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Gujarat Communities Meet Basic Needs
Villages in Gujarat are mobilizing to address water issues
In many parts of Gujarat, India, villagers struggle to find clean drinking water. Almost 60% of the state’s villages have no water source that is assured throughout the year. In Surendranagar district, rural communities face acute water scarcity, especially during summer, when the entire Saurashtra region is parched. The rural women bear the brunt, having to walk long distances to collect drinking water. The Aga Khan Rural Support Programme is attempting to alleviate this water crisis by mobilizing the local women’s federation, Mahila Manch, to operate tankers to supply drinking water at affordable rates to 20 villages in the Chotila and Sayla blocks of Surendranagar. In the summer of 2005, the Manch transported and supplied more than 480,000 liters for nearly 2,000 households. With Aga Khan support, the Manch procured tractors and tankers, trained drivers, and planned water distribution. The Manch covers its operating costs through a nominal charge to the poor. This has forced private suppliers to reduce water prices. In the drought-prone Poshina area of Sabarkantha district in north Gujarat, nearly 1,000 tribal households have started lining up at the local milk collection center to get their milk weighed, tested, and recorded before it is transported to the Sabarkantha Dairy for processing. Every 10th day, villagers receive cash payments, right in the village. The Sabarkantha Dairy has organized villagers into eight dairy cooperatives, has helped them purchase livestock, has trained them in basic animal husbandry, and buys their entire milk production. In less than 2 months of operations, the villagers supplied nearly 15,000 liters of milk and generated sales of nearly $3,500. Both these projects are funded through a $3.4 million grant to the government of Gujarat from the ADB-administered Japan Fund for Poverty Reduction. The grant is supporting more than a dozen similar projects in Gujarat, which are being implemented by NGOs and community-based organizations. |

In support of urban development, for example, ADB approved a loan of $221.2 million. It aims to develop urban living conditions in five municipal governments in India’s southernmost Kerala State, including Kochi, Kollam, Kozhikode, Thiruvananthapuram (the state capital), and Thrissur. In particular, it will rehabilitate and expand urban water supply, sewerage and sanitation, urban drainage, solid waste management, and roads and transportation.
It offers “livelihood enhancement” components focused on the poor communities; makes investments in other smaller urban local bodies in the state; and supports capacity building and project management.
The combined population of the Kerala municipalities covered by the project is 2.5 million and is projected to rise to about 3.6 million by project completion in 2011 and further to 6.2 million by 2021. Kerala has performed considerably better than most Indian states on social development measures, but lingering urban poverty remains a threat to its future growth.
In Chhattisgarh, ADB will help improve the livelihoods of about 120,000 farm families by upgrading irrigation services and agricultural practices through a $46.1 million loan. The project will help the government of Chhattisgarh’s Water Resources Department better develop and manage the state’s irrigation sector by strengthening its existing capacity, initiating reforms, upgrading procedures, modernizing equipment, and developing new facilities.
It will also redefine and bolster the role of water users associations in managing and maintaining irrigation systems by strengthening the framework for partnership between them and the government. The project will then rehabilitate and upgrade about 200 minor and 20 medium irrigation schemes, especially those with high potential for diversified cropping, serving about 200,000 hectares throughout
Chhattisgarh.Other projects in India included several funded under the Japan Fund for Poverty Reduction, which is administered by ADB and uses extensive support from NGOs to find creative ways to help alleviate the difficulties faced by the poor. In Gujarat, for example, the Japan Fund for Poverty Reduction is funding efforts to provide clean drinking water to villages in the drought-prone state.
ADB’s overall loan portfolio to India at the end of 2005 comprised 33 ongoing loans for $5.7 billion, including $2.6 billion to transport, $1.7 billion to urban infrastructure, $1.1 billion to energy, and $0.2 billion to the financial sector. Another $0.05 billion went to agriculture, environmental protection, and natural resources.
Under the Urban Primary Health Care project, the poor in Bangladesh are finding better health care in government clinics run by NGOs
In Bangladesh, ADB approved six new loans in 2005. These included ADF and OCR loans for the Gas Transmission and Development project (total $230.0 million), Emergency Flood Damage Rehabilitation project ($152.3 million), Agribusiness Development project ($42.5 million), Second Urban Primary Health Care project ($30.0 million loan and $10.0 million ADF grant), and Southwest Area Integrated Water Resources Planning and Management project ($20.0 million).
