News

April 2014 Water Finance Update

worldbank-idb-afdb-ebrd-gefApril 2014: Throughout April 2014, the World Bank, Global Environment Facility (GEF), Asian Development Bank (ADB), Inter-American Development Bank (IDB), African Development Bank (AfDB) and European Bank for Reconstruction and Development (EBRD) approved finance for and highlighted results of projects across Africa, Latin America, Asia and Europe, as well as in small island developing states (SIDS) to: improve water supply and sanitation; build urban and rural water infrastructure; reduce water-related disaster risk and increase climate resilience; improve agricultural water efficiency; construct hydro-power facilities; protect aquatic biodiversity; and promote transboundary water cooperation.

The World Bank approved a US$100 million grant for Burundi through the International Development Association (IDA), which was established in 1960 to provide grants to the poorest countries in the world. The Jiji and Mulembwe hydropower project will provide 48 megawatts (MW) of electricity to meet demand that is expected to increase in Burundi from 46 MW in 2012 to 192 MW by 2025. The project was developed in consultation with local communities, who identified energy as a priority to grow local economies. [World Bank Press Release 22 April 2014 1] [World Bank Press Release 22 April 2014 2]

For a project in Nigeria, the World Bank approved a US$250 million credit through the IDA. The Third National Urban Water Sector Project aims to increase water supply service access and improve the financial and management viability of water utilities in state capitals. The project includes two components, the first to rehabilitate or build water infrastructure and institutions to expand water supply access in Bauchi, Ekiti and Rivers States. The second will provide technical assistance and finance to state governments to prepare them for future large water supply investments. [World Bank Press Release 18 April 2014]

The World Bank also approved US$13 million for the Gaza Solid Waste Management Project in Palestine, which will improve solid waste management in Gaza, and the North Gaza Wastewater Treatment Project, which will provide a modern wastewater treatment facility and develop a programme to reuse treated effluent for irrigation. The project also aims to develop institutional capacity for long-term plant management. [World Bank Press Release 14 April 2014]

Bulgaria requested analytical and advisory services from the World Bank on implementation of the Water Supply and Sanitation Strategy 2014-2023, which was approved by the Bulgarian Government on 2 April. The agreement between the Bank and Bulgaria will build the capacity of the State Energy and Water Regulatory Commission. The European Union will provide 30-40% of the funds necessary for the distinctive knowledge partnership with the World Bank. [World Bank Press Release 4 April 2014]

Reflecting on outcomes of ongoing projects, the World Bank highlighted project results from the Punjab Irrigated-Agriculture Productivity Improvement Project (PIPIP) in Pakistan, which is improving water productivity through the introduction of high efficiency irrigation systems (HEIS). Farmers and officers from local water management bodies in the Punjab District of Layyah emphasized that the new techniques increase land productivity and reduce labor. [World Bank Press Release 18 April 2014]

The World Bank also outlined results from the Urban Infrastructure Project (UIP) in Ukraine. The project, launched in August 2007, has invested in energy-efficient water and sanitation infrastructure, and efficient and cost-effective services in 14 cities. In follow up to successful results, a Second Urban Infrastructure Project is under development to channel US$350 million towards water and sanitation and strengthening provision by municipal service providers. [World Bank Press Release 15 April 2014 1]

In Liberia, the World Bank presented a micro-hydro project, which was rehabilitated by the Rural and Renewable Energy Agency (RREA), supported by the bank's Africa Renewable Energy and Access Program (AFREA). The micro-hydro plant in Yandohun, which was destroyed during the civil war, has been rehabilitated and is providing 169 homes with power. [World Bank Press Release 15 April 2014 2]

The World Bank also highlighted outcomes of a project to develop an integrated monitoring and participatory management system to reduce biodiversity degradation in the Gulf of Gabes, Tunisia. Among issues addressed by the project include water conservation, investment in urban wastewater treatment and industrial pollution control, and as the activities move forward application of participatory approaches will continue. [World Bank Press Release 15 April 2014 3]

The World Bank presented lessons learned from the Groundwater and Soil Conservation Project in Yemen, which improved irrigation water use efficiency and supported a groundwater management framework and institutions to build capacity for sustainable management of local water resources. Farmers identified reduced labor, increased yields and water savings as benefits of the project. [World Bank Press Release 15 April 2014 4]

Results from the Irrigation and Water Resources Management Project (IWRMP), in Nepal, were explored by the World Bank. The project has focused on improved management of irrigation systems in Nepal and enhancing institutional capacity for integrated water resources management (IWRM). The project also established a Water Resources Information Center (WRIC) and a Water Resources Information System (WRIS), which collects and disseminates water data to stakeholders, and supported and strengthened water users associations (WUAs). [World Bank Press Release 11 April 2014]

In India, the World Bank highlighted project outcomes of a project in Punjab, which has installed household water meters in 100 villages and provided round-the-clock water supply to over 40 villages. The project aimed to mobilize communities to create local institutions for programme implementation and promote the shift towards payment for water services. Since 2007 1.6 million people have been able to access improved water supplies through the project. [World Bank Press Release 10 April 2014 1]

