Select Committee on International Development Written Evidence


Memorandum submitted by WaterAid

WB-IMF CONDITIONS AROUND PRIVATE SECTOR PARTICIPATION IN WATER SUPPLY SERVICES IN SUB-SAHARAN AFRICA AND SOUTH ASIAN COUNTRIES

SUMMARY OF POINTS

  1.  In the 14 countries[81] investigated by WaterAid, WB and IMF stipulate conditions to implicitly and explicitly expand private sector participation in water services and close down other options to reform water services.

  These conditions are mandated through prior actions, trigger conditions, performance criteria and quantitative and structural benchmarks and indicators used by WB and IMF[82].

  2.  Given importance of robust regulatory mechanisms for public accountability of private water service providers, there are no concomitant performance criteria requiring regulatory mechanisms to be established, for example in Ghana, Nepal and Nigeria.

  3.  The conditions most commonly stipulated in the urban areas in 12 countries include the involvement of private water operators in the operation, management and control of public water utilities through lease/affermage arrangements, and the outsourcing of activities such as installation of new connections and maintenance and repairs of water distribution networks to the private sector.

  In Malawi, for example, one of the performance indicators is the divestiture of the public water boards by June 2004. In Mozambique, private management contracts in place for five major urban water supply systems by 1999 is a performance indicator.

  4.  Full-cost recovery, tariff increases and establishment of automatic tariff adjustment formulae are common structural benchmarks stipulated in IMF Memoranda of Economic and Financial Policies, for example in Ghana, Mozambique, Tanzania. However, there are no supporting conditions that governments should ensure that poor people's access to WSS services is protected once tariffs rise.

  5.  In the rural areas, common WB and IMF conditions stipulate building and increasing private sector capacity to provide all goods and services for rural water supply. This is to be achieved in conjunction with increased community driven development (CDD), where autonomous community groups become responsible for operation and maintenance of their water supply.

  However, there are no supporting conditions indicating how assistance to these groups will be provided to ensure their sustainability and corollary, that of rural water services. Instead, there are conditions that mandate full costs of operation and maintenance to be borne by communities.

  6.  This focus on expanding and facilitating the role of the private sector in water supply and sanitation services is carried forward in the Poverty Reduction Strategy Papers developed for countries such as Ghana, Madagascar, Mali, Mozambique and Zambia. It would seem that the strategies included in the PRSPs have been drawn straight from the IFI programmes, thus enabling undiminished pursuit of PSP in the water supply sector.

QUESTIONS WE REQUEST THE SELECT COMMITTEE MEMBERS TO PURSUE WITH THE MINISTER:

  1.  Does the Minister agree that it is important for governments and their citizens to have the space and opportunity to deliberate openly on how to improve water services for all, especially the poor, and for this deliberation not to be constrained by conditions imposed by the World Bank and IMF?

  2.  Will the Department for International Development lead in poverty and social impact analysis (PSIA) of current approaches to reforming water and sanitation services, (principally through private sector participation) to ensure that these reforms are not inadvertently harming the poor?

  3.  How does the Department for International Development support and enable a transparent and consultative decision-making process over the approaches to water services reform, and to the establishment of robust regulatory systems and monitoring of water utility performance?

  4.  What is the Minister's view of the role of civil society groups in the reform of water utilities in developing countries, and what is the current commitment of the Department for International Development in supporting these roles?

  5.  There is a Working Group currently looking into the feasibility of a Multi-stakeholder Review of Private Sector Participation. Does the Minister see this as a useful way to open up informed discussions on this issue, and will he give his support to these efforts?

