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   www.adb.org/water Issue 27, January 2007   
Focus News Actions Knowledge Calendar
Water Financing Program 2006-2010
Turning Ripples into Waves
The Asian Development Bank (ADB) is facing a commitment such as it has rarely seen before: double investments and accelerate actions in water to get double the results. The new Water Financing Program (WFP) 2006-2010 intends to catalyze some $20 billion in water investments and improve the lives of over 300 million people in the Asia-Pacific. How does ADB intend to do this? And where should it start? This issue discusses the thinking behind the WFP, its three-pronged approach to water projects, and the prospects the six initial WFP countries face in terms of doubling their water investments.

Focus
Doubling Investments in 5 Years:
Candid Answers to WFP Questions

"We need more investments if we want to resolve water problems," says Wouter Lincklaen Arriens, ADB's Lead Water Resources Specialist. He adds that financing is not enough, and that new investments must deliver results where they count the most—on the ground. Read more of his candid responses to questions about the WFP.

Water Makes WFP Countries Grow
Actual demand for new water sector projects is huge; the question is how to transform it into bankable projects. Six countries—India, Indonesia, Pakistan, Philippines, People's Republic of China and Viet Nam—represent a large chunk of the region's need for better water services and resource management. What prospects await each country?

Three Streams to a Thriving Future
ADB now identifies development work in water as either rural, urban, or basin in nature, enabling the analysis of projects across subsectors and institutions. Behind this three-pronged approach is the idea that an integrated plan for water can be assembled only when the mechanics of its parts have been understood. Can this approach give Asia's water sector its much needed boost?
Water Financing Program: Helping to Introduce IWRM in 25 River Basins in the Asia-Pacific Region
The WFP targets the introduction of integrated water resources management (IWRM) in 25 river basins across the Asia-Pacific. To date, 20 have been identified, and consultations with key country officials are ongoing to select the final five. ADB has also developed a list of IWRM elements and a generic roadmap to help practitioners introduce IWRM into these river basins.

No Rain Checks for Water Financing
Five countries identified opportunities to double their investments in water before a typhoon could interrupt finance talks during the Conference on ADB's Water Financing Program. High-level national and local government officials from the six WFP countries met with ADB water operations staff to discuss the barriers and opportunities facing their water sectors. Will this initial dialogue lead to actual water investments?

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News
New Pilot and Demonstration Activity (PDA) Approved, 3 Others Concluded
A new PDA in Indonesia will develop a water quality monitoring system for the Citarum River Basin's West Tarum Canal, which transports water to Jakarta. The PDA aims to quell the basin's pollution, solve the city's water quality problems, and address water resource management issues. Meanwhile, PDAs in the People's Republic of China, Thailand, and India have recently been concluded.

Network of Asian River Basin Organizations (NARBO) First Batch of Peer Reviewers Certified
Fifteen staff from 8 river basin organizations became the first batch of Certified NARBO Peer Reviewers after completing a workshop on NARBO's benchmarking tool in November. Following the training, NARBO's peer review process was piloted on Indonesia's Jasa Tirta II Public Corporation, yielding interesting results. The review of Sri Lanka's Mahaweli Authority took place in December, and the results will shortly be available.

Bangladesh: Improving Access to Water Supply and Sanitation in Small Towns
Residents of Bangladesh's small towns receive only 2 to 12 hours of piped water daily, and lack sanitation facilities. A US$41 million loan from ADB hopes to provide them better living conditions by improving water supply facilities and constructing school and community latrines. ADB's Nayana Mawilmada says, "Momentum within the sector is significant, and the environment is conducive for change."

India: ADB Financing to Improve Urban Infrastructure in Northern Region of Karnataka State
"[T]here is an urgent need to improve urban infrastructure and services to encourage growth of [northern Karnataka's] local economy on an equitable basis," says ADB's Keiichi Tamaki. India's Karnataka State will avail of ADB's new multitranche financing facility of up to US$270 million to finance developments in water supply and sanitation systems, drainage, roads, and basic urban services.

