Towards sustainable water resources management

Guidelines for water resources development co-operationD

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Towards sustainable

water resources management

A Strategic Approach

Overallobjective

Purpose

Results

Activities

The Strategic Approach

Water Resources developed andmanaged in an integrated and

sustainable way for the benefit of all, based on a

set of guiding principles

Programmatic contexts grouped in four Focus Areas; and an overview

of actions implied by adopting the strategic approach

Checklists for the preparation ofprogrammes and projects, sector

reviews, policy studies and countrystudies for different phases of the

project cycle. The checklists are sub-divided according to Focus

Areas and guiding principles

A selection of aids for projectpreparation and implementation

including: Stakeholder Analysis, SocialImpact Assessment, Financial andEconomic Analysis, Environmental

Assessment, Capacity Building, andPublic-Private Participation

Chapters

1 and 2

Chapters

3 and 4

Chapters

5 to 11

Chapters

12 to 15

Part IIApplication

Part IIIAids to application

Part IRationale and key concepts

Guidelines for water resources development co-operation

Towards sustainable

water resources management

A Strategic Approach

European CommissionSeptember 1998

European Communities – CommissionTowards sustainable water resources management:a strategic approach

Office for Official Publications of the European CommunitiesL–2985 Luxembourg

1998 – 352 pages – 18 x 24 cm

ISBN 92-828-4454-4Catalogue number CF-16-98-966-EN-C

© ECSC-EEC-EAEC, Brussels, Luxembourg, 1998

Reproduction is authorised, except for commercial purposes,provided the source is acknowledged.

Printed in the UK

AbstractTowards sustainable water resources management: a strategicapproach gives guidance to practitioners involved in thedevelopment and management of water resources indeveloping countries. The book is divided into three parts, thefirst of which sets out the rationale for a strategic approach todevelopment co-operation in water-related activity, and the keyconcepts it embraces. The second part contains practicalsuggestions to equip the user to apply the strategic approachto the actual planning and implementation of water-relatedactivities. This part follows the phases of Project CycleManagement adopted by the European Commission inmanaging development co-operation. Aids for the applicationof the strategic approach are set out in part three. This providessupporting material to help users put into action the conceptsand practical suggestions set out in parts one and two.

These Guidelines for European Commission development co-operation in water resources development and managementrepresent an important step in our efforts to confront theincreasing stresses on the world’s supply of fresh water. Fewcountries feel these issues more critically than our partners inAfrica, Asia and elsewhere in the developing world.

We believe that the strategic approach proposed in theseGuidelines helps turn an important corner in water-relateddevelopment co-operation. It advances the principles articulatedat international level and provides a framework in which theycan be applied in an organised fashion. Thus, a concerted efforthas been made to bridge the gap between the principles and theirsound and systematic operational practice.

The Guidelines have been prepared by the EuropeanCommission in close consultation with an expert group ofrepresentatives from the European Union. During the preparatoryprocess, the Commission consulted with many of its ownpartners in the developing world to ensure that the final outcomewas comprehensive, usable, and highly responsive to their needs.Although the main purpose of the Guidelines is to improve thequality and effectiveness of the Commission’s development co-operation, harmonisation with the latest international thinkingwill assure that they enjoy a far wider application in water-relatedactivity generally.

3

Foreword

João Deus Pinheiro Manuel Marin

At the European Commission water resources management isregarded as a priority that has a direct bearing on Article 130u onEC development co-operation policy of the Treaty on EuropeanUnion. Since the Water Decade of the 1980s, European countrieshave increasingly been at the forefront of efforts to improveservice coverage among the poverty-stricken and under-served,and to do so within economic and environmental resourceconstraints. The EC and its partner countries aim to achieve asustainable balance between social and economic objectives,rational management of the environment and enhancement ofnatural and human resources. We regard a balanced approach towater resources and their use across the whole spectrum ofhuman activity as of great importance in our developmentphilosophy.

We confidently expect that these Guidelines will play animportant role in improving the quality of our development co-operation in water-related activity, and sincerely believe that ourpartners throughout the developing world will gain the ultimatebenefit.

4

João Deus PinheiroMember ofthe Commission

Manuel MarinVice-Presidentof the Commission

5

Preface

These Guidelines have been produced for Directorates-General VIIIand IB under the Environment in Developing Countries BudgetLine B7-6200. They aim to improve the quality and impact of theEuropean Commission’s co-operation with developing countries inwater resources management and provision of water-relatedservices. Their use will enable water-related co-operation to make alarger contribution to the process of sustainable social andeconomic development.

These Guidelines set out a strategic approach to themanagement and sustainability of water resources and the deliveryof water-related services, providing a broad perspective of allaspects of water resources activities. They are designed to respondto the needs of EC staff and those of partner country governmentsand other professionals working for the Commission and itsDelegations. Water issues are cross-cutting and the Guidelinesshould enable experts and non-experts to cross disciplinary andsectoral boundaries.

The starting-point for the Guidelines is the emergence of aninternational consensus on water resources issues. A series ofinternational conferences during the 1990s – on water issues intheir own right, and on water resources as an essential componentof sustainable development and environmental protection – hasbeen accompanied by a process of academic and practitionerdebate within a wide range of disciplines and professions. TheGuidelines accept the pre-existence of consensus around the coreprinciples to be applied in water policy and do not attempt to re-argue the case on their behalf. Rather, the core principles havebeen used to generate sub-sets of principles to facilitate theirpractical application.

The Guidelines have been produced in the context of a EC-EU Member States expert working group on water initiatives,under the chairmanship of Amos Tincani of DGVIII. The work hasbeen carried out under the direction of André Liebaert of DGVIIIand his colleagues on the steering group, by a team of experts fromseveral organisations led by HR Wallingford of UK in associationwith the Office International de l’Eau. The team leader was AlanW. Hall and the co-writer and editor Maggie Black. Valuedcontributions and comments have also been received from manyindividuals, and staff from the EU Delegations.

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Contents

Foreword 3

Preface 5

Introduction – The Guidelines: A Summary 9Aim & Scope 11Structure of the Guidelines 12Using the Guidelines 14

Part I: The strategic approach: Rationale and key concepts 17Part I of the Guidelines sets out the rationale for a strategic approach to development co-operation in water-

related activity, and the key concepts it embraces. At the heart of the strategic approach are six sets of guiding

principles, and the organisation of programming contexts into Focus Areas.

Chapter 1: Water resources management: the challenges 19

The acceleration of progress in meeting basic water needs 23International thinking on water: the consensus 26The creation of new partnerships 30Different perspectives: North and South 35

Chapter 2: Managing water resources equitably, efficiently and sustainably: guiding principles 39

Institutional and management principles 42Social principles 45Economic and financial principles 48Environmental principles 50Information, education and communications principles 51Technological principles 53

Chapter 3: Managing water resources equitably, efficiently and sustainably: Programmatic contexts 55

Water resources assessment and planning 59Basic water supply and sanitation services 62Municipal water and wastewater services 64Agricultural water use and management 66

Chapter 4: Overview of actions implied by adopting the Strategic Approach 69

Priority themes for action: 72Institutional development and capacity building ● Participatory structures andgender equity ● Natural resource management ● Expansion of the knowledgebase ● Demand management and pricing ● Awareness raising andcommunications

Part II: The strategic approach: Application 79

Part II of the Guidelines contains practical suggestions to equip the user to apply the strategic approachto the actual planning and implementation of water-related activities during the course of the projectcycle. For all stages of the cycle, checklists have been prepared. Issues and responses are groupedaccording to a set of problem statements within the framework of the principles established in thestrategic approach. In the Identification and Formulation stages, each programme context (Focus Area)is handled separately since issues and responses differ. In other phases, issues and responses are generic,and the same set of checklists applies in every Focus Area.

Chapter 5: Introduction 83

Overview 83Project Cycle Management (PCM) 84How to use the checklists 90

Chapter 6: Programming 93

● All focus areas 95

Chapter 7: Identification 105

● Water resources assessment and planning 107● Basic water supply and sanitation services 114● Municipal water and wastewater services 123● Agricultural water use and management 131

Chapter 8: Formulation 139

● Water resources assessment and planning 141● Basic water supply and sanitation services 147● Municipal water and wastewater services 158● Agricultural water use and management 165

Chapter 9: Financing 175


Chapter 10: Implementation 185


Chapter 11: Evaluation 195


7

Part III: Aids for the application of the strategic approach 205Part III of the Guidelines contains supporting material to aid users who are putting into action the strategic

approach described in Parts I and II.

Chapter 12: Glossary of key concepts 207

Definitions of 51 of the key concepts mentioned in the checklists and elsewhere in the Guidelines, arranged alphabetically.

Chapter 13: Programme and project aids 227

Stakeholder Analysis ● Capacity building ● National and International WaterLaw ● Public-private partnerships (PPP) ● Monitoring Indicators ● Participatory(Rural) Appraisal – (PRA) ● Participatory Irrigation Management (PIM) ● SocialImpact Assessment (SIA) ● Gender Analysis ● Willingness-to-pay surveys ●

Financial and Economic Analysis ● Estimating benefits from water resourcesinvestments ● Environmental procedures ● Environmental economic valuation

Chapter 14: EC funding sources for the application of the strategic approach 277

The EC and Development Co-operation 279

The EC Financing Framework for Development Co-operation 281

Chapter 15: Standard formats for terms of reference 289

Standard format terms of reference for a water resources country study 291Standard format terms of reference for a pre-feasibility study 300Standard format terms of reference for a feasibility study 311Standard format terms of reference for an evaluation study 322

Selected bibliography 331

Acronyms 347

Acknowledgements 350

8

9

Introduction

The centrepiece ofthe Guidelines is astrategic approachfor the equitable,efficient andsustainablemanagement ofwater resources.

Aim and scope

The management of freshwater resources, and of services drawing uponwater for functions central to human life, is of critical importance tohealthy social, economic, and political well-being. Stresses exerted on theworld’s water by demand from growing populations with changingconsumption patterns, and by pollution and lack of environmentalcontrols, have pushed water concerns high on the international agenda.Effective water resources development and management is recognised as akey component of ‘environmentally sustainable development’; poormanagement of the resource can easily become a brake on socio-economic development.

The European Union, through the European Commission (EC) and theMember States, has made a significant contribution to the internationaldebate on the impending world water crisis and the measures needed toaddress it. Full support has been offered to efforts at the internationallevel, through the UN system and in inter-ministerial councils, for newinitiatives on freshwater, and for the recommendations agreed at theSixth Session of the UN Commission for Sustainable Development inApril 1998. The preparation of these Guidelines for Water ResourcesDevelopment Co-operation is a contribution to translating the consensusat the international level into actual co-operation activity. Althoughprincipally intended for use in the context of EC development co-operation, the Guidelines are intended for use by decision-makers ingovernment, the private sector, civil society and internationalorganisations of all kinds involved in water resources management.

The centrepiece of the Guidelines is a ‘strategic approach for theequitable, efficient and sustainable management of water resources’.The approach is based on internationally agreed core principlesconcerning the need to protect the eco-system, and to extend the health-giving and productive properties of freshwater resources equitably,efficiently and sustainably among humankind, with special emphasis onpoorer and underserved people. It provides a comprehensive frameworkfor all activities relating to water resources development; its applicationinvolves a radical change in traditional attitudes towards watermanagement, and the introduction of good practice consistent with theinternationally agreed core principles. The strategy covers the full cycle ofactivity, from national policy-making through implementation ofprogrammes and projects and the subsequent operation and maintenanceof services.

11

The Guidelines: A Summary

The application of the strategic approach facilitates an open andflexible programme process in which sensitivity to changing trends andlocal economic, social and environmental circumstances can be reflected.At each stage of the programming process, the Guidelines provides a setof practical checklists to enable the Guiding Principles at the heart of thestrategic approach to be put into effect in different programmingcontexts, and to identify problem areas likely to be encountered andpotential responses.

A number of commonly repeated core activities emerge from thechecklists, stressing the importance which needs to be attached to whatare known as ‘software’ – or non-technical – issues. The successfulapplication of the strategic approach requires that these activities be givenas high a priority as the technological choices which have traditionallydominated programme and project design. The priority attached to‘software’ activities within the approach can be seen as part of the newthinking on water. The intention is to raise their importance to the samelevel as technological ‘hardware’, not to supplant it.

These activities almost all relate in some way to management andinstitutional strengthening. They can be grouped under priority themesfor action, as follows: institutional development and capacity-building;participatory structures and gender equity; natural resource management;expansion of the knowledge base; demand management and pricing;awareness-building and communications. Attention to such activities willhelp to make the design and management of water resourcesinterventions more cost-effective, efficient and sustainable.

Structure of the Guidelines

The Guidelines begin with a presentation of the rationale for theelaboration of the strategic approach. The strategic approach itself firstidentifies guiding principles for policy development and practical action;it then clusters programmatic activity into four Focus Areas, withinwhich the guiding principles are to be applied; and provides an overviewof priority themes for action implied by use of these frameworks.

12

The Guidelines’ core practical material (Part II) consists of step-by-stepsuggestions for the planning and implementation of activities. Theapproach is progressive, entailing the raising and resolving of issuesthroughout the different phases of the programmatic process bysystematic application of the principles. The overall intention is to equipthose involved in water-related decisions with a framework of principleand operational philosophy to inform decision-making about water-related investments and actions.

In relation to water, as in all areas of development activity, policy andpractice are constantly evolving. The practical suggestions contained inthese Guidelines do not provide exhaustive instructions on how toproceed in every project planning and implementation situation, nor dothey offer answers to every problem the user is likely to encounter. Rather,they articulate a holistic perspective and strategic approach whoseaccompanying practical ‘what’, ‘why’ and ‘how to’ suggestions illustratepolicy and programme directions consistent with this approach. Thesuggestions are an aid to effective problem-solving within the ProjectCycle Management process, not as a definitive and prescriptive manual.(Project Cycle Management, or PCM, is the system for projectdevelopment, funding, and evaluation used by the EC in its developmentco-operation activities.)

The Guidelines should enable all users to upgrade the quality of theirwater-related work; specifically, they elaborate a framework for the EC’sown development co-operation relating to water. This frameworkconforms with contemporary international thinking relating to waterresources management and service delivery, and aims to facilitate theapplication of that thinking within national and sub-national policies,programmes and projects.

The Guidelines are designed to be used on their own, or in tandemwith supplementary tools and data. In the interests of brevity, they do notcontain a full account of the global situation relating to freshwater in itsvarious uses, and the implications for agriculture, public health, energy,etc., but only summarise trends. Other documents, includingComprehensive Assessment of the Freshwater Resources of the World (SEI,1997), can be consulted for information of this kind; references arecontained in the bibliography.

13

14

Using the Guidelines

The Guidelines are structured in three parts, as described below.

Part I: The Strategic Approach: Rationale and key concepts

The Guidelines opens with rationale for the strategic approach. It thenelaborates its governing principles and the proposed programmingframework – divided into Focus Areas – for their application. The term‘Focus Areas’ has been adopted from Agenda 21, the key document of the1992 Earth Summit, as the most straightforward way to describe theprogramming contexts into which water resources management andservice delivery fall.