October 2003

Table 1

WSS SECTOR-RELATED CONDITIONS IMPOSED BY THE WORLD BANK AND IMF THROUGH STRUCTURAL ADJUSTMENT PROGRAMMES AND PROJECTS[83]

CountryType of condition imposed Enforcing AgencyDetails Source
Burkina FasoTrigger
  
Performance indicators
WB"Enhanced external and internal competitiveness through actions to liberalize utilities and reduce input and factor costs as outlined in the PRSP" is an "assumption" of the base-case lending scenario.
"Swift implementation of the private sector development strategy, including completion of the utilities reform programme" is a trigger condition for a high-case lending scenario.
Progress towards PRSP's quantitative objectives for drinking water supply.
World Bank Country Assistance Strategy FY2000-03
Relevant projects: Ouagadougou Water Supply Project (FY01);
Urban Environment Supplement (FY02)—urban water and sanitation (No Project Appraisal Document available);
Community Based Rural Development (FY01)— decentralisation and rural capacity building.
Burkina FasoPerformance Indicators WBRecovery rate from private customers (from 86% in 2000 to 92% at the end of 2004 and 95% thereafter);
Financial statements prepared according to international standards.
Project development objective: Improve the capacity of Office National de l'Eau (ONEA) to manage the urban water supply sub-sector and the rapid change in the scope of water services in Ouagadougou by contracting out commercial operations and financial management.
Critical assumptions: the government is open to explore further public/private partnerships.
Project Appraisal Document (PAD) Ouagadougou Water Supply Project 2001
Burkina FasoPolicies agreed with the IFIs—no indication if they are performance criteria, structural benchmarks or performance indicators. IMF & WBPeriodically adjust the price schedules of SONABEL (electricity), SONAPOST, and ONEA (water) to reflect changes in their costs.
Strengthen the institutions in the water sector to enable them to manage water resources more effectively and to ensure their financial viability:
(a) Complete study on reform of the system for managing water-pumping facilities and infrastructure in rural and semi-urban areas.
(b) Draft and implement laws and regulations to govern the management of water resources through watersheds.
(d) Strengthen the operational efficiency, financial viability, and autonomy of ONEA.
(e) Pursue the practice of having ONEA outsource to the private sector certain activities (installation of new connections, and maintenance and repairs of the water distribution network).
(f) Establish regulations to govern the operations of the unit in charge of the participatory management of water infrastructure resources.
Enhanced Structural Adjustment Policy Framework Paper FY2000-02
  
