support for global water security and sanitation partnership...

Support for Global Water Security and Sanitation Partnership multi donor trust fund 2019-22 Key results: Support countries to achieve water related SDGs, notably SDG6 by providing:

a) analytical research and knowledge products for the World Bank, the client countries, donors and other partners,

b) technical assistance and capacity development in support of both client country institutions and the World Bank Water Global Practise,

c) influencing World bank investments in lending in water and other sectors.

GWSP work is focussed on five priority themes essential to achieve the SDGs: sustainability, inclusion, institutions, financing, resilience The GWSP results framework consist of three building block that measure results on; * GWSP’ analytical and advisory activities, * GWSP influence on World Bank’s lending * Country level results (impact). Water Global Practice & GWSP targets to be achieved are the following: - 120 institutions with wrm Monitoring Systems - 4 mill. ha provided with new/improved irrigation or drainage services, -16 mill. people in areas covered by water risk mitigation measures, - 50% of World Bank water projects tagged Climate Finance (Climate co-benefits), - Net green house gas emissions - 700 mill. people provided with access to improved water sources, - 80 mill. people provided with access to improved sanitation services 3,5 mill. farmers adopting improved agricultural technology Justification for support: Water security is increasingly recognized as a major global challenge that touches upon almost all aspects of development, including most of the SDGs and all the priorities in the Danish strategy “The World 2030”. The World Bank has a global reach, the biggest investments in water and one of the best knowledge generating platforms in the world. Danish support for GWSP will provide access to this knowledge hub. Danish public and private solutions can be promoted to GWSP and the other relevant parts of the World Bank.

Major risks and challenges: Based on the risk assessme. Mitigating measures have been prepared for all of them : - Donor priorities could change make it difficult for the GWSP to raise the full budget of USD 200 mill for five years, - changes in government in client countries may result in changes priorities, - low capacity and weak country systems and accountability mechanisms in client country institution may affect the efficiency of country institutions to work on the programme.

File No. 2019-2965

Country regional

Responsible Unit MKL

Sector Water and climate

Partner GWSP trust fund World Bank

DKK mill. 2019 2020 2021 2022 20xx Tot.

Commitment 70 70

Projected ann. disb. 17,5 17,5 17,5 17,5 70

Duration 4 years

Previous grants WPP DKK 49 mill and WSP DKK 65 mill.

Finance Act code 06.38.02.17

Head of unit Henriette Ellermann-Kingombe

Desk officer Dorthea Damkjær

Financial officer Louise Kronborg Sørensen

Relevant SDGs [Maximum 5 – highlight with grey]

No Poverty

No

Hunger

Good Health,

Wellbeing

Quality

Education

Gender Equality

Clean Water,

Sanitation

Affordable

Clean Energy

Decent Jobs,

Econ. Growth

Industry,

Innovation, Infrastructure

Reduced Inequalities

Sustainable

Cities, Communities

Responsible

Consumption & Production

Climate Action

Life below

Water

Life on Land

Peace &

Justice, strong Inst.

Partnerships

for Goals

Strategic objectives:

Support countries in achieving water related SDGs, notably SDG 6

Justification for choice of partner:

The World Bank is the only development Bank with global out-reach and has the largest investments in water.

Summary: GWSP works like a think tank providing analytical research and knowledge products as well as technical advisory services and capacity development to client countries. It influences the design of World Bank lending programmes in water and other sectors with the view to improve the quality and impact at country level.

Budget:

Core contribution 70 DKK mill.

Total 70 DKK mill.

1

Concept Note regarding Danish support for the World Bank Multidonor Tustfund

Global Water Security and Sanitation Partnership (GWSP)

File No: 2019-2965

Context

Water is a critical resource that touches upon nearly every aspect of development. It drives economic growth,

supports healthy ecosystems, and is essential to food and energy production and life on the planet. Population

growth, rapid urbanization and competition over natural resources are placing greater stress on water supplies.

Water related hazards, including floods, storms, and droughts, are responsible for 9 out of 10 natural disasters.

Climate change is expected to increase the risk of such events with implications for livelihoods, food security,

migration and stability. Up to two thirds of the World’s population are projected to live under water stress by 20251.

The poorest with the least capacity to adapt are affected the most. Gender and human rights issues are at the

forefront of the water agenda. Water is key to the 2030 agenda’s emphasis on inclusion and “leaving-no-one-

behind”. Furthermore, water use for domestic purposes, agriculture and industry are all generating wastewater and

causing pollution2. In recognition of the broad value and significant threats to freshwater, the World Economic

Forum’s annual Global Risks Reports have consistently ranked “water crises” as amongst the greatest risks to

economies, environments and people3. Water security is central both to achieving most of the SDGs and adapting to

climate change as well as to the four overall objectives in the Danish strategy “The World 2030”; 1) Security and

development – Peace, security and protection; 2) Migration and development; 3) Inclusive, sustainable growth and

development and 4) Freedom and development – democracy, human rights and gender equality. SDG6 is one of the

priority goals for transition and growth countries.

Against this contextual backdrop, it is proposed that Denmark supports the Global Water Security and Sanitation

Partnership, (GWSP) – a multi-donor trust fund in the World Bank with DKK 70 million from 2019 - 2022. The

World Bank has global coverage, the biggest investment in water and one of the best knowledge generating

platforms in the world. Support for GWSP implies opportunities to tap into the knowledge pool and to influence

policies and promote Danish public and private strongholds to GWSP. The strategic contribution will be supported

by a Danish secondment to GWSP.