The chapters in Part I are as follows:

Chapter 1: Water resources management: the challenges describes themany challenges facing development co-operation relating to water in thecontemporary world. It highlights the competing stresses to which theresource is subject, arguing the case for a holistic approach to waterhusbandry and use. The chapter describes the international consensus onpolicy and practice that has emerged from the continuing process ofmacro-level discussion relating to water, and the practical challengesstemming from the new perspective. It also explores key water-relatedchallenges in the contemporary world, including the pressures onresources and freshwater quality imposed by population growth,urbanisation, and environmental constraints, and their potential forconflict.

Chapter 2: Managing water resources equitably, efficiently andsustainably: Guiding principles sets out the first key element of thestrategic approach. It starts by describing the core principles consistentwith the international consensus, and proceeds to more detailedprinciples under the following headings: institutional and management;social; economic and financial; environmental; information,education and communications; and technological.

Chapter 3: Managing water resources equitably, efficiently andsustainably: Programmatic contexts describes the second key element ofthe strategic approach: the contexts in which the guiding principles are tobe applied. The contexts – or Focus Areas – are as follows: Waterresources assessment and planning, which includes all activitiesdesigned to assess the availability of the natural resource, protect itsquality, and plan its use; Basic water supply and sanitation services,which covers service provision in rural areas and marginal or poor urbanareas, usually consisting of low-technology, community-managedsystems; Municipal water and wastewater services, which covers major

15

urban and industrial installations and systems, including wastewatertreatment and sewerage systems; and Agricultural water use andmanagement, which covers installations and activities related toagricultural use of water, especially for irrigation.

Chapter 4: Overview of actions implied by adopting the StrategicApproach provides a summary description of the types of actionaddressed comprehensively and systematically in Part II. These aregrouped according to priority themes for action.

Part II: The Strategic Approach: Application

This contains practical suggestions to equip the user to apply thetheoretical information provided in Part I to the actual planning,development, and implementation of development activities related towater. Their purpose is to enable users to improve the quality of water-related development co-operation, according to a coherent vision ofoverall objectives relating to the resource as a whole, and subsidiaryobjectives relating to the specific programme or project.

The first chapter (Chapter 5) in Part II consists of an introduction toProject Cycle Management (PCM), followed by an introduction to thechecklists. PCM envisages that projects are planned and implementedwithin a phased structure; the strategic approach is intended to be appliedaccording to PCM phases. These phases are as follows: programming;identification; formulation; financing; implementation; andevaluation.

Thereafter, separate chapters of the Guidelines (Chapters 6–11) takethe form of checklists of key issues and potential responses, according toPCM phases. Some chapters contain checklists which are generic to allFocus Areas; others contain separate sets of checklists specific to eachFocus Area. Key issues and potential responses are grouped according tothe application of the principles articulated in Part I. Thus, in Chapter 7on project identification, in the checklists for the Basic water supplyand sanitation services Focus Area, key issues and responses relating toinstitutional and management questions are grouped, followed by thoserelating to social issues, and so on through all the categories of principles.For a complete description of their organisation, the user is referred to theintroductory section on the checklists in Chapter 5.

The use of the checklists is intended to assist all those participating inthe development and implementation of water-related interventions,whatever their existing level of expertise and experience, to ensure that allrelevant issues are addressed in a planned and coherent manner. Userswill, for example, be able to check that all elements of project design havebeen addressed; assess whether further studies or supplementary projectsare indicated; determine whether the sustainability of the resource and/orthe service has been sufficiently considered; review programmaticpartnerships, structures, and reporting mechanisms; and advise donorand recipient government officials on appropriate remedial actions.

Part III: Aids for the Application of the Strategic Approach

This part of the Guidelines supplements the core material in Part II,providing technical information which users can draw upon to carry outactions they have identified by applying the checklists in Part II.References are included to studies and manuals which can be drawn uponin water-related work, including EC and other internationally recognisedmanuals on such subjects as environmental assessment, gender analysis,women in development, participatory appraisal, economic and financialanalysis, social impact assessment, capacity building and human resourcesdevelopment, and stakeholder analysis.

The chapters in Part III are as follows:

Chapter 12: Glossary of key concepts contains definitions of key conceptsmentioned in the checklists (and elsewhere in the text). Some of theseconcepts may not be familiar to all users; or they may sound familiar buttheir specific meaning within these Guidelines may require elucidation.The concepts in the glossary range from ‘capacity-building’ to ‘genderanalysis’, ‘international water law’ to ‘tariff structures’; they are arrangedalphabetically. The attention of users is drawn to this chapter, which isdesigned to be used in conjunction with the checklists and may needto be consulted in advance of applying the Strategic Approach.

Chapter 13: Programme and project aids consists of different types ofstudies and methodologies recommended in the checklists, most of whichcan be used to build up the information and knowledge base at differentstages of the PCM cycle. The intention is to provide sufficientinformation to indicate the parameters of a particular kind of study andwhat its outcome would consist of, not a full scale step-by-stepmethodological manual.

Chapter 14: EC Funding Sources for the Application of the Strategic Approachdescribes EC structures and funding instruments in the context of water-related development co-operation, including Decentralised Co-operation.

Chapter 15: Standard formats for terms of reference contains materialstandard for all EC development co-operation.

Finally, a selected bibliography is provided of the principal policydocuments produced by bilateral donors, donor organisations andspecialist institutions.

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Contents - Click on the links below to move to the appropriate page

The acceleration of progress in meeting basic water needs 23

International thinking on water: the consensus 26

The creation of new partnerships 30

Different perspectives: North and South 35

1Chapter

Water resources management: the challenges

Demands uponthe world’sfinite supply ofwater posethreats to boththe quantityand quality of acommodityessential tohuman life andhealth

1

ENVIRONMENTAL STRESSES imposed bypopulation growth, urbanisation andindustrialisation have become aprominent theme of internationalconcern in recent years, especially sincethe 1992 Earth Summit in Rio de Janeiro.One of the natural resources mostaffected is freshwater. Demands uponthe world’s finite supply of water posethreats to both the quantity and qualityof a commodity essential to social andeconomic activity of all kinds, and tohuman life and health. This hasconferred on water a new level ofpolitical attention, which needstranslation into political commitmentwithin and between states to theprotection of a vital resource. Currentfears concerning climate change merelyexacerbate the urgency of the freshwatersituation.

There are wide differences regarding

availability of water between regions andcountries, especially between those intemperate and tropical zones. It isestimated that 230 million people live in26 countries now classified as water-deficient (mostly in the Middle East,Mediterranean and Sub-Saharan Africa),and the number of affected countries islikely to grow rapidly. Some major urbancentres already face serious watershortage and water pollution crises, inwhich water-dependent agricultural andindustrial activity play an importantpart. Questions relating to waterresources management and usage thuscut across many productive and socialsectors, including agriculture, fisheries,industry, urban development, energyand public health. At present, fewmechanisms exist at suitable levels ofgovernment to mediate clashes ofinterest over water husbandry and use.

21

Water resources management: the challenges

Africa

Asia

Europe

North America

Latin America

0 20 40 60 80 100 120

1950

2000

Water availability per capita (000m3 per capita) Source: FAO, 1996

There are real prospects of seriousdisputes within and between states overwater resources in the not-too-distantfuture.

Water’s special character as critical tosocial and economic activity has grantedit a special status in belief systems and,in the modern era, in public policy.Freshwater sources have traditionallybeen regarded as something in which allmembers of the human communityhave rights. Where systems for watersupply are the product of public healthor other types of engineering, they havealmost invariably been provided fromthe administrative purse or heavilysubsidised. And the use of water in thevarious social and economic contextshas typically been unregulated andcharges made for it well belowoperations and maintenance costs.

There are important implications ofthis in an era of water stress, amongwhich are water profligacy and wasteful,or mismanaged, investments. In the faceof shortage and environmental concern,international fora have called for water

to be seen as an economic good with arealistic price-tag, whose costs must bemet by consumers to ensuresustainability of services. However, aview which upholds water as acommodity to be bought and sold, inwhich the community and especially itspoorer members might thereby lose theirrights, cuts across deeply held beliefs andlong-established ideologies.

Lack of a holistic perspectiveregarding water has also led to a verydispersed and confused system of watermanagement. Responsibilities for themanagement of the resource, and theconstruction of dams, pipelines,pumping stations, treatment plants,sewerage systems, not to mention theirmaintenance, are distributed around avariety of administrative departments.There is, in reality, no such thing as a‘water sector’. Water-related activities arepositioned within specific sectors andmanaged by sector-based institutions.Water management thus tends tobecome lost within sectoral interestswhose priorities are elsewhere; they have

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1930 1940 1950 1960 1970 1980 1990 20000

1000

2000

3000

4000

5000

6000

Agriculture

Industry

Municipal

Reservoirlosses

Estimated annual world total and by sector Source: FAO, 1993, The state of food and agricultrure

km3

per

yea

r

to do with economic productivity – suchas irrigated crop yield, or to social good –such as disease control. As the waterresource is finite and its utilisation needsto be equitable, efficient and planned, allsectoral strands should be interwoven.However, integrated and cross-cuttingstructures are notoriously difficult forgovernments and donors to create andadminister. Water-related schemes andactivities are no exception.

The need to examine in tandem theentire range of uses to which freshwateris put, and to design services whichneither squander precious resources norfail to respect other, competing andcomplementary, water needs, has onlybecome widely appreciated in the veryrecent past; its translation into policyand programmatic work is still in anearly phase. To respect this new holisticperspective, and work out ways in whichto make the management and protectionof water resources compatible with thedevelopment of systems serving all typesof customers, is a vital part of thechallenge facing water-relateddevelopment co-operation today.

The acceleration of progress inmeeting basic water needs

Survival and health

When water first rose to internationalprominence in the 1970s, it was as oneof the ‘basic needs’ common to allhumanity – food, water, shelter, meansof livelihood –whose fulfilmenthad become thestated goal ofinternationaldevelopmentpolicy. Thefulfilment ofhumankind’s basicneed for a supplyof safe drinking water, as well as for asafe means of disposing of human waste,remains an important part of today’schallenge. There has been some progresstowards satisfying these two basic needs,but not enough.

The UN’s ‘International DrinkingWater Supplies and Sanitation Decade’ ofthe 1980s was declared by the UN Water

23

Water’s special characteras critical to social andeconomic activity hasgranted it a special statusin belief systems and inpublic policy.

Urban Water

Rural Water

Urban sanitation

Rural sanitation

0 10 20 30 40 50 60 70 80 90

1990 1994

Global water and sanitation 1990 and 1994

percentage population coverage

Conference at Mar del Plata in 1977. TheDecade focused on the improvement ofpublic health by the expansion of servicecoverage; its slogan was ‘Water andSanitation for All’. Despite the increasein attention and resources generated bythe Decade, achievements inquantifiable terms fell short of statedtargets. Only in the context of ruralwater supplies did coverage progressmanage to outstrip population growthand urbanisation. Internationalcommitment was reiterated in 1990 tothe goal of ‘Water and Sanitation for Allby the Year 2000’, but nobody nowexpects the goal to be met. Oneconstraint is the lack of adequateinternal and external financing forservice spread, for which an estimated$50 billion annually would be required.Resources on this scale, whether frominternal or external sources, are unlikelyto be forthcoming.

Calls for increases in developmentco-operation for drinking water supplyand sanitation systems have beenrepeated during the 1990s. In the earlypart of the decade, investments in thisarea of water-related activity (the onlyone for which official developmentassistance – ODA – totals are available)declined as a proportion of ODA, from8% to 5%. Since ODA as a whole alsodeclined, water and sanitation thereforereceived a smaller slice of a smaller cake.Since the mid-1990s, support to waterand sanitation has increased, albeitmodestly, with many European countriesraising their contributions. A highproportion of ODA expenditure hastraditionally been concentrated insophisticated urban water supply andsewerage schemes.

Whatever its shortcomings inmeeting its quantitative targets, theWater Decade – at least at the theoreticallevel – changed the face of internationaldevelopment co-operation in domesticwater supplies and public health. Thiswas because Water Decade co-operation

pointed up previous shortcomings inpolicy and practice. These included:over-emphasis on costly andsophisticated technology, whichproduced services beyond the capacity ofmanagement bodies to maintain andsustain; lack of any sense of ownershipby service stakeholders and users andtheir consequent neglect; a failure toapply gender analysis and recognise therole of women in water-hauling andtheir influence over domestic waterquality and use; inadequate emphasis onenvironmental sanitation, and on healtheducation to enable uneducated serviceusers to appreciate the implications ofwater and waste disposal for familyhealth; and the need for cost-effectiveness in all areas of activity inorder to use scarce resources wisely.

Food and livelihoods

Although water is also needed to supportother basic needs – especially food andlivelihoods – issues relating to the use ofwater for economic production has notbeen accorded the same level ofdiscussion and scrutiny. Agriculture usesmore water than any other area ofhuman activity, absorbing around two-thirds of withdrawals from rivers, lakesand aquifers; around 40% of the world’sharvest is estimated to depend onirrigation. A higher proportion of futuregains in food production – 60% – areexpected to come from irrigated land,and there is no doubt that future globalfood supplies cannot be secured withoutimprovements to irrigation efficiencyand adequate investment.

However, donor investments inirrigation have been falling over the pasttwo decades. For example, World Bankinvestment has fallen dramatically, fromUS$2.2 billion in 1978 to US$750million in 1993, and the trend appearsto be similar in most external supportagencies. This is partly a result ofdisillusion following past support given

24

to large-scale construction of dams,canals, and river diversion works. Thesehave gained a poor reputation because oflower than expected economic returns,controversial resettlement programmes,and negative environmental impactssuch as soil salinisation and water-logging. Lack of interest in investmentin irrigation also stems from lowagricultural prices and complacencyabout the world food supply. The 1996World Food Summit demonstrated thatthis complacency was misplaced;concern for world food security is nowgrowing. Environmentally sound waysneed to be found of expanding irrigatedagricultural production, especially offood, while reducing water use.

Although less pertinent to thefulfilment of basic needs, the growth ofindustrial and manufacturing processeswhich depend on water cannot be leftout of the picture. In many parts of thedeveloping world, industrial usage ofwater is rising rapidly alongside theurbanisation process. Not only does thisimpose conflicts of interest over waterflow volumes between urban users and

farming populations; it can also createsevere problems of downstreampollution with far-reaching implicationsfor rural livelihoods and public health.The necessary investments in wastewatertreatment – which is seriously under-funded – and the need faced by cities totap freshwater resources from everfurther distancesare causing coststo rise and thepotential forconflicts betweenagricultural andindustrial users togrow.

The challenge,therefore, in termsof accelerating theprovision of waterservices to satisfy basic human needs isnot simply one of maintaining a highprofile for water needs and reversing thepolitical trend which has led to under-resourcing. It includes absorbing thelessons learned from past mistakes,many of which were highlighted by theWater Decade; it also means addressing

25

The Water Decadechanged the face ofinternationaldevelopment co-operationin domestic watersupplies and publichealth

Latin America (16)

Near East (10)

Africa (14)Asia (112)

Developed countries (98)

Irrigated area by region, 1990 Source: FAO, 1996

figures in brackets million hectares

all uses of water – agricultural andindustrial, as well as human survival andpublic health – within one strategicapproach, and identifying a common setof principles to guide that overallapproach and sectoral sub-sets of it.

