Newslink Water and Sanitation Program An international partnership to help the poor gain sustained access to improved water supply and sanitation services Bird s Eye View A Sector Overview Series Pakistan South Asia Region Some Sector Statistics... According to the 1998 census the urban population of Pakistan is 42.458 million and is growing at 3.5% per annum. At the sub-national level both provincial and regional Pakistan s urban demography is characterized by very different urban systems, hierarchies and growth patterns: Sindh s urban population is ~30 million (~49% is urban); Punjab s is ~72 million (~31% is urban); NWFP s is ~17.5 million (~17% is urban) and Balochistan s is ~6.5 million (23.3% is urban). In the 1998 census out of a total of 501 urban places 53 have a population of more than 100,000. According to the Economic Survey (1999-2000) 35% of the urban population lives in slums and katchi abadis. According to the Multiple Cluster Indicator Survey (1995) 45% of the urban population has access to a sanitation system. Moreover, it highlights considerable provincial differences in the level and nature of service. The Pakistan Integrated Household Survey (1996-97) points towards major disparities by income; 19% of the people in the lowest income bracket do not have access to a sanitation system; 70% of the people in the highest income bracket are served by underground drains compared to 16% from the lowest income bracket. Swiss Agency for Development and Cooperation - SDC External Support Agencies in the Urban Water and Sanitation Sector In Pakistan, a number of multilateral and bilateral External Support Agencies (ESAs) have contributed to the development of the social and infrastructure sectors. Today, given the pace of urbanization, and the linkages of urban services to productivity and poverty, ESAs are giving increased priority to urban services in their global strategies. However, coverage figures for the sector currently show a bleak picture, especially for the poor. A number of institutional, policy and operational constraints are responsible for this situation. This NEWSLINK explores the current role and the nature of investments made by ESAs in the context of these coverage numbers. It describes current major multilateral and bilateral donor investments in the sector. It also sees if the increased emphasis at the global level in the urban water and sanitation sector is reflected in the actual ESA investments in Pakistan today. We discuss the nature of investments, strategies to increase their effectiveness and their relationship to the sector gaps in Pakistan today. The purpose of the Sector Overview Series is to provide easily accessible information on broad sector issues to a wide audience in order to generate a discussion on major trends and issues in the sector and inform policy formulation initiatives. This NEWSLINK - the first in the series - discusses the nature and magnitude of external funding for urban water and sanitation in Pakistan. It provides information on major investments, highlights monetary trends in investment funding and raises some issues for further debate and discussion on donor priorities and projects in the sector. This NEWSLINK is based on information from the relevant sections of the Report: Situation Analysis of Urban Environmental Sanitation for Low Income Communities (October 1999) commissioned by the Water and Sanitation Program South Asia (WSP SA). This NEWSLINK has been shared with the members of the ESA Roundtable on Urban Water and Sanitation. The ESA Roundtable is a forum convened by the WSP SA where ESAs currently involved in, or interested in the sector can meet to share information and discuss issues of common concern.
Geographical Distribution of Major Donors Investments CITY LEVEL PROVINCIAL LEVEL NATIONAL LEVEL not shown on the map 1 2 3 4 5 6 7 8 9 AU EC (Peshawar) FAUP DFID (Faisalabad) HC WHO (Quetta, Lahore) HWM RNE (Lahore) KWSIP JBIC (Karachi) MWSIP JBIC (Islamabad) QKAEMP RNE (Quetta) QWSEIP ADB (Quetta) SWEEP UNDP (Rawalpindi) 10 11 UWSSP ADB (Rawalpindi) WASA Lahore DFID (Lahore) 1 2 3 4 5 6 7 8 9 CIP WB/SDC (NWFP) EIROP SDC/UNDP (NWFP) ITCTTC RNE (Punjab) NUDP ADB (NWFP) NACS SDC/NORAD (Northern Areas) PLUS UNDP (Punjab) PMDFP WB (Punjab) SPCS SDC (NWFP) UIEP GTZ (NWFP) ETPI RNE GGGP UNDP LIFE UNDP SGF WB SAP/PDP WB SNPO SDC USSP ADB WSP-SA SDC WQMMP DFID 5 1 2 4 8 9 1 6 9 10 3 6 7 3 4 11 2 7 8 3 5 The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the World Bank Group, any judgement on the legal status of any territory, or any endorsement or acceptance of such boundaries.
