Bank Netherlands Water Partnership Water Supply & Sanitation Windows Progress Report First Quarter, 2003 January 1 to March 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 Comprehensive Quarterly Progress Report First Quarter, 2003 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 quarterly progress report 2.1 Purpose This Quarterly Progress Report outlines the progress in work of the Water Supply and Sanitation Windows of the Bank Netherlands Water Partnership during the First Quarter, 2003 (January 1 to March 31, 2003). The purpose of the Quarterly Progress Report is to: · report outputs and activities of the various BNWP projects and activities · report expenditure that allows comparison with outputs · facilitate identification of links and common interests between various projects of BNWP · increase transparency of BNWP operations. 2.2 Structure of the Quarterly Progress Report The Quarterly Progress Report is organised with a main text with an annex giving the detailed progress reports for each project and activity. 3. Key developments in quarter BNWP activities in the first quarter of 2003 focused on consolidating the present portfolio. Five of the eight operational flagship project were in full swing, while three more were procuring consultants and starting up. A number of products were published in the quarter, including: Global Public Private Partnership to Promote Handwashing with Soap (#008, Brochure) 2 Water Supply and Sanitation for Small Towns and Multi-village Schemes-Vol. 1: Proceedings of the International Conference, Final report. (in French and English) Vol. 2. CD ROM Materials (#021, Report, 71 pages & CD rom) Taking Sustainable Rural Water Supply Services to Scale: A Discussion Paper (#026, Report, 28 pages) Rural Water Supply and Sanitation Toolkit for Multisector Projects (#042, Report, CD rom and website in English, French and Spanish) 3.1 New projects and activities Three new activities were started up: Good Governance to Improve Water Supply and Sanitation Services for the Poor (053) - developing a methodology to assess governance regimes in urban water supply and sanitation sector Market Development for Private Water Utility Management in the ECA Region (057) - assessing the possibilities of how to increase the number of players in the market, risks for the private sector and consumers Updating the toolkit for Public Private Partnership in the water supply and sanitation sector (059) - updating the toolkit for PPP in the water sector to include new development and increase focus on "pro-poor" design issues, small scale providers, and the use of output-based aid. 3.2 Closed projects and activities The following projects and activities were finalised in this quarter: Addis Ababa International Conference "Water Supply and Sanitation Services in Small Towns and Multi-Village Schemes" (#021) This successful activity organized ­ in cooperation with WSP, and WBI a conference which was attended by about 250 participants from government agencies, consultants engaged in case studies, private sector and NGO representatives, scientists and academics, and donors organization involved in the sector. Conference proceedings was published in February 2002. The conference shaped the BNWP Town Water Initative (BNWP project #043). 3.3 Events BNWP co-organized six sessions in the World Bank Water Week (4 ­6 March 2003. Each session was 2 hours parallel. Sessions were generally well attended (30 ­70 people per session). The BNWP WSS specialist was also overall co-convenor of the Water Week. The BNWP organized sessions focused on: Trends in the Desalination Market (BNWP #012) Scaling Up Sustainable Rural Water Supply Services (BNWP #026) Modes of Engagement of Public Sector in Urban Water Supply and Sanitation(BNWP #033) RWSS Toolkit for Multi-Sector Projects (BNWP #042) Franchising: A New Model to Support Local Operators (BNWP #053) New Approaches to Private Sector Participation (BNWP #059) BNWP disseminated products at the third World Water Forum in Kyoto in March 2003. Several contributions were made to sessions, including presentations on PPP in handwashing (BNWP #008) and Scaling Up Sustainable Rural Water Supply Services (BNWP #026). 3.4 Program management 3 A second WSS specialist joined the BNWP management team on a part time basis. 4. Overview of present portfolio The total value of the present portfolio of projects and activities is USD 6.8 million. This budget includes projects and activities that are approved by (the chair of) the Sector Board. In addition prequalified projects under development amount to a budget of USD1.9 million. The planned disbursement per quarter is presented in figure 1. This approved budget of USD6.8 million leverages cofinancing of USD1.8 million from other funding sources. 600,000 500,000 400,000 300,000 200,000 100,000 0 02-I 02-II 02-III 02-IV 03-I 03-II 03-III 03-IV 04-I 04-II 04-III 04-IV 05-I 05-II 05-III 05-IV 05-I 05-II 05-III 05-IV planned disbursement actual disbursement Figure 1: Planned disbursement per quarter The focus of the present portfolio is summarized in figure 2. 