International thinking on water:the consensus

A number of concerns, in addition tothose surfacing as a consequence of theWater Decade, have subsequentlyexerted a significant influence oninternational thinking about water.Some – such as environmental stresses,water scarcity and potential conflict –have already been touched upon. Othersalso need to be mentioned as part of thecontext of the new internationalconsensus on water.

The end of the Cold War hasprovided lasting reverberations ininternational affairs, including changesin the climate surrounding developmentco-operation. Economic, environmentaland ‘common good’ arguments havecome to assume more importance, bothin the justification of development co-operation per se, and in the nature of thedevelopment approaches favoured bydonors. Concern with poverty reduction,democracy and human rights have alsoincreased the emphasis on equity andparticipatory approaches. The expressionof concern has not however beentranslated into increased levels of ODA,which has been subject to budgetarypressures and undergone a decline.

At the same time, the disappointingresults of much development co-operation, coupled with similardisappointments associated withstructural adjustment programmes, hasled to systemic analysis of the contextand modalities of development co-operation. The need for efficacy andcost-effectiveness in the application ofODA resources, both from theperspective of intended beneficiaries and

from that of donors, has becomecompelling for pragmatic reasons,independently of the changinggeopolitical and ideological framework.

Although the overall purpose ofdevelopment co-operation remains thesame – to redress imbalances and createopportunities in favour of the world’sunderprivileged and underserved – anumber of new concerns have emerged.Without engagement with these, theoverall purpose of co-operation indevelopment is regarded by keyinternational donors as unattainable.These include the need for goodgovernance, institutional reform,administrative decentralisation,participation and involvement of civilsociety and the private sector.Conditionalities associated withdevelopment co-operation today relateto this new paradigm. Its parameters areas pertinent for water-relateddevelopment co-operation as for otherareas, and the new internationalthinking on water has taken them onboard; respect for them is an integralpart of these Guidelines.

While the debate on water in the1980s was largely focused on water andsanitation as adjuncts to public health,in the 1990s the scope of the debatedramatically expanded and the widerfocus became the management and useof water as part of environmentalprotection and sustainable development.The lessons concerning water formeeting basic needs learned during the1980s, especially the public healthlessons, were still prominent. But theconsensus surrounding those lessonsbegan to merge with a wider consensusembracing water resources managementgenerally, and reflecting environmentaland economic concerns as well as goodgovernance and the other elements ofthe post-Cold War developmentparadigm.

Thus a number of overlapping andcomplementary trends have prompted asearch for a new and holistic approach

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for water resources management. Theapproach needs to encompassenvironmentally-sound watermanagement; food security especiallyamong the poor; appropriatetechnology; private sector involvement;reduction of subsidies; decentralisationof decision-making to the lowestappropriate administrative level; userparticipation in services; reform ofinstitutions and regulatory frameworks;and cost recovery and pricing.

The backbone of the consensus

The backbone of this consensus isexpressed in the key principlesarticulated at international meetingsheld in Copenhagen (the CopenhagenInformal Consultation on IntegratedWater Resources Development andManagement, November 1991), andDublin (the International Conference onWater and the Environment, January1992), in the run-up to the EarthSummit. Their expression at Dublin wasas described in the box below. TheDublin principles formed the basis ofChapter 18 (on freshwater resources) of

the Earth Summit’s key discussiondocument, Agenda 21. Chapter 18identified seven focus areas for action(see box).

These principles were subsequentlyendorsed and an Action Plan prepared atthe post-Rio Ministerial meeting onwater and sanitation at Noordwijk in theNetherlands (1994). They have beenconsistently cited by all the majorinternational organisations involved inwater-related development policy,including the Development AssistanceCommittee (DAC) of the OECD.Although there is continuing debate onsome – for example, whether watershould be regarded as an ‘economicgood’ – there is broad consensus aroundthem, and a stated determination toidentify actions consistent with theirimplementation within a framework ofintegrated water resources management.

The drive to operationalise theseprinciples was given new force by theUN General Assembly Special Session(UNGASS) in June 1997, which called forurgent action in the field of freshwater.EU member states and the EC supporteda freshwater initiative whose first

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Dublin Principles

● Fresh water is a finite andvulnerable resource, essential tosustain life, development andthe environment.

● Water development andmanagement should be based ona participatory approach,involving users, planners andpolicy-makers at all levels.

● Women play a central part in theprovision, management andsafeguarding of water.

● Water has an economic value inall its competing uses and shouldbe recognised as an economicgood.

Agenda 21

● Ensure the integratedmanagement and developmentof water resources.

● Assess water quality, supply anddemand.

● Protect water resource qualityand aquatic eco-systems.

● Improve drinking water supplyand sanitation.

● Ensure sustainable water supplyand use for cities.

● Manage water resources forsustainable food production anddevelopment.

● Assess the impact of climatechange on water resources.

manifestation was an Expert GroupMeeting in Harare, Zimbabwe, inJanuary 1998. In March 1998, anInternational Conference on Water andSustainable Development held in Parisdeveloped a Programme for PriorityActions. In April 1998, the 6th session ofthe UN Commission on SustainableDevelopment (UNCSD) held in NewYork made recommendations oncomprehensive strategic approaches tofreshwater management.

These recent discussions at the macrolevel indicate that water is indeedgaining international political ground.However, much more effort is neededbefore the consensus can be said to havebeen widely translated into practicalaction on the ground. In particular, aswas pointed out by UNGASS in 1997,intergovernmental statements of intentregarding freshwater will only yield fruitin terms of the necessary policy andinstitutional restructuring at nationallevel if the international community iswilling to provide additional financialresources to support itsrecommendations.

Nonetheless, the internationalunanimity of vision concerning water isan important feature of the policy-making environment. It gives force andrecognition to the view that ‘more of thesame’ approaches applied in the past areunsustainable. Not only do suchapproaches fail to address water scarcityand environmental issues; they lead to awider gap between served and unservedpopulations. The challenge now is totranslate the consensus within theinternational community concerningwater from a rhetorical to a practicalexistence.

There is still a gap between ideas andactions endorsed in the macro-leveldebate, and their translation into policy-making structures and programmes indeveloping country settings. Some

projects stand out as beaconsilluminating potential new directions.But many programmatic activities andprojects are only just beginning toaddress the new list of concerns or haveimplemented only a handful. TheseGuidelines are intended to help theprocess along where it matters most, inlocations where absence of services, orservice inefficiency, unsuitability, orunsustainability have had damagingeffects on people and communities.

The promotion of river basin co-operation

The theme of integrated water resourcesmanagement has led to the promotionof the river basin as the logicalgeographical unit for its practicalrealisation, notably by the EU, the WorldBank and the Asian Development Bank.The river basin offers many advantagesfor strategic planning, particularly athigher levels of government, thoughdifficulties should not beunderestimated. Groundwater aquifersfrequently cross catchment boundaries,and more problematically, river basinsrarely conform to existing administrativeentities or structures. Although riverbasin organisations should not be seenas a panacea, they do provide a soundgeographical basis for integrated watermanagement.

In many parts of the developingworld, major rivers run through two ormore countries and their transboundarycharacter complicates the practicalitiesof river basin management. Watersharing between states through whichrun such major rivers as the Ganges,Nile, Jordan and Mekong is self-evidently an important political andstrategic issue for the states concerned.There have been in the past too manyinstances of projects designed to meetnational objectives which ignore their

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impacts on the river basin as a wholeand neglect the potentially conflictingneeds of downstream users in othernational or – in federal countries – sub-national states. The recent Conventionon the Non-navigational Use ofInternational Water Courses (April 1997)provides a basis for establishingcommon rights in transboundary riversand a framework for the management ofinternational river systems.

In March 1998, a Round Table washeld in Petersberg, Germany, on Co-operation for Transboundary Water

Management, which produced thePetersberg Declaration. The Round Tablefocused on instruments to support theuse of water as a catalyst for regional co-operation rather than as a source ofpotential conflict. The importance ofmechanisms for promoting river basinco-operation is becoming more widelyrecognised, and is reflected in supportfor the International Network of RiverBasin Organisations (INBO).

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Middle East Water Data Banks Project

A Multilateral Working Group on Water Resources is one of five such groups set upwithin the context of the Middle East Peace Process to promote regional co-operation between the Core Parties (Palestinians, Jordanians and Israelis). ARegional Water Data Banks Plan to improve availability of data for water managers,planners and operators was agreed by the delegates in 1994, as was theestablishment of an Executive Action Team (EXACT) to assist in the co-ordination ofthe plan. EXACT was formed in 1995 and is composed of two representatives ofeach of the Core Parties as members, and two representatives from four otherparties as facilitators: European Commission, US, Canada and France. EXACT isexpected to provide technical oversight of the Water Data Banks Plan.

The general objective of the Plan is to create, in the case of the Palestinians andto enhance, in the case of the Jordanians and Israelis, a hydrometric data basefacility, including meteorological, hydrological, hydro-geological and water qualitydata. Activities in the following areas are foreseen: communications andinformation, network review/evaluation, field data collection, laboratory analysis,data bank quality assurance and quality control. The Implementation Plan has 40recommendations, one of which relates to specific assistance to the Palestiniansand the other thirty-nine to all three Core Parties.

The aim of the project is to facilitate the execution, in whole or part, of 14 ofthe 40 recommendations. The main activities are the development of ahydrological bulletin, identifying and inputting historical, meteorological and waterquality data. The project includes technical assistance, training and provision ofequipment.

The Core Parties have expressed an interest in extending activities undertakenunder the auspices of EXACT. Particular areas include: analysis of wastewaterquality and quantity; installation of additional field measurement equipmentincluding advanced data collection and transmission equipment; and training indata analysis.

The creation of newpartnerships

Until the recent past, water serviceprovision has been primarily theexclusive concern of governments andmunicipal authorities, in accordancewith standard philosophies and beliefsystems concerning a ‘free’ commodityessential to human life. However, therecord of government-delivered servicesin some settings, coupled with the newappreciation of water’s scarcity andvalue, and with the shortage of resourcesfor extending services, have led to areappraisal of potential actors and theirroles. The building of alliances andpartnerships with a wide range ofstakeholders has become a themefamiliar within development co-operation for water-related activity, as inother areas.

The commercial private sector

From the programming perspective, oneof the actors whose growing role ishighly significant is the commercialprivate sector, especially private watercompanies. The last decade has seen areaction in many countries against thestate as the automatically preferredowner and operator of water-relatedservices, including sewerage andirrigation works. There is now widerappreciation that the traditional waterdepartment or public utility mode ofsupply is only one of a range of options.

The theme of public sector/privatesector partnerships, with governmentassuming a facilitating and regulatoryrole instead of an all-providing role, andof privatisation of some part of servicedelivery, constantly re-occurs in waterpolicy statements. The popularity of thistheme can be credited to the promiseheld out that involvement of the privatecommercial sector helps to overcomesuch widespread problems as budgetary

shortages, poor management and lack ofcost recovery. Governments haveconcluded that delegation of themanagement of public services to privatecompanies offers a potential solution tofinancial constraints and systemicproblems of inefficiency.

Among the shortcomings of publicly-owned and -run utilities is that, beyondthe stage of implementing projectsfunded, or supported, by donors, theytypically commit inadequate resources tofuture operation and maintenance.These bodies may, in addition, sufferfrom weak technical know-how andmanagerial capacity to run the newinfrastructures effectively. Meanwhile,tariffs for service provision are often setat uneconomic levels; there is extensiveillegal ‘leakage’ from systems; and evenexisting tariffs are not collected. Withina few years, service infrastructures mayfall into disrepair and becomeunsustainable. Unless specificallymandated to do so, water authorities –especially in urban areas – are oftenalready deficient in reaching poorercommunities; the prospects of theirdoing so are reduced where they areuneconomic in serving better-offcommunities and cannot generate asurplus.

There are many alternative options tofull public ownership and operation ofwater agencies, involving a greater orlesser degree of participation by theprivate commercial sector. These optionscan be ranged along a spectrum at oneend of which the government retainsfull responsibility for operations,maintenance, capital investment,financing and commercial risk; at theother end of the spectrum, theseresponsibilities have been devolved toautonomous, commercialised utilities orcompanies. In between are situationswhereby the management of existingsystems, or the construction of newinstallations, has been organised

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through private operators under variouskinds of contractual arrangementsincluding leases (affermage), concessionsand build-own-operate-transfer schemes.

Most of these options applyprincipally in the context of municipalwater and wastewater treatment, andalso in the context of major irrigationworks and environmental, includingleisure and transport, waterwaymanagement. The role of the publicauthorities as regulator is to ensureequity, and monitor subsidy levels andthe tariffs paid by water consumers. Thepublic authorities are also responsible fordetermining, or at least approving,investments to be made, and forensuring the control of privatemanagement within the framework ofpartnership and a clear separation ofroles.

The community-based and informal‘private sector’

Unless specific efforts are made toincrease service coverage to poor andunderserved communities, their

domestic needs usually remain unmet byexpansions of conventional water supplyand sewerage schemes. Manygovernments undertake or facilitate suchspecial efforts for rural areas; less oftenfor urban areas. These rural schemes arefrequentlysupported – evenmade possible –by developmentco-operationfunds supplied bybilateral agencies,UN and othermultilateralsources includingEC, or byinternationalNGOs. Their effectiveness often dependson partnership with local community-based organisations, whetheradministrative entities – such as VillageCouncils – or non-governmental;sometimes both.

Local NGOs and their internationalcounterparts have attracted considerableattention in the recent past because oftheir relative effectiveness in reaching

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South India case study: NGOs as intermediaries in transferring service maintenance

Extensive breakdown of handpumps in Visakhapatnam District in Andra Pradeshled to an NGO initiative in the early 1990s to transfer maintenance responsibilitiesfrom the district government to local communities. Oxfam, the British NGOWaterAid, and Viswasamakya, a 15-member local NGO network, were involved.

The local NGOs worked with communities to establish water and sanitationcommittees, to be responsible for establishing a water fund to pay for handpumprepairs. This required reversing the previous local understanding that thegovernment was exclusively responsible for handpump maintenance. Villagemechanics were trained by government mechanics to carry out repairs, and in aninterim period, were paid a stipend for repair work by the NGOs. Eventually, theyare expected to become self-employed, remunerated by the water committees.

Within three years, 400 water committees were formed, and 50 had raised localfunds. In 1996/97 2,000 pumps were repaired. The community infrastructure forrepairs and maintenance is now in place. The outstanding question is whether itcan be successfully sustained over the long term.

The record ofgovernment-deliveredservices, and the newappreciation of water’sscarcity and value, haveled to a reappraisal ofpotential actors and theirroles.

the poor and their knowledge andexperience of working closely withcommunities. They also have areputation – in many cases deserved – ofachieving much with little, and theirmethods have therefore attractedattention for cost-efficiency reasons.Certainly without the work of NGOs, thewillingness and ability to pay for watersupplies (and occasionally, forsanitation) found even in the mosteconomically marginal of communitieswould probably still be unrecognised.Because of the pioneering role they haveplayed in demonstrating thepracticability of user participation in themanagement of all kinds of communityimprovement schemes – including foodproduction, catchment dams, small-scaleirrigation, disease control and publichealth – NGOs are now regarded as partof the mainstream in water developmentco-operation. However, the size of theircontribution is proportionately small,and not all are equipped to operateeffectively without technical support.

