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Bridging Troubled Waters: Assessing the World Bank Water Resources StrategyFigure D.2W ater Policy Review—Sample ProjectDesign Analysis1. Project Data:Country: PhilippinesProject Name—ID: Water Districts Development ProjectEffectiveness Date: Not Given in the last PSR of Dec 8, 1998Closing Date: June 30, 2003% Disbursed: NilTask Manager:Partners Involved:Reviewed By:Checked By:Date Posted:2. Project Objectives, Financing, Costs, and ComponentsProject Costs (US $ million) AppraisalTotal 80.7List Financing SourcesIBRD 56.8MWSS/City Government 11.5User Installation Charges 12.4Executing Agencies:Land Bank of the Philippines, LWUA, City Governments and MWSS.Objectives:(i). Help participating LGUs and water districts plan and implement sewerage and sanitation investments based on the residents’ wishesand willingness to pay.(ii). Assist the Government of Philippines in developing a transparent regulatory mechanism in order to facilitate private sector participationin water utilities.Components:(i). TA designed to pilot and field-test a privatized public performance audit system.(ii). Construction of sewerage, sanitation, and drainage infrastructure in the cities of Davao, Cotabato, Calamba and Cagayan de Oro.3. Overall Design Rating: 2.5Analytic Framework Institutional & Regulatory Economic and SocialNational/ Basin/ Legal,State Region Infra- Policy & Management Water Financing & Service Poverty/Level Level structure Planning & Regulatory Services Subsidies Charges Gender3 3 3.5 (WR) 3 (WR) 2 3.5 2.5 3.5 2(WS) 3 (WS) 2.54. Water Policy Review Issues:(i). Generally the water supply and sewerage (WSS) projects are designed in isolation from the national water resources development plans—though they conform to the specific strategies of the WSS sub-sector. The national water plans include those for the various sub-sectors;therefore, the development plans of the sub-sector components must link them to the national plans.(ii). Discussion of gender issues, particularly the role of women, are usually not adequately discussed in the project documents for WSS projects.64
AnnexesFigure D.2W ater Policy Review—Sample ProjectDesign Analysis (continued)5. Implementation Issues:(i).(ii).This project is facing major implementation projects, which shows weakness of project design, particularly the financing and implementationarrangements.The last supervision mission has rated the “DO” component unsatisfactory. Project restructuring and even cancellation are currently beingdiscussed.Evaluation NotesAnalytic FrameworkNational/State Level:Basin/Regional Level:InfrastructureInstitutional & RegulatoryLegal, Policy & Planning:Management & Regulatory:Water Services:Economic and SocialFinancing & Subsidies:Water Service Charges:Poverty/Gender Focus:The Government strategies and the work plans are well defined for the water supply and sewerage sub sector.These are based on full stakeholder participation and aim at creating an enabling environment for a largeand rapid infusion of private sector investments and to invest in sanitation infrastructure in a demand-driven,financially sustainable and technologically cost-effective manner. Unfortunately, in discussing the Governmentstrategies, no reference is made to the Government’s strategies and the on-going plan formulation.Same as above.A good participatory approach has been adopted in project formulation starting from the planning to the designstages. This would ensure that the project interventions are demand-driven. (p 4.6P and Annex 13) The projectfollows the Government’s development objectives for the WSS sub-sector. The environmental considerationsare taken into consideration in the project design. No resettlement is needed. The land for the facilities willbe purchased at the market price. The water resources assessment is weak in the project documents. The discussionof the water quality aspects is inadequate.The National Economic development Agency (NEDA) of the Philippines is the nation’s highest policy advisorycommittee, chaired by the President. The NEDA Board laid out policies for water supply and sanitation in 1994,which led to the formulation of strategies for the sub-sector development. These and the National Water CrisisAct of June 1995 provide the necessary regulatory framework for development.The Land Bank of the Philippines would on-lend to the City Level Local Government Units (LGUs) to implementthe project. The water districts would then operate the utilities. The implementation methodology is complexand risky.The Local Water Districts is a “water supply franchise” and would be the water service organization. Theseare autonomous bodies and would have full O&M responsibility.The financing terms are explicit, but difficult. The risk analysis is routine sensitivity evaluation of the probableset backs to the project assumptions.The cost recovery targets are well set based on the beneficiaries’ ability to pay for the services.It is not a poverty targeted operation. The discussion of the indigenous groups and the participation by womenis weak.65
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WORLD BANK OPERATIONS EVALUATION DE
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OPERATIONS EVALUATION DEPARTMENTENH
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Bridging Troubled Waters: Assessing
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AcknowledgmentsThis report examines
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ENGLISHFOREWORDThe comprehensiveapp
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ForewordENGLISHand regional capacit
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