Decreasing Assistance for Urban Sanitation The overall external assistance* to Pakistan in the financial year 1998-99 was Rs.156.29 billion, which was only marginally higher than the 1997-98 figure of Rs.155.83 billion. Although the overall external assistance rose by about 54 percent during 1994-99 period in nominal terms, if stock is taken of the exchange rate and prevailing inflation in the country, the assistance in real terms has actually declined. During the last five years, 25 ESAs (13 multilateral and 12 bilateral) have been providing financial assistance to Pakistan in the form of loans and grants. Thirteen of them have been active in Urban Sanitation. During the period 1994-99 these ESAs have provided to the urban sanitation sector a total grant of Rs.1.18 billion and a loan of Rs.10.27 billion. The bulk of the loan funding has come from the two major multilateral agencies, the World Bank, and the Asian Development Bank (ADB), while the Department for International Development (DFID), German Agency for Technical Cooperation (GTZ), Royal Netherlands Embassy (RNE), and Japan International Cooperation Agency (JICA) have been the main source of grants for urban sanitation. However, ESAs have decreased funding in recent years (1998-99). The quantum of grant funding has thus reduced to about one third of what the sector received in the previous year. Similarly, the two major loan funding agencies, IDA and ADB, reduced their financial assistance to half of the previous amount for the sector in 1998-99. Unlike the external financial assistance that increased in rupee terms to keep pace with inflation etc., funding to the urban sanitation sector did not register a significant increase even in nominal terms. In fact, after registering a peak value of Rs.3.2 billion in 1997-98, it declined to Rs.1.3 billion in 1998-99, closely approaching the 1994-95 figure of Rs.1.28 billion. This was inspite the fact that urbanization increased officially at 3.5% per annum. The proportion of funds invested by ESAs in urban sanitation is a very small percentage of the overall external financial assistance to Pakistan. At its peak in 1995-96, the gross external assistance to urban sanitation constituted 2.42% of total financial assistance declining to as low as 0.82% in 1998-99. However, there remains an interesting contrast between the grant and loan funding in urban sanitation. The external grant to urban sanitation, is far lower than the loan component; however, it has always been a larger percentage of the total grant assistance to the country in comparison with its percentage share of the loan. Among the provinces, NWFP received the largest amount of grant funding (41%) from the ESAs during 1994-99, followed by Punjab (36%) and Sindh (20%), while Balochistan received only a very small percentage through some bilateral agencies. Moreover, there has been substantial fluctuation in grant funding from GTZ in this sector, with no province getting continuous funding in these five years. ESAs have strong inter-provincial preferences for grant assistance as reflected in the project list and map. Among other factors ESA funding to a particular province is related to the nature of dialogue with provincial governments, national and sub-national strategies and historical/socio-political associations with a particular province. During 1994-99, ADB, the World Bank, DFID, JICA have been the main ESAs in the Punjab; the World Bank and ADB have been the main donors in Sindh; ADB, GTZ/KFW, SDC and RNE financed initiatives in NWFP; while Balochistan got a small share from UNDP/LIFE and RNE. Currently, apart from JICA no ESA has an investment in Sindh; the main thrust of ESA investments is in NWFP and the Punjab with some investments in Balochistan. * These figures are based on funds channeled through the Economic Affairs Division. They do not capture funds that are channeled through direct support to organizations (international NGOs, local NGOs and intermediary organizations) in the sector. The statistical numbers quoted are based on actuals and not disbursements. ESA Financial Assistance to Urban Sanitation Sector During 1994 99 Total External Assistance & Total Urban Environmental Sanitation Assistance 13.00% 5.00% LOANS 63.00% 5.00% 14.00% 41.00% GRANTS 3.00% 20.00% 36.00% Rupees in million 170000 160000 150000 140000 130000 120000 110000 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 1994-95 1995-96 1996-97 1997-98 1998-99 Federal Areas Punjab Sindh NWFP Balochistan Source: Situation Analysis of Urban Environmental Sanitation in Pakistan 1999 Total Assistance to UES Total External Assistance