Thus, although the involvement ofthe ‘private sector’ is also advocatedinternationally as a way of reachingpoorer communities with basic watersupply and sanitation services with littleadditional administrative expenditure,the participation of civil society impliesthe involvement of a very different kindof ‘private sector’. Their motivation iscommunity benefit; commercial profitplays almost no role except at a verymarginal economic level: for example, inthe manufacture by village artisans oflatrines. Indeed, the lack of opportunityfor cost recovery which is oftenperceived as an automatic corollary ofexpanding services for the poor is thereason for the dependence of manydeveloping country governments onexternal co-operation for such schemes.Even those which do involve user feesand participatory management stillrequire governmental or extra-

governmental support for componentssuch as human resources and capacitybuilding by local governmentdepartments and appropriate NGOs.

Some schemes are operated by NGOsand community associationsindependently of government-runservices and without their support, albeitwith their knowledge and within anestablished framework. But these are inthe minority; local communityassociations more often occupy apartnership role with the authorities onthe one hand, and private commercialmini-enterprises on the other. Theirimportance is that they have recognisedthat, even among the poorestcommunities, cost recovery is needed toprovide services and ensure efficientO&M; and they have managed todevelop user fee systems. In some casesthis is in contrast to official bodies whogo on providing free or heavilysubsidised services on grounds of ‘publicgood’ while often failing to serve thepoor. As in the case of the private sector,the challenge here is to recognise thepotential of partnerships with NGOs andincorporate their role appropriately intoproject design and implementation.

In towns and cities, the informalprivate service sector plays asupplementary role. Residents of slumsand shanty-towns often have to fend forthemselves outside the purview ofgovernment services; their water is oftensupplied by small-time vendors andwater-carriers, and human waste disposalservices are operated by ‘sweepers’ orcarters. The fact that those they providewith water (or sanitation) often pay forthe service at rates more expensive thanrates charged to customers receivingsubsidised mains services is often cited asproof that the poor can, and will, pay forwater supplies and/or sanitation. Inreality, they have no alternative todependence on informal sectorprovision; this ‘willingness to pay’ is

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rarely, if ever, the basis for investment byauthorities and formal sector companiesin such areas. Meanwhile, the privateservice providers who do supply themare unregulated and often exploitative.

There is undoubtedly scope for theincorporation of manufacturers andsuppliers in the informal private servicesector into basic water supply andsanitation services, and into small-scaleirrigation schemes. A range of artisans,masons, mechanics, tubewell-sinkers andlocal handymen are involved ininformal public health and agriculturalwater use occupations. The challenge isto build on their existing skills, andincorporate their activities intoprogrammatic and project frameworks inan appropriate, equitable, and well-regulated manner. As in the case of theprivate commercial sector, it is necessaryto ensure that the participation of theinformal sector is not exploitative, andsupports rather than supplants efforts toextend good quality services to poor andunderserved communities.

Multilateral donors including the UNsystem

The member countries of the EuropeanUnion are among the largest donors todevelopment co-operation, bothbilaterally and through multilateralchannels including the EC. ManyEuropean countries have longstandingexperience in the developing world andclose historical ties with many countriesand regions where water-related issuesare critical. Countries in Africa, theCaribbean and the Pacific (ACP) have aninnovative partnership arrangementwith the EU under the LoméConvention. This unique relationshipenables a shared vision of policypriorities to be promoted. (See Part III, ECResources.)

The most influential multilaterallending organisation offering support to

water resources development andmanagement is the World Bank. TheBank is active within the full range ofeconomic and social water-relatedsectors and has been a leading exponentof the new agenda in water policy. TheWorld Bank’s own water policyemphasises the adoption of acomprehensivepolicy framework,decentralisedmanagement ofservices, economicpricing of water,and greaterparticipation bystakeholders. Amajor role isforeseen forcommunity organisations and theprivate sector in planning, financing anddelivering services. The regionalDevelopment Banks echo the WorldBank prescriptions, with a regionalfocus.

By its declaration of an InternationalDrinking Water Supply and SanitationDecade (1981-90), the UN acted ascatalyst in promoting the internationaldrive for improved basic water supplyand sanitation services. The ‘WaterDecade’ was spearheaded by the UNDevelopment Programme (UNDP), and anumber of other UN organisationsactively participated. Since the UNConference for Environment andDevelopment – the 1992 Earth Summit– which precipitated a major re-thinkingabout water as an essential naturalresource, the UN has also provided thekey fora in which the new agenda forwater resources management has beenarticulated. After the Earth Summit it setup a new international mechanism, theUN Commission for SustainableDevelopment (UNCSD), in which theinterrelated dimensions of watermanagement and environmentalsustainability can be addressed.

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Some official bodies goon providing a free orheavily subsidised serviceon grounds of ‘publicgood’ while failing toserve the poor.

Within the UN system, a number offunds, programmes and specialisedagencies have long been involved insome way with water-related activity,usually by providing technical expertiseor material assistance to projects ofdifferent kinds. At the highest level, UNinvolvement in water is co-ordinated bythe Administrative Committee onCoordination (ACC) Subcommittee onWater Resources, to which theDepartment for Economic and SocialAffairs (DESA) functions as Secretariat.UN organisations offer a range ofpartnership possibilities with othermultilateral and bilateral donors in allareas of programming. The full range ofUN involvement in water is very broad;only the particular concerns of theprincipal organisations and frameworksare highlighted here.

The key players are: UNDP,(economic production, technology andinfrastructure); World HealthOrganisation (WHO) and UNICEF (theUN Children’s Fund), (public health andcommunity development); the UNEnvironment Programme (UNEP) andUNCSD, (environmental considerations);the UN Educational, Scientific andCultural Organisation (UNESCO) andthe World Meteorological Organisation(WMO), (hydrology and climate); theFood and Agriculture Organisation (FAO)and the International Fund forAgricultural Development (IFAD) (wateruse in agriculture). In keeping with theirmandates and operational modalities,UN organisations interact with thegovernmental policy-making andadministrative apparatus at differentlevels, some only at the macro level, afew right down to micro. There areobvious areas of joint concern, mostconspicuously in the context of basichuman needs, infrastructure,community development, food securityand public health.

All of the UN organisations’ water

policies subscribe to the Rio principlesand nowadays position their activitieswithin the ‘sustainable development’framework. All equally echo the need fora comprehensive policy towards waterwhich considers the protection of theresource, and its management and use inthe light of competing requirements.There have also been a number of jointinitiatives between UN organisations,often with World Bank partnership. TheWater Supply and SanitationCollaborative Council, set up in 1991 inthe follow-up to the Water Decade, has awide-ranging membership and enablesgovernmental and non-governmentalplayers to take part in the ongoingpolicy debate.

International networks and expert bodies

A number of other international andnational bodies exist which can offerresearch and technical assistance in thecourse of development co-operationactivity relating to water. Many countrieshave ‘centres of excellence’, whosespecialists, research programmes andtraining courses are designed to makethe latest technical and operationalinformation available to those involvedin water-related programming activity.Other categories include partnership andnetworking bodies, such as the WaterSupply and Sanitation CollaborativeCouncil mentioned above; theinternational NGO community; andacademic and scientific institutes basedin different parts of the world acting asrepositories of technical and professionalexpertise.

The most notable recentinternational networking initiative is theestablishment of the Global WaterPartnership (GWP), supported byinternational and bilateral funds, withSecretariat support from Swedish SIDA.The GWP was set up in response to the

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Dublin and Rio conferences toencourage members to adopt consistentand complementary policies andprogrammes for water resourcesmanagement. It provides a forum inwhich to share information andexperience, offer technical advice, andfacilitate collaboration among partners.Another recently established partnershipmechanism is the World Water Council(WWC). The Council acts as a think-tank, to promote awareness at all levels,including the highest decision-makinglevel, of critical water issues and theirrelationship to environmentalsustainability.

A number of academic institutes andresearch centres have an influence onthe direction taken by internationalagencies and governments; they, orexperts employed by them, arefrequently sub-contracted to contributetheir expertise in policy-making ortechnical contexts. Some of these are atthe forefront of innovative solutions andconsciousness raising; a number runtraining programmes for engineers andother specialists from developingcountries, and thereby help to promote‘best practice’. Ultimately many ‘centresof excellence’ associated with waterresources management disciplinesinfluence the international wateragenda, but there is no single institutionthat covers water in its entirety.

Among the variety of experts andpractitioners associated withorganisations which contribute toprogrammes and projects, consultants ofdifferent kinds have an important role toplay. Sophisticated technical expertise,only available at the international levelor from ‘centres of excellence’, may beone obvious requirement. But sometimesthe missing skills or knowledge gap isactually at the micro-level. Programmeor project implementation, especially inthe early critical stages, can be facilitatedby the involvement of consultants from

NGOs or neighbouring countries withextensive experience of – for example –health education, capacity-buildingamong user groups, or project supportcommunications and social mobilisationtechniques.

Different perspectives: North and South

Climaticconditions andwater priorities

Although there isevidence of aglobal consensuson the criticalimportance ofwater there arenonetheless widedifferencesbetween regions –and within them – concerning thepriority issues. At the global level, this isreflected in a broad dichotomy of viewbetween North and South aboutpriorities.

The ‘new’ idea that water must beseen as a highly-prized commodity – anidea which has only recently come todominate international thinking – is farfrom new to the majority of developingcountries. Many are located in semi-aridareas, have semi-arid regions withintheir borders, or suffer from dry and wetseason extremes. In some – India, Iraq,Sri Lanka, China and others – ancientcivilisations were built upon hydraulicengineering to manage water flows, andwater management remains central tosocial, political, and spiritual life.Problems of water scarcity, and of over-abundance at times of seasonal flood, area day-to-day reality. Water has alwayscarried political weight; its managementand conservation are clearly essential todevelopment and all economic policies

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The ‘new’ idea that watermust be seen as a highly-prized commodity is farfrom new to the majorityof developing countries

take water needs into account. Of the OECD countries only

Australia, Mexico, Western USA andparts of southern Europe experiencewater stress problems similar to those ofmany developing countries – and theyhave the resources to resolve them. Mostindustrialised countries are situated intemperate zones; until recently, theyhave taken their water supply forgranted and its volume has not been amatter of concern except on occasion oftemporary flood or drought. This lack ofindustrialised world concern longinfluenced international attitudes; the1987 Brundtland Commission Report onenvironment and development – OurCommon Future – did not even considerwater resources as an issue. By the timeof the 1992 UN Earth Summit at Rio deJaneiro, attitudes had begun to change,but mainly because of water qualityconcerns. Although water was notprominently discussed, the inclusion ofa chapter on Freshwater Resources inAgenda 21, the key Summit document,did provide a catalyst for future action.

Although water scarcity and seasonalflood remain the priority issues for muchof the developing world, quality issuesare beginning to intrude on theiragenda, just as scarcity issues arebecoming more prominent in parts ofthe industrialised world. Rapidpopulation growth in the South and aneven more rapid process of urbanisationhave recently exerted new pressures onwhat is fast becoming an over-stretchedresource. Cities in the Middle East, Asiaand Latin America are facing criticalwater problems as a result of overload onsources, improper waste disposal,contamination of rivers and streams andthe reckless extraction of water fromdepleted aquifers. Agriculture remainsthe major water user in many countriesand the diversion of water to other useshas implications for agriculture and food

security. In addition, the discharge ofincreasing volumes of untreated wastewater from towns and cities into rivershas downstream implications foragriculture and rural life.

While welcoming an overduerecognition of the importance of waterat the international level, someprofessionals in the developing worldhave had reservations about the suddenpre-occupation of the industrialisedworld with environmental issuesgenerally. The expression of theseconcerns has appeared to demand theimposition of constraints on theexploitation of the natural environmentto which the developed countries werenot subjected during their ownindustrialisation process. Since the EarthSummit, the views of North and Southhave moved closer together, butreservations towards blanketprescriptions about resourcemanagement have not entirelydisappeared. These need to be taken intoaccount, and underscore the challengeof matching an international consensuson principles to the realities of localsituations.

Implications for water policy

Contained within the internationalconsensus on the principles that shouldgovern the response, is the recognitionthat problems must be identifiedaccording to the local context andsolutions developed which take localparticularities into account. However,the implications of putting into effectsome of the most important features ofthe international consensus – given theparticularities of water realities in thedeveloping world – have not alwaysbeen given due recognition by donors.The growth of international unanimityof view does not preclude – indeed itdemands – flexibility concerning the

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practical application of policy principles.Universalist programmatic models needto be abandoned, or the principlesthemselves will be repudiated.

In the context of development co-operation, the implications of issuesgiven emphasis by donors, such asinstitutional reform, realistic pricing anduser participation in servicemanagement, have ramifications –especially political ramifications – whichpose special problems to many recipientcountry governments. Many still need tobe persuaded that measures which clashwith customary views about rights, orwhich undercut entrenched interestsand existing systems of administration,are ultimately in their best interests.There are also significant technical andresource constraint differences affectingthe means whereby and degree to whichthe consensus emerging at theinternational level can be madeoperational. Factors such as climate,hydrology, terrain, human settlementpatterns, infrastructural capacity,investment requirements and sources,economic considerations, and the socio-cultural setting all have to be taken intoaccount. These factors help to explainwhy there is so far a much strongerrhetorical commitment to the Dublinand Rio principles than there is evidenceof their practical realisation on theground.

Developing countries tend to bemore concerned with increasing suppliesthrough new infrastructure rather thanwith water efficiency or managing waterdemand, and traditionally seek supportfrom the donor community forinfrastructure projects; indeed they fearthat the new agenda around whichinternational – which is primarily donor-driven – consensus has coalesced willlead to a reduction in capital investmentfor such projects.

Officials are becoming more aware ofthe need to manage resources efficiently,and that the construction of newinfrastructure has to take into accountenvironmental and social impacts, andthe fundamental need for systems to beeconomically viable for maintenancepurposes. However, they may beinhibited by thepoliticalimplications ofsuch a change.Realistic waterpricing is likely tobe very unpopularamong those withserviceconnections, andhowever essential,the introductionof fees maytherefore bepolitically painful.Therefore, theymay continue torely on donors to fund water projectsdesperately needed for the enhancementof supplies or coverage, but be reluctantto address the longer-term problems.Given these difficulties, reconciling theviews of donors towards cost recoverywith those of recipients is a majorchallenge.

Likewise, there may be differences ofview concerning the involvement of theprivate sector. A perception hasdeveloped that donors regard theturning over of state-run water-relatedfunctions to the private sector as apanacea for efficiency gains. Manydeveloping country governments arewary of so doing. In parts of Asia and inLatin America, the private sector isrelatively developed; elsewhere, it isweak and poorly regulated. Apart fromthe desire not to relinquish power over avalued asset, it may genuinely be the

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Cities in the Middle East,Asia and Latin Americaare facing critical waterproblems as a result ofoverload on sources,improper waste disposal,contamination of riversand the recklessextraction of water fromdepleted aquifers.

case that transfer to the private sector iseither not viable or undesirable. Whereregulation is limited or unenforceable,an uncontrolled private sector can bepredatory, exploiting the vulnerability ofthe poor. At present, up to 30% of urbandwellers in the developing world buytheir water from unregulated vendors atseveral times the cost of water from amains supply; this situation needs to beredeemed not administrativelyreinforced.

