SUDAN WATER SECTOR REFORMS AND INSTITUTIONAL ......Water Sector Reforms and Institutional Capacity Development Program i Currency Equivalents May 2015 UA 1 = SDG 8.39942 UA 1 = USD

AFRICAN DEVELOPMENT BANK GROUP

SUDAN

WATER SECTOR REFORMS AND INSTITUTIONAL CAPACITY

DEVELOPMENT PROGRAM

OWAS DEPARTMENT

August 2015

P

ub

lic

Dis

clo

sure

Au

tho

rize

d

Pu

bli

c D

iscl

osu

re A

uth

ori

zed

Water Sector Reforms and Institutional Capacity Development Program

TABLE OF CONTENTS

I – STRATEGIC THRUST & RATIONALE.......................................................................... 1

1.1 PROGRAM LINKAGES WITH COUNTRY STRATEGY AND OBJECTIVES ........................................... 1 1.2 RATIONALE FOR BANK’S INVOLVEMENT ...................................................................................... 1 1.3 DEVELOPMENT PARTNER COORDINATION ................................................................................... 3

II – PROGRAM DESCRIPTION .............................................................................................. 4

2.1 PROGRAM OBJECTIVE ................................................................................................................... 4 2.2 PROGRAM COMPONENTS............................................................................................................... 4 2.3 TECHNICAL SOLUTION RETAINED AND OTHER ALTERNATIVES................................................... 5 2.4 PROGRAM TYPE............................................................................................................................. 5 2.5 PROGRAM COST AND FINANCING ARRANGEMENTS ..................................................................... 5 2.6 PROGRAM’S TARGET AREA AND POPULATION ............................................................................. 7 2.7 PARTICIPATORY PROCESS FOR PROGRAM IDENTIFICATION, DESIGN AND IMPLEMENTATION ..... 8 2.8 BANK GROUP EXPERIENCE, LESSONS REFLECTED IN PROGRAM DESIGN .................................... 8 2.9 KEY PERFORMANCE INDICATORS ................................................................................................. 9

III – PROGRAM FEASIBILITY ................................................................................................ 9

3.1 ECONOMIC PERFORMANCE ........................................................................................................... 9 3.2 ENVIRONMENTAL AND SOCIAL IMPACTS .................................................................................... 10

IV – IMPLEMENTATION ........................................................................................................ 12

4.1 IMPLEMENTATION ARRANGEMENTS ........................................................................................... 12 4.2 MONITORING AND EVALUATION ................................................................................................ 15 4.3 GOVERNANCE ............................................................................................................................. 15 4.4 SUSTAINABILITY ......................................................................................................................... 16 4.5 RISK MANAGEMENT .................................................................................................................... 16 4.6 KNOWLEDGE BUILDING .............................................................................................................. 16

V – LEGAL INSTRUMENTS AND AUTHORITY .............................................................. 17

5.1 LEGAL INSTRUMENT ................................................................................................................... 17 5.2 CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION .......................................................... 17 5.3 COMPLIANCE WITH BANK POLICIES ........................................................................................... 18

VI – RECOMMENDATION ..................................................................................................... 18

APPENDICES

APPENDIX 1: SUDAN’S COMPARATIVE SOCIO-ECONOMIC INDICATORS APPENDIX 2: TABLE OF AFDB’S PORTFOLIO IN THE COUNTRY APPENDIX 3: KEY RELATED PROJECTS FINANCED BY THE DPS IN THE COUNTRY APPENDIX 4: MAP OF THE PROGRAM AREA APPENDIX 5: PROGRAM FRAGILITY ANALYSIS


i

Currency Equivalents

May 2015

UA 1 = SDG 8.39942

UA 1 = USD 1.40642

UA 1 = EUR 1.25405

FISCAL YEAR:

January 1– December 31

Weights and Measures

1 metric ton = 2204 pounds (lbs)

1 kilogram (kg) = 2.200 pounds (lbs)

1 meter (m) = 3.28 feet (ft)

1 millimeter (mm) = 0.03937 inch (“)

1 kilometer (km) = 0.62 mile

1 hectare (ha) = 2.471 acres


ii

ACRONYMS AND ABBREVIATIONS

AfDB African Development Bank Group

ADF African Development Fund

AWF African Water Facility

CB Country Brief for 2014-2016

CBoS Central Bank of Sudan

DfID Department for International Development

DG Director General

DP Development Partner

DWSU Drinking Water and Sanitation Unit

E&S Environmental and Social

ESAP Environmental and Social Assessment Procedures

ESMF Environmental and Social Management Framework

ESMP Environmental and Social Management Plan

EU European Union

FSF Fragile State Facility

FTRY Bank’s Treasury Department

GDP Gross Domestic Product

GoS Government of the Republic of the Sudan

IFAD International Fund for Agricultural Development

IFR Interim Financial Reports

ILO International Labor Organization

IPR Implementation Progress Report

I-PRSP Interim Poverty Reduction Strategy

ISS Integrated Safeguards System

JICA Japan International Cooperation Agency

M&E Monitoring and Evaluation

MoAF Ministry of Agriculture and Forestry

MoE Ministry of Education

MoENRPD Ministry of Environment, Natural Resources and Physical Development

MoFEP Ministry of Finance and Economic Planning

MoH Ministry of Health

MoLFR Ministry of Livestock, Fishery and Rangeland

MoWRIE Ministry of Water Resources, Irrigation and Electricity

MoWSS Ministry of Welfare and Social Security

NAC National Audit Chamber

NAPA National Adaptation Programme of Action

NGO Non-Governmental Organization

O&M Operation and Maintenance

OFAC Office of Foreign Assets Control

PIT Project/Program Implementation Team

PCR Project/Program Completion Report

PSC Program Steering Committee

RMC Regional Member Country

RWSSI-TF Rural Water Supply and Sanitation Initiative Trust Fund

SDFO Bank’s Sudan Field Office

SDG Sudanese Pound

SWC State Water Corporations

TSF Transition Support Facility

UA Unit of Account

UNICEF United Nations Children’s Fund

UNEP United Nations Environment Programme

USD United States Dollar

WaSH Water, Sanitation and Hygiene

WaSHSSP Water, Sanitation and Hygiene Sector Strategic Plan for 2011-2016

WFP United Nations World Food Programme

WUC Water Users Committee


iii

LOAN INFORMATION

Client’s information

RECIPIENT: The Republic of the Sudan

EXECUTING AGENCY: Ministry of Water Resources, Irrigation and Electricity

(MoWRIE)

Financing plan

Source Amount (million UA) Instrument

TSF Pillar I 15.000 Grant

RWSSI-TF 0.638 (EUR 0.800) Grant

GoS 1.944 Counterpart

TOTAL COST 17.582

AfDB’s key financing information

TSF Pillar I Currency

Unit of Account (UA)

RWSSI-TF Currency Euros

NPV (at 10% base case) SGD 1,931 million

EIRR (at 10% base case) 69%

Timeframe - Main Milestones (expected)

Concept Note Approval May 2015

Program Approval September 2015

Effectiveness October 2015

Completion June 2020

Last Disbursement December 2020

Last Repayment N/A


iv

Program Summary

Program

Overview

The objective of the Water Sector Reforms and Institutional Capacity Development Program

is to contribute to building a resilient and sustainable water and sanitation sector that meets

the needs of all users or beneficiaries in Sudan in particular West Kordofan State with a view

to contribute to peace building, improving livelihoods and building resilience against climate

variability and change.

Program outputs include: 1) Water sector policy and institutional reforms supported for the

better efficiency of the water and sanitation sector; 2) Capacity development for federal and

state staff and community supported for improved services and livelihoods; and 3) Water

supply points and sanitation facilities provided for the improved resilience and stability.

While institutional support and capacity development activities will benefit all 18 states of the

Republic of the Sudan as well as federal government institutions, physical intervention of the

program will directly benefit more than 130,000 people (69,000 women) in the rural areas of

West Kordofan State. Water supply points will also benefit approximately 730,000 heads of

livestock. Women and youth in the program areas will benefit from the provision of

livelihood interventions.

The program cost is estimated at UA 17.582 million of which UA 13.085 million is in foreign

costs and UA 4.497 million is in local costs. The Transition Support Facility (TSF) Pillar I

and Rural Water Supply and Sanitation Initiative Trust Fund (RWSS-TF) will cover 88.9% of

the program costs.

The program is expected to be implemented over 54 months starting January 2016.

Needs

Assessment

Despite a number of commitments and targets defined in the sector and nation development

strategies/plans, institutional capacity of the water and sanitation sector in Sudan remains

weak with levels of capacity varying from state to state and with inadequate institutional

framework. Water and sanitation access in West Kordofan State stands at 60% and 23%

respectively, which are below national averages of 71% and 35%. During the dry seasons

both human and livestock rely almost solely on groundwater sources in the state, mainly from

deep boreholes. Currently, per capital average water consumption stands at about 10 liters per

day, but this varies from less than 3 liters in some northern parts of the state to about 15 in

some southern and central parts. No area in the state has access levels of up to 20 liters per

day per capita, which is the target set for rural areas.

Bank’s Added

Value

The Bank’s Strategy for 2013-2022 is founded on the objective to achieve inclusive growth

and transition to green growth. It also gives a special focus on transitioning states.

Provision of water and sanitation services is a critical factor in avoiding inter and intra state

conflicts over natural resources, especially water, in target areas. Water and sanitation

services also contribute to addressing gender inequalities, enhancing social cohesion and

improving social services, increasing productivity and reducing poverty.

In line with the Bank’s Strategy for 2013-2022 and the Country Brief 2014-2016 (CB), the

program will contribute to promotion of inclusive growth, achieving social stability and

helping the country to acquire human and institutional capacity required to transition from

fragility. In addition, improved water infrastructure and services are crucial for building

resilient societies in the face of increasing climate risks.

Knowledge

Management

A sector assessment study will help understand the strengths and weaknesses of the sector

and will provide direction for improving the sector. A needs and gap assessment for the

sector monitoring and evaluation (M&E) will help mainstream the sector M&E mechanism

and inform the sector coordination. A baseline survey will be undertaken to better understand

the current status of the sector in West Kordofan State. Engagement with the communities

and the state water corporation (SWC) in developing sustainable operation and maintenance

(O&M) modalities for water and sanitation facilities will generate vital knowledge that could

be replicated in other parts of the state and the country.

