Model Terms of Reference: Water Sector Reforms: Tracking Progress in Asia and the Pacific

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Asian Development BankTA 6123-REG

Promoting Effective Water Management Policies and Practices

Water Sector Reforms:Tracking Progress in Asia and the Pacific

June 2004

By M. P. Mosley, Wouter Lincklaen Arriens, and Ellen Pascua



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EXECUTIVE SUMMARY

This report presents the findings from Phase 1 of the comparative analysis of water sector reforms that the Asian Development Bank (ADB) is pursuing. The ADB’s water policyprovides that ADB will promote regional and sub-regional exchange of information andexperiences in water sector reforms and support programs of comparative analysis andresearch that effectively underpin national policies and plans.

Results of the comparative analysis will be used to generate insights into: (i) what worksunder what circumstances, (ii) what are the preconditions for success in pursuing reforminitiatives, (iii) are there commonalities that can be useful in sub-regional and cross regionalcontexts for sharing experience.

Phase 1, which is the subject of this report, is basically a fact-finding exercise to: (i) providean overview of the status of the water sector and sector reforms in a sample of ADB’sdeveloping member countries (DMCs); (ii) map out the scope of the comparative analysis,identify needs and priorities, and recommend a process for undertaking the comparative

analysis; and (iii) assess linkages and make recommendations for related initiatives tocatalyze the ADB’s water policy, for example, opportunities for regional initiatives in capacitybuilding and research.

In 2003, ADB’s Water Sector Committee undertook an in-house interim review of ADB’swater policy implementation, to assess whether the policy has been integrated consistentlyinto ADB operations through the design of loans and TAs after the approval of the policy in2001. The interim review identified forty (40) policy actions. To provide continuity with thatinterim review, this Study has considered the same 40 policy actions but re-stated them intooutputs and outcomes to assess what has been done (output) and describe what has beenachieved (outcome), progress on which was ranked (on a four-class scale) in aquestionnaire.

A sample of 17 DMCs was included in the Study. Selection was quasi-random (i.e. countrieswere not chosen because of any preconceived ideas about their likely progress inintroducing sector reform). Using a wide range of ADB, World Bank and other documents,and interviews with ADB officers, progress on the 40 outcomes was appraised for the 17countries.

The four-scale ranking in the questionnaires can be taken as indicators of progress inadopting and implementing the 40 policy actions in each country. Broadly:

A - means little or no progressB - mean some progress

C - means good progressD - means excellent progress

The simple index proportion of countries achieving good to excellent progress in adoption(classes C+D) may be used to aggregate the data for all countries, to provide a region-wideoverview of progress. Progress ranges from 94% of countries in classes C+D for policyaction pertaining to “water-related policies adopted by government”, down to 7% of countriesin classes C+D for “O&M costs are wholly paid by beneficiaries”.

The data show that greatest progress has been made with the “foundational elements”,which is logical and encouraging. Several of the weak progress seem to have in commonthat they are associated with a transfer of responsibility from the traditional lead governmentagencies to other stakeholders.



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In recommending a scope for a future full comparative analysis, this Study examined threerecently applied models of policy reform and institutional change which indicate that acomparative analysis of water sector reforms should consider a number of key factors thatare likely to influence the success of reform measures. These factors include:

• the political environment• activities of external support agencies• engagement of “elite” decision-makers• the socio-economic environment• crisis events• the nature of performance/output gaps• the approaches used to policy reform• the stage and trajectory of reform• the results that flow from reform and change, including most importantly, the

outcomes and impacts on society

A preliminary analysis of the data compiled for this report indicates that the above factors

have influenced water sector reform in ADB’s developing member countries (DMCs). Theyshould be considered in a full comparative analysis and they appear to provide a sufficientlycomprehensive “net” in which to capture the key dimensions of change. Its is consideredthat the 17 countries included in the present study be included in a follow-up full comparativeanalysis, possibly supplemented by others to extend the range of conditions covered. Theelements of the ADB water policy provide a policy framework that is consistent wit work todate.

On-going comparison needs to be incorporated into a sustainable approach to water sector reform and institutional change, because of the need to monitor progress and developappropriate responses. On-going comparison can be against nationally defined objectives(e.g. the Millennium Development Goals), internationally accepted yardsticks or goals (e.g.National Quality Award Criteria), or comparable benchmark institutions.

The Water Sector Committee has drafted a comprehensive Capacity Development Programfor the Water Sector. The principal groups of beneficiaries are ADB staff and DMCrepresentatives. It is recommended that the ADB should:

• develop and actively encourage methods (e.g. mentoring, joint missions, peer reviewof work) for transferring knowledge, information, and technology among its staff;

• draw on this status report and proposed comparative analysis to target capacitydevelopment on sector reforms that are most appropriate to national circumstances,

offer the greatest opportunity for successful implementation, and/or present thegreatest challenges for achieving sustained reform; and

• maintain its support to regional networks that can provide efficient linkages for transferring knowledge, information, and technology among DMC representativeswho are engaged in particular elements of sector reform.



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ABBREVIATIONS

ADB Asian Development BankCAS Country Assistance StrategyCSP Country Strategy and ProgramDMC Developing Member CountryESA External Support AgencyGDP Gross Domestic ProductGWP Global Water PartnershipIWMI International Water Management InstituteKIT Knowledge, Information, and TechnologyMDG Millennium Development GoalsNWSP National Water Sector ProfileO&M Operation and MaintenanceOED Operations Evaluation Division, ADBPID Project Information Document

PRSP Poverty Reduction Strategy and ProgramRRP Report and Recommendation of the PresidentRSDD Regional and Sustainable Development Department, ADBTA Technical AssistanceUNESCO United Nations Educational Scientific and Cultural OrganizationWB World BankWMO World Meteorological OrganizationWSS Water Supply and Sanitation



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TABLE OF CONTENTS

I. Introduction 6

II. Purpose 6

III. Scope of Phase 1 and Methodology Used

A. Choice of Methodology 7B. Countries Included in the Review 8C. Data Collection and Sources of Information 8D. Organization of the Data and Data Quality 9

IV. Water Sector Reforms in the Region: Progress to Date

A. Region-wide Adoption of Policy Actions 9B. Factors Influencing the Progress of Reform in the

Water Sector: Preliminary Findings 11C. Influence of Environmental Factors: Regression Analysis 17

V. Comparative Analysis of Water Sector Reform

A. The Need for Comparative Analysis of Water Sector Reforms 19B. Countries and Policy Elements to be Considered in a 20

Comparative AnalysisC. On-Going Comparison as a Tool for Improvement 20

VI. Linkages with Capacity Building 22

References 25

Appendix 1: Forty Water Policy Actions (as used in the interim review of ADB water policy implementation)

Appendix 2: Methodologies for Water Sector Appraisal – Brief Commentaryon ADB and World Bank Approaches

Appendix 3: Questionnaire – The Status of the Water Sector in ADB’s DMCs

Appendix 4: Summary Notes on the Dialogue on Water Sector Reform, ADB,26 January 2004

Appendix 5: Histograms of Policy Action Adoption

Appendix 6: Country Briefs

Appendix 7: Review of Three Models of Policy Reform and Organizational Change

Appendix 8: Draft TOR for Lead Consultant on Water Sector Reform

Appendix 9: Draft TOR for National Specialist on Water Sector Reform



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I. INTRODUCTION

1. Since the Second World Water Forum in the Hague in 2000, internationaldevelopment organizations, as well as some bilateral donors and governments began aconcerted effort to seriously overhaul sector policies and institutions with the goal of improving governance and addressing water management in a holistic manner. However,while specific sector reform measures differ from country to country, actual progressachieved is not well documented and even with the slowly growing body of case studies onthe subject, the indicators tend to be fragmented, thus precluding their aggregation so as toprovide a global or regional perspective on the state of progress in instituting reformmeasures.

2. The envisioned cross fertilization of lessons learned and good practices between andamong countries is not happening, thus missing out on the opportunity to identify certaincommonalities that can be useful in the sub-regional and regional sharing of lessons.Clearly, there is a need to build the body of information about how sector reforms areprogressing in ADB’s Developing Member Countries (DMCs) and gain appreciation of the

so-called “political economy of reforms” – what makes reform happen?. Why is reformtaking place in some countries but not in others? What works and what does not work under what circumstances? What facilitates or hinders the reform process?

3. Understanding the political economy of reform in DMCs is key to ensuring that ADBoperations reflect a good appreciation of what can be reasonably expected from DMCs interms of reform measures vis-à-vis its country-specific circumstance, keeping in mind thatreform measures need to be specific to each country.

4. The ADB’s water policy provides that ADB will promote regional and sub-regionalexchange of information and experiences in water sector reform and support programs of comparative analysis and research that effectively underpin national policies and plans. This

could initially start with a study on water governance involving the establishment andperformance of water sector apex bodies, water policies, water laws, water sector agendas,and river basin organizations.

7. Furthermore, the capacity needs assessment carried out within ADB in 2002 broughtto fore the need to support capacity building interventions for ADB staff and DMCs tofacilitate and shepherd the water sector reform process.

II. PURPOSE

8. The purpose of the comparative analysis of water sector reforms is to assist ADBregional departments advance the work in DMCs on reform measures. Findings from the

exercise will be used to: (i) improve introduction of strategies and processes for undertaking reforms; (ii) prioritize the reform initiatives that can work best in each of theDMCs; (iii) develop corresponding capacity building interventions; (iv) make available toeach DMC the findings for their own comparative purposes; and (v) prioritize regionalcooperation initiatives to exchange experience and catalyze reforms.

9. Results of the analysis will be used to generate insights into: (i) what works under what circumstances; (ii) what are the preconditions for success in pursuing reform initiatives;and (iii) are there commonalities that can be useful in sub-regional and cross regionalcontexts for sharing of experience.

10. This report presents the findings from Phase 1 of this comparative analysis. Phase Iis basically a fact-finding exercise with the following purposes: (i) to provide an overview of the status of the water sector and sector reforms in a sample of ADB’s developing member



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countries (DMCs); (ii) to map out the scope of the comparative analysis, identify needs andpriorities, and recommend a process for undertaking the comparative analysis; and (iii)assess linkages and make recommendations for related initiatives to catalyze the ADB’swater policy, for example, opportunities for regional initiatives in capacity building andresearch.

III. SCOPE OF PHASE 1 AND METHODOLOGY USED

Choice of Methodology

11. In 2003, the Water Sector Committee undertook an in-house interim review of ADB’swater policy implementation, to assess whether the water policy has been integratedconsistently into ADB operations through the design of loans and TAs after the approval of the policy in 2001 . The interim review identified forty policy actions (Appendix 1) from theseven principal elements of the water policy.

12. Before starting work on reviewing the progress of water sector reform in the ADB’sDMCs, the consultant considered current ADB practice and carried out a broader literature

review, to search for appropriate methodologies. Appendix 2 provides brief commentary onsome relevant ADB and World Bank approaches. A modified form of the approach alreadyused by the Water Sector Committee was chosen as the most appropriate. The status of thewater sector in each of a sample of the ADB’s DMCs was appraised qualitatively but in afully structured way, in terms of achieving the forty policy actions considered in theCommittee’s interim review.

13. To provide continuity with interim review, this Study has considered the same 40policy actions. However, they have been re-stated into outputs and outcomes. Most of themcan be stated as “outputs” of policy reform that characterize the institutional arrangements inthe water sector (e.g. “mechanisms for water allocation are functional”). Less than a quarter of the elements could be regarded as outcomes that describe the state of affairs that is

desired as a result of effective water resources management (e.g. “flood response measuresminimize economic losses and promptly restore infrastructure and services”).

14. The distinction between outputs of policy reform and outcomes is important.Ultimately, we are concerned with the outcomes (or “results” in everyday language) that areachieved in the water sector, rather than simply with the activities that we undertake and theinputs we apply – which do not always produce tangible benefits.

15. Progress on achieving the outputs and outcomes was ranked on a four-class scale ina questionnaire (Appendix 3). The outputs and outcomes lend themselves to presentation ina questionnaire format because achievement of each can be ranked from low to high. For each policy action, the four ranks have been expressed in terms of four levels of achievement, worded to provide guidance about the evidence that one would use to assess

Principal Elements of ADB’s Water Policy

1. Promote a national focus on water sector reform.2. Foster the integrated management of water resources.3. Improve and expand the delivery of water services.4. Foster the conservation of water and increase system efficiencies.5. Promote regional cooperation and increase the mutually beneficial use of shared water

resources within and between countries.6. Facilitate the exchange of water sector information and experience.7. Improve governance



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achievement. A four-rank scale was adopted because the consultant’s experience is thatmost observers have limited ability to discriminate between a greater number of ranks.

16. Use of a questionnaire format results in a considerable compression of the vastquantities of data that are available, but was considered to be the most practicable means of examining 40 policy outcomes and outputs and 17 DMCs in the same analysis.

Countries Included in the Review

17. The ADB has more than forty DMCs, all of which have water resources and water services to manage. In practice, the analysis could not consider all these countries, and asample had to be selected. Those in whose water sector ADB has a significant engagementprovide a sub-population from which to draw, and it was considered necessary to includerepresentatives from each of the ADB’s sub-regions. The sample was selected in a quasi-random manner, with no effort made to choose countries on the basis that they were good,bad, or even typical examples of water sector reform1.

18. The following seventeen (17) countries comprised the sample: Bangladesh,

Cambodia, Indonesia, Kazakhstan, Kiribati, Kyrgyz Republic, Lao PDR, Malaysia, Nepal,Pakistan, Papua New Guinea, People’s Republic of China, Philippines, Samoa, Sri Lanka,Thailand and Viet Nam. They cover the full range of conditions from tiny, oceanic Kiribati tolandlocked Kyrgyz Republic and giant People’s Republic of China, and – it was anticipated –a full range of progress in tackling water sector reforms.

19. Evaluations carried out by ADB’s Operations Evaluation Division (OED) generallyconsider no more than four countries (David Edwards and Caroline Heider, OED2, pers.Comm.., 2004). There are very good practical reasons for this, but it was considered that alarger sample is required for the present exercise, to include a wide range of social,economic and hydrological circumstances in the analysis.

Data Collection and Sources of Information

20. This Study included review of relevant documents. Principal sources of documentaryinformation for the analysis included:

• ADB Country Strategies and Programs (CSPs)• World Bank Country Assistance Strategies (CAS),• ADB Technical Assistance (TA) Reports Reports and Recommendations of the

President (RRPs) and some consultants’ reports

1At the start of this assignment, the consultant had insufficient knowledge of all ADB’s DMCs to make

a selection on this basis. Malaysia and Thailand are slight variations on the procedure, in that theywere included despite no longer being DMCs in whose water sector the ADB is actively investing.Nevertheless, the consultant had no information on their progress relative to other countries in termsof sector reform, which would introduce bias in selection.

The Questionnaire Four-Rank Scale

For each policy element, the questionnaire provides specific guidance on choosing theappropriate rank. In general, the ranks can be interpreted as:

A Little or no progress madeB Progress Poor or at an early stageC Good progress being madeD Excellent, lasting progress

The value C D is used as an overall indicator – “good to excellent progress”



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• World Bank Project Information Documents (PIDs)• Poverty Reduction Strategy and Program (PRSP) documents• National Water Sector Profiles and similar sector review documents complied by the

ADB for Bangladesh, Cambodia, Lao PDR, Pakistan, People’s Republic of China(PRC), Sri Lanka, Viet Nam

•

Reports provided by the regional representatives of Global Water Partnership(GWP), and some of the Country Water Partnerships.

21. Unstructured interviews were also carried with a number of staff, many of whom aremembers of the Water Sector Committee. In addition to being asked about the water sector in the particular countries for which they have responsibility, most were invited to accomplisha questionnaire, as a means of summarizing their observations and as a basis for subsequent discussion. Countries for which questionnaires were completed by ADB staff (inseveral cases just for a particular sub-sector in each country) included: Nepal, Pakistan,PRC, Philippines, Samoa, Thailand, Viet Nam2. For those countries

22. ADB Water Week held in January 2004 at the ADB Headquarters in Manila provided

an opportunity to circulate the questionnaire to national specialists. About 30 were returned.Overall, the quality was variable and several appeared to have been completed haphazardly,so it is uncertain how reliable they are. Also during the Water Week, a “Dinner and Dialogueon Water Sector Reform” was arranged for a small group of about 25 national specialists.The dialogue was focused on four key questions relating to the factors that influence theadoption of sector reform. The discussion was informal and unstructured, but neverthelessprovided valuable insights (Appendix 4).

Organization of the Data and Data Quality

23. The compiled questionnaires were entered into a multi-layered Excel spreadsheet.The spreadsheet enables descriptive statistics to be computed automatically, for data to be

presented in histogram or other formats, and for inferential statistical analysis to be applied. Appendix 5 presents histograms of policy element adoption.

24. Comprehensive documentation is not available for all the countries included in thesample, so the consultant could not assemble information in the questionnaire format for them all. This forced questionnaires completed by others to be used, which introduces apotentially substantial source of variability. Ideally, data for all countries should have beencompiled by one person, and in a standardized way. This would have required a NationalWater Sector Profile to be available for each and/or for the consultant to visit every country.

IV. WATER SECTOR REFORMS IN THE REGION: PROGRESS TO DATE

25. The database enables us, with caution, to review the current status of policy reformand institutional change in the ADB’s region. The reader should bear in mind that the dataare qualitative, are for only 17 countries, and were not collected according to a fullyrandomized sampling scheme. Therefore, they are indicative of the situation, rather thandefinitive. Appendix 6 presents country brief for 15 DMCs.

Region-wide Adoption of Policy Actions

26. The questionnaire-format data for each of the 40 outputs/outcomes have beenaggregated across all 17 countries in the sample to show the level of achievement inadopting each policy action across the whole region. The region-wide aggregated data for

2Malaysia was the only one country for which data were provided entirely by someone other than the

consultant and/or ADB staff - in this case, a senior member of the Department of Irrigation andDrainage.



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policy actions have been ranked in terms of the proportions of countries in classes C+Dcombined, which may be taken as the “proportion achieving good to excellent progress” inadopting and implementing the particular policy action.

27. There is a weak tendency for the seven groups defined in the ADB’s water policy todiffer in terms of progress in adopting policy elements (Table 1). However, there isconsiderable scatter within each policy group in terms of progress in adopting individualpolicy elements.

Table 1 - Average Values of C D for all 40 Policy Actions

C D RankingNational Policies and Reforms1. Development of comprehensive water policies 0.94 12. Undertaking of water sector assessments 0.87 23. Establishment of cross-sector coordination mechanisms 0.65 94. Review and revision of water legislation 0.28 32Water Resources Management5. Integrated water resources management in river basins 0.64 10

6. Establishment of river basin organizations 0.35 307. Water allocation mechanisms 0.48 188. Approach to large water resources projects 0.83 39. Environmental and social impact procedures 0.80 410. Effects of hydropower projects 0.72 711. Management of water quality 0.54 1412. Wastewater management 0.28 3313. Protection and rehabilitation of degraded forestlands 0.45 2214. Wetland conservation and improvement 0.45 2115. Flood response measures 0.71 816. Managing effects of climate change 0.40 2517. Structural and non-structural approach to flood mitigation 0.42 2318. Flood management 0.57 12Improving water services

19. Autonomy and accountability of service providers 0.30 3120. Public-private partnerships 0.36 2921. User participation 0.53 1522. Management of urban water supply 0.46 2023. Private sector investment 0.26 3624. Subsidies 0.38 2725. Rights and responsibilities of stakeholders 0.23 3826. Performance monitoring and benchmarking 0.26 35Conserving water27. Tariff reforms 0.50 1628. Cost recovery 0.72 629. Participation of the poor 0.74 530. Establishment of regulatory systems 0.49 1731. User’s education 0.20 39Promoting regional cooperation32. Awareness and understanding of water resources issues

in riparian countries 0.56 1333. Joint projects among riparian countries 0.25 3734. Collaborative frameworks with riparian stakeholders 0.26 3435. Managing international arrangements for river systems 0.63 11Fostering Participation36. Partnerships between governments, private agencies, NGOs,

and communities 0.39 2637. Participation of civil society 0.48 1938. Mainstreaming gender considerations 0.37 28Improving Governance39. Capacity building 0.42 2440. Networking 0.19 40



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28. In general, the greatest progress has been made with the “foundational elements” ingroup 1 – sector reviews, introduction of policies, and establishment of coordinationmechanisms, although adoption of legislation appears to have lagged behind. This is logicaland encouraging, as a firm foundation surely is a necessary basis for successful introductionof many subsequent policy actions. There is an apparent contradiction with the conclusion

of the Water Sector Committee’s Interim Review that this is an area in which progress hasnot been good. Such contradiction is understandable because the interim review waslooking at how the policy actions were incorporated in ADB operations through the design of ADB loans and TAs after the approval of ADB’s water policy in 2001. Whereas this studyconsidered national water sector as a whole, which reflects influences in addition to ADBactivities.