While there is clear evidence that,under regulation, some kind of privatesector involvement is beneficial to users,different circumstances have to be takeninto account. This also applies to theinvolvement of community-basedorganisations in management ofservices. The ability of small-scale farmerassociations and village groups tomanage complex water schemes withoutexpert help is limited. Their capacity isconfined to the management of low-level technologies, such as small

catchment dams, gravity-flow schemes,rainwater harvesting, handpumps andsimple sewerage systems. Through themediation of NGOs and sympatheticwater authorities, such approaches havebeen successfully implemented in manyparts of the developing world. However,they are very difficult to bring into asystematic area-wide or nation-wideframework.

For many reasons, therefore,developing country governmentsconsider water resources planning andmanagement to be a central part ofgovernment responsibility. This view isconsistent with the internationalconsensus that promotes the concept ofgovernment as facilitator and regulator.The challenge is to reach mutualagreement about the level at which, inany specific instance, governmentresponsibility should cease, or bepartnered by autonomous water servicesmanagement bodies and/or community-based organisations.

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Introduction 41

Institutional and management principles 42

Social principles 45

Economic and financial principles 48

Environmental principles 50

Information, education and communications principles 51

Technological principles 53

2Chapter

Managing water resources equitably, efficiently and sustainably:guiding principles

2The guidingprinciples should beseen as a next levelof principles basedon the coreprinciples alreadyestablished byinternationalconsensus.

Introduction

The centrepiece of these Guidelines is a‘strategic approach for the equitable,efficient and sustainable managementof water resources’. The strategicapproach proposed is based oninternationally agreed core principlesconcerning the need to protect theaquatic eco-system, and to extend thehealth-giving and productive propertiesof freshwater resources equitably andefficiently among humankind, withspecial emphasis on poorer andunderserved people.

The guiding principles elaboratedhere should be seen as a next level ofprinciples based on the core principlesalready established by internationalconsensus. Their most authoritativeexpression is encapsulated in the fourover-arching principles agreed at theInternational Conference on Water andthe Environment in Dublin in January1992. More recent expanded expressionsof these core principles – as outlined inChapter 1 – can be seen asreinforcements and further elaborationsof a shared vision.

While the core principles provide anunderpinning basis for water-relatedpolicy, they are relatively remote frompractitioner realities and offer littleguidance for resolving the dilemmas anddifficulties contained in their practicalimplementation. Therefore, as part ofthe development of a strategic approach,and to aid intellectual management ofthe new dimensions of water-relatedpolicy, these Guidelines present sub-sets

of policy principles applicable at theprogramming and project level. Theseare as follows: ● institutional and management

principles; ● social principles; ● economic and financial principles; ● environmental principles; ● information, education and

communications principles; ● technological principles. These headings reflect the wider range ofissues now considered essential foreffective water resources management.However, many of the principles andcategories are inter-related andinterlinked.

The sets of principles broaden theframework within which water-relatedpolicy can be addressed in an organisedfashion. As emphasised throughoutthese Guidelines, water is a renewablenatural resource whose soundmanagement affects developmentalactivity in many economic, productive,infrastructural and social sectors. Thenew thinking brings into play a verybroad range of issues, with implicationsfor project formulation and fundingmechanisms. Reference to concernsoutside the immediate programmingand project environment – such assustainability of the resource over thelong term, protection of water-dependent ecosystems, sustainability ofservice management, and enhancementof the wider urban or rural environment– need to be taken into account.

The implications of adopting a muchbroader strategic approach to water

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Managing water resources equitably,efficiently and sustainably:guiding principles

cannot be underestimated. Fewgovernments have addressed the wholerange of practical changes required torespond satisfactorily to the coreprinciples of the new consensus.Activities at the macro-level (integratedwater resources management, waterpolicies, legislation, institutionalchange) and at the micro-level (usergroup participation, community-leveloperation and maintenance,subsidiarity,) are given more weightproportionately than in the past.Technological issues and construction,which previously dominated programmeformats, while remaining critical arenow regarded as one set of

considerations among many.Although grouped, the principles are

cross-cutting and universal, applicable toall types and aspects of water-relatedactivities – from surveys, to humanresources development, to constructionof installations – whatever their physical,social or economic setting. Suchprinciples should be seen as the bedrockof the strategic approach. Theirapplication is supposed to aid clearthinking about objectives and actions;an effort has been made not to overloadusers with criteria for programmeformulation in such a way as to impederather than aid their work.

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Institutional and management principles

1 Roles of government and official bodies at all levels should

be clearly defined and areas of responsibility officially established

Management and service deliveryfunctions need to be clearly identifiedand institutional responsibilitiesdemarcated. The role of government atall levels and in all contexts may need tobe reviewed. Where they have notalready done so, governments shouldwork towards providing a sound legaland policy framework for water resourcesmanagement and becoming thefacilitators of service extension andprovision, and reduce their role as directprovider of services and builder of publicworks.

Government is also responsible forestablishing regulatory bodies; it isimportant that these be independentlyoperated, transparent, accountable, andempowered to enforce regulations. Allthe different uses of water, and the rolesof different institutions involved inproviding services, need to be enshrinedin law (see Part III, Glossary). Servicecriteria need to be similarly established,

preferably by consensus among thevarious stakeholders.

At national level, governments havea responsibility to develop an integratedwater policy, meeting the rational needsof the various users within the limits ofavailable resources, financial andenvironmental. In any such nationalpolicy, geographical and hydrologicalscales need to be taken into account;catchment areas can be proposed as auseful basis for overall water resourcesmanagement. Care should be taken thatthe water policy is co-ordinated withother policies with implications forwater use – such as those for agriculture,industry, energy and urbandevelopment. To this end, a system ofco-ordination among those responsiblein the different sectors at national levelis needed. An effective co-ordinatingbody will enable competition betweenwater uses to be resolved, in accordancewith the national policy and agreed

water resources development plan. While many countries have water

codes or water legislation these are rarelycomprehensive and often outdated.They often do not take account of waterresources management andconservation, nor have they beenestablished through a participatoryprocess. New laws and enforcementprocedures may be needed. As far aspossible, they should be formulatedpermissively rather than restrictively toenable the regime to be enforceable

without undue cost and administrativeburden. However, common referencesand standards are needed in relation towater quality and items manufacturedby the local water-related industries.

In allocating roles andresponsibilities, the need to decentralisethe various types of decision-taking tothe lowest, most appropriate,administrative tier should be respected.

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2 The structures and systems of management should be designed

in such a way as to facilitate involvement by the

responsible authorities at different levels

Participation by all stakeholders isessential for successful watermanagement and usage. (See Part III,Glossary.) Structures and practices of theresponsible authorities therefore need tobe designed to facilitate participation ofthe various categories of users: watercompanies, industries, farmers, domesticconsumers, energy utilities, fisheries, andnature conservation departments.

Responsibilities for water-relatedservices and resource management needto be decentralised to the lowestappropriate administrative levelaccording to the concept of subsidiarity;this allows the contributions of thevarious parties to be maximised.However, the necessary tools, trainingand funds must first be allocated so thatthe resources are available for

responsibilities to be fulfilled. Currently,many of the responsible bodies havecentralised and hierarchical commandstructures inadequately geared toconsultation and interaction with otherstakeholders, especially users. In suchcases, organisational transformation maybe necessary. On the one hand,functional responsibilities are bestdevolved to officials and bodies close tothe realities of the situation, includinglocal councils, private companies andorganisations able to facilitateconsultation with users. On the otherhand, the role of the public authority asregulator, facilitator and moderatorshould develop an organisational culturethat is outward-looking, to facilitatecommunication with all stakeholders.

3 Involvement of user organisations and the private sector

should be encouraged

Partnerships with the private sector needto be encouraged and facilitated; this isespecially relevant as governmentauthorities set out to divest themselvesprogressively of responsibilities for theprovision of services. In this context, theprivate sector is deemed to includeWater User Associations and FarmerGroups.

The role of the private sector willvary according to social, economic,environmental and other circumstances,and needs regulation. A suitablerelationship between public and privatesectors needs to be found to promote theefficient operation of the facilities andcollect user fees. Delivery of services andconstruction of installations may beorganised through service providerswhich, whether publicly or privatelyowned and operated, should be

autonomous. At the same time,vulnerable populations – theunderserved and underprivileged – needto be protected from exploitation bymarket providers since they have noconsumer influence.

Government-run water authoritiesand utilities companies are also in aposition to facilitate the transfer oftechnology to the private sector,encouraging the development of localwater supply, wastewater disposal andirrigation manufacturing and serviceindustries. These industries can be bothlarge- and small-scale, able to cater tothe needs both of major publicly-financed schemes and of micro-projectsand private consumers, including NGOsand community-based organisations.(See also Part III)

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4 Ongoing capacity building is needed within institutions

and for participant groups at all levels

Capacity building, especially thedevelopment of human resources, theenhancement of skills, the adoption ofup-to-date thinking, and improvementof the knowledge base, are needed inmany institutions responsible for waterresources management and services. (Seealso Part III, ) Capacity building shouldextend to all levels and concernedgroups; the importance of professionaltraining and, where necessary,reorientation cannot be overstated.Where a more active role in servicedesign and implementation is envisagedfor users, the capacity of intermediarybodies, such as NGOs and local councils,will also need to be enhanced andtraining provided in technical andorganisational activities.

The new emphasis on ‘software’, ascompared to ‘hardware’, components ofwater-related projects means thatorientation towards these areas shouldbe built into their design. Interpersonalskills such as communication,negotiation and leadership, as well asknowledge of project management andhealth education, are as important asfunctional skills relating to building andmanaging installations. Engineering staffneed encouragement to adopt apartnership approach to service deliveryrather than a proprietary attitudetowards schemes. Additional technicalcompetencies – hygiene education, soilmanagement, environmental protection,social mobilisation – are likely to beneeded.

Given the need to build alliancesbetween stakeholders, the responsibleauthorities and their partners and usersneed to feel confidence in managementsystems and operating procedures. Abalance needs to be struck betweenflexibility and accountability.

All financing and auditingprocedures need to be transparent.Systems of financial control need to berigorous in order to avoid themismanagement or misapplication offunds sometimes associated with large-scale investments in major constructionworks.

Management information systemsneed to be suitable for the organisational

level at which the relevant datacollection and analysis activities areconducted; inputs and outcomes need tobe monitored in such a way that theyprovide information of value tomanagers when they require it. This inturn helps to engender a sense ofownership of the system and ensure thatit is effectively used. Considerationneeds to be given to the level ofinformation technology required fordifferent functions, given cost andhuman resources constraints. Not allsystems have to be based on computertechnology, though such technologydoes offer obvious advantages.

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5 Management systems should be transparent and accountable

and appropriate management information systems should be established

Social principles

6 A sufficient supply of water and an adequate means of sanitation

are basic human needs to which everyone should have access

Water is a fundamental social resourcesince it is basic to the support of humanlife and health. It is also a fundamentaleconomic resource on which thelivelihoods of farming populations (andsome other occupational groups)depend, and whose shortage or excess involatile, drought- or flood-proneenvironments has profound implicationsfor human well-being. Survival, povertyreduction, quality of life and equityconsiderations therefore need to begiven over-riding importance in theconceptualisation and planning ofactivities relating to water.

The lack of safe water and sanitationin many poorer parts of the developingworld is a cause of continuing concern.It is therefore important to prioritise theextension of basic water and sanitation

services to the unserved and underservedpoor, especially those most at risk fromwater-related diseases in both rural andurban areas. The same principle shouldapply when considering investments inwater supply infrastructures related tofarming and family well-being.

Sanitation is often neglected,although it is as, or more, important forhealth impact than access to clean water.Care should therefore be taken to givesanitation, in the form of community orhousehold facilities, equal emphasiswith water supplies in service provision.

Definitions of access to water (i.e.distance to the supply) and adequatecoverage (i.e. per capita availability)need to take account of the nature of theinstallations and their use, as well aswillingness and ability to pay; this

The involvement of users in watermanagement is now recognised as acentral principle of the development ofwater and waste disposal services; thisinvolvement should extend beyond theprovision of free community labour inthe construction of schemes, to decision-making about siting, collection of tariffs,and operation and maintenance. In low-income areas, this involvement is likelyto be through community-basedorganisations.

The exact extent of communityinvolvement in the management of anirrigation works, water supply orsewerage system will vary with context,technological nature of the installedsystems, and the resources available atcommunity level. Both the potential and

the limitations of communityinvolvement need to be recognised.Long-term sustainability of facilities inlow-income communities, given theirtypically dispersed nature, cannot beguaranteed without a concerted effort toinculcate a sense of communityresponsibility and ownership.

Implementing a community-basedapproach may involve training field andagency staff in participatory techniquesand adopting a flexible approach toproject implementation. Localknowledge, cultural values, indigenouspractices, lifestyles and habits relating towater management and its use need tobe respected and, where appropriate,supported. (See also Part III)

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applies equally to drinking waterfacilities as to small-scale irrigationworks. The ability of households toaccess water in sufficient quantity fortheir needs is an important determinantof their capacity to adopt hygienicbehaviour and co-operate in measuresfor the control of water-related disease.

The management of water as acollective good may be an integral partof community life and deeply embeddedin social interactions and livelihoodstrategies. Understanding of attitudesand practice regarding water use, humanwaste disposal and environmentalsanitation by households and

communities, both for productive use(e.g. farming, livestock) and domesticuse (e.g. drinking, washing, cooking,personal hygiene and cleanliness), iscritical to formulation of all activitiesintended to provide such beneficiarieswith sustainable services.

Drinking water supply schemesshould also pay attention to the qualityof water/water safety at the point ofsupply (recognising that it may becomecontaminated between supply and usedue to poor environmental sanitation byhouseholds and users). Reference can bemade to WHO water quality standards(see Part III).

7 Users have an important role to play and their involvement should

be fostered via a participatory approach

The central role played by women in theprovision, management and husbandryof water, primarily in the domestic andhousehold context, has gainedwidespread recognition in recent years.Gender issues needs specialconsideration in relation to watermanagement and use.

In rural and seasonally water-shortenvironments, much of women’s timeand energy is typically spent in water-hauling to the detriment of their ownand their children’s well-being. Waterresources management similarly impactsupon many women in their farming,small livestock management and micro-entrepreneurial roles. Thus, genderimplications need to be taken intoaccount at all stages of the planning andimplementation of water-relatedactivities, with consideration given tothe different social, economic andcultural roles assigned to men andwomen in a given setting. Not only dogender implications of proposedinterventions have to be considered, butways need to be identified wherebywomen users and beneficiaries ofservices can themselves help definethose implications and take part in thecommunity consultation process so thattheir specific voice be heard.

Given existing power structures

within families and communities inmany parts of the world, a targeted effortwill probably be needed to enablewomen to take a meaningful role in theconsultation and decision-makingprocess relating to water and wastedisposal. In many traditional cultures,women’s only perceived role vis à viswater resources management is haulageand storage of domestic supplies. Thus,issues such as siting and ownership ofinstallations; knowledge of operationsand maintenance procedures andrelevant skills; and membership of WaterCommittees or similar bodies arenormally confined to men. Absence ofwomen from decision-making vis a viswater resources management and servicedelivery is both inequitable, and severelyhinders the possibility of realising publichealth, food production and quality oflife programme objectives.

