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p. 13 of 13 BACK | NEXT I. The Context II. The Need For a Comprehensive Water Policy III. The Policy 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

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V. Getting the Policy to Work

67. Main Features. The policy will be linked to country operational strategies. To the extent that water is recognized as a prime development issue in a DMC and the country strategy requires ADB to address water sector issues, the policy will support identification of issues and development of approaches to tackle them. Three principal factors will govern policy implementation. Integrated packages of policy support, capacity building, sector reform, and investment support set in a long-term framework will be provided by ADB. Investments in the sector will be catalyzed by promoting policy, legal, and institutional reform to create an environment where enhanced levels of public-private partnerships become possible and where higher private investments are leveraged. Since water transcends national boundaries, the case for regional cooperation is strong. ADB will promote the regional and subregional exchange of information and experiences in water sector reform, and support regional water partnerships, programs of comparative analysis and research that effectively underpin national policies and plans. Whenever requested jointly by riparian countries concerned, and based on a prioritized assessment of resources, ADB will support the coordinated management of water as a shared natural resource among the DMCs.

68. Sequenced Approach. Implementation will initially concentrate on policy dialogue and water sector assessments to reach agreements with development partners on appropriate national water sector reforms in selected DMCs. These reforms will include the adoption or revision of a national water policy, law, institutional arrangements, information management, and other reforms to expedite an integrated approach to water service delivery and to water resource management in line with an action agenda. Thereafter, plans to invest in a new generation of integrated investment packages will be established and linked to resources. The plans will be based on the country water action agenda,²³ and will be guided by the country operational strategies. ADB will selectively support programs based on the individual water action agendas that embody principles of integrated water resource management. Country capacity to undertake sustainable reform will be continuously assessed and factored into individual water action agenda. Sequenced capacity building will be a key element of the agendas. Projects in existing pipelines that are not based on such agendas will be reviewed and supported selectively if they conform to the broad principles contained in this policy and add value to the objectives of water conservation and efficiency in management.

69. Transition. Policy implementation will involve a period of transition. ADB will ask the DMCs concerned to establish oversight of sector reforms and ongoing and planned water projects through a national water apex body. This apex body, modeled on the lines of a national water council, commission, or authority, will promote an integrated water sector approach and package new projects as an integral part of the action agenda. The apex body will facilitate policy dialogue with ADB and be responsible for the action agenda; it will also establish the basis for a longer-term investment partnership with ADB and other funding agencies. Once integrated water resources management has taken root in a country, the apex body may undertake functions that are more regulatory in nature.

70. Partnerships. The challenges of ensuring that water is conserved and managed wisely are huge and no single agency can hope to address them in isolation. Strengthening partnerships will be crucial for policy implementation. ADB will seek closer cooperation principally with governments, other international and bilateral agencies, the private sector, research institutes, and NGOs. Such cooperation will be factored into the action agendas and partnership agreements established to foster a sense of accountability. Partnerships with the development community will be especially sought to develop synergies in assistance to the sector; this will help maximize the impact of external resources. The partnership approach will clearly identify responsibilities in terms of legislative change, policy reform, institutional change, capacity building, and financing of high priority investments. This coordination will be at country, regional, and global levels and will cover operational, sector, and awareness creation work. Simultaneously, cofinancing, both official and private, will be pursued to provide technical assistance and to help finance priority projects with high efficiency and conservation returns.

71. Adopting the Policy. The policy will guide operational and support departments and offices concerned. A Board paper will be circulated five years after approval of the policy with a comprehensive review of its implementation. The review will be conducted by an expert group, to be commissioned by ADB. It will include ADB staff, advisers drawn from the DMCs, other external support agencies, and international specialists. An in-house review of policy implementation will also be undertaken in the third year jointly by the agriculture and social sector departments; it will be reported to the Board through an information paper.

72. Skills. ADB will maintain an adequate number of water specialists²⁴ in its operational departments and supporting offices to meet the policy objectives. The skills mix of ADB staff will be adjusted to respond to changing needs of the DMCs in sector assessments; policy, legal, and institutional reforms; and the design of integrated investment packages. The participation of water specialist staff in interdivisional and interdepartmental teamwork will be integrated in workplans. Senior water specialists will act as resource persons in policy support, monitoring, and capacity-building activities. A focal point will be established in Agriculture and Social Sectors Department (East) to support efforts aimed at improving the quality of ADB’s water sector operations. The focal point will

1. collect and disseminate information on good practices; technical, institutional, and legal innovations in water use and management; and operations of other funding agencies;

2. develop and maintain a database and a monitoring system for ADB’s water sector operations;

3. prepare progress reports on ADB’s water operations;

4. help identify and prepare appropriate skill development programs for water sector staff; and

5. promote networking with international, regional, and national water sector institutions, and coordination among funding agencies.

73. Resources. This policy aims to provide a comprehensive and integrated framework through which ADB will reinforce a qualitative shift in its operations that places greater emphasis on the integrated water resource management approach. DMC efforts to better conserve and manage a depleting natural resource will be supported. The policy notes that ADB’s water strategies in the DMCs will derive from overall country strategies. Since financial and other resources needed to support DMC development efforts are limited, resources to address water-related issues will have to be carefully prioritized relative to the requirements of other critical development needs. It is expected that most additional DMC needs for the water sector will be managed through a reordering of development priorities. At any rate, increases in investments in the water sector will have to correspond with increases in capacities to manage the investments. The process is expected to be gradual and will have to be carefully synchronized.

74. Against this likely scenario, ADB will need to adopt a flexible and dynamic approach to guide its investible resources in the water sector. Lending programs for the water sector will be driven by country strategies and sector priorities. Correspondingly, staff resources and skill mixes within ADB will be adjusted as required. For instance, in addition to the core specialist staff identified in para. 72, water sector projects will require greater inputs from social scientists, resource economists, and private sector specialists. Staff requirements will, therefore, be continuously reviewed in the context of the evolving country water action agenda and the extent of ADB support for the implementation of the agenda.

75. Recommendation. It is recommended that the Board approve the policy contained in paras. 22 and 25-58, and the implementation arrangements proposed in paras. 67-74.

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