Danish interests

GWSP was established in November 2016 with the vision of a Water-Secure World for All. It integrates the two

globalWorld Bank programs: the Water and Sanitation Program (WSP) – that had a strong country level advocacy

and capacity building component focusing on water and sanitation - and the Water Partnership Program (WPP), that

focussed on water resource management (WRM) at national, regional and global level. Denmark has been

supporting both programs; WSP from 2002-06 with DKK 35 mill. and from 2006-11 with DKK 30 mill. WPP was

initiated by Denmark and supported from 2008-2012 with DKK 29 mill. and from 2012-15 with DKK 20 mill.

Danish support was put on hold in 2015 in light of the restructuring of development cooperation and reduction in

Danish ODA from 1 to 0,7 pct. of BNI.

An external evaluation of WSP was conducted in 2016 and an external review of WPP was done the same year.

Both were positive on most parameters. WSP work on policy, regulatory framework and public sector reform was

positive. Scaling up of pilot projects was more through public sector, donors and NGOs investments than cost-

covering and sustainable models, including public-private-partnerships (PPP). Pro-poor orientation was improved,

but strategies to reach the poor could be strengthed. In terms of knowledge products, which was central to the

mandate, WSP was recognized as leader on water and sanitation at country and global level. Finally, the ability to

influence investment decisions via on-the-ground-partnerships and evidence-based methods were recognized.

1 http://www.un.org/waterforlifedecade/scarcity.shtml, http://www.fao.org/3/a-aq444e.pdf

2 https://uneplive.unep.org/media/docs/assessments/unep_wwqa_report_web.pdf 3 World Economic Forum (2015), https://www.weforum.org/agenda/2015/01/why-world-water-crises-are-a-top-global-risk/

http://www.un.org/waterforlifedecade/scarcity.shtml

http://www.fao.org/3/a-aq444e.pdf

https://uneplive.unep.org/media/docs/assessments/unep_wwqa_report_web.pdf

https://www.weforum.org/agenda/2015/01/why-world-water-crises-are-a-top-global-risk/

2

The independent review review report on WPP states: “ 4The assessment undertaken has allowed the Independent

Review to conclude that the WPP’s value is immense, multidimensional and that there is much to keep, …an little

to abandon..” for the transformation into GWSP. Thus, the findings have been integrated into the design of GWSP.

For example the need to strengthen the strategy to reach the poor and to increase focus on gender have been

translated into “inclusion” as one of five priority themes of GWSP. Country level presence and technical experts to

advise both bank operations and decision makers at country level have been included as a GWSP feature as has a

continued strong expertise on water resource management (wrm) for capacity building in countries. Experience

with extensive results framework at different levels has informed the results framework of GWSP and efforts to be

on top of new knowledge and innovative technologies and to expose Bank clients to it have been maintained. The

focus on both middle income countries and low income countries is kept but the portfolio in the latter is expanded

due to increased IDA commitments. The lean management structure and management efficiency has informed

GWSP design.

The GWSP works like a think tank. It both collects, generates and disseminate knowledge, provide expertise on

SDG 6 water issues and beyond to both World Bank lending operations in water and other sectors, client countries

and donors. The World Bank is the only development bank with a global reach as well as the largest investments in

water. Thus, GWSP strategically influence very big investments. International attention to the challenges of

ensuring water security is growing. So is the focus on the many nexus issues related to water such as climate

change affected livelihoods, food security, nutrition, health, displacement, migration, stability and security. Linked

to these agendas is the need to build resilience and develop adaption strategies to reduce fragility and address

climate change.

Danish support for GWSP will ensure access to draw on and influence one of the best knowledge generation

platforms in the international community on water issues. Knowledge generation from GWSP can provide input for

adaptation interventions in the Danish climate envelope and for Danish work on fragility and security both

bilaterally and multilaterally. Furthermore, the water agenda may be an avenue to pursue for dialogue with

countries questioning the climate change agenda. Danish support would provide a platform for promoting Danish

solution providers in water technologies, climate adaptation and resilience vis-à-vis GWSP and the World Bank

more broadly. The strategic contribution will be supported by a Danish secondment to GWSP.

Support for GSWP will be complementary to Danish support for the UNEP-DHI Partnership Centre. UNEP-DHI

provides a strategic entry point to the UN system on water by supporting both “The World 2030” and UNEP’s

Fresh Water Strategy.

The Objectives and Approach of GWSP

The objective of GWSP is to support countries achieving water related SDGs - notably SDG 6 (Clean water &

sanitation) and the other 16 SDGs closely connected to water.

GWSP provides most of the analytical research, knowledge products and country level technical assistance in the

Water Global Practice (Water GP – see page 5). These activities are targeted to influence Water GP lending

investments with the aim for greater impact in client countries through placing the five themes at the heart of the

project design. Being an integral part of the Water GP, GWSP is also able to tap into the expertise and financial

instruments of other GPs and organizations within the World Bank Group, such as the International Finance

Corporation and the Multilateral Investment Guarantee Agency. These resources through GWSP improves the

World Bank’s ability to support countries in achieving the SDGs. The knowledge and analytics are shared with a

host of partners including clients, donors, academia, the private sector and other related partners to promote a

global dialogue.

