Marshall Islands: Ebeye Water Supply and Sanitation Project (Additional Financing)

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply

On 28 September 2015, the Board of Directors approved a grant from the Asian Development Bank's (ADB) Special Fund resources in the amount of $5.00 million and the administration of Government of Australia grant in the amount of $4.00 million for the Ebeye Water Supply and Sanitation Project (EWSSP). The Government of Marshall Islands is providing $10.02 million equivalent in counterpart funds comprising a cash contribution of $8.16 million and, exemption of taxes and duties amounting $1.86 million. The project executive agency is the Office of the Chief Secretary, and the implementing agency is Kwajalein Joint Utility Resources, Inc. (KAJUR). The project was declared effective on 3 December 2015 and scheduled to close on 30 June 2022.

An assessment of the current project implementation status and achievements demonstrates solid progress. Over the past 4 years, the project has increased Ebeye's capacity to produce freshwater from 249 cubic meters per day (m3/day) to 1,660 m3/day increasing the availability of water from 26 liters per person per day to 180 liters per person per day, expanded the island's freshwater, saltwater and sewerage networks by 8.5 kilometers (km), rehabilitated the existing water supply and sewerage networks by 2.6 km, and installed new sewage treatment facilities (1,400 m3/day) and a constructed a new sewage outfall of 0.6 km. A contract to upgrade Ebeye's electrical distribution system (replacement of switchgear and power poles) is ongoing and is scheduled to be completed in August 2020 but may be delayed due to COVID-19 impacts including restrictions on the movement of contractor personnel and disruptions to equipment and materials supply chains. Issues with electricity generation on Ebeye (outside of the project scope) have also impact on the achievement of electricity supply security targets but are being addressed by other donors.

There is also measurable progress towards delivering the project's target impact and outcomes. The average monthly number of cases of diarrhea reported by the Ebeye Hospital has declined by almost 20% since following the implementation of the project's hygiene awareness and education program and the commissioning of the new desalination plant (provided by the project through a design-build-operate contract). All 1,465 household on Ebeye now have access to freshwater, saltwater, and sewerage networks service.

However, further assistance is required to build the financial and technical capacity of KAJUR (the project implementing agency). In fiscal year (FY) 2018, KAJUR recorded an operational loss of $3.57 million and is reliant on equity injections from GORMI to remain operational. KAJUR has developed a new water and sewerage tariff framework to apply to all water and sewerage services and targeting recovery of water and sewerage operations and maintenance costs. The tariff framework was considered by KAJUR's Board of Directors in October 2019 and is scheduled to apply from 1 October 2020 PENDING ratification by new KAJUR's Board of Directors (appointed in February 2020). While KAJUR has consulted with the Ebeye community on the introduction of universal water and sewer tariffs, further consultations are required to ensure community acceptance of the proposed tariffs.

Further assistance is also required to build KAJUR's technical capacity to operate and maintain the new desalination plant. When the plant's design-build-operate (DBO) contract finishes in September 2020, KAJUR would not be able to take it over due to the low capacity. The existing DBO contract should be extended with an agreement of enhance skill transfer to KAJUR to operate and maintain the plant after the contact ends. KAJUR needs to optimize the operation of the water supply networks to ensure adequate water pressure for all households. The project impact (reduced incidence of waterborne disease) should continue with further community-wide hygiene awareness campaign activities to sustain improved hygiene behaviors, to prevent contact transmissible disease such as the coronavirus virus.

Secure and safe supplies of fresh water ensured

Effective and efficient sewerage services provided

Hygiene awareness enhanced and hygiene behaviors improved

Secure electricity supply for water supply and sewerage operations ensured

Financial and technical sustainability of KAJUR improved