29. On the other hand, weakest progress seems to have been made in terms of group 3 -the various mechanisms for achieving improved service delivery. Some of the policy actionsin group 3 are outcomes of policy reform and institutional change, and one might expect their achievement to be delayed. Others, however, could be regarded as inputs to improvingwater services (e.g. define rights and responsibilities of all stakeholders, policy action 25),

and must be achieved early in the reform process. Reviewing the policy actions whoseadoption has not progressed well – say those whose score on C+D is less than 0.40 – thereis no single common factor.

28. Several of the “weak progress” policy actions seem to have in common that they areassociated with a transfer of responsibility from the traditional lead government agencies toother stakeholders.

Factors Influencing the Progress of Reform in the Water Sector: Preliminary Findings

29. One of the principal tasks of this assignment was to prepare a status report on thewater sector and sector reforms in the ADB’s DMCs. However, the data that have been

assembled only permit a preliminary discussion of the progress of reform. To carry out acomprehensive authoritative analysis would have required data collection that was wellbeyond the scope and resources of the assignment.

Key Findings on Water Sector Reform

• The greatest progress has been made with “foundational elements” – sector reviews, policydevelopment, etc.

• The weakest progress has been made in the area of service delivery.• Weak progress often appears to be associated with the transfer of responsibility from lead

government agencies to other stakeholders.• Adopting policies is much easier than implementing them.

• Individual countries may differ widely from the region-wide trends.

Table 2 – Summary of the Average Values of C D for Each Policy Group

Policy Group Group Number Mean for C+D

National policies and reforms 1 0.69Water resources management 2 0.54Improving water services 3 0.35Conserving water 4 0.53Promoting regional cooperation 5 0.42Fostering participation 6 0.41Improving governance 7 0.30



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30. This section draws on the data assembled for the status report to examine the factorsthat have influenced the progress of reform. These data have not been reviewed by countryrepresentatives, so the consultant considers it inappropriate to make specific inter-countrycomparisons.

31. Empirical observations of the status of national water sectors and sector reform needto be structured, if they are to provide real insight into the policy process. A model of process of reform is needed – a framework which guides data collection and analysis,ensures systematic, consistent treatment, and provides the ability to explain, predict andmanage the process. The consultant has carried out an extensive literature review, andselected three diverse case studies that could provide an appropriate framework for compiling, organizing and analyzing information on water sector policy and institutions.These are reviewed in some detail in Appendix 7, particularly with respect to the factors thatinfluence the progress of policy reform and organizational change. In brief, there are ninekey factors that need to be considered.

• Elements of the Political Environment

Elements of the political environment that provide incentives or impediments to change.This includes, in particular policy and institutional reforms that are being carried out inthe public service and government at large, and that provide a context within which thewater sector must respond. For instance, devolution of responsibility to sub-nationallevels of government, or the corporatization or privatization of formerly public services,are common elements of an overall pre-reform climate that is favorable to sectoralreform (Saleth and Dinar, 1999a,b). Such trends within the water sector of a givencountry are likely to be driven by government-wide change.

The political environment has had a significant impact in terms of enabling and, often,hindering change. Examples can be provided for virtually every country. Overall, a

centralized government with a strong leadership has tended to facilitate change, as inPRC, if the central leadership is persuaded that change is needed. On the other hand,where the balance of political power has been divided among several parties, water sector reform has sometimes become a “political football” (e.g. delayed passage of adraft Water Act), or has been so peripheral to dominant political concerns that it hasbeen neglected.

A strong trend towards devolution in several countries is having an impact on the water sector, as in Pakistan, Thailand, and Indonesia. The impact is not always in the samedirection, however. Devolution may facilitate change and adoption of some of theelements of ADB’s water policy, as greater responsibility is given to local levels of

government and administration. On the other hand, in some circumstances it hashindered change, as ill-equipped and ill-resourced local administrations have been

The Key Factors that Influence the Rate of Water Sector Reform

• Elements of the political environment• Activities of external support agencies (ESAs)• Engagement of the “elite” leadership• Socio-economic environment• Crisis events• Nature of performance/output gaps• The approach used• Stage and trajectory of change• Results



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unable to cope with their new responsibilities, and local politicians have brought their own influence to bear.

Political change in some countries has opened the way for reform, for instance when anew government have been elected that has had a particular interest in water. On theother hand, there are instances where a new or uncertain political environment or anuninterested government has virtually suspended change.

There seems to be general agreement with the view that events and changes in thewater sector are conditioned largely by what is happening in the wider political andeconomic environment. Where there is a general “climate of reform”, then reform will beeasy (if not demanded) in the water sector; where there is not, then changes in the water sector outside the envelop of general practice are unlikely. Generally, it appears that thewater sector has not often been an innovative area of the public sector; major reform andinstitutional change (e.g. engagement of the private sector’ new regulatoryarrangements) has been more likely to begin in areas such as energy,telecommunications and transport, and then to be picked up in water-related areas.

• ESA Activities

Activities of external support agencies (ESAs), such as the World Bank’s assistance toprepare Poverty Reduction Strategies and Programs, or the ADB’s assistance to carryout water sector reviews. These are serving to disseminate to many countries asubstantially common approach to analysis of issues, although it may be too early todetermine if they have contributed to their resolution.

There is abundant evidence that the activities of ESAs, particularly the World Bank and ADB, have had a substantial influence on the water sector in many DMCs. Keyconcerns of the international community, such as achievement of the Millennium

Development Goals or conservation of wetlands, are on many national agendas, incountries that otherwise may not have placed a high priority thereon. The preparation of National Poverty Reduction Strategies and Programs has provided opportunity to ensurethat water-related investments are on the national agenda in several DMCs. Notably inCambodia, several aspects of managing water resources, water-related hazards andwater services are included in the PRSP, although in other countries only water supply ismentioned.

Similarly, principles of IWRM, arrangements for public service provision, and the use of various economic/financial/regulatory instruments that have wide currency internationallyare being applied rather generally. Thailand, for example, is making notable progress inintroducing principles of IWRM and river basin management to its water management

practice, perhaps in part because of the significant role that it has played in the GlobalWater Partnership’s Southeast Asia Technical Advisory Committee (SEATAC).However, it is clear that individual DMCs implement and internalize international“imports” only to the extent that they are seen to be beneficial (to the nation or to theparticular decision-makers). In several countries receiving ADB TA in the water sector,reform has been slow and uncertain. Innovations such as river basin organizations or beneficiary participation in O&M have been formally included in reform and assistancepackages, but frequently have been implemented to only a limited extent.

One interviewee commented that “reform that is imposed is not true reform”; “if it doesnot address a need felt by the country itself, it is unlikely to be owned, sustained, or

beneficial”

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. The most successful and sustained reforms appear to have been in3

This is consistent with Rubin’s (1992) rather ascerbic comment that “reform means change in adirection advocated by some groups or individuals. It does not necessarily mean improvement.



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countries such as PRC, which have actively sought external advice on how to deal withinternally-perceived challenges, and have had the national capacity to tailor that adviceto their own needs.

• Engagement of “the Elite”

The engagement of “the elite”, that is, the ministers and senior civil servants who providepolitical and administrative leadership. They determine, through their support or opposition, whether or not a particular reform initiative will proceed. The role of the loweechelons of the public service cannot be overlooked, since they actually implement (or obstruct) change. Their degree of exposure to change, and the availability of adequatenumbers of capable staff certainly is. The influence of public/voter opinion on the eliteand public servants should also be considered.

Interviewees consistently stated that the progress of water sector reform depends first of all on the extent to which the political and administrative leadership sees the need for and desires reform, and is in accord over its goals. Progress in the water sector in the

Kingdom of Cambodia has benefited considerably from the personal interest of PrimeMinister Hun Sen in water-related issues. On the other hand, conflict amonggovernment ministers or senior civil servants in some countries has effectively preventedreform. Moreover, there are several countries where lack of conviction or outrightopposition on the part of mid-level civil service officials have served to delay or dilutereform and institutional change.

Of course, reform and institutional change are intended to address precisely thoseissues that hinder reform – turf wars among a multiplicity of water sector agencies,political interference in service delivery organizations, community stakeholder resistanceto improved management of water resources, etc. Therefore, many countries showcases where specific types of reform have been delayed or neutralized by one interest

group or another. It appears that resistance to reform is in general more pervasive thanits promotion. The promoters of reform (almost certainly the “elite”) usually have manymatters to deal with, and therefore are unable to give sustained attention to followingthrough on reform.

• Socio-Economic Environment

Elements of the socio-economic environment that provide either incentives of impediments to change. In the water sector, these may include national or regionalwater stress (an imbalance between water availability and demand), the incidence of water-related diseases, or the level of education of the beneficiaries of water supply or irrigation services. Nationally, the level of engagement of the private sector in provisionof public services (not just water related services), e.g. via management contracts or BOT arrangements, is a significant indicator.

This group is a very broad one, and evidence for its influence is difficult to analyze.Small population size and cohesive social structure could facilitate consensus anddecision making in some cases such as Kiribati and Samoa. However, the same resultcould be achieved via hierarchical, party-based structure like PRC even though it is somuch larger. Several interviewees drew attention to the influence of the general level of education on a country’s ability to implement reforms, particularly those that involvebeneficiaries and the community at large. This factor seems to be relevant to theprogress being made in Malaysia in extending good water management practices to the

community level, often working through schools.



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Reforms in rural areas, (e.g. with regard to irrigation management or rural water supply)commonly have been very difficult to introduce, at least partly because of the low levelsof education and skill of rural populations.

• Crisis Events

This pertains to particular crisis events that prompt change, such as massive flood, or activity by another riparian state in a shared river basin that is perceived to pose a threat.

None of the interviewees pointed to specific cases in which a crisis had precipitatedmajor policy reform or institutional change. There are examples, nevertheless, such asCambodia’s strengthening of disaster management arrangements in response to thecatastrophic Mekong flooding of 2001/2, and the sophisticated flood warning systemsbeing implemented in Bangladesh. The cases suggested are better described asincreasing stress or impending crisis – the severe geographical imbalance in water resources within the PRC, growing recognition of dry season water shortage inCambodia, or competition for water in Sri Lanka. In crisis situations, decision makers

may recognize the need to act, but have difficulty in sustaining action – memories rarelyseem to be longer that 2-3 years – so change must be accomplished quickly, or the needis overtaken by more pressing concerns.

• Performance/Output Gaps

The nature of the performance/output gaps, if any, that have prompted reform andinstitutional change in the water sector. This item is akin to impact of “crisis events”, butof a more sustained nature. Few interviewees mentioned this factor, even using differentterminology, but perhaps it is such an obvious motivation for change that they did notthink to point it out. Sri Lanka is a good example of a country whose water managementarrangements, which were very effective for one set of circumstances have become

increasingly unable to deliver the water management services required under changingcircumstances, bringing pressure to reform. Presumably, TA or investment is sought or offered because the water sector or institutions are failing to deliver the communitybenefits expected (sustainable delivery of irrigation water, freedom from water-relatedmorbidity caused by exposure to low quality water, etc.). Certainly, every ADB Reportand Recommendation of the President (RRP) and World Bank Project InformationDocument (PID) that was consulted describes at length the shortcomings that are to bedealt with by the proposed project, although not usually in the language of performanceand output gaps. The ADB’s approach to water sector review, using the national water sector profile and roadmap methodologies, effectively defines the performance/outputgaps and enables design of targeted interventions.

The point was made by several interviewees that a standard approach to policy reformand institutional change cannot always be used, because particular circumstances andneeds require different types of intervention. Therefore, careful definition of theperformance/output gaps is required, to ensure that appropriate interventions areprescribed.

• Approach Used

The nature of the approach used to policy reform and organizational change: the level of intervention (the more senior, the better, according to Hage and Finsterbusch, 1987),use of information to measure performance and monitor progress, means of engaging all

stakeholders (from villagers to the decision-making “elite”, changes in organizationalstructure and type, use of phased change and experimentation, etc.



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Many of the elements of the ADB Water Policy are, in fact, components of an approachto reform and change, e.g. enabling the participation of service beneficiaries, or enhancing inter-agency coordination. There are many others that the case studies in Appendix 7 reveal, such as tactics for engaging senior decision makers in sustainedchange, means of defining the performance/output gaps in a way that is constructive andencourages change, or building effective teams of people from different (sometimescompeting) agencies. Interviewees provided little information on this item, and the dataassembles in the data spreadsheet cover it only to a small extent. Since the casestudies recognize the approach used as a key determinant of success, and makespecific recommendations, a future comparative analysis should pay particular regard toit.

• Stage and Trajectory of Reform

The stage that reform and change have reached: the position along the particular trajectory of change that the country if following. Few countries are at the same stageand to that extent are not comparable; furthermore, Savioe (1998) shows that planned

reforms rarely are brought to a conclusion before modifications are introduced, or reformeven is reversed, so the trajectory itself may not be constant.

This item is important because it influences the apparent or cumulative success of reform in a particular country. On the other hand, there is not a direct relationshipbetween the elapsed time since reforms supposedly commenced, and the degree of achievement. There are several examples of countries in which reform commencedyears ago, but none has progressed very far, commonly due to resistance from particular interest groups. There are others where rapid reform suddenly commenced, as in thecase of the recent development of water policy and strategy in Bangladesh, when “thetime was right” (i.e. a general climate of reform prevailed or external assistance becameavailable), or key decision-makers came to accept the need for reform and became

active promoters.

• Results

The results that flow from the reform and change – operational, process,system/institutional capacity, realization of vision (Pollitt and Bouckaert, 2000) and,perhaps most importantly, outcomes/impacts desired by the community.

32. The data assembled for this assignment are insufficient to carry out a full inter-country comparative analysis of water sector reform. However, they indicate that thematters brought out in Section IV certainly should be considered, and that they provide asufficiently comprehensive “net” in which they capture all the key dimensions of change.

33. To emphasize that a comparative analysis is unlikely to be straightforward, it is worthquoting at length from Pollitt and Bouckaert’s (2000, p. 185) conclusions, with regard to theincremental nature of reform4.

“From an incrementalist perspective, therefore, the nature of public management reform is “bitty”, ad hoc and specific, not strategic, comprehensive, and driven by generic models….. To launch, sustain and implement a comprehensive strategy for reform requires certain conditions, and these are seldom all satisfied in the real world of public management reform. It requires, first, either a single authority or a set of key players who can establish a

4Pollitt and Bouckaert at this point are exploiting the application of the incrementalist model of policy

reform (Lindblom, 1979), which they regard as being a more realistic model of most public policymaking than the “rational-comprehensive” model.



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high degree of consensus over the kind of five-year plus timescales necessary to put in place fundamental, broad-scope reform. Second, it requires informed leadership, both from executive politicians and from a sufficient proportion of top public servants (mandarins). If either of these elite groups are opposed or uninterested, then opportunities for delay, dilution and diversion will multiply and will be taken advantage of by the forces of resistance or recalcitrance which are almost bound to exist in the context of reform. Sustaining a strategy also requires a considerable organizational capacity, to plan and carry out the operational details of the reforms, to respond to unforeseens and to ensure that suitable new knowledge and skills are brought into the public sector workforce. A degree of public acceptance, or at least acquiescence, is a further sine qua non, at least for reforms which affect the front-line.Taken together, this is a formidable list of requirements”.

34. To quote the foregoing is not to imply that policy reform and institutional change inthe water sector of a DMC are not feasible. Rather, it indicates that future efforts tointroduce reform must be based on very careful analysis of the internal and externalenvironment, and familiarity with lessons gleaned from as many fields as possible. A recentpaper by Clay Wescott (ADB/RSDD, 2004) makes this point clearly, and his observations on

the preconditions for reform of general public administration are readily applicable to thewater sector.

Influence of Environmental Factors: Regression Analysis

35. Data collected for the situation review provide some opportunity to explore, usingstatistical methods, the influence of environmental factors that can be characterizednumerically (see Appendix 7). Using C+D - the proportion of policy actions showing “good toexcellent progress” – as the dependent variable, scatter plots and regression analysis mightidentify relationships between progress in reform and factors that promote or hinder it.Relevant indices are obtainable from ADB and other databases.

36. Scatter plots and bi-variate regression equations were produced by the dataspreadsheet; those indices for which a relationship with C+D is discernible includepopulation, water resources availability, GDP, and government expenditure as a percentageof total GDP. However, multiple regression analysis indicated that, once population isentered into an equation, none of the other indices add any ability to explain (in statisticalterms) the variations in C+D. The regression equation explains, in a statistical sense, over 20% of the variation in the progress of reform. This is surprisingly good result, and can beinterpreted as showing that the larger the country, the slower the adoption of reform,

possibly because of the increasing difficulty in managing communication and achievingconsensus. A lesson might be that sector reform might be most successful at sub-nationallevel in large countries.

Indices Obtainable from ADB and Other Databases

• GDP (US$million) and GDP/person (US$/capita), possible indicators of nationalwealth (facilitate reform)

• Population (persons) and population density (person/km²), possible indicators of available human resources (facilitate reform), ease of communication and consensus(hinder reform), and resource stress (demand reform)

• Urban population (% of total GDP), a possible indicator of resource stress (demandreform)

• Government expenditure (% of total GDP), a possible indicator of the relative power of the bureaucracy (either facilitate or hinder reform)

• Water resource availability (km³/year and m³/capita/year), possible indicators of resource stress (demand reform)



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37. It is unfortunate that none of the other indices that were considered provided similar level of explanation. More work could have gone into developing more indices, but the workresults from the analysis confirm that the approach may have limited potential.

Figure 1. C+D as a function of population. The R2 value of 0.2131 indicates that 21% of the variation in (C+D) is explained by population.

Figure 2. C+D as a function of water resources availability.

Figure 3. C+D as a function of GDP.

y = -0.024Ln(x) + 0.7136

R2 = 0.21310.00

0.10

0.20

0.30

0.40

0.50

0.600.70

0.80

10 100 1000 10000 100000 1000000 10000000

Population ('000)

( C + D ) - p r o p o r t i o n s h o w i n g

“ g o o d t o e x c e l l e n t p r o g r e s

s ”

y = 0.032Ln(x) + 0.181

R2 = 0.1187

0.00

0.10

0.20

0.30

0.40

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100 1000 10000 100000 1000000

Water resource (m3/person/year)

( C + D ) - p r

o p o r t i o n s h o w i n g

“ g o o d t o e

x c e l l e n t p r o g r e s s ”

y = 0.1068Ln(x) + 0.1415

R2 = 0.1897

0.00

0.10

0.20

0.30

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0.60

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0 10 20 30 40

Government expenditure (%GDP)

( C + D ) - p r o p o r t i o n s h o

w i n g

“ g o o d t o e x c e l l e n t p r o g r e s s ”



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Figure 4. C+D as a function of government expenditure as a percentage of GDP.

V. COMPARATIVE ANALYSIS OF WATER SECTOR REFORM

The Need for Comparative Analysis of Water Sector Reforms

38. The principal output of this study is a review of the current status of water sector reform in the region. However, it was required also to map out the scope of a comparativeanalysis, to identify needs and priorities and to recommend a process.

39. The literature on the water sector and on comparative policy analysis in generalindicates that the scope of any follow-up work should be widened considerably, in order to

provide useful guidance to ADB operations staff and water professionals. A comprehensivecomparative analysis would help answer three key questions:

40. Answers to these questions would have obvious benefits to ADB operations staff andthe DMC representatives with whom they work. They would, for example, help in selecting

the sector reforms that would be most likely to succeed, avoiding reforms that would beunlikely to be feasible or sustainable, managing the conditions that influence how easilyreforms can be introduced, and informing decision makers of the benefits and costs of particular reform initiatives. There could be far-reaching implications for ADB’s riskmanagement practices and policies with regard to, for example, loan conditionalities. In thisexample, the comparative analysis may predict that effective implementation of particular elements of a reform program may be unlikely in a given DMC, and that setting them asconditions on a proposed loan would be unrealistic. The Bank would have to decide whether to proceed with or delay the loan, in light of the high risk that sector reform would beunsuccessful and, presumably, that the intended outcomes of the loan might not beachieved. If proceeding, the decision would then have to be made whether to set conditionsnevertheless, attempt to manage the factors that the comparative analysis predicts would

hinder implementation, or simply accept a high risk of project failure.