4 Water Partnership Program Independent Review – Evaluation Report March 2017, RED2RED Consultores, Universalia page VII

3

The GWSP is focusing its work on five priority themes deemed essential for achieving the SDGs: Sustainability;

inclusion; institutions; financing and resilience. The approach is illustrated in the diagram below:

1. Sustainability: Ensuring available resources continue to deliver benefits to future generations to reach the

SDGs. GWSP focuses on two critical aspects of sustainability of water investments: a) sustainable

management of water resources, including securing long-term availability of water resources, considering the

impacts of population growth, rapid urbanization and climate change; and b) functionality of infrastructure

assets, such that they should be adequately built and maintained, to ensure for example that handpumps do not

break down prematurely or that treatment plants are not abandoned for lack of adequate maintenance.

2. Inclusion: Improving the terms for individuals and groups who are disadvantaged, based on their identity, (race,

gender, ethnicity, handicapped) to equally benefit from improved water access and services. Water belongs to

everyone and yet many are excluded from its benefits and often from ownership and control of this critical

resource. Ensuring that access to water resources is inclusive requires better knowledge on the nature of water

inequality, enhancing capacity and putting in place incentives that will result in better outcomes. Underlying

such design also requires strong institutions and leadership that will hold state and service providers

accountable.

3. Institutions: Expanding access to and improving the quality of services can only be achieved and sustained if

the institutional arrangements provide the right incentives and resources and the organizations tasked with

service delivery also have the requisite capacity. Institutions comprise the formal and informal ‘rules of the

game’ within which these organizations operate and, through this, impact the quality and sustainability of

services. To strengthen institutions and accountability for service provision, GWSP works to understand the

rules of the game and incentive structures to facilitate a pragmatic change process that is grounded in local

cultures, economies, and political circumstances.

4. Financing: Increasing the efficiency of existing financial resources and

securing additional resources to close the financing gap. The price tag for

achieving water SDGs is enormous. For water supply and sanitation alone,

the estimate is US$1.7 trillion, or three times the amount historically

invested in the sector. Furthermore, it is estimated that US$960 billion will

be required between 2005/07 and 2050 to ensure water for agricultural

production in 93 developing countries. The water and sanitation sector

alone, for example, requires six times more financing than governments,

the private sector, and donors are currently funding. GWSP will focus on

improving the financial viability and leveraging additional resources by

4

seeking to enhance opportunities to blend public or donor’s funds with commercial finance.

5. Resilience: Increasing resilience of water resources and facilities toward climate related shocks and stresses.

Climate change is predicted to increase climate variability and extreme weather events, such as floods and

droughts. Resilient solutions call for strategies and tools at the country, basin, and local level capable of

incorporating not only climate and disaster risk consideration into the analysis, but also innovative solutions to

ease water scarcity constraints as well as socioeconomic and environmental considerations. Building climate

resilience will also require tools and approaches that can help save lives and livelihoods. Resilient water

services (water and sanitation, irrigation, etc.) are better able to adapt to shocks and stresses and continue

delivering essential services to the population.

For example, a recent World Bank report, Reducing Inequalities in Water Supply, Sanitation, and Hygiene in the

Era of the SDGs, suggests that a drastic change is required in the way countries manage resources and provide key

services. These reforms should start with better targeting to ensure that they reach those who are most in need, and

tackling inefficiencies to make sure public services are sustainable and effective. To realize SDG 6 (particularly

indictors 6.1 and 6.2), a stronger emphasis on Inclusion is needed. GWSP is deepening its work on inclusion in

gender, fragile states, and food security and nutrition, emphasizing quality and behavioral elements of water

services to enhance the impacts on human development outcomes. On Financing, GWSP is working with clients to

improve the effectiveness of public finance, leverage additional resources, and blend public funds with commercial

finance. In Kenya, GWSP is supporting the transition to more use of commercial finance, which includes changes

to the legal and regulatory framework, corporatizing service providers, and assisting local banks to be more

acquainted with the water sector. Moreover, on Sustainability, GWSP is working with governments in Central Asia

to modernize irrigation practices and systems. As Central Asia opens to modernizing on-farm irrigation, GWSP’s

engagement is essential in supporting sector reforms and improve sustainable water services to farmers that will

promote agriculture and water resources transformation. On Resilience, critical analytics such as the fresh water

resilience studies in Tanzania and Mexico provide in depth assessment of climate change, environmental,

demographic and political risks and economic forecast, and apply a systematic approach for quantifying risks and

the effectiveness of various mitigation measures. A series of water security studies in six countries examine how

institutions, infrastructure, and finance impact water resource management, irrigation and water service delivery,

and risks associated with floods, droughts, and transboundary waters. To achieve the SDG’s, GWSP will support

countries on all five themes across all aspects of water resources management ("water writ large"), which becomes

increasingly challenging as global demands begin to outstrip sustainable supply.

