program appraisal report...iv results-based logical framework country and program name: ethiopia...
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AFRICAN DEVELOPMENT BANK GROUP
SUPPORT TO THE ONE WATER, SANITATION AND HYGIENE
NATIONAL PROGRAM (OWNP)
COUNTRY: ETHIOPIA
PROGRAM APPRAISAL REPORT
OWAS/EARC
June 2014
Table of contents
Acronyms and Abbreviations ..................................................................................................... i
Loan/Grant Information ............................................................................................................. ii
Client’s information ................................................................................................................... ii
Program Summary ................................................................................................................... iii
Results-Based Logical Framework ........................................................................................... iv
Program Timeframe ................................................................................................................... v
I – STRATEGIC THRUST & RATIONALE ............................................................................ 1
1.1. Program Linkages with Country Strategy and Objectives .......................................... 1
1.2. Rationale for Bank’s Involvement .............................................................................. 2
1.3. Donor Coordination..................................................................................................... 3
II – PROGRAM DESCRIPTION .............................................................................................. 4
2.1. Program Objectives and Components ......................................................................... 4
2.2. Technical Solutions Retained and Alternatives Explored ........................................... 6
2.3. Program Type .............................................................................................................. 7
2.4. Program Cost and Financing Arrangements ............................................................... 7
2.5. Program’s Target Area and Population ....................................................................... 9
2.6. Participatory Process for Program Identification, Design and Implementation.......... 9
2.7. Bank Group Experience and Lessons Reflected in Program Design ........................ 10
2.8. Program’s Performance Indicators ............................................................................ 11
III - PROGRAM FEASIBILITY ............................................................................................. 11
3.1 Economic and Financial Performance....................................................................... 11
3.2 Environmental and Social Impacts ............................................................................ 12
IV– IMPLEMENTATION....................................................................................................... 15
4.1. Implementation Arrangements .................................................................................. 15
4.2. Monitoring ................................................................................................................. 17
4.3. Governance................................................................................................................ 18
4.4. Sustainability ............................................................................................................. 18
4.5. Risk Management ...................................................................................................... 19
4.6. Knowledge Management........................................................................................... 19
V – LEGAL INSTRUMENTS AND AUTHORITY............................................................... 20
5.1. Legal Instruments ...................................................................................................... 20
5.2. Conditions Associated with Bank’s Intervention ...................................................... 20
5.3. Undertakings ............................................................................................................. 20
5.4. Compliance with Bank Policies ................................................................................ 21
VI – RECOMMENDATION ................................................................................................... 21
Appendix I : Comparative Socio-economic Indictors
Appendix II : Bank Group Portfolio in Ethiopia
Appendix III : Similar Projects/Programs Financed by AfDB and other Development
Partners in Ethiopia
Appendix IV : Country Map
i
Currency Equivalents
As of March 2014
1 UA = 29.98467 Birr
1 UA = 1.54740 USD
1 UA = 1.12025 EUR
Fiscal Year
8 July – 7 July
Acronyms and Abbreviations ADF African Development Fund MoH Ministry of Health AfDB African Development Bank Group MoU Memorandum of Understanding BoFED Bureau of Finance and Economic Development MoWIE Ministry of Water, Irrigation and Energy CBO Community Based Organization MSF Multi Stakeholders Forum CLTSH Community Led Total Sanitation and Hygiene MTR Mid-term Review CMP Community Managed Project NGO Non-governmental Organization CRGE Climate-Resilient Green Economy NWCO National WASH Coordination Office CSA Central Statistics Agency NWI National WASH Inventory CSI Core Sector Indicators NWSC National WASH Steering Committee CSO Civil Society Organization NWTT National WASH Technical Team CSP Country Strategy Paper O&M Operation and Maintenance CWA Consolidated WASH Account ODF Open Defecation Free DAG Development Assistance Group OFAG Office of the Federal Auditor General DFID Department for International Development OWNP One WASH National Program DPs Development Partners PAR Project Appraisal Report
DRSLP Drought Resilience and Sustainable Livelihoods Program
PBO Program Based Operation
EIRR Economic Internal Rate of Return PBS Promoting Basic Services EMIS Education Management Information System PCR Project Completion Report ENPV Economic Net Present Value POM Program Operations Manual ESMF Environmental and Social Management Framework RWSSI Rural Water Supply and Sanitation Initiative ESMP Environmental and Social Management Plan RWSSI-TF RWSSI Trust Fund EWTI Ethiopian Water Technology Institute RWSSP Rural WSS Program GDP Gross Domestic Product SSAP Self-Supply Acceleration Program GoE Federal Democratic Republic of Ethiopia SWAp Sector Wide Approach GTP Ethiopia Growth and Transformation Program SWG Sector Working Group HDA Health Development Army TA Technical Assistance HDI Human Development Index ToR Terms of Reference HEW Health Extension Workers TVETC Technical and Vocational Training College HMIS Health Management Information System TYS Ten Year Strategy HoA Horn of Africa UA Units of Account HSC Health Science College UNICEF United Nations Children’s Fund
IBRD International Bank for Reconstruction and Development
USAID United States Agency for International Development
ICB International Competitive Bidding USD United States Dollar IDA International Development Association WASH Water, Sanitation and Hygiene IFR Interim Financial Report WASHCO WASH Committee JMP Joint Monitoring Program WB World Bank JTR Joint Technical Review WHO World Health Organization MDG Millennium Development Goal WMP Woreda Management Project M&E Monitoring and Evaluation WSP Water and Sanitation Program (World Bank) MIS Management Information System WTWG Water Technical Working Group MoE Ministry of Education WWT Woreda WASH Team MoFED Ministry of Finance and Economic Development
ii
Loan/Grant Information
Client’s information
BORROWER: Federal Democratic Republic of Ethiopia
EXECUTING AGENCIES: Ministry of Water, Irrigation and Energy
Financing Plan
Source Amount (UA million) Instrument
ADF 60.00 Loan
RWSSI-TF 6.81 Grant
DFID 86.28 Grant
UNICEF 2.58 Grant
World Bank 132.48 Loan
Government of Ethiopia 35.15 Contributions at Decentralized levels
TOTAL COST 323.30
AfDB’s Key Financing Information
Loan/Grant
ADF Loan
Interest type N/A
Interest rate spread N/A
Commitment fee 0.5% yearly on undisbursed loan amount, beginning to run
120 days after the signing of the loan agreement
Service Charge 0.75% yearly on amounts disbursed & outstanding
Tenor 40 years including the 10-year grace period
EIRR (base case) 23%
Loan/Grant RWSSI-TF
Interest type N/A
Other fees N/A
Tenor N/A
Timeframe - Main Milestones (expected)
Concept Note approval February 2014
Program approval September 2014
Effectiveness January 2015
Mid-term Review March 2016
Last Disbursement June 2019
Completion December 2018
Last repayment September 2055
iii
Program Summary
Paragraph Topics to cover
Program
Overview
Program Name: Ethiopia – Support to One Water, Sanitation and Hygiene National Program
(OWNP)
Geographic Scope: Entire nation
Overall Timeframe: 2015-2018
Expected Outputs: The key outputs of the OWNP are: (a) Improved and sustainable water supply
facilities in rural and pastoral areas, institutions and urban areas; (b) Improved sanitation facilities
and better hygiene; (c) improved WASH sector capacity for planning, budgeting, monitoring,
reporting and sustaining services at decentralised and federal levels.
Program
Outcomes
The expected outcomes of the Program are (a) Increased and more equitable access to safe water,
and better sanitation and hygiene practices; (b) Improved sustainability of WASH facilities; and,
(c) Greater efficiency and effectiveness in the use of resources.
Program
Beneficiaries
The direct beneficiaries are the people of Ethiopia, especially those based in rural and pastoral
areas, who will benefit from improved and more inclusive provision of WASH services at
household and institutional levels, and who will benefit from the attendant wellbeing, time-saving,
and productivity gains. By focusing the Bank’s leadership role on rural and pastoral WASH, the
Program will lay emphasis on the least served majority of the population (about 83% of the
population lives in rural areas). The youth and women will especially benefit from the
establishment of sector-related employment opportunities such as supporting the O&M
frameworks. Moreover, the direct support to tertiary institutions will help to develop necessary
technologies and skills for job creation. The Program will have a positive social and gender impact.
The four Federal ministries responsible for WASH (MoFED, MoWIE, MoE and MoH) will also
benefit from facilitation and capacity building for them to be able to deliver their services.
Needs
Assessment
In line with the demonstrated GoE commitment to the achievement of poverty eradication and
economic growth through the implementation of its GTP, the OWNP (2013) is a Government-led
policy framework document that describes the national strategy and action plan for achieving
WASH GTP targets. The OWNP document was prepared following a country-wide participatory
consultative and prioritization process amongst the various stakeholders.
The financing needs to achieve the targets of the OWNP stand at USD 2.4 billion. The proposed
intervention by the Bank will contribute to the financing requirements for the provision of required
infrastructure and for strengthening sector capacities and systems in a predictable and timely
manner. The proposed intervention will provide sustainable and resilient infrastructure, support
skills development and job creation especially for women and youth, strengthen sector governance
and capacity, contribute to enhanced water and food security, and prioritize the specific needs of
under-served social groups and geographic areas in line with the Bank’s Strategy, and the OWNP.
Bank’s Added
Value
The Bank has continent-wide experience and engagement in Africa, covering infrastructure
development, institutional reforms at both the general and sector levels. The proposed investment
program builds on the Bank’s track record in infrastructure financing and development for the
water and other sectors, and for policy dialogue and support to sector reforms – thus cementing its
position as a trusted partner. The Program will complement other Bank-supported operations such
as the PBS and the HoA Drought Resilience and Sustainable Livelihoods Program (DRSLP). The
proposed TA support for M&E and for building climate change resilience will directly enhance
the Bank’s contribution to the strengthening of national systems and processes and thereby
contribute to better planning and sustainability.
