of a PEA Framework that it will apply to basins in which it engages to understand basin- specific risks and on that basis to then formulate engagement strategies. 2. Insufficient basin-wide commitment Some Probability: Confidence building measures will be Probability: Low countries within a basin may not have Medium necessary to ensure that progress is Impact: Low formal membership in the participating achieved. While it is recognized that it Impact: basin organizations and/or may challenge will not always be possible to have all Medium the basin organization’s engagement with riparians formally committing, CIWA CIWA. provides an inclusive platform in the form of the BAC where it encourages participation of—and provides an open invitation to all relevant stakeholders to identify—the long-term action plan for CIWA engagement in a way that responds to the needs of the basin and is aligned with regional and national priorities as well as other development interventions in the basin. In addition, for all applicable projects, CIWA follows the World Bank Safeguards Policy on international waters OP 7.5 which, in the absence of appropriate agreements or arrangements for the entire waterway, or parts thereof, requires the beneficiary state to formally notify other riparians of the proposed project. The Policy lays down detailed procedures for the notification requirement, including the role of the Bank in the notification, period of reply and the procedures to follow in case there is an objection by one of the riparians to the project. ANNEX 4: CIWA’S RISK ANALYSIS FRAMEWORK 75 Probability/ Probability/ Impact before Impact after Risk description mitigation Mitigation applied mitigation 3. Inadequate stakeholder voice Probability: Low The program prioritizes the involvement Probability: Low Stakeholders may not fully engage in the of stakeholders and indeed, one Impact: Impact: project cycle resulting in them having of CIWA’s four result areas aims to Medium Medium an inadequate voice in decision-making, strengthen stakeholder engagement raising the potential of public protest or in water resources management and civil action that could jeopardize or delay development. CIWA emphasizes development projects. the creation of a favorable upstream environment for development projects and in many cases facilitates bringing stakeholders into the dialogue and sharing information in the public domain, thereby mitigating risk of resistance. Moreover, CIWA-supported basin programs convene all relevant stakeholders in the annual meeting of the BAC, which shapes CIWA’s long term strategy in the basin, and shares information and gathers feedback on project cycle details. Operational Risks 4. Inadequate coordination between Probability: CIWA works to encourage and motivate Probability: Low participating basin organizations Medium strong cooperative working relationships. Impact: A CSP is developed for all basins or ANNEX 4: CIWA’S RISK ANALYSIS FRAMEWORK If participating basin organizations have Impact: Medium regions in which CIWA has a long term mutually inconsistent objectives, this Medium engagement and captures how CIWA may weaken the overall development projects will integrate with the broader effectiveness of CIWA’s program. objectives of each of the organizations. A CIWA BAC comprised of wide basin-level membership coordinates all the projects to be undertaken within the CSP. 5. Inadequate implementation capacity and Probability: During project development, Bank Probability: readiness can cause short to medium- High experts assess implementation Medium term delay capacity and readiness of the recipient Impact: Impact: Low Some basin organizations may have Medium organization and plan the magnitude insufficient capacity or experience to and complexity of CIWA’s engagement effectively engage in basin management accordingly. The Bank may provide and development, causing delays in support for financial management, project implementation which could affect procurement, and project management. the overall pace of the program achieving Project supported capacity enhancement its objectives. might also be a contingency for project approval, for example, a project may be conditioned on the hiring of an environmental and social expert to provide safeguards support. Many projects address this risk by designating an institutional support and capacity building component that addresses this risk. In addition, CIWA can employ Bank-executed programming as an initial financing modality to strengthen recipient implementation capacity and readiness. (continued) 76 CIWA ANNUAL REPORT 2014 Probability/ Probability/ Impact before Impact after Risk description mitigation Mitigation applied mitigation 6. Technical complexity of international Probability: Low CIWA taps into the strong technical Probability: Low water projects can lead to long-term delay expertise of the World Bank staff while Impact: Impact: Low developing the projects with the client International water programs are Medium and also as needed in the implementation inherently complex and require stage. In addition, CIWA draws from seasoned perspective to avoid pitfalls external continental as well as global and errors that can seriously undermine experience as needed to bolster technical management and can adversely affect the capacity required for project design and progress of development projects and implementation. cause long-term delays. The CIWA Panel of Experts forms the first line of expertise that provides strategic as well as technical guidance. Additionally, through the CG, CIWA benefits from the region-specific expertise of key Africa water sector professionals. 