Also same conditions contained in: Enhanced Structural Adjustment Policy Framework Paper FY1998-2000
GhanaTriggerWB Base case: little progress in expanded private sector participation in infrastructure (power generation and distribution, urban water, rail, ports);
High case: substantial progress in expanded private sector participation in infrastructure (power generation and distribution, urban water, rail, ports).
"Little progress" would entail private sector participation in two of these enterprises, while "substantial progress" would entail PSP in at least three out of five.
Ghana Country Assistance Strategy FY2000-03
Relevant projects: Urban Water Restructuring project (FY01)—will be funded under a high case lending scenario (no PAD available);
Community Water & Sanitation APL I: Community Driven Development of rural WSS services (project ended—no PAD available);
Community Water & Sanitation APL II (FY03)—will be funded under all lending scenarios.
Community Development LIL.
Urban V (medium towns): decentralisation.
GhanaPerformance Indicators WB32 districts with functioning private sector delivery system of goods and services to support and sustain CWS (Community Water System) by end of phase 1;
number of communities adequately using, managing and sustaining improved WSS services.
PAD Community Water and Sanitation project (2) 1999
GhanaPerformance Indicators WBDelivery of sanitation services—private operators for all public facilities. PAD Urban Environmental Sanitation Project 1996
GhanaStructural benchmark IMFImplement the published plan for adjusting electricity and water tariffs, including 12% tariff increases in March 2003, and automatic adjustments in line with the published cost recovery formulae thereafter (30 September 2003).
(Prices for water were raised by 40% from 1 August 2002, substantially improving the finances of the utilities and containing their subsidy burden on the budget).
Memorandum of Economic and Financial Policies 2003
GhanaPrior ActionIMF Publication by the PURC (Public Utilities Regulatory Commission) of its strategy for achieving full cost recovery in the public utilities, and implementation of automatic tariff adjustment formulae for electricity and water. Memorandum of Economic and Financial Polices of the Government of Ghana for 2002
GhanaStructural benchmark IMFPublication by the PURC of its strategy for achieving full cost recovery in the public utilities, and implementation of automatic tariff adjustment formulae for electricity and water.
Completion of financial and management audits of nine public enterprises including ECG, GWCL (Ghana Water Company Ltd), TOR and VRA.
Memorandum of Economic and Financial Polices of the Government of Ghana for 2001
GhanaPolices agreed with the IFIs—no indication if they are performance criteria, structural benchmarks or indicators. IMF & WBImplement a program of tariff increases to recover costs.
Issue invitation for bids for lease of urban water systems.
Convert Ghana Water and Sewerage Corporation into Ghana Water Company and complete staff rationalization program.
Complete transfer of all small water systems and remaining sewerage systems to district assemblies.
Enhanced Structural Adjustment Facility Policy Framework Paper 1999-2001
MadagascarPerformance Indicators WBSector policy and action plan approved by Government by 2000;
Water law presented to the Assembly by 1999;
Revised organization plans designed by 1999 and implemented by 2001.
PAD Rural Water Supply and Sanitation Pilot Project 1997
MadagascarPrior Action IMFAn audit of JIRAMA's (electricity and water company) operations and financial condition will begin. Memorandum of Economic and Financial Policies, for 2003
MalawiPerformance Indicators WBDivesture of water boards per sector policy statement to be prepared after PSP options study by June 2004;
Review need for establishment of multi-sectoral regulatory (MSR) for utilities and public services by December 2001;
If appropriate legislation to establish MSR by December 2002 and MSR established by December 2003.
PAD Privatization and Utility Reform Project 2000
MalawiBase case trigger/Performance Indicator WBEnsure viability of Blantyre/regional water boards—regulatory reforms have laid the base for more commercial and competitive power and water sectors but further work is needed to put water boards on a viable footing Malawi Country Assistance Strategy Progress Report 2000 (of 1998 CAS)
MalawiPerformance Indicators WBBank and Government prepare mutually agreed plan of action for Blantyre Water Board (BWB).
Business plans and tariffs agreed and endorsed by Government.
Malawi Country Assistance Strategy FY98-01
Overall objective: to enhance private participation in infrastructure through the National Water projects.
Relevant Projects:
Blantyre Water Project (FY00): no project documents available (project ended)
MalawiPolicies agreed with the IFIs—no indication if they are performance criteria or structural benchmarks. IMF & WBSet water tariffs such that water boards are financially viable.
Build private sector capacity to provide all goods and services for rural water supply.
Improve supply/distribution and financial management of Lilongwe and Blantyre water supply systems.
Malawi Enhanced Structural Adjustment Policy Framework Paper 1998-99 to 2000-01
MalawiNo matrix of indicators available WBObjectives:
Establish centralised water policies;
Establish decentralised, semi-autonomous water boards;
CDD in rural areas;
Pricing reform.
Staff Appraisal Report: National Water Development Project (FY95)
MaliTriggersWB Number of demand-responsive community proposals for potable water and sanitation infrastructure appraised by commune council and funded by the project in a cost effective manner;
98% of water committees operational (adequate tariff systematically collected. . . );
Number of communes with functioning support services and private sector provision of goods and services to support the sustenance of community water supply and sanitation facilities.
PAD National Rural Infrastructure Project 2000
MozambiqueBase Case Trigger
Performance Indicator
WBSatisfactory progress in achieving PRSP targets under programs in health, education, water and roads.
National Water Policy and Water Law updated;
National Water Resources Management Strategy formulated with strong stakeholder participation by 2004.
Private management contracts in place for five major urban water companies by 1999—performance indicator carried out under previous CAS.
Mozambique Country Assistance Strategy 2000.
Relevant projects:
National Water Development I & II
MozambiquePerformance Indicators WBMandated tariff policy set out in law that water pricing will be based on principles of full cost recovery;
Assist in the creation of autonomous publicly owned water companies in the five targeted cities that operate on full commercial principals of cost recovery and efficiency and that are managed and run by private sector operators;
Contract signed. Contract adjustments and re-negotiations are successfully completed without resorting to arbitration or contract termination;
Facilitate the devolution of the responsibility to provide water services to the Local Authorities as the new water companies will have both state and municipal ownership;
Creation of a water sector regulatory agency for urban water service provision;
The financial self sufficiency of FIPAG improves.
Recovery of O&M and depreciation for FIPAG by 2004; full cost recovery by 2005.
PAD National Water Development 2—1999
MozambiquePerformance Indicators WBCentral regulating body established and staffed in preparation for private sector management of urban water supply.
Bids invited for private sector management of five urban water supply companies and evaluated by November 1998;
Pilot piped rural water supply systems rehabilitated and in operation as autonomous entities with full stakeholder participation; similarly for wells and boreholes;
Proposals completed to develop and manage the Incomati and Pungue Rivers jointly with upstream riparians. ARA-Sul operates with income fully covering bulk water supply operations and maintenance;
Central Sector Management: Plan for development of finance function within DNA (National Director of Water) is agreed, and implementation under way: December 1998;
RWSS: Rural water supply and sanitation transition plan (RWSTP): appointment of steering committee and directorate body: June 1998.
Approval of central institutional strengthening plan and RWSTP national communication strategy: June 1999. First small pipe system in Inhambane rehabilitated/improved under autonomous management, with full stakeholder participation: December 2001.
PAD National Water Development Project 1—1998
MozambiquePolices agreed with IFIs—no indication if they are performance criteria, structural benchmarks, or performance indicators. WB/IMFDevelop integrated water sanitation and hygiene strategy.
Commence implementation of plan for demand-based water provision (Rural Water Transition Plan) in all provinces.
Republic of Mozambique Enhanced Structural Adjustment Policy Framework Paper 1999-2002
MozambiquePolicies agreed with the IFIs—no indication if they are performance criteria, structural benchmarks, or performance indicators. WB/IMFAdjust public enterprise prices (water, transport, electricity, petroleum and communications) at quarterly intervals or in accordance with approved formulae to at least cover domestic and import costs, and to ensure commercial viability.
Adopt a new strategy in water resources management, providing a framework for water allocation, pricing, and demand management of the southern rivers.
Award contracts for the private management of the five major water supply systems (A«gua de Maputo, Beira, Nampula, Pemba, and Quelimane).
Increase water tariffs in real terms.
Republic of Mozambique Enhanced Structural Adjustment Policy Framework Paper 1998-2000
NigeriaTriggersWB "The size of the actual lending portfolio will depend on the rate of progress in key reform areas . . . In the area of CDD, for example, early commitments will be kept modest compared with needs . . . Further support could be expanded as implementation gathers pace and disbursement mechanisms prove their effectiveness."
Progress on privatisation (of utilities including water); uniform privatisation regulations approved.
Nigeria Interim Country Assistance Strategy 2002.
Related projects:
Lagos Upgrading project (FY02) (No available information)
Rural infrastructure project (FY03) (No available information)
Lagos Water Sector Restructuring Project (pipeline)—no project appraisal documents available
NigeriaTrigger
  
