WFPF ANNUAL WORK PROGRAM | 2020ii

Governance of the Water Financing Partnership Facility

WFPF Steering Committee Chair

WooChong Um, Director General, Sustainable Development and Climate Change Department (SDCC)

WFPF Steering Committee Members

Werner Liepach, Director General, Central and West Asia Department (CWRD)James Lynch, Director General, East Asia Department (EARD)Ma. Carmela D. Locsin, Director General, Pacifi c Department (PARD)Michael Peter Barrow, Director General, Private Sector Operations Department (PSOD)Kenichi Yokoyama, Director General, South Asia Department (SARD)Ramesh Subramaniam, Director General, Southeast Asia Department (SERD)

Water Sector Committee Chair

Qingfeng Zhang, Director, Environment, Natural Resources, and Agriculture Division, EARD

Water Sector Committee Members

Donneth Walton, Director, Environment, Natural Resources, and Agriculture Division, CWRDYong Ye, Director, Urban Development and Water Division, CWRDSangay Penjor, Director, Urban and Social Sectors Division, EARDJingmin Huang, Director, Urban Development, Water Supply & Sanitation Division, PARDHisaka Kimura, Advisor, PSODMio Oka, Director, Environment, Natural Resources, and Agriculture Division, SARDNorio Saito, Director, Urban Development and Water Division, SARDJiangfeng Zhang, Director, Environment, Natural Resources, and Agriculture Division, SERDVijay Padmanabhan, Director, Urban Development and Water Division, SERD

Facility Manager/Alternate

Robert Guild, Chief Sector Offi cer, SDCC Thomas Panella, Chief of Water Sector Group, Sector Advisory Service Cluster (SDSC)

Secretariat Thomas Panella, Chief of Water Sector Group, SDSCCoral Fernandez Illescas, Principal Water Resources Specialist, SDSCGeoff rey Wilson, Senior Water Resources Specialist, SDSCChristian Walder, Water Supply and Sanitation Specialist, SDSC Jacobus Johannes Veerman, Senior Water Resources Specialist, SDSC Sanmugam Prathapar, Senior Water Resources Specialist, SDSC Noriyuki Mori, Senior Water Resources Specialist (Dam Optimization), SDSCJelle Beekma, Senior Water Resources Specialist (Food Security), SDSCPia Reyes, Water Resources Offi cer, SDSCFatima Bautista, Operations Analyst, SDSCEllen Pascua, Consultant, SDSCRobert Domingo, Consultant, SDSC

Partner Funds Division

Jacob Sorensen, Director, Partner Funds Division (SDPF)Stella Tansengco-Schapero, Senior Financing Partnerships Specialist, SDPFMarites Torres, Senior Financing Partnerships Offi cer, SDPF Pablo Vazquez Gutierrez, Consultant, SDPF

iii

Contents1 | INTRODUCTION 1

2 | 2020 PROJECTED DEMAND FOR RESOURCES 3 3 | 2020 AVAILABLE RESOURCES 7

4 | PROJECT SELECTION AND PRIORITIZATION 9 5 | 2020 ACTIVITIES 11 APPENDIX: 2020 Pipeline of Water Lending 15

Figures1 Committed Water Investments, 2006–2019 32 Committed Water Investments, 2019 43 Pipeline of Water Investments, 2020 5

Table 1 Status of Fund Utilization and Balances 7

AbbreviationsADB Asian Development BankAWDO Asian Water Development OutlookDMF design and monitoring framewrok KSTA knowledge and support technical assistanceOP operational priorityTA technical assistance WAG Water Advisory GroupWFPF Water Financing Partnership FacilityWSG Water Sector Group

Notes(i) In preparing any country program or strategy, fi nancing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgment as to the legal or other status of any territory or area.

(ii) In this report, “$” refers to US dollars.

1

INTRODUCTION

This Annual Work Program for 2020 presents the priorities and activities for the Water Financing Partnership Facility (WFPF or “Facility”), as administered by the Asian Development Bank (ADB) on behalf of its fi nancing partners contributing to the Facility. Activities are to be fi nanced from the balance of contributions to the three trust funds: (i) the Multidonor Trust Fund1, with contributions from the Governments of Australia, Austria, Spain, and Switzerland; (ii) the Netherlands Trust Fund; and (iii) the Sanitation Financing Partnership Trust Fund, with contribution from the Bill & Melinda Gates Foundation.