7. Insufficient World Bank capacity to Probability: Before starting an engagement with a Probability: Low engage across an increasing number of Medium new basin, CIWA ensures that there is Impact: Low basins sufficiently strong technical capacity as Impact: well as regional experience to lead the Medium engagement within the World Bank. In most cases, previous Bank engagements will already have established a deep partnership with the region, which new CIWA engagements build upon. CIWA also mitigates this risk by collaborating closely with Bank country offices as well as by drawing on local knowledge of other partners. Transparency and good information flows between the Bank and partners will help ensure a strong partnership. In addition, CIWA made the strategic decision to focus the majority of its resources on four or five priority basins, thus reducing the need for increasing expansion of teams focused on basin work. Financial Risks 8. Available CIWA financing is insufficient to Probability: CIWA is actively working to mobilize Probability: meet demand High additional funding and requests High Insufficient financing can cause risks Impact: High development partners to facilitate fund Impact: High raising expectations of potential recipient mobilization from their position. CIWA partners. Participating donors may be will continue to update required funding slow to commit resources relative to the amounts during AC meetings, as well as demand for engagement by recipient in the CIWA Annual Report. basin organizations. CIWA conducts regular and careful management of the pipeline of potential basin programs to match demand to available resources. As expected, there is a time lag between when a donor pledges funds, to when those funds can reasonably be committed to a basin program and to when that program can spend the funds. Development partner expectations on the disbursement of funds must be managed accordingly so as not to hinder the funds mobilization process. ANNEX 4: CIWA’S RISK ANALYSIS FRAMEWORK 77 Probability/ Probability/ Impact before Impact after Risk description mitigation Mitigation applied mitigation 9. Fraud and funds not being used as Probability: Low The World Bank requires all trust fund Probability: Low intended beneficiaries and bidders to observe the Impact: High Impact: highest standard of ethics in Bank-financed Medium grants and contracts. All CIWA grants are subject to the Bank’s Anti-Corruption Guidelines,1 the Procurement2 and Consultant3 Guidelines, and the Standard Conditions for Trust Fund Grants,4 which delineate standard operating procedures for any fraud issues. The Anti-Corruption Guidelines provide for certain actions to be taken by grant recipients to prevent and combat fraud and corruption and the Standard Conditions provide for suspen- sion and/or cancellation of disbursements, as well as the refund of disbursed grant proceeds in the event that fraud and cor- ruption does occur. All recipient-executed projects are audited annually by an external auditor as speci- fied in the grant agreement. The Bank may require less frequent audits for small grants while retaining the right to request an audit ANNEX 4: CIWA’S RISK ANALYSIS FRAMEWORK as needed. Contributing development part- ners agreed to amend the Administrative Agreement with the World Bank to include both a management fee and enhanced supervision which will facilitate this process. Any audits that highlight issues will be raised and discussed with the CIWA AC. Sustainability Risk 10. CIWA support for investments in institu- Probability: CIWA is demand driven and responds Probability: tions, information systems and/or infra- Medium to the requests of riparians and their Medium structure is not sustained or advanced by organizations. Impact: Impact: riparians Medium CIWA also maintains a diversified portfo- Medium CIWA operates upstream of actual invest- lio and continued dialogue with important ment and has limited control over country actors that influence investment in Africa. uptake, investment plans or sustained CIWA and the World Bank are funding support for institutions. This risk becomes analytical work to help decision makers even more relevant as financiers other better understand the role of emerging than the World Bank, with more flexible donors in investment in water resources in preparation standards, play an increasingly the basins in which it operates in order to prominent role in financing infrastructure