33507 BANK-NETHERLANDS WATER PARTNERSHIP WATER SUPPLY & SANITATION WINDOWS PROGRESS REPORT SECOND SEMESTER, 2003 JULY 1 ­ DECEMBER 31, 2003 Bank-Netherlands Water Partnership -Water Supply and Sanitation Windows www.worldbank.org/watsan/bnwp 1818 H street NW, Washington DC 20433 USA · Bnwp@worldbank.org · tel. 1-202-4587796 BANK NETHERLANDS WATER PARTNERSHIP WATER SUPPLY AND SANITATION WINDOWS SEMI-ANNUAL PROGRESS REPORT SECOND SEMESTER, 2003 JULY 1 ­ DECEMBER 31, 2002 1. THE BANK-NETHERLANDS WATER PARTNERSHIP ­ WATER SUPPLY AND SANITATION WINDOWS The mission of the Bank-Netherlands Water Partnership (BNWP) is to improve delivery of water supply and sanitation services to the poor. The partnership enhances performance of World Bank operations in the water supply and sanitation sector and supports a broad sector reform agenda with a strong poverty focus. BNWP activities center on providing support to solve immediate problems with actual cases, testing policy and service delivery innovations, and plugging gaps in existing knowledge in the water sector as a whole. The BNWP is managed as a cohesive program based on good quality projects and activities, and is complementary to other sources of funding. BNWP projects are targeted interventions that support implementation of structural changes. A typical project fosters South-South collaboration and includes pilots in the field. All project proposals are quality-assured through peer review by reviewers chosen from within and outside the World Bank. More details on the work done by BNWP are available at www.worldbank.org/watsan/bnwp or by writing to bnwp@worldbank.org. 2. THE SEMI-ANNUAL PROGRESS REPORT 2.1 PURPOSE This Semi-Annual Progress Report outlines the progress in work of the Water Supply and Sanitation Windows of the Bank Netherlands Water Partnership during the second semester of 2003 (July 1 to December 31, 2003). The purpose of the Semi-Annual Progress Report is to: Front page photo credits: D. Sansoni/World Bank (top), C. Carnemark/World Bank (bottom) 1 · report outputs and activities of the various BNWP projects and activities · report expenditure that allows comparison with outputs · facilitate identification of links and common interests between various projects of BNWP · increase transparency of BNWP operations. 2.2 STRUCTURE OF THE SEMI-ANNUAL PROGRESS REPORT The Semi-Annual Progress Report is organized with a main text with an annex giving the detailed progress reports for each project and activity. 3. KEY DEVELOPMENTS IN THE SEMESTER During the July-December 2003 period, BNWP projects and activities remained at cruising speed. Program activity focused the consolidation and ongoing implementation of BNWP's eight flagship projects. The BNWP project portfolio was cleaned up by removing three projects, for which (i) a quality full proposal had not been delivered within a reasonable timeframe, or (ii) the initial proposal had been withdrawn. A number of smaller activities were approved and initiated, while two activities were finalized. 3.1 NEW PROJECTS AND ACTIVITIES Four new activities were started up during the semester: Consumer Cooperatives: An Alternative Institutional Model for Delivery of Urban Water Supply and Sanitation Services? (#081) ­ Identifying and assessing consumer cooperatives in various sectors, with particular emphasis on the Bolivian experience in the WSS sector. Public Reporting by Water Supply and Sanitation Utilities on Consumer-Oriented Issues (#083) ­ Reviewing existing experience in, and developing a framework for, consumer- oriented performance reporting for the water sector. Study Tour from Lima Water Utility (SEDAPAL) to Brazil on Peri-Urban Condominial Water and Sewerage Systems (#084) - South-south knowledge exchange to facilitate sector reform and improve access to WSS services among the poor in Peru. Franchising in Water Supply and Sanitation -- Phase 2: Large Urban Settlements (#085) - Investigating the potential of franchising as a means of providing water and sanitation services in large urban settlements, using Lagos, Nigeria, as an illustration. 