The knowledge obtained from the program will be shared within the Bank and with other

development partners (DPs) and regional member countries (RMCs).


v

Results Based Logical Framework Country and Program Name: Water Sector Reforms and Institutional Capacity Development Program Purpose of the Program: To build a resilient and sustainable water and sanitation sector for conflict reduction, improved livelihoods and greater resilience to climate variability and change

RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF

VERIFICATION RISKS/MITIGATION

MEASURES Indicator (including CSI) Baseline (2014) Target (2020)

IMP

AC

T 1. Improved livelihood and health 1.1 Under five mortality rate 73/1000 (2012) 40/1000 (2020) National statistics

1.2 Primary school dropout rate 45% (2010) 2% (2020)

OU

TCO

MES

1. Improved governance of the water and sanitation sector

1.1 Sector coordination platform in place None Annual sector review organized by 2018

Program progress report

Insufficient capacity to sustain the infrastructure: The program will adopt community led O&M modality building on existing success model in the country. Reduced water resources due to climate change: The program activities will include adaptation activities.

2. Improved management capacity of the water and sanitation sector

2.1 No. of states using O&M and other technical guidelines developed by DWSU

2 18

2.2 % of water points managed by active water users committee (min. 30% women) in target villages

0% 80%

3. Improved water supply and sanitation services 3.1 Distance to nearest water point in target villages More than 10 km Average 2 km

3.2 Per capita daily water consumption in target villages Less than 10 liters 20 liters

3.3 % of average household expenditure for water 30% 20%

4. Increased social resilience among communities 4.1 % reduction in water-related conflicts within the target villages

NA 50%

OU

TPU

TS

Component 1: Water Sector Policy and Institutional Reforms Program progress report

Weak program implementation capacity: The program will utilize existing PIT which is familiar with Bank’s procedures. Deterioration of security situation: Program will avoid selection of sites with potential security threats. Delay in disbursement: FTRY has applied for an OFAC’s blanket approval for transfer of funds to projects/ programs in Sudan.

1.1 Sector policy developed 1.1.1 Sector policy reviewed and updated Draft in place Policy approved by end 2016

1.2 New construction standards for the water and sanitation sector prepared

1.2.1 Standards reviewed and validated NA Developed and validated by end 2016

1.3 The sector strategy developed 1.3.1 WaSH strategy for 2017-2021 developed NA Validated by end 2016

1.4 Tariff study and sector M&E assessment conducted

1.4.1 Tariff study and M&E assessment conducted None Study completed and action plan prepared by end 2018

Component 2: Capacity Development

2.1 Institutional capacity improved 2.1.1 No. of additional SWC staff trained 0 960 (min. 30% women)

2.2 Communities’ capacity improved 2.2.1 No. people sensitized on sanitation and hygiene 0 15,000 (minimum 50% women)

2.2.2 No. of water committees for water supply points and pipeline schemes established and trained

0 36 (minimum 30% women)

2.2.3 No. families supported with livestock restocking 0 700

2.2.4 No. of women and youth trained on income generating activities

0 2,000

Component 3: Water and Sanitation for Resilience and Stability

3.1 Water supply points for people and livestock provided

3.1.1 Length of pipelines laid 0km, 0km 30km, 50km

3.1.2 No. of water yards constructed and rehabilitated 0, 0 11, 25*

3.2 Sanitation facilities constructed 3.3.1 No. of gender and disabled sensitive latrines in schools, health centers and markets constructed

0 25, 10, 6

KEY

AC

TIV

ITIE

S

ACTIVITIES INPUTS

Component 1: Water Sector Policy and Institutional Reforms: Institutional assessment: Review and update of the draft sector policy; Establishment of sector coordination mechanism; Development of a new sector strategy; Review and update of the standards; Tariff study; and Sector M&E assessment. Component 2: Capacity Development: Rollout of training materials/modules; Support to training center in West Kordofan State; Training for Communities/ Water Users; Hygiene promotion and sensitization; Women and youth empowerment though income generating support; and; Studies for future investment projects. Component 3: Water and Sanitation for Resilience and Stability: Provision of water supply points - water transfer schemes and water yards; Construction of gender sensitive latrines that accommodate people with disabilities; and Establishment of hydrological monitoring networks. Component 4: Program Management: Establishment of a PIT; Baseline Study; Implementation of ESMP; and Program audit.

By component: 1) UA 1.51m, 2) UA 1.88m, 3) UA 12.81m, 4) UA 1.38m Total Program Cost - UA 17.58 million

TSF-Pillar I – UA 15.0 million RWSSI-TF – UA 0.64 million GoS – UA 1.94 million

* activity to be financed by the government


vi

PROGRAM IMPLEMENTATION SCHEDULE

Component A: Water Sector Policy and Institutional Reforms

Component B: Capacity Development

Component C: Water and Sanitation for Resilience and Stability

Component D: Program Management

Project Disbursment Deadline - Dec 2020

C-3 Provision of Water Supply Points for Human and Livestock

D-3 Program Audit

D-2 Monitoring of the Implementation of ESMP

2019

Q1 Q2 Q3 Q4

First Disbursment

A-7 Needs and Gaps Assessment of the Water and Sanitation M&E

A-6 Tariff Study for the Sustainability of Water Facilities

A-5 Review and Update of the Construction Standards for the Water and Sanitation

A-4 Development of a new WaSH Strategy (2017-21)

A-3 Review and Update of the draft Water Supply and Sanitation Policy

A-2 Review of Legal Framework for the Water Supply and Sanitation Sector

2020

Program Approval

Activity

Grant Signature

Grant Effectiveness

20182017

Q4 Q1 Q2 Q3

2015 2016

A-1 Sector Assessment and Establishment of the Sector Coordination

Q4 Q3 Q1 Q2Q4Q2Q1Q4 Q1 Q2 Q3Q3

C-4 Sanitation for Schools, Health Centers and Markets

D-1 Program Implementation Team

D-4 Steering Committee

Mid-term Review

Program Completion

C-2 Baseline Study of Water and Sanitation Facilities in West Kordofan State

C-1 Desing Review and Supervision

B-6 Establishment of Hydrological Monitoring Networks for Ground and Surface Water

B-1 Rollout of Training Materials/ Modules Developed by DWSU

B-5 Community based Activities for Women and Youth Empowerment

B-4 Training for Communities/ Water Users

B-3 Capacity Development at State Level

B-2 Capacity Development at Federal Level


1

REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARDS OF

DIRECTORS ON PROPOSED TSF-PILLAR I AND RWSSI-TF GRANTS TO THE

GOVERNMENT OF THE REPUBLIC OF THE SUDAN FOR THE WATER SECTOR

REFORMS AND INSTITUTIONAL CAPACITY DEVELOPMENT PROGRAM

Management submits the following report and recommendation on a proposed Transition

Support Facility (TSF)-Pillar I grant not exceeding UA 15 million and a Rural Water Supply and

Sanitation Initiative Trust Fund (RWSSI-TF) grant of Euro 0.8 million to finance the Water

Sector Reforms and Institutional Capacity Development Program in Sudan.

I – STRATEGIC THRUST & RATIONALE

1.1. Program Linkages with Country Strategy and Objectives

1.1.1 The Government of the Republic of the Sudan (GoS) recognizes the significance of the

water and sanitation sector which cuts across many other sectors and contributes to national

stability and sustainable growth. Indeed, the people’s right to access to water is underlined in the

country’s interim constitution (2005).

1.1.2 For many parts of Sudan including West Kordofan State, sustainable water and sanitation

service delivery is a critical factor in avoiding inter and intra state conflicts over natural

resources between farmers and pastoralists. Water and sanitation services will also contribute to

greater gender equality, social cohesion and improved social services such as education and

health care. This is through increases in school attendance and productivity and reductions in

water related diseases and expenditure for water and health. In addition, improved water

infrastructure and services are crucial for building resilient societies in the face of increasing

climate risks and otherwise low adaptive capacities against them.

1.1.3 The main challenges underpinning the water sector in Sudan include: 1) Inadequate

sector funding; 2) Limited implementation capacity; 3) Absence of approved water and

sanitation policies; 4) Low coverage of safe water (in quantity and quality) and improved

sanitation facilities; and 5) Unclear delineation of mandates/coordination among different sector

institutions. To address these challenges the Water, Sanitation and Hygiene Sector Strategic Plan

for 2011-2016 (WaSHSSP) and the draft Water Supply and Environmental Sanitation Policy

(2012) were prepared. The WASHSSP aims to increase per capita safe water consumption to 20

and 90 liters per day in rural and urban areas respectively by 2016. The target for sanitation is to

provide improved sanitation services to 67% of the population, both in rural and urban areas by

the end of 2016. The targets stipulated in the Government Quarter Century Strategic Plan 2007-

2031 is to achieve 50 and 150 liters of water per capita per day in rural and urban areas

respectively and full coverage in schools and health centers.

1.1.4 The objective of the proposed program is consistent with the priorities of: i) Interim

Poverty Reduction Strategy (I-PRSP) which focuses on strengthening governance and

institutional capacity of the public sector, developing human resources and promotion of

economic growth and employment creation; and ii) National Development Plan (2012-2016)

aimed at promoting sustainable economic development, sustaining peace and stability, reducing

poverty by expanding provision of basic services, and building capacity of public institutions and

civil society at state and local levels.

1.2. Rationale for Bank’s Involvement

1.2.1 By supporting the provision of water for domestic and livestock purposes, hence reducing

time and monetary burden of access to water and increasing productivity, especially in the rural

areas, the program supports inclusive growth in Sudan. The program strategically aligns with the


2

Bank’s Strategy for 2013-2022. It is also consistent with the Country Brief 2014-2016 (CB)

which is anchored on two pillars: (i) Governance and Accountability; and (ii) Skills and

Technology to assist the country acquire the human and institutional capacity required to get out

of fragility. Provision of adequate water and sanitation services to curb conflicts which is

precursor to stability and good governance in West Kordofan. The program is in line with the

Bank’s Integrated Water Resources Management Policy. Additionally, by building institutional

capacity of states to deliver basic services equitably, the program strategically aligns with the

Bank’s Strategy for Addressing Fragility and Building Resilience in Africa (2014-2019). In line

with Knowledge Management Strategy (2015-2020), the sector assessment studies under the

program and lessons from this intervention will help improve the quality of the Bank’s

involvement in Sudan as well as in other regional member countries (RMCs). The program’s

support to women’s entrepreneurship skills and livelihood is aligned to Pillars II and III of the

Bank’s Gender Strategy (2014-2018) on women’s economic empowerment and capacity

building respectively. Finally, the program is also consistent with the Bank’s Climate Change

Action Plan (2010-2015) by supporting improved resilience of communities against negative

impacts of climate variability and change.

1.2.2 The country’s water sector guiding policy has been in draft form for a while and requires

review and update. The WaSHSSP which has been guiding the sector is winding down in 2016.

