water article: is adb delivering on its water policy? yes-and no, says review panel

7/29/2019 Water Article: Is ADB Delivering On Its Water Policy? Yes-and No, Says Review Panel

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Water articles are written by ADB staff and external contributors on various water issues, r eforms, and good practices.

Ar t i c le

I s ADB del i ve r ing on i t s w a te r po l i cy? Yes -and no , says rev iew pane lMa y 2 0 0 6

 UNDER THE MI CROSCOPE

"Is ADB's water policy half full or half empty?"

That was the question posed to anindependent review panel in early 2005when it began its mission of evaluatingADB's implementation of the Water for AllPolicy since it was approved in 2001.

The results are in and have been releasedin a report on the sidelines of ADB'sannual meeting this month in Hyderabad,India.

The expert review panel found that ADB's implementation of thewater policy has been both half full and half empty. To be expected,credit is given for those things done right. More importantly, though,is knowing what needs to be improved.

"Water is a key driver for change in the region," said Ms. ErnaWitoelar, the panel chair who is also the UN Special Ambassador forMillennium Development Goals in Asia and the Pacific and formerIndonesian Minister of Human Settlements and RegionalDevelopment covering the water sector. "ADB must think outsidethe box and conduct business unusual to improve conditions inAsia's water sector and to meet the Millennium Development Goalsby 2015."

WHAT ADB NEEDS TO DO BETTER

The panel offers ADB five mainrecommendations with proposed actionsto improve ADB's water operations andinvestments.

1. I nc rease ADB ' s commi tm en ts ,and develop ADB's capaci ty .The panel finds that ADB's lendinglevels and staff capacity have notkept pace with the increasingneeds of the water sector in DMCs.To change this, the panel suggeststhat ADB double its investments inthe water sector over the next five years, and then sustainthose levels with balanced investments in infrastructure,capacity building, and reforms. To accomplish theseinvestment levels means ADB must step up as a sectoralleader. The panel suggests that ADB develop a long-termstrategic plan for recruiting, retaining, and developing itswater sector staff.

While tending to the supply side, the panel also suggestsharvesting greater demand for financing to meet the sector's

needs. The panel recommends launching a major publicawareness campaign in 2007 that would raise the profile of water as a key driver of poverty reduction.

2. Deve lop l ong - t e rm pa r tne rsh ips w i t h s takeho lde rs i ndeve lop ing mem ber coun t r i es (DMC) and amongdonors . The panel found that ADB's impact in the region'swater sector is weakened by its "project by project" approach.To fix this and harness its potential, the panel suggests thatADB focus on building broad-based support for the waterpolicy's principles through regional and in- country programs,which should be long term, rather than project centric.Support can be built through regular policy dialogues andcitizen forums; strategic collaboration with civil society,women, the poor and the private sector; and partnering withexisting knowledge networks.

The panel points out the limitations of ADB, though, to takeon the totality of needed reforms and institution building. Itcannot act alone and expect the kind of comprehensiveresults that the region needs in the water sector. The panelsuggests that ADB take on leadership in identifying the

common interests of donors in the sector and harmonizingtheir efforts.

3. Focus the imp lemen ta t i on o f i n teg ra ted wa te r r esou rcemanagemen t ( IWRM) on s takeho lde r needs andownersh ip . The panel finds that institutions in DMCs areseverely constrained in implementing IWRM and could useADB's continued support through IWRM training, planning,and implementation. The panel advises ADB, though, to moredirectly involve women, civil society, the poor, and othermarginalized groups whose needs must be considered. Thegroups must also feel ownership of IWRM plans in order fortheir implementation to be effective. The panel alsoparticularly supports IWRM in river basins, the foundation of awater sector.

4. Promote " bus iness unusual " t h rough i nnova t i ons t oincrease access, af fordabi l i t y , ef f ic iency, and costef fect iveness. Key concepts in the water policy related towater pricing and charges—a primary issue in bringing water

services to the poor—need to be clarified in the current waterpolicy, the panel finds. It suggests that ADB removeambiguities in the water policy, specifically on issues of subsidies, cross-subsidies, and differential pricing.

The panel also recommends that ADB work harder atexpediting service delivery to the poor, which would helpcountries meet their relative MDG target levels. This willrequire alternative approaches to the typical, large-scaleinfrastructure projects that span sometimes as many as 10years. Alternative technologies that are tested and successfulneed to be redesigned for a larger scale implementation.

The panel also supports ADB's new financing modalities thatextend investments to subsovereign and nonsovereigngroups, in local currencies, and utilize public-privatepartnerships.

5. Im prove ADB p rocesses t o ensu re e f f ec t i ve po l i cyimp lemen ta t i on . The panel notes a need to change ADB'scorporate culture so that the principles of the water policydrive the day-to-day operations, affecting the size, scope,direction, and character of ADB's water sector portfolio. To dothis, the panel says that ADB water operations staff needtools and incentives to genuinely absorb the water policy'sprinciples into their own work and throughout the projectcycle. One way of addressing the gap between policy andpractice inside ADB is creating an operational strategy andplan that is linked to staff member's 3-year rolling work plan.These strategies and plans, the panel suggests, should bepunctuated with quantifiable targets and implementedthroughout its business processes.

Likewise, DMCs need tools and incentives to align planningand policies with ADB's water policy, the panel notes. Oneway of accomplishing this is by integrating ADB's strategies

with a DMC's Country Strategy and Program and nationalplaning. ADB needs to also improve its monitoring andevaluation efforts to mitigate social and environmentalimpacts of ADB projects.

WHAT'S N EXT FOR THE WATER POLI CY?

The proverbial ball is now in ADB's court.The release of the panel's report finishesits responsibility. ADB has issued aninitial response, stating that it "supportsthe general thrust of the panel's report."

The new ADB Water Financing Program,announced at the 4th World Water Forumin March in Mexico City, is expected toprovide results in the areas pointed to inthe panel's five recommendations.

The program will double ADB'sinvestments in the water sector over the next five years and offeradditional technical assistance to assist DMCs reform and buildcapacity.

The Water Committee at ADB is expected to work with ADB's watersector operations staff in building an action plan based on thepanel's recommendations.

RELATED LI NKS

Read the press release on the panel report's presentation atthe 2006 ADB Annual Meeting in Hyderabad, India.Read more about the Water Financing Program.

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*This article was first published online at ADB's Water for All website in May 2006: http://www.adb.org/Water/Articles/yes-no.asp.

7/29/2019 Water Article: Is ADB Delivering On Its Water Policy? Yes-and No, Says Review Panel

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