Key Questions for a Comparative Analysis

• What works under what circumstances?• What are the preconditions for success in pursuing reform initiatives?• Are there commonalities that can be useful in sub-regional and cross-regional contexts for

sharing of experience?

y = -0.0182Ln(x) + 0.6491

R2 = 0.14080.00

0.10

0.20

0.30

0.40

0.50

0.60

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0.80

10 100 1000 10000 100000 1000000

GDP (US$million/year)

( C + D ) - p r o p o r t i o

n s h o w i n g

“ g o o d t o e x c e l l e n

t p r o g r e s s ”



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41. There is an extensive literature on the water sector in the Asia-Pacific region, someof which describes and, to an extent, compares the nature and performance of the water sector in the countries of the region. The literature, together with the global literature onwater resources management and policy, provides a basis for current efforts to define andimplement policies and strategies to enhance water sector performance. However, thereappears to have been no formal analysis of the extent, rate and success of adoption of thevarious measures that are widely regarded as “good practice” and are being introduced tomany of the ADB’s DMCs.

42. A weakness of the literature on the water sector seems to be that it pays limitedregard to our understanding of policy reform and institutional change in other areas. Reviewof the literature in general policy reform shows that all but a few of the elements of the ADB’swater policy are found in other sectors and in the public sector as a whole – beneficiaryparticipation in decision making, promotion of public-private partnerships, performanceappraisal and benchmarking, etc. The few exceptions (e.g. water resources management inriver basin context) reflect the distinctive characteristics of water as a resource. Severalrecent and authoritative analyses of broadly-based public sector reform provide insights and

recommendations for implementation that are highly relevant to the water sector, and thatwould assist water sector reformers to set realistic goals and plan appropriate interventions.

Countries and Policy Elements to be Considered in a Comparative Analysis

43. The section on scope and methodology considered the countries and policy elementsto be included in the status report of the water sector and sector reforms. It is recommendedthat any follow-up comparative analysis should take these as a starting point, to maintaincomparability. However, it would be desirable to extend the sample of countries to widen therange of conditions that it represents. Countries outside the region that are widely regardedas having made good progress in sector reform, such as Chile and the Republic of South Africa, also could provide instructive comparisons.

On-Going Comparison as a Tool for Improvement

44. Comparative analysis of sector reform should not be seen simply as a “one-off”exercise, intended once and for all to provide an understanding of the factors that influencereform. The concepts of incremental change and continuous improvement now are firmlyembedded in the literature on business management, public administration and policyanalysis. On-going comparison needs to be incorporated into a sustainable approach towater sector reform and institutional change, to support continuous improvement in theimplementation of reform.

45. Comparative analysis and on-going comparison need a benchmark, a basis of

comparison, which might be provided by:

¾ nationally defined objectives, specified for example within a National Water Strategyor specific sub-sectoral strategies or organizational business plans;

¾ internationally accepted yardsticks or goals, such as the ADB’s Water Policy actions,MDGs (which, however, are “nationalized” by couching them in terms of percentagechanges against defined initial conditions), or the Baldrige Criteria for businessexcellence; and

¾ indices of the performance of comparable institutions in other countries, throughsome type of benchmarking exercise.



21

46. On-going comparison of a country’s performance against nationally definedobjectives is good practice, and should be a normal feature of policy and institutionaldevelopment. The case studies reviewed in Appendix 7 refer extensively to monitoring andmeasurement of policy outcomes, as a basis for future refinement and change. Thisrequirement is reflected in many current development assistance initiatives, for example byincluding monitoring as a key aspect of Poverty Reduction Strategies and Programs, and byuse of the MDGs to guide investment and technical assistance.

47. In several cases such as Sri Lanka, ADB’s support in water sector reform has been

sustained for some years, and provides opportunity for such monitoring. This is not alwaysthe case with ESA interventions, however, and ADB could provide a lead by makingsustained monitoring of outcomes a standard feature of its assistance packages. At the veryleast, water-related policies and strategies should provide for on-going monitoring andperiodic appraisal of performance against define objectives. Without data, any form of comparative analysis is rather difficult. On-going comparison of performance againstinternationally accepted standards has become a potent tool in many private and publicsector organizations, to achieve continuous improvement or business practice and servicedelivery. The International Organization for Standardization standards in the ISO-900 andIS)-14000 series for quality management and environmental management5 provide the mostobvious examples, and are readily applied to water sector organizations.

48. The Baldrige Criteria6

for business excellence, and their national equivalentsdeveloped in a number of countries, provide a yardstick against which an organization cancompare itself across the entire range of its activities (i.e. planning, management, productionsystems, customer relations, product characteristics, etc.). These criteria, which are anoutgrowth of the TQM (Total Quality Management) approach to business practice, havebeen applied to many different types of organization – public and private, service deliveryand manufacturer – but not, as far as the consultant is aware, to an entire sector of theeconomy. There is a growing literature on the application of total quality management andcontinuous improvement to the public sector (e.g. Cohen and Brand, 1993).

49. The ISO standards and business excellence criteria are applicable to particular water sector organizations – water supply utilities, irrigation departments, regulatory agencies, etc.

– as a framework for ongoing monitoring and improvement of performance, even thoughthey might, in the early stages, seem to provide rather forbidding standards to aspire to.They are perhaps most likely to be utilised in countries, such as Malaysia, where a culture of quality management already is well established. However, ADB could assist organizations inall its DMCs to apply these types of tools in a way that is appropriate to their stage of development.

50. Ongoing comparison of performance – benchmarking – against peer organizations,often within the context of an industry association, also has become a widely accepted toolin both private and public sectors. The ADB already has made an excellent start inpromoting this approach in the water sector, through its Water in Asian Cities initiative

5Refer to http://www.iso.ch/iso/en/ISOOnline.frontpage

6Refer to http://www.quality.nist.gov. The Baldrige Criteria were developed originally in the US, but

have been adopted or modified to provide national criteria in several other countries.

Some Benchmarks for Ongoing Comparison

• Nationally-defined objectives, strategies, and plans• Internationally-accepted yardsticks and goals

• Performance indicators for comparable institutions



22

(Andrews and Yñiguez, 2004), and in particular through preparation of the Water UtilitiesDatabooks (ADB, 1993; McIntosh and Yñiguez, 1997). Water utilities lend themselvesparticularly to this type of ongoing comparative analysis, because appropriate indicatorsalready are widely agreed upon, and procedures for monitoring are well established. Other providers of water-related services, such as irrigation companies and irrigation departments,could benefit from the same approach. Even water resources management agencies,hydrological services, and regulatory agencies could in principle apply benchmarking, if twoor more organizations can develop a collaborative relationship and agree on performanceindicators, protocols for monitoring, exchange of information, etc. A primary requirement for benchmarking is an association or network of peer organizations, such as, for example, theSoutheast Asia Water Utilities Network, the Pacific Water Association, or the Network of Asian River Basin Organizations.

51. In practice, performance of the water sector as a whole across all the elements of the ADB Water Policy may not be subjected easily to ongoing comparative analysis. Theelements of the policy are not all equally applicable or relevant to every country, so thatinflexible comparison could produce misleading or even damaging results. Nevertheless,

many of the elements relate to the responsibilities of particular water-related organizations,whose performance can be monitored and compared against national goals, organizationalobjectives or the performance of equivalent organizations elsewhere. Hence, an element-based approach to ongoing comparison of water sector performance appears to be feasible,and would be consistent with current ADB initiatives in the water supply sub-sector.

52. It is recommended that the ADB should, for on-going comparison: (i) includesustained monitoring of outcomes as a standard feature of its assistance, inter alia to ensurethat data are available for future performance appraisal and comparative analysis, and (ii)actively promote ongoing comparison and continuous improvement of water sector performance, by extending its initiatives in utility benchmarking and providing support to itsDMCs in applying such tools as national criteria for business excellence.

53. As an immediate follow-up work, the consultant recommends the engagement of national consultants for each of the 17 countries included in the study and one leadconsultant who will act as regional coordinator. The suggested scope of work is presentedin the draft TORs (Appendixes 8 and 9).

VI. LINKAGES WITH CAPACITY BUILDING

54. The assignment’s TOR included a requirement to “develop corresponding capacitybuilding7 interventions” in association with mapping out the scope of a follow-up comparativeanalysis. This could include, for example, the creation of national cross-disciplinary teams tocarry out data collection and preliminary analysis, as input to a trans-national analysis.

However, capacity building inherently is a long-term, ongoing process, and the consultantsuggests that it should be dealt with separately from the comparative analysis, which shouldbe completed as soon as possible.

55. The Water Sector Committee (2003) has carried out an assessment of capacitybuilding needs in the Bank, and more recently (2004) has prepared a draft Capacity Development Program for the Water Sector . The consultant considers that these twodocuments provide a well-considered and comprehensive basis for capacity building (in therestricted sense of human resources development and training), and that the outputs of the

7

“Capacity building” normally includes not just human resources development and training, but other forms of institutional strengthening, such as improved management systems, planning procedures, or information systems. Much of this is covered by specific elements of the ADB Water Policy, so in thepresent context capacity building is taken to focus on human resources.



23

recommended comparative analysis can be disseminated using the mechanisms that theypropose.

• ADB Staff

56. During the assignment, the consultant benefited hugely from the knowledge anddepth of understanding of ADB staff regarding the issues in DMC water sectors. Thisknowledge base is one of the Bank’s greatest assets, and a key objective of a capacitydevelopment program should be to facilitate the exchange of experience and knowledgeamong staff. It is particularly important that the expertise of longer-serving officers should bepassed to more recently recruited staff, and that knowledge about particular countries shouldbe transferred to staff who are given new responsibilities for those countries.

57. The reservoir of knowledge and understanding that already exists among the Bank’sstaff provides a primary – perhaps the primary – source of KIT (knowledge, information, andtechnology) to meet immediate needs as well as the more long-term needs identified inperformance appraisal and staff development planning. Various mechanisms can be used,

such as mentoring, joint missions to countries to introduce newly assigned staff to theissues, peer review of work, and so on. The Water Sector Network provides a vehicle for publicizing the interests and expertise of particular officers – person X has long experiencein the water sector in South Asia, and person Y has managed projects that have successfullyintroduced PIMD in three ASEAN countries, for instance – so that others know from whom toseek advice. The draft Capacity Development Program (in paragraph 73 inter alia ) proposessuch mechanisms as maintaining a directory of staff expertise, and the consultant stronglysupports them.

58. Such mechanisms must have formal sanction and ongoing support, and must reward – and certainly not penalize – the people who are the primary sources of KIT. During thisassignment, the consultant invariably found the ADB staff whom he approached to be helpful

and interested. Almost invariably, however, they also were too busy with operational dutiesto be able to allocate much time to an additional task. Several people who could beoutstanding mentors and advisers indicated that they regard this type of role as importantand one that they would be keen to take it on. However, they felt that their operationalworkload would not be reduced to compensate, and that there would be no benefits to offsetthis anticipated penalty. Special duties, such as mentoring other staff or acting as a“resource person” in a particular area of expertise, need to be recognized in an individual’s job description and objectives, so that they receive due recognition and are not over-loaded.

• DMC Representatives

59. Capacity building is a central aspect of many ADB lending and TA interventions inthe water sector of DMCs. In an increasing number of cases, capacity building as it relates toHRM&D is based on a formal training needs analysis, which is expected to enable effectiveand efficient design and targeting of capacity building initiatives.

60. The draft Capacity Development Program proposes a number of approaches tocapacity development, training and awareness raising for DMC counterparts. It notes that“there are no ‘boxed approaches’ that could work in every DMC”, or, as several ADB staff commented to the consultant, “one size does not fit all”. The comparative analysis shouldassist considerably in specifying the needs for capacity building in each DMC, in two keyways: (i) identifying those elements of the ADB Water Policy that are most appropriate under each set of circumstances, and therefore enabling targeted training to deal with those

particular elements, and (ii) identifying in each country the elements that are presentingparticular challenges for achieving sustained reform, and providing additional capacitybuilding to ensure that those challenges can be met



24

61. The ADB already has in its “capacity building toolkit” many approaches to capacitybuilding. Those which can be applied to specific country needs – e.g. a study tour for a smallteam of people from one DMC to learn how another DMC has tackled a particular reform –should be easier to plan in the light of the results of the comparative analysis. Conversely, itshould also be easier to plan workshops and other events intended for a region-wideaudience, by ensuring that the key issues (i.e. those where most countries need assistance,or where reforms can provide the greatest return for the least effort) are addressed, andhelping to identify in each country the people who would most benefit from attendance.

62. As with the needs within ADB discussed in the preceding sub-section, the key needwith regard to DMC representatives is to provide links between people who are engaged inthe same area of work – that is, between people who need KIT, and those who already havethem. An economical means of doing this is provided by international groupings that haveexisted for many years, such as the UNESCO International Hydrology Programme and theWMO Commission for Hydrology. These are being supplemented by various networks thatpresently are being developed, including the sub-regional Water Partnerships that are an

outgrowth of the Global Water partnership, and the Network of Asian River BasinOrganizations. The ADB already plays a major role in this area of networking, and shouldcontinue to do so.

63. The consultant endorses the proposals of the Water Sector Committee’s draftCapacity Development Program , but wishes to draw particular attention to matters that aroseduring the course of this assignment. It is recommended that the ADB should:

For ADB staff:

• urgently develop and actively encourage methods (e.g. mentoring, joint missions, peer reviewof work) for transferring KIT among its staff, and formally recognise and reward them within its

HRM&D procedures.

For DMC representatives:

• draw on this status report and the proposed comparative analysis to target capacitydevelopment on sector reforms that are most appropriate to national circumstances, offer thegreatest opportunity for successful implementation, and/or present the greatest challenges for achieving sustained reform;

• maintain its support to regional networks that can provide efficient linkages for transferring KITamong DMC representatives who are engaged in particular elements of sector reform.



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References

Andrews, C. T. and Yñiguez, C. E., 2004. Water in Asian cities: utilities’ performance andcivil society views. Water for All Series, number 10. Asian Development Bank, Manila, 97 pp.

Asian Development Bank, 1993. Water utilities data book, Asian and Pacific Region. AsianDevelopment Bank, Manila, 156 pp.

Asian Development Bank, 2001. Water for all: the water policy of the Asian DevelopmentBank. Asian Development Bank, Manila, 52 pp.

Asian Development Bank, 2002. Impact Evaluation Study on Water Supply and SanitationProjects in Selected Developing Member Countries. Report IES: REG 2002-17, AsianDevelopment Bank, Manila.

Asian Development Bank, 2003. Special Evaluation Study on ADB Capacity Building

Assistance for Managing Water Supply and Sanitation to Republic of the Fiji Islands, Kiribati,Papua New Guinea, and Republic of the Marshall Islands. Report SST: REG 2003-08, AsianDevelopment Bank, Manila.

Cohen, S., and Brand, R., 1993. Total Quality Management in government. Jossey-BassPublishers, San Francisco, 228 pp.

Fredriksen, H.D., Berkoff, J. and Barber, W., 1993. Water resources management in Asia.Technical Paper 212, World Bank, Washington D.C.

Hage, J. and Finsterbusch, K., 1987. Organizational change as a development strategy.Lynne Rienner Publishers, Boulder.

Lane, J-E., 1990. Institutional reform: a public policy perspective. Dartmouth Publishing Co., Aldershot, U.K.

Lincklaen-Arriens, W., Bird, J., Berkoff, J. and Mosley, P., 1996. Towards effective water policy in the Asian and Pacific region (three volumes). Asian Development Bank, Manila.

Lindblom, C., 1979. Still muddling, not yet through. Public Administration Review 19:3, 79-88.

McIntosh, A. C., 2003. Asian water supplies: reaching the urban poor. Asian DevelopmentBank, Manila, 199 pp.

McIntosh, A. C., and Yñiguez, C. E. (editors), 1997. Second water utilities data book, Asianand Pacific Region. Asian Development Bank, Manila, 210 pp.

Peters, B. G., and Savoie, D. J., 1998. Taking stock: assessing public sector reforms.McGill-Queen’s University Press, Montreal.

Pollitt, C. and Bouckaert, G., 2000. Public management reform: a comparative analysis.Oxford University Press, Oxford.

Rubin, I., 1992. Budgeting: theory, concepts, methods and issues. In Rubin, J. (editor),Handbook of public budgeting. Marcel Dekker, New York.



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Saleth, R. M. and Dinar, A., 1999a. Evaluating water institutions and water sector performance. Technical Paper 447, World Bank, Washington D.C.

Saleth, R. M. and Dinar, A., 1999b. Water challenge and institutional response. PolicyResearch Working Paper 2045, World Bank, Washington D.C.

Savoie, D. J., 1998. Fifteen years of reform: what have we learned? In Peters, B. G., andSavoie, D. J. (editors), Taking stock: assessing public sector reforms. McGill-Queen’sUniversity Press, Montreal.

Water Sector Committee, 2003. Interim review of ADB’s water policy implementation.Unpublished report, Asian Development Bank, Manila, 44 pp. (December 2003 draft).

Water Sector Committee, 2004a. 2003 Annual report of the Water Sector Committee.Unpublished report, Asian Development Bank, Manila, 52 pp. (May 2004 draft).

Water Sector Committee, 2004b. Capacity development program for the water sector.

Unpublished report, Asian Development Bank, Manila, 16 pp. (April 2004 draft).

Wescott, C., 2004. Improving public administration in the Asia-Pacific region: some lessonsfrom experience. Paper presented to the Conference on Regulation, De-regulation and Re-regulation in Globalizing Asia, National University of Singapore, March 2004.



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Appendix 1

FORTY WATER POLICY ACTIONS(As used in the interim review of ADB water policy implementation)

Notes and Instructions

1. These Policy Actions are extracted from the Water Policy. These are used for reviewingachievement of projects in all developing member countries (DMCs) in the implementation of the Water Policy.

2. Not all policy actions, however, are applicable to all subsector projects. Specific checklistswere developed for each subsector.

National Policies and Reforms 1. The Asian Development Bank (ADB) will help develop comprehensive water policies in the

DMCs.2. Assistance for undertaking water sector assessments will be provided to ensure that policy

formulation and sector reforms are well grounded.3. Because project planning and implementation are commonly fragmented among many

institutions, ADB will support the optimization of agency functions for planning andimplementation. It will also focus on the development of effective cross-sector coordinationmechanisms, such as a neutral sector apex body that can oversee the policy formulation andsector reform process.

4. Support will be provided for the review and revision of water legislation particularly in theareas of water rights and allocation among competing uses, water quality standards,groundwater use, demand management, resource conservation, private participation, andinstitutional responsibilities for water sector functions at national, regional or basin, local, and

community levels.

Water Resources Management5. ADB will help the DMCs introduce integrated water resources management (IWRM) and

undertake comprehensive water resources assessments in river basins as a basis for future water investment projects

6. To implement IWRM, ADB will support the establishment of river basin organizations (bothformal and informal) to facilitate stakeholder consultation and participation, and to helpimprove planning, information gathering, monitoring, and advisory services to local andnational authorities.

7. ADB will encourage the DMCs to adopt participatory and negotiated approaches for water

allocation.8. ADB will adopt a cautious approach to large water resources projects―particularly thoseinvolving dams and storage―given the record of environmental and social hazardsassociated with such projects. All such projects will need to be justified in the public interest,and all government and nongovernment stakeholders in the country must agree on the justification.

9. Where the risks are acceptable and ADB’s involvement necessary, ADB will ensure that itsenvironmental and social impact assessment procedures are rigorously applied. Anyadverse environmental effects will be properly mitigated, the number of affected people inthe project area will be minimized, and those adversely affected will be adequatelycompensated in accordance with ADB’s policy on involuntary resettlement.

10. In line with its energy sector policy, ADB will continue to extend its support for technically

and economically feasible hydropower projects that form part of a country’s least-costenergy development plan, provided that their environmental (including impact on fisheries)and social effects can be satisfactorily managed in accordance with ADB policies.