The first project will construct four gas pipelines totaling 353 km for transporting natural gas to the less developed western region, an area with nearly 15 million people. With plans to transport 360 million cubic feet of natural gas per day, this will be the first time the region has had access to a large-scale gas supply.
The Emergency Flood Damage Rehabilitation project will repair public infrastructure in five sectors damaged by major floods in 2004. It will restore access to basic services, increase disaster preparedness and mitigation, and include capacity building and training in infrastructure design and assistance to enhance early warning systems.

ADB also began the second phase of the highly successful Urban Primary Health Care project, which has been contracting NGOs to run primary health services. The project is providing more efficient and affordable care than government-run services, with at least 30% of its services targeted at people earning less than 700 taka (about $10) per month. Nutritional supplements will also be given to severely malnourished women and children. It will be active in six cities—Barisal, Chittagong, Dhaka, Khulna, Rajshahi, and Sylhet—and five municipalities— Bogra, Comilla, Madhabdi, Savar, and Sirajgonj—and support the construction of 64 health facilities, upgrading of 4, and purchase of 12 apartments and/or buildings for primary health care facilities in Dhaka.
Separately, Bangladesh joined Nepal and Bhutan as one of the first batch of countries to adopt a results-based country strategy and program for 2006–2010.
As a landmark harmonization initiative, the new results-based strategy and program was prepared jointly with the United Kingdom’s Department for International Development, Government of Japan, and World Bank. The country strategy and program is also aligned with Bangladesh’s national poverty reduction strategy, which aims to achieve the MDGs, including halving the number of poor people in the country by 2015 and delivering substantial improvements in almost all aspects of human development. To achieve these aims, the national poverty reduction strategy emphasizes promoting growth, advancing human development, and improving governance.
Since resuming operations in Afghanistan in 2002, ADB has approved some $817.5 million in support, complemented by nearly $85 million in cofinancing. ADB will provide the country with up to $200 million per year in ADF loans and grants over the remainder of the 2005– 2008 period, in keeping with its pledge at the 2004 Berlin donors’ conference, with up to 50% on a full-grant basis. Another $10 million a year in grant financing will go toward capacity development and technical assistance.
ADB will provide Afghanistan with up to $200 million per year in ADF loans and grants over the remainder of the 2005–2008 period
In 2005, ADB approved a $50 million loan and grant package to improve the power supply. The project will construct a 110-kilovolt power transmission network, as well as a low-voltage distribution system that will connect 11 rural towns, or more than 900,000 households, to the emerging electricity grid.
Another grant for $55 million will rehabilitate a final section of Afghanistan’s “ring road” as ADB’s further contribution to major international efforts to restore the national road system.
A $75 million ADF loan and grant project will support irrigation rehabilitation in Afghanistan’s Western Basins region. The project will include extensive capacity development for Afghan authorities and improve community water resource management.
The $55 million Fiscal Management and Public Administration Reform Program approved in 2005 consisting of loan and grant support will help improve government budgeting, strengthen domestic resource mobilization, improve the civil service, and enhance the monitoring of public finance—all important complements to investments in infrastructure rehabilitation.
ADB’s assistance also contributes to improving governance and development skills, national institutions, and major policies—areas that have constrained Afghanistan’s reconstruction.
Sri Lankans have been reestablishing livelihoods after the Indian
Ocean tsunami, with ADB’s help (right); throughout the region,
ADB focuses on bringing the essentials of life to the poor (above)
In the private sector, a $35 million loan approved in 2004 to the main telecommunications provider, a company called Roshan, had extraordinary results in 2005. Before the mobile phone network started operations, Afghanistan’s nearly 30 million people had to make do with just 25,000 decrepit land-based telephone lines. Roshan quickly drew down the full ADB loan to erect communications towers to reach more remote parts of the country.