Despite a number of commitments and targets defined in the sector and national development

strategies/plans, institutional capacity of the water and sanitation sector in Sudan remains weak

with levels of capacity varying from state to state, and institutional framework inadequate to

address the sector weaknesses. According to WaSHSSP, water and sanitation access in West

Kordofan State stands at 60% and 23% respectively, which are below national average of 71%

and 35%. In the northern part of the state known as “triangle of thirst” and the target area of the

program, the average per capita water consumption is less than 10 liters per day, which is about

half of national target in rural areas. Factors that are responsible for the low access include:

ineffective sector organizational set-up, inadequately-staffed and -funded water authorities at the

state levels, aging infrastructure and insufficient sustainability of water infrastructure due to

inadequate investments and past civil unrest and conflicts, and unclear and contested ownership

structures of water investments. Support to development of the sector policy and institutional

reforms will improve governance and accountability of the water and sanitation sector, which is

one of the core operational priorities of the Bank’s Strategy.

1.2.3 Engaging with transitioning states is one of the areas of special emphasis defined in the

Bank’s Strategy. The findings of the fragility assessment show that competition over water and

pasture, further exacerbated by climate change drives fragility and conflicts at the local level.

Significant numbers of conflicts in the state and within the Kordofan region (North, South and

West Kordofan states) are directly linked to water resources (competition due to scarcity). For

instance, 86% of about 50 cases of conflicts analyzed in 2003 were related to water and pasture.

Many of these conflicts have been between nomadic pastoralist groups interacting with farming

communities, and the conflict resolution mechanisms in local communities in the Kordofan

region are largely based on providing sufficient water resources to meet competing needs and

uses for different groups. Therefore, this program will assist the GoS in developing more water

resources to reduce communal conflicts and support building social resilience among water

users.

1.2.4 Water resources are also intricately linked to the economy of local communities in

Sudan. Specifically in the West Kordofan State, there are about 22.5 million livestock which

form the core of the local economy. Local households often spend as much as 50% of household

income to purchase water from vendors. People in rural areas could travel more than 10km to

fetch water during dry periods. The impacts of these challenges include increased poverty, lower

enrolment in schools and high exposure to diseases. Invariably, provision of water resources


3

represents investments in reducing the poverty of local communities. In addition, meeting the

multiple demands for water for domestic, farming and livestock (in an integrated manner) is

crucial for maintaining local economic development within a peaceful and stable society. Water

resources development and management for inclusiveness and better resilience are aligned with

the overall objectives of the Bank’s Strategy to improve the quality of growth.

1.2.5 It is noted that though Sudan is under sanctions in accordance with the Revised Policy on

Loan Arrears Recovery (the “Sanction Policy”). However, in line with Legal Note Concerning

the Implementation of the Fragile State Facility (FSF) (ADF/BD/WP/010/08/Rev.1/Approval)

and Operational Guidelines for the Implementation of the Strategy for Addressing Fragility and

Building Resilience in Africa and for the Transition Support Facility

(ADF/BD/WP/2014/30/Rev.3/Approved), the use of TFS Pillar I for infrastructure related

activities are justifiably exempted from the Sanction Policy.

1.3 Development Partner Coordination

1.3.1 The existing donor coordination is currently focused on humanitarian support with little

focus on development in the water and sanitation sector. The Department of International

Cooperation in the Ministry of Finance and Economic Planning (MoFEP) is responsible for the

overall coordination of development partners’ (DPs) support to the country. Currently, this

responsibility does not involve any systematic, regular or formalized meetings between the

government and DPs, nor do DPs themselves have such a formal framework for coordinating

among themselves.

1.3.2 The Bank contributes to the Social Protection Working Group, in which several DPs

including, but not limited to the European Union (EU), the Department for International

Development (DfID), United Nations World Food Programme (WFP) and United Nations

Children's Fund (UNICEF) are active. These small coordination groups will, in the near future,

join others for the emergence of a permanent coordination mechanism between the government

and donors. In addition, the Bank’s Sudan Field Office (SDFO) hosts quarterly donor

coordination meetings on thematic issues, especially in the area of economic management, debt

relief issues, peace building and the recently established strong partnership with the UN Women

on issues of women empowerment.

1.3.3 Various DPs such as the Bank, through the African Water Facility (AWF), DfID,

International Fund for Agricultural Development (IFAD), Japan International Cooperation

Agency (JICA), United Nations Environment Programme (UNEP), UNICEF as well as some

other DPs are involved in the sector. The establishment of the coordination platform for the

water and sanitation sector including organizing annual sector reviews will be supported as part

of the proposed program.

Table 1: Summary of the Sector Financing

Sector or subsector* Size

GDP Budget Labor Force

Water and Sanitation USD 600 million 3% 14,000

Players – Water and Sanitation Public Annual Expenditure (ave. 2013 & 2014)**

Government DPs

SDG m 1,050 105 % 90 10

Level of Donor Coordination Existence of Thematic Working Groups N Existence of SWAPs or Integrated Sector Approaches N

AfDB's Involvement in DPs coordination Participation in ad-hoc meetings

* as most appropriate ** Years [yy1 to yy2] *** for this sector or sub-sector


4

II – PROGRAM DESCRIPTION

2.1 Program Objective

2.1.1 The overall objective of the program is to contribute to building a resilient and

sustainable water and sanitation sector that meets the needs of all users or beneficiaries in the

targeted areas in the medium to long term, as well as to provide water supply and sanitation

infrastructure in targeted areas with a view to contribute to peace building, improving livelihoods

and building resilience against climate variability and change.

2.2 Program Components

2.2.1 The components and outputs of the proposed program are provided in Table 2. While

institutional support and capacity development activities will benefit all states through support at

the federal level, the physical interventions of the proposed program will focus on West

Kordofan State. The program will also include support to preparation activities in defining future

investment projects in the country.

2.2.2 In line with RWSSI Strategic Plan 2012-2015, RWSSI-TF resources will be used for: i)

the assessment of the water and sanitation sector monitoring and evaluation (M&E); and ii)

provision of sanitation facilities for schools, health centers and markets.

Table 2: Program Components Component & Outputs Est. cost UA’ m

A Water Sector Policy and Institutional Reforms A-1 Sector Assessment and Establishment of the Sector Coordination Mechanism A-2 Review of Legal Framework for the Water Supply and Sanitation Sector A-3 Review and update of the draft Water Supply and Sanitation Policy A-4 Development of a new WaSH Strategy for 2017-21 A-5 Review and update of the Construction Standards for the Water and Sanitation Sector A-6 Tariff Study for the Sustainability of Water Facilities A-7 Needs and Gaps Assessment of the Water and Sanitation Sector M&E and Preparation

of the Action Plans

1.348 (1.690)

B Capacity Development Federal Level components B-1 Rollout of Training Materials/ Modules Developed by DWSU in the National and

Targeted States B-2 Capacity Development at Federal Level

- Participation in joint sector reviews in Africa - Studies for future investment projects - Procurement of a vehicle for follow up and monitoring - Provision of office equipment

State Level Sub-components B-3 Capacity Development at state level

- Provision of equipment for a training center - Provision of a mobile workshop, a truck with crane and vehicles and office

equipment B-4 Training for Communities/Water Users

- Hygiene promotion and sensitization for communities and schools - Establishing and training water supply schemes/water user committees - Establishing management boards for water transfer schemes

B-5 Community based Activities for Women and Youth Empowerment - Support gum- arabic belt rehabilitation - Livestock restocking - Trainings on income generating activities

B-6 Establishment of Hydrological Monitoring Networks for Ground and Surface Water

1.677 (2.103)

C Water and Sanitation for Resilience and Stability C-1 Design Review and Supervision C-2 Gender sensitive Baseline Study of Water and Sanitation Facilities in West Kordofan

State C-3 Provision of Water Supply Points for Human and Livestock

11.435 (14.340)


5

Component & Outputs Est. cost UA’ m

- 2 pipe water transfer schemes (30km and 50km) - 11 new water yards and rehabilitation of 25*

C-4 Sanitation for Schools, Health Centers and Markets (20, 10 and 6 respectively with due consideration to gender and physically challenged person)

D Program Management D-1 Program Implementation Team D-2 Monitoring of the Implementation of ESMP D-3 Program Audit D-4 Steering Committees D-5 Operating Costs and Land Acquisition*

1.229 (1.541)

Total Base Cost 15.689 (19.675) Contingencies (Physical & Price) 1.893 (2.374)

Total Cost 17.582 (22.049) * activities to be financed by the government, figures in ( ) are in EUR

2.3 Technical Solution Retained and Other Alternatives

2.3.1 Various technical solutions were explored (Table 3) for the program taking into account

characteristics of water sources, operation and maintenance costs and capacity in the country.

The program will retain use of water yards, where hydrogeological assessment favors their

siting. These, essentially are powered production boreholes with a reservoir and reticulation

system to serve both domestic and livestock uses. Water transfer pipelines will be a suitable

technology in areas where there is no or limited groundwater potential.

2.3.2 Applied solution will be adjusted to accommodate specific needs on the ground to ensure

sustainability. Gender sensitive sanitation facilities will be provided in targeted public places

coupled with appropriate hygiene trainings.

Table 3: Analysis of the Various Alternatives Considered Alternative Brief Description Reasons for Rejection Selected Option

Solar powered pumps

Use of solar operated pumps whose O&M costs are low and which are “green”.

Groundwater table is relatively deep restricting efficiency and effectiveness of solar operated pumps.

Generators and electricity driven pumps. Technical capacity is available at state level for the O&M. Spare parts are also available in the local market.

Rainwater harvesting

Provision of rainwater harvesting facilities instead of water transfer by pipe schemes.

Sandy soil is not suited to harvest surface run-offs in target areas of the two pipe schemes. Groundwater is also not available.

Provision of water by piped water schemes in areas with no or limited groundwater potential.

SWC led O&M modality

SWC has the prime responsibility to ensure O&M of water and sanitation facilities.

Little or lack of ownership of the community leads to insufficient O&M commitment. There is also a risk that collected tariffs are not ring-fenced for O&M purposes.

Community-led management modality with technical oversight by SWC and mahalias.

2.4 Program Type

2.4.1 The proposed program supports institutional and policy reforms, capacity development as

well as infrastructure investments. It will support the medium to long-term effort of establishing

the coordination platform for the stakeholders in order to improve the sector planning,

monitoring and evaluation based on common information base and understanding. At the state

level, the program will ensure complementarity with other ongoing activities being funded by the

government, non-governmental organizations (NGOs) and DPs.

2.5 Program Cost and Financing Arrangements

2.5.1 The total cost of the program for the components defined above is estimated at UA

17.582 million, net of taxes and duties. Of this, UA 13.085 million or 74.4% is in foreign

currency and UA 4.497 million or 25.6% in local costs. Tables 4 to 9 provide the summary of the

program costs.