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. There is a reasonable spread across deliverables. An extra effort is needed on financing systems. per region per deliverable per window Global Rural WSS advice on approaches Africa Urban WSS East Asia & Pacific policy awareness and Financing systems dialogue Europe & Central Asia synthesised knowledge & Sanitation & hygiene Latin America & Carribean info research & development Capacity building Mediterranean & N. Africa 4 South Asia cap. building & training Figure 2: Break up of portfolio in windows, regions, and deliverables 5. Financial and progress report Table 1 gives a specification of accumulated progress as well as expenditure per window. The total expenditure between January 1 to March 31, 2003 was USD302,898. This is 95% of the planned budget for the first quarter of 2003. As BNWP moves into the implementation phase, disbursements are increasing. The outputs achieved in the fourth quarter amount to 85% of the targets set for the quarter. This number represents a weighted average of the individual project achievements, as specified in the annex. Table 1: Outputs and expenditure fourth quarter 2002 (USD) Window Performance Quarterly Expenditure (% of target) budget USD % of budget WSS in rural areas and small towns 72% 67,200 58,888 88% Reform of urban WSS 77% 79,000 66,422 84% Dev. of sustainable financing systems 76% 30,000 37,468 125% Sanitation and hygiene promotion 106% 52,000 41,571 80% Capacity building 85% 11,800 6,904 59% Program coordination N/A 80,000 91,645 115% Grand total 85% 320,000 302,898 95% Indicates that % of spent budget > % of reached target 6. Plans for next quarter The BNWP will be at cruising speed during the second quarter of 2003. The pipeline will be reviewed, with projects development either being speeded up, or projects being revised. 5 Annex: Overview per project or activity # Title Short description Approved Windows Current status Project period Quarterly budget (USD) performance 005 Pro-poor transaction design; Upstream Ensuring that urban water sector reforms involving 780,000 Urban WSS Operational Nov 02 ­ Feb 04 32% work for private sector participation the private sector are more effective at increasing and reform access and service quality for poor consumers 006 PPP in urban WSS: building capacity Addressing the role of civil society in public private 150,000 Urban WSS Operational Nov 02 ­ May 04 71% for civil society engagement partnership transactions and build capacity of key Capacity building civil society groups, and policy makers to engage positively in the reform process 007 Follow up support to communities after Identifying the types of follow-up support to 180,000 Rural WSS Operational Jan 03 ­ Jun 04 50% construction of rural WSS facilities communities after the construction of rural water and sanitation Facilities that are needed to enable sustainability 008 Public private partnership to promote Promoting partnership between the soap industry, 850,000 Hygiene & Operational Jun 02 ­ Dec 03 116% handwashing with soap public agencies and NGOs to provide soap and sanitation promote handwashing with soap to decrease diarrhoeal diseases 012 Trends in the Desalination Market in Improving the understanding among Bank staff and 350,000 Urban WSS Operational Jun 02 ­ Sep 03 75% the Middle East and Central Asia clients in the Middle East and Central Asia of recent developments in the desalination industry 015 Consultation workshop with African Organizing a three day high-level seminar of 50,000 Urban WSS Operational Feb 02- Jun 02 100% water operators in Dakar African water policy decision makers to develop a roadmap on how to improve capacity of water ministries in implementing sector reform 017 Enhancing the empowerment of poor Assessing the extent of empowerment being 147,000 Rural WSS Under 18 months N/A women and men within communities effected, specifically for poor women and men development within user communities, as a result of water and sanitation interventions 020 State of the art hygiene and sanitation Supporting the implementation of effective 530,000 Rural WSS Operational Jun 02 ­ Dec 03 25% promotion component design of large instruments for improving hygiene and sanitation Hygiene & scale RWSS programs behaviours in rural communities in the context of Sanitation large-scale rural water supply and sanitation projects 021 Addis Ababa International Conference Organizing a conference to take stock of the 50,000 Rural WSS Closed Apr 02 ­ Jan 03 N/A "Water Supply and Sanitation Services lessons learned on water supply and sanitation in Urban WSS in Small Towns and Multi-Village small towns and to launch the new BWNPP small Schemes" town initiative 026 Scaling up sustainable rural water Characterizing the necessary supporting 50,000 Rural WSS Operational Feb 02 ­Jan 03 99% supply services environment for successful scaling up of sustainable rural water supply services, such as demand response approaches 6 # Title Short description Approved Windows Current status Project period Quarterly budget (USD) performance 028 Understanding the Infrastructure Improving our understanding of infrastructure 375,000 Financing systems Under 18 months N/A Environment of Small and Medium shortages faced by small and medium enterprises development Firms in transitional and developing economies, the impact of such shortages on firm productivity and competitiveness, and the firms' coping mechanisms 033 Modes of engagement with public Developing better performing public sector water 628,000 Urban WSS Operational Jun 02 ­ Dec 04 100% sector WSS in developing countries utilities in developing countries.