28

11. To help stakeholders address water quality issues, ADB will support water qualityinvestment programs that focus on four existing gaps: (i) knowledge development of theimpact of human activities on water quality, and of water quality requirements for ecosystems, including determination of water quality thresholds; (ii) management of landconversion, including protection of catchments and wetlands, which are the natural filters inmany aquatic systems, and pollution prevention at source; (iii) improving water managementto reduce the inefficient use of water, excessive water abstraction, and groundwater pumpingleading to salinization; and (iv) reducing pollution by urban and industrial users, through on-site or combined wastewater treatment and reuse, and improved farming practices.

12. The introduction of wastewater discharge permits and effluent charges as part of water rights administration will be encouraged.

13. ADB will pursue the protection and rehabilitation of degraded forestlands. To rehabilitatewatersheds, ADB encourages the involvement of local communities and nongovernmentorganizations (NGOs).

14. Wetlands have important functions in the river basin, including flood alleviation, groundwater recharge, water quality improvement, ecosystem maintenance, and biodiversityconservation. ADB will promote wetland conservation and improvement in a river basin

context.15. ADB will continue to help the DMCs reduce economic losses from floods and rapidly

restore economic infrastructure and social services after such disasters.16. ADB will seek to increase its understanding of the effects of periodic El Niño and

La Niña events on climatic patterns, and share its knowledge and experience with theDMCs.

17. ADB will adopt a proactive approach to reduce the severe economic and social costs of natural disasters by promoting the use of combined structural and nonstructuralapproaches to flood protection, including flood-risk insurance.

18. Poverty reduction will be targeted by carefully formulating flood management projects, andnegative impacts will be eliminated by ensuring compensation for loss of assets or livelihoods and assistance in reestablishing productive activities.

Improving Water Services19. ADB’s sector strategies within countries will identify the need for introducing phased

programs to increase the autonomy and accountability of service providers, either asnew enterprises or by reorganizing existing agencies.

20. ADB will develop modalities for public-private partnerships in the management of physicalinfrastructure.

21. User participation will also be supported to (i) make services and service providers moreresponsive and accountable to beneficiaries; (ii) align the provision of services with users’needs and ability to pay, thereby improving cost recovery and sustainability; and (iii) tailor institutional arrangements for water service management to local practices. Participation will

be the cornerstone of ADB’s country water sector strategies; institutional arrangements for participation, particularly at the community level, will be strengthened.22. The autonomy of service providers, especially in terms of staffing and tariffs, but not

privatization, is typically the central issue in urban water supply and sanitation systems. ADBwill support the upgrading of existing systems in physical and managerial terms.

23. ADB will help develop contracting modalities that allow potential investors to participate inthe expansion and improvement of services. In particular, contracts that address socialequity concerns and improve water and sanitation services to the poor will be developed.

24. Subsidies for operating and maintaining public irrigation and drainage systems will bephased out.

25. The phased turnover of responsibilities for distribution system operation and maintenanceto farmer groups will improve system sustainability. Correspondingly, the collective and

individual rights and responsibilities of water users (including poor and marginal farmers atthe tail end of irrigation systems), service providers, and public agencies will be clarified andagreed.



29

26. ADB will seek to initiate monitoring and benchmarking exercises for irrigation anddrainage service providers to track value and performance parameters.

Conserving Water 27. ADB will promote tariff reforms through water-related projects and programs to modify

structures and rates so that they reward conservation and penalize waste.28. ADB will consistently advise governments of the need to adopt cost recovery principles intheir water policies and strategies.

29. ADB will continue to press for and support policies that provide for explicit participation ofthe poor in water-related projects; simultaneously, it will promote the phased elimination ofdirect subsidies to the poor for accessing basic water services in line with an increase inaffordability levels.

30. ADB will promote the establishment of regulatory systems through policy dialogue withthe DMCs and by leveraging loan and technical assistance programs to this end.

31. In its water-related projects and programs, ADB will incorporate components that educatethe industry on the efficient use of water, and the need for higher prices for both wateruse and effluent treatment and discharge.

Promoting Regional Cooperation32. By assisting with water sector assessments in riparian countries, and helping with the

exchange of data, ADB will promote awareness and understanding of water resourcesissues and needs within each country.

33. Based on joint requests from riparian countries, ADB will support joint projects for theplanning, development, and management of shared water resources, including the mappingof physical and institutional resources, information sharing, and establishment of a regionallegal regime encompassing dispute resolution mechanisms.

34. Given its ability, neutrality, and comparative advantage in providing assistance of this nature, ADB will assist governments to develop collaborative frameworks with riparianstakeholders. These will include an assessment of the downstream impact of any ADB-financed water project, in a river basin context.

35. Strategically, ADB will accord higher priority to the optimization of existing systems. In linewith this approach, and subject to joint requests made by governments concerned, ADB willbe prepared to help operationalize international arrangements to manage river systems.

Fostering Participation36. ADB will promote participation in the management of water resources at all levels and

collaborate in fashioning partnerships between governments, private agencies, NGOs, andcommunities.

37. Water projects supported by ADB will incorporate carefully designed components thatpromote the participation of civil society in identifying needs and issues, designing

solutions, and establishing mechanisms for monitoring and dispute resolution.38. The key elements in a gender approach to planning, implementing, and evaluating of

water sector activities are (i) including a gender analysis at the design stage,(ii) incorporating explicit gender equity provisions in the objectives and scope of the activity,and (iii) disaggregating data in monitoring and management information systems alonggender lines. These elements will be incorporated in ADB’s water sector operations.

Improving Governance 39. ADB will promote the development of sustainable plans for capacity building; these will

include the establishment of indigenous institutional arrangements for skills development atbasic and advanced levels. The plans will incorporate processes that allow the sharing of

subregional or regional experiences.



30

40. To optimize the work of knowledge and skills development institutions, and to promoteregional self-help, a regional research and capacity-building network among theseinstitutions would provide a cost-effective approach. ADB will continue dialogue with itsdevelopment partners to jointly establish the network as a complementary capacity-buildingingredient in the water sector.



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Appendix 2

METHODOLOGIES FOR WATER SECTOR POLICY APPRAISAL –BRIEF COMMENTARY ON ADB AND WORLD BANK APPROACHES

1. The ADB has procedures for evaluating and auditing country assistance programs,sector programs, and projects. Relevance, efficacy, efficiency, sustainability and institutionaldevelopment are considered in audit reports, as well as any targets or indicators that theintervention itself specified. Audit and evaluation reports are wide-ranging in the additionalmatters that they consider, depending on the issues and circumstances in each country. Amethodology is being developed for evaluating ADB policies, but was not ready for thepresent assignment. Other organizations have developed methodologies for policyevaluation, but implementation often presents problems, because of the distinctivecharacteristics of each country and/or sector (Graham Walter, OED1, pers. comm . 2004).

2. The Impact Evaluation Study on Water Supply and Sanitation Projects in Selected Developing Member Countries (IES: REG 2002-17) provides a good and relevant example

of a recent evaluation of the impacts of ADB investments in the water sector. Itsmethodology included field visits to the selected DMCs, administration of threequestionnaires to different interest groups, follow-up field visits and stakeholder workshops,and preparation of the final report. The areas of impact that were considered weredeveloped during the process, rather than being based on a pre-determined set of issues.

3. The Special Evaluation Study on ADB Capacity Building Assistance for Managing Water Supply and Sanitation to Republic of the Fiji Islands, Kiribati, Papua New Guinea, and Republic of the Marshall Islands (SST: REG 2003-08) was based on a common set of indicators that were discussed with staff of the water utilities. Indicators included qualitativeones, such as the constitution of utility Boards of Directors, and quantitative ones, such asstaff per 1,000 connections. During field visits to the four countries, discussions were held

with representatives of several stakeholder groups, and the draft report was provided for stakeholder comment before it was completed.

4. Both the preceding studies, together with other Evaluation reports that wereconsulted, introduced extensive qualitative discussion of the analysts’ observations, whichcould not have been structured beforehand without the danger that the reports’ findingswould have been pre-conditioned.

5. A particularly interesting study is Saleth and Dinar’s (1999) report Evaluating water institutions and water sector performance . They considered a sample of eleven countries(including three of ADB’s DMCs), and used as their input data the observations of 43 water sector experts, gathered via an extensive questionnaire (98 experts originally were asked to

participate). The questions aimed to define the condition and the performance of policy, legaland institutional aspects of the water sector in each country. Many of the questions wereanswerable by ranking on a 0 to 10 scale; others were simply “yes/no” or “presence/absence” choices. Saleth and Dinar used multiple regression analysis to developquantitative statistical models that they interpreted in terms of cause/effect relationships.They justified the use of expert opinion by pointing out that water sector institutions arehuman constructs; staff of ADB’s OED agree that expert opinion is a legitimate (often theonly practicable) type of data for evaluation studies (David Edwards and Caroline Heider,OED2, pers. comm ., 2004). It is, however, difficult to justify the application of parametricstatistical analysis to the classificatory and ordinal data assembled by Saleth and Dinar,which may explain the apparent weakness of some of the inter-relationships they inferred.

6. The Water Sector Committee’s recent review of the ADB Water Policy provides a veryrelevant model. The ADB Water Policy does not define explicit targets against which ananalyst could measure progress in implementation. However, the forty elements extracted by



32

the Water Committee from the Policy document provide a framework in terms of whichrecent ADB projects can be appraised. The analysis basically considered the extent to whichthese elements have been taken into account in the design and implementation of projects,and took particular note of how this has changed since the Policy was drafted and adopted.



33

Appendix 3

QUESTIONNAIRE:THE STATUS OF THE WATER SECTOR IN ADB’S DEVELOPING MEMBER COUNTRIES

Notes

1. The 40 listed action areas are drawn from ADB’s Water Policy and Appendix 1 of theInterim Review of Water Policy Implementation . They are restated in terms of theoutcomes (achievements) desired in the water sector.

2. The questionnaire may be answered with reference to the entire water sector (i.e.,including water resources management and service delivery in sub-sectors) or to aparticular sub-sector; please indicate at the top of the questionnaire.

3. Please complete the questionnaire with regard to the overall situation in the country,not solely to areas/projects in which ADB has provided support.

4. For each of the 40 action areas, the columns headed A to D indicate possible levelsof achievement, from low to high. Please highlight or boldface the response for each

area that most closely describes the situation in your country. Please amplify in the“comments” column, where no description in the questionnaire is suitable or additional information would clarify your response.

5. We would particularly welcome comment regarding the factors (both within the water sector and in the broader national environment) that have facilitated or hinderedprogress in each action area.

6. For action areas that are not relevant (e.g. #33 in a country with no shared water resources), please write not applicable in the “comments” column.



QUESTIONNAIRE: THE STATUS OF THE WATER SECTOR IN ADB’S DEVELOPING MEMBER COUNTRIESPlease highlight the response (in columns headed A to D) that most closely describes the situation in the particular country. Additional brief comment is welcomed.Country/province: Sub-sector: Completed by:

Outcome of water policy

action

A B C D Comment

I. National policies and reforms1 Water-related policies

have been adopted by thegovernment

No policieshave yet beenwritten

Policies are in draftbut not yet adopted

Policies in someareas of the water sector adopted

Comprehensive set of policies adopted

2 The water sector (policies,institutional arrangementsetc.) recently has beenreviewed, and anychanges/reforms neededhave been identified

No review hasyet beencompleted

A review is inprogress but notyet complete

A review covers onlysome areas of thewater sector

A comprehensivereview has beencompleted andendorsed by sectoralagencies

3 Coordination mechanisms (e.g. asector “apex body”) exist tofacilitate cross-sectoral

activity and oversee sector reform

Mechanisms donot exist or arewhollyineffective

Mechanisms existonly in some areasor are only partlyeffective

Comprehensivemechanisms exist butare only partlyeffective

Cross-sectoralcoordination is fullyeffective

4 Water-related legislation has been adopted by thegovernment

Water-relatedlaw is old,incomplete, notenforced, or non-existent

Revision andmodernisation of water-related law isin progress

A coherent andmodern body of lawhas been adopted butis not enforced

A coherent and modernbody of law has beenadopted and isenforced

II. Water resources management5 Information on national or

key river basin waterresources is available

The conditionand trend of national water resources ispoorly known

Water resourcesinformation is notadequate for project design or resourcemanagement

Information on thenational water resource is fair, or covers only somerivers/aquifers

There is excellentinformation on thecondition and trend of national water resources

6 River basinorganisations (RBO) are

functional

River basinorganisations

do not exist inany basin

Establishment of RBOs is at an early

stage, or in onlyone or a few basins

River basinorganisations exist in

only some basinsand/or are only partlyeffective

River basinorganisations are

effectively implementingIWRM in all key basins

7 Mechanisms for waterallocation are functional

No formal or equitablemechanismsexist

No legally-basedmechanisms existbut water generallyis allocatedequitably

Legally-basedmechanisms havebeen established butallocation still islargely informal

Water is allocatedequitably, efficiently,and with fullstakeholder involvement

8 Large water resourcesprojects have beendesigned to take accountof community aspirationsand have strongcommunity support

Recent projectsare likely tohave severeadverse socialor environmentaleffects andwere strongly

opposed

Recent projects arelikely to have someadverse social or environmentaleffects, and werestrongly opposed

Recent projectsavoid/mitigate mostadverse effects butthere was someopposition

Recent projects havewide support, andsocial/ environmentaleffects can be mitigatedor avoided

9 Environmental and socialimpact procedures arerigorously applied

Theenvironmental/social effects of recent projectswere notassessed or planned for

Adverse social or environmentaleffects were poorlyassessed, and/or ignored

Adverse social or environmental effectswere assessed, butpoorly planned for

Adverse social or environmental effectswere well assessed,and fullyavoided/mitigated

10 Environmental and socialeffects of hydropowerprojects are managedsatisfactorily

Recent projectsare likely tohave severeadverse socialor environmentaleffects

Recent projects arelikely to have someadverse social or environmentaleffects

Recent projectsavoid/mitigate mostadverse effects

The social andenvironmental effects of recent projects havebeen well managed

11 Water sector programs pay

due regard tomanagement of waterquality

Management of

water quality iswhollyneglected

Sector investment

deals with water quality only as asecondary concern

Some investment

specifically deals withwater quality issues,but with limited effect

Sector investment

programs success-fullysupport themanagement of water quality



35

12 Wastewater dischargepermits and/or effluentcharges are applied

There is noprovision for dischargepermits and/or charges

There is legal pro-vision for dischargepermits and/or charges, but theyare not applied

Discharge permitsand/or charges areapplied, but they arenot enforcedconsistently

Discharge permits andcharges are appliedand enforced

13 Forestlands are protectedand, where necessary,rehabilitated

No effort ismade to protector rehabilitatedegradedforestland

Forestlands areprotected, butdegraded areas arenot rehabilitated

Forestlands areprotected, and somedegraded areas arebeing rehabilitated

A comprehensive,effective program of forest protection andrehabilitation isimplemented

14 Wetlands are conservedand, where necessary,restored

No effort ismade toconserve or restorewetlands

Existing wetlandsare conserved, butdegraded areas arenot restored

Existing wetlands areconserved, and somedegraded areas arebeing restored

A comprehensive,effective program of wetland conserv-ationand restoration isimplemented

15 Flood response measuresminimise economic lossesand promptly restoreinfrastructure and services

There are noeffect-ivearrangementsto restoreinfrastructureand servicesafter floods

Post-flood arrange-ments to restoreinfrastructure andservices exist butare slow to start

Post-flood restor-ationof infrastruct-ure andservices is moderatelyprompt but there arelosses

Post-flood restor-ationof infrastruct-ure andservices is prompt andeffectiv-ely minimiseslosses

16 The effects of climatevariability on water resources are understoodand considered in projectdesign and resourcemanagement

The effects of climatevariability onwater resources arewhollyunrecognised

The effects of climate variabilityon water resourcesare recognised butnot taken accountof

The effects of climatevariability on water resources areunderstood but nottaken account of

The effects of climatevariability on water resources areunderstood and takenaccount of

17 Structural and non-structural measures for flood mitigation are usedin a complementary way tomaximise net benefits

No measures toavoid or mitigate theeffects of floodsare used

Measures to avoidor mitigate effectsof floods arelargely reactive andun-organised

Structural and non-structural measuresare used widely, butnot in an effective,complementary way

Complementarystructural and non-structural measuresprovide effective floodmitigation

18 Flood managementprojects reduce povertyand avoid adverse effectson the poor

Floodmanagementprojects largelyignore theinterests of thepoor

Flood managementproject designsrefer to theinterests of thepoor, but barelyaddress them

Adverse effects of flood managementprojects are largelyavoided, but povertyis little affected

Flood managementprojects have noadverse effects on thepoor, and reducepoverty positively

III. Improving water services19 Water service providers

are autonomous andaccountable

Water serviceproviders arenotautonomous or accountable

Water serviceproviders are onlynominallyautonomous and/or accountable

Water serviceproviders are largelyautonomous andaccountable

Water service providersare wholly autonomousand accountable

20 Public-privatepartnerships are used tomanage water-relatedphysical infrastructure

Infrastructure ismanagedwholly by thestate and priv-ate sector involve-ment isopposed

Private sector management isbeing activelyplanned for or trialled

Public-privatepartnerships arebeing arranged insignificant parts of thesector

Public-privatepartnerships arefunctioning successfullyon an extensive scale

21 Arrangements for user/beneficiary participationensure that servicedelivery is responsive,accountable andfinancially sustainable

Users/beneficiaries have noopportunity toinfluence howwater servicesare delivered,and will not pay

Users/beneficiariescan influenceservice delivery,but are reluctant topay for services

Expectations of users/beneficiariesare taken fully intoaccount but costs areonly partly recovered

Services are veryresponsive andaccountable tousers/beneficiaries andrecover full cost of delivery

22 The physical infrastructureand management of urbanwater supply & sanitationsystems are able toprovide acceptableservice levels

Infrastructureandmanagementare run down,with poor service and lowUAW/NRWlevels

Upgrading of infra-structure and man-agement is at anearly stage, withfew impacts onservice

Good progress isbeing made withupgrades, and con-sumers observeservice improvement

Infrastructure andmanagement prov-idinggood service andUAW/NRW levels

23 Private sector investors are able to invest in water and sanitation serviceproviders

There is noopportunity for the privatesector to investin water andsanitationservices

Private investmentis ad hoc, with fewsafeguards for anyof the parties

There is significantprivate investment,and contractualarrangements protectinvestors

There is significantprivate investment, andinvestors’ and publicinterests are fullyprotected

24 O&M costs of public Public I&D The principle of Cost recovery is being The O&M costs of



36

irrigation and drainage(I&D) systems are whollypaid by beneficiaries

systems areheavily subsid-ised andbenefic-iariespay little of theO&M cost

cost recovery frombeneficiaries isaccepted but poorlyimplemented

successfully extendedto all I&D systemsand rates of revenuecollection are rising

public I&D systems arewholly paid bybeneficiaries and thereis no publicsubsidisation

25 Rights andresponsibilities of irrigation system users,service providers andpublic agencies areagreed, with usersresponsible for O&M of distribution systems

Rights andresp-onsibilitiesare ill-defined,users refuse tocarry out O&M,and sust-ainability is low

User acceptance of O&M responsibilityis growing andrights/responsibil-ities are agreed butstill to be acted on

Rights/responsibil-ities are increas-inglyacted on, users aretaking on O&M, andsustainability isgrowing

Rights/responsibil-itiesare fully established,users carry out O&M,and sustainability ishigh

26 Performance of I&Dservice providers ismonitored and evaluated

There is nomonitoring or evaluation of I&D servicelevels

Some aspects of I&D service levelare monitored, butnot evaluated ag-ainst benchmarks

Key aspects of I&Dservice level aremonitored, withevaluation againstbenchmarks

I&D service levels aremonitored, evaluatedagainst benchmarks,and are improving

IV. Conserving water27 Water service tariff

structures provide incentives for conservation and efficientuse of water

There are notariffs and noincentives for conservationand efficientuse

Tariffs are in placebut are not struc-tured to encourageconservation andefficient use

Tariffs are designedto encourageconservation andefficient use, but notyet effective

Tariff structures aresuccessfullyencouragingconservation andefficient use

28 Cost recovery isincorporated into water policy and strategies

There are noprovisions for cost recovery inwater policyand strategies

Cost recovery isincluded in limitedareas of policy andstrategy, but notimplemented

Cost recovery isincorporated intowater policy andstrategies, but isweakly implemented

Cost recovery is fullyincorporated into water policy and strategies,and con-sistentlypracticed

29A The poor are enabled toparticipate in design andimplementation of water-related projects

There are nomech-anismsfor the poor toinfluence water-related projects

Policies to enableparticipation by thepoor are beingdeveloped, but notyet implemented

Policies provide for the poor to part-icipate in projects, butare not yet fullyimplemented

The poor have fullopportunity toparticipate in andinfluence projects

29B Direct subsidies foraccess to basic water services have beenphased out as affordabilityhas risen.