Thematic Categorization of Major Donor Investments in the Urban Water and Sanitation Sector Funding Approach ADB UNDP WB WHO EC DFID GTZ JBIC NORAD RNE SDC Policy Initiatives/ Knowledge Management USSP GGGP WQMMP NACS/ NorthernAreas SPCS/NWFP WSP-SA Provincial Governments EIROP/ NWFP UIEP/NWFP NACS/ Northern Areas EIROP/ NWFP Provincial Governments and City Specific Investment PLUS/Punjab Provincial Governments and Line Departments CIP/ NWFP CIP/NWFP Provincial Governments and Municipalities NUDP/ NWFP PMFDP/ Rawalpindi Utilities (Privatization) Utilities (Projects) QWSEIP/ Quetta UWSSP/ Rawalpindi HC/ Quetta & Lahore FAUP/ Faisalabad WASA/ Lahore KWSIP/ Karachi MWSIP/ Islamabad Municipalities SWEEP/ Rawalpindi AU/ Peshawar NGOs LIFE SAP/PDP SGF QKAEMP/ Quetta SNPO Private Sector ETPI HWM/ Lahore ITCTTC/ Islamabad M U L T I L A T E R A L B I L A T E R A L Ongoing Projects Preparatory Projects
Project Glossary Abbreviation Project and ESA Name Brief Description CITY LEVEL PROVINCIAL LEVEL NATIONAL LEVEL AU EC CIP WB/SDC ETPI RNE EIROP SDC/UNDP FAUP DFID GGGP UNDP HC WHO HWM RNE Asia Urbs European Commission Community Infrastructure Project World Bank/ Swiss Agency for Development and Cooperation Environment Technology Program for Industry Royal Netherlands Embassy Essential Institutional Reform Operationalizing Project Swiss Agency for Development and Cooperation/ United Nations Development Program Faisalabad Area Upgrading Project Department for International Development Good Governance Group Project United Nations Development Program Healthy Cities World Health Organization Hospital Waste Management Royal Netherlands Embassy The Asia Urbs Program is an economic cooperation program supported by the European Commission. The total budget allocated for the Program is Euro 26.3 million and its main purpose is to fund public/private sector partnerships involving a Pakistan and a European Union project partner, or, studies which seek to improve living and environmental conditions for those living in urban areas (improvement of management and planning systems, of policy development, of health, and marketing schemes, rehabilitation of buildings, water and sanitation systems etc.). The program funds 65% of the project cost and 35% has to be met by the project team; US$500,000 (approximately) is the ceiling for funding projects. The first project in Pakistan "Community Based Sanitation and Solid Waste Management for a Selected Area of Peshawar has been initiated by the IUCN-SPCS Support Unit, Municipal Corporation Peshawar, and Luton Borough Council, UK. The Project Development Objective is to increase the productivity and well being of the lowincome groups in NWFP through improving their living condition by provision of basic infrastructure and community development. This is being achieved by: (a) infrastructure upgrading and community development in existing urban and rural low-income settlements; (b) promoting the use of demand-driven, participatory design procedures and affordable standards for infrastructure; (c) strengthening the ability of provincial and local governments to collaborate with communities to implement low-income infrastructure programs; and (d) promoting sustainable arrangements for O&M of basic services. The counterpart government agency is the Local Government and Rural Development Department, Government of NWFP. Forty-one rural, nine peri-urban and five urban communities have been selected so far. Communities pay (cash contributions) 20% of the secondary (internal) infrastructure s cost; local councils contribute towards 10% of the cost for the secondary (internal) infrastructure. O&M responsibilities are shared between the communities and the local councils. The ETPI project is being implemented in alignment with the National Conservation Strategy (NCS). Through this project the Netherlands Government has provided direct support to the Federal Chamber of Commerce and Industry. It is a two phase program which has completed its first phase (1996-1999). It covers all the priority industrial sub-sectors identified in the National Conservation Strategy. In phase II (1999 to 2002) the primary objective of the project is to promote the use of environmentally safe technologies for the production of environmentally safe products by Pakistan's industrial sector. The project is implemented under close monitoring which has contributed to the quality of the project. The project will support the Government of NWFP in the implementation of the devolution plan (National Reconstruction Bureau) of the Government of Pakistan. The main aim is to facilitate the institutional policy and structural reform initiatives on decentralizing powers and responsibilities to the district government level undertaken by the Government of NWFP and to build the human and institutional capacity of the provincial and district governments to take on this new role. The key partners are the Planning, Environment and Development Department, development departments of the Government of NWFP, training institutes, resource NGOs and District Governments. The project will be supported jointly by the SDC and the Governance Unit at UNDP. The project will be based on the NWFP Institutional Reforms Program project which aimed at developing the capacity