Institutional
Development and
Knowledge
Building
Implementing OWNP under a SWAp offers many opportunities for generating, sharing and
disseminating tacit and explicit knowledge for both DPs and national stakeholders at all levels
through sector dialogue, joint reviews and other coordination mechanisms, and strengthened sector
M&E. Support to tertiary institutions will directly contribute to generating the critical mass for
knowledge generation and/or utilization. Some knowledge products that will be generated and used
to guide policy dialogue and enhance implementation mechanisms relate to: assessment of the
various implementation models; business models for viable WASH enterprises (especially for
sustainability); value for money audits; tariffs, capacity and sustainability; a gender impact
assessment; and a program completion report and post-implementation evaluation.
iv
Results-Based Logical Framework Country and Program Name: ETHIOPIA SUPPORT TO THE ONE WATER, SANITATION AND HYGIENE NATIONAL PROGRAM (OWNP) Purpose of the Program: Contribute to the social economic development of Ethiopia through increased water supply and sanitation access and adoption of hygienic practices in an equitable and sustainable manner
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS
OF
VERIFIC
A-TION
RISKS/MITIGATION
MEASURES Indicator (including CSI) Baseline (2011) Target (2018)
IMP
AC
T
1. Better health and improved livelihoods of
communities
1.1 % of population below poverty line
1.2 Under-5 mortality rate (no/1000)
29.2% (2010)
101 (2010)
22.2%
68
Central
Statistics
Agency, Sector
M&E data
GTP
Annual
Progress Report
OU
TC
OM
ES
1. Increased and equitable access to safe
water, and improved sanitation and
hygiene practices in rural areas and for institutions
2. Improved sustainability of WASH facilities
3.Greater efficiency and effectiveness in the use of resources
1.1 % of people with access to safe water supply, of which _% are female
1.2 % of people with access to improved sanitation facilities, of which _% are female
1.3 % of ODF kebeles (villages) 1.4 % of schools with access to water supply; sanitation (gender and disability-sensitive)
1.5 % of health units with access to water supply; sanitation (gender and disability-sensitive)
2.1 % functionality of water facilities for rural communities 3.1 % of regional plans based on a fully-functioning M&E system
48.9%
60.4%
17% 31.4%; 32.7%
31.9%; 20%
74.5% 0
98% (49%)
100% (49%)
80% 100%, 100%
100%, 100%
90% 64% (7/11)
Risk #1: Implementation
capacity challenges and
high staff turnover
Mitigation: Capacity
building at all levels
including for training institutions; and technical
assistance
Risk #2: Inadequate funding
and low prioritization of WASH sector
Mitigation: Strengthening
SWAp arrangements including joint planning,
reporting and review
mechanisms; advocacy and communications for WASH.
Risk #3: Lack of commitment by Donors
affecting required technical,
human and financial resources
Mitigation: strong and
sustained donor coordination and regular
dialogue with government
OU
TP
UT
S
Component 1: Rural and Pastoral WASH
1.1 New and rehabilitated water supply systems in rural and pastoral areas
1.2 New improved sanitation facilities built
1.1.1 No. of new and rehabilitated water supply schemes/facilities
1.2.1 No. of new improved household sanitation facilities built
0
0
21,700
1,095,000
Sector M&E data
Component 2: Institutional (Schools and
Health Centers)WASH
2.1 New and rehabilitated water supply
systems in institutions
2.2 New gender segregated sanitation facilities in institutions
2.1.1 No. of new and rehabilitated water supply facilities for health centers/posts
2.1.2 No. of new and rehabilitated water supply facilities for schools (stance/student ratio -1:50) 2.2.1 No. of gender segregated new and rehabilitated sanitation facilities for health centers/posts (at least
50% for females; and disability-sensitive)
2.2.2 No. of gender segregated new and rehabilitated sanitation facilities for schools (stance/student ratio -1:50, including disability-sensitive)
0
0 0
0
4,300
4,200 4,700 (2,350)
4,900
Component 3: Sector Governance and
Capacity Building
3.1 Enabling Environment and Sector Governance strengthened
3.2 Capacity Development (including
capacity building for gender mainstreaming)
3.1.1 Establishment of a gender-disaggregated WASH MIS with the NWI regularly updated
3.1.2 No. new legal WASHCOs; and proportion led by women
3.1.3 Quarterly, and annual OWNP progress reports prepared 3.2.1 No. of schools teaching hygiene and sanitation using new curriculum that is age and gender friendly
3.2.2 No. of men and women staff trained in data collection, database management, (WASH MIS, HMIS
and EMIS) and reporting formats 3.2.3 No of women and youth-led micro enterprises for provision of WASH products and services
3.2.4 No. of woreda/zonal/regional staff trained (by gender) in relevant skills including gender
mainstreaming (covering all relevant female staff) 3.2.5 TVETCs/HSCs supported to offer WASH courses; and proportion of women staff trained
3.2.6 No. of schools with new WASH clubs established
3.2.7 Post-construction support units established and flourishing 3.2.8 Assessment of the gender impact of the Program
Piloted
0, 0
N/A 0
0
0
N/A
0; N/A
N/A
0 N/A
Established
10,000; 30%
Prepared 21,000 (70%)
1,100 11
10,000
16; 60%
21,000 (>70%)
20 Conducted (1)
KE
Y A
CT
IVIT
IES
ACTIVITIES INPUTS
Component 1: Rural and Pastoral WASH infrastructure: Construct new and rehabilitate existing water facilities; enhance self-supply; hygiene and sanitation promotion including CLTSH
and sanitation marketing
Component 2: Institutional WASH infrastructure: Construct new and rehabilitate existing water and sanitation facilities for schools and health centers Component 3: Program Management and Capacity Building: Build capacity for WASH service providers at all levels; studies and designs; post-construction support and supply chain
development; sector coordination activities; strengthening sector M&E systems and capacity; water quality monitoring and management
Amount (UA mn)
Rural WASH
Urban WASH
Institutional WASH Governance & Capacity Devt.
(Plus RWSSI-TF for component 4)
128.4
84.2
62.0 41.9
6.8
Total 323.31
v
Program Timeframe
1 This represents the UA 284.85 million from donors and the 10% GoE contribution.
1
REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE AFDB GROUP
TO THE BOARDS OF DIRECTORS ON A PROPOSED LOAN AND GRANT TO ETHIOPIA
FOR THE SUPPORT TO THE ONE WATER, SANITATION AND HYGIENE NATIONAL PROGRAM
Management submits the following Report and Recommendation on a proposed African
Development Fund (ADF) loan not exceeding UA 60.0 million and a grant from the Rural
Water Supply and Sanitation Initiative (RWSSI-TF) not exceeding EUR 7.63 million (UA 6.81
million) to finance Support to the One WASH National Program (OWNP) in Ethiopia.
I – STRATEGIC THRUST & RATIONALE
1.1. Program Linkages with Country Strategy and Objectives
1.1.1 The key development objective of the Government of the Federal Democratic Republic
of Ethiopia (GoE), as outlined in its Growth and Transformation Plan (GTP; 2011-15), is to
achieve inclusive, accelerated and sustained economic growth and to eradicate poverty. Water
is one of the nine priority sectors in the GTP, and one of the five pro-poor sectors which
accounted for 70% of Government expenditures in 2011/12 (Technical Annex A1.2). Support
to Water, Sanitation and Hygiene (WASH) is directly linked to four of the GTP’s seven
strategic pillars, namely: (i) Developing infrastructure; (ii) Providing and expanding quality
social services; (iii) Building public institutional capacities and promoting good governance;
and (iv) Empowering women and the youth and broadening social inclusion. The GTP also
seeks to continue efforts to deepen good governance and strengthen institutional capacity and
gender equality. Government has initiated the preparation of a successor development plan for
2016 and beyond.
1.1.2 Government’s strong commitment to implementing its GTP has resulted in an
impressive economic growth (average of 9.9 per cent for 2011 to 2013) bolstered by sustainable
economic activities. Together with improved governance and the pro-poor focus of public
spending, this has led to reduction in poverty levels to about 30% of the population in
2011/2012, from about 40% a decade earlier (Annex A). Significant progress has also been
made in public financial management and procurement reforms.
1.1.3 The two pillars of the Country Strategy Paper (CSP; 2011 – 2015), namely: (1) Support
to improved access to infrastructure in order to sustain rapid and equitable economic growth;
and, (2) Support for enhanced access and accountability in basic services and improving
business climate, are aligned with the priorities of the GTP. These pillars were assessed against
the Bank Group’s Strategy for 2013 – 2022 (also referred to as the Ten Year Strategy, TYS)
during the CSP’s Mid-Term Review (MTR), and were retained. The MTR also included the
Support to the OWNP under pillar 1 of the CSP. Water and sanitation are also among the basic
services under pillar 2 of the CSP. The OWNP will directly contribute to the following
outcomes of the CSP: (i) increased access to safe water supply and improved sanitation and
hygiene practices; (ii) improved sustainability of WASH facilities; and (iii) More efficient and
effective use of water, financial and human resources. The program aligns to the RWSSI
Strategy 2012-2015 and encompasses three focal areas: (i) RWSSI governance; (ii) climate
change; and, (iii) knowledge management and communication.
1.1.4 Support to OWNP will directly contribute to achieving the objectives of the TYS, viz.:
i) inclusive growth by supporting skills development and job creation especially for women
and youth and by prioritizing the specific needs of under-served social groups and geographic
areas especially in rural and pastoral areas with the aim of reaching universal coverage, and,
ii) transition to green growth, thus implementing the Bank’s Integrated Water Resources
Management Policy, and ensuring infrastructure sustainability and climate change resilience.
2
The intervention is also linked to four of the five operational priorities of the TYS namely:
provide sustainable and resilient infrastructure development; sector governance and
capacity; promote technology and skills development; and, private sector development
especially for services delivery, operation and maintenance and sustainability. Support to
provision of multi-use water schemes in rural and pastoral areas will lead to water and food
security, as well as to improved livelihoods.
1.2. Rationale for Bank’s Involvement
1.2.1. Sector context and challenges: Ethiopia is the second most populous country in
Africa, with an estimated population of 94 million people in 2013, up from 73.9 million
recorded in the 2007 national census. Access to quality and sustainable water supplies and to
improved sanitation are still a challenge, especially in rural areas where about 83% of the
population lives. Data from the National WASH Inventory (NWI; 2011) shows that access to
safe water in rural areas is still only 48.9% (against 39% from Joint Monitoring Program (JMP)
data) while access to sanitation in the same is 60.4% (JMP gives only 19%)2. JMP data for
access to urban water and sanitation is 97% and 27%, respectively – highlighting the huge
sanitation challenge. Access to improved sanitation in institutions (schools and health facilities)
is below 35% (see baseline data in log frame). Low access to WASH services has contributed
to the high prevalence of communicable diseases and high under-5 mortality rates of 101/1000.
It also affects the productivity of women and the youth who spend long hours collecting water
or looking after the victims of water-borne diseases, and girls who may miss school due to
water related chores or because of lack of WASH facilities in schools. The low access is partly
attributed to limited capacity to develop water resources, inadequate financial absorption and
management capacity of the public sector, weak operation and maintenance of WASH systems
and inadequate sector coordination leading to inefficient targeting of resources.
1.2.2. Government Action: In recognition of the importance of the water sector for the well-
being of its people, the GoE set aspirational national GTP targets for water supply coverage
(98.5%, from 67% in 2011) and for sanitation (100% from 65.8% in 2011 - NWI).
Consequently, the GTP period has witnessed concerted efforts by Government to achieve its
targets which culminated in the adoption of the One WASH National Program (OWNP: 2013-
2020) in 2013 as the new policy framework document that describes the national strategy and
action plan for achieving WASH GTP targets (at a cost of about USD 2.4 billion), and beyond.
The OWNP enshrines harmonization, integration, alignment and partnership; and advocates
for one plan, one budget, one reporting system and one Consolidated WASH Account (CWA).
The Bank, as one of the lead partners in the water sector, was called upon to support the OWNP.