In Sri Lanka, the industrial sectors of the country were more or less unscathed by the Indian Ocean tsunami at the end of December 2004. In the coastal regions, however, the tidal waves killed tens of thousands, wiped out whole villages, and destroyed businesses. To help rebuild, ADB provided $157 million in 2005, of which $150 million was given as a grant from the Asian Tsunami Fund. Support is going to the reconstruction of roads, community infrastructure, and shelter; rebuilding livelihoods; and coastal protection. Other funding agencies are supporting reconstruction in education, health, and power. The Japan Fund for Poverty Reduction also provided a total of $4 million in grants for posttsunami reconstruction.

In addition to the tsunami assistance project, four other projects were approved in 2005, including the $150 million National Highways Sector project, $50 million Local Government Infrastructure Improvement project, $40 million loan and grant North East Community Restoration and Development II project, and $20 million loan for the Technical Education Development project.
ADB and the new government are discussing reforms in key sectors, including power; roads; and, in alignment with the International Monetary Fund, fiscal management. The government is striving to improve economic management within existing structures and promote a greater role for the private sector and sector restructuring where necessary for better performance. In Sri Lanka, the lack of investment in infrastructure is one of the biggest obstacles to private sector growth and investment, with power among the most expensive in South Asia, and the road network outside of Colombo in rough condition.
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Gordian Task Reconnects Afghanistan Fixing Afghanistan’s transport network has been an undertaking of Gordian complexity. As a result of conflict, the nation’s roads were devastated, with many sections having all but disappeared. An early assessment of Afghanistan’s transport sector found that up to 54% of the country’s national roads, totaling 6,100 km in length, were in poor condition.
An early assessment of Afghanistan’s transport sector found that up to 54% of the country’s national roads were in poor condition
Just getting supplies to construction sites has been a huge logistical challenge. Roadsides remained littered with land mines, freezing winters slowed progress, and remote mountain ranges posed numerous problems. In addition, many areas were still subject to insurgencyrelated violence, delaying the reconstruction process and augmenting security costs. Yet through a massive international effort that includes ADB support, work to rebuild the “ring road” that circles the country and links Afghanistan to its neighbors is now well under way. Planners have even begun eyeing Afghanistan’s central geographic position and its potential as a land bridge to boost regional trade. Rehabilitating the road system is critical for a landlocked country like Afghanistan. In 2005, ADB approved a $55 million ADF grant to rehabilitate one of the last major unpaved stretches of the ring road. Together with an $80 million loan approved in late 2004, ADB financing will rehabilitate 300 km from Andkhoy to Bala Murghab, south of the Turkmenistan border, linking this remote part of the country with the city of Herat, about 100 km from Afghanistan’s western border with Iran. The project will include the provision of toll facilities, important for longer-term operation and maintenance of the national road system, and will also support HIV/ AIDS prevention and antihuman trafficking awareness campaigns in areas near the road project. ADB is also preparing a road development master plan through a $2 million technical assistance grant that will identify routes linking main markets and production centers. Completion of the full primary road network by 2008, together with major upgrades of adjoining roads in the Central Asian republics, Iran, and Pakistan, will help realize the goal of a regional transport corridor. Afghanistan’s opening of its borders has provided new opportunities for landlocked countries in Central Asia to take advantage of the transit corridors to access the Arabian Sea and Persian Gulf through Iranian and Pakistani ports. |
In Bhutan, total assistance in 2005 came to $29.5 million, including $27.3 million for the Road Network project, which will improve national roads and selected secondary roads to better connect rural areas. It will upgrade about 140 km of the 244 km Gelephu–Trongsa national highway, which connects with the Indian border.
As part of the first batch of results-based country strategies and programs, the Bhutan country strategy and program is designed to focus on managing for development results. It will facilitate the achievement of the MDGs in Bhutan as well as specific commitments in each sector, with goals, targets, and indicators to which ADB assistance operations will contribute. It aims to reduce poverty through economic diversification, broadening the base to better absorb large numbers of young people as they leave the school system. ADB undertook its country strategy and program in consultation with other development partners to ensure that all sectors of the economy were adequately covered.
In the Maldives, the response to the tsunami included a $20 million Asian Tsunami Fund grant and a loan for $1.8 million. The Maldives Tsunami Emergency Assistance project aims to boost economic recovery by rebuilding damaged infrastructure and restoring livelihoods, especially of the poor, on the affected islands. The Japan Fund for Poverty Reduction also provided a $1 million grant for the restoration of livelihoods of the tsunami-affected farmers.
