Note No. 15 August 1995 Social Assessment and the Baku Water Supply Project The World Bank supports development tional capacity necessary for the project to that improves human welfare and reduces succeed. poverty. Achieving this goal requires sustain- able economic growth; the development of SAs involve a variety of methods for physical infrastructure, human resources, and collecting and analyzing data, including both institutions; and sound environmental man- quantitative approaches, such as socioeco- agement. In recent years development practi- nomic surveys, and qualitative approaches, tioners have recognized that having stakehold- such as beneficiary assessments. The approach ers participate in project selection and design used depends mainly on the complexity of the has a number of advantages: it can help reach issues and the degree of participation needed. the poor and other vulnerable groups, strengthen participants ownership of the The Bank does not restrict SA to project project, and improve decisionmaking. Devel- work. SA is an integral part of poverty assess- opment practitioners also recognize that ments, and may also be pertinent to many other systematic social analysis can help ensure that aspects of country economic and sector work. projects achieve their objectives, that they are appropriately targeted, that they are acceptable The Baku Water Supply Project to the intended beneficiaries, and that they are As part of its efforts to make the transition institutionally feasible. Social assessment (SA) from a centrally planned to a market economy, supports participation, and is a tool for incor- the government of Azerbaijan has asked the porating social analysis into the Banks projects World Bank to help provide essential public and analytical work. services to the population, especially in Baku, the capital, where 2.5 million people, one-third The Nature and Purpose of SA of the countrys population, live. One of the SA is the systematic investigation of the most critical needs is to improve the citys social processes and factors that affect the water supply system. outcomes of development projects. In project work, Bank staff use SA to identify key stake- Objectives of the SA holders and establish a framework for their The Baku Water Supply Project will be the participation in the project, to ensure that Banks first lending operation in Azerbaijan. intended beneficiaries find the projects objec- As such, the Bank considers two aspects of the tives acceptable, to assess the social impacts of project to be particularly important. The first is a project and determine how to mitigate any that the project gives priority to the needs of adverse impacts, and to develop the institu- the poor without adversely affecting other Robert Wildeman (EC3IV) is task manager of the Baku Water Supply Project. This note was originally published as Environment Department Dissemination Note Number 26. For more information on the SA contact Ayse Kudat at the World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Fax: (202) 522-3247, website: http:// www.worldbank.org and click on publications. Theviewsexpressedinthisnotearethoseoftheauthor(s)anddonotnecessarilyreflecttheofficialpoliciesoftheWorldBank. social groups, and the second is that the projects development impacts are sustainable. Box 1. How did the Team do the SA? To this end, the Bank team initiated a social assessment. Its specific objectives were A rapid household survey, undertaken with the help of faculty and researchers from the To identify key stakeholders and to propose Institute of Social Management and Political a framework for their participation in project Sciences and the Institute of History at Baku design and implementation University Community-based discussions conducted To evaluate the projects social impact on through informal household visits and households and to ascertain whether par- interviews, including interviews with refugee ticular social groups might be adversely groups affected Participatory assessment discussions with staff of nongovernmental organizations To design measures that would mitigate any targeted at such groups as women and adverse effects refugees Discussions with representatives of interna- To help identify cost-effective interventions tional organizations that could be undertaken immediately Meetings with representatives of the national and local governments To ensure that the projects objectives and Informal interviews with informal and incentives for change are appropriate and private sector providers of water and water acceptable to the diverse groups of intended supply equipment (such as storage tanks) to beneficiaries. households Procedures Case studies of a small subset of households The SA used a variety of techniques and from the rapid appraisal sample to identify consisted of a number of components (see box the strategies they use to cope with shrinking 1). It simultaneously employed both sociocul- incomes and acute economic difficulties tural and institutional analyses, ranging from a rapid household survey to informal interviews Only 13 percent of households believe that the and formal discussions. The household survey water they receive is clean. The high incidence consisted of a questionnaire that was adminis- of water-related diseases supports the percep- tered to some 450 households and took 8 days tion that the water is unsafe. to complete. Given the scarcity of population data for different sectors and neighborhoods of The poor water supply affects Bakus entire Baku, the team considered that spatial repre- population. Everyone suffers from unreliable, sentation was more relevant than a random intermittent, and insufficient water service. sampling of the entire population. Thus the Thus all social groups would benefit from the interviews took place throughout the city, with project, and none would be adversely affected all neighborhoods receiving equal coverage. by it. Results The single most important cause for both the The SA, especially the household survey, unreliable and intermittent nature of the water revealed a number of trends, namely: supply and its poor quality is insufficient water pressure. This is caused by leakages, Even though almost all households in Baku illegal connections, and the poor condition of are officially connected to the water supply pumping stations. The low pressure also network, on average families receive water permits pollutants to enter the water mains for only 22 days per month and 11 hours per more readily. day. Water distribution and the way people deal 2 Figure 1. Coping Expenditures by Income Group 17 times as much per month as public water: 1,680 manat as opposed to 100 manat & (US$0.10). As figure 1 shows, the poor spend centage % a significantly higher proportion of their pera $ income (7 percent) on coping strategies than ase # better-off households (2 percent). Thus the " income poor would benefit the most from an im- of ! proved water supply system. expenditur Women, the elderly, and the poor bear the BĂ BĂ! BĂ" BĂ# Coping brunt of the water supply crisis. Women are Income Groups (1=lowest, 4=highest) primarily responsible for fetching water from alternative supply sources and for Figure 