Micronesia, Federated States of: Chuuk Water Supply and Sanitation Project

Sovereign Project | 53284-002

The proposed Chuuk Water Supply and Sanitation Project (CWSSP) will improve CPUC's utility operation and customer management, expand and rehabilitate CPUC's sewage system and water supply services, reduce NRW, and increase revenue from water supply and sewerage services. The project will also raise Chuuk's community awareness on good sanitation and hygiene practices to prevent diseases and will foster water conservation.

Project Details

  • Project Officer
    Blaik, Stephen
    Pacific Department
    Request for information
  • Country
    Micronesia, Federated States of
  • Sector
    • Water and other urban infrastructure and services
Project Name Chuuk Water Supply and Sanitation Project
Project Number 53284-002
Country Micronesia, Federated States of
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0767-FSM: Chuuk Water Supply and Sanitation Project
Asian Development Fund US$ 12.76 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed Chuuk Water Supply and Sanitation Project (CWSSP) will improve CPUC's utility operation and customer management, expand and rehabilitate CPUC's sewage system and water supply services, reduce NRW, and increase revenue from water supply and sewerage services. The project will also raise Chuuk's community awareness on good sanitation and hygiene practices to prevent diseases and will foster water conservation.
Project Rationale and Linkage to Country/Regional Strategy

1. The latest official statistics for the Federated States of Micronesia (FSM) estimated the total national population was about 103,000, of which 47% resided in the capital area of Chuuk State. Weno is the main urban center with about 14,000 population (about 30% of Chuuk's population) and has an area of 127 square kilometers. The Chuuk State's population is projected to increase to 50,000 by 2025 with most of the growth in Weno and Tonoas islands.

2. The FSM is highly vulnerable to natural hazards, particularly severe tropical storms and droughts, and is highly susceptible to climate change impacts. In 2015, Typhoon Maysak struck the states of Chuuk and Yap, causing four deaths and damaging houses, crops, and public infrastructure. About a third of the national population was affected, and the damage cost is estimated at 4% of the country's 2015 gross domestic product. Chuuk State experienced two major droughts during 2016-2019, which resulted in Weno's surface water sources drying up and stressing groundwater resources. Climate change projections show that temperatures will continue to rise in the FSM, as will the sea level and ocean acidification. The intensity and frequency of days of extreme rainfall are projected to increase, which exacerbates the need for infrastructure that is resilient to climate change and natural disasters.

3. . In Chuuk State, access to public water supplies and sanitation services is limited. A household survey in June 2020 reported that less than 1% of households in Weno obtained drinking water from the public water supply systems. Other sources of household drinking water were rainwater tanks (58%), protected wells (3%), unprotected well and streams (6%), and bottled water and other sources (32%). Rainwater harvesting is not secure due to the seasonal rainfall patterns and more frequent and severe dry periods as a result of climate change. The CPUC water production is 2,900 cubic meters per day in which 95% is from deep wells and 5% from the Pou River. CPUC filters the water abstracted from the Pou River and chlorinates all the water produced. The Pou River headworks and treatment plant constructed in 1982 are dilapidated and require rehabilitation. CPUC has identified another potential surface water source in the Wichen River, which would expand its water supply, reduce the reliance on groundwater, and substantially cut pumping costs. However, the development of the new water source requires adequate funding.

4. Access to public sanitation services is also limited. The Weno sewerage system commissioned in 1973 serves about 400 households in the northern and western side of Weno Island. Parts of the sewerage network and the sewage pumping stations are dilapidated and requires rehabilitation. CPUC has made continuous improvements of the Weno sewerage system since 2015 together with the Weno road upgrading program. However, substantial investment is required to expand coverage of the sewer network and to rehabilitate the dilapidated parts of the sewer system. Beyond the island's sewerage network area, septic tanks and pit toilets are widely used, particularly among poor communities. Septic tank and pit toilets discharge effluent directly into the shallow aquifers that underlie the island, becoming a major contributor to groundwater contamination and individual household wells. Consequently, diarrhea, particularly among infants is endemic.

5. CPUC is mandated under the Chuuk Public Utility Corporation Act of 2006 to deliver electricity, water supply, and sewerage services to the people in Chuuk State. CPUC's performance has been improved significantly after the institutional reforms began in 2010 financed by the Asian Development Bank (ADB) and the United States Department of Interior. CPUC fully recovered its operation and maintenance, depreciation, and debt servicing cost in fiscal year 2019 with revenue generated from utility service tariffs. However, further institutional reforms of CPUC's framework for water supply and sewerage tariffs are still needed as CPUC's water supply and sewerage services are relatively underperforming and are dependent on cross-subsidies from CPUC electricity sales.