The $6 million loan for the Regional Development project Phase II—Environmental Infrastructure and Management was approved in April 2005 to raise the standard of living in the central regions of the Maldives by improving environmental and land management.
Total assistance in the year amounted to $30.7 million, including $7.8 million in loans, $21.0 million in grant financing, and technical assistance amounting to $1.9 million.
In Nepal, political instability and the security situation hampered the 2005 assistance program, although ADB approved a technical assistance for $2.2 million. It was the first year of implementation of the new Nepal country strategy and program (2005– 2009). It is ADB’s first pilot results-based country strategy and program and is serving as a model for other DMCs.
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Water Projects Take on Rural and Urban Poverty Across Bangladesh, every year, millions struggle through months of floods, food insecurity, disease, and scarce incomes. In Pakistan’s third largest city of Rawalpindi, storm drains turn into sludge canals that seep waste into groundwater and through broken pipes, and contaminate the drinking water. These stark realities, however, are changing. ADB is supporting governments as they tackle some of the region’s toughest water problems. These operations also address an array of poverty issues that are directly and indirectly linked to poor water supplies and lack of sanitation. The impact of these projects is proving that an investment in the water sector is an investment across the poverty board. Stemming Floods Revitalizes Rural LifeManaging chronic floods in Bangladesh was not the objective, per se, of the Small-Scale Water Resource Development Sector project. Rather, it was an entry into reducing overall poverty. If floods could be managed, drainage improved, and irrigation water made available, then total cropping area and cropping intensity could increase. Essentially, less flooding, more fields, more irrigation, and higher yields could result in greater overall productivity, more farm jobs, and higher income levels. What the project envisioned, it accomplished—and more. In its first phase (1995–2002), using an intensely participatory approach in the 280 subproject areas in the west, total crop area increased by almost 13% and cropping intensity by 40%. The increased agricultural production in project areas has generated 14.4 million labor-days annually. Fishery production also increased and created an estimated 176,000 labor-days annually. Local people have formed water management associations to sustain these benefits. According to inspections undertaken by the Department of Cooperatives, members have effectively used their savings to start micro credit schemes to increase their incomes in new activities, such as purchasing milk cows, sewing machines, and higher producing seeds. The same approach is being rolled out in 300 more communities during phase 2 of the project (2002–2009). A third phase is planned. Rawalpindi Project Brings Institutional Reforms
The impact of these projects is proving that an investment in the water sector is an investment across the poverty board
The deplorable conditions of water supply and sanitation in Rawalpindi, near Islamabad, Pakistan, were clear indications that institutions were not in order. Lessons from other projects have shown that the sustainability of water supply and sanitation projects requires the utilities to be in good financial health first. So the Rawalpindi Urban Water Supply and Sanitation Project went to work on institutional and financial reforms. Unreasonable and unsustainable low tariff levels have been revised, billing systems computerized, several complaint offices established, a disconnection policy for defaulters of bills strictly enforced, and an incentive program initiated among utility employees to improve collection efficiency of utility bills. At the same time, the project began increasing water supply levels by considerably rehabilitating the distribution system, legalizing illegal connections, and extending the network to new areas. The institutional reforms are making for a more efficient, reliable system as the project unfolds into phase 2 (the Rawalpindi Environmental Improvement Project), which was approved in December 2005. Operations Break Down DivisionsGuided by ADB’s Water for All Policy, which was externally reviewed in 2005, these projects show how ADB’s operations in rural and urban water are cutting across sectors in 17 DMCs with ongoing projects. In 2005, ADB approved a total of $1.4 billion in water sector loan components and $27.5 million in technical assistance grants, which includes the water supply, sanitation, and waste management sector, as well as water subsector components in multi-sector loans, amounting to 20% of ADB total lending and 14% of total grants. In the water supply, sanitation, and waste management sector alone, ADB approved $618 million in new loans and $5.1 million in technical assistance grants. The investments are a considerable contribution to sustaining economic development—laying the groundwork for water’s critical role in achieving almost all the MDGs. |
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