1.2.3. Bank’s Comparative Advantage and Added Value: The Bank’s engagement in the
WASH sector in Ethiopia covers infrastructure investments and capacity building in both the
rural and urban sub-sectors, as well as in innovative pilot projects to enhance the resilience and
sustainability of investments (see Appendix III and Technical Annex Table A25). The Bank is
an active member of the Development Assistance Group (DAG) and various water sector
coordination forums. The OWNP provides another opportunity for the Bank to support a sector
wide program (SWAp) in line with aid-effectiveness principles3 (Paris Declaration and Accra
Agenda of Action) - thereby contributing to enhancing aid results and to building national
systems and capacities for equity and sustainability. The proposed coordination mechanisms
under the OWNP will avail opportunities for meaningful sector policy dialogue to promote
2 The difference arises from the definition of “access”: GoE definition includes facilities that are not considered “improved” by JMP. The GoE intends to focus on availability of services in the short-term, and on improving the quality thereafter. 3 “Aid effectiveness” refers to five principles agreed by the international community: ownership, alignment, harmonization, results, and mutual accountability with the aim to strengthen country systems and long-term capacity to deliver and sustain services by focusing on country ownership and alignment of aid with national systems.
3
greater inclusion and efficiency in WASH services delivery. The Bank-managed RWSSI-TF
grant resources will enable the Bank to provide timely and appropriate technical assistance;
support mechanisms for tracking results and ensuring value-for-money; as well as facilitate
analytical work and capacity development to nurture the budding SWAp (see section 2.2 and
Technical Annex C2). This approach underpins the 2010 OECD Paris Declaration Survey that
showed that the Bank has increased its use of country systems and does not use parallel project
implementation units. The Bank has supported sectoral reforms and SWAps and this
knowledge positions the Bank to aptly support the OWNP. In addition, the revision of the block
grant allocation formula targeted by the program for Promoting Basic Services (PBS, see
Appendices V and VI) will be complemented by the enhanced transparency and inclusion in
sector planning, budgeting and reporting under the OWNP.
1.3. Donor Coordination
1.3.1. At national level, the DAG which comprises 26 multilateral and bilateral partners
(including the Bank) serves as the central body for the coordination of the activities of
development partners (DPs) providing development assistance within the Paris Declaration
principles. The Water Technical Working Group (WTWG), a WASH sub-group of DAG,
consists of African Development Bank Group (AfDB), World Bank (WB), Department for
International Development (DFID), United Nations Children’s Fund (UNICEF), European
Union, Water and Sanitation Program (WSP), United States Agency for International
Development (USAID), Italy, Finland and the Netherlands. It meets monthly to: (i) improve
harmonization and alignment of donor activities in WASH; and, (ii) support the GoE in the
effective implementation of sector activities, including the OWNP. The Bank also participates
actively in many of the Sector Working Groups (SWGs) of development partners and the
Government, including the WASH SWG. Table 1 shows the financial contribution of some of
the Major WASH Development Partners. Additional information is provided in Appendix III
and Technical Annex A25.
1.3.2. In the spirit of harmonization, and to support the Government of Ethiopia’s efforts to
move the WASH sector towards a programmatic approach, two semi-annual Joint Technical
Review (JTR) missions and an annual Multi Stakeholders Forum (MSF) are undertaken. At
the MSF, findings from the JTR missions are discussed and undertakings are agreed for
implementation by WASH stakeholders in the subsequent year. The OWNP is one of the
undertakings of the MSF.
Table 1 : Some of the Major WASH Development Partners in Ethiopia
Sector or subsector* GDP
Water and Sanitation [under 1%]
Donor Commitments to the Ethiopian Water and Sanitation Sector (2005 – 2012)
Total: USD 1,208m
Level of Donor Coordination
Existence of Thematic Working Groups YES
Existence of SWAps or Integrated Sector Approaches YES
AfDB's Involvement in donors coordination Member
AfDB 13 % EU 6%
DfID 18% World Bank 41% UNICEF 3% Japan 9%
Netherlands 3% USAID 3%
Others 5% Source: OECD statistics
4
II – PROGRAM DESCRIPTION
2.1. Program Objectives and Components
2.1.1. The goal of the Program is to contribute to reducing poverty and improving the health
and well-being of Ethiopians, in line with the GTP. In this regard, the purpose of the Program
is to increase access to water supply and sanitation services as well as the adoption of good
hygiene practices in an equitable and sustainable manner.
2.1.2. The focus of the Bank’s support to the Program will be on: (i) improving sector
outputs and outcomes; (ii) supporting expenditure policy and composition of sector expenditure
in the framework of the fiscal decentralization policy and the federal constitution (Technical
Annex A1) through sector coordination and policy dialogue; and, (iii) strengthening sector
governance to enhance sustainable delivery of WASH outputs.
2.1.3. The Program components that will be supported through the CWA and RWSSI-TF
during a 4-year period are presented in Table 2. The Bank will contribute its ADF resources to
the CWA and will target its contribution to supporting Rural and Pastoral WASH, Institutional
WASH and Sector Governance and Capacity Building. RWSSI-TF will be used to enhance
sector governance and improve sustainability of WASH systems in line with RWSSI Strategic
Plan 2012-2015 (see Technical Annex C2). There will be no geographical targeting although
the allocation of CWA resources at regional level will prioritize the least served communities.
5
Table 2 : Program Components [cost in million UA equivalents]
No. Component Est. Cost
(million UA) Component Description
1.
Rural and
Pastoral
WASH
128.38 (198.66) * (CWA and
Counterpart)
Construction and rehabilitation of 21,700 water supply facilities; and support to households and communities to promote self-supply. Promotion of hygiene and sanitation improvement at household and community level through activities such as Community Led Total Sanitation and Hygiene (CLTSH) and sanitation marketing. The target is to encourage households to build 1,095,000 new sanitation facilities.
2. Urban WASH 84.21 (130.31)
(CWA and Counterpart)
Construction and rehabilitation of 110 water supply schemes; construction of 6 sludge drying beds; and procurement of 9 vacuum trucks /desludging equipment.
3. Institutional
WASH
62.03 (95.98) (CWA and
Counterpart)
Development and dissemination of sanitation and hygiene curriculum; construction and rehabilitation of 4,300 water supply facilities for health centers/posts and 4,200 for primary and secondary schools (tap/student - 1:50); and construction and rehabilitation of 4,700 gender sensitive sanitation facilities for health centers/posts and 4,900 for schools (seat/student ratio -1:50).
4.
Sector
Governance
and Capacity
Development
41.87 (64.79) (CWA and
Counterpart)
Sector governance: studies, designs, preparation, implementation and management of WASH infrastructure investments; water quality management/water safety plans; value for money audits; legalizing and capacity building of WASH committees (WASHCOs); support to supply chains; development and implementation of catchment protection and environmental management plans; and procurement of goods including software, motor cycles and vehicles. Capacity development: staff training at all levels; post-construction management support; support to monitoring, evaluation and reporting; training of artisans and local contractors; support to TVETCs and HSCs. It is expected that 10,000 WASHCOs will be legalized, 21,900 schools will be teaching hygiene and sanitation using new curriculum; 10,000 woreda/zonal/regional staff trained in relevant skills, and 16 TVETCs/HSCs will be offering WASH courses through above support among others.
6.81 (10.54) (RWSSI-TF, not
part of CWA)
RWSSI-TF will support activities aimed at strengthening: i) M&E: procurement of equipment; provision of TAs; support to NWI;
and continuous staff training. ii) Sector Coordination: provision of TAs; and support to report
preparation and sector meetings. iii) Sustainability: establishment and operation of 20 post-construction
support units; establishment of 11 women and youth-led micro enterprises (1 per region and city administrations – with potential for forming branches at lower levels) for provision of WASH products and services; and development of a climate change risk resilience tool kit including training.
Total
316.49 (489.74) (CWA and Counterpart)
6.81 (10.54) (RWSSI-TF)
*Figures in brackets are in USD million
N.B: Resources from the donors are commingled in the CWA and cannot necessarily be traced by component
6
2.2. Technical Solutions Retained and Alternatives Explored
2.2.1. For Water supply, the OWNP provides more than 13 types of water supply
facilities/schemes that will be applicable for the implementation of the Program. The
technology selection varies from region to region, and selection will depend on factors
including hydrogeological formation and water resources availability, population density,
investment and operation and maintenance (O&M) costs and affordability. The GoE is also
promoting solar and wind-powered water schemes as part of the sector interventions under the
Climate-Resilient Green Economy (CRGE) Strategy with a target to operationalize 30,000
schemes (replacement of 10,000 diesel-powered schemes and installation of 20,000 new
schemes) by 2020. In line with the programmatic support, the CWA resources will support all
feasible technologies, as selected for the various regions, including support for enhancing the
quality and sustainability of self-supply options (see Technical Annex C1.2), in line with
annual work plans and targets. Attention will be paid to ensuring water quality protection and
sustainability.
2.2.2. For sanitation and hygiene, CWA resources will support GoE’s efforts to achieve its
sanitation targets by contributing to the main activities defined under the three pillars of the
National Sanitation Strategy and in the OWNP, namely: creating an enabling environment;
building demand for sanitation; and facilitating the supply of desirable, appropriate and
affordable hardware. The specific Program interventions include promoting CLTSH,
implementation of sanitation marketing, use of Health Extension Workers (HEWs) and the
Health Development Army (HDA) for household outreach to support behavior change and
good hygienic practices and to promote Open Defecation Free (ODF) communities.
Construction of institutional facilities will be according to existing manuals, while paying
special attention to gender access and sustainability.
2.2.3. A number of options are also considered to enhance the capacity of local implementers
for functionality/sustainability of infrastructure and services while creating jobs for women
and youth. Interventions will include for example: enhancing employment opportunities by
promoting a fresh graduate attachment scheme to program-hired consultants/contractors, and
special clauses in construction contracts; the women and youth-led enterprises for provision of
WASH products and services; and post-construction units, among others.
2.2.4. The alternatives considered for the Bank’s support were whether to:
i) Support all WASH sub-sectors and OWNP components, or provide earmarked support.
Considering the huge financing gap, the Bank’s ongoing support to rural WASH and
the bigger portion of the unserved that live in rural areas, it was agreed with
Government that although the Bank’s contribution will be commingled with that of
other CWA partners, the Bank’s support technical assistance (TA) support will focus
on rural and institutional WASH and on sector monitoring and evaluation (M&E).
ii) Contribute to the CWA or have a standalone project with separate planning, financing,
monitoring and reporting arrangements: with Government’s demonstrated leadership
for the sector and to benefit from the efficiency outcomes of SWAps, it is proposed that
the Bank will channel its resources through the CWA as a public sector investment
program in line with the Guidelines for Bank Group Operations for Using SWAp
(2004). This will catalyze the institutionalization of the SWAp for the water sector in
Ethiopia and enhance the effectiveness of the Bank’s support.
7
2.2.5. The implementation of the Bank’s support for the budding SWAp will call for
continuous engagement in sector dialogue and technical assistance so as to progressively help
to strengthen the national fiduciary and technical capacities towards a fully-fledged SWAp.
