Water

Implications: Partners

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• What is the role of governments in the implementation of this policy?
• What is the role of NGOs and civil society in the implementation of this policy?
• How does ADB see the role of the private sector?
• How does this policy address the lack of capacity in DMCs in this sector?

What is the role of governments in the implementation of this policy?

Governments should take a leading role in water sector reform. Strengthening water resource management is essentially a public sector responsibility. Policies, laws, and institutions need reform to meet today's challenges in the sector.

Governments will also need to bring stakeholders together to ensure a more integrated approach to water issues at all levels.

For the delivery of water services, this policy recommends that governments should change their role from service provider to regulator. Autonomous and accountable providers can best provide water services.

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What is the role of NGOs and civil society in the implementation of this policy?

Promoting the participation of public, private, community, and NGO stakeholders is a key element of this policy. ADB will promote stakeholders participation in the management of water resources at all levels, and collaborate in fashioning partnerships between governments, private agencies, NGOs, and communities. NGOs should play a key role in catalyzing critical water sector reforms and the necessary public awareness.

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How does ADB see the role of the private sector?

We will support the enabling environment for private participation in the water sector, and help to develop the safeguards that ensure equitable access for the poor.

Private sector initiatives and market-oriented behavior are expected to improve performance and efficiency, particularly in water service delivery. We will continue to support private sector participation in water services. Specifically, we will

• develop innovative financial packages to enable commercial lenders and promoters to manage the risks involved with investing in water-related projects
• promote build-operate-transfer (BOT) and build-own-operate (BOO) projects from its private sector window, through international or local competitive bidding
• assist developing member countries (DMCs) to identify suitable projects for private sector financing and to engage concessionaires
• promote contracting out specific operations to the private sector to maximize the efficiency of publicly owned and managed water service delivery systems
• develop modalities for public-private partnership in the management of physical infrastructure

While governments are primarily responsible for water resource management, several management functions will attract private investments. Others may be contracted out. Global experience indicates that public responsibility and ownership is often best blended with private management.

We would like to support dialogue between the private sector and the NGO community to build better partnerships.

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How does this policy address the lack of capacity in DMCs in this sector?

ADB will promote the development of sustainable plans for capacity building. Much of the capacity building will focus on the national approach to water sector reforms and the need for integrated water resource management. The plans will

• Outline capacity needs at the national, river basin and community levels
• include the establishment of indigenous institutional arrangements for skills development at basic and advanced levels
• incorporate processes that allow the sharing of subregional or regional experiences

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