48276-001: Institutional Development of National Water Supply and Drainage Board | Asian Development Bank

Sri Lanka: Institutional Development of National Water Supply and Drainage Board

Sovereign (Public) Project | 48276-001 Status: Closed

The TA will help NWSDB to review its institutional structure and propose a more efficient and accountable institutional set-up. It will promote institutional development of the NWSDB, especially in terms of establishing new functions, e.g., regulation, environment and social, and non-revenue water (NRW) management and enhancing and upgrading the existing functions, e.g., planning and design, and Mapping, etc. Specifically, the TA will help NWSDB to develop significant technical skills of staff in planning and designing standards and GIS applications. This will enhance overall efficiency of NWSDB in handling water and sewerage projects designs by in-house staff.

Project Details

Project Officer
Huang, Jingmin South Asia Department Request for information
Country
  • Sri Lanka
Modality
  • Technical Assistance
Sector
  • Water and other urban infrastructure and services
 
Project Name Institutional Development of National Water Supply and Drainage Board
Project Number 48276-001
Country Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8835-SRI: Institutional Development of National Water Supply and Drainage Board
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

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

Gender Equity and Mainstreaming Some gender elements
Description The TA will help NWSDB to review its institutional structure and propose a more efficient and accountable institutional set-up. It will promote institutional development of the NWSDB, especially in terms of establishing new functions, e.g., regulation, environment and social, and non-revenue water (NRW) management and enhancing and upgrading the existing functions, e.g., planning and design, and Mapping, etc. Specifically, the TA will help NWSDB to develop significant technical skills of staff in planning and designing standards and GIS applications. This will enhance overall efficiency of NWSDB in handling water and sewerage projects designs by in-house staff.
Project Rationale and Linkage to Country/Regional Strategy

The Governments water sector objective is to increase total population that has access to safe drinking water and sanitation: (i) Safe water coverage: 100% by 2020 (2009 baseline: 85%); (ii) Pipe-borne sewerage coverage: 7.0% by 2020 (2009 baseline: 2.5%).

The Country Partnership Strategy (CPS) 2012-2016 will focus on three pillars: (i) inclusive and sustainable economic growth, (ii) catalyzing private investment and enhancing the effectiveness of public investment, and (iii) human resource and knowledge development (page 6; para 24 ADB CPS 2012-16).

The TA is to support NWSDB in: (i) improving the capacity of NWSDB staff to implement and manage water supply and sanitation projects; (ii) improving the quality of water supply and sanitation service operations; and (iii) developing the capacity of staff employed in all relevant divisions of the NWSDB (e.g. Regulatory, Design and Planning, Environment and Social, and NRW, etc.) to implement and manage foreign funded projects.

Impact Improved operational efficiency and accountability of NWSDB.
Project Outcome
Description of Outcome Improved institutional and technical capacity of NWSDB.
Progress Toward Outcome The contract with the capacity development technical assistance (CDTA) consultant for the institutional development of National Water Supply and Drainage Board (NWSDB) was signed on 11 December 2015. The CDTA consultant was mobilized in Colombo on 19 January 2016 and services are completed in January 2018..
Implementation Progress
Description of Project Outputs

1. Strengthened institutional structure of NWSDB.

2. Implemented training and skills development program for NWSDB.

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Strengthened institutional structure of NWSDB.

It was agreed during the kick-off meetings on January 2016 that the CDTA consultant work will focus on providing practical recommendations to NWSDB and assist in achieving key improvements notably:

(i) enhanced NWSDB institutional structure (including nonrevenue water, customer management, etc.) and reinforced autonomy of Regional Supporting Centers;

(ii) setting up of independent regulator most likely through the Public Utility Commission; and,

(iii) enhanced planning and design function and development of environment and social division and nonrevenue water (NRW) division.

A Steering Committee meeting for Regulation was held on the 25 July 2016 at which the Consultant presented a revised overview of the proposed strategy for external regulation of the NWSDB, particularly proposing a licensing of activities in relation to the current zonal divisions, rather than via individual RSCs. Following discussions it was agreed that the consultant would finalize the strategic paper and present the agreed approach at a forum involving an enlarged audience of NWSDB senior staff.