understand how to better provide appro- in Africa. This risk builds off of other risks priate upstream support. listed in the table, for example, insufficient political will, or inadequate country buy-in) In addition, CIWA will have the oppor- but it is important to consider because it tunity to revisit and reconsider how it feeds directly into the objectives, indica- addresses this risk as part of the 2014- tors and targets by which the program will 2015 MTR. evaluate its success as delineated in its PMF. 1 Available at http://siteresources.worldbank.org/INTOFFEVASUS/Resources/WB_Anti_Corruption_Guidelines_10_2006.pdf 2 Available at http://siteresources.worldbank.org/INTPROCUREMENT/Resources/Procurement_GLs_English_Final_Jan2011_revised_July1-2014.pdf 3 Available at http://siteresources.worldbank.org/INTPROCUREMENT/Resources/Consultant_GLs_English_Final_Jan2011_Revised_July1_2014.pdf 4 Available at http://siteresources.worldbank.org/INTLAWJUSTICE/Resources/STDGC-English-12.pdf 78 CIWA ANNUAL REPORT 2014  79 ANNE X 5 VALUE FOR MONEY IN CIWA PROGRAM DESIGN AND IMPLEMENTATION • By leveraging additional sources of financing, such Summary Value for Money as from the GEF, for CIWA-supported projects Statement ANNEX 5: VALUE FOR MONEY IN CIWA PROGRAM DESIGN AND IMPLEMENTATION • By leveraging multiple sources of follow-up financing The CIWA program design and delivery prominently such as IDA, AfDB, and other investors for projects incorporates Value for Money (VfM) principles.1 Guided where CIWA supports bankable project preparation by its cost saving measures in program management and administration as well as project preparation and supervision, CIWA operates within its economy targets. What measures can be used to CIWA has not only successfully kept costs down, it has maintained a high quality in its interventions and met assess Value for Money for CIWA? its basin and program level output and outcome targets, The following measures can be used to assess CIWA’s thereby achieving a good return on the financial support economy, efficiency, and effectiveness, which together provided by development partners. characterize the program’s VfM: CIWA’s positioning within the World Bank has been crucial to achieving economy, and to leveraging techni- ECONOMY cal and financial support in a way that has a multiplier effect on efficiency and effectiveness. This has been Standard Bank Administrative Fee. Set at 2% of accomplished in the following ways: received contributions;2 this fee covers a range of general services provided by the World Bank’s Central Units— • By tapping into the World Bank’s experience and treasury, accounting, disbursements, preparation of un- expertise in managing trust funds, thereby streamlin- audited financial statements, annual audits, supervision ing administration costs of external audits, donor relations including negotiating • By leveraging strong technical expertise of Bank staff framework agreements, and so forth.3 By covering these across a wide range of relevant sectors essential services with one standard fee, CIWA limits • By drawing on the Bank’s longstanding experience in transaction costs and ensures than an enabling envi- international water cooperation through other medi- ronment is provided for the managing and disbursing ums such as the NBTF, SAWI, WPP, among others units to properly perform their responsibilities for the • By tapping into the Bank’s deep partnerships with program. global collaborators to leverage regional experience Program Management and Administration. Capped at and networks 6% of contributions to the fund, this fee covers all man- 1 CIWA evaluates its Value for Money (VfM) using DFID’s 3Es Frame- agement and administration responsibilities of the PMU work, defined in “DFID’s Approach to Value for Money,” July 2011 as: including development and implementation of program- • Economy—Are we or our agents buying inputs of the appropriate specific management tools, procedures, and systems; quality at the right price? Inputs are things such as staff, consul- tants, raw materials, and capital that are used to produce outputs. negotiating the replenishment and expansion of existing • Efficiency—How well do we or our agents convert inputs into out- puts? Outputs are results delivered by us or our agents. We or our agents exercise significant control over the quality and quantity of 2 A standard fee is applied to all contributions to World Bank trust outputs. funds based on the characteristic of the trust fund. • Effectiveness—How well are the outputs from an intervention 3 A complete list of general services covered by the Standard Bank achieving the desired outcome? Note that in contrast to outputs, Administrative Fee can be found in Annex 3 (3.1) of the Administration we or our agents do not exercise direct control over outcomes. Agreement 80 CIWA ANNUAL REPORT 2014 CIWA Contribution Partner Contribution Project (million USD) Co-financier (million USD) Nile Cooperation for Results Project 14.5 NBTF 18.8 Southern Africa Development 2.0 GEF 8.2 Community Engagement Volta