6

Table 4: Program Cost Estimates by Component in million UA

Component Foreign

Exchange Local

Currency Total

Foreign Currency %

% Total


1.053 0.295 1.348 78.1% 8.6%


0.817 0.860 1.677 48.7% 10.7%


9.807 1.628 11.435 85.8% 72.9%

Component D: Program Management - 1.229 1.229 0.0% 7.8%

Total Base Cost 11.676 4.012 15.689 74.4% 100.0%

Contingencies (Physical & Price) 1.409 0.484 1.893

Total 13.085 4.497 17.582

Table 5: Sources of Financing in million UA

Source Foreign

Exchange

Local

Currency Total %

TSF–Pillar I 13.005 1.995 15.000 85.3% RWSSI-TF 0.080 0.558 0.638 3.6% GoS 0.000 1.944 1.944 11.1%

Total 13.085 4.497 17.582 100.0%

Table 6: Program Cost by Category of Expenditure in million UA

Category of

Expenditure Foreign

Currency Cost Local Currency

Cost Total % Foreign

A. Works 10.232 1.811 12.043 85.0% B. Services 2.097 0.298 2.395 87.6% C. Goods 0.708 0.237 0.946 74.9% D. Operating Cost 0.048 2.150 2.198 2.2% Total 13.085 4.497 17.582 74.4%

Table 7: Expenditure by Component and Source in million UA

Component TSF–Pillar I RWSSI-TF GoS Total


1.276 0.072 0.000 1.348


1.677 0.000 0.000 1.677


9.842 0.498 1.095 11.435

Component D: Program Management

0.589 0.000 0.640 1.229

Total Base Cost 13.385 0.569 1.735 15.689

Contingencies (Physical & Price) 1.615 0.069 0.209 1.893

Total 15.000 0.638 1.944 17.582

Table 8: Category of Expenditure by Funding Source in million UA

Category of

Expenditure TSF-Pillar I RWSSI-TF GOS Total

A. Works 10.259 0.558 1.227 12.043

B. Services 2.315 0.080 0.000 2.395

C. Goods 0.946 0.000 0.000 0.946

D. Operating Cost 1.481 0.000 0.717 2.198

Total 15.000 0.638 1.944 17.582


7

Table 9: Expenditure Schedule by Component in million UA

Component 2016 2017 2018 2019 2020 Total

Component A: Water Sector Policy

and Institutional Reforms 0.594 0.372 0.172 0.210 0.000 1.348

Component B: Capacity

Development 0.281 0.459 0.363 0.226 0.347 1.677

Component C: Water and Sanitation

for Resilience and Stability 0.415 0.846 2.840 5.735 1.598 11.435

Component D: Program

Management 0.407 0.229 0.229 0.229 0.134 1.229

Total Base Cost 1.697 1.906 3.606 6.401 2.079 15.689

Contingencies (Physical & Price) 0.205 0.230 0.435 0.772 0.251 1.893

Total Costs 1.902 2.136 4.041 7.173 2.330 17.582

2.6 Program’s Target Area and Population

2.6.1 Institutional reforms and capacity development components will benefit all 18 states as

well as federal government institutions. By supporting the establishment of the sector

coordination platform, development and revision of the sector policy, strategy, standards and

guidelines and improving readiness of the sector stakeholders, the program will contribute to

creating an enabling environment for efficient and effective delivery of water and sanitation

services. This will ultimately benefit the entire population of Sudan in the medium to long term.

Gender inclusion and social equity will be mainstreamed as appropriate.

2.6.2 Government institutions involved in the water and sanitation sector are Ministry of Water

Resources, Irrigation and Electricity (MoWRIE), Ministry of Agriculture and Forestry (MoAF),

Ministry of Livestock, Fisheries and Rangelands (MoLFR), Ministry of Environment, Natural

Resources and Physical Development (MoENRPD), Ministry of Health (MoH), Ministry of

Education (MoE) and Ministry of Welfare and Social Security (MoWSS) at federal and state

level.

2.6.3 Physical intervention of the program will directly benefit more than 130,000 people (of

them about 69,000 are women) in the rural areas of El Nuhud and El Khewei mahalias1 with pipe

schemes and other mahalias in West Kordofan State with water yards. Water supply points will

also benefit 730,000 heads of livestock (cattle, sheep, goats, donkeys, horses and camels). The

rural population accounts for about 76% of the state’s population and about 70% of them

practice combined animal rearing and crop farming, while those only practicing either farming or

livestock breeding (pastoralists) constitute about 16% and 14% respectively. Due to the depth of

the groundwater table, typical water supply facilities in the state are water yards and to some

extent hafirs/small scale dams where groundwater is not available and geological conditions are

favorable. More than 50% of water yards are older than 25 years, exceeding their designed

lifespan.

2.6.4 During dry seasons (January to June) both human and livestock rely almost solely on

groundwater sources in West Kordofan State, mainly from deep boreholes. Currently, per capita

average water consumption stands at about 10 liters per day, but this varies from less than 3 liters

in some northern parts of the state to about 15 liters in some southern and central parts of the

1 States are divided into localities authorities called “mahalia”


8

state. No area in the state has access to 20 liters per day per capita, which is a target set for rural

areas in the WaSHSSP.

2.7 Participatory Process for Program Identification, Design and Implementation

2.7.1 Consultations with the relevant stakeholders including line ministries at federal and state

levels, development partners, NGOs, village popular committees, gum-arabic associations and

farmers union took place during the identification, preparation and appraisal missions. During

the field visits to West Kordfan State, the mission met with officials of the state water

cooperation (SWC) and beneficiary communities. Special arrangements were made to meet and

listen to women and girls at schools. The program team held consultative meetings with West

Kordofan General Women’s Union Chapter and their representatives at mahalia levels and

teachers from the El Nudod High Secondary School. The mission team was informed that

women fetch water from long distances to meet water demand for domestic and livestock

consumption. Communities spend a significant portion of their income on water services.

Through consultations, it emerged that community led operation and maintenance (O&M) is key

for sustainability of infrastructures. Community mobilization and participation will form the

basis of the program. The communities and local officials requested for the inclusion of

alternative livelihood interventions to increase communities’ income, which will eventually

improve the wellbeing of the people. It was decided that these interventions should be directed to

support women and youth to ensure inclusiveness of the program. The mission was also

informed of the situation of sanitation in schools is affecting children’s learning environment.

2.7.2 The program will engage with communities concerned throughout the lifetime of the

Bank’s intervention to ensure people are informed and trained sufficiently to make right

decisions for the O&M of water and sanitation infrastructures provided by the program. Water

users committees (WUCs) will be formed to manage the water yards. A series of consultations

and trainings will take place from early stage of the program to ensure sustainability of the

Bank’s intervention. Furthermore, the PIT will ensure active involvement of the General

Women’s Union, teachers, gum-arabic associations, pastoralists unions, village popular

committees and the direct beneficiaries along the pipelines in the program.

2.8 Bank Group Experience, Lessons Reflected in Program Design

2.8.1 As at June 2015, the Bank Group’s portfolio in Sudan comprised 14 projects with a total

commitment of USD 146.16 million mainly focused on technical assistance, capacity building

and knowledge work. All the implementation progress reports (IPRs) are up to date and there is

no outstanding project completion report (PCR). For the water sector, the Darfur Water Project

for Peace and Conflict Resolution financed by the AWF was approved in April 2012. The project

has disbursed 70%. However, the last funds processed has not been received by the project due

to blockage by intermediary banks. The IPR rating of the project is 2.5.

2.8.2 Some of the key lessons learnt from on-going and past interventions in the country by the

Bank and other DPs are taken into account in the design of the program. The main lessons taken

into account are:

i) Program coordination: weak sector coordination is one of the factors hindering efficient

and effective planning and implementation. The program has established a discussion

platform between different stakeholders during the program preparation and this

mechanism will be further developed and maintained throughout the lifetime of the

program. A program steering committee (PSC) will be established to ensure coordination

between different stakeholders. The steering committee will meet at least twice a year to

review performance of the program, approve annual work-plans for the subsequent year

and provide strategic guidance.


9

ii) Sustainability of infrastructure: lessons from other projects in the country revealed that

water and sanitation facilities are better maintained when O&M and financial management

are led by communities with involvement of SWC and mahalias as technical advisors. The

program will adopt this O&M modality.

iii) Timely program implementation: human capacity within government institutions is limited.

In order to deliver intended results as scheduled, the program will utilize and augment

existing project implementation team (PIT) established for the ongoing AWF funded

project. The team is familiar with the Bank procedures and has experience in implementing

the water sector projects.

iv) Flexible designs for water infrastructure: standard designs exist for water supply points,

but in places where livestock rearing is dominant, actual lifespan of standard design water

facilities could be shorter than intended. The design of water supply points will be

modified to reflect particular needs of each site. Also due consideration will be given to

specific needs of children, women and disabled.

v) Community mobilization: Considering the heterogeneity, cultural and social differences of

communities across West Kordofan State, flexibility is required when working with the

communities to not apply a “one size fits all” solution. The program will engage

communities from the early stages of the program coordinated and will adopt solutions

tailored to each community.

vi) Conflict sensitivity: As much as the focus is to reduce conflict by providing water

infrastructure, projects might create conflicts if it is less sensitive to certain issues,

especially around those related to site selection and management. The principle of ‘do-no-

harm’ is integrated in the project design.

2.9 Key Performance Indicators

2.9.1 The key performance indicators for monitoring of the program’s achievements are

identified and captured in the result based logical framework. In line with the objective of the

program, outcome indicators include those that will capture improved sector coordination,

strengthened institutional capacity as well as improved access to water and sanitation services

including distance to water sources, and reduction in household expenditure on water and health.

Output indicators were identified to capture progress of major activities under the program.

2.9.2 Obtaining reliable data which is the basis for robust planning and measuring results is a

challenge in the country. Therefore, a baseline study will be conducted as part of the program

while addressing the urgent sector needs. The Drinking Water and Sanitation Unit (DWSU) of

MoWRIE will prepare quarterly and annual program progress report in collaboration with the

SWC presenting the progress of output indicators. Outcome and output indicators will be

monitored through the PIT. Indicators will be updated in the IPR and necessary adjustments will

be made as appropriate.

III – PROGRAM FEASIBILITY

3.1 Economic Performance

Table 10: Key Economic Figures

EIRR and ENPV: 69% and SGD 1,931 million (at 10% base case)

EIRR: Economic Internal Rate of Return, NPV: Net Present Value

3.1.1 The economic analysis assessed the beneficial effects of the proposed intervention and

highlights the broader impacts associated with the program interventions. The following benefits

and savings were considered: (i) Tariff savings arising from a reduction in the tariff from the

current high tariff driven by the vendors and the long distances currently being travelled to


10

access water, compared with a lower tariff post implementation; (ii) The same principle applies

for livestock tariff saving benefits; (iii) Due to improved water availability, livestock will

increase in value compared to previous years; (iv) Reduction in health costs; and (v) the time

saving benefit arising from reduced time spent fetching for water, and this benefits mainly the

women and children.

3.1.2 The assessment shows a healthy EIRR mainly due to the current low levels of water

supply and the high impact that improved water supply will have on the economic wellbeing of

the communities through improved livestock production. Detailed assumptions are contained in

Technical Annex B6.