2 3.2 CLOSED PROJECTS AND ACTIVITIES The following projects and activities were finalized in this semester: Scaling Up Sustainable Rural Water Supply Services (#026) ­ This activity researched the conditions that further or constrain the scaling up of successful small-scale RWS initiatives. Four common challenges to scaling up successful RWS initiatives were found: resource constraints; lack of knowledge or shared understanding; resistance among key stakeholders; and untested implementation conditions. Recommendations for how to meet these challenges included case studies focusing on scalability and explorations of the policy context and organizational structure. The findings were presented at a workshop session at Water Week 2003 and in the discussion paper Taking Sustainable Rural Water Supply Services to Scale. An electronic version of the Discussion Paper is available on the BNWP website at www.worldbank.org/watsan/bnwp. Development of an African Sanitation and Hygiene Strategy (#054) - Eight ministers and more than 100 professionals participated in the conference organized under this activity. It was the first such conference dedicated exclusively to sanitation and hygiene and became a great success in terms of generating debate, discussion, and enthusiasm for the topic of sanitation in Africa. Timed as it was before the World Summit on Sustainable Development, (WSSD) in Johannesburg, the conference greatly contributed to the "atmospherics" leading to what many have described as the one practical outcome of the Johannesburg summit: the commitment to a "Sanitation Millennium Development Goal (MDG)." The WSSD, endorsed by the UN General Assembly, made the specific commitment to halve the fraction without access to basic sanitation by 2015. The final conference declaration can be found on the BNWP website at: www.worldbank.org/watsan/bnwp. 3.3 EVENTS During the period, the BNWP sponsored the following events: · Global Technical Handwashing Workshop (BNWP #008) in Lima, Peru, November 17-21, 2003. The workshop was attended by more than 30 participants, including public and private sector representatives from four country programs (Peru, Ghana, Senegal, and Indonesia) as well as the project's global steering committee. The event succeeded in (a) advancing and improving the design of programs in the four countries; (b) generating global lessons for an upcoming PPP handwashing program handbook; and (c) refining the project's FY04 program to support country teams and continue global advocacy. · Workshop (BNWP #059) to present and discuss the draft annotated outline for the new Water and Sanitation Toolkit, Washington, D.C., July 2003. 3 · Regional consultant training in implementation of the analytical framework to be used in the case studies to be carried out under BNWP Project #033 (Modes of Engagement with Public Sector WSS in Developing Countries). The training was undertaken in Delft, The Netherlands, August 25-26, 2003, with the participation of ten local consultants, two representatives of IHE-Delft, and three World Bank staff. · Study tour for Peruvian officials and WSS sector professionals from Lima Water Utility (SEDAPAL) to Brazil (BWNP #084), December 6-12, 2003. Nine Peruvian officials visited three Brazilian cities with extensive experience in condominial WSS systems. The study tour was organized in response to a growing interest in Peru about the use of condominial systems to facilitate expansion of WSS services. · A workshop on Franchising in WSS in Lagos, Nigeria, December 3-4, 2003. The workshop was organized by BWNP Activity #085 Franchising in Water Supply and Sanitation -- Phase 2: Large Urban Settlements . Over forty representatives of public and private entities participated in this highly interactive two-day workshop, where it was examined whether or not the principles of franchising could provide decision-makers in Nigeria with an additional tool for transferring knowledge and best practices to the WSS industry. The activity was followed by a half-day briefing workshop in Paris, France, December 5, 2003. · BNWP Project #006 WSS Sector Reform: Building Capacity for Civil Society Engagement conducted stakeholder workshops in Zambia (August, 2003) and Senegal (November, 2003) where civil society representatives received training on tariffs, regulation, and communications. The project also hosted a synthesis drafting workshop in Lisbon, Portugal, in September 2003, with participants from Zambia, Senegal, Kenya, and Chad. Finally, the project presented an outline of the synthesis report "Models and Strategies for Consumer Engagement in Urban Water Sector Reform" to Congress participants at the at Consumers International Annual