River Basin Institutional 3.0 GEF 7.2 Development and Strategic Action Programme Implementation Project CIWA contribution $19.5 million Leveraged funds $34.2 million programs; soliciting and evaluating activity proposals projects on a careful assessment of estimated costs as and allocating programmatic funds to implementing well as through effective procurement processes, cost- units; work program planning; program level resource sharing and greater travel efficiencies, using video con- planning; budget planning and management; program nection for meetings where possible, convening different monitoring and evaluation; program communications CIWA meetings back-to-back where feasible and linking and outreach; donor visibility, donor coordination, and to other water sector related meetings to take advantage donor meetings; and results reporting for the program. of synergies. Enhanced Preparation and Supervision. To ensure high Leverage Ratio. CIWA improves its economy by leverag- quality program delivery, World Bank policies require ing additional sources of funding where available and ensuring that implementation of trust fund activities appropriate to projects, thereby reducing its unit cost of complies with applicable Bank policies and procedures4 inputs in relation to the overall sum of outputs it mobi- and that all recipient-executed activities are adequately lizes. CIWA uses the following metric as an indicator supervised and implemented in line with the terms and of increased economy due to leveraging of funds from conditions of the Administration and Grant Agreements additional sources: as well with Bank supervision standards and procedures. Leverage ∑Funds leveraged from additional sources Estimated at 6% of contributions to the fund, this fee ratio = for CIWA projects covers the cost of identifying and scoping possible proj- ∑CIWA contributions to cofinanced projects ects, supporting preparation and undertaking supervi- sion. As specified in the Administration Agreement, the In terms of leveraging additional funds to improve Bank will seek the CIWA Advisory Committee’s prior the economy of CIWA supported projects (by expanding approval in case enhanced supervision costs of CIWA overall output and thus reducing per unit cost of CIWA activities increase beyond the amount noted in the inputs), CIWA has established partnerships with the administration agreement, and these costs increase as a NBTF to co-finance the NCORE project and with the GEF result beyond 6%. to co-finance two projects—led by SADC on groundwater CIWA has established certain norms to maintain management and led by the Volta Basin Authority on Enhanced Supervision costs under 6% of contributions institutional strengthening and watershed management. to the fund—one-time identification and preparation cost At the close of FY14 the leverage ratio for co- of US$150,000 per project; and implementation supervi- financed projects is 1.75 co-financed dollars per CIWA sion cost of US$100,000 per year for three years over financed dollar (i.e., on average, for every dollar that the duration of a project. The CIWA norm for enhanced CIWA contributed to a co-financed project, CIWA was supervision costs are lower than standard IDA operation able to leverage additional sources of funding to provide costs. World Bank Africa Region data shows that the input of 1.75 dollars to its projects). average cost to prepare an investment project is around US$350,000 and the annual cost for supervision of a EFFICIENCY project around US$150,000. Costs for preparation and supervision of regional projects under IDA are nor- Intermediate Results Areas Indicators. CIWA focuses mally expected to be higher due to additional complex- its project-level work in four intermediate results areas. ity. CIWA achieves lower costs by basing budgets for Progress in these areas is measured using their corre- sponding indicators, as listed in the CIWA Performance 4 World Bank CFPTO Trust Fund Handbook (revised July 8, 2010) Management Framework (PMF) in Annex 1. CIWA uses ANNEX 5: VALUE FOR MONEY IN CIWA PROGRAM DESIGN AND IMPLEMENTATION 81 Potential Financing Potential Number of CIWA Contribution Mobilized Direct Beneficiaries Project (million USD) (million USD) (million) Zambezi River Basin Development 6 250 3 Project—Kariba Dam Hydropower Complex Zambezi River Basin Development 6 (counted above) 2500 6 Project - Batoka Gorge Hydroelectric Scheme Niger River Basin Management 7.5 1300 30.8 Project Nile Cooperation for Results Project 14.5 3000 4.2 Lesotho Highlands-Botswana Water 2 800 2 Transfer Project Total 30 7850 46 ANNEX 5: VALUE FOR MONEY IN CIWA PROGRAM DESIGN AND IMPLEMENTATION these indicators to measure its efficiency, i.e. its ability to surpassed its target of 8 million potential direct ben- achieve intended outputs towards its development objec- eficiaries for the same reporting period, by potentially tive. These indicators reflect the short and medium-term benefitting an estimated 46 million potential direct benefits generated by CIWA support. In FY14, CIWA fully