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I. The Context
II. The Need For a Comprehensive Water Policy
III. The Policy
A. An Overview
>> B. National Policies and Reforms
C. Water Resource Management
D. Improving Water Services
E. Conserving Water
F. Promoting Regional Cooperation
G. Fostering Participation
H. Improving Governance
IV. The Policy and ADB's Poverty Reduction Strategy
V. Getting the Policy to Work
Water For All: The Water Policy of the Asian Development Bank : III. The Policy

B. National Policies and Reforms

25. Policies. Consistent with the adoption of Agenda 21 in 1992,11 ADB will support the DMCs in ensuring that water projects are guided by effective national water policies that link water to national development goals and protection of the environment. While no single, common policy can serve as a model for all, it is clear that national water policies should address both resource management and service delivery aspects. ADB will help develop comprehensive water policies in the DMCs. Where necessary, ADB will help the DMCs review existing policies and bring them in line with good international practice. Assistance for undertaking water sector assessments will be provided to ensure that policy formulation and sector reforms are well grounded.

26. Reforms. Effective water policy will involve several reforms. Because project planning and implementation are commonly fragmented among many institutions, ADB will support the optimization of agency functions for planning and implementation. It will also focus on the development of effective cross-sectoral coordination mechanisms, such as a neutral sector apex body that can oversee the policy formulation and sector reform process. The structure and tasks of the apex body will evolve with the reform process. Regulatory capacities will be developed over time. Support will be provided for the review and revision of water legislation particularly in the areas of water rights and allocation among competing uses, water quality standards, groundwater use, demand management, resource conservation, private participation, and institutional responsibilities for water sector functions at national, regional or basin, local, and community levels. Box 2 shows how some DMCs are managing water sector reform.

Box 2: Managing Water Sector Reform: Experiences from the People’s Republic of China, Lao People’s Democratic Republic, Sri Lanka, and Viet Nam

After the Asian Development Bank’s (ADB) regional water policy consultations in 1996, several developingmember countries (DMCs) were assisted in initiating water sector reforms, through sector assessments, development of strategic frameworks, and establishment or strengthening of water sector apex bodies.

In Sri Lanka, ADB helped assess the water sector. In 1995, Cabinet adopted the Strategic Framework and Action Plan for Comprehensive Water Resources Management. The actions include establishment of a national water resources council, formulation of a water policy, and preparation of a water law. The Council, established in 1996 with ADB assistance, has representation from government and nongovernment stakeholders, farmer groups, nongovernment organizations, academia, and gender and development interests. A comprehensive policy, legal, and institutional reform package, prepared by the Council was approved by the Cabinet in 2000.

In the Lao People’s Democratic Republic, ADB helped initiate a water sector assessment and a national water sector profile in 1996. The Water Resources Coordinating Committee, established in 1999 in the Prime Minister's Office, prepared a sector strategy and action plan, which was approved by the Government. ADB is now helping implement the action plan, including capacity building of the committee’s secretariat and preparatory work for integrated water resources management in important river basins. ADB helped the People's Republic of China undertake a comprehensive study of strategic options for the water sector. The study provides an overview of the issues facing the country, together with a coordinated program of recommended policy reforms and initiatives.

Viet Nam’s law on water resources, adopted in 1998, includes provisions for water abstraction, discharge permits, river basin planning and management, and inspection functions. Earlier, in 1994, ADB helped the Government to undertake a sector assessment. A national capacity-building program to implement the law has been developed. ADB has formed a partnership with other development partners to assist the Government in establishing the National Water Resources Council, river basin organizations, and capacity in technical and cross-cutting dimensions to improve water resources management and water service delivery.

27. Targets. Given the vital relationship of water to several development challenges, targets have often been set at international fora or by individual DMCs. For instance, the Second World Water Forum at The Hague in March 2000 discussed a number of indicative targets. These include

  1. the proportion of people without sustainable access to adequate quantities of affordable and safe water reduced by half by 2015;

  2. the proportion of people without access to hygienic sanitation facilities reduced by half by 2015;

  3. national standards to ensure the health of freshwater ecosystems established in all countries by 2005, and programs to improve the health of freshwater ecosystems implemented by 2015;

  4. water productivity for food production from rainfed and irrigated farming is increased by 30 percent by 2015;

  5. cooperation mechanisms between riparian states for all major river basins are developed and strengthened by 2005, and subsequent shared water agreements are formulated by 2015; and

  6. the economic value of water is recognized and reflected in national policies and strategies by 2005 and mechanisms established by 2015 to facilitate full cost pricing for water services where guarantees for the poor exist.

These targets reflect the common goal of the forum, namely, to provide water security in the 21st century. ADB will assist the DMCs in developing and adopting water action agendas that have clearly defined objectives and milestones linked to resources (para. 68).

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  1. United Nations Conference on Environment and Development. 1992. Agenda 21. Geneva: United Nations. Agenda 21 is one of the principal documents adopted at the United Nations Conference on Environment and Development, or Earth Summit, in Rio de Janeiro in 1992.


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