3.2 Environmental and Social Impacts

Environmental Impacts

3.2.1 The program is a category 2 in line with the Bank’s Integrated Safeguards System (ISS)

and Environmental and Social Assessment Procedures (ESAP). The environmental and social

management framework (ESMF) was compiled and finalized in June 2015. The ESMF summary

was disclosed on the African Development Bank’s (AfDB) website on July 24, 2015.

3.2.2 Main environmental and social (E&S) benefits: women and youth empowerment through

time saving for children to go to schools and for women to partake in other socio-economic

activities; improved livelihoods through reduced expenditure on water; improved productivity of

livestock and in turn contributing to increased income and improvement of socioeconomic

wellbeing of the communities; reduction in the occurrence of water-borne diseases; capacity

building and empowerment of community members including at least 30% women resulting in

the establishment of an effective community-based system for sustainable management of water

supply system; support of income generating activities such as rehabilitation of gum-arabic,

livestock restocking and training; improvement of environment through establishment of village

nurseries and supply of water at gum-arabic production belts; increased availability of water thus

reducing conflicts between pastoralists and farmers especially along and in vicinities of the

migratory routes; and establishment and empowerment of gender sensitive village water

committees or water user associations to foster sustainable management of water yards resulting

in enhancement of organizational, financial and technical capacities of community and SWC

operators.

3.2.3 Potential adverse E&S impacts: disturbance to topsoil created by drilling rigs works and

trucks and construction of mud pits; noise; dust; vibration; possible drop in groundwater level

due to increased use; impact of the chemicals contained in the drilling fluids and oils on

groundwater quality and soil; limited loss of flora and fauna due to land clearance during

construction and establishment of the camps; solid and liquid waste generation, wastage of

natural resources due to water leaks; influx of people and animals during the operation phase

more than design capacity of the pipelines; thus creating land degradation and possible conflicts

with the host communities; occupational health and safety issues such as accidents; improper

fencing not separating between human and animals at the water supply point compound hence

leading to poor water hygiene; and increased mosquito breeding areas around water supply

points due to blocked or poor drainage.

3.2.4 Mitigation: minimization of cleared areas by working in sections and rehabilitating soon

after completion to avoid soil erosion; having a water management procedure to ensure aquifer

recharge; minimal use of drilling fluids and safe storage thereof to avoid pollution; detailed

waste management plan approved prior to construction commencement; use of modern and well

maintained equipment fitted with noise enclosures to minimize noise; strict controls of timing of

activities (e.g. prohibition on night working) to avoid noise and nuisance; observance of seasonal


11

sensitivity (breeding and animal migration seasons); careful site selection with advice from

relevant authorities, avoiding sensitive or breeding areas; careful and timely planning of

construction activities; ensuring proper fencing separating human and animal users coupled with

health and water hygiene awareness pointing out the hazard of animals and human sharing the

same water sources; installation of enough taps to stop people taking water from animal watering

troughs; monitoring leaks and training water users to do minor repairs on leaks; involving

community leaders and management committees to develop zonal settlement plans in the village;

linking water production with land use and its carrying capacity; facilitating consultation and

discussion between the new comers and host communities; avoiding use of heavy truck and

earthmoving machineries; pre-approval of contractors’ plans for restoration of land/soil and

backfilling; avoiding as much as possible obstruction and disturbance of livestock and animals

migratory routes; using clear demarcation and warning signs along the pipeline routes;

conforming to International Labor Organization (ILO) standards and Sudan working regulations

to avoid accidents; adherences to comprehensive health and safety and risk management plans

and reporting system; making first aid kits available coupled with training of first aiders; and

avoiding removal of indigenous trees and keeping aside top soil for rehabilitation in order to

preserve biodiversity.

Climate Change

3.2.5 The program will significantly contribute to building resilience against climate variability

and change by providing reliable water supply services. Groundwater monitoring points will be

established as part of the program to ensure sustainability of water sources and for early warning

in case of need. Other climate change adaptation activities included in the program are: capacity

building for federal and state staff and communities; support to rehabilitation of gum-arabic belt;

and women and youth empowerment for income generation. These adaptation activities are in

line with the country’s National Adaptation Programme of Action (NAPA).

Gender

3.2.6 The current situation of water and sanitation in West Kordofan State has severe impacts

on the socio-economic conditions of the community. Women and men experience shortage of

water and of inadequate sanitation differently according to their roles and responsibilities. In

West Kordofan State, the responsibility for water fetching is shared between males and females

(women and girls). The responsibility of men is very much directed on the provision of water to

livestock, especially from distant sources, while women, girls and boys are responsible for

provision of water for domestic use. Women spend up to 6 hours a day, walking as far as 10 km

or more to fetch water without being relieved from other domestic responsibilities. The

percentage of girls who discontinue their education, mainly to help their families in water

fetching, reaches about 30% of the number initially enrolled in the rural areas of West Kordofan

State. The illiteracy rate in the state is about 24%.

3.2.7 The provision of water yards and water supply points along the two pipe water transfer

schemes will provide clean water to more than 130,000 people. Reduction of workload on

women, reduction of household expenditure on water, increase in girls’ school attendance and

improvement in productivity as a result of reduction in water borne diseases are expected. The

provision of sanitation facilities for schools will improve the environment and create a conducive

environment for boys and girls to study. These interventions will provide opportunities to

improve the living conditions of the population.

3.2.8 The implementation of gender related interventions will be supervised by the community

mobilizer who will be attached to the PIT and supported by experts on income generating

activities (alternative livelihood for youth and women). As stated above, this intervention will

economically empower women and youth. The design of the alternative livelihood activities and


12

modalities of implementation will be informed by in-depth study outlining needs of women and

youth, details of training/technical knowledge needs, budget requirements, follow-up and

monitoring needs (more detailed in Technical Annex B7).

Social

3.2.9 About 14% of the population are classified as pastoralists moving along north-south

migratory routes. According to the population census by GoS in 2010, the average family size is

6 persons /family, child mortality rate is 90 per 1,000 live births, and male-female ratio is 49:51.

Around 90% of the families in West Kordofan State own livestock but with varying numbers.

The state is traversed seasonally by migratory nomads, especially Kababeisk and Kawalla

coming from the north and Shanablla and Messeriya coming from the south mainly during the

rainy season.

3.2.10 Generally, the family average annual income is about 7,000 SDG, while the highest

family income is about 24,000 SDG earned by about 12% of the families, notwithstanding

annual incomes as high as 30,000 SDG are earned by about 6% of the families in the state.

About 50% of the families in the state spend between 20 to 30% of their incomes on water

supply, while about 22% of the families spend about 50% to 60% of their incomes on obtaining

water for human and livestock uses. Expenditure on water by the families in the program areas is

significantly higher than the water price benchmark set in the country, 4% of the family income.

3.2.11 As a result of water shortages, especially during dry summer months, water consumption

per capita is low and prevalence of water related diseases such as diarrhea and skin diseases

among the community is high. Schools in the state are suffering from inadequate sanitation

facilities.

3.2.12 The provision of physical infrastructure will be supplemented by ‘soft interventions’ to

enhance knowledge of sanitation and hygiene, improve livelihoods by providing opportunities

for increased income and subsequently achieving better health, and strengthen the sustainability

of the system. The community, especially women who are taking lead roles in raising children,

schoolchildren, and influential community leaders will be sensitized in good hygiene practices

and better understanding of sanitation to become communicators. Improving livelihoods through

income generation activities is expected to contribute to the welfare of the communities. PIT

members and water user committees will be trained in conflict management and resolution as it

is an important aspect in the program area.

Involuntary Resettlement

3.2.13 The proposed 30 km and 50 km pipelines will run on or under sandy terrain close to the

existing open tracks without cutting through many farms. The rain-fed agriculture is less

practiced in this area due to shortage and variability of rainfall. 12% of the total pipelines length

will run through farms which will require wayleave, but no involuntary resettlement is

envisaged. Should the scope of the activities change in such a way that result in land acquisition,

the Bank’s Integrated Safeguards Policy, specifically the Operational Safeguards on Involuntary

Resettlement will be followed and implemented.

IV – IMPLEMENTATION

4.1 Implementation Arrangements

4.1.1 The government of the Republic of the Sudan is the recipient of the grants. The MoWRIE

through the DWSU is the executing agency of the program. The DWSU will provide technical

inputs and oversight for the implementation of the program, while the SWC will be responsible

for implementation on the ground and during operation, maintenance and management involving

the community.


13

4.1.2 To strengthen the implementation capacity of the DWSU, the program will utilize and

augment the existing PIT hosted in the DWSU for the Darfur Water Project being financed by

the AWF. The Darfur Water Project is expected to be completed by end 2015. Part of PIT

members will be based in West Kordofan. PIT members at state level will be hosted in the SWC.

The PIT will be responsible for the daily management of the program and coordination between

the program partners.

4.1.3 To ensure compliance with government policies and procedures and to coordinate the

program with other activities, a PSC will be formed and chaired by the Director General (DG) of

the DWSU and co-chaired by DG of International Cooperation Directorate, MoFEP. The PSC

will comprise: DWSU, Groundwater and Wadis Directorate/MoWRIE, SWC of West Kordofan,

MoFEP, MoLFR, MoAF, MoH, MoENRPD, MoWSS and MoE. The committee will ensure that

the needs of water and sanitation users are sufficiently reflected in the program design as well as

in the selection of priority interventions. Detailed implementation arrangements including

composition of the PIT are provided in Technical Annex B3

4.1.4 Throughout the program period, the PSC will provide high level guidance for the

implementation of the program to ensure: 1) the overall progress of the program; 2) the optimal

use and distribution of resources; 3) the stakeholders’ continuous commitment; 4) the

coordination with other programs/projects; and 5) approval of the annual work-plans, progress

and audit reports.

4.1.5 At a technical level, the PIT will be responsible for the day-to-day management of the

program, including communication and coordination with focal persons in different line

ministries to ensure that the needs and concerns of all water users, including the identification of

sites for the water points, are considered in implementation of the program. Line ministries at

federal level include: MoLFR, MoAF, MoH, MoENRPD, MoWSS and MoE while stake holders

at state level include state ministries of Livestock, Agriculture, Health and Education.

4.1.6 Taking the cultural context into account, women participation will be addressed by

appointing community mobilizer with knowledge of the culture, norms and community

motivation aspects and they will work as “champions of change”. This applies to the pastoralist

groups in the southern parts of the state. All program aspects that include recruitment and

capacity building opportunities will consider equity and gender sensitivity.

Implementation Schedule

4.1.7 The program will be implemented over a period of 54 months from fulfilment of

conditions for first disbursement, expected before January 2016. Procurement of various services

and implementation of capacity development activities will commence immediately while major

works for the provision of water supply points will commence in the second quarter of 2018.

Program completion is set for June 30, 2020 and the deadline for last disbursement will be

December 31, 2020.