The Bank will therefore be positioned to flexibly provide the necessary human and financial
support, in partnership with other partners.
2.3. Program Type
The funding instrument for the proposed intervention is sector investment lending that
is fully aligned with the OWNP under the SWAp framework. The support will use existing
GoE structures and implementation arrangements (see section 4.1). The establishment of a
robust SWAp requires strong national systems and processes which take time and resources to
develop. Thus, while ADF resources will support the sector through the CWA, RWSSI-TF
resources will be managed outside the CWA towards strengthening the enabling environment
and governance of the sector and addressing the proposed Fiduciary Risk Mitigation Plan
measures.
2.4. Program Cost and Financing Arrangements
2.4.1. ADF loan resources will support the program through CWA. By June 2014, committed
resources for the CWA amounted to UA 284.85 million (USD 440.78 million) from AfDB,
DFID, UNICEF and WB. The GoE has committed to financing about 52% of the estimated
OWNP cost of about US$ 2.4 billion part of which will be through direct contribution of at
least 10% towards the activities funded by the CWA. The GoE financing will be committed at
the regional and woreda levels from the block grant and other sources of funding. This will be
monitored through regional bureaus’ work plans and OWNP progress reports. RWSSI-TF grant
will finance activities aimed at improving efficiency, effectiveness and sustainability of the
rural water supply and sanitation sub-sector and will not be channeled through the CWA.
2.4.2. Tables 3 to 6 present the financing plan for activities to be funded by the CWA
resources, corresponding counterpart contributions and RWSSI-TF funded activities (see
details in Technical Annex B2). The TF will support Sector Governance and Capacity
Development component. It is noted that the WB financing has already been approved and
financing plan and activities have been defined. Nonetheless, support through CWA will be
harmonized as part of SWAp process. The activities are extracted from the work plan
developed for the whole OWNP within the limit of committed resources for the CWA as of
June 2014. It is expected that available resources in the CWA will increase over time, as more
donors join the CWA.
8
Table 3 : Indicative Financing Plan for ADF, DFID and UNICEF Resources in the CWA and its Counterpart Contribution (UA million)
Components 2014/15 2015/16 2016/17 2017/18 Total % of total cost
Joint CWA Resources
Rural and Pastoral WASH 17.07 17.03 17.00 16.90 67.99 (105.21) 46.71
Urban WASH 5.33 9.98 6.45 1.79 23.55 (36.44) 16.18
Institutional WASH 11.58 11.58 11.58 5.07 39.80 (61.59) 27.34
Sector Governance & Capacity
Building 4.78 4.78 2.46 2.20 14.21 (21.99) 9.77
Total Base Cost 38.75 43.36 37.48 25.96 145.55 (225.23)
Physical Contingencies (7%) 3.08 3.45 2.98 2.07 11.58 (17.92)
Price Contingencies (5%) 2.20 2.46 2.13 1.48 8.27 (12.80)
Total Cost 44.03 49.28 42.59 29.50 165.40 (255.94)
ADF Resources
Rural and Pastoral WASH 10.00 10.00 7.36 2.06 29.42 45.53 55.73
Institutional WASH 5.86 5.86 4.31 1.21 17.22 26.65 32.62
Sector Governance & Capacity
Building
2.09 2.09 1.54 0.43 6.15 9.52 11.62
Total Base Cost 17.95 17.95 13.20 3.70 52.80 81.70
Physical Contingencies (7%) 1.43 1.43 1.05 0.29 4.20 6.50
Price Contingencies (5%) 1.02 1.02 0.750 0.21 3.00 4.64
Total Cost 20.40 20.40 15.00 4.20 60.00 92.84 *Figures in brackets are in USD million
Table 4 : Financing Plan for International Development Association (IDA) Resources
(UA million)
Components Total IDA Counterpart
Funding
IDA
Financing
Rural Water Supply, Sanitation and Hygiene 70.63 (109.3) 64.17 6.46 91%
Urban Water Supply, Sanitation and Hygiene 60.10 (93.0) 50.21 9.89 84%
Program Management Monitoring and Evaluation
and TA 6.66 (10.3) 6.07 0.58 91%
Total Base Cost 137.39 (212.6) 120.46 16.93 88%
Contingency 13.70 (21.2) 12.02 1.68 88%
Total Cost 151.09 (233.8) 132.48 18.61 88% * International Development Association Project Appraisal Document: Water Supply, Sanitation and Hygiene Project, February 2014
**Figures in brackets are in USD million
Table 5 : OWNP - Categories of Expenditures for the ADF Resources (in UA million)
Categories Total % of ADF
Resources
Works 39.44 (61.03)* 74.7
Services 13.36 (20.67) 25.3
Total Base Cost 52.80 (81.70)
Physical Contingency (7%) 4.20 (6.50)
Price Contingencies (5%) 3.00 (4.64)
Total Cost 60.00 (92.84)
*Figures in brackets are in USD million
9
Table 6 : Indicative Financing Categories for RWSSI-TF (Euro million)
Categories Total % of
total cost
Goods 0.71 (0.98) 10.51
Services 6.01 (8.30) 89.49
Total Base Cost 6.71 (9.28)
Physical Contingencies (7%) 0.53 (0.74)
Price Contingencies (5%) 0.38 (0.53)
Total Cost 7.63 (10.54) *Figures in brackets are in USD million
Table 7 : Sources of Financing (UA million) by March 2014
Source Amount % of CWA
UA USD
GoE/Community 35.15 54.39 11.11
CWA
ADF 60.00 92.84 18.96
DFID 86.28 133.50 27.26
UNICEF 2.58 4.00 0.82
WB 132.48 205.00 41.86
RWSSI-TF 6.81 10.54
Total 323.30 500.28
2.4.3. The AfDB Group contribution to the Program for the period 2014/15 to 2017/18 is UA
66.81 million, comprising of an ADF loan UA 60 million and a grant of Euro 7.63 million
(equivalent to UA 6.81 million) from the RWSSI-TF. ADF resources accounts for about
20.66% of the total CWA commitment (including counterpart funding) as of June 2014.
2.5. Program’s Target Area and Population
The OWNP is a national program with country-wide coverage focusing on agrarian and
pastoral rural, peri-urban and urban populations. The selection of the target areas and
communities was done as part of the development process for the OWNP and will be updated
as part of the annual workplan and budget preparation activities. The main Program-related
outcomes include increased access to safe water supply and improved sanitation along with
improved sustainability of WASH facilities which will be tracked through gender-sensitive
indicators. The Program will also have a distinct productivity and educational benefit for
women and girls due to time gained through reduced distance to be travelled for water
collection. The O&M mechanisms also aim and strengthening the capacities of women to
manage water services as a business (micro-enterprises) and to take greater leadership in the
management of community water facilities. Skills training and enhancement in vocational
colleges and training institutes will target youth, including girls. Complementarities in areas
covered by the Drought Resilience and Sustainable Livelihood Program (DRSLP) will enhance
the achievement of WASH benefits for the target pastoral communities (see list of Woredas in
Technical Annex C4).
2.6. Participatory Process for Program Identification, Design and
Implementation
The OWNP design process was characterized by extensive, informed and in-depth
consultations with all levels of stakeholders. A series of federal and regional level consultative
workshops involving sector ministries, national and officials of regional governments, donors
and civil society organizations were instrumental in securing Program input, prioritizing the
program and securing buy-in from these stakeholders. Rapid participatory consultations with
community level stakeholders were done in 11 districts of five regions mainly through the
10
Social Assessment process, during the development of Environmental and Social Management
Framework and AfDB’s Preparation Mission undertaken in December 2013. In these
consultations, Woreda WASH Teams (WWT), WASHCO members, poor men and women,
religious and clan leaders, the youth and people living with disabilities were involved,
including those from both pastoralist and agrarian communities. Stakeholder engagement and
coordination arrangements during implementation of the OWNP are specified in the Program
Operation Manual (POM).
2.7. Bank Group Experience and Lessons Reflected in Program Design
The Bank’s portfolio in Ethiopia consists of 17 on-going operations amounting to UA
1,123.1 million. The overall cumulative disbursement rate is 47.3% (see Appendix II). In the
water sector, the Harar Water Supply Project was closed in 2011with a Project Completion
Report (PCR) rating of 3 while the Rural Water Supply and Sanitation Program (RWSSP)
closed on 30 April 2014 and the PCR is pending. Lessons from previous Bank-financed
interventions in the water sector in the region and from assessments of SWAps (and Program
Based Operations (PBOs)) elsewhere have been considered in the design of the OWNP (see
details in Technical Annex B1). For example, experiences were drawn from the RWSSP which
contributed to increased access to water supply and sanitation services for rural populations in
about 125 woredas, notably on its support for the establishment of a sustainable service
provision framework across all levels. The 2011 OPEV Country Case Study for Tanzania on
Evaluation of Policy Based Operations in AfDB, 1999-2009 noted that there was need for the
Bank to prioritize and invest in analytical work to give credibility to engagement in policy
dialogue, actively engage in policy dialogue, ensure sufficient specialist staff, and focus on
results (beyond disbursement rates). These findings have guided the design of this Program.
Additional key lessons that were considered are summarized below:
i) It is important to ensure adequate inclusion and stakeholder participation, including
other involved sectors in the planning and implementation of projects, for sustainability.
A Memorandum of Understanding (MoU) exists between four key ministries to guide
the implementation of WASH at all levels of Government and the preparation of the
OWNP embraced a wide range of stakeholders, as is planned for the implementation
(see section 2.6).
ii) There is need for adequate integration of both water and sanitation components in
WASH projects, not only during the design of the program and preparation of the
Project Appraisal Report (PAR) but also during implementation, so as to optimize the
benefits of WASH interventions. For OWNP and in the PAR, both water supply and
sanitation inputs and results are clearly spelt out; and they will be independently
monitored and reported against in the results measurement framework.
iii) Decentralized levels of government can efficiently implement rural WASH programs
but they need continuous and effective monitoring and capacity building from the
central ministry/sector agencies. The Sector Governance and Capacity Development
component under OWNP and the areas that are planned for support by the RWSSI-TF
grant resources, including the proposed Post-Construction Support Units, will inculcate
this lesson into the Program.
iv) It is important to build systems and capacity to enable data collection, processing
and database maintenance at district level as the building blocks for effective
planning, targeting, monitoring and evaluation and for ensuring value for money of
WASH interventions. This is even more critical for programs financed with budget
support. Under OWNP, strengthening and sustaining sector M&E capacity will be
directly supported by the Bank and other partners.
11
v) Focus on the capacity of domestic actors. Successful SWAps are not focusing on the
policy, the budget, the results and the monitoring – but on the capacity of domestic
actors to agree on and commit to policy, the capacity to manage finances, the capacity
to continue to produce results and the capacity to collect and use data. The importance
of sector dialogue, facilitation of the sector stakeholders to learn-by-doing and creation
of the platform for sharing of results and lessons, in addition to strengthening the MSF,
have been inbuilt into the OWNP and the Bank’s support. These will be complemented
by activities under the Sector Governance and Capacity Development Component, and
PBS III (Appendix II).
vi) Rural WASH sustainability calls for demand-responsive approaches and meaningful
user-participation/ownership of facilities. Moreover, sustainable sanitation
improvements require concerted awareness-raising and community support. The role
of Civil Society Organizations (CSOs) and Community Based Organizations (CBOs)
will be fundamental.