of the provincial government and developing the design of an equitable system for the delivery of public services under a decentralized government. This is a joint social development project between the governments of Pakistan and UK. The project management unit is based in the Faisalabad Development Authority; the project works with the Faisalabad WASA for water and sanitation and the Metropolitan Corporation for solid waste management. The project also includes the health, education and enterprise sectors. During Phase I, 1994-999 nearly 71% of the households in the project area (6000 households) have benefited from access to secondary sewers and 39% have access to potable water. The project rules include cost sharing with communities for 50% of the tertiary (internal) infrastructure; community participation in the entire project cycle; and institutional development of the counterpart agencies. The Governance Unit at the UNDP is providing assistance (national consultants, and international UNDP/UNOPS governance expert) to the National Reconstruction Bureau for the design of a strategic national reform program for devolution. Pakistan has been one of the first countries in the Eastern Mediterranean Region to start the Healthy Cities Program. A Healthy Cities Project is currently underway in Lahore and Quetta. The main objectives of the program are: (a) to promote bottom-up approaches where communities plan, implement, finance, manage and monitor integrated and need oriented development projects; (b) to encourage the government to develop an inter-sectoral plan of action of partnerships with the people, civil society and other agencies; (c) directly impact health (reduction of infant and maternal mortality rates) by educating girls and women and promoting healthy life style through increased family income, self care and provision of basic needs; and (d) support small-scale income generating projects and social sector development activities through costsharing and interest-free loans. The priority areas include the involvement of communities, local governance, and strengthening provincial departments for the improvement of the urban environment. The Netherlands Government through private sector participation in Lahore started the HWM project in 1998. The goal of the project is to promote environmentally friendly waste management through incineration technology and bio-medical waste management in hospitals, thereby solving one-third of the biomedical waste disposal problem of the city. The target groups are the private sector hospitals, hospital workers and inmates, adjoining neighbourhoods and waste pickers.
CITY LEVEL PROVINCIAL LEVEL NATIONAL LEVEL Abbreviation Project and ESA Name Brief Description ITCTTC RNE KWSIP JBIC LIFE UNDP MWSIP JBIC NUDP ADB NACS SDC/ NORAD PLUS UNDP PMDFP WB QKAEMP RNE QWSEIP ADB Introduction to Cleaner Technologies in Tannery Clusters in the Punjab Royal Netherlands Embassy Karachi Water Supply Improvement Project Japanese Bank of International Cooperation Local Initiative For The Environment United Nations Development Program Metropolitan Water Supply Improvement Project (Khanpur 1) Japanese Bank of International Cooperation NWFP Urban Development Project Asian Development Bank Northern Area Conservation Strategy Norwegian Agency for International Development Programme for Improving Livelihoods in Urban Settlements United Nations Development Program Punjab Municipal Development Fund Project World Bank Quetta Katchi Abadis Environmental Management Program Royal Netherlands Embassy Quetta Water Supply and Environmental Improvement Project Asian Development Bank Since 1977, the Netherlands Government is assisting the Pakistan Tanners Association-Northern Zone in environmental improvement of the tanneries in Punjab. The overall objective of the project is to ensure compliance of the National Environmental Quality Standards and Environmental Management System of ISO 14000 by a representative number of tanneries in Punjab under a cleaner production approach. The project has successfully completed two and half years of its implementation. Experience shows that cleaner production options can be implemented best in medium and large tanneries; small tanneries face serious limitations related to a lack of physical space and limited financial capacity. The project is being implemented by Karachi Water and Sewerage Board. The main objective of the project is improvement in quality of water. The project has three components: (a) Treatment Plant at Hub 455 Mld (approx. 100 MGD); (b) Pipri Treatment Works 114 Mld (approx. 25 MGD); and (c) Pumping Station at Manghopir 478 Mld ( approx. 