News

May 2014 Water Finance Update

ebrd-worldbank-adb-gef-eib-afdbMay 2014: During May, international and regional financial institutions, including the World Bank, the Global Environment Facility (GEF), the African Development Bank (AfDB), the Asian Development Bank (ADB), the Inter-American Development Bank (IDB) and the European Bank for Reconstruction and Development (EBRD), undertook a variety of actions related to water resources, including presenting the results of existing projects, participating in regional conferences and approving new loans. Projects this month addressed issues including transboundary water cooperation, water supply and sanitation, hydroelectric generation, disaster risk reduction (DRR) and ecosystem service conservation, among others.

The World Bank, in advance of the Fifth Africa Water Week (AWW-5), which is taking place from 26-31 May, in Dakar, Senegal, highlighted outcomes of the Cooperation in International Waters in Africa (CIWA) project. CIWA also convened its Third Consultative Group Meeting on 27 May 2014, in parallel with AWW-5, to identify opportunities for transboundary water cooperation in the context of partnerships with the Volta Basin Authority (VBA), Niger Basin Authority (NBA), Lake Chad Basin Commission (LCBC) and the Economic Community of West African States (ECOWAS). [World Bank Press Release: Africa Water Week] [World Bank Press Release: CIWA] [World Bank Press Release: Niger Basin] [World Bank Press Release: Volta Basin] [World Bank Press Release: Nile Basin] [World Bank Press Release: Zambezi Basin]

The World Bank also presented results from the Punjab Irrigated Agriculture Productivity Improvement Project (PIPIP) in the Attock District of Pakistan. The project helped increase irrigation efficiency and engaged stakeholders through the establishment of a Water Users Association (WUA). [World Bank Press Release: Pakistan]

US$50 million was approved by the World Bank through the International Development Association (IDA) for the Irrigation and Land Market Development Project in Georgia. The project aims to improve irrigation and drainage services to 31,000 farming households. [World Bank Press Release: Georgia]

The World Bank also approved a US$84.6 million package from the IDA, the International Finance Corporation (IFC) and the Canada Climate Change Program (CCCP) for the Kabeli-A Hydroelectric Project in Nepal. The project will reduce energy shortages in Nepal, which have been identified as a barrier to poverty reduction in the country. [World Bank Press Release: Nepal]

The Drina Flood Protection Project in Bosnia and Herzegovina received a US$24 million credit from the World Bank. The project will rehabilitate dike systems to reduce flood vulnerability and increase resilience of communities and the agriculture sector. [World Bank Press Release: Bosnia and Herzegovina]

The World Bank will provide US$83 million in additional funding for dam safety in Sri Lanka. The Dam Safety and Water Resources Planning project is an ongoing project targeted at 32 high risk dams that provide water for irrigation, domestic supply and electricity generation. [World Bank Press Release: Sri Lanka]

The GEF CEO approved US$1.7 million in funding for the Ridge-to-Reef (R2R) Integrated Environmental Management of the Fanga'uta Lagoon Catchment project in Tonga. The project aims to achieve ecosystem service conservation through integrated land, water and coastal management. [GEF Project Brief: Tonga]

The GEF CEO also endorsed US$7 million in funding from the Least Developed Countries Fund (LDCF) for the Adapting Natural Resource Dependent Livelihoods to Climate Induced Risks in Selected Landscapes in Burkina Faso project. The project will help reduce vulnerability to climate change by in the Mare d'Oursi Wetlands Basin by addressing natural resource management. [GEF Project Brief: Burkina Faso]

The AfDB held its Annual Meetings in Kigali, Rwanda, from 19-23 May 2014, which included a session on “Building Water Resilience” in Africa. The meeting highlighted the importance of raising the profile of water management planning processes, while noting the challenge presented by climate variability and emphasizing that water stress can impact achievement of the Millennium Development Goals (MDGs). The session called for governments to involve the private sector in water infrastructure development, build the resilience of Africa's freshwater resources, harness innovative approaches to water security and engage in good water governance. [AfDB Press Release: Annual Meeting 1]

The AfDB also presented an overview of their investments in 2013 in water supply and sanitation. The Bank dispersed approximately US$553 million in funds across the water supply and sanitation sectors through the Rural Water Supply and Sanitation Initiative, the African Water Facility (AWF) and the Multi-Donor Water Partnership Program to projects in 18 member countries. [AfDB Press Release: Annual Meeting 2]

The AfDB provided US$820,000 in emergency funds to address the impacts of flooding in Mauritania, with the Bank highlighting the importance of addressing climate change, in particular increasing resilience of poor and particularly vulnerable populations. [AfDB Press Release: Mauritania]

The AfDB approved US$127 million for a water and sanitation project in Senegal. The project achieves core AfDB objectives of providing sustainable drinking water and sanitation and in meeting the MDGs. [AFDB Press Release: Senegal]

The AfDB also provided a series of loans and grants, US$23 million from the African Development Fund (ADF), US$7.7 million from the Nigerian Trust Fund (NTF), and US$4.8 million from the Rural Water Supply and Sanitation Facility to support the Sustainable Rural Water and Sanitation Infrastructure for Improved Health and Livelihoods Project in Malawi. The project will increase access to water supplies and sanitation, improve water resource resilience and promote sustainable community management of water supply and sanitation facilities. [AfDB Press Release: Malawi]

The ADB highlighted outcomes of a project in China to provide clean water in urban environments. The project, which channeled US$200 million in loans to the China Water Affairs (CWA) Group upgraded water supply systems, and improved water distribution and customer services. [ADB Press Release: China]

The ADB also outlined joint efforts with Japan to improve water and sanitation infrastructure in Myanmar. The objective of the project is to build 2,000 latrines, construct 17 kilometers of drains, and build capacity through establishment of 100 Community Development Committees. [ADB Press Release: Myanmar]

The IDB will provide US$170.8 million to Brazil to improve water supply in Brasilia. The project will expand the sewerage system and strengthen operational management, as well as install hydrometers. [IDB Press Release: Brazil]

The IDB approved US$500,000 for a study to assess the potential and groundwater levels of the coastal aquifer in Suriname. The study will provide the government with information to improve water resource management. [IDB Project Brief: Suriname]

Kyrgyzstan received €8 million from the EBRD, as part of a combination of funds from the Swiss State Secretariat for Economic Affairs (SECO) and the Special Climate Change Fund (SCCF) to rehabilitate and modernize water and wastewater infrastructure. The loan, provided to the Bishkek Water Company, will increase the quality and reliability of water services. [EBRD Press Release: Kyrgyzstan]