Pöyry - IDP Consult, Inc.

Water Supply, Sanitation and Regulation

SERVICES FOR THE SECTOR EFFICIENCY IMPROVEMENT UNIT

Funder: Asian Development Bank / Government of Nepal
Agency: Ministry of Physical Planning and Works
Location: Nepal
Year: 2010
Brief: The Government of Nepal, through the Ministry of Physical Planning and Works (MPPW) applied for and received grant financing from the ADB toward the cost of Sector Efficiency Improvement Unit or SEIU under the Second Small Towns Water Supply and Sanitation Project (SSTWSSP). In context of the SSTWSSP, the SEIU Project aims to provide adequate water supply and sanitation across 20 subproject towns in Nepal. Another objective is to develop an efficient, effective and accountable water supply and sanitation sector instrument that reemphasizes improving operating efficiency and quality of service particularly in emerging urban areas. Through the SEIU, the MPPW expects a significant strengthening of performance monitoring capacities, specifically with respect to an active assessment of service delivery indicators and technical standards at the national, provincial and local levels. The SEIU will hence be principal in establishing uniform service standards for water supply and sanitation, and overseeing the assembly of a performance evaluation system that will document sub sector progress, enforce compliance to regulations, and recommend further policy refinements in areas that affect service delivery, utility operations, and performance efficiencies.
Tasks: Pöyry IDP’s role as international consultant focuses on three core areas: (i) policy support for water supply and sanitation; (ii) benchmarking and performance evaluation; and (iii) water supply and sanitation sector coordination. Specific activities significant to the pillar objectives include extensive assessment of the present national water supply and sanitation sector, including reports on current legislations, policies and practices. The team will also draft, test and integrate M&E and MIS schemes to a national water supply, sanitation and sewerage action plan, while generating recommendations for the creation of national WSS act. For the benchmarking component, the consultants are to develop a program for performance evaluation and ranking, which would undergo institutionalization, policy reformulation, and other proper interventions to enhance sector performance. The team would carry out specific studies to derive options for private sector participation, as well as capacity building programs to augment operations of water service providers. As regards the last component, Pöyry IDP will be tasked to review current and recent WSS sector projects from both external and localized development organizations – in view of recommending measures for coordination, resource use, capex financing and implementation.

WATER DISTRICT DEVELOPMENT SECTOR PROJECT

Funder: Asian Development Bank, PPTA 7122
Agency: Local Water Utilities Administration (LWUA)
Location: Nationwide, Philippines
Year: 2009
Brief: The objective of the PPTA (PPTA) was to design a sector loan of the Water District Development Sector Project. Pöyry IDP was involved in developing the WDDSP to a level of detail suitable for consideration by ADB for funding, as well as in designing implementation support and institutional development programs addressing sector reform, governance, and public awareness. The project was aimed at heightening the overall liveability and competitiveness in emerging urban areas outside Metro Manila through improved access to potable water supply and viable sanitation infrastructure, reinforced with attendant institutional capacity development initiatives that encourage effective program administration, operational efficiency and tenable resource management.
Tasks: Pöyry IDP was responsible for the review and assessment of the water supply and sanitation sector outside of Metro Manila; review of service coverage and demand for financing for water supply and sanitation; conduct of institutional and financial analysis of LWUA; and develop appropriate recommendations for financial and institutional reforms. The firm specifically assessed the demand of water districts (WD) for capital financing through LWUA and other sources; determined the most suitable approach for ADB intervention, including options for private sector modalities. Prepared comprehensive investment profiles and appraisal reports for water supply and sanitation of 5 subproject WDs, which were selected as pilot beneficiaries to the sector loan project. Prepared management, monitoring and implementation arrangements, as well as a detailed institutional framework for implementing the project.

INSTITUTIONAL STRENGTHENING FOR DECENTRALIZED SERVICE DELIVERY IN THE WATER SECTOR

Funder: Asian Development Bank, PPTA 7078
Agency: National Water Supply and Drainage Board
Location: Sri Lanka
Year: 2009
Brief: The project supports the Government and NWSDB efforts to improve water sector utilities’ management, especially financial management and regional developmental operations within the context of recent sector reforms and policies, including the operationalization of credible regulation, and in view of improving baseline performance across several indicators. The impact of the TA is defined as improved operating efficiency, baseline levels of service, and management performance in the water sector. Its outcomes are (i) the decentralization of NWSDB service delivery functions and (ii) the operationalization of NWSDB internal monitoring and regulatory systems.
Tasks: Pöyry IDP was responsible for the planning, design and development of four specific outputs for the TA: regional benchmarking and regional business development plans to encourage performance efficiency and effective operations management, (ii) a capacity development program for decentralized service delivery, (iii) a 5-year asset management plan for NWSDB to properly establish demand analysis, levels of service and infrastructure, and (iv) a program to facilitate internal monitoring and regulation in NWSDB.

DIAGNOSTIC STUDY OF THE PHILIPPINE WATER SECTOR

Funder: World Bank
Agency: Government of the Philippines
Location: Philippines
Year: 2008
Brief: This project is a thorough diagnosis of the nature of the problems that exist in the water sector including implementation barriers in the present political, economic, business, and financial environment. The diagnosis identifies the changes required to transform the sector into an efficient and effective one capable of delivering the services expected in a Middle Income Country
Tasks: The firm was responsible for undertaking a rigorous review of the historical developments pertaining to the transformation of LWUA, regulation, the formation of an apex body, and private-sector participation; Produced “issue notes” to analyze why previous reform efforts have not had their desired effect, or have had suboptimal impacts; Produced a report on the financial health of the sector based on available information from different segments of the sector including LGUs, WDs, and community-managed systems; Produced a report on the flow of funds used for the development of water systems to discuss the presence and significance of formal and informal allocations, and their implications to development and sustainability; Reviewed the institutional structure of the sector, the legal status of WDs and the relationship between them, LWUA and LGUs, regulatory arrangements outside Metro Manila, the transformation of LWUA under a reformist regime, and the potentialities of expanded private sector participation in the sector.