Nine priority countries (Bangladesh, Benin, Bolivia, Egypt, Ethiopia, Haiti, Uganda, Vietnam and Pakistan) have

been chosen for which Water GP aspires to “shift the needle” in a measurable manner across the five themes in the

countries.

https://openknowledge.worldbank.org/bitstream/handle/10986/27831/W17075.pdf?sequence=5&isAllowed=y

https://openknowledge.worldbank.org/bitstream/handle/10986/27831/W17075.pdf?sequence=5&isAllowed=y

5

GWSP is an Integral Part of the World Bank Water Global Practice

Contrary to WSP and WPP, GWSP is fully integrated into the World Bank Water Global Practice (Water GP), its

management structure and strategy framework that link up to overall World Bank objectives of eliminating extreme

poverty and boost shared prosperity in support of the SDGs and the Paris Climate agreement. Se illustration of

Water GP strategy framework below:

The Water GP was formed in 2014 as part of the global organizational reform to consolidate the World Bank into a

“Solutions Bank”. The Water GP has approximately 300 water experts including GWSP, which brings together

expertise from multiple fields, such as water and sanitation (WSS), water resource management (WRM),

hydropower, irrigation, institutional reform, gender and inclusion, economics, finance, public-private partnerships

(PPPs), and behavior change. The experts are all placed under the same management structure led by a Senior

Director along with client-facing regional Practice Managers (PMs), Global Leads responsible for five Water GP

business lines: 1) Water Supply and Sanitation, WSS, 2) Water Resource Management, WRM, 3) Water for

Agriculture, 4) Hydropower/Dams and 5) Water and Economy). A Practice Manager is in charge of cross-cutting

areas, partnership management, knowledge creation and quality assurance. GWSP is led and managed by a

Program Manager, who reports directly to the Senior Director, and is supported by small team for program

operations. The diagram below illustrates the links between the Water Global Practice’ vision, key activities and

6

specific targets:

GWSP complements the World Bank Funding Model

GWSP activities focus on improving the quality and sustainability of World Bank lending operations, which

themselves address vital infrastructure needs. Lending programs most often comprise specific, time-bound country

engagements. GWSP resources are used to fortify lending operations by building on and creating links between the

scale, timing, and scope of ongoing or future operations. GWSP seizes opportunities to build bridges that enhance

quality and sustainability. For example, GWSP can provide additional resources to promote regional dialogue

toward shared goals, building on what would otherwise simply be country-based investments. Moreover, backed by

a lending portfolio of $28 billion, the GWSP also serves as a critical “think tank” that bolsters sustainable project

outcomes. The partnership with donors, which expands the presence of GP staff around the world, ensures

knowledge and research flow to support the World Bank’s lending portfolio. See illustrative GWSP table below.

Opportunities to Strengthen the World

Bank Funding Model

Value Added: The GWSP’s Contribution

Scale Country-based Supports regional and global engagements that leverage

innovative ideas through collaboration with academia, the

private sector, and civil society

Lacks incentives for regional

coordination

Brings multiple riparian countries to the table to discuss

transboundary or regional development issues

Isolated interventions Identifies potential synergies across the portfolio; takes lessons

from one part of the world to another

Timing Time-bound Provides support to clients between and in advance of

operations; staff on the ground help sustain momentum for

reform in the interim

7

GWSP Operating Modalities

The activities undertaken by GWSP are implemented through the below listed five main modalities, which have

proven their effectiveness under the previous partnerships according to the evaluation/review:

1. Partnership-funded staff for long-term country engagement:

This modality will fund staff to carry out sector strategies, project enhancement, and global knowledge

initiatives. Staff funded through this modality will primarily be technical experts with relevant

experience in the five priority themes.

Country level staff will typically be placed in countries with significant institutional constraints or

highly innovative and transformational engagements that have the strategic value to influence a global

approach.

2. Global Knowledge initiatives:

Analytical work, evidence and engaging with stakeholders at all levels and supporting peer-to-peer

learning will be critical to achieving the SDGs, and resources through GWSP support this work.

The Global Knowledge initiatives will focus on emerging challenges in the water sector that may not

yet be a top priority for clients. Through analytical work and a set of solutions tested within World

Bank projects, the global knowledge initiatives will influence client demand and serve as a valuable

resource for other governments and development partners.

These Global Knowledge initiatives will be selected to address one or several of the priority themes for

the partnership, based on expert consultation around the key challenges facing the water sector.

3. Long-term technical assistance:

Building on the success of the previous WSP partnership model of country engagement, the long-term

technical assistance modality will fund variable expenses associated with both sector strategy and

project enhancement activities.

This work will help to lay the groundwork for more effective public and private investments in the

future by focusing on long-term institution building and sector reform and serve as laboratories to test

innovative, higher risk approaches before launching them at scale.

Such long term technical assistance will typically be focused on IBRD and IDA-eligible countries, as

well as World Bank-designated Fragile Situation countries.

4. Just-in-time technical assistance:

Static budgets Enables clients to address unexpected changes or shocks—a

flood, a new law, a sudden influx of refugees—in the context of

existing and planned programs

Insufficient time for adequate

analysis and assessment

Brings clients to the frontier of knowledge, using best practices

in poverty mapping, subsidy targeting, or project resilience to

external (climate) shocks

Scope Most lending in the water sector

is designed for infrastructure

Analyzes the legal, policy and governance frameworks that

support results; works beyond physical assets to improve quality

and sustainability as a complement to investments

Insufficient resources for

institutional capacity building

Global experts provide just-in-time support; technical assistance

and training ensure counterparts have the skills to operate new

systems

Countries opt for lower risk

profiles

Enables teams to consider high-risk, high-reward options and to

leverage innovative approaches

8

Building on the success of the previous WPP well established model of Just-in-Time technical

assistance (TA) for small, strategic interventions to provide critical technical knowledge or capacity

support, this modality will support short term TA on sector strategies or project enhancement.

Funding support will need to demonstrate that the proposed activities directly contribute to one or more

of the five priority themes, in addition to global replicability.