beneficiaries. met its targets for most of its indicators in the four IR areas. More detail on results reporting can be found in Potential Mobilization Ratio & Potential Beneficiaries Section 4 of this report. Ratio. CIWA further uses the following two metrics to The indicators found in CIWA’s PMF, however, do measure its effectiveness in using its available resources not fully capture secondary and tertiary benefits of to achieve target outcomes: CIWA support. A transboundary institution strengthened Potential ∑Potential US$ financing mobilized by CIWA, for example, is able to facilitate a series of mobilization = by CIWA projects subsequent regional cooperation actions. A vast number ratio ∑US$ funding in operation in CIWA projects that faciliate mobilization of people receive various levels of benefits as a result of each cooperative action facilitated by the strengthened Potential ∑Potential direct beneficiaries transboundary institution. These outputs are counted beneficiaries = from CIWA projects and reported on at the basin and project level but are ratio ∑US$ funding in operation in too broad and distinct to aggregate at the program level, CIWA projects that impact beneficiaries given the nature of issues supported and the timeframe it takes for such benefits to manifest. In the long run there- At close of FY14, the average potential mobilization fore, CIWA’s actual efficiency is greater than that quanti- ration is 262 potential dollars mobilized per CIWA dollar fied through the indicators in its Results Framework. committed (i.e., on average, for every dollar that CIWA contributed, the potential financing mobilized through future development is 262 dollars). The potential ben- eficiaries ratio is 1.5 potential beneficiaries per dollar EFFECTIVENESS contributed by CIWA. PDO-level Indicators. CIWA measures its effectiveness, i.e. its ability to achieve its intended program outcomes, through its two PDO-level indicators listed in the CIWA Performance Management Framework (PMF) in Annex Commercial Improvement and Value 1; further reporting on results is included in Section 4 of for Money this report. These indicators reflect the long-term ben- CIWA maintains economy in its procurement, minimiz- efits generated through CIWA support. ing costs and ensuring high quality, by requiring that CIWA fully met its effectiveness targets in FY14. all recipient-executed activities finance goods, works, CIWA assessed the value of potential financing influ- and services in accordance with the Bank’s guidelines enced by the program at US$7.8 billion, which was on “Procurement under IBRD Loans and IDA Credits” above its target of mobilizing US$6 billion. CIWA 82 CIWA ANNUAL REPORT 2014 and the Bank’s guidelines on the “Selection and overall program impact. The most recent additional Employment of Consultants by World Bank Borrowers,” contribution has reduced the UK’s burden share from jointly referred to as the “Procurement and Consultant 33.7% in FY 13 to 22 % today, Sweden’s from 56.7% to Guidelines.”5 Similarly, for all Bank-executed CIWA 36.8%, Denmark’s from 7.2% to 4.7%, and Norway’s activities, the Bank is responsible and carries out from 1.9% to 1.2% . Alongside accelerating the pace of procurement of goods as well as employment and implementation, CIWA has maintained active fundrais- supervision of consultants in accordance with appli- ing; new development partners are considering support- cable policies and procedures. Among other things, the ing the CIWA MDTF in the near future. guidelines provide specific instructions for use of Bank documents (standard bidding documents, requests for proposals, contract forms); conflict of interest; advance Does the CIWA program still contracting; co-financing; mis-procurement; and fraud and corruption. represent Value for Money? Yes, there have been no significant changes in the approach and model of implementation set out in the Role of Development Partners business case and, coupled with the positive results at the end of FY14—CIWA met its intended PDO targets; At the end of FY13, CIWA was a program of US$ maintained Program Management & Administration 45.9 million co-funded by the UK, Denmark, Norway, Costs and Enhanced Supervision Costs under 6%; and Sweden. In December 2013, the Netherlands became showed a positive leverage ratio; improved its potential a new partner, with support amounting US$ 25 million mobilization ratio and potential beneficiary ratio in FY14 and expanding the program size to US$ 71 million. This —the CIWA program demonstrated its commitment to is welcome as the business case argued for CIWA is to the principles of economy, efficiency, and effectiveness draw in new and additional financial resources to reduce and therefore strongly represents value for money. individual partner burden share and also to expand 5 OP 11.00 in the World Bank Operational Manual, available at http:// web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXT OPMANUAL/0,,contentMDK:20064773~menuPK:4564185~pagePK:6470 9096~piPK:64709108~theSitePK:502184,00.html 1502558