Access to basicwater servicesis heavilysubsidised bythe state

Basic water servicelevels areimproving andconsumers areinformed of theneed to pay for service

Service charges arebeing levied, comm-ensurate with users’ability to pay, andsubsidies reduced

Users pay for access tobasic water services,with no subsidisation

30 Regulatory systems arein place in the water sector

There are noprov-isions for regulation inany part of thewater sector

Regulatory systemsare beingdeveloped in someareas, but not yetimplemented

Regulatory systemshave been estab-lished in key areas,but are not yet fullyeffective

All parts of the water sector have fullyfunctional regulatorysystems

31 Users are educated aboutways of using water efficiently, and about theneed for appropriatepricing of water use andeffluentdischarge/treatment

Users areignorant of water use effic-iency measuresor the justification for pricing

User education onwater useefficiency andpricing is at anearly stage of development

User education onwater use efficiencyand pricing is welldeveloped but haslimited impact

Users adopt water useefficiency meas-ures,and are willing to payappropriate prices for services

V. Promoting regional cooperation32 Awareness and

understanding of water resources issues arepromoted, especiallythrough inter-countryexchange

There isminimalstakeholder aware-nessand under-standing of water resourcesissues

Means of promotingawareness andunderstanding arebeing developedbut not yetimplemented

Awareness andunderstanding arebeing promotedactively and withgrowing impact

There is widespreadstakeholder aware-nessand under-standing of water resources issues

33 Joint projects andengagement with other countries are promotingmanagement of sharedresources

There are no joint projects or effectiveengagementwith other countries

Engagement withother countries is atan early stage butis enablingcommonunderstanding todevelop

Joint projects andengagement are welldeveloped butresource manage-ment still is largelyunilateral

Joint projects andengagement with other countries are enablingeffective managementof shared resources

34 Collaborativeframeworks with allriparian stakeholders inshared river basins are

Projects inshared river basins havelittle or no

Collaboration is atan early stage of development andother riparian

Collaborative frame-works are in place,and the interests of riparian stake-holders

Collaborative frame-works are used to takefull account of theinterests of all riparian



37

established regard for other riparianstakeholders

stake-holderscommonly areoverlooked

usually areconsidered

stake-holders

35 Internationalarrangements to manageshared waters arefunctional

There are nointernationalarrangementsto manageshared waters

Internationalarrangements tomanage sharedwaters are under development

Arrangements tomanage sharedwaters have beendeveloped but are notfully operational

Internationalarrangements tomanage shared watersare fully effective

VI. Fostering participation36 Partnerships between

government, and other stakeholders, andparticipatory managementof water, are functional

There is little or no engagementof non-governmentalstake-holders inwater management

Partnerships andparticipation are atan early stage, withlimited impacts onwater management

Partnerships andparticipation areestablished, withsome impacts onwater management

Partnerships andparticipation enableresponsive andsustainable water management

37 Water projects incorporatethe participation of civilsociety in needs analysis,design, monitoring, disputeresolution

There is little or no engagementof civil societyin water projects

Mechanisms for civil societyparticipation arebeing introducedbut are not yetused consistently

Civil society particip-ates in some aspectsof projects

Civil society particip-ates fully in projectneeds analysis, design,monitoring, disputeresolution

38 Planning, implementationand monitoring of water sector activities incorporategender-related elements

Water sector activities do notrecognisegender-relatedissues

Gender-relatedissues are recog-nised to an extentin some phases of water sector activity

Gender-related issuesare consid-ered inmost aspects of activity

Water sector activitiestake full account of gender-relateddifferences and equityneeds

VII. Improving governance39 Institutional, national and

regional arrangements for capacity building, skillsdevelopment, and sharingof experience arefunctional

There is little or no provision for any form of capacitybuilding at anylevel

Arrangements for capacity buildingare limited andbenefit a limitednumber of people

Arrangements for capacity building areextensive, and arehaving a growingimpact on capability

Arrangements for capacity building arecomprehensive, cover all scales, and havelarge impact

40 Networking is establishedwith institutions in other parts of the region, inresearch and capacitybuilding

There is little or no interchangewith institutionselse-where inthe region

Networks withinstitutions else-where are beingdeveloped but havelimited benefits

Good networks are inplace and areproviding growinginter-country support

Networking with other institutions providesstrong support toresearch and capacitybldg



38

Appendix 4

Dialogue on Water Sector Reform, Monday 26 January 2004

Summary Notes

Introduction:

The Dialogue was organised to take advantage of the gathering of experts for the ADBWater Week. About 20 individuals were invited to participate, who were selected on thebasis of their in-depth knowledge of the water sector in particular countries represented atthe Water Week.

The Dialogue was an informal affair, held over a buffet dinner, with participants asked todiscuss, round-table style, one or more of a set of questions on water sector reform:

1. How is reform and change in the water sector linked to changes in government and the

economy as a whole?2. What are the key factors that seem to enable or promote change? …and prevent or limit

change?3. Can champions bring change that otherwise would not happen? Can gatekeepers

prevent change that would have happened?4. How much does reform and change depend on guidance from outside the country?5. Are there areas of reform and institutional change that must happen first, or that produce

the greatest or most rapid benefits?6. Are the same policy reforms and institutional changes needed in water services and

water resources management, as in other types of services and natural resources?

In the event, groups discussed the first four questions, and none reached the last two.

Summary of discussion:

The following points were reported by a representative of each table:

• Key factors differ widely from country to country. In China, economic developmentleading to environmental degradation brought change. In Cambodia, it was drivenprimarily by public awareness of water-related issues, which then became a governmentpriority. In Vietnam, economic development and the need for environmental protectionalso was a key driver. In Pacific Islands, there is little awareness, little reform, and littlechange. A suggestion was made that changes in political/economic systems (in Vietnam,China, CARs) also triggered change, although this was disputed. The role of externalagencies in promoting changes – e.g. river basin organisations in Vietnam – also wasacknowledged (although, again, it was pointed out that some changes could beintroduced in other countries with no external pressure, eg RBOs in Indonesia).

• Another representative listed the key factors promoting change as:

1. A crisis automatically leads to change2. Political change such as appointment of a new Prime Minister 3. Top administrators4. Rising public awareness, possibly as a result of a campaign (by whom?)5. Globalisation and world-wide trends/experience



39

Some countries are more subject to external pressures than others. Key factorspreventing change include:

1. political leaders2. top administrators3. the bureaucracy (acting as a gatekeeper)4. ignorance

Hence, many of the same factors can either promote or prevent change, depending onthe people involved. An Indian representative considered that political parties have hadlittle effect on trends or changes – “it’s the same whichever party is in power”. (Perhapsthat indicates the power of top administrators, and the priority placed by politicians onother matters??) Thai representatives strongly affirmed that political figures have had amajor influence in that country, while an Indonesian representative considered that thekey factors are crisis, political change, and global influences.

• Other tables agreed with the importance of some form of crisis, or major event that

triggers change (threshold for change), although it was also pointed out that repeatedcrises or events (e.g. recurrent storms, floods or droughts in the Pacific) could be sodebilitating that change became impossible.

• The Malaysian representative emphasised the importance of IT and KIT as facilitatorsand promoters of change. Others agreed that the HR (knowledge, skills) base isimportant in enabling reform, at all levels. In Bangladesh, water sector reform was aninternal initiative, but there was heavy use of the many studies that already had beencarried out by/for ESAs.

• In most countries, reform seems to have started in one area or another, and then moved – often starting in irrigation and then moving to water supply, in response to changing

importance of issues such as food security, public health, and rural-urban balance of power. It was noted that aggregating water-related matters into a single Ministry hasoften been a strategy for disseminating reforms more widely.

• The point was made that if reform is imposed, that does not reflect real needs, it is rarelytrue reform. Implementation of effective reform requires a line-up of politicians,administrators, and technical people, and if any of those oppose change it will be difficultto implement. Civil society and NGOs can make a big difference in the nature andprogress of change, but their role is less essential to the process. NGOs find it verydifficult to exercise sustained influence (reversals are too easy, e.g at present, NGOinfluence seems to be waning in India). Nevertheless, they have had a large influence inmany countries and areas, particularly in implementation rather than policy.

• Governments are not (in most cases?) monolithic, and there are differences of opinionwithin them. Reformers can use donors to promote reform that they would not be able tobring themselves. Technical people often agree with ESAs, and need externalassistance to overcome political resistance (and reformed policies may be very helpful toadministrators, by enabling them to resist political pressure because “the policy doesn’tpermit it). An Indian representative advised that reform is always led from inside in India,and that consultants are used to do what the governments want.

• Importance of champions/gatekeepers varies widely in different countries. In smallcountries, eg. Pacific SIDSs, everyone knows everyone, so that change can be

promoted through personal contact (but also prevented through the resistance of the



40

elders). In larger countries (China, Vietnam) it was indicated that individuals do not andcannot have personal impacts, but that decisions are more collective (really??)

• A Thai representative agreed that countries often use donors/consultants as a tool tobring change that they could not implement themselves, but the relationship variesbetween countries; some countries are more susceptible to external pressure becausethey are poor. International organisations should be aware that they have an impact –good or bad – whatever they do. Appropriate changes can be hugely beneficial, but bypromoting inappropriate change, they can create more problems than they solve.

• Another table commented that outside influences can be catalytic and are usuallybeneficial, but that many reforms in many countries have been “home-grown” – egdecentralisation in Sri Lanka, or water policy and sector institutions in Bangladesh. (Inthe latter case, very rapid progress was possible, because the exercise was very much anational endeavour). Attempts to impose change from outside are rarely successful;they can be pushed through but will not be internalised or sustained. There is a danger that reform will be seen by some (for political motives?) as imposed from outside, even

though it is really a home-grown initiative. If an ESA wishes to promote particular reform,it must do so in a completely transparent way, to avoid the risk of subsequent rejection.However, in many cases ESA assistance is essential for major reforms and changes, tobring in outside knowledge and experience – i.e. for implementation.

• The question was raised whether international treaties and agreements (e.g. outputs of WSSD) have any significance. Several participants affirmed that they do; wide adoptionof the MDGs and the current emphasis on poverty reduction undoubtedly have beeninfluenced by international debate. However, they do not always have an influence, or atleast a sustained influence. If international agreements lead to changes inconditionalities and other practices of ESAs, then they can have major and long-lastingimpacts, however.

• Concern was expressed at the tendency for policy fashions, introduced and replaced ona time scale too short to be fully assimilated. Vocabulary may change, but actions do not.It was pointed out that some countries will go along with international trends andagreements because they know that resources will be available to them. Because someof these trends are relatively long-term (e.g. MDGs), present-day politicians may acceptthem without conviction, because they do not have immediate impact on budgets or require commitment beyond the electoral cycle.

• The Malaysian representative affirmed that, if new ideas will do good for Malaysia, thenthey will be adopted, and international events/agreements have benefit in disseminatingnew ideas and technology. It is up to the individual country to choose what is suitable for itself. Thai representatives noted that new ideas from outside, e.g. with regard to RBOs,could be adopted and then be “internalised” by reviving and aligning their own traditionaland national knowledge and practice.

• One table discussed decentralisation, as an example of a particular reform. Points madeincluded:

¾ Devolution without money/resources isn’t real devolution, and Ministries of Finance oftenattempt to retain central control by controlling the money

¾ Local shares are often required as a demonstration of commitment/ownership. Thesecan be subverted eg. in Bangladesh local contractors will pay the 10% required local

share to get the work in a particular village. Ways must be found to avoid this, so that all



41

villages have equal opportunity to benefit. It is important that commitment be long-term,in implementation and O&M, and not just at project initiation.

¾ A critical need is good monitoring.¾ It was suggested that decolonisation has been a major cause of reform, to decentralise

the formerly centralised colonial administration.¾ Decentralisation often results from central government’s lack of funds and the need to

devolve costs¾ Planning and implementation of decentralisation must be comprehensive – including

staffing etc (not just government; also NGOs, CBOs etc)¾ Politicians often are happier with decentralisation than the administrators (except that

local governments often are a different political party)¾ Noted that in Vietnam resources came from different sources in different parts of the

country: central government, UNICEF, local share … Beneficiaries have to pay 100% of O&M everywhere, but start-up local contribution varies regionally – only 10% inmountains. WSS in Vietnam is by state or private companies, with privatisationprogressively extending. Originally there was resistance to paying for water; this wasdealt with by progressive increase in tariffs commensurate with increasing service

standards, and educational programmes through the Mothers Union etc.

Overall summary

There seemed to be strong agreement among participants that reform and change in thenational water sector can be seen in the context of nation-wide trends inpolitics/governance/economy, and – despite widely agreed and accepted international trends – is very much country-specific in terms of the factors that initiate and guide change. ESAscertainly can support and promote change, not least by channeling knowledge andexperience, but they must be aware of and work within the national context and constraints.



42

Appendix 5

HISTOGRAMS OF POLICY ELEMENT ADOPTION



43

1. Water-related policies have been adopted by the government

No policies have yet been written

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n

o f c o u n t r i e s

Policies are in draft but not yet adopted

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Policies in some areas of the water sector adopted

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Comprehensive set of policies adopted

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




44

2. The water sector (policies, institutional arrangements etc.) recently has been reviewed,and any changes/reforms needed have been identified

No review has yet been completed

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


A review is in progress but not yet complete

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


A review covers only some areas of the water

sector

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


A comprehensive review has been completed

and endorsed by sectoral agencies

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




45

3. Coordination mechanisms (e.g. a sector “apex body”) exist to facilitate cross-sectoralactivity and oversee sector reform

Mechanisms do not exist or are wholly ineffective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Mechanisms exist only in some areas or are only

partly effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Comprehensive mechanisms exist but are only

partly effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n o

f c o u n t r i e s

Cross-sectoral coordination is fully effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region


f c o u n t r i e s



46

4. Water-related legislation has been adopted by the government

Water-related law is old, incomplete, not

enforced, or non-existent

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Revision and modernisation of water-related law

is in progress

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


A coherent and modern body of law has been

adopted but is not enforced

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


A coherent and modern body of law has been

adopted and is enforced

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




47

5. Information on national or key river basin water resources is available

The condition and trend of national water

resources is poorly known

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n o f c o u n t r i e s

Water resources information is not adequate for

project design or resource management

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Information on the national water resource is fair,

or covers only some rivers/aquifers

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r

t i o n


There is excellent information on the condition

and trend of national water resources

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




48

6. River basin organisations (RBO) are functional

River basin organizations do not exist in any

basin

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Establishment of RBOs is at an early stage, or in

only one or a few basins

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


River basin organizations exist in only some

basins and/or are only partly effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n


River basin organizations are effectively

implementing IWRM in all key basins

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




49

7. Mechanisms for water allocation are functional

No formal or equitable mechanisms exist

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


No legally-based mechanisms exist but water

generally is allocated equitably

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Legally-based mechanisms have been established

but allocation still is largely informal

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Water is allocated equitably, efficiently, and with

full stakeholder involvement

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




50

8. Large water resources projects have been designed to take account of communityaspirations and have strong community support

Recent projects are likely to have severe adverse

social or environmental effects and were strongly

opposed

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Recent projects are likely to have some adverse

social or environmental effects, and were strongly

opposed

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Recent projects avoid/mitigate most adverse

effects but there was some opposition

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Recent projects have wide support, and

social/environmental effects can be mitigated or

avoided

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




51

9, Environmental and social impact procedures are rigorously applied

Adverse or environmentl effects were poorly

assessed, and/or ignored

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


The environmental/social effects of recent

projects were not assessed or planned for

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Adverse social or environmental effects were

assessed, but poorly planned

0

0.1

0.2

0.30.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i

o n


Adverse social or environmental effects were

well assessed, and fully avoided/mitigated

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




52

10. Environmental and social effects of hydropower projects are managed satisfactorily

Recent projects are likely to have severe adverse

social or environmental effects

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Recent projects are likely to have some adverse

social or environmental effects

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Recent projects avoid/mitigate most adverse

effects

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n


The social and environmental effects of recent

projects have been well managed

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i

o n




53

11. Water sector programs pay due regard to management of water quality

Management of water quality is wholly neglected

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Sector investment deals with water quality only as

a secondary concern

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Some investment specifically deals with water

quality issues, but with limited effect

0

0.1

0.2

0.30.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i

o n


Sector investment programs successfully

support the management of water quality

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i

o n




54

12. Wastewater discharge permits and/or effluent charges are applied

There is no provision for discharge permits

and/or charges

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


There is legal provision for discharge permits

and/or charges, but they are not applied

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Discharge permits and/or charges are apllied, but

they are not enforced consistently

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Discharge permits and charges are applied and

enforced

0

0.1

0.2

0.30.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i

o n




55

13. Forestlands are protected and, where necessary, rehabilitated

No effort is made to protect or rehabilitate

degraded forestland

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Forestlands are protected, but degraded areas are

not rehabilitated

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Forestlands are protected, and some degraded

areas are being rehabilitated

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n


A comprehensive, effective program of forest

protection and rehabilitation is implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n




56

14. Wetlands are conserved and, where necessary, restored

Existing wetlands are conserved, but degraded

areas are not restored

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Existing wetlands are conserved, and some

degraded areas are being restored

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


A comprehensive, effective program of wetland

conservation and restoration is implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p

o r t i o n


No effort is made to conserve or restore wetlands

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




57

15. Flood response measures minimize economic losses and promptly restoreinfrastructure and services

There are no effective arrangements to restore

infrastructure and services after floods

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Post-flood arrangements to restore infrastructure

and services exist but are slow to start

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Post-flood restoration of infrastructure and

services is moderately prompt but there are

losses

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Post-flood restoration of infrastructure is prompt

and effectively minimizes losses

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




58

16. The effects of climate variability on water resources are understood and considered inproject design and resource management

The effects of climate variability on water

resources are wholly unrecognized

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n



resources are recognized but not taken account of

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n



resources are understood but not taken account

of

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n



resources are understood and taken account of

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




59

17. Structural and non-structural measures for flood mitigation are used in acomplementary way to maximize net benefits

No measures to avoid or mitigate the effects of

floods are used

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Measures to avoid or mitigate effects of floods are

largely reactive and un-organized

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Structural and non-structural measures are used

widely, but not in an effective, complementary way

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o

n


Complementary structural and non-structural

measures provide effective flood mitigation

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




60

18. Flood management projects reduce poverty and avoid adverse effects on the poor

Flood management projects largely ignore the

interest of the poor

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Flood management project designs refer to the

interests of the poor, but rarely address them

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Adverse effects of flood management projects are

largely avoided, but poverty is little affected

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Flood management projects have no adverse

effects on the poor, and reduce poverty

positively

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




61

19. Water service providers are autonomous and accountable

Water service providers are not autonomous or

accountable

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Water service providers are only nominally

autonomous and/or accountable

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Water service providers are largely autonomous

and accountable

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Water service providers are wholly autonomous

and accountable

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n




62

20. Public-private partnerships are used to manage water-related physical infrastructure

Infrastructure is managed wholly by the state and

private sector involvement is opposed

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Private sector management is being actively

planned for or tried

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Public-private partnerships are being arranged in

significant parts of the sector

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Public-private partnerships are functioning

successfully on an extensive scale

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n




63

21. Arrangements for user/ beneficiary participation ensure that service delivery isresponsive, accountable and financially sustainable

Users/beneficiaries have no opportunity to

influence how water services are delivered, and

will not pay

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Users/beneficiaries can influence service delivery,

but are reluctant to pay for services

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Expectations of users/beneficiaries are taken fully

into account but costs are only partly recovered

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o

n


Services are very responsive and accountable to

users/beneficiaries and recover full cost of

delivery

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o

n




64

22. The physical infrastructure and management of urban water supply & sanitation systemsare able to provide acceptable service levels