Performance Indicators
WBPSP arrangement for delivery of Lagos water effective;
Increase in customers billed from 110,000 to 220,000 and collections increased from 30 million to 60 million per month;
Emergency rehabilitation of critical system components completed (Objective: implementation of emergency action plan to ensure LSWC—Lagos Sanitation and Water Company—remains operational and becomes attractive to potential bidders during the PSP transaction preparation period).
PAD Privatization Support Project 2001
  
Objective: "Reduction of the role of the state in commercial activities . . . creating an enabling environment that promotes private sector participation in the economy, and in particular in the provision of . . . urban water sectors."
NigeriaPerformance Indicators WBIncreased engagement of private sector in provision of water supply and sanitation services;
A national water and sanitation program acceptable to the government and the Bank (based on the results of the pilot project);
At least 12 Water Consumers' Associations established by end 2000;
At least 12 WCAs having made 10% contribution and three months O&M costs by mid 2001;
At least 12 WCAs accepting responsibility for completed systems by mid 2002 and contributing monthly O&M costs by end 2002.
Increasing use of competing individuals and commercial firms in the delivery of WSS in small towns in pilot states;
Private operators and firms active in large water supply system operation—three by mid 2002.
PAD Small Towns Water Supply and Sanitation Programme—Pilot project 2000
  