Because of their domestic roles,women are also logical key candidatesfor educational activity concerning wateruse and hygiene behaviour. However,men will also need to be included sincetheir attitude towards – for example –hygienic disposal of human waste, andtheir willingness to pay for services orinstallations, may be decisive within thehousehold and community. (See also Part III)

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8 Gender implications should be examined and taken into account

at all stages of the planning and implementation process

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10 Charging tariffs for water services is an important component

of any strategy for sustainability

Charging for water services (watersupply, irrigation and wastewaterdisposal) is essential in order to generatefunds for operating, maintaining andinvesting in systems; ensure that scarcesupplies are allocated to essentialpurposes; and signal to users the realvalue of the resource. As a matter ofprinciple, a service providing watershould not give its product away freeeven to the poorest customer. However,this principle poses a dilemma: how toprovide a basic service to those who areextremely poor and yet ensure costrecovery, especially in areas where thecosts of water extraction and delivery arehigh and/or continually mounting due

to pressure on the resource.This dilemma needs to be resolved.

For household consumption, a certainminimum volume necessary for basicneeds can be provided at an affordableprice, with higher-level volumes subjectto higher tariffs. This will ensure thathigher levels of consumption are notsubsidised. Public subsidies arelegitimate to achieve certain benefits (forexample, provision of supplies to theunderprivileged and underserved).However, these subsidies need to betransparent, targeted, and budgetarilypracticable and sustainable (for example,covered by surpluses generatedelsewhere in the system).

Economic and financial principles

9 Water has an economic value and should be recognised

as an economic good

Recognition of freshwater as a finiteresource has led to the emergence of theprinciple that water is an economic goodto which a price should be attached; andthe application of this principle becomesincreasingly critical as water becomesscarcer. However, this principle does notover-ride the social imperative ofproviding a basic supply of safe water forevery human being.

A sense of the economic value ofwater implies the attachment of differentvalues to different uses of water. Thesevalues will vary from setting to setting asdecided by the community, although itis invariably the case that survival andpublic health uses will be high-valueuses; whereas recreational uses will becomparatively lower-value. Where wateris becoming scarce, it is desirable to

discourage low-value uses. Thepossibility of reallocating water to high-value purposes should be investigated asan alternative to, or in parallel with,developing new sources of supply; inthis context the use of water markets canbe appropriate. Some estimates of high-and low-value purposes of water maybenefit from considering the importanceof ‘virtual water’ (the non-evident waterembedded in imported food crops: seePart III).

Allocation of values to water useshelps in the following areas: balancingscarce resources with increasing demand;the reduction of wastage and loss;conservation of the resource; and shiftsin consumption towards higher valueuses. (See also Part III)

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Demand management seeks to maximisethe usage of a given volume of water, bycurbing inessential or low-value usesthrough price or non-price measures. Inwater-scarce areas, it is necessary to gainpolitical support for demandmanagement over supply-led solutions(i.e. solutions which are based onindefinite expansion of services andsupplies).

A number of demand managementmeasures can be considered, includingmarket-based incentives such as watertariffs, pollution charges, water markets,auctions, water banking; and non-

market incentives, such as leakagecontrol, restrictions, quotas, norms,licences and demonstration projects. Alloptions need to be systematicallyidentified and appraised.

In its policies towards key sectorssuch as industry and agriculture, agovernment should be discouraged fromdeveloping water-intensive industries oragriculture in regions where water isscarce and estimates of different watervalues (see Chapter 1) suggest that itshould be applied to other uses. (See also Part III.)

11 ‘Demand management’ should be used in conjunction

with supply provision

The weighted average of the tariffsshould be high enough to recover, at aminimum, recurrent operations andmaintenance costs. Where water chargeshave been raised to this level, the aimshould be to raise them progressively,and with due regard for continuing tomeet basic needs, to the full marginalcost (equivalent to the averageincremental cost of future supply) inorder to generate resources forexpanding or modernising the system(see Part III). Industrial water tariffs needto take account of the volume of waterextracted, and the volume and quality ofwater returned to public water bodies.

OECD members have accepted theprinciple that ‘polluters pay’: those whodispose carelessly of wastewater shouldbe charged for their actions.

If the tariff structure is progressivelyhigher for higher consumption levels,this provides an incentive toconservation. It also generates extraresources for expanding services,although the practicalities of recoveringcosts for service installation andextension will depend on conditions(physical and socio-economic) operatingin a given setting. The same principlesapply to wastewater disposal andmanagement.

Programmes and projects for thedevelopment, management and use ofwater mostly entail modifications of thenatural environment to improve thequality of human life. However, certainwater-related activities, such as floodcontrol and drainage schemes, have aspart of their central purpose anenvironmental objective.

Maintenance of the natural waterenvironment is also important both forits intrinsic value and for supporting life.For example, water has an ‘in-stream’value for fish and for the support ofaquatic eco-systems. Eco-systems inwetlands and coastal zones depend on acertain volume and quality of water fortheir sustainability. Rivers and wetlands

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Water-related activities need to beplanned and implemented with dueregard for all their environmentalimplications. Programmes and projectsrequiring the disruption of water flowscan reduce the productivity of aquaticecosystems, necessitate resettlement ofaffected populations, and devastatefisheries and grazing land. Pollutiondegrades water supplies, increasing thecosts of water treatment. In somecountries, integrated river basinmanagement may provide a solution forsurface waters since it allows allcompeting interests to be taken intoaccount for one water-definedenvironment.

The protection of aquifers frompollution and over-exploitation shouldbe afforded particular attention as theeffects are not visible and can thus beneglected. The use of fossil groundwatershould be avoided.

Water resources management systemswill need to take into account theimplications of all development

activities related to the environment.These include industrial and agriculturaldevelopment leading to discharges thatendanger downstream water quality;changes in land use, such as roadconstruction; settlement and cultivationof floodplains and other riverineenvironments; and the impacts offreshwater use and pollution on estuariesand coastal zones. Water resourcesmanagement objectives therefore haveto be carefully balanced against otherlong- and short-term developmentobjectives.

Every effort should be made tocapitalise on better knowledge of thewater environment derived from recentexperience. Working with theenvironment rather than against it is thedesirable strategy. Technical methodsusing local materials, and biologicalmethods to control weeds and diseasevectors, have environmental advantagesand build on natural capacities forpollution control and regeneration.

Environmental principles

12 Water-related activity should aim to enhance or to cause least

detrimental effect on the natural environment and its health

and life-giving properties

13 The allocation and consumption of water for environmental purposes

should be recognised and given appropriate emphasis

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also have important functions as wildlifereserves, navigation routes, and areas forrecreation. They also help to supportnatural biodiversity. In order to planwater utilisation priorities, therefore, itmust be recognised that areas such as

wetlands “consume” large quantities ofwater through evaporation. All uses,consumptive and non-consumptive, haveto be considered and not automaticallyregarded as inferior to human andeconomically productive uses.

14 Environmental change should be monitored so that improvements

can be encouraged and detrimental impacts minimised

Appropriate systems to monitorenvironmental changes throughout aproject cycle and beyond will be needed.Appropriate expertise is needed from theoutset to ensure that environmentalaspects are properly assessed. Careshould be taken to adopt systems thatallow flexibility of action since someenvironmental costs may have to beaccepted to gain greater social andeconomic benefits. (See Part III.)

Emphasis on environmentalconsiderations is particularly appropriatein water-stressed areas, where the

environmental and other implications ofusing alternative sources of supply –surface as opposed to groundwater, forexample – need to be assessed. Theinextricable connections between landand water management need to berecognised; land use and soil qualityhave a major influence on water flowand water quality, and vice versa.Integrated resource management needsto be the over-riding macro-environmental consideration.

Information, education and communications principles

15 A sound information and knowledge base is needed for

effective actions within all water-related activities

Many developing countries lacksufficient data on hydrology,groundwater resources and water quality.Without a full range of scientificinformation concerning climate and theecosystem, it is not possible to evaluatethe resource, balance its availabilityagainst demand, or reach scientifically-informed decisions in key areas of waterpolicy. Thus, the development of a waterresources knowledge base is a pre-condition for an effective water policy.

Similarly, government authoritiesand agencies involved in water-related

activity need proper information inorder to function effectively. Thisinformation includes data ontechnologies, strategies, approaches,alternative organisational models, andmanagement information of all kinds.Data collection systems need to beestablished, and integrated with oneanother, so that activities can becontinuously monitored, impacts beassessed and adjustments made.

Surveys and research projects areneeded to collect socio-cultural andeconomic as well as technical data.

Demand for water in low-incomecommunities is associated with survivalinterests, convenience and reduction oftime and labour spent by men, womenand children in water-related tasks.Beneficiary definitions of social well-being relating to water may not coincidewith those of donors and programmeagencies, whose principal concerns areusually linked to public health (or inschemes for agricultural water use, withcrop production). There is also usually ahigher demand for water supplies thanfor environmental sanitation, althoughsanitation is more essential to diseasecontrol. Therefore, education in thelinkages between unsafe water,inadequate excreta disposal, and diseaseshould be integral to all schemes for low-income communities.

Education programmes inenvironmental sanitation and personalhygiene may need to be biased towardswomen, given their special role inhousehold water management and use.Children can also be targeted by school-based programmes. Education issimilarly needed in the environmentalimplications of water-related activities;in particular, farmers need to learn thevalue of water and the importance ofwater saving in irrigation. Without anunderstanding of the purposes of waterresources management, user groupparticipation in management decisions,especially in negotiations overcompeting user group needs, cannot beobtained; and if obtained, cannot befruitful.

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16 Education is a vital component of water-related schemes if health

and life enhancement benefits are to be achieved and sustained

17 Communication and awareness building are essential ingredients

in all forms of water resources management

The new thinking surrounding waterresources management and the deliveryof services requires extensive awareness-building among political leaders,decision-makers regarding water,professionals and academics, donors andNGOs. As yet, the emerging consensus islargely confined to members of the

international water-associatedcommunity. To put its principles intooperation and resolve the many practicaldilemmas they raise will requirewidespread understanding of theirimplications.

Communications mechanisms, in theform of educational activity and public

Where projects are intended to benefitlow-income communities, priorinformation is needed about attitudesand practices surrounding water supplyownership, access and use, andtraditional methods of excreta disposal.Effective hygiene education depends onthorough knowledge of existing water-

and human waste-related behavioursand beliefs. Baseline data on prevalenceof water-related disease is an importantaid to post-intervention monitoring ofpublic health impacts.

Providing a reliable supply of water fordomestic or agricultural purposesrequires careful attention to ‘hardware’,suitably balanced by attention to‘software’ aspects. Technologicalinnovation and adaptation are integralto many of the water-saving measures,service extensions and systemimprovements urgently required.Technical issues largely determine thecosts of a given water-related project,and thus remain of paramountimportance.

The present water-related projectcycle can, in many settings, becharacterised as ‘build, neglect, rebuild’.Where the technology deployed isremote from the users’ capacity tomaintain, operate or pay for it, prospects

of sustainability of the service areequally remote. Thus the developmentof water and waste disposalinfrastructure and irrigation works needsto take technological considerations, aswell as local management capacities andcommunity resources, into account.

Technology itself needs to beprovided within an integratedframework. A project designed toprovide a new supply of water, forexample, should take into account theneed to dispose of, or recycle, run-offand used water. Irrigation works shouldtake into account the potential for soildegradation or water-related healthhazards, such as the development ofmosquito breeding-grounds.

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Technological principles

18 A balanced approach towards ‘hardware’ and ‘software’

components of projects should be adopted

information campaigns, are also neededto increase community-levelunderstanding of the linkages betweenwater and health, to increase demand forall kinds of water-related services, andgenerate motivation and impart skills for

service maintenance. Awareness-buildingamong users also helps to create aclimate favourable to communitymanagement of schemes, strong localparticipation, and the collection of waterdues. (See Part III).

Engineering solutions need to beselected according to criteria whichinclude efficiency, appropriateness, costand their potential for adaptation to thelocal environment. The desired approachcan be summarised by the term‘appropriate modern technology’,capturing elements of cost-efficiency andsuitability for the purpose (see Part III).

There have been numerous examples ofpoor project outcomes due to theselection of over-costly andinappropriate technology, which hasfallen into disrepair becausemaintenance was too difficult, or whichhas caused unanticipated environmentaldamage.

A common problem in many

19 Choice of technology should be governed by considerations of its

efficiency, appropriateness, cost, and suitability for local conditions

54

infrastructure projects has been theimportation of technology fromindustrialised countries unsuited to thephysical, economic and social conditionsin which the system is located. Highlyprofessional technical advice is requiredto guide the choice of technology –whether it is to be ‘high-tech’ or ‘low-tech’, it should still be ‘state of the art’;and the choice of materials shouldreceive careful consideration regardingsafety and environmental suitability. Asimportantly, technical decisions musttake into account the social andeconomic context in whichinfrastructure will have to bemaintained. Long-term affordability andsustainability often hinge upondecisions taken concerning technologyincluding energy sources for pumping.Thus, critical social and economicconsiderations about the viability of atechnology in a given setting should notbe ignored. Technologies should not

burden operators or tie them into costlyand unreliable supply contracts;consideration should also be given tothe prospects of technology transfer andlocal manufacture.

To facilitate cost-effective operationand maintenance, upgradingtechnologies that permit stageddevelopment are desirable, especially insettings where systems and services arebeing introduced for the first time. Thesecan be developed on the basis ofindigenous technologies and localknowledge, and on scaled-down versionsof existing systems (in the case ofsewerage, for example).

To facilitate effective operation andmaintenance, easy availability of spareparts, and convenient training ofoperatives including local communityworkers, standardisation of technologyneeds to be assured. This issue may needto be addressed within the regulatoryframework.


Introduction 57

Water resources assessment and planning 59

Basic water supply and sanitation 62

Municipal water and wastewater services 64

Agricultural water use and management 66

3Chapter

Managing water resources equitably, efficiently and sustainably:Programmatic contexts

In this chapter,the programmingcontexts for theapplication of thepolicy principlesare presented.These have beencalled ‘FocusAreas’ in keepingwith terminologyadopted inAgenda 21.

3

57

Introduction

In the previous chapter, sets of policyprinciples have been presented as thebedrock of a strategic approach forwater-related programming and projectactivity. These principles provide anoperational philosophy and frameworkfor EC development co-operation inareas relating to water resourcesmanagement and service delivery. In thischapter, the programming contexts forthe application of the policy principlesare presented. These have been called‘Focus Areas’ in keeping withterminology adopted in the EarthSummit document, Agenda 21.

These Focus Areas allowprogramming contexts to be groupedaccording to four broad types of activity:Water resources assessment andplanning (WRAP) which includes allactivities designed to assess theavailability of the natural resource,protect its quality, and plan its use; Basicwater supply and sanitation services(BWSS), which covers service provisionin rural areas and marginal or poorurban areas, usually consisting of low-technology, community-managedsystems; Municipal water andwastewater services (MWWS), whichcovers major urban and industrialinstallations and systems, includingwastewater treatment and seweragesystems; and Agricultural water useand management (AWUM), whichcovers installations and activities relatedto agricultural use of water, especially forirrigation. No pre-determined priority is

given to any one Focus Area ascompared to any other. Theprogrammatic activities covered by theFocus Areas are explored more fullybelow.