The WFPF operation in 2020 will continue to be guided by the Water Operational Plan 2011–2020, the Facility’s Design and Monitoring Framework (DMF) as revised in 2017, and the Workplan for 2020 and 2021 of ADB’s Water Sector Group (WSG). The Water-Secure Asia-Pacifi c 2030, a strategic directions paper under preparation, will also provide additional guidance on priority areas that the Facility’s operation should take into consideration during the year.

The completion date for the Facility’s DMF is 31 December 2020 to coincide with the conclusion of the Water Financing Program. A new DMF for the WFPF operation after 2020 is under preparation as part of the ongoing work for the Water-Secure Asia-Pacifi c 2030 strategic directions paper.

1 Norway was part of the Multidonor Trust Fund from 2007 until its exit in October 2017.

3

Direct Project Support

ADB’s investment target under the Water Financing Program is at least $2.0 billion annually or a total of $30 billion from 2006 to 2020. As of end-2019, the achievement stands at 91%, with committed water investments reaching a total of $27.212 billion (Figure 1).2 Of these investments, $7.878 billion (or 29%) benefi tted from WFPF’s direct project support through (i) cofi nancing of transaction technical assistance (TRTA), (ii) grant component of loans, (iii) TA attached to loans, and (iv) other project development support through the direct charge modality.

2 Starting in 2018, ADB’s reporting on investments is based on “committed” and not “approved”. Committed means the loan agreement has been signed by the government.

2020 PROJECTED DEMAND FOR WFPF RESOURCES

Water supply, sanitation, and

wastewater management

Irrigation and drainage

Flood management

Water resources management

Hydropower generation

WFPF ANNUAL WORK PROGRAM | 20204

The total project approvals in 2019 stood at $2.242 billion, of which only $1.878 billion was committed (Figure 2), thus falling short of the annual target. A total of $0.311 billion (or 17%) benefi tted from WFPF support.

While the 2019 committed investments is off -target, the $2.788 billion shortfall to meet the $30.0 billion target by 2020 is considered attainable. The 2020 commitment pipeline is estimated at $4.389 billion.

The summary of the 2020 pipeline is provided in Figure 3 and details are provided in the Appendix. Further updating is ongoing as of this writing. The Facility’s direct project support during the year is aimed at facilitating achievement of the $30 billion investment target.

Water supply, sanitation, and

wastewater management

Irrigation and drainage

Flood management

Water resources management

Hydropower generation

Water supply, sanitation, and

wastewater management

Irrigation and drainage

Flood management

Water resources management

Hydropower generation

Water supply, sanitation, and

wastewater management

Irrigation and drainage

Flood management

Water resources management

Hydropower generation

5

Program Quality Support

WFPF will also continue to help advance work on improving governance and implementing reforms and capacity development through cofi nancing of knowledge and support technical assistance (KSTA) and other program quality support using the direct charge modality.

Other activities to support ADB’s operations departments were also identifi ed as a follow up to the Asian Regional Meeting of the Roundtable on Financing Water, held at the ADB headquarters in November 2019 in collaboration with the Government of Netherlands and the Organisation for Economic Co-operation and Development (OECD). These include (i) strengthening utility operational performance and planning, including climate change resilience and using performance assessments (e.g. AquaRating, etc.), and (ii) advancing work with utilities (e.g. Indonesia and Viet Nam) to accelerate eff orts on subsovereign operations.

The two KSTA projects indicated in the 2019 Annual Work Program were approved as planned. One is supporting the implementation of Strategy 2030 water sector priorities3 and the other is promoting the city/county/countrywide inclusive sanitation (CWIS) framework to actively encourage a holistic approach to cater to both sewered and non-sewered areas.4 In 2020, two additional KSTA projects are planned. One is to support peer-to-peer learning to share water knowledge from the People’s Republic of China (PRC), while the other is to facilitate the performance assessment of water utilities to help improve their creditworthiness.

3 KSTA 9875: Achieving Water Sector Priorities in Asia and the Pacifi c under Strategy 2030, serving as WFPF fund channeling mechanism, succeeding KSTA 6498: Knowledge and Innovation Support for ADB’s Water Financing Program which is ending in December 2020.

4 KSTA 9897: Accelerating Sanitation for All in Asia and the Pacifi c

7

2020 AVAILABLE RESOURCES

Based on the WFPF Secretariat tabulation, the balance available for allocation to projects in 2020 is $5.688 million as summarized in Table 1. Noting that the balance available under the Netherlands Trust Fund has geographic (limited to nine priority countries) and thematic (food security) restrictions, the resources available without such restrictions are only $0.576 million.