Congress in Lisbon, September 2003. · Presentation on "Water Sector Reform and the Poor" at WBI Good Governance in the Water Sector Seminar (BNWP #005), December 2003; · Workshop on Pro-Poor Subsidies for Urban Water Services (BNWP #050), Washington, D.C., November 17, 2003. · Presentation of "Market Development Study: Private Sector Participation in Europe and Central Asia" (BNWP #057) at the conference on Private Sector Participation in Municipal Water Services in Central and Eastern Europe and Central Asia held in Vienna, Austria, July 2-3, 2003. In addition, the Public-Private Partnership to Promote Handwashing with Soap (BNWP #008) provided support for the launch of the Ghana PPP to Promote Handwashing with Soap Campaign in Accra, Ghana, on September 25, 2003. Finally, BNWP provided critical input to 4 the Consultative Meeting convened by the Bank with the relevant international financial institutions ­ following up on the G8 Summit Water Action Plan ­ to discuss the greater use of risk mitigation instruments and sub-sovereign lending. The meeting demonstrated that all institutions are responding to the increasing demand for contractual/regulatory and devaluation instruments. A draft comparative review of IFI risk mitigation instruments and direct sub-sovereign lending (prepared under BNWP Activity #080; see Annex for description of activity) was discussed at the meeting. 3.4 PUBLICATIONS Publications from projects and activities included: · Can the Principles of Franchising be Used to Improve Water Supply and Sanitation Services? A Preliminary Analysis. Report prepared under BNWP #052 Franchising in Water Supply and Sanitation. The report is available on BNWP's website at www.worldbank.org/watsan/bnwp. A print version of the report will be published in early 2004 as part of the Water and Sanitation Sector Board series. · Capacity Building Kit for Civil Society Engagement in Urban Water Supply and Sanitation Sector Reform. Toolkit prepared under BNWP #006 Water Supply and Sanitation Sector Reform: Building Capacity for Civil Society Engagement. The toolkit is available on BNWP's website at www.worldbank.org/watsan/bnwp. At the program level, the BNWP management team prepared a series of Briefs providing an overview of the objectives, activities, and progress of the individual activities and projects funded by the program. The BNWP Briefs have been in high demand and will, in response, be distributed to all World Bank WSS sector staff in early 2004. Finally, a new BNWP Program brochure was prepared and published, updating the information in the previous brochure. 3.5 PROGRAM MANAGEMENT BNWP program management was ongoing. During the reporting period, a Research Assistant joined the BNWP management team. 4. OVERVIEW OF PRESENT PORTFOLIO The total value of the present portfolio of projects and activities is USD 6.7 million. This budget includes projects and activities that are approved by (the chair of) the Sector Board. In addition, pre-qualified projects under development amount to a budget of USD 710,000. The planned and actual disbursement per semester is presented in figure 1. 5 $1,600,000 $1,400,000 $1,200,000 $1,000,000 Planned $800,000 Actual $600,000 $400,000 $200,000 $- 2002-I 2002-II 2003-I 2003-II 2004-I 2004-II 2005-I 2005-II Figure 1: Planned and actual disbursement per semester. The approved budget of USD 6.7 million leverages co-financing of USD 1.8 million from other funding sources. BNWP Portfolio: Windows BNWP Portfolio: Regions Global Rural WSS Africa East Asia & Pacific Urban WSS Europe & Central Asia Financing Systems Latin America & Caribbean Sanitation and Hygiene Middle East & N. Africa South Asia Capacity-Building Figure 2: Breakdown of portfolio per window Figure 3: Breakdown of portfolio per region 6 The focus of the present portfolio is summarized in figures 2 and 3 (above). The majority of the portfolio is global or located in Africa or South Asia. This is in line with the needs for the Millennium Development Goals. BNWP-WSS sponsored initiatives are predominantly located within the rural WSS, urban WSS, and sanitation and hygiene windows. 