Objective: Community based model for WSS delivery in small towns developed and tested, including for PSP.
TanzaniaPerformance Indicators
  
Trigger
WBBring to the point of sale/concessioning Tanzania Telecom Company Ltd; TRC, TANESCO distribution system, DAWASA, Port Services.
Creation of regulatory institution(s) covering Telecom, Rail, Ports and Shipping, Energy and Water.
Regulatory institution(s) fully staffed.
Passed laws governing the regulatory framework for above sectors.
In urban areas support to: decentralization for provision of WSS service; creation of financially autonomous Water Boards and their consolidation; sub-contracting of operations to professional (preferably private) operators;
promoting sound pricing policy; developing local capacities.
DAWASA management transferred to private sector.
Provison of safe and clean water from 48.5% population coverage in 2000 to 55% by the year 2003 in rural areas; and from 68% coverage in 2000 to 75% coverage in 2003 in urban areas.
In rural areas, develop demand driven community identification, preparation and implementation of WSS projects, through local governments and private sector, community management.
Preparation of sector wide programs in health, education, water, agriculture and environment; significant improvement in the implementation capacity of these ministries.
Tanzania Country Assistance Strategy 2000.
Related projects:
Rural WSS Project 2002.
PSAC I & II (no project documents available)
TanzaniaPerformance Indicators WBPrivate operation of WSS in Dar es Salaam;
Revenues from water and sewage services cover all O&M costs and allow for a 10% contribution to the construction costs of the project.
PAD Dar es Salaam Water Supply and Sanitation Project 2003
TanzaniaTriggerWB Preparation of sector wide program in water. Programme Document for Poverty Reduction and Support Credit and Grant 2003
TanzaniaPerformance Indicators WBDemand-based district implementation model validated and operational in 12 Project districts;
Water supply and sanitation conditions improved in about 250 communities in 12 Project districts;
Stakeholder agreement and endorsement (of) the national RWSS program and strategy;
Fully staffed DWST (District Water and Sanitation Teams) and DWSP (District Water and Sanitation Plans) completed in 12 Project districts;
12 audited and certified DWSFs (District Water and Sanitation Funds) operational in 12 Project districts;
RWSS: 250 community identified sub-projects appraised;
250 RWSS sub-projects financed from DWSF and constructed in eligible communities.
PAD Rural Water Supply and Sanitation Project 2002
TanzaniaStructural benchmark IMFComplete evaluation of financial proposals for Dar es Salaam Water and Sewerage Authority (DAWASA) and begin final negotiations. Select winning bidder for DAWASA. Tanzania Memorandum of Economic and Financial Policies 1999
TanzaniaPolicies agreed with the IFIs—no indication if they are performance criteria, structural benchmarks or performance indicators. IMF & WBSet up semi-autonomous water boards in regional headquarters (action taken 1997-98);
Reviewed rural water policy (action taken 1997-98);
Complete review of water policy;
Develop regulatory framework for urban water supply and sewerage services;
Consolidate the urban water and sewerage authorities;
Restructure urban water supply pricing policy to address economic, financial, and equity objectives;
Transfer management of existing rural water system infrastructure to local communities and introduce a water fund, managed by local authorities.
Tanzania Enhanced Structural Adjustment Facility Policy Framework Paper 1998-99 to 2000-01
UgandaPerformance Indicator
  