Infrastructure and management are run down,

with poor service and high UAW/NRW levels

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Upgrading of infrastructure and management is at

an early stage, with few impacts on service

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Good progress is being made with upgrades, and

consumers observe service improvement

0

0.1

0.2

0.30.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o

n


Infrastructure and management providing good

service and low UAW/NRW levels

0

0.1

0.2

0.30.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o

n




65

23. Private sector investors are able to invest in water and sanitation service providers

There is no opportunity for the private sector to

invest in water and sanitation services

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Private investment is ad hoc, with few safeguards

for any of the parties

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


There is significant private investment, and

contractual arrangements protect investors

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i

o n


There is significant private investment, and

investors' and public interests are fully protected

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




66

24. O&M costs of public irrigation and drainage (I&D) systems are wholly paid bybeneficiaries

Public I&D systems are heavily subsidized and

beneficiaries pay little of the O&M cost

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


The principle of cost recovery from beneficiaries

is accepted but poorly implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Cost recovery is being successfully extended to

all I&D systems and rates of revenue collection

are rising

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


The O&M costs of public I&D systems are wholly

paid by beneficiaries and there is no public

subsidization

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n




67

25. Rights and responsibilities of irrigation system users, service providers and publicagencies are agreed, with users responsible for O&M of distribution systems

User acceptance of O&M responsibility is growing

and rights/responsibilities are agreed but still to

be acted on

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Rights/responsibilities are increasingly acted on,

users are taking on O&M, and sustainability is

growing

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region


f c o u n t r i e s

Rights/responsibilities are fully established, users

carry out O&M, and sustainability is high

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Rights and responsibilities are ill-defined, users

refuse to carry out O&M, and sustainability is low

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




68

26. Performance of irrigation and drainage (I&D) service providers is monitored andevaluated

There is no monitoring or evaluation of I&D

service levels

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Some aspects of I&D service level are monitored,

but not evaluated against benchmarks

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Key aspects of I&D service level are monitored,

with evaluation against benchmarks

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


I&D service levels are monitored, evaluated

against benchmarks, and are improving

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




69

27. Water service tariff structures provide incentives for conservation and efficient use of water

There are no tariffs and no incentives for

conservation and efficient use

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Tariffs are in place but are not structured to

encourage conservation and efficient use

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Tariffs are designed to encourage conservation

and efficient use, but not yet effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Tariff structures are successfully encouraging

conservation and effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




70

28. Cost recovery is incorporated into water policy and strategies

There are no provisions for cost recovery in

water policy and strategies

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Cost recovery is included in limited areas of

policy and strategy, but not implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Cost recovery is incorporated into water policy

and strategies, but is weakly implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Cost recovery is fully incorporated into water

policy and strategies, and consistently practiced

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o

r t i o n




71

29A. The poor are enabled to participate in design and implementation of water-relatedprojects

There are no mechanisms for the poor to

inluence water-related projects

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Policies to enable participation by the poor are

being developed, but not yet implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Policies provide for the poor to participate in

projects, but are not yet fully implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


The poor have full opportunity to participate in

and influence projects

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




72

29B. Direct subsidies for access to basic water services have been phased out asaffordability has risen

Access to basic water services is heavily

subsidised by the state

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Basic water service levels are improving and

consumers are informed of the need to pay for

service

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Service charges are being levied, commen-surate

with users' ability to pay, and subsidies reduced

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Users pay for access to basic water services,

with no subsidisation

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




73

30. Regulatory systems are in place in the water sector

There are no provisions for regulation in any part

of the water sector

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Regulatory systems are being developed in some

areas, but not yet implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Regulatory systems have been established in key

areas, but are not yet fully effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


All parts of the water sector have fully functional

regulatory systems

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




74

31. Users are educated about ways of using water efficiently, and about the need for appropriate pricing of water use and effluent discharge/treatment

Users are ignorant of water use efficiency

measures or the justification for pricing

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


User education on water use efficiency and

pricing is at an early stage of development

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


User education on water use efficiency and

pricing is well developed but has limited impact

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Users adopt water use efficiency measures, and

are willing to pay appropriate prices for services

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




75

32. Awareness and understanding of water resources issues are promoted, especiallythrough inter-country exchange.

Minimal stakeholder awarenessThere is minimal stakeholder aware-ness and

under-standing of water resources issues

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Means of promoting awareness and

understanding are being developed but not yet

implemented

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Awareness and understanding are being

promoted actively and with growing impact

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region


f c o u n t r i e s

There is widespread stakeholder awareness and

understanding of water resources issues

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




76

33. Joint projects and engagement with other countries are promoting management of shared resources

There are no joint projects or effective

engagement with other countries

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Engagement with other countries is at an early

stage but is enabling common understanding to

develop

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Joint projects and engagement are well developed

but resource management still is largely unilateral

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Joint projects and engagement with other

countries are enabling effective management of

shared resources

0

0.1

0.2

0.30.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o

n




77

34. Collaborative frameworks with all riparian stakeholders in shared river basins areestablished

Projects in shared river basins have little or no

regard for other riparian stakeholders

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Collaboration is at an early stage of development

and other riparian stakeholders commonly are

overlooked

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Collaborative frameworks are in place, and the

interests of riparian stakeholders usually are

considered

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t

i o n


Collaborative frameworks are used to take full

account of the interests of all riparian stake-

holders

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




78

35. International arrangements to manage shared waters are functional

International arrangements to manage shared

waters are under development

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.91

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Arrangements to manage shared waters have

been developed but are not fully operational

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


International arrangements to manage shared

waters are fully effective

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


There are no international arrangements to

manage shared waters

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




79

36. Partnerships between government, and other stakeholders, and participatorymanagement of water, are functional

There is little or no engagement of non-

governmental stake-holders in watermanagement

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Partnerships and participation are at an early

stage, with limited impacts on water management

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Partnerships and participation are established,

with some impacts on water management

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n

o f

c o u n t r i e s

Partnerships and participation enable

responsive and sustainable water management

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n

o f

c o u n t r i e s



80

37. Water projects incorporate the participation of civil society in needs analysis, design,monitoring, and dispute resolution

Mechanisms for civil society participation are

being introduced but are not yet used consistently

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


There is little or no engagement of civil society in

water projects

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Civil society participates in some aspects of

projects

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Civil society participates fully in project needs

analysis, design, monitoring, dispute resolution

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




81

38. Planning, implementation and monitoring of water sector activities incorporate gender-related elements

Water sector activities do not recognize gender-

related issues

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Gender-related issues are recognized to an extent

in some phases of water sector activity

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Gender-related issues are considered in most

aspects of activity

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Water sector activities take full account of

gender-related differences and equity needs

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




82

39. Institutional, national and regional arrangements for capacity building, skillsdevelopment, and sharing of experience are functional

There is little or no provision for any form of

capacity building at any level

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Arrangements for capacity building are limited

and benefit a limited number of people

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Arrangements for capacity building are extensive,

and are having a growing impact on capability

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Arrangements for capacity building are

comprehensive, cover all scales, and have large

impact

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




83

40. Networking is established with institutions in other parts of the region, in research andcapacity building

There is little or no interchange with institutions

else-where in the region

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Networks with institutions else-where are being

developed but have limited benefits

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n


Good networks are in place and are providing

growing inter-country support

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region


f c o u n t r i e s

Networking with other institutions provides

strong support to research and capacity building

0

0.1

0.2

0.3

0.40.5

0.6

0.7

0.8

0.9

1

Regional

Average

South

Asia

East &

Central

Asia

Mekong South

East Asia

Pacific

Region

P r o p o r t i o n




84

Appendix 6

BANGLADESH: COUNTRY BRIEF

Water is a pervasive influence on life in Bangladesh, though it receives surprisingly littlerecognition in the Interim Poverty Reduction Strategy Paper. Abundant water is (at leastseasonally) a boon to the nation’s food-producing capacity, but water-related disastersperiodically cause severe losses of life, property, and economic activity. Progress inadministering and, where necessary, reforming the water sector has been very mixed inrecent years. There has been substantial international investment and technical assistancein sector administration and reform, but results up to the turn of the century were sodisappointing that several ESAs scaled back or suspended assistance. More recently, somesignificant forward steps have been made.

Bangladesh has substantial expertise in water resources engineering, and the population atlarge has shown – for example, through the widespread private or communal installation of

wells and pumps for water supply and irrigation – that it is well aware of and able to harnessthe benefits of water. On the other hand, there have been many impediments to effectivedevelopment and management of the nation’s waters, including its position as the mostdownstream riparian state in the Ganges system, rapid population growth, politicalcircumstances that have hindered progressive action, and a public sector that has sufferedfrom a legacy of bureaucratic procedures, conservatism, and other weaknesses.

National policies and reforms. Good progress has been made in undertakingcomprehensive sector reviews and developing national policies and reforms, with a NationalWater Policy approved in 1999. Implementation has been less successful, and revision of water-related law also is taking more time than expected.

Water resources management. Good progress is being made in many aspects, particularlythose related to the provision of information about resource availability and the social andenvironmental effects of development. Particular areas of weakness include a lack of formalarrangements for water allocation and ineffective regulation of wastewater discharges.

Improving water services. This is as an area in which Bangladesh is presently makinglimited progress. There is pervasive state involvement in the water sector, with very limitedengagement of the private sector (except for the major involvement of NGOs, communityorganisations, and individuals in providing their own services at village and household level).State-provided services suffer from low levels of cost recovery and inadequate budgets for operation and maintenance, so that service coverage is low and its quality is poor.

Conserving water. Performance in this area is mixed. Regulation is pervasive (but notnecessarily effective), and participation of beneficiaries (including the poor) in project designis normal so that in principle they can be engaged in water conservation. However, water services are subsidised by the state and tariff structures and collection provide little incentivefor water conservation. Education largely is restricted to internationally funded projects.

Promoting regional cooperation. Bangladesh, as the most downstream riparian state, hasparticular interest in this area, but progress generally has been weak. The 1996 Treaty onSharing of the Ganges River is not comprehensive and there are no agreements with regardto other shared rivers; projects generally are carried out unilaterally, in some cases to theclear disadvantage of Bangladesh.

Fostering participation; capacity building; networking. Public participation, government-stakeholder partnerships, gender equity, devolution etc. are incorporated into official policies.



85

Implementation generally is slow, but developing. Technical education and training is wellprovided for in Bangladesh, but more general capacity building is limited, and there is littleeffective international networking.



86

CAMBODIA: COUNTRY BRIEF

Water is firmly on the agenda in Cambodia, because of its importance to food security andrural livelihoods. ESA support has enabled promotion of water issues through a series of high-profile events, so the stage is set for progress. However, progress is being hindered bypolitical uncertainty and governance issues, while the socio-economic environment(particularly in terms of the extent of rural poverty and difficulties in increasing rates of economic growth) is not conducive to innovative approaches to resource management.

National policies and reforms. With ESA support, good progress has been made on sector review and policy development, and the senior political leadership has taken an activeinterest in administrative reform. Passage of a draft Law on Water Resources Managementappears to have been hindered by political uncertainties, so implementation of policies ishindered by lack of a legal base for enforcement.

Water resources management. Progress in water resources management is very mixed.There has been some recent good progress in diverse areas such as flood disaster

response, social and environmental impact analysis, and promoting community engagementin projects. ESA-funded projects generally promote “good practice”. However, there areareas of weakness, such as a very inadequate information base, a lack of enforceablemechanisms for water allocation, and limited effort in the management of water quality andcatchments/forests/wetlands.

Improving water services. Provision of water services presents many challenges, withheavy involvement of public agencies, inadequate budgets and minimal levels of costrecovery, and limited engagement of the private sector or beneficiaries. As a result, physicalinfrastructure commonly is in a very poor state and water service delivery quality is poor or non-existent. The Phnom Penh Water Supply Authority (PPWSA) is a notable exception tothis, as a result of heavy investment, autonomy, and strong leadership.

Conserving water. Progress is being made in several aspects, particularly in adoptingpolicies with regard to cost recovery, water tariffs, regulation of wastewater discharges, andbeneficiary participation. The PPWSA is the leading example of how these policies are beingeffectively implemented; implementation in other areas of water use is much less advanced.Only recently have decision makers begun to realize that Cambodia is “water-wealthy” onlyin the wet season, and that water conservation during the dry season is essential.

Promoting regional cooperation. Cambodia participates in the work of the Mekong River Commission, and derives significant benefit therefrom, particularly in regard to floodmanagement and water resources information. As a downstream riparian state, Cambodiahas a particular interest in regional cooperation, and there remains much scope for

addressing basin-scale issues that impact on its interests.

Fostering participation; capacity building; networking. Progress is only now being madein these areas, and it is heavily dependent on external assistance. The legacy of acentralised state that took responsibility for water resources management and servicedelivery, low levels of education, and a general lack of funds have hindered initiatives inareas such as participation of civil society in project design and management.



87

INDONESIA: COUNTRY BRIEF

Indonesia is in the midst of major political and administrative changes, such as a far-reaching process of decentralization, that provide an uncertain environment for developments in the water sector. There have been large investments in water sector reformin recent years and good progress has been made in some areas, but sustainedimplementation of reforms have been more difficult to achieve, and results slow tomaterialise. Indonesia’s leadership in river basin management provides a promisingfoundation for future change, however.

National policies and reforms. Excellent progress has been made in reviewing anddeveloping water resources policy, but modernising the legislative basis and implementingchanges on the ground is proving less easy to achieve.

Water resources management. Water resources and infrastructure management at theriver basin scale (Brantas and Citarum Rivers) and flood mitigation are widely regarded as asuccess in Indonesia, and steps are being taken to extend them to basin level organisations.

Many other aspects of WRM and the management of catchments/land cover and wetlandshave been less successful, including the provision of basic information on water resources,establishment of mechanisms for water allocation, and the management of pollution,sedimentation and water quality.

Improving water services. Water services largely are provided and managed by variouslevels of government; government-owned utilities have limited autonomy or accountability.Service levels and coverage tend to be low, and reliance on central funding for O&M andinvestment has led to the deterioration and disrepair of much infrastructure. Some efforts arebeing made to transfer responsibility to beneficiaries, but success is slow in coming. There islimited private sector engagement, except that many irrigation schemes are operated by thefarmers themselves.

Conserving water. There is a history of state provision of water services, which generallyhas provided limited incentive for the community to conserve resources. Regulatory, tariff and educational arrangements have not been such as to encourage the public to use water efficiently.

Promoting regional cooperation. Indonesia, although an island country, does have someinternational borders. The awareness of issues related to shared waters is at an early stageof development, and there is as yet limited provision for joint management of shared waters.

Fostering participation; capacity building; networking. Public participation, public/privatepartnerships, gender sensitivity and other internationally promoted approaches to water

resources management are being incorporated into Indonesian policy and into water-relatedinvestments funded by international agencies. However, their effective implementation isproving slower to achieve. Capacity building, especially at sub-provincial and communitylevels, also is at an early stage.



88

KAZAKHSTAN: COUNTRY BRIEF

Independence has created a new environment for water resources management and servicedelivery, which requires a long-term response. Much infrastructure was designed for conditions that no longer exist and is fundamentally uneconomic, leading the Government tointroduce measures for cost recovery, transfer of responsibility for O&M to beneficiaries,devolution of ownership, etc. Significant international assistance is being received, withcapacity building and introduction of “good practice” through project design andimplementation, and Kazakhstan is centrally involved in international attempts to halt andreverse degradation of the Aral Sea.

National policies and reforms. Good progress is being made with review of the sector, theWater Code is being revised and Basin Management Authorities are being established.Policies and laws are not fully coordinated or comprehensive, with arrangements for management of the water resource itself being an area requiring further attention.

Water resources management. Some aspects of WRM such as the availability of a sound

information base and the use of social and environmental impact assessment are welldeveloped. Good progress is being made in other areas, notably addressing water qualityissues and introducing basin-scale management. Nevertheless the condition of many of thecountry’s natural waters, wetlands, and in particular the Aral Sea clearly are unsatisfactoryand will require substantial remedial effort. International water management arrangementswere developed for pre-independence circumstances, and are not necessarily able to meetcurrent needs.

Improving water services. Service levels have declined in many systems sinceindependence because of a lack of resources for O&M and investment. Policies areprogressively being implemented throughout the country, to transfer costs or ownership/operating responsibilities to communities and user associations. Internationally

funded projects are assisting in a number of cities and provinces to introduce greater levelsof beneficiary participation in service delivery, and so to improve service levels andsustainability.

Conserving water. Progress in this area is mixed. Regulatory mechanisms are wellestablished but do not necessarily promote conservation of water quantity and quality. Publicutilities shifted to a no-subsidy regime in 1996, but tariffs in general are set too low to cover costs or to discourage waste of water. Pre-independence state provision of water servicesdeveloped a culture in which their real costs and value was unrecognised, and this will taketime to change.

Promoting regional cooperation. Pre-independence arrangements for shared water

resources have been under stress because of different priorities, but international concernwith regard to environmental degradation, especially of the Aral Sea, is promoting re-engagement. Kazakhstan is the downstream riparian country and it has experiencedsignificant adverse effects of upstream actions, especially with regard to HEP operations.Collaborative frameworks and water-sharing agreements need more development toaddress the issues.

Fostering participation; capacity building; networking. Much infrastructure has beendevolved to community level, but CBO/NGO capacity still is limited, and mechanisms for participation need development. National capacity for training, education and capacitybuilding has deteriorated since independence, and needs rebuilding.



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KIRIBATI: COUNTRY BRIEF

Kiribati, a small, poor atoll nation with no surface water, is highly water-stressed, and theentire population is aware of the scarcity and value of water. Sustainability of potable water is a dominant national issue, and there is an extensive body of law/regulation that provides afunctional basis for water administration. The small population and its cultural/kinship tiesprovide an unusually favourable environment in which to achieve community consensus.

National policies and reforms. A water sector review recently has been completed. Theprovision of drinking water is the predominant water issue, and the mechanisms needed for dealing with it are relatively straightforward. Regulations and legislation in effect set policy;the law and its implementation are not wholly adequate, particularly where populationpressure on catchment areas is greatest.

Water resources management. Many aspects of WRM function well, although they are notnecessarily sophisticated, including for example the information base, water allocationmechanisms, and design of water projects with community involvement and support. Other

aspects are less satisfactory, such as measures to counteract sea flooding, the applicationof environmental impact procedures, and the management of contaminated water (from pittoilets, septic tanks etc).

Improving water services. Domestic water supply is by the Public Utilities Board and IslandCouncils; service providers are very close to and responsive to the community and notionsof autonomy, private sector engagement etc. are of little relevance in this society. Facilitiesare being progressively upgraded with substantial international assistance; service quality(e.g. in terms of the high salinity of delivered water) may be low by international standards,but is realistic in the circumstances. However, sanitation is largely household-based andinadequate, with adverse effects on the groundwater resource.

Conserving water. The regulatory framework, provisions for service cost recovery, water tariffs, community education and participation, etc. are such that levels of wastage probablyare low, and a high proportion (~80%) of O&M costs are recovered. Atoll island people arealways conscious of the value of freshwater and the need not to waste it.

Promoting regional cooperation. As an island nation, Kiribati does not have a direct needto engage with other countries in water management. However, it is heavily dependent oninternational assistance to provide water (and many other) services, and is involved inPacific regional exchange of experience.

Fostering participation; capacity building; networking. Kiribati has a highly participatory,community-based approach to decision making that extends to water-related matters,

although women have somewhat limited influence even in this area. Recent major investment projects have been able to build on this, to ensure the participation of civilsociety.



90

KYRGYZ REPUBLIC: COUNTRY BRIEF

Independence has left the Kyrgyz Republic in dire circumstances, and the centralGovernment has shown considerable willingness to accept international guidance withregard to across-the-board reform. In accord with this, significant changes are beingintroduced in the water sector, although there are many impediments to effectiveimplementation, such as weak institutional capacity and loss of capable people. Reforms arefocusing particularly on delivery of water services, and their application to water resourcesmanagement appears to be lagging somewhat.

National policies and reforms. Reviews have been carried out and policies are beingintroduced in a number of areas, although with no overall water policy so far, particularly withregard to management of the resource. Other aspects of the legal/policy framework, such asmodernisation of water-related law and coordination of water-related activities, appear to beproceeding rather more slowly.

Water resources management. Good progress has been made in a number of areas, such

as incorporation of water quality management into sector investments. Catchment/wetlandconservation and flood management/response also are areas of progress. There are, on theother hand, areas of weakness, such as mechanisms for water allocation that do not meetpost-independence needs, weak provision for management of wastewater discharges, and afocus on structural flood management measures with only recent moves to non-structuralapproaches.

Improving water services. Post-independence financial circumstances have led to asevere deterioration and water-related infrastructure and service levels, and rehabilitation of systems is urgently required. Much infrastructure is being turned over to communityorganisations, village authorities, and embryonic Water User Associations, although publicutilities and Government departments are still substantially engaged. Government accepts

the need for recovery of costs, but there is an historical unwillingness to pay and receipts aresmall, so that there is still a high level of subsidy or simple lack of funds for O&M andinvestment.