STRENGTHENING THE REGULATORY FRAMEWORK FOR WATER SUPPLY AND SANITATION

Funder: Asian Development Bank, PPTA
Agency: National Water Supply and Drainage Board
Location: Sri Lanka
Year: 2007
Brief: ADB TA aimed to develop and disseminate regulations for the water sector within the framework of the Public Utilities Commission Act to facilitate credible and independent, autonomous, accountable and transparent regulation for WS and sanitation providers. The project intended to draft relevant law amendments to existing regulatory bylaws, prepare supporting guidelines for operationalization (tariff methodologies and end-user primers), and to develop training programs and awareness campaigns to support independent regulatory initiatives.
Tasks: Pöyry IDP was responsible for fielding international experts who delivered an extensive review and reformulation options of the Public Utilities Commission Act, the prevailing tariff arrangements viz institutional governance and WSS provisions. Main activities include analysis and assessment of demand for institutional reforms, the effects and benefits of NWSDB regulation, as well as reviewing the key lessons learnt from previous regulatory initiatives in order to maximize social and economic benefit of regulation proposals. Team assessed the regulatory structures, roles and functions of the three key governmental water institutions; Prepared regulatory guidelines to be implemented such as those focused on the regulatory framework, functions and responsibilities of the commission, water supply and sewerage tariff, service obligations, customer service regulation, performance monitoring and performance indicators. Evaluated draft legislation, policies and recommendations in relation to the water sector, produced the previous year, and defined an alternative tariff methodology for water supply.

SECONDARY TOWNS WATER SUPPLY AND SANITATION

Funder: Asian Development Bank, PPTA
Agency: Department of Public Health Engineering
Location: Bangladesh
Year: 2005
Brief: The Project aimed to provide sustainable and safe water supply and sanitation facilities in selected district towns in Bangladesh. This is to improve health conditions and introduce public health and hygiene concepts, enhance the standard of living and quality of life of households, and accelerate industrial and commercial development. The improvements in physical facilities will be complemented with institutional development, focused on improving operational efficiencies. The TA critically reviewed the performance of the earlier phase of the Project and incorporate the lessons learned in the ensuing Project. Following that integrated approach, the project will improve water supply services in two phases: (i) rehabilitate the existing water supply facilities, and (ii) expand the service coverage to meet the future water demand. This will ensure that the investments are cost effective. The control of wastage will be an important feature of the design, and include bulk metering to monitor the production and distribution process.
Tasks: Pöyry IDP was responsible for conducting organizational, financial, economic and social analysis of the TA components, with respect to the scope, purpose, and levels of sector and subsector investment in the region. Main activities included a reviewed of the past performance of the DPHE as an executing and implementing agency for water supply and sanitation development projects as well as an institution for supporting operation and maintenance of urban water supply and sanitation throughout Bangladesh; Reviewed the Pourashavas’ and DPHE’s mission statement, objectives, human and financial resources, management capability, autonomy, scope of work and public reporting, and evaluated the pourashavas in the proposed project towns as local government institutions capable of implementing the project components and operating and maintaining existing and new water supply and sanitation facilities and services. Undertook a financial management assessment of DPHE as an executing agency and of the four representative Pourashavas as implementing agencies; Undertook a financial analysis of the Project and propose audit requirements to assess the Project financial viability and sustainability; and undertook economic analysis, covering government investment, policies and tariffs, fund source and fund disbursement arrangements; Organized and analyzed the socio-economic survey results in each of the proposed Project towns inclusive of all slum, squatter and underserved areas; and analyzed poverty incidence in each town, including the projected growth in the incidence of urban poverty, and described the nature and characteristics of poverty in selected towns.

STRENGTHENING OF MWSS’ PLANNING CAPABILITY IN WATER SUPPLY, SEWERAGE AND SANITATION SERVICE PROVISION

Funder: Asian Development Bank, PPTA
Agency: Metropolitan Waterworks and Sewerage System
Location: Metro Manila, Philippines
Year: 2005
Brief: The TA supported the preparation of the MTSP by strengthening MWSS’s capacity for water supply, sewerage and sanitation planning. The main objective was to update the MWSS’s sectoral master plans in Metro Manila, and therefore to help further optimize the investments proposed for MTSP. The TA included other important components: a study of the public’s willingness to pay for sewerage and sanitation services, and a draft policy for the establishment of government subsidies necessary to implement the optimized master plan.
Tasks: The consultant team reviewed institutional arrangements for the delivery of water supply, sewerage and sanitation services as proposed in earlier water supply, sewerage and sanitation master plans; Reviewed the roles and responsibilities of the water supply and sewerage regulatory body in regulating the water and wastewater sector in Metro Manila; Reviewed and updated the institutional relationships and organizational arrangements between the MWSS and the concessionaires to enable the delivery of the required services throughout the master planning period; Reviewed and updated the institutional relationships and organizational arrangements between the MWSS and the concessionaires and the regulatory agencies such as DENR, LLDA, PRRC and DOH to ensure that environmental targets are maintained relating to wastewater discharges in Metro Manila; and reviewed the Concession Agreements with MWCI and MWSI, including the modifications following the 2003 rate rebasing and the subsequent developments with MWSI, as well as respective KPIs on water supply, sewerage and sanitation.