2.8. Program’s Performance Indicators
2.8.1 The key indicators for monitoring the achievement of the Program’s outcomes were
identified in the OWNP Document (2013) and reflected in the POM. These indicators include
the following which also address the Bank’s Core Sector Indicators (CSIs):
i) Outcome Indicators: population with access to WASH facilities; functionality of water
facilities; geographic equity; number of ODF kebeles; and evidence-based decision-
making (or using analyzed monitoring data to inform policy).
ii) Output Indicators: number of WASH facilities constructed and rehabilitated; number
of WASHCO with legal status; preparation of OWNP progress reports and annual work
plan; number of staff trained in relevant skills including M&E; and O&M unit and
supply chain outlets established.
2.8.2 To ensure adequate inclusion of gender issues, gender-segregated data will be collected
where appropriate. The M&E framework is flexible to reflect needs that may arise from sector
dialogue/discussion as well as to accommodate new indicators defined in ongoing post
Millennium Development Goal (MDG) discussions.
2.8.3 The NWI conducted in 2011 will provide baseline information for the Program. WASH
M&E, which is still at nascent stage in Ethiopia, will be rolled-out and strengthened as part of
the Program through various activities committed by GoE and DPs. The National WASH
Coordination Office (NWCO) will prepare semi-annual and annual OWNP progress reports
presenting the performance of the sector. The reports will be discussed by all stakeholders at
MSFs to improve program implementation and to inform the development of subsequent
annual work plans and sector undertakings.
III - PROGRAM FEASIBILITY
3.1 Economic and Financial Performance
Key economic and financial figures
Economic Net Present Value (ENPV) (10%) USD 413 million
Economic Internal Rate of Return EIRR) (base case) 23.04%
NB: detailed assumptions and calculations are available in Technical Annex B7.
12
3.1.1 The key assumptions for the calculation of the EIRR of the Program are provided in
Annex B7. The economic analysis assesses the wider beneficial impact of the proposed
interventions and also highlights the broader strategic socio-economic and environmental
impacts associated with the Program interventions in terms of employment generation, public
health and the reduction in incidence of waterborne and water-related diseases, reductions in
mortality rates and fulfillment of national development plans. Poverty reduction is one of the
major objectives of the GTP in addressing the MDGs.
3.1.2 The assumptions utilize the findings of the World Health Organization (WHO)
Evaluation of Costs and Benefits of Water and Sanitation improvements assessment at the
Global Level. These findings indicate the benefits arising from reduced costs of health
interventions due to improved water and sanitation services. For the treatment of diarrhea,
health service unit costs are taken from WHO regional unit cost databases. The following broad
parameters constitute the variables for the assessment; (i) time savings related to water
collection or accessing sanitary facilities; (ii) patient health treatment and travel costs saved;
and (iii) value of less adults, infants and students falling sick with diarrhea.
3.2 Environmental and Social Impacts
Environment
3.2.1 The Program was validated as a category 2 by ORQR on 24 February 2014. The
classification was based on the fact that the Bank’s intervention entails rural water schemes
with very localized and temporal environment and social negative impacts. The strategic
environment and social assessment was conducted and environment and social management
framework compiled in October 2013. The summary was posted on the AfDB’s website on 16
May 2014. The Program’s impacts will mostly be construction impacts with very little
operation and post operation effects. Main environmental impacts will pertain to site clearances
and the associated impacts of exotic species overtaking indigenous vegetation; soil erosion due
to loose top soil; noise and dust pollution may result in nuisance and if not controlled may pose
health risks as well; ground water contamination through well during construction or operation,
waste material extracted from the wells or drilling cuttings and drilling mud, if not disposed of
or reclaimed properly; reduced water flow downstream; temporary increase in the suspended
solids content of water and impact on users downstream during construction; for springs in
mountainous areas (Wurch/High Dega and Dega areas), potential for impacts to fragile
ecosystems and wetlands. All the mentioned impacts shall be mitigated as per the sub-Programs
Environmental and Social Management Plan (ESMP) and in line with the current
Environmental and Social Management Framework (ESMF).
3.2.2 Site clearance will be kept to the minimum and where there is potential for dust, there
will be watering, top soil will be stored for reuse to minimize invasive species, soil erosion will
be avoided through appropriate stacking of excavated material and avoiding steep slopes;
while materials will be stored outside of drainage areas to avoid sedimentation of water courses.
Construction noise will be minimized through use of fairly new and well serviced equipment
and construction will happen during the day only. Noise disturbance and injuries to the public
will be avoided by informing the affected people prior to commencement of works and agreeing
on hours of operation. Assessment of spring and ecosystem vulnerability will be conducted
prior to any development.
13
Climate Change
3.2.3 Climate change in Ethiopia is expected to lead to a range of outputs varying from a
reduction in rainfall of 25% to an increase of 30%. Surface flows in rivers and streams are
likely to have greater variation, with lower base-flows in the dry season, potentially resulting
in water shortages for domestic, industrial and agricultural use. Groundwater reserves, which
are an important source of water for many rural communities, may be reduced as a result of
decreased rainfall intensity. Access to water and sanitation as entailed in this Program will be
essential in reducing climate vulnerability because it shifts people from using exposed surface
water sources to more resilient sources. Borehole depths and siting of wells will take into
account both water quality and quantity.
3.2.4 Self-supply, which is part of the Program, could be problematic because it is based on
the most appropriate technology according to the available resource, so there are limited
options for changing technologies. Therefore, additional approaches and interventions will be
required to supplement self-supply. The Program will look at improving local water storage
facilities (water ponds) and rainwater harvesting to try and buffer against climate impacts.
Demand management is also essential in dealing with climate change impacts hence the
Program will support participatory water resource management, where communities shall be
empowered to monitor and manage their own water sources (water-shed management) so that
they can manage their demand and increase water use efficiency. The proposed development
of climate risk screening guidelines for the WWTs under the OWNP may also be useful in
providing more in-depth understanding of the nature of climate risk and therefore suitable
federal policy responses.
Gender
3.2.5 Like many other African countries, women particularly in the rural areas of Ethiopia
carry a dis-proportionate workload as compared to men. They undertake approximately 60%
of the agricultural workload, and perform 100% of all house work including food processing
(gathering, cooking, feeding the family and washing of dishes); fuel wood gathering; fetching
of water; grain grinding/pounding and looking after the sick members of the family. This heavy
workload is undoubtedly lessened with the provision of accessible water and sanitation
facilities.
3.2.6 The Program responds to both the practical and strategic gender needs of women and
girls in Ethiopia by ensuring they benefit from, and participate (including voice and
accountability) in, the planning and delivery of WASH services. Ethiopia’s adult women are
said to be ten times more likely than adult men to fetch water and it is a daily time demand;
thus increased access to safe and affordable water is expected to have a major welfare and
productivity impact on women’s lives in the beneficiary communities. By contributing to
reduced child morbidity due to increased use of clean water from the current 101/1,000 to the
target of 68/1000, the Program will have positive implications for women; the traditional
caretakers of the sick. The negative effect on the performance of girls due to absenteeism from
school, because of time spent collecting water and during their menstrual cycle, will be greatly
reduced by the provision of appropriate sanitation facilities. The capacity of women to
participate in the design and implementation of WASH Programs will be enhanced through the
Program components which address institutional and community capacity strengthening,
including technical skills training and set up of supply chain enterprises. The Program’s support
for women’s increased role in WASHCOs (at least 30% in leadership will be women) will help
to create an enabling environment for their enhanced involvement in community level WASH
and related decision-making processes. The gender impact of the Program will be tracked
through gender sensitive indicators during monitoring as well as a gender impact assessment
14
towards the end of the Program. It is envisaged that the Program will have no negative impact
on gender.
Social
3.2.7 Even though Ethiopia’s Human Development Index (HDI) increased by 44% from
0.275 in 2000 to 0.396 in 2012 (an annual increase of about 3.1%), the country was ranked 172
out of 184 countries. The poverty head count ratio (number of people living below $1.25 a day)
is 29.2%, from about 40% in 2000.
3.2.8 In line with the inclusive growth objective of the TYS of the Bank, the Program is
designed to reduce regional and social disparities in access to safe drinking water and improved
sanitation currently at 48.9% and 60.4% (NWI national data, 2011) respectively so that under-
served areas, communities and households receive at least a basic level of water supply and
sanitation services. The Program will contribute to improved child health and reduction in
productivity losses caused by human morbidity. Through the reduction of distance to and time
spent on drinking water collection, the Program is expected to free up time that can be used for
productive activities and thereby enhance the empowerment of women. Reduced domestic
work load and introduction of girl-friendly WASH services at schools is also expected to
contribute to increased school enrollment rates of girls, currently at 83.5% and 89.5% for boys.
3.2.9 With the current estimate that only 85% of health facilities and 33% of schools have
improved latrine facilities, and only 31% of schools and 32% of health facilities have access to
improved water supply; the Program will increase coverage and have a positive impact. In the
short term, the Program will provide employment opportunities at both construction and
operation phases and supports the strengthening of private suppliers, contractors and
consultants in the sector. At least 11 women and youth-led enterprises for the provision of
WASH products and services will be established. The planned support to technical training
institutions and the focus on building skilled sector workforce; training about 10,000 woreda
/zonal/regional staff will have a positive role in the long-term capacity strengthening of the
sector. Self-employment of individual trainees, job creation capacity of the economy will be
enhanced and contribute to achieving the 22.2% target of Ethiopians below the poverty line.
3.2.10 Potential negative social impacts include conflicts between traditional and new users;
downstream and upstream users of water sources; and, a limited risk of water -related diseases
from inadequate drainage around water points. The potential of the Program to cause increased
incidence of HIV/AIDS in the target rural districts is considered limited as the level of
construction activities envisaged per locality is not expected to lead to a huge influx of labour.
The impact mitigation measures include early and mandatory consultations with the affected
communities and streamlined and capacitated institutional response from MoWIE.
Involuntary Resettlement
3.2.11 The Program is expected to entail limited land acquisition, particularly in the rural and
institutional components, and therefore have overall insignificant displacement impact on
assets, social infrastructure and livelihoods. A resettlement framework has been prepared
outlining the resettlement processes and procedures to be followed during the development of
the sub-projects. The resettlement process and procedures including grievance-redress
mechanisms were covered during the community level consultations.
15
IV– IMPLEMENTATION
4.1 Implementation Arrangements
Institutional Arrangements
4.1.1 The implementation arrangements of the OWNP are directed by the POM, which
provides guidelines on all aspects from the institutional arrangements, staffing levels to the
flow of funds. More details on implementation arrangements are provided in Annex B3.