5. FINANCIAL AND PROGRESS REPORT Table 1 gives a specification of accumulated progress as well as expenditure per window. The total expenditure in the period July 1 ­ December 31, 2003, was USD1,149,358. This constitutes 103% of the planned budget for the second semester of 2003. Having reached cruising speed during the second quarter of 2003, BNWP disbursements continued at this level during the July-December, 2003, period. The outputs achieved in the second semester of 2003 amount to 78 percent of the targets set for the semester. This number represents a weighted average of the individual project achievements, as specified in the annex. While four of five windows are performing as anticipated, the outputs achieved under the fifth window ­ WSS in Rural Areas and Small Towns ­ corresponded to only 56 percent of the targets set for the semester. The delay experienced under the WSS in Rural Areas and Small Towns window is largely attributable to a temporary delay faced in the implementation of BNWP Project #007 Follow-Up Support to Communities after Construction of Rural WSS Facilities. Window Performance Semi-Annual Expenditure (% of target) Budget (USD) USD % of budget WSS in rural areas and small towns 56% 209,900 205,511 98% Reform of urban WSS 86% 226,650 218,118 96% Dev. of sustainable financing systems 92% 211,100 262,243 124% Sanitation and Hygiene Promotion 89% 307,000 319,742 104% Capacity-building 90% 83,550 90,258 108% Program coordination N/A 75,000 53,481 71% Grand Total 78% 1,113,201 1,149,359 103% 7 6. PLANS FOR THE NEXT SIX MONTHS BNWP will continue at cruising speed in the first semester of 2004. Now firmly in the implementation phase, BNWP has geared up for extra efforts in the areas of quality assurance, capacity-building, monitoring and evaluation, and dissemination of outputs. With a substantial number of reports currently in the pipeline, a significant increase in outputs (reports, presentations, etc.) from BNWP projects and activities is anticipated during the coming six months. In response, the BNWP management team is in the process of developing a strategy for publication and dissemination of outputs. Primary components of the strategy include an integrator report distilling cutting-edge lessons from BNWP projects and activities, a WBI/BNWP capacity-building course in WSS, and a BNWP synthesis book. Implementation of the strategy will begin in the second half of 2004. 8 la e nnuA-i manc 96% m 129% 34% 101% 106% N/A 58% N/A N/A 92% Se perfor 05 04y 04y 04 04 riodep 02 03 30 04 Feb Ma Ma Jun Jun ­ ­ ­ ­ ­ Jun Jun04 Jan Dec ­ ­ ­Jan ­ 02 02 02 02 02 02- 02 02 02 02 Project Nov Nov Nov Jun Jun Feb Jun Apr Feb Jun ust sta ational ational ational ational ational ational ational Closed Closed Closed Oper Oper Oper Oper Oper Oper Oper Current sw SS & & SS SS ndoi WSS W buildingy WSS WSS WSS SS buildingy W Urban nabrU Capacit Rural gieneyH sanitation Urban Urban WlaruR gieneyH Sanitation WlaruR WSS WSS W Urban Rural nabrU Capacit edv get 780,000 000,051 180,000 000,058 350,000 40,567 000,035 591,02 43,962 000,826 pproA bud (USD) y ,y d an ke y a in private of involving engage teraw ble of ena and small as staff of to of the ch teraw increasing to industr industr to develop water su ng,iy at public rural soap Bank Asia sanitation to of context of sanitation of provision n formser consumersr sector iny capacity of soap kersa support e needed CTIVITY tio m th build idevorp decrease the BWNPP up ot ng ralt seminar city reform effective and sanitation ic of e in ockst amo Cen makers andylp w porting g ices,v identif internationals icev ne publ ser A sector effective poor are capa andy sery e fo societ truction to soap desalination -level take supy variou and policy ocess eenw and ion sector gienyh sup the scalinl pr follow-up that bet the to water descrip OR teraw rming mor civil cons thiw in quality of and of ies NGOs East highy countries.- ingzy are da improve teraw launch necessar approaches Short an leor ps, former the cilit urb Fa shipren e to plementation sector and derstanding led ents decisyc improving to e supplretaw perfor anal w mi communitiesla supplretaw on th successfu ingp thre sector service the ansactionsrt ourg pesyt after shingaw un Mid sen the ho conference for the part nd implementing the for and public ROJECT that in diseases rural the a in rural a bette and ngiy ha the in andsn respo develo PR agencies in developm poliretaw rur no learned in for private society sanitation nizing nizing tow initiative PE Ensuring the access Addressing partnership civil positively Identif communities and sustainability Promoting public promote diarrhoeal Improving clients recent Orga African roadmap