- identifying, Capacity building categorizing and analyzing various international models for public sector water service provision 042 Toolkit for Rural Water and Sanitation Providing task teams with guidelines and tools for 50,000 Rural WSS Operational Mar 02 ­Sep02 100% Components in Multi-Sector Projects designing, implementing, and monitoring & evaluating RWS components in multi-sectoral projects 043 Town Water Supply and Sanitation Building appropriate models for service provision 1,030,000 Rural WSS Operational 18 Jun 02 ­ Dec 57% Initiative for town water supplies, by identifying, assessing Urban WSS 03 and market testing professional support options for town water supply, and by investigating ways to aggregate towns 047 Beyond capital subsidies: financial Documenting the sustainability and scalability of 400,000 Rural WSS Under 14 months N/A alternatives for achieving rural government capital subsidies in the rural water Financing systems development universal coverage targets sector; and financial alternatives such as use of non-public funds, private participation, inflow of donor funds 050 Evaluation of Pro-Poor Subsidies for Assessing the effectiveness of the subsidy 50,000 Financing systems Operational May 02 ­ Aug 02 90% Urban Water Services in West-Africa schemes used in Senegal and Ivory Coast in providing piped water supply to the poor 051 Developing a Flowchart for Providing support to the Argentina's Renegotiations 50,000 Financing systems Operational May 02 ­ Aug 02 75% Renegotiations: Assistance to Commission in defining the renegotiation process, Urban WSS Argentina's Concession Contract and renegotiation policies and strategy, and Renegotiations Commission developing a flowchart on renegotiation that can be applied in other countries 052 Franchising in Water Supply and Investigating the potential of franchising as a 50,000 Rural WSS Operational Jun 02 ­ Jun 03 85% Sanitation means of providing water and sanitation services in Urban WSS 02 small and medium sized towns and in marginal urban areas 053 Good Governance to Improve Water developing a methodology to assess governance 45,000 Urban WSS Operational Mar 03 ­ Dec 03 N/A Supply and Sanitation Services for the regimes in urban water supply and sanitation sector Poor 054 Development of an African Sanitation Assessing the state of sanitation and hygiene in 50,000 Hygiene & Operational Jun 02 ­ Sep 02 81% and Hygiene Strategy (phase I) Africa, sharing experiences and lessons learned by Sanitation people and organizations working in this field, and raising the profile of sanitation / hygiene in Africa 7 # Title Short description Approved Windows Current status Project period Quarerly budget (USD) performance 057 Market Development for Private Water assessing the possibilities of how to increase the 50,000 Urban WSS Operational Mar 30 ­ Dec 03 N/A Utility Management in the ECA Region number of players in the market, risks for the private sector and consumers 059 Updating the toolkit for Public Private updating the toolkit for PPP in the water sector to 50,000 Urban WSS Operational Mar 03 ­ Oct 04 N/A Partnership in the water supply and include new development and increase focus on sanitation sector "pro-poor" design issues, small scale providers, and the use of output-based aid. 060 Improving efficiency and competition Disseminating and tailoring the PSP Toolkit to the 50,000 Urban WSS Operational May 02 ­ Aug 02 65% of WSS provision in medium and small legal, regulatory and social situation of W&S at municipalities in Brazil municipal level in Brazil 061 Assessing Resource Flows for Water developing a framework to assess the flow of 50,000 Financing systems Operational Sep 02 ­ Feb 03 76% Supply and Sanitation within a PRSP resources for WSS and their link to sector reforms. Framework The framework will be developed in Ethiopia and generalized for use elsewhere. 062 Methodology of Baseline Analysis of producing a flexible framework to help project 50,000 Financing systems Operational Sep02 ­Sep03 100% Water Distribution Performance officers and regulatory agencies to develop appropriate and cost-effective baselines for water utility performance 064 Does Community Involvement Improve looking into the household decisions to connect to 50,000 Capacity building Operational Oct 02 ­Dec 03 0% Performance of Water Supply the piped water system and an evaluating of the Projects? Evidence from the effectiveness of community/ user involvement in Philippines the design of water supply initiatives in the Philippines 066 Sanitation Sector Study for Indonesia developing an action plan for sanitation in 50,000 Hygiene & Operational Nov 02 ­ Jun 03 80% Indonesia, including assessment of existing Sanitation situation and evaluation of existing incentives 071 Development of a Tool for Regulatory developing a more generic dynamic financial model 32,000 Financing systems Operational Sep02 ­Sep03 67% Oversight of Water Utilities: A Cash that can be utilized more generically and can serve Flow Equilibrium Model (CFEM) as an important analytical tool for policy makers as well as professionals. 074 Improving Policy and Business enhancing the global understanding of SSPs, their 35,000 Urban WSS Operational Dec02 ­Jun03 0% Environments for Small Scale importance in the water supply and sanitation Financing systems Providers of Water Supply and sector, and the impact of the policy and business Sanitation Services environments in which they operate 8