4.1.2 The borrower is the GoE and the program will be implemented through the established
government institutional structures, using institutions that are already in place and operational.
The Ministry of Finance and Economic Development (MoFED) will be the loan and grant
signatory and will be responsible for reporting and communication with the DPs, including the
Bank, on financial matters. Implementation of the Program will be at all levels of the
government structure. The highest governing body for Program implementation at Federal
level will be the National WaSH Steering Committee (NWSC), whose members include
Ministers and State Ministers from MoWIE, Health (MoH), Education (MoE) and MoFED.
4.1.3 The executing agency of the Program is the MoWIE. It is the sector ministry responsible
for Program coordination and implementation and it hosts the NWCO. The NWCO is
responsible for overall Program planning, coordination and overseeing implementation at
federal level. Similar institutional arrangements have been replicated at Regional, Woreda and
town level. In addition to the Woreda WASH Steering Committee, the Program will be
implemented through the WWTs which will bring together the various WASH sectors like
Health, Education, Women’s Affairs among other stakeholders. The WWT will also draw
additional capacity support from WASH Program Management Units at the regional level to
be established in line with the POM.
4.1.4 The MoWIE will also be directly responsible for the implementation of activities that
will be financed by the RWSSI-TF.
Procurement Arrangements
Procurements financed by ADF Resources
4.1.5 The program is financed by multiple donors, including mainly the ADF, DFID, IDA
and UNICEF which call for the use of the same procurement rules to facilitate the
implementation of the program as well as reduce transaction costs. Accordingly, donors have
agreed to use the procurement guidelines of the World Bank for procurement of goods and
works under ICB and procurement of consulting services under the program.
4.1.6 Subject to a waiver from the Board of Directors in line with Clause 1.17(b) of the
Bank’s Procurement Rules and Procedures, Procurement of Goods, Works, and Consultancy
& Non-Consultancy Services under the OWNP will be carried out in accordance with the
World Bank’s rules and procedures: Guidelines: Procurement of Goods, Works, and Non-
Consulting Services under IBRD Loans and IDA Credits & Grants, issued by the World Bank
in January 2011, and Guidelines: Selection and Employment of Consultants under IBRD Loans
& IDA Credits & Grants issued by World Bank in January 2011.
4.1.7 The World Bank will provide the overall oversight responsibilities with respect to the
Fiduciary functions under the Program on behalf of the Development Partners providing
financing to the Program through the CWA as agreed under the POM.
16
RWSSI Trust Fund Resources
4.1.8 In line with 2.3, 2.4 and Technical Annex C2, RWSSI-TF resources will be used for
Goods and Services. Accordingly, for ICB procurement contracts, the Bank’s Rules and
Procedures for Procurement of Goods and Works, May 2008 Edition, Revised July 2012 will
be followed using the relevant Bank Standard Bidding Documents, and the provisions
stipulated in the Financing Agreement as amended from time to time. For procurements of
goods and non-Consultancy Services lower than ICB threshold will follow the procedures
stipulated under the GoE’s Procurement and Property Administration Proclamation No.
649/2009 using the National Standard Bidding Documents, and the provisions stipulated in the
Financing Agreement as amended from time to time. Acquisition of all Consultancy Services
will be conducted in accordance with the Bank’s Rules and Procedures for the Use of
Consultants, May 2008 Edition, Revised July 2012 using the relevant Standard Request for
Proposals, and the provisions stipulated in the Financing Agreement as amended from time to
time. The MoWIE is accountable to handle and follow up procurements envisaged under
RWSSI-TF resources and it has adequate capacity to carry out the responsibility. The
experience from RWSSP and additional TA support will help to ensure effective delivery.
Details of the procurement contracts and review procedures are elaborated in the Technical
Annex B5 of the PAR.
Financial Management and Disbursement Arrangements
4.1.9 Implementation of the Program will rely on the existing government structures. The
relevant country financial law and regulations will be followed in initiating, processing,
recording, reporting, and auditing the financial transactions of the Program. The Financial
Management System of MoFED is adequate and capable of recording and reporting the
financial transactions of the Program and delivering financial reports on timely basis. A
specifically designed automated financial reporting system, IBEX, is used to meet the financial
management needs of MoFED, BoFED and WoFED for the management of the Program
resources.
4.1.10 MoFED has adequate finance staff at federal level to carry out the financial
management responsibilities of the Program. The capacity of the regions and woredas may be
strengthened by recruiting additional finance staff using the Program resources, as appropriate.
The overall Program risk is assessed as High; however, when the recommended mitigation
measures are implemented, it will be Substantial (detailed analysis included in the Technical
Annex B4).
4.1.11 MoWIE will open a EURO Special Account at the National Bank of Ethiopia and
handle the financial transactions of RWSSI-TF. The country financial management systems of
the country will be followed in recording and reporting the financial transactions of the TF.
MoWIE has adequate financial management capacity to manage the financial resources of
RWSSI-TF.
4.1.12 The Program will use the four disbursement methods prescribed in the disbursement
handbook. The Bank’s Disbursement Handbook can be accessed from the Bank’s website. In
addition, the Bank will issue a pre-negotiated Disbursement Letter. MoFED will open special
account in USD for each of the Program participating DPs at the National Bank of Ethiopia. In
addition, MoFED will open a CWA in local currency to transfer money from the special
accounts. Each of the implementing agencies at all levels will open a local currency accounts.
Funds are transferred to Bureaus of Finance and Economic Development (BoFEDs) and Sector
ministries’ from the CWA accounts based on approved budget. BoFEDs in turn transfer to
funds to Woredas and Sector Bureaus according to approved work plan and budget.
Replenishment to the special account will be made on the basis of Interim Financial Reports
17
(IFRs), which will be prepared by MoFED. MoFED will prepare consolidated IFRs every three
months as per the formats agreed with the World Bank.
4.1.13 Disbursement of the RWSSI-TF will be into a Euro denominated special account
managed by the MoWIE. Replenishments will follow the Bank’s disbursement procedures and
will be on the basis of Statement of Expenditures.
4.1.14 The Program audit will be conducted by the Office of the Federal Auditor General
(OFAG) or by independent auditors selected on competitive basis.In line with the POM, the
audit of the Program financial statements will be conducted in accordance with a ToR to be
agreed by the participating DPs and the GoE. The annual audited Program financial statements
together with the auditor’s report and management letter will be submitted to the Bank within
six months after the end of each fiscal year. MoWIE will submit a separate audit report to the
Bank for the RWSSI-TF six months after the end of each fiscal year. An independent auditor
acceptable to the Bank will conduct the audit of the RWSSI-TF as per Bank’s ToR.
4.2 Monitoring
4.2.1. Monitoring of the implementation of activities under OWNP will be done by woreda
and zonal offices, and compiled by the Bureaus of Water Resources at regional level for onward
reporting to NWCO. The latter is responsible for preparation of semi-annual and annual OWNP
progress reports that will be presented and discussed at National WASH Technical Team
(NWTT), JTRs and MSFs. The progress reports will include both physical and financial
achievements. These reports will also be the basis for the annual work plan for the subsequent
year. As such, a robust sector M&E is a prerequisite for SWAp. Information will also ensure
efficient O&M, accountability and sustainability. Woreda staff are trained to collect relevant
indicators from kebeles in line with the template prepared, under the auspices of the Central
Statistics Agency (CSA), for the NWI. In March 2014, a NWI survey using the mobile phone
system was underway in Somali Region which, due to access challenges, was not included in
the initial phase (2011).
4.2.2. A Management Information System (MIS) for WASH has been developed, but it
currently covers only 300 woredas, out of about 1000. Nine (9) servers have been acquired,
and procurement of an additional 500 PCs using the national budget is underway. Only 58
woredas have so far been trained on use of the system. Regular update of NWI data has not
been done due to budgetary constraints. Data collection at woreda level is a challenge mainly
due to accessibility to remote areas. The government intends to adopt mobile phone data
transfer system to improve the efficiency of the process. This, together with the full rollout of
the WASH MIS, will be the basic structure for the sector M&E and will significantly reduce
resources and capacity challenges. With resources from RWSSI-TF, the Program will support
strengthening of WASH M&E and annual sector performance reports.
4.2.3. For household and institutional sanitation and hygiene information, health extension
workers are tasked to regularly update and report to woredas. Updated data is stored in Health
Management Information System (HMIS). The system links governments at all levels,
including the MoH at federal level. Information on school WASH is captured under the MoE
MIS (EMIS).
4.2.4. For effective implementation of OWNP and to deliver sustainable services, the Program
will allow for adequate staffing, funding and processes to ensure the following, as a minimum:
infrastructure supervision /sustainability checks and follow-up actions at all levels; two joint
supervision missions and joint technical reviews; MSFs and follow up actions; technical audits
of the Program interventions and of the capacity of the implementing partners; as well as
periodic fiscal and financial progress reports from all levels.
18
4.2.5. The environmental and social compliance of sub-projects under the Program will be
monitored during implementation as outlined herein and detailed in the POM. As agreed by
CWA partners, the safeguards oversight will be provided by the WB.
4.3 Governance
4.3.1. Decentralization lies at the center of Ethiopia’s efforts to strengthen democratic
governance and improve basic service delivery. The main instrument of fiscal decentralization
is the woreda block grant which makes resources available to woredas through transfers from
regions. The woredas are entrusted with prioritizing and allocating resources, with about 80%
going to the pro-poor sectors namely: water, education, health, agriculture and roads (see
Technical Annex A). However, in practice, woredas are not able to fully exercise budgetary
discretion since the transfers are deemed inadequate. Although programs like the PBS are
supposed to alleviate this challenge, the OWNP will, through its coordination mechanisms, use
the resources in the CWA to leverage more woreda funds to the water sector.
4.3.2. The participatory planning and allocation process for the CWA resources, and other
donor resources, at the micro level will foster greater equity and efficiency in resource
allocation. Another major constraint to effective governance and fiduciary systems for
improved decentralized basic services is the limited capacity and high staff turnover especially
at the woreda level. Discussions with MoFED have provided assurance that a minimum staffing
level for the key functions as described in the POM will be assured.
4.4 Sustainability
4.4.1. The OWNP is a government-led Program, founded on a sound policy, legal and
strategic framework which includes the National Water Resource Management Policy (1998);
Water Sector Strategy (2000); the Universal Water and Sanitation Access Plan (2005); CRGE
Strategy (2011); and the MoU by the four WASH ministries (2012). The Program was adopted
in 2013 as the new national strategy and action plan for achieving WASH GTP targets (of
98.5% access by 2015), and beyond. Government’s commitment to the OWNP is also
demonstrated by their assurance to finance over 50% of the budget; and their efforts in
establishing apt implementation mechanisms including the POM, the Fiduciary Risk
Mitigation Plan, and sector coordination mechanisms to foster sustainability through
stakeholder participation and ownership of the Program (see Technical Annex A1.6).