The application of principles to theFocus Areas is intended to be carried outin such a way that all principles areapplied in all contexts. This should pre-empt the possibility that any one FocusArea could be treated in isolation fromany other. There are many linkagesbetween Focus Areas. Work directedtowards provision of basic watersupplies, for example, cannot omit toconsider agricultural water managementactivity, or vice versa. Activities relatedto Water resources assessment andplanning will, by definition, impingeupon activities in all other Focus Areas.The grouping of activities should notdetract from the need to view waterholistically and foster an integratedmanagement approach across usages andprogrammatic activities.

The organisation of programmingcontexts represented by the four FocusAreas aims to accomplish a number ofobjectives. In the first place, it reflectsthe broader range of programmingactivity necessitated by the new thinkingabout water as a resource whoseprotection and usage must becomprehensively planned. Secondly, itallows programming contexts withsimilar social, economic andtechnological characteristics to begrouped together: Basic water supply andsanitation services, for example, includesboth rural and poor urban settings where

Managing water resources equitably,efficiently and sustainably:Programmatic contexts

58

small-scale, differentiated installationsmanaged and operated on a local basisare likely to be the norm. Thirdly, itallows the integration of major works fordrinking water supplies with those forenvironmental sanitation, wastewatermanagement and sewerage. And finally,it transcends merely technical categoriessuch as ‘irrigation’ in favour of largerconcepts such as Agricultural water useand management, which includes land-water management, flood control, andenvironmental protection.

The Focus Areas also offer aframework broadly matched to sectors,although they do not correspondprecisely with standard administrativesectors (see box). As has already been

pointed out in Chapter 1, the term the‘water sector’ has been strenuouslyavoided in these Guidelines. Water-related activity transcends many sectors,including productive sectors such asagriculture and industry, social sectorssuch as public health and urbanplanning, and some new umbrellasectors, such as the environment, whichmay include water resourcesmanagement alongside housing,transport and environmentalconservation. When the phrase ‘thewater sector’ is used, it usually refersonly to public health engineering fordrinking water supplies and sanitation –which is another reason to avoid it.

Focus Areas and administrative departments

Water resources assessment and planning: co-operating administrativedepartments are likely to be: Planning, Environment, Water Resources,Hydrology, Energy, Transport.

Basic water supply and sanitation services: co-operating administrativedepartments are likely to be: Public Health, Rural Water Supplies, Co-operatives, Community Development, Local Government, Urban Planning.

Municipal water and wastewater services: co-operating administrativedepartments are likely to be: Public Works, Urban Planning, MunicipalAuthorities/Local Government, Health, Industry, Transport.

Agricultural water use and management: co-operating administrativedepartments are likely to be: Agriculture and/or Irrigation, Water Resources,Fisheries, Public Works, Planning.

The variety of administrativearrangements for water-related activity,both between sectors and at differentlevels of national, local and municipalauthority, makes it easier to distinguishbetween categories of activity thanclassify water activity by sector. It is apart of the operational philosophyexpressed in these Guidelines that, evenin countries where there is a separateMinistry of Water Resources – which isthe case where scarcity of water or someother factor makes water politicallyimportant – water-related policy will

need to be examined in and integratedwith the work of other sectors andadministrative departments. Theexistence of such a Ministry does notpreclude the possibility that certainwater-related activities receivingdevelopment assistance will fall underthe aegis of another ministry (or publicsector body answerable to a ministry):industry, agriculture, energy or publichealth are obvious possibilities. Theconcept of Focus Areas for programmingactivity suggests, but does not prescribe,the most appropriate administrative

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aegis for any given project.Certain water-related projects,

especially in the context of basic watersupply and sanitation services, may becarried out in direct partnership withcommunity-based organisations andNGOs. However, even in these cases itwill be necessary to consider which

government administrative entity orentities need to be involved, or at leastkept informed, during the planning andimplementation process. Even micro-level projects need to be notionallyintegrated with larger water-relateddevelopment policies, plans andprogrammes.

Focus Area 1: Water resources assessment and planning (WRAP)

The lack of an integrated approach tothe management of water resources hasled in the past to isolated investments inwater-related activity, some of whichhave inadvertently resulted in negativeconsequences on other users or on theenvironment. This Focus Area has beendevised to allow for special attention tobe given to macro-planning of waterresources management; activities whichfall within it may be new or unfamiliarto many users of these Guidelines, butshould be given due consideration giventheir over-arching importance for allwater-related activity.

Apart from its importance for humansurvival and well-being, water is a basicingredient in many productive and non-productive activities. Surface waterresources are derived from rivers whichmay originate outside national and stateboundaries; even where there are noproblems of trans-boundarycompetition, river basins rarely

correspond to existing administrativeboundaries within countries. Similarly,groundwater extraction does not occurtidily: its beneath- and above-groundimpacts are not confined to particularadministrative localities. As alreadyoutlined, there are many cross-sectoralconsiderations to be taken into account,alongside the geographical anomaliesassociated with the resource itself and itslocation vis a vis human settlements andits deployment for economicproduction. Water use is closely linkedto land use, and freshwater outflows canhave significant impact on the coastalzone. Water is therefore extremelycomplex to manage.

At national level, activities withinthis Focus Area will mainly be designedto develop and support a co-ordinatedstrategy on the use of water resources.The main purpose of such a strategy willbe to ensure sustainable development inall water-related sectors in the various

Possible project activities in Focus Area 1 include the following:

● Studies into land and water use patterns● Hydrogeological/hydrological surveys● Review of practicality of establishment of River Basin Organisations ● Ecosystem protection/conservation ● Review of water laws and regulatory framework● Establishment of national water standards● Development of data collection and monitoring systems ● Cross-sectoral planning in hydropower and navigational uses of water● Flood/drought prevention and control● Conflict resolution concerning water uses and upstream/downstream users

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Project example: Sub-Saharan Africa Hydrological Assessment and HYCOS

The severe droughts of the 1980s led to appeals from many African countries forinternational support for water resources development activity, and at the same timerevealed major deficiencies of hydrological services in the region. Growing waterscarcity and rising population were jointly acting as an important constraint on thealleviation of poverty and the improvement of health standards. But the commitmentof funds to suitable and effective interventions depended upon better hydrologicaldata and data-gathering networks. The EC therefore became involved in thefinancing of two projects; Sub-Saharan Africa Hydrological Assessment andHydrological Cycle Observing System (HYCOS).

The Hydrological Assessment project’s objective was to assist Sub-Saharancountries to establish sound hydrological monitoring systems for the purposes ofplanning and evaluating water resources development projects. Its three majorcomponents were: preparation of inventories of the present status of data collection,processing and publication; identification of major gaps in the current networks(including equipment, techniques, institutions and training); and recommendationsfor programmes to upgrade water data collection. A number of donor agencies wereinvolved, including UNDP, UNESCO, WMO, the African Development Bank, theFrench Government and the EC. The World Bank executed the project, except inthree countries (Rwanda, Burundi and Zaire) where it was not only funded butimplemented by the EC.

By 1993, four sub-regional reports and 39 country reports and a series ofhydrological and hydrogeological maps had been generated by the project. Anumber of critical issues had been identified, many of which stemmed from cuts inpublic spending associated with Africa’s economic difficulties. One of the mainrecommendations was the development of a Sub-Saharan African component of theglobal Programme WHYCOS – ‘World Hydrological Cycle Observing System’. Thefunding of the first regional project in the Southern African Development Community(SADC) was approved by the EC, and launched in 1997.

SADC-HYCOS has three main purposes: to provide SADC with an informationsystem for the sustainable improvement of regional integrated water resourcesassessment, monitoring and management; assist the participating countries todevelop their own national capacity in these fields; and to collaborate with othernational, regional and international efforts to modernise, rationalise and improvewater resources information systems.

The expected outcomes of SADC-HYCOS include the installation of a real timedata collection and transmission system with a network of 50 Data CollectionPlatforms (DCPs); these will be located at benchmark hydrological stations. Thisshould lead to the development and implementation of an operational regionaldatabase aimed at providing updated and timely data of consistent good quality.Training activities and on the job experience for technicians from the SADC countrieswill be provided at a Pilot Regional Centre established at an existing institution toimplement the project.

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regions of the country, and in so doing,help to avoid or resolve conflicts ofinterest over allocations of waterbetween stakeholders. In countriesvulnerable to extreme events such asdrought or floods, planningconsiderations will need to includedisaster prevention.

The various uses of water from multi-purpose dams (for irrigation, power,municipal supplies, recreation and floodcontrol) will be reconciled within WRAPactivities. This is also the context inwhich the interactive requirements ofenergy production (hydropower) andwater use in, for example, irrigation willneed to be jointly considered.

Water resources assessment andplanning activities can and should takeplace at sub-national levels as well, andform a part of regional, district and areadevelopment plans. A number ofsupporting activities will therefore beneeded at local levels.

The Focus Area would includeconsideration of the planningimplications of activities for non-consumptive uses such as flood control,hydropower and navigation; andconsideration of the impacts of otheractivities on these non-consumptiveuses. Projects covering these activitieswill most likely be promoted by donorofficials or recipient country agenciesconcerned with energy or transport andnot directly interested in water resources.An integrated approach is needed toensure that they are taken into accountin the management of the resource.Similarly, the protection of theenvironment and environmental orecological needs, often remote fromproject locations, can be neglectedunless an overall perspective is applied.

An integrated approach is essentialfor the higher tiers of authority in orderto set out the limits for activities whichmay otherwise neglect the broader view.It is also important that decision makershave access to adequate information onthe resource and user demand patternsin order to make correct decisions onpolicy, allocation, pricing, legislationand other issues which will have a directimpact on sustainable socio-economicdevelopment.

WRAP interventions are unlikely toinclude construction and will more oftenconsist of studies and institutionalstrengthening. Issues to be addressedinclude: policy and legislation regardingground and surface water, trans-boundary planning and negotiation,river basin planning and management(including the interaction between waterand land use), environmental protectionand conservation, distribution ofresponsibilities for management of theresource and management of water-related installations, regulation of serviceproviders both public and private, andthe co-ordination of, and conflictresolution between, sectors involved inwater use.

The Focus Area is also concernedwith basic information collection,storage and access for water resources,including: hydrological andhydrogeological assessment, rivergauging, climate and consumptionpatterns, improving the knowledge baseconcerning quantity and quality ofwater, calculation of needs anddemands, establishment of standards,research and specialist studies forexample on environmental factors andthe development of monitoring systemsand techniques.

This Focus Area covers programmes andprojects which have to do with theextension of basic water supply andexcreta disposal services to unserved andunderserved populations in low-incomecommunities in both rural and urbanenvironments. These usually consist oflow-technology, community managedschemes, in which local authorities playa facilitating and/or supervisory role.However, in large towns and cities, themunicipal authorities have ultimateresponsibility for the provision ofservices, and need to fulfil theirresponsibility by establishing theregulatory framework, urban planning,and playing their part in facilitatingservice spread.

In most programming exercises,schemes for rural and urban areas areconceptually differentiated. This is notonly because the administration of ruraland urban areas falls under differentauthorities, but because there is aperceived dichotomy between thepoverty, neglect and economicbackwardness of rural areas in thedeveloping world, and the wealth, highlevels of capital investment and politicalleverage which characterise urbansettlements. This perception has tendedto lead to neglect of poor urban areas, inwater-related activity as in other formsof infrastructural investment. Although

rural areas have also suffered fromneglect, activities launched during andsince the International Water Decade ofthe 1980s have produced a significantimprovement in coverage rates, at leastas far as drinking water supplies areconcerned. Sanitation coverage,however, has in fact declined and as aresult more policy attention is nowbeing given to waste disposal, especiallyin densely-settled low-income areas intowns and cities. Enhanced programmesupport is needed in this context.

The major public works with whichmunicipal authorities are mainly pre-occupied in the water, sewerage andurban drainage context rarely provideservice outreach to slum andshantytown areas. Thus, even wherelevels of urban coverage appear high, thefigures may mask the fact that coveragein marginal communities is inadequateor non-existent. As a population group,the urban poor is the fastest growing inthe world. The risks to their own health,and of the spread of communicabledisease to other neighbourhoods, posedby their crowded, insanitary and germ-laden habitat outstrip the public healthrisks of service deprivation to any otherpopulation.

Basic services providing drinkingwater and human waste disposal in poorcommunities, whether rural or urban,

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Focus Area 2: Basic water supply and sanitation services (BWSS)

Typical project activities for Focus Area 2 include the following:

● Rural water supply schemes ● Water supplies for low-income urban communities● Environmental sanitation in low-income urban communities● Rural environmental sanitation schemes● Data gathering from intended localities● Research and development of low-cost hygienic latrine technology● Knowledge, attitude and practice studies● Establishment of local Water Committees● Programmes for hygiene education ● NGO capacity-building

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are significantly different in conceptfrom conventional mains connectionsand standard sewerage and drainage.They usually consist of low-technologyinstallations: for water supply,handpump-tubewells, rainwatercatchment tanks, gravity flow tostandpipes; for sanitation, pit latrines,and where practicable, simplifiedsewerage systems and septic tanks.

Given that many such schemes arelikely to be installed in areas where noexisting services exist, preliminaryactivity may require data gathering, andthe establishment of water monitoringsystems. This activity is linked to theprevious Focus Area (WRAP).

Most BWSS systems are muchcheaper to install than standard publichealth engineering; but they areunconnected to a central operatingsystem. Thus, their operation andmaintenance requires very differentarrangements from centrally-runsystems, as does any system of charges tocustomers. The importance of gainingcommunity participation and ownershipto ensure O&M and cost recovery has ledto innovatory approaches formanagement of community-basedservice schemes. This Focus Areatherefore covers basic services schemeswhich have these commontechnological, management, financing,

Project example: Gokwe Integrated Rural Water Supply and Sanitation Project, Zimbabwe

Since independence in 1980, the government of Zimbabwe has placed considerableemphasis on improving the well-being of the rural population using a nationalIntegrated Rural Water Supply and Sanitation Programme as part of their strategy.The two districts proposed for EC funding, Gokwe North and Gokwe South, had acombined population of 430,000 who regularly suffered from diarrhoeal infections,and from eye and skin complaints. A primary cause was poor sanitation and hygienepractices, coupled with the use of unsafe drinking water. Surface water supplies arefew, usually contaminated, and often at a considerable distance from people’s homeswhile water from shallow wells is often unreliable. The paucity of supplies was anencouragement to lack of hygiene in the household.

During a three-year implementation period the project aims to rehabilitate 50%of existing water points to the national standard level; provide new domestic waterpoints (boreholes and wells) to 50% of the population; introduce a three-tiermaintenance system in connection with all new and rehabilitated water points,including village-level caretakers; facilitate the construction of latrines in 20% of allhouseholds; educate all communities in health and hygiene and in maintenance ofwater point facilities; and strengthen the process of decentralised planning andimplementation of integrated water and sanitation programmes.

The project benefits from collaboration from a number of partners, requiringemphasis on co-ordination mechanisms’. These include the Ministry of Health andChild Welfare, which is actively involved in a latrine-building and hygiene educationprogramme, and the Ministry of National Affairs Employment Creation and Co-operatives, whose Village Community Workers have the responsibility of mobilisingproject beneficiaries. The Ministry of Local Government and National Housing,through the District Development Fund, is involved with the establishment of waterpoints and the provision of wells, while the Department of Water Developmentsupervises borehole drilling. Finally, the Department of Agricultural Extension isresponsible for land use planning in the context of the siting of boreholes and wells.

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social and economic characteristics, andcan profit from the body of recentexperience associated with suchschemes.