5. Preparation and implementation support:

Target countries with capacity issues and for priority areas yet to be mainstreamed.

Support selected countries to achieve more effective project design with complex emerging themes.

Support projects requiring concessional financing, while continuing to identify and promote private

finance opportunities and other forms of private sector participation.

GWSP Work Programming

The GWSP Partnership Paper outlines the strategic direction and priority themes that constitute the basis for work

program activities at the country, regional and global levels.

Country-level support will be demand-driven, reflecting local political and sector context and designed in

consultation with governments, partners and stakeholders. Within a demand driven approach, Partnership

funds will be prioritized for lower income countries and countries included in the Fragility, Conflict and

Violence (FCV) list. The Partnership will also support initiatives in other countries, especially when they

demonstrate potential for innovation and global and local learning.

The GWSP global knowledge activities will be selected to develop innovative and transformational

engagements that have the strategic value to influence a global reach.

GWSP Theory of Change and Results Framework

Theory of Change:

The three building blocks of the GWSP Results Framework is linking the GWSP’s analytical and advisory

activities to World Bank lending and results on the ground in the client countries. Block A reflects all the

analytical, advisory, and technical assistance work to the government that are directly funded by GWSP. These

analytics and technical assistance supported by GWSP (Block A) aim to influence client demands on the type,

design, and the results of the World Bank lending operations (Block B). The combination of the analytical and

advisory support and results from the World Bank lending operations strive to achieve measurable impacts on the

ground in client countries (Block C).

An overview is provided in the chart below.

Overview of the Theory of Change and Results Framework

9

Every block has a list of indicators attached to it tracking results at different levels: (Refer to annex 2 for list of

indicators)

Block A: GWSP Supported Knowledge and Analytics (Intermediate Outcomes attributed by GWSP

Outputs)

This block tracks the results that are directly achieved by the knowledge and analytics funded by GWSP in

the five priority themes. It comprises global, regional, and country analyses, as well as the technical

assistance provided to World Bank client counterparts. A set of indicators were developed for each of the

five priority themes to track the degree to which analytical and knowledge work directly influence the

policies and institutions of client countries. The indicators have been designed to be applicable across all

business lines, including Water Supply and Sanitation, Water for Agriculture, Water Resource

Management; Hydropower and Dams and Water and Economy. Results will be reported annually. (Refer

to Annex 2 for the indicators)

Block B: GWSP Leveraging Water GP Outcomes (Outcomes contributed by World Bank Lending): This block tracks GWSP’s influence on the World Bank’s lending. It does this in two ways: 1) tracking

inputs from GWSP in mainstreaming the five themes in water lending operations; and 2) results of the

lending operations influenced by GWSP activities Custom Block B Indicators have been developed to

track portfolio shifts in priority themes and results will be reported annually. (Refer to Annex 2 for the

indicators)

Block C: Country Level Results (Impact on the ground): This block tracks the combined effect of both

non-lending (Block A) and lending interventions (Block B) at the country level and the measured change in

outcomes of nine priority countries (Bangladesh, Benin, Bolivia, Egypt, Ethiopia, Haiti, Uganda, Vietnam

and Pakistan). These are the nine countries where the Water GP aspires to “shift the needle” in a

measurable manner across the five themes in the countries. Because changes at country level take time, the

results for the nine countries will only be reported in three reporting cycles - a Baseline in 2017, Mid-Term

2020, and an End-Term in 2022. (Refer to Annex 2 for the indicators)

INAGRICULTUREWATER WATER SECURITY & INTEGRATED

RESOURCE MANAGEMENTHYDROPOWER

DAMS&

C

IMPACT

COUNTRIES

A

INTERMEDIARY

OUTCOMESOUTCOMES

B

SANITATION&WATER SUPPLY WATER, POVERTY

& THE ECONOMY

Sustainability

Inclusion

Institutions

Financing

Resilience

ACTIVITIES: WATER GP LENDING & KNOWLEDGE

WB PROJECTS

RESULTS FRAMEWORK

COUNTRIES

GWSP

THEMES

GWSP

outputs

10

Results

2018 was the first year of operation of GWSP. Data are available for different levels:

At an overall generic level, GWSP knowledge products and analytics have influenced USD 13,8 billion in 94

World Bank lending projects in 6 regions. 31 countries have been supported and 81 activities initiated. Data are

generated on overall results on the five priority themes of GWSP as well as at country level. For example on

“institutions”, the approach is to apply the “Utility Turnaround Framework (UTF) that helps client countries to

systematically approach performance improvements. Application of the UTF in 8 countries was supported. 27

utilities improved operating ratio and 30 institutions improved water resource management monitoring systems. On

“resilience” the approach is to build in resilience in project design to help client countries assess the risks and

uncertainties of climate change on water management and infrastructure. In 2018, 54% of new lending projects had

climate change co-benefits and 75% incorporated resilience in their design, for example more than USD 1 bill in

land, water and energy management programs were influenced. On “inclusion” the approach applied includes

mainstreaming citizens engagement mechanism in lending operations to ensure beneficiary feed-back in 100% of

water projects.100% of new projects in-corporate gender in analysis, action and results and 500.000 female water

users benefitted from improved irrigation services.

Anti-corruption

GWSP is governed by the zero-tolerance policy of the World Bank and applies rules and regulations in accordance

therewith.