4.4.2. Other factors that are critical to the sustainability of the Program’s benefits include: (i)
environmental degradation and competing uses for limited water resources especially in the
face of climate change; (ii) technology choice and water quality, notably in the case of self-
supply and in arid areas, as well as in the use of renewable energy-powered systems such as
solar and wind-driven pumps; and, (iii) inadequate capacity and inputs (spares and finances)
for operation and maintenance of services. The Program will address these risks by, among
others: (a) building the capacity of local service providers and communities using experience
from previous projects and CSO’s activities; (b) strengthening and legalizing WASHCOs to
make them more viable and accountable (including better-collection and management of user-
O&M contributions, as well as having access to micro-credits for WASH O&M); (c)
supporting members of the HDA and HEWs who are key in promoting and sustaining
sanitation and hygiene practices among households in communities, and in promoting user-
contributions for O&M costs of water facilities; and, (d) promoting stronger linkages with
watershed management and water conservation interventions to protect sources and
catchments. As mentioned in Section 2.4, the RWSSI-TF resources will support sustainability
by creating and strengthening market-driven supply chains, creating viable women and youth
micro-enterprises for the provision of WASH services and parts; and establishment of 20 post-
construction units at regional level to ensure sustainability of WASH investments.
19
4.5 Risk Management
4.5.1. Risk: Implementation capacity challenges and high staff turnover: there is risk that
government may not be able to maintain qualified and experienced staff for the efficient
implementation of the Program and that the capacity of implementers, especially at the woreda
level may not be sufficient. Mitigation: the Program and other Bank-supported interventions
such as the recently completed RWSSP and the Protecting Basic Services Program have
significant provisions for capacity building of staff at all levels. In addition, Ethiopian Water
Technology Institute (EWTI), Technical and Vocational Training Colleges (TVETCs) and
Health Science Colleges (HSCs) will be supported to offer WASH courses to build the skills
of service providers. Pertinent technical assistance will be provided to enhance GoE’s capacity.
Building capacity remains an ongoing activity and other programs focusing on capacitating
institutions of higher learning will contribute towards mitigating the risk that comes with
shortage of qualified and experienced personnel.
4.5.2. Risk: Inadequate funding and low prioritization of the sector by regions and woredas,
leading to GoE’s failure to honor their budgetary contribution. Given the huge funding
requirements for the Program, failure to secure adequate funding from the government is a risk.
Moreover, there is a risk that regions and woredas do not, or may not be able to, allocate
sufficient funding and human resources to the WASH sector. Mitigation: Strengthening the
SWAp arrangements including joint planning, reporting and review mechanisms will enhance
transparency and efficiency leading to increased confidence for partners to increase support to
the sector, and will motivate federal and local governments to increase their commitment to the
sector. Implementation of the Self-Supply Acceleration Program (SSAP) and CLTSH are
among approaches that will be used to mobilize additional community resources for WASH.
The mid-term review planned for 2016 will help to fine-tune and strengthen the Program.
4.5.3. Risk: Lack of sustained commitment by Donors: inadequate support and commitment
by donors may lead to unavailability of required technical, human and financial resources, and
hence jeopardize the prospects of attaining the goals of the SWAp. Mitigation: strong and
sustained donor coordination (which is a prerequisite for a SWAp) and regular and transparent
dialogue between donors and government will help to minimize the possibility of this risk. The
RWSSI Regional Coordination Committee (RCC) hosted by the Bank will also lobby for
sustained engagement of donors in the water sector.
4.6 Knowledge Management
4.6.1 Implementing the OWNP under a SWAp offers many opportunities for generating,
sharing and disseminating tacit and explicit knowledge for both DPs and national stakeholders
at all levels through sector dialogue, joint reviews and other coordination mechanisms. The
strengthened sector M&E will also provide necessary data for analytical work and shed light
on areas of success and improvements. Moreover, support to tertiary institutions will directly
contribute to increasing the human resources required to generate and use the knowledge. The
capacity building component of the Program will be complemented by other ongoing
interventions like the PBS which also build capacity at the implementing level (woredas).
4.6.2 Some of the knowledge products/sector work expected to emerge from the
implementation of the Program, and which will guide policy dialogue and enhance
implementation mechanisms include:
i) Opportunities and tradeoffs in the use of different implementation models including
Woreda Managed Projects (WMPs), Community Managed Projects (CMPs), Non-
governmental Organization (NGO) Managed Projects and Self-Supply Projects;
20
ii) Business models for viable enterprises for provision of WASH products and
services;
iii) Fiscal and physical value for money audits; funds’ tracking studies;
iv) Sustainable O&M frameworks, including tariff and capacity requirements;
v) A gender impact assessment;
vi) A program completion report and post-implementation evaluation; and,
vii) Sustainable service delivery models for pastoral WASH.
V – LEGAL INSTRUMENTS AND AUTHORITY
5.1 Legal Instruments
The legal instruments used to finance the Program are: (i) an ADF Loan Agreement,
and (ii) a RWSSI Trust Fund Grant Agreement.
5.2 Conditions Associated with Bank’s Intervention
A. Condition Precedent to Entry into Force of the Loan Agreement: The loan agreement
shall enter into force subject to fulfilment by the Borrower of the provisions of section
12.01 of the General Conditions Applicable to Loan Agreements and Guarantee Agreement
of the African Development Fund.
B. Conditions Precedent to Entry into Force of RWSSI Trust Fund Grant Agreement:
The Grant Protocol of Agreement for the RWSSI-TF Grant shall enter into force upon
signature.
C. Conditions Precedent to First Disbursement of the Loan and Grant. The first
disbursement of the loan and grant resources shall be subject to fulfilment of the following
conditions to the satisfaction of the Fund:
i) Evidence of having opened the relevant foreign currency Special Account for
receiving the Loan or the RWSSI Trust Fund Grant at the National Bank of
Ethiopia;
ii) Annual consolidated OWNP work plan approved by the National WASH Steering
Committee;
iii) |Provision by the GoE to the AfDB of copies of signed Financing Agreements, or
equivalent, of the CWA development partners that have already committed to
joining the CWA; and,
iv) Evidence of endorsement of the POM by the GoE and each of the CWA
development partners.
D. Conditions Precedent to Subsequent Disbursements of the Loan and Grant: The
obligations of the Fund to make the second and subsequent disbursements of the Loan and
Grant shall be conditional upon the GoE submitting evidence satisfactory to the Fund of
approval by the National WASH Steering Committee of the annual work plan for each financial
year.
5.3 Undertakings
During the implementation of the Program, the Borrower/Recipient undertakes as
follows:
(i) To comply with all applicable Bank Group policies for environmental and social
safeguards (including resettlement) in relation to specific program sites, once these
21
have been agreed with stakeholders and in accordance with the Program level
ESMF;
(ii) To include in the semi-annual progress reports the status of implementation of
environmental and social aspects for specific program sites;
(iii) Submission, and approval by the WB, of IFRs for the program for each fiscal
quarter within 60 days of the end of the quarter; and,
(iv) Submission of annual audited financial statements and audit report within 6 months
of the end of each fiscal year
5.4 Compliance with Bank Policies
In view of the need to adopt a joint financing modality and harmonized implementation
arrangements, the Program will apply World Bank Rules and Procedures for procurement of
all eligible expenditure as specified in this Appraisal Report and in the POM. The Program
complies with all other applicable Bank policies. These include the IWRM Policy and the Bank
Strategy for 2013-22.
VI – RECOMMENDATION
Management recommends that the Boards of Directors approve: (i) the proposed ADF
loan of UA 60.0 million and RWSSI-TF grant of EUR 7.63 million (UA 6.81 million) to the
Federal Democratic Republic of Ethiopia for the purposes and subject to the conditions
stipulated in this report; (ii) application of the World Bank Rules and Procedures for
procurement of all eligible expenditure; and, (iii) 100% financing of the total program cost in
line with the Bank Group's Policy on Eligible Expenditures.
Appendix I: Ethiopia’s Comparative Socio-Economic Indicators
Indicator Year Ethiopia AfricaDeveloping
Countries
Developed
CountriesCharts
Basic Indicators
Area ('000 Km²) 1,104.3 30,046.4 80,976.0 54,658.4
Total Population (millions) 2013 94.1 1,109.0 5,628.5 1,068.7
Urban Population (% of Total) 2013 17.5 40.2 44.8 77.7
Population Density (per Km²) 2012 76.7 35.4 66.6 23.1
GNI per Capita (US $) 2011 400.0 1,594.2 2,780.3 39,688.1
Labor Force Participation - Total (%) 2013 46.0 37.4 0.0 0.0
Labor Force Participation - Female (%) 2013 47.7 42.5 39.8 43.3
Gender -Related Development Index Value 2007 0.4 0.5 .. 0.9
Human Develop. Index (Rank among 169 countries) 2012 173.0 .. .. ..
Popul. Living Below $ 1 a Day (% of Population) 2011 30.7 .. 25.0 ..
Demographic Indicators
Population Growth Rate - Total (%) 2013 2.6 2.5 1.4 0.7
Population Growth Rate - Urban (%) 2013 4.1 3.4 2.4 1.0
Population < 15 years (%) 2013 42.7 40.9 29.2 17.7
Population >= 65 years (%) 2013 3.4 3.5 6.0 15.3
Dependency Ratio (%) 2013 75.4 77.3 52.8 ..
Sex Ratio (per 100 female) 2013 100.1 100.0 934.9 948.3
Female Population 15-49 years (% of total population) 2013 23.7 24.0 53.3 47.2
Life Expectancy at Birth - Total (years) 2013 63.6 59.2 65.7 79.8
Life Expectancy at Birth - Female (years) 2013 65.3 60.3 68.9 82.7
Crude Birth Rate (per 1,000) 2013 33.0 35.3 21.5 12.0
Crude Death Rate (per 1,000) 2013 7.6 10.4 8.2 8.3
Infant Mortality Rate (per 1,000) 2013 48.7 61.9 53.1 5.8
Child Mortality Rate (per 1,000) 2013 71.8 97.4 51.4 6.3
Total Fertility Rate (per woman) 2013 4.5 4.6 2.7 1.8
Maternal Mortality Rate (per 100,000) 2010 350.0 415.3 440.0 10.0
Women Using Contraception (%) 2013 32.4 31.7 61.0 75.0
Health & Nutrition Indicators
Physicians (per 100,000 people) 2010 2.2 52.6 77.0 287.0
Nurses (per 100,000 people)* 2007 23.6 .. 98.0 782.0
Births attended by Trained Health Personnel (%) 2011 10.0 .. 39.0 99.3
Access to Safe Water (% of Population) 2011 49.0 67.8 84.0 99.6
Access to Health Services (% of Population) 2000 55.0 65.2 80.0 100.0
Access to Sanitation (% of Population) 2011 20.7 40.5 54.6 99.8
Percent. of Adults (aged 15-49) Living with HIV/AIDS 2011 1.4 4.7 161.9 14.1
Incidence of Tuberculosis (per 100,000) 2011 258.0 235.8 .. ..
