Water Governance in Asia:the Importance to Project Development and Sustainability

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Tom Panella

Chief of Water Sector Group, Asian Development Bank

Stockholm World Water Week

29 August 2019

“The water crisis is a crisis of governance.”

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Strategy 2030: Prosperous, Inclusive, Resilient and Sustainable Asia and the Pacific

Poverty and reducing inequalities

Climate change, climate and disaster resilience, and environmental sustainability

Rural developmentand food security

Fostering regionalcooperation and integration

Accelerating progressin gender equality

Making cities more livable

Governance andinstitutional capacity

Seven Operational Priorities

Water Governance Tom Panella, ADB4

ADB’s Strategy 2030

➢Strengthening capacity of public institutions for policy reforms and private sector development.

➢Supporting policy, regulatory, and tariff-related

reforms for financial sustainability and effective O&M

➢Strengthening capacity to plan, design, finance, and

implement projects

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ADB’s Water Policy

Makes a distinction between the

governance of water:

• as a resource that should be managed

sustainably

• as a service that should be delivered

efficiently

➢through integrated approach, preferably in a river

basin context

➢by planning and management to a level that best

corresponds to river basin boundaries, groundwater

aquifers or hydrological regions

➢by using participatory and negotiated approaches to

water allocation

As a resource, it should be managed sustainably

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➢by ensuring responsibility for service delivery to autonomous and accountable service providers

➢by setting tariffs based on a cost-recovery principle to attempt to cover full O&M costs, and if possible, also the investment cost

As a service, it should to be delivered efficiently

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ADB’s Water Operational Plan 2011-2020:

➢Mainstreaming governance and capacity

development across ADB DMCs

➢Strengthening financial and asset management

➢Advancing tariff reform measures

➢Establishing/strengthening regulatory regimes

➢Promoting policy dialogue for strengthened

institutions

NATIONAL WATER

SECURITY

KD 1:Household Water Security –

rural water supply and sanitation

KD 2:Economic Water Security -productive economies in

agriculture, industry and services

KD 3:Urban Water Security -

water supply, sanitation and flood

KD 4:Environmental Water Security –

clean water and healthy ecosystems

KD 5:Resilience to Water-Related

Disaster Risks

Asia Water Development Outlook (AWDO): 5 key dimensions of Water Security

AWDO 2020 to include chapters on• Finance (by OECD)

• Governance (by OECD)

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AWDO 2007AWDO 2013AWDO 2016

AWDO 2020

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Putting ADB’s Governance Principles into Practice

Armenia: Infrastructure Sustainability Support Program

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Improving public financial management and utility regulation

• The ADB Program introduced reforms in public finance management, budgeting and developed guidelines approved by the Ministry of Finance.

• The government started using the guidelines in 2018 as a basis for budget proposals by line agencies.

• The program modified existing budget structures, introduced new key performance indicators and developed strategies and costing guidelines including for the State Committee for Water Economy.

• Reformed the operations of the Public Services Regulatory Commission (PSRC) to improve its independence, transparency, and accountability. New legal amendments allowed increased budget allocation, enabling PSRC to attract professional staff on more competitive terms.

Palau: Water Sector Improvement Program

Establishing legal and policy framework for water sector improvement

• The Project put in place the Palau Water and Sewer Corporation (PWSC) to help form an independent and autonomous electricity, water, and sewerage corporation to improve cost efficiencies.

• A Water and Wastewater Operations division was established to deliver water and sanitation services.

• A National Water Policy to sets the water sector vision, goals, principles, agency responsibilities, which was endorsed by the President in April 2012.

• Supported development of a tariff regime for water and wastewater that with gradual increases on an annual basis to more toward cost-recovery.

India: Rajasthan Urban Sector Development Program

Addressing Fecal Sludge Management (FSM) in Urban Centers

• The Government of Rajasthan prepared state-wide FSM policy, city-level FSM regulations and reforms in 3 pilot cities as models and scaling up FSM as default sanitation option in 100 towns in the state, providing budget including from ADB-financed projects.

• The policy changes were undertaken with support from Bill & Melinda Gates Foundation.

• The Program is demonstrating fecal sludge management (FSM) solutions to capture best practices, generate replicable sanitation models, engage private sector providers, develop a conducive institutional framework, and build capacity.

• The pilots in 3 towns have generated innovative civil works for septage collection and treatment, implementation of detailed training, and public engagement strategies.

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India: Karnataka Integrated and Sustainable Water Resources Management Program

Providing integrated solutions for Water Resources Management

• This multi-tranche financing facility established the Advanced Center for Integrated Water Resources Management (ACIWRM), a state think-tank.

• The state government has subsequently provided sustainable financing for the Center.

• ACIWRM has drafted the Tungabhadra River Basin Management Plan, Karnataka’s planned new water policy. ACIWRM is now drafting a new state water law and regulations.

• It has also created and maintain Karnataka Water Resources Information System for policy planning.

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Bhutan: Adapting to Climate Change through IWRM

Applying IWRM to improve Water Security

• The TA supported the preparation of National IWRM Plan (NIWRMP), endorsed by the National Environment Commission (NEC) and launched in March 2016

• The Wangcchu River Basin Master Plan was finalized under the TA and the Wangcchu River Basin Committee was endorsed by NEC in June 2015 and executive order for its formation issued in April 2016.

• The Bhutan Water Security Index was developed. By annually collecting district level water security data, the Gross National Happiness Commission and NEC monitor the countries development plan towards achieving water security.

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Bangladesh: Improving Regulatory Framework for Urban Water Supply and Sanitation

Strengthening governance

• The TA developed regulations on: (i) financialmanagement as part of the regulatory accountingguidelines, (ii) service standards and key performanceindicators for performance monitoring, and customerservice

• The methodology for tariff adjustment, includingsimulation in two utilities was developed

• The TA facilitated the drafting of the Bill for the proposedWater Supply and Sanitation Regulatory Commissionincluding the roadmap for its establishment. The draft billhas also presented to the National Forum for WaterSupply and Sanitation.

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Governance:

Deepens projects’ development impact and inclusiveness

Ensures the sustainability of infrastructure development

Empowers ADB developing member countries to achieve a Prosperous, Inclusive, Resilient and Sustainable future