100 MGD). Designing of mechanical and electrical plant equipment has been completed; procurement, shipment and storage of plant equipment is in process. The civil work for the projects has not yet started. The project is being financed under the JBIC Loan Agreement No PK-P40. The total amount of loan is 10.3 billion JY and it is scheduled for completion in 2004. LIFE provides grant funds to communities and municipalities in the water supply, sanitation and environmental hygiene sectors for low income areas. Projects have to be small-scale and lowcost and planned/executed by the communities. Organizations in the urban water and sanitation sector that have received funds include Anjuman-e-Falahi Behbood, Pakistan Education Society, UMEED Foundation, Taraqee and the Capital Development Authority Katchi Abadis Cell. The project will supply 51 MGD (17 MGD for Islamabad and 34 MGD for Rawalpindi) drinking water. Major components of the project include: treatment plant, Islamabad and Rawalpindi and Islamabad City Service Reservoirs. Transmission pipeline to Islamabad and Rawalpindi are complete. Connection of Islamabad and Rawalpindi Service Reservoirs to the city networks was not covered by JBIC loan. The project is being financed under the L/A PK-P24 and will close on October 3, 2000. The total amount of the loan is 12.5 billion Japanese Yens and the project is being executed by the Capital Development Authority. The Bank approved a technical assistance for NWFP Urban Development Project in December 1997. The objective of the technical assistance is to assist the NWFP government in achieving sustainable development in the urban sector. Phase I of the technical assistance will assist the Government of NWFP in preparing, inter alia, (i) a sector policy statement, (ii) a time-bound sector reform action plan, (iii) a sector investment plan, and (iv) a financing plan. Phase II of the technical assistance will prepare the feasibility study and preliminary designs for about 14 sub-projects in seven towns following the Bank's sector lending modality. A joint effort of the International Union for the Conservation of Nature, Northern Areas administration, civil society and private sector, financed by SDC and NORAD. The aim of the project is to facilitate a consultative process for developing a strategy for sustainable development of the Northern Area and develop the capacity of the partners to formulate its implementation. The project is presently at the strategy formulation stage, for which different forums have been notified at central and divisional levels in the form of round tables and village consultations. The project objective is to achieve integrated urban development through self-help approaches for credit and basic urban infrastructure services designed on the basis of a consultative process involving communities, NGOs and government departments. The counterpart agency is the Directorate General of Katchi Abadis and Urban Improvement, Local Government and Rural Development Department, Government of Punjab. The project cities will include Multan, Rawalpindi, Gujranwalla and Faisalabad. The primary objective of the Project is to reduce urban poverty through improved efficiency, coverage, and quality of basic urban infrastructure services in the Province of Punjab in a sustainable manner. This will be achieved through (a) mobilizing additional resources for urban infrastructure development; (b) developing an efficient mechanism for allocating public resources for urban infrastructure investment; and (c) strengthening the financial, administrative and managerial capacities of the urban local bodies. The QKAEMP is designed to facilitate the process of local development and environmental management. It is based on a tri-partite partnership between the Urban Basic Service Cell of the Quetta Municipal Corporation, mid-level NGOs, their partner community based organizations (CBOs) and the lane organizations (LOs) of beneficiaries. The objective of the project is to assist 50 communities within the katchi abadies of Quetta in the design, implementation and self management of sewerage and solid waste disposal system. PIEDAR, a national NGO provides technical assistance to the project and funds are channelled to the mid-level NGOs and CBOs through Ms. Fergusons Associates (Pvt) Ltd. This project includes technical assistance for the design and development of a drainage and sewer treatment plant. It also includes components of a project preparatory technical assistance for $900,000 which was approved on 5 December 1997 by ADB. The major objective of the technical assistance was to prepare a project for possible ADB financing through the management of water resources by conservation and development in the Quetta valley basin. The project components cover: (i) water conservation and water source augmentation plan; (ii) improved water supply services, including a metering program; (iii) sanitation and drainage improvement; (iv) financial sustainability; (v) institutional integration for water supply provision and groundwater management; (vi) building management capacity of Balochistan WASA; and (vii) community participation and strengthened integration of sanitation with health care through hygiene education.