2. Willingness to Pay for Improved caring for those who fall ill because of Water Supply by Income Group contaminated water; the elderly generally cannot afford alternative supply systems, % and those that can, cannot readily transport centage $ it; and the poor do not have enough money pera to adopt expensive coping strategies. # as pay income " to of Households would be willing to pay many times their current monthly water charge for ! better public water service. They consider illingnessW the present charge to be merely symbolic. BĂ BĂ! BĂ" BĂ# Some 84 percent would be willing to pay Income Groups (1=lowest, 4=highest) double the current rate of 100 manat even without any improvements, while 63 percent would be willing to pay more than 10 times with the insufficient and unreliable public the current level for improved service. As water supply vary with location, socioeco- figure 2 reveals, poorer households are nomic status, and type of housing. Thus willing to spend a higher share of their interventions must be tailored to meet the income (6 percent) on improved service than needs of specific communities. richer families (1 percent). Although these figures seem high at first glance, they differ Some 40 to 60 percent of public water is not little from the 1,680 per month households paid for. Reasons include illegal connections, currently spend on their coping strategies. leakage, and the overall lack of metering equipment. Only public institutions and Impact industries have water meters, but in many The SA suggested that to obtain further cases they fail to pay their bills and to repair information about local water use and the broken meters. supply situation, and ultimately to improve the public water system in Baku, a number of Most households have developed strategies measures should be given priority. First, given to improve water quality, for example, by that the SA not only indicates a widespread boiling tap water; to have water available need for a better water infrastructure, but also when they need it, for instance, by installing a high willingness to pay for it, and clearly storage facilities; and to find alternative indicated that the poor will profit the most sources of water, for example, by drilling from any improvements, the components of private wells or buying water from vendors. the project are fully justified, and even suggest that a higher loan amount than originally Households incur high costs to secure planned would be appropriate. Second, envi- nonpublic water, which normally costs about ronmental communication and education must 3 be a central project component, because several of the coping strategies house- Box 2. What Were the Policy Implications? holds have adopted, such as drilling wells, may have adverse health and environ- The proposed Baku Water Supply Project meets one of the mental impacts. Third, community partici- critical needs of the citys population and will be especially pation should be stressed. To this end, a beneficial to the poor. The SA indicated that beneficiary comprehensive, community-based inven- support for the project will be substantial. tory of surface maintenance problems has The savings derived from the project will include not only water conservation, but also the time and energy spent in been launched. Fourth, water meters in fetching and processing water; the fuel used to boil water or public institutions and industries must be pump it from wells; the costs of caring for people suffering repaired as a first step toward cost recov- from water-related diseases; and the personal costs of illness, ery and acceptable payment and enforce- such as medical expenses and foregone income. ment mechanisms implemented. Finally, The success of this project will improve peoples faith in the the Baku Water Department should be government, and thereby generate public support for other reorganized and its institutional capacity components of the governments reform agenda. for consumer relations and environmental The strongly perceived need for the project and the high costs communications strengthened. For the of coping strategies indicate that improving the reliability of SAs policy implications see box 2. the water supply system will create opportunities for cost recovery. However, a full picture of the potential for cost The project will address the range of recovery requires an understanding of industrial and agricul- community-specific water supply prob- tural stakeholders responses to the current situation. At the lems and the variety of coping strategies same time, any institutional measures adopted should include participatory elements to sustain the community- Bakus populace is currently using. The level participation achieved to date. SA identified these problems and revealed The water supply systems unreliability is partly related to peoples attitudes toward securing public the unreliability of other components of the infrastructure, and nonpublic water. Ordinarily this sort namely, electricity and communications (a functioning of essential information would not be telecommunications system is a prerequisite for timely available at such an early stage of project reporting of damage to the system for for coordinating repair preparation, but the insights gained from work and maintenance). Therefore, study of the interdepen- the SA will permit project designers and dencies within the system is required so as to develop other stakeholders to fine-tune the project appropriate solutions. so that it meets specific local needs and to The environmental and health consequences of some of the identify priority actions. coping strategies households have adopted need to be examined and suitable incentives to change them introduced, Costs including developing a regulatory framework. The work described in this note cost The large capital investments some households have made in some US$13,000 for data collection and tapping into alternative water supply sources may reduce their participation in system improvements. In addition, staff time. Field work took about eight some of the investments may also have an income-generating days, and data processing and write-up component, for example, using water to grow vegetables. took another three weeks. However, the The perceived acuteness of the unreliability of the water entire process of social assessment and supply varies among communities, and suggests the need for participation in Baku, which involves a better understanding of the problems technical causes. As number of separate studies and missions, new, privatized housing development are among the worst will take approximately 6.5 months at a affected, pilot community interventions would not only total cost of some US$50,000. demonstrate the potential for systemwide improvement, but would also enhance public support for both the project and the privatization process. Social Development Notes are published informally by the Social Development Family in the Environmentally and Socially Sustainable Development Network of the World Bank. For additional copies, contact Social Development Publications, The World Bank, 1818 H Street, NW, Washington, DC 20433, USA, Fax: 202-522-3247, E-mail: sdpublications@worldbank.org. 4