Procurement Arrangements

4.1.8 All Bank financed procurement contracts will be carried out in accordance with the

Bank’s Rules and Procedures: “Rules and Procedures for Procurement of Goods and Works”,

dated May 2008, revised July 2012 as amended from time to time; and “Rules and Procedures

for the Use of Consultants”, dated May 2008, revised July 2012 as amended from time to time

using the relevant Bank Standard Bidding Documents, and the provisions stipulated in the

Financing Agreement. The overall risk for procurement under this program is rated moderate.

The Procurement Plan and related procurement documents have been discussed and finalized.

Detailed procurement arrangements are provided in Technical Annex B5.


14

Financial Management and Audit Arrangements

4.1.9 The program’s financial management operations will be managed using a hybrid system

comprising country systems and specific program arrangements in line with the Paris

Declaration on Aid Effectiveness and Accra Agenda for Action. The day to day financial

management of the program will be as per the rules and procedures stipulated in the GoS’

Standardized Financial Policies and Procedures Manual complemented by the Bank’s financial

guidelines in relevant areas. To facilitate implementation of the program, the PIT shall be put in

place with members at both the federal and state levels and will include two accountants working

at the two levels. The accountants, who will be nominated by the implementing entities, will be

required to have relevant qualifications and level of experience acceptable to the Bank. PIT

members at the federal level will be based at the DWSU whereas members at the state level will

be based at the SWC of West Kordofan State. The accountant at the DWSU shall be responsible

for consolidating program accounts and reports for the activities carried out at both the federal

and state levels. The program will procure suitable accounting software to facilitate processing

of transactions and production of reports, whose costs shall be factored into the program budget.

The PIT will be required to produce quarterly interim financial reports (IFRs) for the program,

which will be submitted to the Bank not later than forty-five days after the end of each quarter.

DWSU and SWC internal auditors will include the program in their annual audit coverage. The

program financial statements will be prepared within three months after the closure of every

financial year and presented to the auditors. The program audit will be conducted by the National

Audit Chamber (NAC) or a private audit firm appointed by the NAC and agreed with the Bank

based on the Bank’s audit terms of reference. The audit report, complete with a management

letter, will be submitted to the Bank not later than six months after the end of the financial year.

The cost of the audit will be borne by the program. A detailed analysis of financial managements

is provided in Technical Annex B4.

Disbursement Arrangements

4.1.10 The program will use mainly the direct payment and the revolving fund methods (special

account) due to the nature of program costs. However, the other two disbursement methods as set

out in the Disbursement Handbook shall also be available for use in case of need subject to

consultation and prior approval of the Bank. The Bank’s Disbursement Letter shall be issued

stipulating key disbursement procedures and practices.

4.1.11 With regard to the revolving fund’s method of disbursement and the prevailing sanctions

against Sudan, two options are recommended for prudence purposes and by order of preference.

The first option is opening of two bank accounts denominated in Euros with the Office of

Foreign Assets Control’s (OFAC) authorization at the Central Bank of Sudan (CBoS) or a

commercial bank acceptable to the Bank to receive funds directly from the Bank to circumvent

the sanctions. Thereafter, opening of two additional accounts in SDG with the CBoS or a

commercial bank acceptable to the Bank at the federal and state levels with the CBoS or a

commercial bank acceptable to the Bank. Finally, opening of an account at the CBoS to be used

exclusively for Government Counterpart operations. The second option is to open two offshore

accounts in USD or Euro for both sources of funding in a suitable Middle East country by the

government on behalf of the executing agency from where funds received directly from the Bank

will be channeled to local accounts in SDG for program use, in case the first option fails.

Thereafter, opening of two additional accounts in SDG with the CBoS or a commercial bank

acceptable to the Bank at the federal level and state with the CBoS or a commercial bank

acceptable to the Bank. Finally, opening of an account at the CBoS to be used exclusively for

Government Counterpart operations.


15

4.2 Monitoring and Evaluation

4.2.1 Baseline study will be conducted for West Kordofan State to establish current status of

the water and sanitation sector as well as to inform the program planning. The PIT will have the

overall responsibility for monitoring during the program implementation. The Bank will closely

follow up the implementation of the program, through regular supervision mission during the

implementation, and ex-post evaluations. The DWSU/MoWRIE will compile and submit to the

PSC and the Bank quarterly progress report and annual progress reports. The mid-term review

will provide an opportunity to re-examine the implementation progress and further strengthen/

fine tune the program. Upon completion of the program, MoWRIE will prepare and submit to the

Bank a PCR.

Table 11: Key Program Milestones

Timeframe Milestone Monitoring Process/feedback loop

Nov. 2015 Signing and effectiveness Grant agreements signed and declared effective by the Bank

Dec. 2015 Launching Launching workshop organized

Jan. 2016 Start of procurement of a consulting firm for design review and supervision of major works

Request for Proposals approved and published

Dec. 2016 The sector policy updated and new water and sanitation strategy developed

Approval of the policy and strategy

Jul. 2017 Start of works for water provision Works contract signed Jun. 2018 Mid-term review Mid-term review undertaken Jun. 2020 Completion of program Program completion report

4.3 Governance

4.3.1 The social drivers of fragility stem from weak governance and lack of accountability,

which increases the divide between the center and the periphery. Governance institutions remain

weak, especially those necessary for effective and sound public financial management and the

implementation of sectorial strategies that ensure transparent, efficient and equitable inter-

governmental transfers. There is therefore a need for strong governance institutions to manage

Sudan’s renewable resources and preserve biodiversity and eco-systems, as the inequality in

access to land, water and pastures is often a source of recurrent conflicts.

4.3.2 With regard to the water and sanitation sector governance, the GoS has shown its

commitment to improve the sector for better efficiency, transparency and accountability, and one

of the major objectives of the program is to support this effort. The program will assess the

current status of the sector with regards to institutional structure, M&E framework, legal

framework and policies and will prepare a set of recommendations to inform the GoS’ policy

direction. Improved capacity of the water related institution at federal and state level is also

expected to contribute to better governance, particularly in management of water resources.

Increased access to water and sanitation infrastructure will significantly contribute to reduced

conflict, stability and consequently improved governance in West Kordofan.

4.3.3 As MoWRIE through the DWSU will be the executing agency for the program, its chief

executive officer, DG of DWSU shall be the principal accounting officer in relation to the

accountability of resources entrusted for the program’s operations. He/she shall designate the

DWSU’s head of finance to provide overall financial guidance that will be required for the

program’s successful implementation. The Bank will provide some oversight especially during

supervision missions. All the anti-corruption measures that pertain to DWSU and the

government will apply to this program.


16

4.4 Sustainability

4.4.1 Community ownership and financial sustainability: Sustainability of water and sanitation

facilities/infrastructures requires ownership, dedication and commitment of concerned

communities. To promote the ownership of the communities, beneficiaries will be required to

provide in-kind contribution - mainly labor force - for the construction of water infrastructures.

There are good examples in the country where the communities manage water supply points. For

water yards, costs for the daily O&M will be deposited in the separate account and will be

managed by the communities with oversight of WUC. Detailed modalities will be established by

the PIT taking into account different conditions and situations of communities. For two piped

schemes, semi-autonomous operation units will be established for each scheme in order to run

the schemes financially independent. Oversight of the units will be provided by the board

comprising representatives from communities, concerned mahalias and the SWC. Tariff study

will inform the appropriate tariff to be applied for the sustainability of the schemes.

4.4.2 Technical Sustainability: While community-led management modality will be adopted

for water yards, technical oversight will be provided by the SWC and mahalias with well-

structured tripartite agreement among three parties (SWC, mahalia and community). For the two

piped schemes, semi-autonomous operation units will be staffed with qualified professionals

seconded from the SWC and the DWSU.

4.5 Risk Management

4.5.1 Table below presents the main risks and mitigation measures.

Table 12: Risks and Mitigation Measures

Risk Probability/

Impact Mitigation measures

Weak program implementation capacity

Medium to high probability/ high impact

The program will utilize and augment existing PIT which is familiar with Bank’s procedures. The Bank will maintain close interaction with the PIT through SDFO and supervision.

Insufficient capacity to sustain infrastructures

Medium probability/ high impact

The program will adopt the community-led O&M modality including tariff collection and financial management building on existing success model in the country. It will also support studies to establish appropriate tariffs.

Reduced water resources due to climate change


The program activities will include adaptation activities such as rehabilitation of gum-arabic belt, provision of underground water storages, capacity development of communities on efficient use and management of water and installation of hydrological monitoring devices.

Delay in disbursement due to the sanctions


The Bank’s Treasury Department (FTRY) has applied for a license from the OFAC in order to have a blanket approval of transfer of funds to projects/programs in Sudan.

Deterioration of security situation

Low probability/ high impact

Program will avoid selection of sites with potential security threats. Provision of water is expected to reduce tensions over limited resources.

4.6 Knowledge Building

4.6.1 The program will generate critical knowledge for enhancing the performance of the water

and sanitation sector in the country. The sector assessment study will help understand the

strengths and weaknesses of the sector and will provide direction for improving the sector. The

needs and gap assessment for the sector M&E will help mainstream the sector M&E mechanism,

inform the new WaSH strategy and structure sector performance review platform. The program

will also support the tariff study for the sustainability of the sector and baseline survey to better

understand the current status of the sector in West Kordofan State. Engagement with the


17

communities and SWC in developing sustainable O&M modalities for water and sanitation

facilities will generate knowledge that could be replicated in other part of the state and the

country.

4.6.2 The IPR, quarterly progress reports, audit, and completion reports will also provide

information on various aspects of the program for further diagnosis. Given the program’s focus

in complex issues and areas, there is a potential to generate useful lessons. In line with

Knowledge Management Strategy 2015-2020, the knowledge obtained will be captured,

documented and shared within the Bank and with other DPs and RMCs.

V – LEGAL INSTRUMENTS AND AUTHORITY

5.1 Legal Instrument

5.1.1 The program will be financed by a TSF Pillar I grant and a RWSSI-TF grant.

5.2 Conditions Associated with Bank’s Intervention

A. Condition Precedent to Entry into Force of the Grant Agreements

(i) TFS-Pillar I: The grant Protocol of Agreement for the TSF-Pillar I Grant shall enter

into force upon signature by the parties thereto.

(ii) RWSSI-TF: The grant Protocol of Agreement for the RWSSI Trust Fund Grant shall

enter into force upon signature by the parties thereto.