Conserving water. A traditional culture of state-provided “free water”, with very low tariffs,has not encouraged efficient water use. Because supply reliability is so low, water use isdeclining. Regulations, increased tariffs, public education and other mechanisms are beingintroduced to cope with post-independence circumstances but will take time to be effective.

Promoting regional cooperation. International arrangements for shared waters date fromSoviet times and are not necessarily appropriate today. Since independence, KyrgyzRepublic and other riparian states largely have acted independently, but internationally-

funded projects are working to alter this. Water projects in Kyrgyz Republic are largelyrehabilitative at present, so their implications for other riparian stakeholders are limited.

Fostering participation; capacity building; networking. Participation of civil society inwater-related projects is actively fostered by internationally-funded projects, althoughprocedures are still being operationalized and the incorporation of gender-related elementsneeds further development. Human capital in the sector has declined since independence,and capacity building is proceeding largely in the context of internationally-funded activities.



91

LAO PDR: COUNTRY BRIEF

The Government has introduced many economy-wide policy reforms in recent years, inresponse to economic conditions and development needs. These include, for example,opening the way for private sector engagement and decentralising responsibilities to sub-national levels. There has been considerable technical assistance from internationalorganizations (IOs) to introduce water sector reform and institutional change, although slowprogress has been made in some areas. Financial resources are very limited, so that mostdevelopment investment, rehabilitation and some recurrent costs have been met by IOs.

National policies and reforms. Good progress has been made in water sector review,policy development and planning, and in establishing a modern legal basis, althoughimplementation of some aspects of reform, particularly with regard to coordination, is takingmore time to action.

Water resources management. Progress in this area is mixed. There has been goodprogress in such aspects as improved flood mitigation measures and avoidance of adverse

environmental/social effects of development, in which the country has benefited from theincorporation of good practice into projects funded by IOs. In other areas, such as theavailability of data for design and operational purposes, mechanisms for water allocation, or the management of water quality and wastewater, progress has been weaker.Decentralisation of responsibilities to sub-national bodies requires the building of management capacity, which will take time.

Improving water services. Because of limited financial resources for O&M and investment,service coverage and quality has been declining, but funding from IOs is enabling water services to be extended and improved. Water-related infrastructure has been a stateresponsibility, but engagement of beneficiaries through CBOs – particularly for O&M – isincorporated into current projects, as a means of achieving system sustainability. Facilities

are being transferred to communities and Water User Associations; the process will taketime to implement. There is limited engagement of the private sector in water services,except for community groups and individual water users.

Conserving water. There is a tradition of state provision of services, with heavy subsidiesand tariffs that are set at “affordable” levels that are inadequate to cover costs. Costrecovery is accepted in principle but implementation is at an early stage, particularly via IO-funded projects, and there is strong community unwillingness to pay for services.

Promoting regional cooperation. Lao PDR is a signatory to the Mekong River Agreement,which provides a valuable vehicle for cooperative activities and resource management in thebasin. The Lao National Mekong Committee is active, but the ability of Lao PDR to promote

arrangements to equitably manage shared Mekong resources is limited by its size andposition.

Fostering participation; capacity building; networking. Progress is being madepromoting community participation in water projects, particularly those funded by IOs. Thetradition of state management of resources and provision of services is being modified toprovide more opportunity for government-community partnership (including opportunity for the involvement of women). Capacity building at all levels is a key element of currentprojects, but is very limited otherwise. Networking provides benefits largely to water professionals engaged in the projects/programs of MRC and other IOs.



92

NEPAL: COUNTRY BRIEF

Nepal’s political and security situation has presented difficulties in recent years for orderlyreform, but nevertheless policy development in the water sector has seen progress in manyareas. Nepal is a land-locked and “upstream riparian” country located between two verymuch larger nations, which brings particular issues which must be dealt with, in the contextof shared water resources.

National policies and reforms. Good progress has been made in sector review andstrategic planning, with policies in some areas being revised and adopted. The legalfoundation exists but is undergoing review. Water sector strategic and action planning isprogressing well. Mechanisms for coordination exist, but mandates and scope needstrengthening.

Water resources management. The situation is somewhat mixed, with good progressbeing made in areas such as environmental/social impact assessment and mitigation, and inforest/catchment/wetland protection and rehabilitation. Other areas show less progress,

particularly the effective management of water quality and wastewater discharges/nonpointsource pollution, and the use of both non-structural and structural flood mitigation measures.Water allocation mechanisms are not widely applied, and the information base needs to beextended.

Improving water services. Good progress is being made in transferring managementresponsibility of irrigation systems, and ongoing projects promote user-responsiveness andfull cost recovery in WSS. Increasing accountability and autonomy of public providers is atan early stage; there has been little progress in encouraging private sector investment. Thecondition of much infrastructure is such that service levels are unsatisfactory.

Conserving water. There is a high level of subsidy for access and regulatory systems are

weak, although at the same time user awareness of demand/supply conditions is high.Tariffs for irrigation waters are levied on an areal basis which does not encourage efficientuse; tariff structures for drinking water are designed to encourage conservation, but theeffects are not yet seen.

Promoting regional cooperation. Awareness of issues related to shared waters is highamong decision makers. Collaborative frameworks are in place to an extent, and Nepal’sdevelopment of waters generally takes account of downstream interests, particularly withregard to inter-basin transfers. There are cases of international coordination in some major river basins, but relations are not always amicable.

Fostering participation; capacity building; networking. There is strong stakeholder

participation in some irrigation systems, and excellent progress is being made in introducingconsultative processes, taking account of gender-related issues, and partnership betweengovernment and civil society in the planning of water supply and irrigation developments. Allthese are still developing, and implementation needs further strengthening. Capacity buildingis progressing, in the context of internationally-funded projects and regional activities.International networking is rather limited at present, enabled particularly by internationalorganizations such as GWP and ADB.



93

PAKISTAN: COUNTRY BRIEF

The political, governance and security environment has been unsettled since independence,with adverse impacts on natural resources management and on project implementation.However, the current government has commenced an ambitious program of governance,administrative and economic reforms, which can be expected to bring major benefits to thewater sector.

National policies and reforms. The water sector recently has been extensively reviewedand a National Water Policy is being developed. There is an extensive body of law thatneeds revision and integration, as well as consistent enforcement. Mechanisms for coordination are limited, except at the scale of basin-wide water allocation in the Indus River basin.

Water resources management. Pakistan has the largest integrated irrigation system in theworld, and in that regard water resources management practice is effective. Problemsassociated with salinization are severe, but are being tackled. However, there are many

areas of WRM in which further development is possible, including greater attention to socialand environmental effects of projects, management of water quality and wastewater/effluentdischarges, protection and rehabilitation of forests, catchments and wetlands, and equitableallocation of water at all levels.

Improving water services. In general, the situation with regard to the provision of water services is poor, but evolving. The national irrigation system, the largest in the world,functions, but the coverage, quality and reliability of urban water supply are poor and urbanwastewater treatment virtually non-existent. Major infrastructure is owned and managed bythe state and municipalities, and beneficiary participation is at an early stage of development. In rural areas there is extensive community provision and management of water infrastructure, by CBOs, individuals and (increasingly but with resistance) Farmer

Organizations and Water User Associations. There is little engagement of the private sector in water services, and little encouragement for it.

Conserving water. Regulatory mechanisms are in place but not much enforced. In general,heavy subsidisation of all water services and low tariffs do not encourage water conservation, and the public generally regards water as a free good supplied by the state.General levels of education are low and the community is poorly informed of water-relatedmatters, although projects funded by NGOs and IOs incorporate public information andparticipation. Cost recovery is at an early stage for water services, and far from adequate tocover O&M costs. Expenditure is totally inadequate to sustain or further invest in facilities.

Promoting regional cooperation. The Indus Waters Treaty with India is functional and

crucially important to Pakistan, as the downstream riparian. Otherwise, there has beenlimited engagement with other countries, except through projects and activities funded byIOs such as the GWP and ADB, and stakeholders other than water professionals havelimited understanding of water resources issues.

Fostering participation; capacity building; networking. Engagement of the community instate projects is at an early stage; policy is to promote participation and increasedresponsibility of community organisations, but there has been limited success to date, evenin projects funded by NGOs and IOs that actively promote participation. Technical trainingfacilities are well developed, particularly for senior people, but broadly-based capacitybuilding is much more limited, particularly to projects that engage CBOs. Networking toexchange expertise internationally also is limited, and largely informal.



94

PAPUA NEW GUINEA: COUNTRY BRIEF

Papua New Guinea faces many adverse external circumstances such as geographicalisolation and frequency of natural disasters, compounded by political instability, law andorder problems, and deteriorating social/poverty indicators. The recently developed JointCountry Strategy (ADB/World Bank/AusAID) seeks to arrest the apparent decline. Water issues relate generally to drinking water supply and environmental maintenance, as there isno systematic irrigation and no current plans for hydropower investment.

National policies and reforms. Water supply has received considerable attention in termsof review, policy development and law, but water resources management in general is badlyneglected, despite the efforts of the Bureau of Water Resources. Water supply is welladministered by the Water Board, which has legal authority for cross-sector activity.

Water resources management. Water resources management in the broad sense receiveslimited resources and attention, as does management of flood hazards, catchment areas,forests and wetlands. Water quality degradation is severe in places, and water supply

projects are attempting to react to this, but regulations with regard to wastewater treatmentand effluent discharges are not effectively administered. Management practices are better inother areas, including handling environmental and social effects of projects, and allocation of water to consumptive use.

Improving water services. Water services are restricted to urban water supply, in whichgood progress has been made. Major providers generally are autonomous and accountable,with private sector or commercially-based state enterprises in several towns. Servicecoverage and quality have been low, but are improving with IO-funded investment projects.

Conserving water. Tariff structures are set to cover costs rather than manage demand;there is considerable cross-subsidisation and cost-recovery is only partial. Marginal

profitability means that facilities may deteriorate without IO-funded investment; in manyplaces, though, there are no subsidies, no revenues, and no service. General levels of education are low, so that there is little education about water issues, including the need for conservation. Regulation of wastewater discharge is provided for, but not muchimplemented, so that conservation of water quality is adversely affected.

Promoting regional cooperation. PNG’s shared river basins are undeveloped, and thereare no shared projects and little international/regional engagement. PNG’s relationships arelargely as a recipient of donor funding, particularly from Australia and also the multilateraldevelopment banks. International cooperation generally is via a few senior and qualifiedindividuals.

Fostering participation; capacity building; networking. There is some unstructuredengagement of NGOs, particularly in rural WSS, and IO/NGO/donor-funded projectsgenerally make provision for participation in project design. There is growing recognition thatsustainability requires participation; however, women in practice still have a low level of involvement in water-related matters, despite formal recognition of their role. Capacitybuilding tends to focus on technical and professional staff of government agencies, but thereis growing effort to train beneficiaries in hygiene etc. Networking is limited, except for individuals with contacts in donor countries, particularly in Australasia.



95

PEOPLES’ REPUBLIC OF CHINA: COUNTRY BRIEF

The PRC faces severe water scarcity, as well as being vulnerable to hydrological extremes(floods and droughts). The importance of water has been recognised for many decades,leading to massive construction of reservoirs, dikes etc., as well as increasing emphasis onthe policy and management tools needed. Major changes in governance and the economy,such as a shift from a centrally planned to a market economy and devolution of functions toprovincial and district levels, have major implications for the water sector.

National policies and reforms. The water sector recently was reviewed; there is anextensive body of law, although coordination and enforcement present challenges. Policiesare set in various ways and a comprehensive set of water-related policies is in place for sub-sectors and for such matters as cost recovery. Several national and provincial agencies areresponsible for water management and service delivery, and 7 basin/lake commissions areadministered by the Ministry of Water Resources.

Water resources management. Current WRM practice has many good features, including

an extensive information base, legally established allocation mechanisms, and the existenceof river basin organizations in 7 major-interprovincial basins. In the past, lack of reference toenvironmental and social impacts has led to severe degradation of aquatic resources, butthis now is being dealt with more effectively, at least for large-scale projects. Water qualityand ecosystem aspects of WRM have been neglected, but major efforts now are being madeto regulate wastewater discharges and to clean up water bodies. Flood control has been amajor concern of Chinese governments, predominantly using structural measures untilrelatively recently. Beneficial effects of flood control are often counter-balanced bysometimes unavoidable adverse social impacts due to large scale relocation.

Improving water services. Access to safe water is high, 95%, in urban areas but 57% inrural areas, and inadequate management of wastewaters and nonpoint source

contamination has contributed to low achievement of river quality standards. Water serviceprovision traditionally has been a state responsibility, though more than half of irrigationsystems are owned and operated by the beneficiaries. Government policies are encouragingprivate sector investment (though it is slow to materialise), requiring water utilities to operateon a commercial basis (though with tariffs set to be affordable rather than to meet costs),and extending user participation to public irrigation systems.

Conserving water. The water sector is comprehensively regulated to implement national/provincial laws on water and environmental management. Financial instruments (tariffs etc.)are used to recover O&M costs rather than to encourage efficient water use, and are set tobe “affordable”. However, levels of state subsidy for water services are declining rapidly.Willingness to pay for services still is limited, but efforts to educate users (including e.g.

demonstration farms to promote water-efficient technology) are increasing in scope.

Promoting regional cooperation. The PRC is very ready to draw on the experience of others through international interchange. In regard to management of shared waters, thePRC has a formal treaty with other riparians for only one, although it is a dialogue partner inthe Mekong River Commission. Other riparians tend to feel that the PRC does not givesufficient consideration to their interests in shared waters.

Fostering participation; capacity building; networking. Participation of civil society inwater projects increasingly is enabled; management of I&D is highly participatory. The PRChas an extensive R&D and education/training infrastructure, although capacity building for water users and communities is much less extensive. There is active engagement with other countries through programs of IOs such as UNESCO, as well as through overseas study andacceptance of TA from bilateral and multilateral partners.



96

PHILIPPINES: COUNTRY BRIEF

The Philippines is one of the countries in Asia that has long enacted a water law - the Water Code of the Philippines that was passed in 1976 and has since governed the ownership,appropriation, utilization, exploitation, development, conservation and protection of thecountry’s water resources. The same law created the National Water Resources Board(NWRB) to administer and enforce the Water Code. The Code reflects the past efforts tobring a more holistic perspective and recent policies are generally supportive of anintegrated approach to managing the country’s water sector. The main challenge, however,has been to implement an integrated approach in a largely fragmented sector where morethan thirty government institutions are involved either in water resource management or inservice delivery.

In recent years, particularly after the enactment of the Local Government Code in 1991which mandated the decentralization to local governments of major central governmentresponsibilities, improving water governance in the country has been regarded as an urgentneed.

National policies and reforms. Good progress has been made in undertakingcomprehensive sector reviews and developing national policies and reforms. In 1994, thefirst National Water Summit was held which resulted in, among others, articulation of a water supply and sanitation policy and strategy within the purview of devolution as envisioned inthe Local Government Code. In 1995, a Water Crisis Act was passed giving governmentspecial powers to reorganize sector agencies, induce greater private sector participation andimprove the overall institutional environment. However, implementation of policy reforms torationalize the sector in the context of devolution has been slow mainly because of thevarying level of preparedness of local governments.

Water resources management. Managing the country’s water resources has been the

mandate of NWRB and this has been done through the water rights system. StrengtheningNWRB as part of the effort to strengthen water resource regulation has been vigorouslypursued. Executive Order (EO) 123 was approved by the President in 2002 reconstitutingthe composition of the Board to include agencies that are non-claimant to the resource.There are two functioning river basin organizations: the Laguna Lake Development Authority and Agno Rover Basin Commission.

Improving water services. With responsibility for planning, financing and managingimplementation of water supply now devolved to local governments, there is considerablechallenge to make local government invest in water or at least include water in their development priorities, including the challenge to enforce rational tariff and subsidy policy.The Government has taken major steps to make financing more accessible to local

governments. Furthermore, putting in place a regulatory framework is among the priorityareas for reform to improve efficiency in water service delivery.

Conserving water. Policies and guidelines to promote conservation are well in place. It isthe enforcement of these policies which is seen as quite weak. Water service delivery ishighly subsidized, and is therefore not providing incentive for conservation.

Promoting regional cooperation. Philippines does not have a direct need to engage withother countries in terms of managing shared water resources. But in-country cooperationamong water resources regions is one of the priority agenda particularly in certain parts of the country where scarcity of resource is a serious problem, e.g. Cebu City in the CentralVisayas Region.



97

Fostering participation; capacity building; networking. The Philippines’s experiencewith participatory irrigation has been showcased as one of the best practices. In the water supply sub-sector, community participation in planning, implementing, operating andmanaging community water systems has been exemplified through the formation of beneficiary associations. Capacity building has, however, been quite limited to projectsfunded from external donors.



98

SAMOA: COUNTRY BRIEF

Appropriate arrangements for the water sector in Samoa are defined by its nature as a smallPacific island state. There is little irrigation and some hydropower development, and drinkingwater supply, drainage/flood mitigation, and ecosystem maintenance are the main water-related issues. Samoa has a cohesive, well-ordered and relatively prosperous society,although the nation as a whole is not wealthy, has limited resources and suffers periodicallyfrom natural disasters, and is significant recipient of aid, particularly from South Pacificneighbours.

National policies and reforms. National water-related policy exists but is consideredinadequate; water sector review and revision of water-related law is in progress. Water resources recently have been brought under one ministry, but further progress in sector coordination awaits further review.

Water resources management. Progress in WRM practice is mixed. Environmental andsocial effects of projects generally are well considered, though there can be difficulties with

traditional land tenure arrangements (which also provide the basis for water allocation).Undeveloped forest, catchment and wetland conservation practices pose a threat to surfacewater resources and aquatic ecosystems; management of ambient water quality alsorequires much more attention, although drinking water standards are well managed.Drainage and flood mitigation require more effort, to avoid the negative effects of settlementin flood-prone areas by poorer families.

Improving water services. Good progress is being made with building physicalinfrastructure for water supply, and ensuring that services are responsive to users. Drinkingwater is provided by state enterprise and there is a high level of accountability, withautonomy a long-term goal, and movement also towards significant private investment insanitation and wastewater management.

Conserving water. Because of the small land area, catchments are small and flowsunreliable. There is state subsidy for water supply, although tariffs are designed toencourage efficient use while still being affordable. Good practice is being developed inservice cost recovery and a participatory approach to service provision generally is taken.However, appropriate user education is at an early stage.

Promoting regional cooperation. Samoa is an active participant in the Pacific Water Association and in other international exchanges through bilateral (e.g. with NZ Aid) andmultilateral (eg through SOPAC and WMO) links. Samoa’s island status limits the need for cooperation, except in terms of exchange of knowledge and technology.

Fostering participation; capacity building; networking. Samoa has a small populationand a culture that favour participation, so there is good progress in engaging civil society(including, in particular, women) in water-related projects. Capacity building is undertakenwithin the limits of national resources supplemented by assistance from IOs; internationalnetworking also is pursued, within limits set by resources.



99

SRI LANKA: COUNTRY BRIEF

Water resources are under increasing stress due to growing demand and competition,especially in the Dry Zone. Sri Lanka is emerging from a period of conflict and this, together with severe problems in governance, public administration and political instability havehindered progress in reforming water sector institutions. The PRSP envisages major structural changes in governance and the economy that will set the stage for progress in thewater sector.

National policies and reforms. There has been comprehensive sector review andcomprehensive policies have been adopted, if not implemented. A Water Law has beenpresented to Parliament but ongoing political changes have prevented its passage.Considerable progress has been made in designing coordinating mechanisms in the sector,but again their effective implementation has been held up by political circumstances.

Water resources management. The situation with regard to WRM is mixed. Areas of goodprogress/practice include the assessment and mitigation of environmental and social effects

of projects, and incorporation of water quality management into project design. Other areaswhich require more progress include implementation of effective water allocationmechanisms (the enabling legislation is held up), WRM based on river basins (includingcompletion of the restructuring of the Mahaweli Authority, long delayed), more effectivemanagement of forests, catchments and wetlands, and resolution of river managementproblems related to sand extraction and gem mining.