ministries Supporting instruments behaviours large-scale projects Orga lessons small town Characterizing environment sustainable demand Developing utilities categorizing models IEW after ote in n tiona ies large cener icesv Upstream capacity omrp Ser Asia Africa sanit of teraw VERV facilit to Market public ral O: participation thiw Confe countries and design; design rural thiw building communities Multi-Village EX sector SS: ngagemente tot WSSlarur Cent soap Dakar Sanitation and onent rnational ement developing NN Title sactionn W of partnership htiw salinationeD kshoprow insr gieneyhtra programs Inte nday ndasn in A trar ivaterp ciety suppor the East comp sustainable engag rm urban so pu rvices up for uction private Suppl se of WSS refo in shingaw in erato the Tow Pro-poo rkow civil Middle and PPP for Follow constr Public hand Trends the Consultation opretaw of RWSS Ababa Small State promotion scale Addis "Water in Schemes" Scaling supply Modes sector # 005 006 007 008 012 015 020 021 026 033 la e nnuA-i manc N/A 52% 93% 95% 99% 22% N/A m 100% 77% 94% Se perfor 02 04 40 03 riodep Jun 04 40 40 04 ­ Dec Mar Feb Jun Aug ­ Jun Oct ­Sep 02 ­ ­ Jan ­ ­ ­ 03 04 ­ ­ 02 Jun 02y 02y 02 03 02 30 03 Project Mar 18 04 Ma Ma Jun Mar Jun April Mar Mar ust sta ational ational ational ational ational ational ational ational Closed Oper perO Closed Oper Oper Oper perO Oper Oper Current s s s m m m sw ste ste & ste SS sy sy sy WSS WSS WSS ndoi WSS W Rural WlaruR WSS Urban Financing gnicnaniF SS WSS Urban WlaruR WSS eneigyH Sanitation Urban Urban Urban Urban Financing edv get 46,842 50,000 000,05 000,05 45,000 541,44 50,000 50,000 50,000 pproA bud (USD) 000,030,1 r for fo be in by to tools & provision assessing options tosyaw sector in and the in can on a e in process, and Renegotiations nda,y the that as services focus marginal governance gienyh learned field, sector providers, subsidy poor in this sanitation hesizingtn for increase n es nitoring rvice gieneyh multi-sectoral ying, oastCyr otiation se support tega hising tationi otiation d to teraw and in sy stributionaldi sksir tio mo in the Ivo het ssonsel scale tina's str san ing and the increase for of reneg franc assess any the how guidelin identif ndasn and and of and by toy and rkow book et,k in aid. a on the ofs and small descrip thiw investigatingyb and toy enegr Argen tow suppl es mar models professional and sized of sanitation the Senegal cha of subsidies. in consumers for Short components tea pplies, g d kit issues, teams su effectiveness in supplretaw the ontr teraw sanitation of PPP tot fininged policies countries potential thodolog teraw nizations research elopment flow the state experienc possibilitie ers tput-baseduo testin in me ga an tool dev of task implementing, RWS supply,r snw to the a a or publication appropri water used piped suppor otiation other providing medium urban the profile in utilities the play the design" nw in of and easra sharing and the and empirical of of sector new use to market teaw reneg poor the Providing designing, evaluating projects Building for and town aggregate Assessing schemes providing Providing Commission and developing applied Investigating means small urban Developing regimes Assessing Africa, people raising Africa Editing recent impact Assessing number private Updating include "pro- and tiona n for re the for Water Wat Region Private Sanit Projects to andy I) nday Sanitation Sanitatio West-Africa ECA and Subsidies in fortr Contract Private suppl and Suppl Improve Services (phasey Utilities the Public of for in for Water Multi-Sector lyp icesv chaw water Assistance mmissionoC to tiona African an tega ent Water m ent kit e Title in th Rural Supr Pro-Poor Flo ance of Concession Str Impact tool of Serr a in Sanit in the sector for Wate Wate Govern andy nw gieneyH Develop Managem Toolkit Components To Initiative Evaluation Urban Developing Renegotiations: Argentina's Renegotiations Franchising Sanitation Good Suppl Poor Development and Distributional Subsidies Market Utility Updating Partnership sanitation # 042 043 050 051 052 053 054 055 057 059 la e nnuA-i manc 65% 99% 90% 70% 39% 63% m 100% 72% 109% 95% Se perfor 02 04 04 04 04 04 40 04 40 riodep ugA b 04y Fe Mar ­ ­ April Jun Ma Feb Mar Jun Feb ­ ­ ­ ­ ­ ­ ­ ­ 02y 02 02 02 02 03 03 03 Project Ma Sep Sep02 Sep02 Nov Sep Dec Jun Sep Jun ust sta ational ational ational ational ational ational ational ational ational