The CDTA consultant has: (i) prepared a draft Strategic Paper (DSP) on regulation and convening a seminar ii) prepared technical notes on regulation (one on tariff, one on experience in the electricity sector, one on licensing); (iii) discussed modalities for licensing to take into account differences between the RSCs (revenues, number of customers) iv) discussed with NWSDB and PUCSL the Regulatory Framework for Sri Lanka. The key conclusions to date of the period are: i) general consensus among key institutional stakeholders met so far to support the principle of external economic regulation of NWSDB to be assumed by PUCSL; ii) necessity to keep the Minister of Water Supply and MCPWS as a whole informed about the process to prepare Regulatory Structure, including before the next Steering Committee meeting; iii) necessity to reactivate the Steering Committee established to steer preparatory works for regulatory structure; iv) necessity to analyze further the one license scheme versus licenses to each RSC (an intermediary path is to have a limited number of licenses (by zone); v) to discuss further the tariff methodology, presumably revenue cap but also possibly benchmarking only in the case of RSC/zones with less revenues and customers; vi) to consider legal aspects; vii) to ensure strong interactions within CDTA Team with a view to use progress made with respect to KPI and business planning at RSC level.

2. Implemented training and skills development program for NWSDB.

(i) An Inception Workshop was held on 5 April2016. More than 50 participants attended the workshop which includes representatives from the MCPWS, ADB and other donors (AFD & JICA), the NWSDB and the Consultant Team. An inception report was provided by the consultant to NWSDB on 18 April 2016.

(ii) A Business Planning Seminar was held on 9 May 2016 which was participated by NWSDB staff and large number of RSCs. In addition to introducing the background for business planning for the NWSDB the consultant introduced a small financial tool for use by the RSCs with the aid of the consultant during the remainder of the assignment.

(iii) An External Regulation Seminar was held on the 27 May 2016 which presented options for external regulation of the NWSDB. Prior to the seminar a background paper was provided and also distributed at the seminar. Participants include representatives from the MCPWS, MOF (departments of public finance and public enterprises), PUCSL, NWSDB and the Consultant Team. The seminar stimulated a large degree of interaction between the participants with all generally agreeing on the necessity for external regulation.

(iv) A Quarterly Progress & Interim Report was prepared and submitted by consultant on 29 June 2016 summarizing capacity development activities implemented so far and planned activities for the succeeding period.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The impact of the TA will be improved sustainability of water supply and sanitation services provided by NWSDB through the development of more advanced technical capacity demonstrated by: (i) establishment of a new regulatory division, (ii) increased capacity and work quality in water and sewerage design preparation, and (iii) improved and extended GIS mapping and ensured that NWSDB is effectively and efficiently managed by enhancing its institutional structure.
During Project Implementation The TA outcome will be improved institutional and technical capacity of NWSDB through institutional enhancement and training.
Business Opportunities
Consulting Services

ADB engaged a consulting firm for a duration of 24 months. The consultant was engaged by ADB in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time).

The consultants' selection was carried out through a firm, using quality- and cost- based selection, with a quality-cost ratio of 90:10, and using full technical proposals.

Responsible ADB Officer Huang, Jingmin
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Ministry of City Planning and Water Supply (formerly Ministry of Water Supply and Drainage)
Lakdiya Medura, No. 35,
New Parliament Road, Pelawatta
Timetable
Concept Clearance 01 Sep 2014
Fact Finding 01 Sep 2014 to 05 Sep 2014
MRM -
Approval 16 Dec 2014
Last Review Mission -
Last PDS Update 28 Mar 2018

TA 8835-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Dec 2014 27 May 2015 27 May 2015 30 Jun 2018 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 100,000.00 0.00 0.00 0.00 1,100,000.00 16 Dec 2014 892,118.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 8835 11 Dec 2015 Safege (France) in association with Resources Development Consultants Ltd. 76 Rue Des Suisses-B.P. 727 92007 Nanterre, Cedex, France Ministry of Water Supply and Drainage 989,100.00

Procurement Plan

None currently available.