Indicative GWSP Budget (2018-2022)

The total estimated budget for the GWSP is US$ 200 million over a five-year period, from 2018-2022. The

indicative budgets are distributed across the five priority themes and other program operation related activities such

as communications, knowledge management and program administration. As GWSP is set up as a multi-donor trust

fund, there are no specific earmarking of donor contributions to specific themes.

Indicative GWSP Budget: Strategic Partnership Period 2018 – 2022

($ millions)

Priority Theme INDICATIVE 2018-2022 Allocation

2018-2022 Business Plan Target

Sustainability 25.9 36.0 Resilience 20.0 36.0 Inclusion 16.5 36.0 Institutions 22.3 36.0 Financing 15.3 36.0

Example : Achieving Inclusive and Sustainable Services in Ethiopia

The technical assistance through partnership funds to Ethiopia was instrumental in supporting the government

develop an integrated urban sanitation and hygiene strategy (IUSHS) and the One WASH National Program, and

building capacity of 10 cities to assess urban sanitation challenges including the development of customized

sanitation investment plans and service delivery models (Block A). These analytical and technical assistance

groundworks have led to the design of a $445 million World Bank lending project to improve existing onsite and

sewer-based solutions, increase FSM services, and expand decentralized wastewater treatment plants (Block B).

With an estimate of 3.4 million people benefitted from this project as well as improvements in waste water

collection and management and utilities performance and service delivery will contribute to measurable impact in

the country (Block C).

11

Subtotal 100.0 180.0

Others Knowledge Sharing and Dissemination 7.1 7.0 Communications 4.7 4.0 Program Management and Administration 5.9 9.0 Subtotal 17.6 20.0

Grand Total 117.6 200.0

Donor Contributions

While GWSP was established in November 2016, it was formally operationalized in July 2017 as the Water GP was

closing the two long-standing Trust Funds, WSP and WPP. A six-month period to transition business operations

into the new Partnership was needed. The GWSP was designed as a US$ 200 million, 5-year Program. As of June

2018, eight donors (the Netherlands, Sweden, Australia, Switzerland SDC, Switzerland SECO, Norway, the Bill

and Melinda Gates Foundation and the Rockefeller Foundation) have officially signed administration agreements

(AA) for contributions to the GWSP MDTF, totaling to $117.6 million. The Water GP is expecting to close the

unfunded gap of $82 million to meet the US $200 million funding target required for the five-year partnership

period. Activities will be adjusted to actual funding.

The Danish contribution for GWSP will amount to DKK 70 million covering the time period 2019-22 disbursed in

tranches of DKK 17.5 mill. each year.

Monitoring and Evaluation

Amount

($, million)

GWSP Funding Goal (2018-2022) 200.00

Total Donor Commitments 117.5

GWSP Funding Gap 82.42

12

Results and progress of the program will be monitored under GWSP’s integrated program and results monitoring

system, and reported through the GWSP Annual Report. This system tracks the activities that are supported by

GWSP, including financial information such as donor contributions and budget allocation and expenses, and results

indicators across three blocks of the GWSP Results Framework. It will facilitate data tracking and mining, trend

analysis and customized program operation and financial reports to support day-to-day decision making.

Furthermore, results at country, regional and global levels will be monitored closely by the Water GP Leadership

Team in conjunction with the GWSP team. Quality assurance of the analytics and lending operations will follow

the World Bank review, processing and approval guidelines and procedures. Progress of the activity

implementation and the results achieved will be monitored and reviewed each year. Fiduciary oversight of the Trust

Fund will also be performed throughout the year within the World Bank Trust Fund guidelines.

GWSP Governance Structure

The governance framework for the GWSP includes two components: 1) the Water Consultative Group; and 2) the

GWSP Council.

Water Consultative Group - The Water Consultative Group is a comprehensive stakeholder group, which

will serve as an advisory group for high level and technical discussion on the future of the global water

sector and particularly on achieving the SDGs, and as a mechanism to align the positioning of GWSP

within the water sector and ensure its continued relevance in addressing the SDGs.

The GWSP Council - The GWSP Council will act as the governing and decision-making body of the

GWSP MDTF, including strategic guidance on the direction of the MDTF, assessment on the progress of

work program implementation and the results achieved as well as financial and administrative matters.

The membership eligibility and role and responsibility for each of the two components of the GWSP governance

are stipulated in the GWSP Charter as adopted by the Council in March 2017. Denmark will be eligible for

membership of the GWSP Council like other donors contributing minimum USD 2 million annually to the fund,

and will actively participate in the GWSP Council to provide guidance in accordance with priorities in “The World

2030” and to monitor both results and risks based on the results framework and the the comprehensive risk

assessment framework in annex 1.

13

Annex 1: GWSP Risk Assessment Framework

GWSP Risk Assessment Framework

Risk Description Risk

Rating Impact severity Proposed Mitigation Measures

I. Strategic Risks

14


Risk Description Risk Rating

Impact severity Proposed Mitigation Measures

1. Lack of complementarity

with mission of the Water GP, World Bank’s twin goals, or other corporate strategies and objectives.

2. GWSP’s work program priorities are not being implemented in accordance to the Country Partnership Framework (CPF).

3. Complexity in governance structure which inhibits the Council’s ability to effectively provide strategic guidance and direction on the partnership.

4. Political and financial

environment of the donors, leading to insufficient matching donor resources mobilized in time to fully fund initiatives

5. Potential changes in government may result in re-prioritization in government agenda, where water and sanitation may not remain a government priority, negatively affecting ownership or commitment.