ational Oper perO perO Oper Oper Oper Oper Oper Oper perO Current s s m m s s s s m m m m sw ste ste & WSS sy sy ste ste ste ste buildingy sy WSS sy WSS WSS sy WSS sy ndoi W Urban gieneyH Sanitation Urban Rural Urban Urban Financing Financing Capacit Financing Financing Financing Financing edv get 50,000 50,000 50,000 50,000 50,000 32,000 35,000 50,000 46,000 50,000 pproA bud (USD) n s. s r to the m their to at of and teaw ca in the refor of nda private utilitie PSP a for W&S flow project connect the in policy SSPs, business local WSS the of service mitigation Toolkit of to municipal the sector Ethiopia in develop existing financial for of sanitation and for the risk n to ni help incentives to to involvement of mic d sanitation of generically tool ng te increasing tiona tio PSP baselines ra ofs ddressa signed the link situation assess e. lending to her tokrow isions evaluating sanitation policy for dec an user/y for existing nayd any to use more ytical the opey andy market the sanit in the their descrip developed and initiativesy of ric suppl and social plan anal of the order assessment understandi tailoring azil dimension in poor and be elsew frame agenciesy methods Br ework ator emst gene utilized domestic Short and andy pact m cost-effective e communit re teraw ive the supply inl SS will esu leb household fra W syr of supplretaw tionca eb mi ichhw supplretaw e cilitatingaf evaluation mo global the in of th social of theninggne a a important and leve for orkwe for flexi regul and manc the a of an including can professionals.sallew the in the innovat Mauritius water and orf teaw the into and an in regulator riate that as as and openy needs stryb fram per piped design ma veloping ersy Disseminating legal, municipal Developing resources The generalized Producing officers approp utility Looking the effectiveness the Philippines De Indonesia, situation Developing model serve makers Enhancing importance sector, environments Exploring management that pla Assessing services specific option. Enhancing delivery instruments governments. y ion small tera SP of sia ort h W PR iss Improve ) rvice lar r reign and a Cas ctoreS competit forsw nce y Mitigation Cent a thiniw Analy the Indoner Regula A Sey and Participation Pro-Poo Suppl for (CFEM Scale nday of Private Suppl and Risk Sub-Sove and medium Flo foy Business of in azil from Water Br tiona Performa Utilities: Baseline Involvementy Tool Suppl Sector Water ce Stud a Model and Small of andst in for mestic Water view Design Financing Title Re efficiency ies Resource Sanit ofy of of ropeuE Water Water Do in Eviden Sector of Policy of Services the and Private for provision andy orkw for Distribution Communit iny Designr sight Equilibrium orkw Investmen Region mentsn WSS Improving of municipalit Assessing Suppl Frame Methodolog Water Does Performance Projects? Philippines Sanitation Development ervO Flow Improving Environments Providers Sanitation Potential Participation Deliver Asia Pro-Poo Sanitation Transaction Comparative Instruments Frame Water veroG # 060 061 062 064 066 071 074 077 078 080 la e nnuA-i manc 64% 0% m 100% 108% Se perfor 04 04 04r 04r eriodp Mar Jun Ma Ma ­ ­ ­ ­ 03 03 03 03 Project Jul Oct Oct Oct ust sta ational ational ational ational Oper Oper perO Oper Current sw WSS WSS Building-y WSS Building-y ndoi W Urban Urban Urban Capacit Capacit edv get 34,200 50,000 46,000 48,900 pproA bud (USD) a s in an the as on ance service a m as services developing cooperatives facilitate WSS Nigeria n emphasis and perfor to to sector. d hising tationi tio in, san Lagos, franc consumer rticular WSS riente change access of and using descrip pa rience ex the sector. thiw in expe er aterw Short ssessinga onsumer-oc atw ledge improve Peru. d in potential and sectors, istingxe know an or the n ngiy experience ing for,krow ther po settlements, fo providing south reform the of urba tion.a various Identif in Bolivian Review frame reporting South- sector among Investigating means large illustr for nday andy n n - An upplS Utility barU werage andy Model Suppl Peri-Urba Consumer Water Se Large Water eratives: n Wateryb on Suppl ons and 2: Lima er es Title op Brazil Pha Co Institutional barU Water Services? Utilitie omrf to Wat in ofy Issues -- Reporting Toury Consumer Alternative Deliver Sanitation Public Sanitation Oriented Stud (SEDAPAL) Condominal stemsyS Franchising Sanitation Settlements # 081 083 084 085