B. Conditions Precedent to First Disbursement of the Grants

The obligations of the Bank to make the first disbursement of the grants shall be conditional

upon the entry into force of the grant agreements and the fulfillment by the recipient, in form

and substance satisfactory to the Bank, of the following conditions:

(i) Evidence of having opened a foreign currency and local currency special accounts at

the banking institutions acceptable to the Bank for TSF-Pillar I and the RWSSI-TF

respectively;

(ii) Appointment of following PIT members at federal level with relevant qualifications

and experience acceptable to the Bank:

PIT member at federal level:

Program Coordinator

Procurement Officer

and an Assistant

M&E Officer

Accountant

Water & Sanitation Engineer

Capacity Development Focal

Point

C. Other Condition

The recipient shall provide evidence, in form and substance satisfactory:

(i) Within two months of the signing of the grant agreements, the recipient will provide

evidence, in form and substance acceptable to the Bank, of having appointed the PIT

members at state level:

PIT member at state level:

State Focal Person/

Water & Sanitation Eng.

Community Mobilizer

M&E Officer

Public Health Officer

Accountant

D. Undertakings

The recipient undertakes and agrees, in form and substance satisfactory to the Bank, to:

(i) Ensure that counterpart funds by GoS will be available during program

implementation;


18

(ii) Maintain close communication and coordination with federal and state line ministries

to maximize benefit of the program;

(iii) Carry out the program in accordance with: (a) Bank’s rules and procedures; (b)

national legislation; and (c) the recommendations, requirements and procedures set

forth in the ESMF prepared for the program;

(iv) Deliver to the Bank program quarterly reports in form and substance acceptable to the

Bank, including the recipient’s implementation of the ESMF; and

(v) Review the current tariff structure based on the finding of the study to be conducted

under that program and make adjustments in tariff where applicable.

5.3 Compliance with Bank Policies

5.3.1 This program complies with all applicable Bank policies.

VI – RECOMMENDATION

Management recommends that the Boards of Directors approve the proposed TSF Pillar I grant

of UA 15.000 million and the RWSSI-TF grant of EUR 0.800 million to the Republic of the

Sudan for the purposes and subject to the conditions stipulated in this report.


I

APPENDICES

Appendix1: Sudan’s Comparative Socio-Economic Indicators

Year Sudan Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2014 1,879 30,067 80,386 53,939Total Population (millions) 2014 38.8 1,136.9 6.0 1.3Urban Population (% of Total) 2014 33.6 39.9 47.6 78.7Population Density (per Km²) 2014 20.6 37.8 73.3 24.3GNI per Capita (US $) 2013 1 550 2 310 4 168 39 812Labor Force Participation - Total (%) 2014 53.6 66.1 67.7 72.3Labor Force Participation - Female (%) 2014 29.4 42.8 52.9 65.1Gender -Related Dev elopment Index Value 2007-2013 0.516 0.801 0.506 0.792Human Dev elop. Index (Rank among 187 countries) 2013 166 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2008-2013 19.8 39.6 17.0 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2014 2.1 2.5 1.3 0.4Population Grow th Rate - Urban (%) 2014 2.6 3.4 2.5 0.7Population < 15 y ears (%) 2014 40.9 40.8 28.2 17.0Population >= 65 y ears (%) 2014 3.3 3.5 6.3 16.3Dependency Ratio (%) 2014 74.4 62.4 54.3 50.4Sex Ratio (per 100 female) 2014 100.7 100.4 107.7 105.4Female Population 15-49 y ears (% of total population) 2014 24.3 24.0 26.0 23.0Life Ex pectancy at Birth - Total (y ears) 2014 62.2 59.6 69.2 79.3Life Ex pectancy at Birth - Female (y ears) 2014 64.1 60.7 71.2 82.3Crude Birth Rate (per 1,000) 2014 33.1 34.4 20.9 11.4Crude Death Rate (per 1,000) 2014 8.3 10.2 7.7 9.2Infant Mortality Rate (per 1,000) 2013 51.2 56.7 36.8 5.1Child Mortality Rate (per 1,000) 2013 76.6 84.0 50.2 6.1Total Fertility Rate (per w oman) 2014 4.4 4.6 2.6 1.7Maternal Mortality Rate (per 100,000) 2013 360.0 411.5 230.0 17.0Women Using Contraception (%) 2014 15.3 34.9 62.0 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2012 28.0 46.9 118.1 308.0Nurses (per 100,000 people)* 2004-2012 84.0 133.4 202.9 857.4Births attended by Trained Health Personnel (%) 2009-2012 23.1 50.6 67.7 ...Access to Safe Water (% of Population) 2012 55.5 67.2 87.2 99.2Healthy life ex pectancy at birth (y ears) 2012 53.0 51.3 57 69Access to Sanitation (% of Population) 2012 23.6 38.8 56.9 96.2Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2013 0.2 3.7 1.2 ...Incidence of Tuberculosis (per 100,000) 2013 108.0 246.0 149.0 22.0Child Immunization Against Tuberculosis (%) 2013 93.0 84.3 90.0 ...Child Immunization Against Measles (%) 2013 85.0 76.0 82.7 93.9Underw eight Children (% of children under 5 y ears) 2005-2013 27.0 20.9 17.0 0.9Daily Calorie Supply per Capita 2011 2 346 2 618 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 1.4 2.7 3.1 7.3

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2011-2014 70.0 106.3 109.4 101.3 Primary School - Female 2011-2014 66.0 102.6 107.6 101.1 Secondary School - Total 2011-2014 40.7 54.3 69.0 100.2 Secondary School - Female 2011-2014 38.9 51.4 67.7 99.9Primary School Female Teaching Staff (% of Total) 2012-2014 64.3 45.1 58.1 81.6Adult literacy Rate - Total (%) 2006-2012 73.4 61.9 80.4 99.2Adult literacy Rate - Male (%) 2006-2012 81.7 70.2 85.9 99.3Adult literacy Rate - Female (%) 2006-2012 65.3 53.5 75.2 99.0Percentage of GDP Spent on Education 2009-2012 2.2 5.3 4.3 5.5

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2012 7.9 8.8 11.8 9.2Agricultural Land (as % of land area) 2012 0.6 43.4 43.4 28.9Forest (As % of Land Area) 2012 29.4 22.1 28.3 34.9Per Capita CO2 Emissions (metric tons) 2012 0.4 1.1 3.0 11.6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available.

July 2015

0

10

20

30

40

50

60

70

80

90

100

20

00

20

05

20

08

20

09

20

10

20

11

20

12

20

13

Infant Mortality Rate( Per 1000 )

Sudan Africa

0

500

1000

1500

2000

2500

20

00

20

05

20

07

20

08

20

09

20

10

20

11

20

12

20

13

GNI Per Capita US $

Sudan Africa

0.0

0.5

1.0

1.5

2.0

2.5

3.0

20

00

20

05

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Population Growth Rate (%)

Sudan Africa

01020304050607080

20

00

20

05

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Life Expectancy at Birth (years)

Sudan Africa


II

Appendix 2: Table of AfDB’s Portfolio in the Country

The status and performance of the Bank’s project portfolio in Sudan is summarized in the

Table below.

No Project Name Window Approva

l Date Disburse

Deadline

Amount

Approved

(UA)

Amount

Disbursed

(UA)

Disbursed

Rate (%) Out-standing Issues

1

Darfur Water

Project for Peace & Conflict Resolution

African Water

Facility

(AWF)

24.05.2012 31.01.2016 3,000,000 2,400,000 70%

The project has disbursed 70%. However,

the last 30% disbursement processed by the Bank has been blocked by correspondence

Bank due to Sanctions. The contractors for

priority work are expected to complete work by April 2015.

2

Capacity Building

for Debt Management and

Resource

Mobilization

Fragile

States

Facility (FSF)

05.03.2012 31.12.2014 1,050,101 1,050,101 100%.

The project was completed in December

2014 and PCR has been prepared. The PCR workshop is for April 2015. The last audit

report is expected by June 2015.

3

Technical

Assistance to the Mamoun Beheiry

Research Center

(MBC)

NTCF 13.06.2012 14.7.2013 260,500 260,500 100%

The Project has now disbursed 100% after the last disbursement was finally received in

June 2014. The project was completed by

December 2014. Auditor recruited and the audit report is expected in June 2015. PCR

preparation is underway.

4

Capacity Building for Increased

Access to Energy

in Sudan

South-South

Cooperation Trust Fund

27.12.2012 NA 340,500 340,500 100%

Dissemination workshop of study findings is ongoing. The study report is expected by

end of 2015

5

Private Sector,

Trade and

Economic

Diversification in

Sudan

South-South

Cooperation

Trust Fund

23.09.2014 30.12.2015 239,505 119,753 50%

The consolidation of the reports is ongoing

and the dissemination workshop of this

study is expected early in 2015.

6

Technical

Assistance to Full

Poverty Reduction Strategy Paper

Fragile State

Facility

16.06. 2013 30.06.2015 1,973,285 1,973,285 100%

Project is 100% disbursed. However, the last

disbursement request of 66% cleared by the Bank has been blocked by correspondent

Banks due to sanctions. The second rounds

of HHS is currently ongoing using government resources which are to be

reimbursed on clearance of the blocked

funds.

7

Emergency Relief

to Blue and White

Nile States

Special Relief Fund

24.06.2013 30.09.2014 651,856.49 651,825.49 100%

Project is 100% disbursed and PCR being

prepared. The audit report is expected by

May 2015.

8 University of Nyala

Livestock Project.

Korean

Technical

Cooperation Trust Fund

21.05.2013 21.05.2016 331,333.33 331,333.33 100%

Project is 100% disbursed however the last 50% disbursement processed by the Bank

has been blocked by intermediary Banks

since October 2014. Training workshop on basic molecular biology already undertaken

in November 2014 in Nyala and Khartoum.

9

Technical Capacity Building for Public

Finance and

Macroeconomic Management

Project

FSF Pillar 1

Resources 06.12.2013 05.12.2018 22,190,000 976,360 4.4%

The project is currently 4.4% disbursed and the project has been sensitized to fast track

procurement activities for improved

implementation rate. Recruitment of the auditor is completed and that of accountant

is on-going.

10 African Legal Support Facility

(ALSF)

ALSF 09.03.2014 20.04.2014 651,856.49 0 0% Letter of Agreement signed on 20 April 2014 and preparations on-going for start of

implementation.

11

Drought Resilience

and Sustainable Livelihood Program

Phase II

TSF/RO 14.11.2014 31.12.2020 20,000,000 0 0%

Letter agreement signed on 23

February2015 and process of satisfying conditions precedent to first disbursement is

ongoing.

12

Building Capacity

for Inclusive

Service Delivery

50% of PBA

02.03.2015 30.06.2020 27,990,000 0 0%

Letter of agreement is scheduled for

signature in April 2015. Government

sensitized to take steps to fulfil conditions

precedent to first disbursement and also to set up the steering committee.

Total 78,678,937.311 8,103,657.82 10.299%


III

Appendix 3: Key Related Projects Financed by the DPs in the Country

African Development Bank (UA 20 million) - Drought Resilience and Sustainable Livelihoods

Program in the Horn of Africa aims to develop regional systems to alleviate the negative

impacts of deteriorating environmental conditions. Among the activities will be development of

water related infrastructure; protection of water reservoirs; development of market

infrastructure and communication and information systems.