Trigger
WBPRSC2 (April 2002)—Ministry of Water, Lands and Environment (MoWLE) and Ministry of Financial Planning and Economic Development (MoFPED) have selected a transaction advisor for privatising National Water and Sewerage Corporation (NWSC) operations.
NWSC has adopted a formula for periodic tariff adjustment.
PRSC3 (April 2003)—MoWLE/DWD prepares a support program for private sector implementation agents;
PRSC 4 (April 2004)—MoWLE/DWD implements the support program for private sector implementation agents.
(Outcome: Private sector based maintenance strategy and cost recovery policy operational in most districts.)
Programme Document Poverty Reduction and Support Credit 2 2002 (not active)
UgandaPerformance Indicators WBPRSC1 (March 2001)—MoWLE/DWD has gazetted 15 urban WSS authorities and has initiated the appointment of private sector contractors to manage the authorities;
PRSC2 (March 2002)—MoWLE and MoFPED initiate selection of private operator for NWSC and prepare legal framework;
MoWLE/DWD gazettes 30 urban WSS authorities and appoints private sector management contracts to manage them;
PRSC3 (March 2003)—PoFPED and MoWLE establish an asset-holding authority, privatise WSS operations and appoint regulator;
MoWLE/DWD gazettes the remaining 20 urban WSS authorities and appoints private sector management contracts to manage them.
(Outcome: Private sector based maintenance strategy and cost recovery policy operational in most districts.)
Presidents Report on the Poverty Reduction and Support Credit 1 2001 (not active)
UgandaTrigger (for low case scenario)
  
Performance Indicator
WBA declining share of public resources allocated to and spent in the anti-poverty programs;
Unsatisfactory implementation of the Poverty Eradication Action Program/PRSP program in key poverty reducing sectors where there are sector wide approaches.
Increase rural WSS coverage from 40% to nearly 82% by 2002-03.
Country Assistance Strategy 2000
UgandaPerformance Indicator WBIncreased delivery of basic public services by the private sector. PAD Local Government Development Program 1999
UgandaPolicies agreed with the IFIs—no indication if they are performance criteria, structural benchmarks, or performance indicators. IMF & WBComplete review of water sector policy;
Take decision on increasing private participation in National Water and Sewerage Corporation (NWSC);
Allow NWSC to make tariff changes as needed to cover marginal costs;
Increase government funding in sector.
Enhanced Structural Adjustment Facility Policy Framework papers 1998-99 to 2000-01 and 1999-2000 to 2001-02
UgandaPolicies agreed with the IFIs—no indication if they are performance criteria or structural benchmarks IMF & WBRefine and adapt policies and guidelines for improved water supply and sanitation service delivery in rural areas and towns;
Allow NWSC to make tariff changes as needed to cover marginal costs.
Enhanced Structural Adjustment Facility Policy Framework Paper 1997-98 to 1999-2000
ZambiaPerformance Indicator WB100% of urban population and 50% of rural with access to reliable and safe water by 2004;
Increase in water tariff collection.
Government actions include: preparations to launch water resource management policy and strategy; support local capacity building and decentralization; support proper management of WSS systems.
Country Assistance Strategy for Zambia FY2000-02.
Related projects:
Urban Restructuring and Water Supply Project 1995—Objective:
Water Supply and Sanitation Rehab, Community-based Demonstration Projects and Capacity Building (Project closed—no PAD available);
Public Service Capacity Building (FY00)—Objective: support for Zambia Privatization Agency; decentralisation of public services; staff reductions; divesture of public enterprises; improved financial management (Active).
Local Development Fund (FY01)—(no information).
Local Government/Urban project (FY04)—(no information).
BangladeshBase case trigger
  