Improving water services. Much water-related infrastructure is provided and operated bythe state or local government, although there are many village-owned irrigation systems andNGOs/IOs have provided extensive support for (largely non-piped) rural water supplyfacilities. Users generally consider that the government is responsible for service delivery;since financial resources are inadequate, many systems are dilapidated or unusable.

However, the need for beneficiary participation and contribution to costs in order to ensuresystem sustainability is recognised in government policy, and is built into projects funded byIOs. The need for private sector investment in services is recognised also, but not yetenabled by legislation.

Conserving water. Regulatory systems are to be revised under the draft Water Act, but atr present regulatory mechanisms such as charges are variable and ineffective. Tariffs for irrigation water are too low to encourage efficient use and there is significant wastage as aresult of heavy subsidisation. Tariffs for domestic water are more realistic, but there is cross-subsidisation of domestic by non-domestic users. Current projects, which largely are fundedby IOs, provide for beneficiary participation in planning and operation, and for cost recoveryto assure system sustainability. They now commonly incorporate user education about

efficient water use, but this is at an early stage.

Promoting regional cooperation. There is some engagement with other countries throughmechanisms funded by IOs such as the S Asia Water Partnership, but as an island nationSri Lanka has no need of international arrangements for WRM. Inter-province cooperation isof more significance, and is provided for in the Constitution. Proposals for RBOs will provideanother mechanism for managing inter-provincial waters.

Fostering participation; capacity building; networking. Some progress is being made inpromoting government-community partnership and the participation of civil society in water management, and NGOs and CBOs play a significant role in many cases. Participatoryprinciples are taking time to become fully functional, particularly because of delays withestablishing the legal base. Capacity building is undertaken at all levels through IO-fundedprojects; international networking similarly is largely limited to IO-funded activities.



100

VIETNAM: COUNTRY BRIEF

Vietnam is undergoing rapid economic growth in association with the Government’s steps todevelop an open market economy. Water resources are consequently meeting increasingdemands (Vietnam is the world’s second largest rice exporter, for example), while at thesame time is under increasing stress from quality degradation. Water resourcesmanagement recently has been transferred to the Ministry of Natural Resources andEnvironment, signalling evolving perceptions of water in national development.

National policies and reforms. Sector review and strategy development is ongoing, with aNational Water Resources Strategy to be formulated during 2004. The Law on Water Resources, passed in 1998, embodies important policies although some gaps need to befilled and implementation of the law is not yet fully effective. The “apex” National Water Resources Council is becoming increasingly active as the senior coordination/advisory body.

Water resources management. Progress in WRM is mixed. Assessment of social andenvironmental effects is legally provided for, but the extent and effectiveness of the process

is not clear, and adverse effects seem to be downplayed. Decisions with regard to projectsgenerally are taken at a high level, with some internal discussion among government bodies,but there is increasing public debate about large water sector projects. Flood mitigation ishighly developed, although predominantly structural in nature, and progress is being made inforest/catchment/wetland conservation. Water allocation mechanisms, the availability of water-related data, and the management of water quality are areas requiring more progress.

Improving water services. In most service-related elements of the ADB Water Policy,limited progress has been made to date. Services generally are provided by the state, withlimited autonomy, accountability or responsiveness to customers. In public irrigationsystems, poor or variable service delivery discourages beneficiaries from paying fees, sothat a high level of subsidy (or system deterioration) is required. (It should be noted that

there are many small irrigation systems that are managed by water users or local authorities,with no government involvement; there has been limited progress to date with PIMD or IMT).Some limited private sector investments are being made in water services.

Conserving water. Water services are heavily subsidised and tariffs are not well structuredto encourage efficient use. Cost recovery to maintain infrastructure is included in policy but isnot effectively implemented, and regulatory mechanisms in general are at an early stage of development. The benefits of public participation in project planning and operationincreasingly are recognised, and participation is a feature of NGO and IO-funded projects,but implementation in general is at an early stage. Similarly, public education andinformation on water issues is beginning, especially in regard to water supply, but is not yetsystematic in the water sector as a whole.

Promoting regional cooperation. Vietnam is an active member of the Mekong River Commission but there is still little cooperation with PRC in the Red River basin. Someprogress is being made with joint projects, engagement with other countries, andcollaboration with regard to management of shared waters, although Vietnam tends tomanage resources on a unilateral basis.

Fostering participation; capacity building; networking. Participation of civil society andgovernment-community partnerships are weakly developed, and most water-relatedactivities are carried out by government. Gender-related issues in regard to WRM largely areneglected. Capacity building is well developed in regard to training and education for higher level officials, particularly in engineering, and increasingly is built into IO-funded projects.There is limited networking, although Vietnam participates in international activitiesorganised by organisations like MRC and UNESCO.



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Appendix 7

REVIEW OF THREE MODELS OF POLICY REFORM AND ORGANISATIONAL CHANGE

1. The consultant carried out an extensive literature review, and selected three caseanalyses and models that he considers could provide an appropriate framework for organising and analysing information on water sector policy and institutions. They have beendeliberately chosen for their diverse approaches. This appendix does not discuss thenumerous policy models that variously have been applied (reviewed, for example, by Lane(1990)). Many of them have academic appeal but appear (to the consultant) to be of limitedassistance “in the field”. Neither does it comprehensively summarize the findings of the threecase analyses.

The regression model approach

2. Saleth and Dinar (1999a, b; see Section III.A) applied multi-variate regressionanalysis to expert appraisals of water sector performance in eleven countries 8, to provide

perhaps the most structured comparative analysis of water sector institutions that has yetbeen conducted. They limited their definition of the water sector to consumptive uses, anddid not consider management of the water resource itself. The goodness-of-fit of their regression models was somewhat weak, and considerable interpretation of results andprofessional judgement was necessary. However, they obtained many insights into reasonsfor inter-country differences in water sector performance, and were able to develop plausiblerecommendations on how best to achieve successful policy and organizational change.

3. Their analysis considered water sector performance in terms of four components:

• Physical performance (e.g. condition of infrastructure; gap between demand and

supply)• Financial performance (e.g. gap between expenditure and cost recovery)• Economic efficiency (e.g. relationship between scarcity value and price of water)• Equity performance (e.g. equity between groups in the community)

4. Saleth and Dinar conceived the water institution as comprising water law, water policy, and administrative arrangements, each of which they characterized in terms of several attributes which they believed control the performance of the water institution andthe water sector as a whole. Many of these attributes are similar to the elements of the ADBWater Policy. Saleth and Dinar placed considerable emphasis on the external factors thatinfluence the performance of the water sector. Their approach is similar to the “demographicapproach” to comparative policy analysis, which is based on the idea that policy-making is areflection of the environment (Lane, 1990, p. 4). However, their analysis barely consideredwhat is perhaps the most important component, the factors that influence the extent to whichpolicy reform and institutional change have been successfully adopted.

5. The consultant has conceptualized the present analysis in a similar way to Salethand Dinar, using a model of the form:

SP = function of (XCD, SLPCD, SICD, CR) + ε (1) In which:

8The eleven countries were Australia, Brazil, Chile, China, India, Israel, Mexico, South Africa, Spain,

Sri Lanka, and the U.S.A.



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• SP is sector performance (in terms of adoption of policy reform, institutional change,etc)

• XCD is external constraints and drivers (e.g. political resistance to tariff increases,governmental commitment to private sector engagement)

• SLPCD is water sector law and policy: constraints and drivers (e.g. obstruction of a

new law for party political reasons, common recognition of the need for water to beallocated in a sequence of priority needs)• SICD is water sector institutional capacity: constraints and drivers (e.g. availability of

appropriately skilled staff, visionary leadership within a water sector agency)• CR is crises, shocks and other ‘one-off” events that induce change (e.g. a major flood

or drought, or conflict over water allocation for a new project)• ε is the “error” term, the unexplained/inexplicable variations

6. Quantitative indices for some of the terms in equation 1 may be found. Section V.Aused the rank value (C+D) as an index of SP. Indices of XCD might be water availability(m3/person/year) as an indicator of water stress (a driver for change) or national population(number of persons) as an indicator of ease of communication and consensus (a factor

opposing change). However, quantitative indices that would comprehensively address all theterms are not obvious, and the weak goodness-of-fit of Saleth and Dinar’s regression modelsindicates that their “expert ranking” approach to data collection only can indicate rather thandefine cause-effect relationships. In a later section, this approach is briefly applied, but it isconsidered to provide only an initial, exploratory step in an analysis.

The “force-response” model approach

7. Pollitt and Bouckaert (2000) have provided a fine example of comparative analysis of public management reform, considering in a structured way the similarities and differencesamong ten developed countries9 that had undergone extensive public sector reform duringthe last two decades. They framed their data collection and analysis in terms of a model of public management reform that can readily be applied to the water sector (Figure 1). Themodel includes elements of the political system, socio-economic forces, and theadministrative system; however, Pollitt and Bouckaert placed at its core the perceptions of the “elite” in the public sector regarding what reforms are desirable and feasible. The modelalso recognizes the significance of chance events and disasters. It was a basic assumptionof their analysis that public management reform proceeds simultaneously across the entirepublic sector, in response to the decisions of senior politicians and civil service “mandarins”.The assumption is that reform in a particular sub-sector such as water is likely to beconditioned generally by reform throughout the public sector.

8. Their analytical approach essentially was to assemble, for their sample of countries,

information on the model components shown in Figure 1, and to seek common aspects anddifferences. The analysis was, therefore, reliant on professional judgement andinterpretation, drawing on a structured database. There was a strong emphasis on thecentral component of their model, the elite decision makers – the “mandarins” and“ministers” of the civil service and the political executive. However, they also explored issuessuch as the trajectory of reform, the mechanisms whereby reform is actually implemented,and methods for measuring performance.

9. In contrast to Saleth and Dinar, Pollitt and Bouckaert considered the results of reformin terms of:

9The countries were Australia, Canada, Finland, France, Germany, Netherlands, New Zealand,

Sweden, U.K., U.S.A.



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• Operational improvements: efficiency and productivity, achieving outcomes andimpacts

• Process improvements: client and performance orientation• System improvements; structural and cultural change• Realization of a vision, such as achievement of “flexible government”

Figure 1. A model of public management reform (Pollitt and Bouckaert, 2000, p. 26).

10. In terms of Pollitt and Bouckaert’s model, the data so far collected for the presentstudy address principally the administrative system (items M, N, and O) of Figure 1.Commentary on the questionnaires, and interviews with ADB staff, provide some informationon the other items, but of an anecdotal rather than a structured and comprehensive nature.The sort of information available to Pollitt and Bouckaert for their selected countries is likelyto be less readily available for the water sector in the ADB’s DMCs, and its collection wouldrequire a process of in-country consultations with key individuals.

Organizational change as an approach to reform

11. Many of the elements of the ADB Water Policy would, in practice, be achievedthrough organizational change, because they define what are considered to be desirableinstitutional arrangements and procedures in the water sector. There is a rich literature onhow to accomplish organizational change, but a particularly pertinent analysis is that byHage and Finsterbusch (1987), Organizational change as a development strategy . A keyassumption of their treatment was that the motivation or pressure for change results from theidentification of a performance or output gap by decision makers. Only when there is ademonstrable gap between what the organization is achieving and what is desired by thosekey people will there be incentive for change to be pursued. Hage and Finsterbusch



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suggested, on the basis of the three main streams of organizational literature10, that gapsare of three principal types – employee performance and capacity, the organization’s abilityto innovate, and efficiency in producing outputs.

12. Hage and Finsterbusch developed an analytical framework to examine six cases of organizational change in developing countries. One of these was the National Irrigation Administration of the Philippines. Their basic model of the context and causes of performance and output gaps can be presented as a flow chart (Figure 2).

Figure 2. Model of organizational character, and performance (Hage and Finsterbusch,1987). O.D.: Organizational Development; O.T.: Organizational Theory.

13. Their analytical framework was based on the contingency theory of organizationaldevelopment, which holds that the desirable characteristics of an organization are contingenton the particular environment and other circumstances in which the organization exists. Anaspect of this theory is that organizations fit a typology that is applicable not only to

10 “Organizational development”, “organizational theory”, and “organizational design”.



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organizations in developed countries (in which it was derived), but also to those indeveloping countries11.

14. For each case study, Hage and Finsterbusch drew on available literature toassemble information in a common format of:

• synopsis of the case• performance and output gaps• environmental context: opportunities and constraints• structural, design and environmental changes• nature of the organizational change approach, including tactics used, intervention

level, motivational methods, and resources• results and conclusions from the analysis, focusing on organizational

characteristics

15. Their comparative analysis was based on a tabular synthesis of this information, andrelied – as with the two other studies already considered above – on inductive reasoning and

qualitative analysis. Only one of the case analyses was water-related, but the conclusions of Hage and Finsterbusch’s comparative analysis of the processes of and controls onorganizational change appear to be entirely applicable to water sector reform. A brief quotation from their conclusions provides some pointers for a comparative analysis of water sector reform:

16. Finally, we observe that these six cases illustrate a wide variety of institution-buildingstrategies. The first is to make an organization more organic, as in the Philippines, in order to make it more responsive to local needs and more innovative. The second is the morecommon strategy of reforming a bureaucracy to make it more efficient, as in India andGuyana. The third strategy is to decentralize to the regional level, as in Jordan. The fourth isthe creation of a department or team that offers management services to other organizations, the thrust of the intervention in Jamaica. The fifth is the development, testing,and diffusion of new managerial technologies, as in Colombia and Jordan. These do notrepresent an exhaustive list of institution-building strategies, but they represent quite distinctways of thinking about the problem of making institutions stronger. The question remains asto when one should use one strategy or another…

11The typology includes the mechanical-bureaucratic model (routinized, hierarchical and centralized),

the organic-professional model (innovative, with highly skilled staff, non-standard services), thetraditional-craft model (small size, artisanal quality of work), the mixed mechanical-organic model(characteristics of both basic models, to achieve routine large-scale production while incorporating adegree of innovation). On the basis of their analysis, Hage and Finsterbush recognized an additional

two models that they considered appropriate for developing countries, which they called the truncatedorganic model and the truncated craft model, both applicable under circumstances of very limitedresources and skills.



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Appendix 8

DRAFT TERMS OF REFERENCE FOR LEAD SECTOR ERFORM SPECIALIST(International consultant)

1. A Lead Analyst of water sector reform is being engaged to assist the ADB’s Water Sector Committee to undertake a comparative analysis of factors that influence progress inintroducing policy reform and institutional change in the water sectors of the ADB’sdeveloping member countries.

2. The principal output of the Lead Analyst’s work will be a report that analyses thefactors that influence the adoption and implementation of policy reform and institutionalchange in the water sectors of the ADB’s Developing Member Countries (DMCs). It will beexpected to consider the implications of its analysis for the ADB’s operations in the water sector, and to provide input to the forthcoming review of the ADB Water Policy. The reportwill draw on briefing papers to be prepared for 15-20 DMCs by national Specialists on Water

Sector Reform, and the Lead Analyst will play a key role in ensuring the consistency andcomparability of these briefing papers.

3. The Lead Analyst will undertake the following tasks:

3.1 familiarise him/herself with the ADB’s Water Policy and recent reportComparative analysis of water sector reforms .

3.2 Assemble documentation and publications on water sector policy reform,institutional change, water strategies and plans in the Asian and PacificRegion; sources should include ADB, World Bank, bi-lateral donors, UNsystem agencies, governmental and non-governmental organisations,

educational institutions, research institutions, etc. These documents andpublications must be fully referenced in the specialist’s report, and madeavailable to ADB staff on request.

3.3 Assemble key documentation and publications on policy reform andinstitutional change at the level of the entire government and economy of thecountries of the Asian and Pacific Region and world-wide, to provide thecontext within which reform and change in the water sector may be analysed.

3.4 Where necessary, assist the Chair of the Water Sector Committee to identifyand recruit suitable national Specialists on Water Sector Reform.

3.5 Liaise with and as necessary advise the national Specialists on Water Sector Reform, monitor their progress in completing their national briefing papers,and exercise quality control to ensure that consistency and comparability areachieved.

3.6 Visit each of the countries included in the analysis, to discuss the findings of each national briefing paper with its author, staff of the ADB Resident Mission(RM), and other key informants to be identified by the briefing paper author and the RM.

3.7 Consult with the Chair of the ADB Water Sector Committee, and other Committee members as appropriate, on the findings of the national briefingpapers and on the content and implications of the main report.



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3.8 Prepare a main report of approximately 40-50 pages, in English and fullyreferenced, on the factors that influence the adoption and implementation of policy reform and institutional change in the water sector of the ADB’s DMCs.Particular reference should be made to those matters identified in the reportComparative analysis of water sector reforms , that is, political environment,External Support Agency activities, engagement of the “elite” and officials,socio-economic environment, crisis events, performance/output gaps, theapproaches used, stage and trajectory of reform, and the results achieved.Particular attention also must be paid to the relationship between reform inthe water sector, other sectors of government and the economy, and inoverall governance and economic management. There should be analysis of other factors not included in the above-cited report, as appropriate. The reportshould indicate implications for the ADB’s water sector lending operations,knowledge management, technical assistance, and policy, particularly withregard to the planned review of the ADB Water Policy in 2005. The mainreport should be supported by appendices necessary to providesupplementary or detailed information and analysis.

3.9 Provide oral briefings, seminars and/or workshops at ADB HQ on the findings,in consultation with the Chair of the Water Sector Committee. The Lead Analyst also may be requested to present the results of the analysis at other venues.

4. The Lead Analyst will be engaged for a total period of twenty four weeks,commencing in June or July 2004. A draft report will be submitted to ADB by mid-January2005. The timing of consultations, oral briefings, seminars etc. (terms of reference 3.7 and3.9) will be arranged subsequently, in consultation with the Chair of the Water Sector Committee.

5. The work will be carried out as far as possible at the Lead Analyst’s home office, withtravel to DMCs and to ADB HQ to be arranged in consultation with the Chair of the Water Sector Committee.



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Appendix 9

DRAFT TERMS OF REFERENCE FOR NATIONAL SPECIALIST ON WATER SECTORREFORM

(National consultant)

1. Specialists on water sector reform are being engaged to assist the ADB’s Water Sector Committee to undertake a comparative analysis of factors that influence progress inintroducing policy reform and institutional change in the water sectors of the ADB’sdeveloping member countries.

2. The principal output of each sector reform specialist’s work will be a report thatanalyses the factors that have influenced the adoption and implementation of policy reformand institutional change in the water sector of the specialist’s assigned country. The briefingpaper will be used, along with equivalent briefing papers for 15-20 other countries, as inputto an international comparative analysis of sector reform.

3. The specialist will undertake the following tasks:

3.1 familiarise him/herself with the ADB’s Water Policy and recent reportComparative analysis of water sector reforms .

3.2 Assemble documentation and publications on water sector policy reform,institutional change, water strategies and plans in the assigned country;sources should include ADB, World Bank, bi-lateral donors, UN systemagencies, governmental and non-governmental organisations, educationalinstitutions, research institutions, etc. These documents and publicationsmust be fully referenced in the specialist’s report, and made available to ADBstaff on request.

3.3 Assemble key documentation and publications on policy reform andinstitutional change at the level of the entire government and economy of theassigned country, to provide the context within which reform and change inthe water sector may be analysed.

3.4 Consult with appropriate, informed individuals and organisations (as outlinedin (3.2) above) to supplement documentary and published sources of information.

3.5 Prepare a report of approximately 40-50 pages, in English and fullyreferenced, on the factors that have influenced the adoption and

implementation of policy reform and institutional change in the water sector of the specialist’s assigned country. Particular reference must be made to thosematters identified in Section VI.B of the report Comparative analysis of water sector reforms , that is, political environment, External Support Agencyactivities, engagement of the “elite” and officials, socio-economicenvironment, crisis events, performance/output gaps, the approaches used,stage and trajectory of reform, and the results achieved. Particular attentionalso must be paid to the relationship between reform in the water sector,other sectors of government and the economy, and in overall governance andeconomic management. Attention should be drawn to other factors notincluded in the above-cited report, as appropriate.

3.6 Provide an oral briefing and/or seminar on the findings, in liaison with ADBResident Mission or RSAN.



4. The specialist will be engaged for a total period of four weeks spread over the threemonths of June-August 2004. The draft report will be submitted to ADB by early September;the timing of the oral briefing and/or seminar will be arranged subsequently, in consultationwith the ADB staff concerned. The work will be carried out at the specialist’s home office,with local (in-country) travel for consultations subject to prior agreement by ADB.

Model Terms of Reference: Water Sector Reforms: Tracking Progress in Asia and the Pacific

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