AWF (EUR 3.25 million) - Darfur Water Project for Conflict Resolution and Peace Building

aimed at supporting of the ongoing efforts to consolidate peace and security in the Darfur

region through provision of adequate water to settlers, farmers and pastoralists

Belgium government (USD 2 million) – the loan of for supply of pumps and generators for all

states.

Chinese government (USD 50.0 million) - over the last 15 years been providing funds for

supply of materials and equipment including pipes, casing water tanks and submersible pumps

to all states.

Chinese government (USD 52.4 million) – loan provided to support drilling and installation of

800 deep boreholes in 9 states.

DfID (GP 12 million) - implementation of a rural water and sanitation project covering 6

mahalias in East Sudan (Kassala, Red Sea and Gadrif states) in addition to improvement of

water supply facilities in Port Sudan town.

IFAD (USD 31.5 million) - Livestock marketing and resilience programme is designed to

increase the food security, incomes and climate resilience of poor households in pastoralist

communities. The programme covers: states of Blue Nile, North Kordofan, Sennar, West

Kordofan and White Nile.

Iranian government (USD 120 million) – the loan is earmarked for construction of six treatment

plants providing urban water supply from rivers in the northern states.

The Islamic Development Bank (USD 30 million) - for the construction and rehabilitation of

water yards, hafirs and dams in Darfur.

JICA (USD 10 million) - has been providing support to the sector including training and

technical support to target states with water equipment.

UNEP (USD 0.75 million) – is advocating for implementation of IWRM and supported

Groundwater and Wadis Directorate of MoWRIE in conducting groundwater monitoring,

establishing an IWRM Unit and development of a water resources database system.

UNEP (EUR 7.5 million) - currently implementing a three year project (2014 -2016) for

sustainable natural and livelihoods in Wadi El Ku, North Darfur) hinging on IWRM principles.

UNEP (EUR 3.28 million) - in partnership with NGOs, is implementing a Natural Resources

and Peace Building Project in West Kordofan and Darfur to improve local and state capacity to

resolve resource conflicts and to manage natural resources for peace and sustainable

development with a fund of EUR 3.28 million from EU. Communities in the project areas will

benefit from better access to and management of essential resources and related services

UNICEF (Approx. USD 8 million per annum) - supports DWSU through Water and

Environmental Sanitation Program (WES) at federal and state level. UNCIEF also supported

development of Water, Sanitation and Hygiene Sector Strategic Plan for 2011 -2016, and

drafting of water supply, sanitation and hygiene policy. UNICEF is also supporting

humanitarian and recovery program(s) in collaboration with international and national NGOs in

conflict areas in the country.

Specific interventions and provision of safe water are provided by: UNAMID in Darfur, Darfur

Development Strategy (DDS), East Sudan Development Fund, UNDP and World Bank.


IV

Appendix 4: Map of the Program Area


V

Appendix 5: Program Fragility Analysis

Fragility Context in Sudan

Sudan’s political, economic and social stability are intrinsically intertwined. Conflicts and

instability are at the very core of state fragility in Sudan. The country has been struggling to

address multiple conflicts, low development and violent crisis for decades. Sudan’s conflicts

and state fragility can be said to be driven primarily by three factors: (i) a contested national

identity; (ii) economic inequality between and within states; and (iii) divergent forms of

governance at the federal and state levels.

In May 2014, a detailed fragility assessment was undertaken to inform the Country Brief

2014-2016 which was approved by the Board in September 2014. The assessment identified

four categories of fragility drivers in Sudan. They include: political, economic, social and

environmental. Annex 2 of the Country Brief provides the details.

A few of these identified drivers of fragility in Sudan are quite relevant for this project, and

they include:

(i) Poverty and inequalities in allocation of public resources and in access to public

services: There are significant variations in the allocation of resources from states to

states, and even within states. As a result, some states are better able to provide public

goods and services than others. Conflict regions such as Darfur, Kordofan and Nile

states have lower access to services and resources due to years of development lost as

a consequence of war and forced displacement of the people. This inequality has

resulted in greater poverty, especially in the rural localities.

(ii) Competition over water, pasture and driven by environmental vulnerability and

climatic change is a driver of fragility at the local level, particularly in Darfur and

Kordofan states as well as in areas where pastoralist groups interact with farming

communities. Sudan is geographically located in the Horn of Africa region, which is

prone to prolonged drought, and climate variability, which puts pressure on fragile

communities particularly those displaced by conflict, and disrupts livelihoods. There

is a need for strong governance institutions to help communities better manage

renewable resources such as water and pasture, anticipate and mitigate intercommunal

conflict over water and pasture and improve the livelihoods of pastoralist and farming

communities in areas where environmental pressure is the strongest while preserving

biodiversity and eco-systems.

(iii) A difficult macro-economic environment for providing social goods and services:

The Sudanese government has been under sanctions for a long while. With its huge

debts, making it not possible to borrow from development agencies at concessional

rates, combined with its loss of oil revenue following South Sudan’s secession, the

country is deeply constrained in providing basic goods and services to all regions. The

poor in the rural areas are the most affected. This has undoubtedly threatened social

cohesion in Sudan.

(iv) Low infrastructure and human capital base for economic activity: Over the years,

infrastructure and human capital development in Sudan has been constrained by war,

violent conflicts and poverty. The significant different between states in economic

development is partly driven by the differential levels of infrastructure and human

capital combined with unequal distribution of resources, productive assets and access

to economic activity.


VI

The choice of the two Country Brief pillars (i) Governance and Accountability; and (ii)

Skills and Technology, was deliberately targeted at addressing the root causes of fragility in

Sudan. Particularly to assist the country in improving its economic and financial governance,

and build the capacity of institutions capable of resolving conflicts and thus contributing to

peace, macroeconomic stability, and improved service delivery.

Project information: fragility-sensitive objective

The project recognizes the weak institutional and human capacity of Sudan’s water and

sanitation sector in providing improved access to water resources, both in quantity and

quality, to meet the basic needs of many households. These weak capacities vary from state

to state, and even within states, resulting from inadequate sector framework ineffective

organizational set-up, aging infrastructure and insufficient investments for sustaining access.

The project is focusing on West Kordofan State which has access rates (60%) and daily

consumption rates (10 liters per day per capita) below the national averages of 71% and about

18 liters per day respectively.

The project also recognizes the strong linkage between availability of water resources and

local economies of the populations. Water resources are required for the livestock industry to

feed the animals. Households also require water for domestic uses as part of their overall

wellbeing. Farmers need water sources for irrigation to support agricultural production and

income generation. Meeting these demands, often competing in many communities, has been

a development challenge for West Kordofan State as well as for most parts of Sudan. In most

cases, the competition for water and pasture has been at the core of many conflicts in the

region. For instance, 86% of about 50 cases of conflicts analyzed in 2003 were related to

competition for water and pasture. These conflicts were largely between nomadic groups

interacting with farming communities. In the same vein, many of the conflict resolution

mechanisms in different communities were based on providing sufficient water resources to

meet the competing needs of different groups.

The overall objective of the program is to contribute to building a resilient and sustainable

water and sanitation sector that meets the needs of all users or beneficiaries in the targeted

areas in the medium to long term, as well as to provide water supply and sanitation

infrastructure in targeted areas with a view to contribute to peace building, improving

livelihoods and building resilience against climate variability and change.

Fragility-responsive project design and approach

In Sudan, the history of the presence of water points along the nomadic routes (masarat) for

livestock was instrumental in understanding how related conflicts emerged and/or addressed.

In addition, water points were also core elements of social security, stability and cohesion.

Understanding the conflict dynamics around water is quite crucial, including conflicts

between nomads and local farmers; conflicts of uses (between domestic and livestock uses);

and conflicts of location (proximity to villages and nomadic routes). Hence, differentiating

the use systems during the water infrastructure development is crucial for managing conflicts.

At the project-level, the design and implementation including the activities at different levels

are targeting different drivers of fragility that have been identified as earlier mentioned. In

applying fragility-lens in this project, the approach was to unpack the relevant drivers of

fragility into downside or project-level risks and challenges. The next step was to match the

proposed project-level interventions and activities to the identified risks. The underlying

assumption in this approach is that by making project interventions address project-level

risks, the project ultimately contributes to address the major drivers of fragility affecting the

sector and country at large.


VII

The table below presents the approach of applying fragility-lens in the project design with the

view of making the project contribute to addressing the root cause of fragility in Sudan while

contributing to improving access to water resources for economic and social development.

Drivers of Fragility

Downside risks stemming from the drivers of fragility

Proposed Project interventions

Poverty and inequality in allocation of public resources

Poor conditions of water infrastructure Lower coverage of states outside

Khartoum Exclusion of rural communities Inadequate infrastructure for multiple

water-needs

Rehabilitation of about 25 boreholes and water yards across different communities

Development of new boreholes and water points in the rural areas of West Kordofan targeting 130,000 people and 730,000 livestock.

Construction of water and sanitation facilities in primary schools

Construction of gender-sensitive water and sanitation facilities in markets

Construction of water yards sensitive to different water uses

Difficult macro-economic environment

Inadequate investment in the water and sanitation sector

Lack of policy/legal framework on water at the national level

Increased investments in the water sector through external resources from partners along with increased internal resources

Studies on future investments in the water sector The legal framework for the water sector to be

reviewed The current water supply policy to be updated Water sector coordination platforms to be

established Low institutional and human capacity for effective management

Lack of sufficiently trained experts to manage available infrastructure

Poor management capacity of federal- and state-level water institutions

Ineffective organizational set-up

Institutional reforms of the water sector across all the 18 states of Sudan

Comprehensive capacity development programs for water institutions at federal, state and local levels on management systems

Provision of IT equipment and vehicles for water institutions and training center at federal and state levels.

Establishment of hydrological monitoring networks for ground and surface water

Gender-focused training program for communities and water users

Establishment of training center Adverse Environmental / Climatic conditions

Lower availability of water resources to meet growing needs

Increased competition leading to multiple conflicts

Development of climate-sensitive water infrastructures

Development of improved water harvesting systems Integrated water management systems Capacity building initiatives for communities under

using an initiative called social basement for peace. Community-led governance arrangement to manage

different water demands

Conclusion

The fragility analysis reveals the need to critically integrate conflict-sensitivity in the design

and implementation of the project in order to maximize the outcomes. Two areas are

particularly important in this program, and including: site selection for the water sources, and

management systems for sustainability. The choice of the locations for the water points

should not only be driven by hydrological surveys but also should include elements of

competing uses for water resources (domestic, irrigation and for livestock) as well as cultural

geography of the users. On the management system, there is a need for a hybrid system that

integrates multiple stakeholders from the federal to state and finally to the community. The

capacity development component of the program will target all levels including the

communities where opportunities exist for building social basement for peace.