High case trigger Performance Indicators
WBFormulation of a satisfactory National Water Management Plan and steps taken to reorganize and reform the Bangladesh Water Development Board (BWDB) (to facilitate CDD);
Commercialization of BWDB's dredging and mechanical equipment organizations.
Improved services due to greater capacity of local governments and communities to slect and implement projects;
Satisfactory National Water Management Plan (NWMP) proposed;
Increase in community-implemented and maintained WSS schemes.
Bangladesh Country Assistance Strategy 2001 (FY01-03).
Related projects:
PAD Arsenic Mitigation—Water Supply Project 1988;
Water and Sanitation Sector Improvement Project (proposed).
BangladeshTriggerWB Adoption of the National Water Policy. Bangladesh Country Assistance Strategy Progress Report 1999.
BangladeshPerformance criteria WB"Partnership and Participatory Approach" designed in agreement with the Bank. PAD Municipal Services Project 1999.
BangladeshPerformance criteria WBIncreased capacity of communities, local and central government, NGOs and the private sector in participatory planning and design, and in O&M of water supply systems;
Increased capacity of DPHE to support demand-driven and decentralized sanitation projects;
Improved cost recovery in rural and urban schemes;
A substantial number of CBOs organized, empowered and operational.
PAD Arsenic Mitigation—Water Supply Project 1998.
IndiaPerformance Indicators WBFiscal reform: better cost recovery for service provision.
Governance reform: Reorientation of the state away from areas where credible private sector alternatives exist;
Urban Water Supply and Infrastructure: Greater private sector participation in urban services, especially water, leading to reduced fiscal burden and increased coverage and quality;
Improved service delivery and access to urban infrastructure for all, especially poor.
A2. b: Accelerated Rural Growth: Increased water supply and sanitation coverage in rural areas;
Increased area under irrigation, and productivity per unit of water;
Improved cost recovery for O&M of irrigation systems.
India Country Assistance Strategy FY02-04
For progress with these indicators see:
India Country Assistance Strategy Progress Report 2003, Annex B7.
  
Related projects:
Karnataka Water & Urban Management (FY02)—pipeline, no documents available.
Karnataka Rural Water Supply and Sanitation II (FY02).
Rajasthan Water Sector Restructuring (FY02).
Uttar Pradesh Water Sector Restructuring (FY02).
Maharashtra Rural Water Supply and Sanitation (FY04).
Madhya Pradesh Water Sector Restructuring (FY04)—project in pipeline, no Project Appraisal Document available.
Gujarat Urban Reform (FY03)—project in pipeline, no Project Appraisal Document available.
Karnataka Municipal Capacity Building (FY04)—project dropped.
Tamil Nadu Rural Water Supply (FY04)—no information available.
IndiaPerformance indicators WBState wide application of demand-based participatory approach to RWSS service delivery;
State subsidies for RWSS investments reduced.
Decentralization of RWSS: 75% of (project) VPs planning. implementing and managing sustainable RWSS services; 90% of VPs accessed project funds.
CDD: 75% VWSCs (Village Water and Sanitation Committees) constituted, trained in skills development and fully managing scheme operations.
PAD Maharashtra Rural Water Supply and Sanitation Project 2003.
IndiaPerformance Indicators WBEmpower users to manage tank systems;
Community-based, self-supporting, and sustainable Tank User Groups (TUGs) in place and functioning;
Legal and institutional basis for community-based tank management across the state established.
PAD Karnataka Community-based Tank Management Project 2002
IndiaPerformance Indicators WBEstablishment of an effective legal framework to enable user participation in irrigation and drainage infrastructure operation and maintenance;
Creation of State Water Resources Agency and State Water Resources Data and Analysis Centre;
Creation of State Water Tariffs Regulatory Commission;
Greater private- and reduced public-sector involvement in irrigation and drainage systems;
O&M of irrigation system of at least one distributary in the selected sub-basins by the private sector.
PAD Uttar Pradesh Water Sector Restructuring Project 2001
IndiaPerformance Indicators WBCost recovery improved;
Irrigation subsidy reduced;
Restructuring and reorientation of functions of water agencies; increased private sector participation in irrigation systems management.
PAD Rajasthan Water Sector Restructuring Project 2001
IndiaPerformance Indicators WBState-wide application of demand-based, participatory approach to service RWSS delivery;
State subsidies for RWSS investments reduced;
O&M of Rural Water Supply and Sanitation (RWSS) schemes fully funded from user charges alone;
Number of Gram Panchayats (GPs) planning and constructing RWSS improvement schemes;
Number of User Groups managing operation and maintenance of RWSS facilities;
% of state and district RWSS investment funds devolved to GPs and User Groups;
% of GPs/VWSCs financing 100% of O&M costs from user charges alone.
PAD Second Karnataka Rural Water Supply and Sanitation Project 2001
  