Child Immunization Against Tuberculosis (%) 2011 69.0 81.2 89.0 99.0
Child Immunization Against Measles (%) 2011 57.0 76.3 76.0 92.6
Underweight Children (% of children under 5 years) 2011 29.2 .. 27.0 0.1
Daily Calorie Supply per Capita 2009 2,097.0 2,564.7 2,675.2 3,284.7
Public Expenditure on Health (as % of GDP) 2011 2.7 5.9 4.0 6.9
Education Indicators
Gross Enrolment Ratio (%) .. .. .. ..
Primary School - Total 2011 105.6 101.8 106.0 101.5
Primary School - Female 2011 100.5 97.8 104.6 101.2
Secondary School - Total 2011 37.6 45.4 62.3 100.3
Secondary School - Female 2011 34.9 41.9 60.7 100.0
Primary School Female Teaching Staff (% of Total) 2011 37.2 43.7 .. ..
Adult Literacy Rate - Total (%) 2007 39.0 .. 19.0 ..
Adult Literacy Rate - Male (%) 2007 28.9 .. .. ..
Adult Literacy Rate - Female (%) 2007 49.1 .. .. ..
Percentage of GDP Spent on Education 2010 4.7 5.3 .. 5.4
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2011 14.6 8.4 9.9 11.6
Annual Rate of Deforestation (%) 2000 0.8 0.6 0.4 -0.2
Per Capita CO2 Emissions (metric tons) 2011 0.1 1.1 .. ..
Last update: March 2014Sources : ADB Statistics Department Databases; World Bank: World Development Indicators
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
0
500
1000
1500
2000
2010
2011
GNI per Capita (US $)
Ethiopia
2.35
2.4
2.45
2.5
2.55
2.6
2.65
201
0
201
1
201
2
201
3
Population Growth Rate - Total (%)
Ethiopia Africa
0
10
20
30
40
50
60
70
80
201
0
201
1
Access to Safe Water (% of Population)
Ethiopia Africa
94
95
96
97
98
99
100
101
2010
2011
Secondary School - Total
Ethiopia Africa
Appendix II: Bank Group Portfolio in Ethiopia
# Project Source Approval
Date
Effective
Date
Closing
Date
Loan/Grant
Amount (UA)
Cumm.
Disb. Ratio IP DO PFI Status Age
AGRICULTURE SECTOR
1 Agriculture Sector Support Project ADF LOAN 5-Nov-03 21-Mar-05 31-Dec-13 21,240,000 72.76% 2.54 3 NON-PP/ PPP 10.2
-ditto- ADF GRANT 5-Nov-03 21-Mar-05 31-Dec-13 17,761,200 83.21% 2.54 3 NON-PP/PPP 10.2
2
Creation of Sustainable Tse tse and
Trypanosomiasis-free areas in Ethiopia ADF LOAN 8-Dec-04 23-Jan-07 31-Jun-14 9,550,000 91.59% 2.25 3 NON-PP/ PPP 9.1
Creation of Sustainable Tse tse and
Trypanosomiasis-Free Areas in East and West
Africa: - Ethiopia component
ADF GRANT 8-Dec-04 23-Jan-07 31-Jun-14 240,000 90.87% 2.25 3 NON-PP/ PPP 9.1
3 Drought Resilience and Sustainable livelihood ADF LOAN 19-Dec-12 15-Jul-13 30-Jun-17 30,000,000 0.00% NR NR NON-PP/NON PPP 1.0
Sub-total Agriculture 78,791,200
TRANSPORT SECTOR
4 Jimma-Mizan Road Project ADF LOAN 13-Dec-06 3-Oct-07 31-Dec-14 65,000,000 69.01% 2.46 3 NON-PP/NON PPP 7.1
5 Mombassa-Nairobi-Addis Road Corridor -
Ageremariam -Yabelo Road Project (Phase II) ADF LOAN 1-Jul-09 6-Apr-11 31-Dec-15 85,000,000 43.46% 2.77 3 NON-PP/NON PPP 4.5
6 Mombassa-Nairobi- Addis Road Corridor-
Hawassa-Ageremariam Road Project ( Phase III) ADF LOAN 30-Nov-11 1-Apr-12 31-Oct-17 105,000,000 18.40% 3 3 NON-PP/NON PPP 2.0
7 Bedele-Metu Road Upgrading ADF LOAN 30-Nov-11 1-Apr-12 31-Dec-16 41,060,000 23.02% 3 3 NON-PP/NON PPP 2.1
8
Modjo- Hawassa Highway Road Project Phase I
ADF LOAN 6-Nov-13 - 31-Dec-20 84,080,000 - NR NR NON-PP/NON PPP 0.1
ADF GRANT 6-Nov-13 - 31-Dec-20 1,630,000 - NR NR NON-PP/NON PPP 0.1
Sub-total Transport 381,770,000
PUBLIC UTILITY
9 Rural Electrification II Project ADF LOAN 20-Dec-06 2-Nov-08 31-Aug-15 87,200,000 70.87% 2.73 2.75 NON-PP/NON PPP 7.0
10 Electric Transmission Systems Improvement
Project
ADF LOAN 6-Dec-10 19-Aug-11 31-Dec-15 93,750,000 67.67% 2.86 3 NON-PP/NON PPP 3.0
ADF GRANT 6-Dec-10 19-Aug-11 31-Dec-15 58,000,000 70.14% 2.86 3 NON-PP/NON PPP 3.0
11 Ethiopia-Kenya Electric Highway Project ADF LOAN 27-Aug-12 27-May-13 31-Dec-17 150,000,000 0.00% NR NR NON-PP/NON PPP 1.2
12 Rural Water Supply and Sanitation Project ADF GRANT 21-Dec-05 1-Sep-06 31-Dec-13 43,610,000 99.96% 2.57 2.75 NON-PP/NON PPP 8.1
Sub-total Public Utility 432,560,000
MULTI-SECTOR
13 PBS III ADF LOAN 18-Jul-12 18-Dec-12 31-Jul-15 166,000,000 66.87% 3.00 3.00 NON-PP/NON PPP
Subtotal loan Multi sector 166,000,000
PUBLIC SECTOR GRAND TOTAL 1,059,121,200
OTHER OPERATIONS
14 Derba-MIDROC CEMENT FACTORY AfDB LOAN 16-Apr-08 23-Ju-08 31-Dec-11 35,885,557.69 100% NR NR NON-PP/NON PPP 5.7
15 Ethiopian Air Lines AfDB LOAN 23-Mar-11 23-May-12 31-Dec-17 25,231,307.76 97% 3.00 2.60 NON-PP/NON PPP 2.7
16 Solar &Wind for Water AWF 12-Jan-09 27-Apr-10 1-Mar-14 1,767,104.33 59.00% 2.27 2.67 NON-PP/NON PPP 5.0
17 Assela Wind Farm SREP PPG CIF 28-Jun-12 20-Sep-12 31-Dec-14 1,109,189.97 0.00% 2.75 3.00 NON-PP/NON PPP 1.4
OVERALL TOTALS 1,123,114,360 47.3%
Note: NR= Not Rated
Appendix III: Similar Projects Financed by AfDB and other Development Partners
in Ethiopia
Project/Framework Development
Partners(s)
Relationship to the Universal Access Plan (2005) or the OWNP (2013)
Harar Water Supply Project AfDB Provided safe water supply for more than 250,000 people in Harar and four
neighboring towns and improved the livelihoods of women and the youth through,
among others, increased employment opportunities due to the thriving of commercial
enterprises such as hotels
Rural Water Supply and
Sanitation Project (RWSSP)
AfDB Contributed to increased access to water supply and sanitation services for rural
populations, in about 125 woredas and supporting the establishment of a sustainable
service provision framework across all levels
Promoting Basic Services
(PBS) II and III
AfDB, WB, EU,
DfID, Austria,
Italy, Ireland Dev.
Cooperation,
Spain,
Contributing to poverty reduction and improving living standards by expanding access
and enhancing the quality of the decentralized delivery of services in education, health,
agriculture, water supply and sanitation; and rural roads while continuing to deepen
local accountability and transparency in basic service delivery
Solar &Wind for Water Africa Water
Facility (AWF)
Piloting and promoting use of solar and wind energy for water pumping in rural areas
and development. The project will result in an increased and sustained supply of water
at lower financial, economic, environmental and social costs.
Ethiopia Water Supply and
Sanitation Project
World Bank and
DfID
Contributed to increased access to water supply and sanitation services for rural and
urban populations, including creation of woreda water and sanitation programs (in 230
woredas) and establishment of water boards in 50 towns; including establishing of
sector M&E framework
Ethiopia Water Supply,
Sanitation and Hygiene
Project
World Bank Will increase access to improved water supply and sanitation services for residents in
participating woredas/towns and communities in Ethiopia
Public Sector Capacity
Building Program Support
Project (PSCAP); I and II
EU, World Bank,
DfID, Ireland
Dev. Cooperation
Governance and Decentralized Service Delivery: development of human resources,
working systems and effective organizational structures to improve the scale,
efficiency and responsiveness of public service delivery at the federal, regional, and
local level; empower citizens to participate more effectively in shaping their own
development; and promote good governance and accountability
Drought Resilience and
Sustainable Livelihoods
Program for the Horn of
Africa (HoA)
AfDB Developing regional systems to alleviate the negative impacts of deteriorating
environmental conditions in the HoA. Among the activities will be development of
water storage and other related infrastructure; protection of water reservoirs and
conservation of water catchment areas; development of market infrastructure and
communication and information systems for selected pastoralist woredas.
UNICEF- Water,
Environment and Sanitation
UNICEF Supports humanitarian WASH, School WASH, WASH MIS, Education MIS, Health
MIS, technical Assistance; WASH sector standards and manuals; CLTHS, water
conservation and reuse; supports both rural and urban WASH interventions
Rural water supply, sanitation
and hygiene programme in
Benishangul Gumuz region
Finland Institutionalizing community-based water planning, development, management and
reinvestment using a Community Development Fund in Benishangul Gumuz Region;
Finland also provides support to Civil Society
Multi-Annual Strategic Plans
(MASP; 2012-15) of the
Netherlands Embassy
Netherlands Addresses water within the framework of water for food and water for health; mostly
in collaboration with other partners like UNICEF, SNV, etc.
Project for rural water supply,
sanitation & livelihood
improvement through
dissemination of rope pumps
for drinking water
JICA Providing technical support in the research and development, standardization and
dissemination of rope pumps for drinking water as a self-supply water lifting
technology for rural households – in line with the Self-Supply Acceleration Program
(SSAP).
Also provides capacity building for the Ethiopian Water Technology Centre (EWTEC)
Support to water, energy and
urban infrastructure
AFD Upgrading of water supply in Addis Ababa
Supporting increased access to water and sanitation in rural areas
Sustainable management of water resources to support the Nile Basin Initiative
Note: Also refer to Table A25 in Technical Annex C on the Donor interventions in Ethiopia and the emerging division of labour
Appendix IV: Map of Project Area
This map was provided by the African Development Bank exclusively for the use of the readers of the report to
which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members
any judgement concerning the legal status of a territory nor any approval or acceptance of these borders. The use of
this map for any other purposes is strictly prohibited.