9

PROJECT SELECTION AND PRIORITIZATION

The selection and prioritization of projects to be supported in 2020 will be guided by the WSG Workplan which aims to support operations departments not only in meeting the target investments but also, more importantly, in promoting adoption of best practices and emerging innovative solutions in project design consistent with the ADB Strategy 2030 operational priority (OP) plans.

Water contributes to all seven operational priorities with specifi c actions being addressed under OP3: Tackling climate change, building disaster resilience; OP4: Making cities more livable; and OP5: Promoting rural development and food security.

For OP3, these include (i) enhanced efforts to address water quality, water productivity, and integrated water resources management, (ii) optimizing the security nexus between water, food, and energy, and (iii) enabling integrated solutions to move away from a siloed approach. For OP4, this focuses on holistic solutions, including smart water management, sponge cities approach, nature-based solutions, and inclusive sanitation to cover both networked and non-networked systems. For OP5, ensuring food security will require improved productivity through modernization of irrigation systems, which will include the utilization of automated control systems, water reuse, micro-irrigation, and the upscaling of remote sensing, drones, and smart phone applications, among others.

Decisions on allocation will also take into account the progress toward the targets indicated in the Facility’s DMF, noting that the Facility is now on its fi nal year.

At the water treatment plant by the Binh Duong Water Supply Sewerage Environment Company Limited (BIWASE), water quality is checked hourly by a staff , monthly by a health offi cial and quarterly by a higher inspector.

11

2020 ACTIVITIES

Water-Secure Asia-Pacifi c 2030

The fi rst half of 2020 will see the fi nalization of the Water-Secure Asia-Pacifi c 2030 strategic directions paper which will guide ADB’s water operations until 2030 and inform the direction of WFPF operation beyond 2020. The paper as currently drafted is founded on a set of fi ve crosscutting principles and four operational delivery activities to strengthen water security as follows:

• Crosscutting principles: (i) promoting inclusiveness; (ii) building resilience and adaptive capacity; (iii) embracing sustainability, the circular economy, and nexus; (iv) improving governance and catalyzing fi nance; and (v) scaling up innovation

• Operational delivery activities: (i) sustainable water resources management; (ii) reliable water supply, universal sanitation, and clean wastewater; (iii) effi cient and productive water for agriculture and energy; and (iv) reduced water-related risk.

The Facility will also continue supporting analytical work and water events as summarized in the succeeding section.

WFPF ANNUAL WORK PROGRAM | 202012

Analytical work

Asian Water Development Outlook 2020 edition. Following the fi nal coordination workshop in December 2019, the Asian Water Development Outlook (AWDO) 2020 is currently being fi nalized in time for the planned launch at the Singapore International Water Week in July 2020. For the fi rst time, this edition will include dedicated chapters on Water Governance and Water Financing prepared in collaboration with OECD. It will also include country case studies on India, Thailand, and Timor-Leste that demonstrate government initiatives to apply the AWDO methodology to develop policies that enhance water security.

Water Accounting and Productivity. The work with IHE Delft on water accounting in additional river basins and water productivity measurement in irrigation projects which began in March 2019 is scheduled to be completed in November 2020. The participating countries are as follows:

The water accounting data generated from this work is intended to be made publicly available through a proposed online platform to be developed under a planned collaboration with the Food and Agriculture Organization (FAO) through its Water Productivity Open-access Portal (WaPOR).

ASIAN WATER DEVELOPMENT OUTLOOK 2016

The Asian Water Development Outlook (AWDO) is a series of publications commissioned by ADB to increase the importance of water in the future development scenarios of Asia and the Pacifi c. Following the 2007, 2013, and 2016 editions will be AWDO 2020.

13

Knowledge Events

ADB Sanitation Dialogue 2020. This fl agship event which is convened by ADB alternately with the Asia Water Forum and Asian Irrigation Forum aims to keep sanitation high on the development agenda of ADB and its developing member countries. The event is planned for the last week of June 2020 and the discussions will center on how the adoption of the CWIS framework can be accelerated.

Asia-Netherlands Water Learning Week. Scheduled on 25–29 May 2020, this year’s theme will focus on water quality. The event will be held in conjunction with the Capacity Development Symposium being organized by IHE Delft.

Other major events. The following events will also form part of the 2020 Work Program.