CITY LEVEL PROVINCIAL LEVEL NATIONAL LEVEL Abbreviation Project and ESA Name Brief Description SGF WB SPCS SDC SAP/PDP WB SWEEP UNDP SNPO SDC UIEP GTZ USSP ADB UWSSP ADB WASA LAHORE DFID WSP-SA SDC WQMMP DFID Small Grant Facility World Bank Sarhad Provincial Conservation Strategy Swiss Agency for Development and Cooperation Social Action Program Participatory Development Program World Bank Solid Waste Environment Enhancement Project United Nations Development Program Swiss NGO Program Office Swiss Agency for Development and Cooperation Urban Industrial Environment Program German Agency for Technical Cooperation Urban Sector Strategy Study Asian Development Bank Urban Water Supply & Sanitation Project, Rawalpindi Asian Development Bank Water and Sanitation Agency, Lahore Department for International Development Water and Sanitation Program South Asia Swiss Agency for Development and Cooperation Water Quality Mapping and Monitoring Project Department for International Development The Small Grant Facility is a funding window for NGOs and CBOs to promote networking, dissemination of best practices and innovative approaches to development issues in a range of sectors. Urban NGOs working on water and sanitation that have received grant funds include the Architecture and Planning Education Group and PAN-Environment. The strategy was developed and adopted by the Government of NWFP in 1997. The current third phase of the project is a support for implementation of the strategy by integrating sustainable development and environmental concern in the development planning process through capacity building and institutional development of partner in the 7 core areas of the strategy. The key partners are the Planning, Environment and Development Department and development line department of the NWFP government, NGOs, training institution, and private sector organization working in the core areas of strategy. The Government of Pakistan has been implementing the Social Action Program (SAP) since 1993 to improve the coverage and quality of social services in the sectors of elementary education, primary health, rural water supply & sanitation and population welfare. SAP is supported under a project (SAPP-II) by a number of multilaterals and bilaterals. The Participatory Development Programme (PDP) supplements the SAP effort by involving CBOs, NGOs, private sector and other elements of civil society. PDP, therefore, is the main mechanism under SAP for participatory development of social sectors, where civil society joins hands with the government in expanding the SAP sectors capacity and improving service quality in a cost-effective manner. Under PDP the government invites proposals from the non-governmental sector to implement projects with innovative approaches, targeting especially women, children (particularly girls) and the poor. Proposals focusing on neglected or under-served areas, involving rural or urban communities, are especially welcomed. The project is executed by a project management unit at the Rawalpindi Municipal Corporation. The aim of the project is to work on strengthening the capacity of the municipality for solid waste management. As part of the project new institutional arrangements with communities for solid waste management throughout Rawalpindi have been established. Currently, nearly 62,000 people in Rawalpindi are actively involved in the project. SNPO supports partner NGOs in three key sectors: micro and small enterprise development, natural resource management, human rights, non-formal education and to a limited extent in urban infrastructure. The support mainly focusses on human and institutional development of NGOs. The partner organization are selected on the basis of their mandate, maturity, commitment and constituency. Presently there are 28 NGOs being supported under this program. NGOs working in urban water and sanitation include PIEDAR, URC, Pak-CDP. The German Government is currently assisting the Government of NWFP s Environment Protection Agency with 15 pilot projects to improve the urban industrial environmental situation. Solid waste management is a major component of this project. This technical assistance will assist the government in carrying out an urban sector strategy study. The study will review and analyze urban issues and problems, including the current status of urban development and conditions of urban services as well as the major constraints facing the sector; review urban development policies, programs, and the institutional framework for urban development; assess medium-term urban development requirements, including improvements in urban housing, urban infrastructure, services and functions, and institutional and management efficiency; and assist in identifying potential areas for policy change, program development, institutional strengthening, and external support to the urban sector. The total cost of the technical assistance project is estimated at $186,800 equivalent, with Bank funding from the Bank's technical assistance program at $150,000 