6. CPUC's such underperformance on water supply and sewerage services is largely due to the high rate of nonrevenue water (NRW) in CPUC's water operations. CPUC delivers water services to 480 households in Weno. However, in early 2019, a detailed CPUC survey in one of the water supply zones in Weno indicated that the actual number of households connected to the CPUC water supply system was substantially higher than the CPUC records showed. This large number of undocumented consumers to the CPUC water supply network explains the high NRW in CPUC's water operations, estimated over 50%, and substantially reduces its water supply revenue. CPUC recognizes that reduction of NRW is essential to enable it to collect water supply and sewerage revenue, which will then allow CPUC to expand its water supply and sewerage customer base. To reduce NRW, CPUC plans to: (i) strengthen both its demand management capacity to optimize its water supply network operations and eliminate undocumented connections; and (ii) strengthen its water leak detection capacity to identify physical losses from the pipe network.

Impact

Sustainable development of social and economic infrastructure promoted through the provision and utilization of cost-effective, safe, reliable, and sustainable infrastructure.

Chuuk State infrastructure needs towards a sustainable development met and maintained.

Project Outcome
Description of Outcome Efficiency, climate change and disaster resiliency, and sustainability of safe water and sanitation improved in Chuuk State
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Continuous and safe water supplies provided

Effective, efficient, and safe sanitation provided

CPUC made financially and technically sustainable

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project provides positive environmental benefits by ensuring the adequate supply of safe water and improved sanitation to the residents of Weno. Adverse environmental impacts of the project will be site-specific, largely related to construction activities, which are expected to be minimal for land-based works and for which mitigation measures can be readily implemented. The environmental management plan (EMP) outlines the risks and mitigating actions to be undertaken during project implementation. CPUC's environmental management capacity is limited, and an international specialist will be engaged through the project to support CPUC's implementation and monitoring of the EMP and to strengthen CPUC's environmental management capacity.
Involuntary Resettlement The project affects about 23,300 square meters (m2) and requires the acquisition of about 7,500m2 of land. The balance of the impacted land (about 15,800m2) is within existing reserves and easements and state-owned land. Non-land impacts are associated with some gardens and crops, and temporary impacts on nonresidential structure that could be reestablished once the works are completed. Some 18 persons will be affected. This will be confirmed following the detailed design and during the update of the resettlement plan. Consultations have been undertaken with the affected persons and will continue during project implementation. The draft safeguard documents have been disclosed by CPUC. CPUC will finance, implement, and monitor the resettlement plan. The PMU, which includes a social safeguards specialist, will support CPUC and the CPUC Land Management Officer in implementing the resettlement plan and provide safeguard capacity building to CPUC staff. The project is not expected to have a negative impact on any distinct or vulnerable group of indigenous peoples as defined under ADB's Safeguard Policy Statement.
Indigenous Peoples The project is not expected to have a negative impact on any distinct or vulnerable group of indigenous peoples as defined under ADB's Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation
During Project Design CPUC has conducted ongoing public consultations with all villages in Weno regarding the project since June 2019. A household survey covering 1,514 households, was conducted in June 2020. Focus group meetings commenced in July 2020 to discuss project issues and perceptions. Consultations with affected persons also commenced in July 2020. The Chuuk Water Committee was established by an Executive Order issued by Hon. Johnson Elimo, Chuuk State Governor, on 23 June 2020.
During Project Implementation
Responsible ADB Officer Blaik, Stephen
Responsible ADB Department Pacific Department
Responsible ADB Division PAUW
Executing Agencies
Department of Finance and Administration
PS2, Palikhir
Pohnpei State
Federated States of Micronesia
Timetable
Concept Clearance 07 Apr 2020
Fact Finding 16 Jun 2020 to 19 Jun 2020
MRM 25 Sep 2020
Approval 01 Dec 2020
Last Review Mission -
Last PDS Update 28 Jan 2021

Grant 0767-FSM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Dec 2020 04 Dec 2020 03 Mar 2021 30 Jun 2028 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.64 Cumulative Contract Awards
ADB 12.76 18 Oct 2021 0.15 0.00 1%
Counterpart 0.88 Cumulative Disbursements
Cofinancing 0.00 18 Oct 2021 0.00 0.00 0%

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


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.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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

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Contracts Awarded

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Procurement Plan