Objective: institutionalising decentralisation of RWSS service delivery to Gram Panchayats and user groups.
Cost recovery reforms implemented uniformly across districts.
IndiaPerformance Indicators WBState-wide application of demand based, participatory approach to rural WSS delivery;
State subsidies for new Rural Water Supply (RWS) investments reduced from 100% to 75%;
O&M of new RWS schemes fully funded by direct user charges;
% of capital costs contributed by local communities;
By mid-term review (MTR) cost recovery reforms and new decentralized service delivery model developed, tested and successfully implemented;
By MTR existing singly panchayat water supply schemes owned by the state utility (KWA) and/or GPs are taken over and managed by beneficiary groups;
At end of project O&M of WSS schemes fully financed and managed by BGs in the project GPs;
At end of project GOK has taken a policy decision to scale up the new service delivery model to cover all GPs in the state and begun its implementation in four project districts.
PAD Kerala Rural Water Supply and Environmental Sanitation Project 2000
NepalPerformance Indicators WBPrivate sector managed Kathmandu Water supply;
Increase yearly water supply in the Kathmandu valley to 6 mm cubed and 4 mm cubedoutside of the valley by 2004.
Nepal Country Assistance Strategy 1998.
Related projects:
Urban Water and Sanitation Rehabilitation (closed).
Rural Infrastructure LIL (closed).
NepalPerformance Indicators WBEmergence of consolidated National Water Resources Strategy and Policy and adopted by His Majesty's Government of Nepal;
National Water Planning Unit established.
PAD Irrigation Sector Project 1997
NepalNo Performance Indicator matrix available WBObjective: promote decentralisation and involve beneficiaries and the private sector in RWSS;
CDD investment, O&M of rural infrastructure;
Establish Rural Water Supply and Sanitation Fund Development Board to facilitate CDD and private sector provision of WSS services.
Staff Appraisal Report Rural Water Supply and Sanitation Project—1996.
PakistanPrior Actions
  
Performance Indicators
WBSindh Privatisation commission has been set up . . . in partnership with the private sector and the master list of assets to be privatised (including KWSB waste water plants, water distribution in Landhi, Korangi) has been approved;
Completion of privatisation in the following categories of assets
(1) lands and other unutilized assets, (2) state corporations which in many cases are no longer operating, (3) large enterprises (KWSB waste water plants and sugar mills).
Adopt/reinforce policy of community participation, involvement and cost sharing as the guiding principle for all RWSS schemes (FY02);
Implement all RWSS schemes with community participation and maintenance arrangements.
Mobilize communities to share costs of provision and O&M (FY03-05).
IDA programme document for a structural adjustment credit for the Government of Sindh Province, 2002 (non active).
PakistanPerformance Indicator WBIncrease irrigation water charges (Abiana) in FY02 by 25%. IDA Programme Document for a Structural Adjustment credit for the Government of North West Frontier Province 2002 (non active).
PakistanPerformance Indicators WBImproved infrastructure (RWSS) quality, efficiency, and growth;
CDD development of service provision;
Greater private provision of infrastructure.
CAS 2002.
October 2003





81   These countries are Burkina Faso, Ghana, Madagascar, Malawi, Mali, Mozambique, Nigeria, Tanzania, Uganda, Zambia, Bangladesh, India, Nepal and Pakistan. The investigation looked into WB Country Assistance Strategies (CAS) and Project Appraisal Documents (PAD), and IMF Enhanced Structural Adjustment Policy Framework Papers and Memoranda of Economic and Financial Policies. Back

82   The table of water supply and sanitation-sector related conditions are enclosed with this summary. Back

83   This is not an exhaustive list of projects or programmes containing WSS-related conditions, nor an exhaustive list of conditions. The focus is on those that specify PSP in WSS service delivery or that contain actions that may lead to PSP or promote conditions favourable to PSP. Projects are "active" unless otherwise indicated. Back


 
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