Pakistan: $600 Million Boost for Private Participation in Developing Infrastructure
Private sector participation in infrastructure development is the key to reducing poverty in Pakistan. A US$600 million ADB loan will support the creation of an environment that encourages private investments in the water, power, and transport subsectors. ADB's Jurgen Conrad says, "This is the only feasible approach for addressing the mismatch between limited supply and increasing demand for infrastructure."

People’s Republic of China: Water and Sanitation Project to Clean Up Environment of Nanjing
ADB’s Sangay Penjor says “Living conditions and public health standards of about 2.7 million Nanjing city residents will improve as a result of reduced pollution and flooding.” He’s referring to the potential gains of ADB’s new $100 million loan for Qinhuai River that will tackle sewerage and water replenishment, wastewater treatment, stormwater drainage, and institutional development.

Pakistan: $900 Million Funds to Boost Irrigated Agriculture's Productivity in Punjab Province
A multitranche financing facility of up to US$900 million will bring improved agricultural production, greater cropping intensity, and scope for diversification into higher value crops to Pakistan’s farmers. ADB’s Thomas Panella says, “There will be a focus on sustainability, decentralized management, transparency, and accountability. The result will be higher economic growth, and more sustainable use of water and land resources.”

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Water Actions
Sri Lanka: 3rd Water Supply and Sanitation Project-Participatory, Consultative, and Empowering
Progress in Sri Lanka's water supply and sanitation sector have remained slow, even with two large-scale projects in 1989 and 1993. The Asian tsunami that hit the country in 2004 further impeded development. Could a third project, with its innovative participatory approach, be Sri Lanka's charm in providing water supply and sanitation coverage to its citizens?
Uzbekistan: Forests Rising at Bottom of Aral Sea
For the last 50 years, the Aral Sea, once the world's fourth largest inland sea, has been combating desertification, environmental degradation, pollution, and even biological weapons testing. Uzbek scientists are using the best method for keeping the sea from shrinking: planting trees. Will their efforts keep the Aral Sea from drying up completely?

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Knowledge Products

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CD-ROM: Smarter Sanitation
"Smarter Sanitation" is the key to cleaner communities. It is also ADB's new electronic toolkit that offers national and local implementers a range of ideas and practices for sanitation policies, financing, community participation, and options for technologies. The CD-ROM includes SANEX™—a high-powered software for assessing and planning sanitation systems. Get a free copy.
Water Brief: Sanitation and Wastewater Management-Saving Public Health and Sustaining Environment
Sanitation entails the use of the best hygienic practices to dispose human waste in ways that do not harm the environment and public health. This one-page brief offers the ABCs of sanitation and outlines the gains and challenges in providing improved sanitation and wastewater management strategies to developing countries in the Asia-Pacific.

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Water Calendar

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8-9 December Workshop on Water Operators Partnership Program (New Delhi, India)
This workshop explored the merits of establishing a water utilities network in South Asia. Lessons from the experiences of the South East Asian Water Utilities Network were considered. Participants expressed enthusiastic support for establishing a South Asia Water Utilities Network and applying benchmarking. A full report will shortly be available.


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Water for All News is produced by the Asian Development Bank (ADB) to provide current information to developing member governments, professionals, researchers, private sector, civil society, academe, and their counterparts in the donor community who are interested in water sector issues that affect the pace of development.

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The Asian Development Bank provides the information contained in this newsletter and links to its web site solely as a resource. While ADB tries to provide high-quality content on its web site, it does not guarantee the accuracy, reliability, or timeliness of this information; and therefore, will not be liable in any capacity for damages or losses to the user that may result from the use of this information. ADB and its affiliate offices, likewise, will not be responsible for any errors, omissions, or inadvertent alterations that may occur in the disclosure of content in this newsletter or on its web site.


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