Bank Netherlands Water Partnership Water Supply & Sanitation Windows Progress Report Fourth Quarter, 2002 October 1 to December 31, 2002 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 Fourth Quarter, 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 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 fourth quarter of 2002 (October 1 to December 31, 2002). 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 fourth quarter of 2002 focused on the development of a number of prequalified flagship projects, while various smaller activities were ongoing or started implementation. Also a start was made with the development of a second generation of activities and projects. 2 3.1 New projects and activities Six new activities were started up: Methodology of Baseline Analysis of Water Distribution Performance (#062) - producing a flexible framework to help project officers and regulatory agencies to develop appropriate and cost-effective baselines for water utility performance. Does Community Involvement Improve Performance of Water Supply Projects? Evidence from the Philippines (#064 ) -Looking into the household decisions to connect to the piped water system and an evaluating of the effectiveness of community/ user involvement in the design of water supply initiatives in the Philippines Sanitation Sector Study for Indonesia (#066) - Developing an action plan for sanitation in Indonesia, including assessment of existing situation and evaluation of existing incentives Development of a Tool for Regulatory Oversight of Water Utilities: A Cash Flow Equilibrium Model (#071) - developing a more generic dynamic financial model that can be utilized more generically and can serve as an important analytical tool for policy makers as well as professionals. Improving Policy and Business Environments for Small Scale Providers of Water Supply and Sanitation Services (074) - enhancing the global understanding of SSPs, their importance in the water supply and sanitation sector, and the impact of the policy and business environments in which they operate 3.2 Closed projects and activities No projects and activities were finalised in this quarter. 3.3 Events The BNWP co-ordination team presented progress of the first nine months of the program at the Dutch Water Week in October 2002. BNWP co-sponsored the start up workshop of the BNWP project on "Trends in the Desalination Market in the Middle East and Central Asia" in December 2002. 3.4 Program management The BNWP website (www.worldbank.org/watsan/bnwp) was maintained to include a searchable database of projects and activities. The new TF structure was finalized. 4. Overview of present portfolio The total value of the present portfolio of projects and activities is USD 6.6 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. 3 This approved budget of USD6.6 million leverages cofinancing of USD1.3 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 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 was made during this quarter to increase the number of projects on sanitation and hygiene in order to balance the portfolio, resulting in a number of new activities. An extra effort is needed on financing systems and capacity building. per region per deliverable per window Global Rural WSS advice on approaches Africa Urban WSS East Asia & Pacific policy awareness and dialogue Financing systems Europe & Central Asia synthesised knowledge & Sanitation & hygiene Latin America & Carribean info research & development Capacity building Mediterranean & N. Africa 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. 4 The total expenditure between October 1 to December 31, 2002 was USD245,699. This is 98% of the planned budget for the fourth quarter of 2002. The BNWP was still building up activities in the fourth quarter of 2002, disbursements are still relatively low. The outputs achieved in the fourth quarter amount to 95% 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 95% 44,800 37,443 84% Reform of urban WSS 89% 19,000 16,514 87% Dev. of sustainable financing systems 75% 12,500 9,975 80% Sanitation and hygiene promotion 107% 67,000 72,034 108% Capacity building 95% 6,700 5,543 83% Program coordination N/A $100,000 $104,190 104% Grand total 103% $250,000 $245,699 98% Indicates that % of spent budget > % of reached target 6. Plans for next quarter The BNWP will be at cruising speed during the first 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 N/A 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 N/A 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 Nov 02 ­ May 04 N/A 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 03 119% 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 03 100% 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 50% 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 Operational Apr 02 ­ Jan 03 100% "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 89% supply services environment for successful scaling up of sustainable rural water supply services, such as demand response approaches 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 6 competitiveness, and the firms' coping mechanisms # Title Short description Approved Windows Current status Project period budget (USD) 033 Modes of engagement with public Developing better performing public sector water 628,000 Urban WSS Operational Jun 02 ­ Dec 04 83% 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 100% 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 03 100% Sanitation means of providing water and sanitation services in Urban WSS 02 small and medium sized towns and in marginal urban areas 7 # Title Short description Approved Windows Current status Project period Quarerly budget (USD) performance 054 Development of an African Sanitation Assessing the state of sanitation and hygiene in 50,000 Hygiene & Operational Jun 02 ­ Sep 02 68% 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 and hygiene in Africa 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 72% 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 N/A 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 Sep02 ­Sep03 N/A 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 N/A 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 N/A 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 N/A 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