The World Bank presented outcomes from the Red River Delta Rural Water Supply and Sanitation Project in Viet Nam, which has provided access to clean water for 1.3 million people and resulted in the installation of 48,000 toilets and sanitation facilities since 2005. [World Bank Press Release 10 April 2014 2]

The World Bank also outlined results from the Kapitbisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services Project (KALAHI-CIDSS), which worked with marginalized communities through community-driven development (CDD) approaches to develop local capacity to implement small-scale infrastructure such as for water supplies. [World Bank Press Release 10 April 2014 3]

The World Bank highlighted reconstruction of water supply and sanitation facilities destroyed in 2009 by a Tsunami that struck Tonga. The project aimed to reduce disaster risk through the construction of disaster resistant infrastructure. [World Bank Press Release 10 April 2014 4]

The World Bank highlighted projects to reduce flood risk in the town of Golubac, Serbia, which sits on the Danube River. The Irrigation and Drainage Rehabilitation Project increased and reinforced the embankment of the Danube and installed of a rupture-resistant foil to prevent soil saturation. [World Bank Press Release 3 April 2014]

Outlining outcomes from the Expanding Opportunities Development Policy Loan (DPL) in Pernambuco, Brazil, the World Bank noted the project improved water security and disaster risk management. The project developed a record of water users and established a flood risk early warning system. [World Bank Press Release 4 April 2014]

The World Bank also presented results from the Integrated Disaster and Land Management Project, which helped restore fisheries in Boko Lake, Togo, and reduce flood risk while strengthening resilience to climate change. The project supported the establishment of a Village Development Committee (VDC), which engaged the local community in the rehabilitation of a drainage canal. The project was particularly successful at engaging women within the community. [World Bank Press Release 1 April 2014]

The GEF endorsed US$8.75 million in additional financing for the Sustainable Land and Water Management Project in Ghana, in order to expand the application of sustainable land and water management practices in watersheds to reduce land degradation and maintain biodiversity. [GEF Latest Approved Projects Ghana]

The GEF approved project preparation grants (PPGs) from the GEF Trust Fund for a number of projects including on: integrated development for increased rural climate resilience in the Niger Basin; integrated transboundary ridges-to-reef management of the Mesoamerican Reef; IWRM in the Titicaca-Desaguadero-Poopo-Salar de Coipasa (TDPS) system; integrated water and environment management mainstreaming in the Bohai Sea; transboundary cooperation and integrated natural resources management in the Ural River Basin; conservation, sustainable use of biodiversity, and maintenance of ecosystem services in protected wetlands of international importance; sustainable management of peatland ecosystems in Indonesia (2014-2018); GEF International Waters Learning Exchange and Resources Network (IW-LEARN); and mainstreaming biodiversity conservation and sustainable use into inland fisheries practices in freshwater ecosystems of high conservation value in Indonesia. The GEF Council approved the PPG under the Special Climate Change Fund (SCCF) for the West Balkans Drina River Basin Management Project. [GEF Trust Fund Latest Approved Projects] [SCCF Trust Fund Latest Approved Projects]

The GEF CEO endorsed several Least Developed Country Fund (LDCF) Trust Fund grants, including on: building adaptive capacity to catalyze active public and private sector participation to manage the exposure and sensitivity of water supply services to climate change in Sierra Leone; enabling climate resilience in the agriculture sector in the southwest region of Madagascar; and strengthening the resilience of rural livelihood options for Afghan communities to manage climate change-induced disaster risks. [LDCF Trust Fund Latest Approved Projects]

The AfDB highlighted research by the Observatory of the Sahara and the Sahel, funded in part by the African Water Facility (AWF) which helped Algeria, Benin, Burkina Faso, Mali, Mauritania, Niger and Nigeria to sign a collaborative agreement on development, protection, conservation and equitable utilization of transboundary aquifers. [AfDB Press Release]

The ADB, with Norway and Japan, is working on two projects in Bhutan to improve clean energy and water resources. The project will help complete the National IWRM Plan and the National Irrigation Plan, as well as build capacity in the field of water governance. The project will also study development of the Shongarchhu, Dagachhu-II and the Manas hydroelectric plants. [ADB Press Release 11 April 2014]

The ADB approved US$81.7 million, with support from Australia, to assist Cambodia with flood recovery, including reconstruction of infrastructure in a climate resilient manner. [ADB Press Release 23 April 2014] Also approved, was a US$200,000 grant to the Solomon Islands for humanitarian relief following severe floods, in addition the ADB is participating in damage assessments. [ADB Press Release 16 April 2014]

The IDB approved a regional project, Investigation of the Effects of Intermittent Water Supply on Drinking Water Quality, which will study water quality, pressure transient and leakage measurements in four areas reflecting different supply conditions to assess the impact of intermittency on water quality. [IDB Press Release]

The EBRD highlighted outcomes from a project to modernize water treatment in Brno, the Czech Republic, in part to prevent pollution of the Danube. The EUR42.5 million loan helped improve the operating structure, which enabled additional investments to update the local sewerage network. [EBRD Press Release]