and a government contribution in kind of $36,800, and the use of available facilities. This project includes technical assistance for rehabilitation and replacement of water and sanitation related infrastructure for the Rawalpindi WASA. The project is divided into six components: (i) part a (Rs.354 million, 15%); surface water augmentation; (ii) part b (Rs.118 million, 4%); groundwater supply augmentation; (iii) part c (Rs.1,296 million, 55%); distribution system improvement and expansion; (iv) part d (Rs.307 million, 13%); sewerage and drainage improvement; (v) part e (Rs.94 million, 4%); institutional strengthening; and (vi) part f (Rs.189 million, 8%); consulting services. The loan for SDR 50.703 million ($72.0 million at appraisal) was approved in November 1993 and became effective in October 1994. The loan closing date was extended by two years to 30 September 2001 from the original date of 30 September 1999. This project provided parallel funding (Punjab Urban Development Project WB) for institutional strengthening, equipment and consultancy services. This included support for deep sewer cleansing and a program for raising awareness on solid waste management in the immediate project area. WSP-SA is a global program, with regional offices, which focuses on urban and rural water supply and sanitation for the poor. Its main areas of focus are policy and investment support, pilot projects, and knowledge dissemination. DFID has initiated work on designing a national level project for water quality mapping and monitoring. This project will include urban water.
Some Emerging Issues Despite the pressure of Urbanization, increasing recognition of urban poverty, and the link between urban services, social development and infrastructure direct ESA financing of the urban sanitation sector has shown a downward trend in the past five years. This could be due to the fact that current commitment by the major multi-laterals The World Bank and the ADB to work in the urban sector will be reflected in actual investment flows over the next two to three year period. In addition very few bilaterals have a direct and active involvement in the urban water and sanitation sector. In a number of cases ESAs provide assistance without being fully aware of complementary approaches. As it is particularly difficult to follow ESA investments in the urban water and sanitation sector, given their cross-cutting and multi-sectoral nature and the different funding channels that ESAs use, there is a pressing need for ESA partners to institutionalize the procedure for information sharing. The World Bank and the ADB recognizing this need, and the value added that can be achieved, have entered into a Memorandum of Understanding in which they are committed to sharing information on their respective investments in the sector. ESA investments in the sector appear to be evolving from quantitative targets to increasing interest in development objectives and governance issues. This can also be seen in changes in ESA financing from direct investments in earlier generation projects to current projects that focus on cross-cutting and institutional strengthening issues. In order to inform new investments in the sector more information and understanding of the investment impact of earlier generation projects, the current service delivery models and actors, institutional issues, sector gaps and bottlenecks needs to be generated. This understanding can be developed in the framework of national and sub-national strategies focussing beyond large cities at mediumsized and smaller cities. New opportunities in the sector lie in continued support to the institutional strengthening of local government, and understanding the relationship between reform and public - private partnerships. The contributions made by ESAs need to be measured and assessed not only in terms of financial investments but also their impact on sector practices. As work in the urban sector gains momentum there is a need to initiate a process of dialogue, based on a learning agenda, between the main actors in the sector in order to have a maximum impact on services to the poor. Water and Sanitation Program 20-A, Sharah-e-Jumhuriat, G-5/1 Islamabad, Pakistan Tel: +92-51-227 9641 6, Extension 411 Fax: +92-51-282 6362 E-mail: wspsa@worldbank.org Website: http://wspsa@worldbank.org AUGUST 2000 Information from WSP-SA s publications may be freely reproduced. Proper acknowledgments will be appreciated. Please send your comments and requests for more information to Mr. Syed Farrukh Ansar, Administrative Assistant, Water and Sanitation Program South Asia, The World Bank. The Water and Sanitation Program is an international partnership to help the poor gain sustained access to improved water supply and sanitation services. The Program s main funding partners are the governments of Australia, Belgium, Canada, Denmark, Germany, Italy, Japan, Luxembourg, Netherlands, Norway, Sweden, Switzerland and the United Kingdom; the United Nations Development Programme and The World Bank.