Low

Low

Low

High

Moderate

High High moderate High high

The five thematic priorities were selected based lessons learned, experience from the field and global engagements/dialogues on SDGs. All of GWSP funded activities are thoroughly reviewed for relevance and potential contribution toward the five themes by the Water GP Leadership.

All of the activities undertaken at the country level will be discussed with the Country Management Units and in alignment with the CPFs. Discussions with the client countries during inception stage will ensure proposed activities properly reflect client demands.

The governance of the Partnership is set forth in the GWSP Charter. Its structure is streamlined with clear roles and responsibilities of the members. As part of the Council Meeting each year, reviewing of the Charter and proposed amendments could be a topic for the meeting agenda.

Open engagements with donors early and throughout the partnership period to ensure continued buy-in program goals and objectives; explore with the donors on potential funding options; develop strategic fundraising plan to tap into unconventional donors.

Active coordination and dialogue with political leadership at country level inclusive of candidates from all parties to ensure water nexus agenda remain a priority for the government; maintain leadership role on water at global platforms.

II. Operational Risks

15




1. Capacity constraints and weak country systems and accountability mechanisms that limits clients’ effectiveness in work program implementation.

2. Staffing constraints for trust fund operations and administration functions which could affect product delivery and quality.

3. Resources are not adequately allocated to meet the scope of the activities or level of client demands.

4. Ambitious results framework for the partnership within short five-year period.

5. Country conditions, including Increased political and social instability, violence and natural disasters may potential delay program implementation and results.

Moderate Moderate

Low

Moderate

Moderate to High

High Moderate Moderate Moderate Moderate to high

The essence of the GWSP programs is to provide sustained support to clients on capacity building and institutional strengthening. GWSP will provide technical assistance to national and local governments and communities and foster stronger coordination, learning and cooperation.

GWSP’s trust fund administration function has been significantly streamlined compared to level of the previous WSP and WPP. A 5% program administration and management fees has been retained for GWSP to ensure that the sufficient resources are allocated towards these functions.

Strategic resource allocation is conducted each year with the consultation and decision making with the Water GP Leadership team to ensure tasks are adequately funded to meet client needs and results to be achieved. Funds utilization and task implementation are monitored very closely, through monthly expense tracking, mid-year task and portfolio reviews, providing opportunity for re-allocation of resources as needed.

The results framework and the related indicators will be monitored very closely to ensure progress is on track. By design of the results framework, it is expected that short and medium-term results will be achieved through Block A and B, while longer term country level results will be achieved through Block C (hence only report at 3 points in time), albeit qualitative analysis of country level results will be discussed annually in the GWSP Annual Report. Since results are being tracked very closely, adjustments to the framework is feasible

Preserve flexibility in programming in case of exogenous factors affecting program implementation, with active engagement and coordination with Country Management Unit, clients particularly at political and sectoral levels to allow early warning of

16




6. Service providers are not technically or financially viable and governance arrangements are not clear, thereby inhibiting creditworthiness and the ability to access private capital.

High

High

potential country issues so decision on work program can be made.

Mitigation measures consisted of three components: (1) analytical work; (2) knowledge; and (3) TA and direct assistance to clients who are improving their credit worthiness.

17

Annex 2

GWSP Results Framework Indicators

Block A Indicators (Intermediate Outcomes attributed by GWSP Outputs)

Sustainability

Policies/strategies/regulatory frameworks informed to strengthen: a) sustainable management of water resources and/or b) built infrastructure assets.

Tools and monitoring systems supported to strengthen: a) the sustainable management of water resources at the national, basin and/or aquifer level and/or b) built

infrastructure assets.

Water-related institutions supported to: a) sustain water resources; and/or b) built infrastructure assets.

Knowledge products generated on sustainability.

Inclusion

Policies/strategies generated or refined to enhance social inclusion in the management of water resources, or service delivery.

Initiatives that develop approaches including integrated cross-sectoral approaches where relevant to address water, sanitation and/or nutrition issues.

Water-related institutions trained in gender and/or inclusion issues and/or HR practices related to diversity and inclusion.

Knowledge products generated on inclusion.

Institutions Policies/strategies/regulatory frameworks informed to strengthen the institutional environment for improved water resource management and/ or water services delivery.

FCV supported to develop and/or implement a water sector transition strategy.

Water-related institutions supported to strengthen capacity for managing water resources, or service delivery.

Knowledge products generated on institutions.

Financing

Policies/strategies/regulatory frameworks developed to improve financial viability.

Institutions supported to improve their financial viability and credit worthiness.

Knowledge products generated on financing.

Resilience Policies / strategies / regulatory frameworks developed or implemented to strengthen resilience of freshwater basins, and/or of the delivery of services for communities

dependent on them.

Diagnostics conducted or implementation undertaken to promote principles of building freshwater resilience.

Water-related institutions supported to build resilience in water resource management, or service delivery.

Knowledge products generated on resilience.