15

Appendix: 2020 Pipeline of Water Lending ($ billion)

Department DMC Project NameEstimated

Water Component

CENTRAL AND WEST ASIACWRD PAK Greater Thal Canal Irrigation, Phase 1 – Project 150.00 CWRD TAJ Irrigation Modernization in the Vaksh River Basin Project 33.00 CWRD AFG Panj Amu River Basin Sector Project (Addl Financing) 18.28

CWRD AFG Support to Agriculture, Natural Resources, Rural Development and Transport

15.00

CWRD TAJ Water Resources Management in the Pyanj River Basin Project (Addl Financing)

15.00

CWRD PAK Hydropower Development Investment (Balakot) – Program 350.00 CWRD TAJ Irrigation Modernization and Sustainable Management Project 25.00 CWRD KAZ Irrigation Rehabilitation Project 249.80 CWRD PAK PRF for Punjab Water Resources Management Projects 6.32 CWRD UZB Sustainable Hydropower Project 60.00

CWRD KGZ Issyk-Kul Wastewater Management Project (additional fi nancing)

22.56

CWRD PAK KP Cities Improvement Project 140.00

CWRD GEO Livable Cities Development Investment Program, Tranche 1 (MFF)

80

CWRD GEO Sustainable Water Supply and Sanitation Sector Development Program (SDP)

50

CWRD UZB Tashkent Province Sewerage Improvement Project 160

CWRD UZB Water Supply and Sanitation Sector Development Program (RBL)

100

CWRD KAZ Urban Infrastructure Modernization Program and Finance Facility (Phase 1)

200

Total Central and West Asia 1,674.96Continued on next page.

WFPF ANNUAL WORK PROGRAM | 202016

Department DMC Project NameEstimated

Water Component

EAST ASIAEARD MON Vegetable Production and Irrigated Agriculture 37.00

EARD PRC Anhui Huangshan Xin'an River Ecological Protection and Green Development Project

75.00

EARD PRC Henan Dengzhou Integrated River Restoration and Ecological Protection

190.00

EARD MON Supporting Irrigation Schemes in Central Mongolia 3.00 EARD PRC Yunnan Sayu River Basin Rural Water Pollution 100.00

EARD PRC Heilongjiang Green Urban and Economic Revitalization Project (additional fi nancing)

75.00

EARD PRC Jilin Yanji Low-Carbon Climate-Resilient Healthy City Project 61.00 EARD PRC Hunan Xiangtan Low Carbon City Development 30.00 Total East Asia 571.00PACIFIC

PARD KIR South Tarawa Water Supply Project (excludes $2.0 million PDA amount)

13.00

PARD VAN Port Vila Integrated Urban Improvements Project 14.00 PARD RMI Preparing Urban Service Improvement Projects - PRF 5.00 PARD PNG Urban Water Supply and Sanitation Project 38.84 PARD FSM Chuuk Water Supply and Sanitation Project 14.00

PARD TUV Integrated Urban Resilience Project – Project Readiness Financing

4.00

PARD VAN Luganville Urban Water and Sanitation Project 11.00

PARD SOL Urban Water Supply and Sanitation Sector Project – Additional Financing

5.00

PARD RMI Ebeye Water Supply and Sanitation Project – Additional Financing

3.00

Total Pacifi c 107.84

Table Continued.

Continued on next page.

17

Department DMC Project NameEstimated

Water Component

SOUTH ASIA

SARD BAN Climate and Disaster Resilient Small-Scale Water Resources Management Project

100.00

SARD SRI Integrated Water Productivity Improvement Project 10.00

SARD BAN Irrigation Management Improvement Project-Additional Financing

13.50

SARD NEP Priority River Basins Flood Risk Mgt Project 50.00 SARD IND Himachal Pradesh Horticulture Development Project (PRF) 10.00 SARD IND Madhya Pradesh Urban Services Improvement Project - Phase II 300.00 SARD IND Rajasthan Secondary Town Development Sector Project 300.00 SARD IND Jharkhand Urban Infrastructure Improvement Project 149.00 SARD BHU Phuentsholing Township Devt Project-Additional Financing 10.00SARD IND Delhi Water Supply Improvement 168.00 Total South Asia 1,110.50SOUTHEAST ASIA

SERD VIE Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project in the South-Central Coastal Provinces project (CRIEM)

30.00

SERD PHI Integrated Flood Risk Management Sector Project 400.00 SERD CAM Community-based Tourism for Cultural Conservation Project 0.70 SERD MYA Yangon City Water Resilience Project 180.00

SERD LAO Water Supply and Sanitation Project (Second Additional Financing)

61.30

SERD PHI Sustainable Tourism Development Project 80.00 SERD PHI Angat Water Transmission Improvement Project 126.02 SERD TIM Water Supply and Sanitation Investment Project 47.00 Total Southeast Asia 925.022020 PIPELINE OF WATER INVESTMENTS 4,389.32

Table Continued.

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