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Comprehensive Review of ADB's Water Policy Implementation
ADB’s Initial Response to the Report of the Review Panel

BACKGROUND

From March 2005 to April 2006, the implementation of ADB’s Water for All policy was put under a microscope as ADB embarked on an unprecedented, highly consultative, and transparent review process. Led by an independent panel of experts, the review aimed to provide ADB and its stakeholders with an assessment of progress regarding the implementation of the water policy, as well as recommendations to improve ADB's water investments and operations.

The year-long process comes to a close with the circulation of the independent panel’s report, which was received in April 2006 and circulated to ADB’s Board of Directors as an information paper.

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ADB’S RESPONSE

The panel gave five key recommendations for ADB to improve the implementation of its Water for All policy.

ADB supports the general thrust of the panel’s report. In particular, ADB’s vision in the water sector is in line with the three key messages of the panel:

  • Water as a resource and as a service is a key driver to change and development in the Asia and Pacific region.
  • ADB, in its water investments, should continuously balance its dual roles as a development institution and as a bank.
  • ADB and its developing member countries should significantly increase its investments in water as a service and as a resource.

ADB’s responses to the key recommendations are as follows:

Increasing commitments and developing capacities
Drawing on the panel’s work, ADB will prioritize water as a core business area under its new medium-term strategy. Under the new Water Financing Program (WFP) 2006-2010, ADB expects to double its investments to well over $2 billion annually. These investments will focus on expanding long-term rural, urban, and basin water programs.

Developing long-term partnerships with clients, partners, and stakeholders
ADB has made good progress in this area in several countries through water sector assessments conducted, and with support of the Cooperation Fund for the Water Sector provided by the governments of the Netherlands and Norway. ADB recognizes the need to do more and will pursue this under WFP.

Focusing the implementation of IWRM on stakeholder needs and ownership
The water policy fosters IWRM at the river basin level, and ADB recognizes that the foundation for this lies in developing capable river basin organizations, and inclusive and efficient processes for stakeholder participation at all stages of basin planning, project preparation, and implementation

Under WFP, ADB will help introduce IWRM in river basins with the participation of stakeholders.

Promoting ‘business unusual’ in water services
The water policy targets to improve and expand the delivery of water services, in water supply and sanitation, and in irrigation and drainage. To increase access, affordability, efficiency, and cost effectiveness of water services, ADB will use innovative products and services such as multi-tranche financing and sub-sovereign lending, and work to develop effective public-private partnerships in urban water services.

Improving processes to ensure effective policy implementation
WFP will drive the further implementation of the water policy. ADB will enhance its collaboration with civil society organizations, and initiate dialogue with parliamentarians to help create a stronger enabling environment for water reforms and investments. Improving donor harmonization and development effectiveness is already on ADB’s corporate agenda, and further opportunities for co-financing will be explored at country and regional levels.

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NEXT STEPS

ADB accepts the challenges given by the panel, and is committed to advancing the core principles underlying its Water for All policy in its work to increase investments, catalyze reforms, and support capacity development.

ADB’s Water Committee will prepare a detailed response and action plan taking into consideration the suggestions of the panel, and will discuss these with clients, partners, and stakeholders in a consultation to be organized in 2006.

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RELATED LINK

Download the full text of ADB's initial response to the panel's report.

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CONTACTS
ADB Water Policy Help Desk
Tel. #: (632) 632-4444 Loc. 70261
Email:water@adb.org