18

Block B Indicators (Outcomes contributed by World Bank Lending)

1. Custom Indicators to track portfolio shifts in priority themes

Sustainability Inclusion

• % of new lending projects that promote sustainable and efficient

water use

• % of new rural WSS lending projects that measure ‘functionality’

of water points*

• % of new lending projects that include gender in all 3 dimensions

(analysis, action and results)

• % of new lending projects that include ‘other social inclusion’

aspects**

Institutions Financing

• % of new lending projects that support reforms/actions that

strengthen institutional capacity

• % of new lending projects which support reforms / actions for

improving financial viability (service performance or

policy/regulatory reform)

• % of new lending projects with explicit focus on leveraging private

and other non-state sources of finance

Resilience

• % of new lending projects incorporating resilience in design of water-related initiatives

• % of new lending projects in Fragile and Conflict-affected states with a resilience lens

• % of new lending commitments with climate co-benefits*

19

2. Sector Results Indicators

Water Supply and Sanitation 1.1 People with access to improved water sources

1.2 People with access to improved sanitation

1.3 BOD Pollution loads removed by Treatment Plants

1.4 People trained on hygiene behavior

1.5 Utilities with improved working ratio

Water in Agriculture 2.1 Area with new/improved irrigation services

2.2 Farmers adopting improved agricultural technology

2.3 Water User Associations created/strengthened

2.4 Water users with improved irrigation services

Water Security and

Integrated WRM

3.1 People in areas covered by water risk mitigation measures (flooding/drought)

3.2 Basins with management plans/stakeholder engagement mechanisms

3.3 Institutions with WRM monitoring systems

3.4 Area under sustainable land/water management practices

Hydropower and Dams 4.1 Hydropower generation capacity constructed/rehabilitated

20

Block C (Impact through country level results)

Bangladesh

Key Focus Area Outcome

Urban Sanitation Monitoring and Evaluation Strengthened

Human resources and Organization Development

Accountability towards customers

Urban Water Operational effectiveness

Inclusion-focused monitoring and evaluation

Rural Sanitation Leveraged funding from private financial sector

Bolivia


Urban Sanitation

Policy/legal framework (institutions)

Targeted planning and investment (inclusion)

Rural Water Targeted planning and investment (inclusion)

Inclusion-focused monitoring and evaluation

Resilient investments (Resilience)

IWRM Sector planning and system design (Resilience)

Benin


Rural Water Policy / legal framework


Inclusive management and service delivery

Financial sustainability of service providers: sustainable revenue sources

Rural Sanitation Investment planning and delivery

21

EgyptKey Focus

AreaOutcome

Rural Sanitation

Regulation

Monitoring and Evaluation

Management Autonomy and leadership

Human Resource and organization development



Financial sustainability of service providers

Ethiopia


Rural Sanitation Operational effectiveness


Urban Water & Sanitation

Operational effectiveness

Urban Sanitation

Targeted planning and investment (by actors influenced by WB)

Rural Water and Sanitation

Targeted planning and investment (by actors influenced by WB)

Haiti


Rural Water Monitoring and evaluation



Financial sustainability of enabling institutions at national and local levels

Rural Sanitation Sector planning and system design

Rural Water and Sanitation

Investment planning and delivery

22

Uganda


Rural Sanitation Accountability towards customers


Urban Sanitation Targeted planning and investment

IWRMInvestment planning

and delivery

Urban Water and Sanitation


VietnamKey Focus

AreaOutcome

Rural Water Policy / legal framework



Rural Sanitation

Leveraged funding from service users (households, community groups, industrial, public administrations and other users)

Urban Sanitation


IWRM Leveraged funding from private financial sector

Policy, legal and regulatory frameworks for sustainable water resource management

PakistanKey

Focus Area

Outcome

Rural Water

Monitoring and evaluation

Inclusive management, and service delivery (by actors influenced by WB)


Urban Water

Management autonomy and leadership

Targeted Planning and Investments (by actors influenced by WB)

IWRM Monitoring and evaluation

Policy, legal and regulatory frameworks for sustainable water resource management


Sector planning and system design

Process Action Plan (PAP) for DK Contribution to the GWSP

Time line

Programme Documentation Responsible

26 June 2018 Draft Process Action Plan (PAP)

PAP

DD DK MFA

Week 27 (July 2 – 6) Draft concept note Concept note GWSP IBRD

Week 28 (July 9-13) Comments for draft concept note

Comments DD, DK/MFA

3 or 17 Oct Deadline for confirming agenda item for the programme committee

Confirm agenda point DD DK/MFA

Week 40-42 (Oct. 1 - 19) Revised concept note Rev concept note GWSP

14 January 2019 Submission of concept note for the programme committee

Concept note final DD DK/MFA

Jnaury & February Public Hearing on concept note

DK/MFA KFU

6 February Meeting in the Programme Committee

Concept note final

7 – 17 February Programme Document Development of draft programme documents

MFA/GWSP

- Ditto - TOR for appraisal for KFU TOR DD/MFA

Mid March Final Programme document for appraisal

GWSP

13 March Deadline for confirming agenda item for the Council for Development Policy CDP

DD/MFA

March-April Appraisal of programme document

appraisal KFU DK /MFA

15 April Final Appraisal report Appraisal report KFU

15-22 April Including appraisal recommendations into the programme document

Final programme document GWSP

23 April Submission of programme document to Council for Development Policy (CDP)

MFA

8 May Presentation to the CDP Final programme document DD/MFA

Mid May

Presentation of appropriation note to the finance Committee in Parliament

Draft note DD MFA

Mid May The minister approves the programme

Summary from Council for Development Cooperation

DD MFA (MKL and KFU)

End June Meeting in the Finance Committee of Parliament

Appropriation note

End June Prepare/ sign agreement Danida and GWSP

Draft donor agreement DD MFA

End of June First Disbursement based on disbursement request

DD DK/MFA

support for global water security and sanitation partnership...

Documents