While national governments need tobe aware of the possibilities for basicservices spread using innovatoryapproaches – innovatory not only in thecontext of technology, but asimportantly in social, organisational,management, and financing dimensions– the main operational responsibility forbasic services schemes is likely to restwith local authorities, local councils,NGOs and community groups. Manybasic services programmes will dependfor their successful outcome on anunderstanding of local people’s existingbeliefs and behaviours surround wateruse and human waste disposal, genderroles in relation to water-collection and

storage, and the establishment and/oruse of community mechanisms for theexpression of views and decision-making. Hygiene education componentsshould be included (see Part III).

There should be local participation insettling issues as siting andresponsibility, organisation of labour forditch and tank construction, promotionof hygiene education and environmentalcleanliness, local capacity-building inservice management, and the collectionof levies. In particular, clearresponsibilities at the local level forsystems of operation and maintenanceof installations, and meeting their costs,need to be established. therefore, socio-cultural and information, education andcommunications issues will beparticularly relevant.

Focus Area 3: Municipal water and wastewater services (MWWS)

This Focus Area covers major water- andsanitation-related activities undertakenwithin the municipal area, usually underthe auspices of the Municipal Authoritiesand with their support and facilitation.These Authorities will inevitably have animportant role, if in some casesprimarily a regulatory one, in basicservices schemes for low-income urbanareas covered in the previous Focus Area.But in BWSS schemes, especially whereinformal or illegal settlements areconcerned, community groups areusually the key operators of services. Themunicipal water and wastewater servicesencompassed by this Focus Area areprimarily capital-intensive types ofprogrammes and projects with moresophisticated technology andmaintenance requirements as comparedwith basic services schemes.

Programmes and projects in theFocus Area will therefore include watersupplies, sewerage, urban drainage, andpollution control for a wide range ofindustrial, manufacturing and domestic

consumers. Given the rapid rate ofurbanisation in many developingcountries, one area of concentration willbe the development of additional watersources (see also WRAP); the increasingdistance of intakes from urbansettlements is, in many cases,contributing to the escalation of costs,imposing a need for water-saving andefficiency. Rehabilitation and repair ofexisting systems, including the reductionof wastage from leaking pipes andreservoirs, will be an important area ofactivity. Optimal use of existing systemsshould be preferred to extension of newsystems (unless the new systems areintended for unserved, especially low-income, populations).

Water quality is also a growingconcern. Prevention of seawaterintrusion into aquifers, wastewatertreatment, and control of upstream anddownstream pollution are becomingmajor issues in many developingcountry cities and towns. Innovativesolutions such as recycling and re-use of

water and water saving strategies will beneeded. Cost recovery, regulation anddemand management will be keyelements of programme and projectdesign. Activities in this Focus Area willrelate closely to those covered under ECGuidelines for Urban Developmentwhich are also under preparation.

The institutional responsibilities andtype of agencies involved in provisionand management will come underscrutiny in this Focus Area, probably to agreater extent that programmes and

projects in the basic services Focus Area.There is likely to be more opportunityfor the involvement of private sectorcompanies or public/private partnershipsin the management of programmes andprojects. Reforms of the institutionalframework for provision andmaintenance of services may well beindicated, especially in order to effectefficiency savings and cost recovery;some projects may address suchconcerns directly.

A wide range of stakeholders, many

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● Wastewater treatment plant, taking into account industrial uses● Municipal sewerage installations● Review of tariffs and introduction of new tariff structure/metering● Re-orientation/retraining of municipal water authority staff● Development of private sector partnerships in service management/extension● Rehabilitation of existing systems● Leakage control ● New system of tariff collection/penalties for non-payment

Project example: Extension of the sanitation network in Cairo

By the year 2000, Cairo’s rapidly growing population will reach 16 millioninhabitants. The sewerage network was built at the beginning of this century, and bythe 1980s it was already clearly inadequate to cope with the growing strains imposedby an ever larger and rapidly growing population. It was regularly affected byoverflows due to damaged pipes and overload.

To resolve this insanitary situation, the Government launched a sewerageextension programme aimed at providing Cairo with a sanitation network that wouldbe sufficient to cope with the city’s growing needs. The largest component of theprogramme consisted of the construction of five main waste water pipes, 11 km longin total. Responsibility rested with the Ministry for Reconstruction, Housing and PublicServices, through the Organisation for the Execution of the Greater Cairo WastewaterProject.

A sanitation fee was introduced for the first time in the 1980s. Despite severalincreases, it remains low. More significant increases will be needed to coverconstruction and maintenance costs. The Government took this need into account inits 1992–1997 five-year plan.

The project, which is being supported by the EU through the EuropeanInvestment Bank, will significantly improve the environmental situation of Cairo,alleviating the environmental and health risks in the town centre.

with considerable vested interests, mayneed to be involved; many customers arelikely to be educated, articulate andorganised and will demand a level ofprovision above the basic needs. In some

instances, sophisticated and costlytechnical solutions may be indicated;but all potential solutions will need to betested against efficiency and‘appropriateness’ criteria.

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Focus Area 4: Agricultural water use and management (AWUM)

Food security and agriculturaldevelopment are closely linked to waterresource availability, and the increasingpressure of population on food suppliesmeans that many countries areinterested in expanding their cultivableareas by recourse to irrigation. In manydeveloping countries, irrigation is themain user of water, with almost 70% ofthe engineered supply absorbed byagricultural production. Theconstruction and repair of reservoirs forstoring and retaining surface water is amain irrigation activity; efficiency in theuse of water in irrigation is a criticalconsideration. For the EC, irrigatedagriculture forms a significant part ofdevelopment co-operation, particularlyin Asia.

In the past, many irrigation projectshave inadequately taken into accountpotential negative environmental

outcomes. The importance of drainagefor salinity control and the preventionof water-logging should not beneglected. Similarly, the adverseenvironmental aspects of drainage,including the disposal of drainage water,are of great importance.

This Focus Area is intended to coverschemes relating to agricultural wateruse and management at all levels, fromsmall-scale, community-based schemesto large-scale formal schemes requiringsophisticated engineering. In Asia, it islikely that the rehabilitation andmodernisation of existing systems willtake precedence over the development ofnew schemes. In Africa, new small-scaledevelopments owned and run bysmallholders will probably be morecommon.

Irrigated agriculture is a complexactivity, and the water volumes and


● Development of agricultural sector policy on irrigated farming● Small-scale storage systems for irrigation● Flood control measures● Drainage/prevention of water-logging● Credit programmes for smallholder irrigation● Rehabilitation/modernisation of irrigation systems● Establishment of Farmer User Groups and Participatory Irrigation

Management● Means of improving irrigation efficiency ● Provision of water for livestock

flows it necessitates cannot be addressedin isolation from questions relating toland use, cultivation methods andcropping – issues not addressed in theseGuidelines. Appropriate solutions mustbe developed in accordance withprevailing conditions, in relation tofarming and to water resourcespracticalities. Livestock needs, andgrazing practices and impacts, will alsoneed examination, and conflictsbetween farmers and herders resolved.As a general principle, optimisation ofexisting systems to improve irrigationefficiency is preferred over new, large-scale irrigation schemes given all theenvironmental and other difficultiesattendant on macro-interventions. Insome instances, conjunctive use ofsurface and groundwater will need to beconsidered.

While infrastructure will remainimportant in project design,

institutional, social, economic andcapacity-building issues will be equallyso. An understanding of gender rolesand support for women farmers will bean important aspect of many activities,especially in Africa.

As competition between water userincreases, there will be pressure to reducethe volumes absorbed by irrigation, atleast for crops of relatively low social andeconomic value. At the same time,demand for foodstuffs and higheragricultural yields will continue to rise.Thus the challenge is raise cropproduction while consuming less waterand operating within a more restrictivefinancial and economic regime.

Measures to reduce waterconsumption, cost recovery and demandmanagement will therefore be importantconcerns of programme and projectactivity in this Focus Area. As for otherFocus Areas, the need for re-orienting or

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Project example: Irrigated citrus cultivation in Bali, Indonesia

Small farmers in the northern Buleleng District of Bali grow tangerines as a cash crop.With irrigation, the income generated by the crop can be multiplied by three. Thepurpose of the project, therefore, is primarily to increase farmers’ incomes andprovide job opportunities for the poor. The intention is to irrigate 1,575 ha. of citrusplantation by installing wells; drinking water facilities will also be provided.

Due to blight – now eradicated – the tangerine crop has recently deteriorated.Thus emphasis will be placed on reviving tangerine production by strengthening theextension service of the Ministry of Agriculture. Applied research will be undertakento strengthen the extension package, and extension staff and farmers will undergotraining. Rural institutions known as subaks (water user associations) will be givensupport, and the participation of women encouraged. Since it is intended that thesesubaks will become responsible for the effective functioning of the irrigation servicesafter the completion of external assistance, the strengthening and training of thesebodies is regarded as critical to project success.

The users will contribute to project costs through the provision of land forinstallations and the provision of labour for land-clearing. Farmers will also beexpected to deposit in a blocked account in the name of their subak regularcontributions to a fund for repairing and replacing irrigation equipment as and whennecessary. The details of this repayment policy will be worked out with the subaksduring the early phase of the project.

restructuring Government agenciesinvolved in agricultural water use andmanagement is likely to be a major issuein project design. The involvement ofthe private sector as a partner inconstruction or management of schemesis likely to be a recurring theme, as willthe role in management and financingof Water User Groups and other privateassociations of farmers or otherexpressions of civil society.

Many community developmentprogrammes and projects which includesmall livestock development,horticulture, mini-enterprises andcommunity-based units for manufactureof food or craft products necessarilyinclude water-related components.Projects for the development ofcommunity vegetable gardens,

aquaculture, or woodlots may involveland use changes that affect waterresources. The social importance ofirrigated agriculture is often neglected: itcan be a motor for rural development,and may include non-water componentssuch as feeder roads, electrification, andschools construction. All these kinds ofprojects – at least as far as their water-related components are concerned – canbe regarded as falling into this FocusArea. Other projects falling into thiscategory include those for prevention ofdesertification, water harvesting, soilerosion control and flood control ofagricultural land. In certain countrieswith special geographical characteristics(e.g. Bangladesh) flood control may havea special status.

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Contents- Click on the links below

Introduction 71

Priority themes for action

● Institutional development and capacity-building 72

● Building participatory structures and gender equity 73

● Natural resource management 74

● Expansion of the knowledge base 75

● Demand management and pricing 76

● Awareness-building and communications 77

4Chapter

Overview of actions implied by adopting the Strategic Approach

4All priority themesfor action are‘software’ ratherthan ‘hardware’themes, reflectingthe greaterdifficulty ofaddressing humanrather thantechnical issues inwater resourcesmanagement.

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Overview of actions implied byadopting the Strategic Approach

Introduction

The application of the Strategic Approach presented in Chapters2 and 3 leads to decisions concerning actions. This entailsidentifying problem areas and appropriate responses at everystage of the co-operation process. During the course ofdeveloping checklists for this purpose – which constitute thesubstance of Part II – a number of priority themes for actionemerged. They are presented in this chapter as an additional aidto the user. Many priority action themes are cross-cutting, bothwith regard to the guiding principles and between Focus Areas;almost all include actions related to management andinstitutional strengthening.

Actions suggested will usually be carried out by governments,often with the support of donors; but many require partnershipapproaches, in which government agencies, the private sector,NGOs, community-based organisations, research organisations,and international, bilateral or NGO donors all have a part toplay. The building of partnerships is an inherent characteristic ofthe Strategic Approach, and one of its modalities.

All the priority themes for action described below are‘software’ rather than ‘hardware’ themes, reflecting the greaterdifficulty of addressing human rather than technical issues inwater resources management and development – as in alldevelopment contexts. But it is worth noting that almost allwater-related programmes (except in Water Resources Assessmentand Planning) include engineering of some kind, and that‘hardware’ will continue to consume a high proportion of water-related investment. Integrated management systems require that‘hardware’ and ‘software’ should be interlinked.

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Priority themes for action

Institutional development and capacity-building

The success of policies, programmes and services depends heavilyon the resources, skills and technical expertise of the responsibleinstitutions. These bodies need to be appropriately structuredand provided with a legislative and administrative frameworkwhich favours efficiency. Devolution of some part of servicedelivery to the private sector may be one appropriate form ofinstitutional development, along with the establishment of asuitable regulatory framework. The capacity of institutions needsto be enhanced by means of human resources development andtraining. The process should be continuous, and applies as muchto formal as informal bodies, such as community groups.

Actions include: ● policy review and reformulation to meet requirements for

‘integrated water resources management’; ● review of existing laws and customary practices, with a view

to establishing a rational legal regime and enforcementmechanisms, including over private sector service providers;

● establishment of mechanisms for inter-sectoral liaison andco-ordination, to ensure equitable allocation betweencompeting users;

● advocating/supporting the reorientation of public waterauthorities towards adopting a facilitating and regulatoryrather than a ‘do everything’ role;

● promote public-private sector partnerships;● introduction of up-to-date concepts and techniques, such as

environmental assessment, stakeholder analysis, participatoryappraisal (see Part III);

● setting up of river basin organisations where appropriate,within countries or transnationally; regional co-operation inthis context;

● training and/or reorientation of managers at alladministrative tiers; support for consultative mechanisms andinformation activity;

● help in establishing community-level bodies to play a role inthe installation, management and maintenance of localfacilities.

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Building participatory structures and gender equity

Participation by stakeholders in a given programme or activity isnot only desirable as a matter of democratic right, but to ensurethat investments of money and resources correspond to demandfor services, and to enable those services to be equitably managedin the interests of all. A participatory process allows stakeholdersto take part in decision-making relating to policies and actionsundertaken by formal bodies on their behalf, whereby they alsoaccept a degree of responsibility for those decisions. Thus,mechanisms for the expressions of stakeholders’ views, especiallythose of users, are needed. Within participatory managementstructures, the role of women in household water and foodsecurity needs to be recognised, and special attention paid toinvolving them at all decision-making levels.

Actions include:● establishment of user groups, farmers associations, water and

sanitation committees, and other expressions of civil societyto participate in water resources management at local level;ensure that there are female as well as male members, andthat they play a full part in decision-making;

● provision of funds and networking support for NGOsinvolved at local level in community water and sanitationservice schemes and small-scale irrigation;

● gender-awareness training for personnel at all levels; gender-sensitive recruitment and promotion (see part III);

● research activities targeted on meeting needs and demands ofpoorest users, ensuring that they have the opportunity toexpress their views and equitable access to service provision;

● basic education and technical training at the loweststakeholder levels so as to develop demand for health- andlivelihood-promoting water and sanitation services andparticipation in management;

● micro-project funds to enable community-basedorganisations and small NGOs to undertake local clean-upcampaigns, establish artisanal enterprises and build smallcommunity installations (e.g. public latrines);

● surveys of local indigenous water management techniquesand enterprises; develop ways to build on and legitimisesound local practice.

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Natural resource management

The protection of the eco-system and the natural resources uponwhich all forms of life on earth depend should be regarded as anobligation. Water, as a key natural resource, is a strategic nationalasset and all policies related to it should be consistent andcomply with environmental protection aims. Activities in thiscontext have not, in the past, been given priority; since the 1992Earth Summit, they are beginning to be given their due.

Actions include: ● advocacy on behalf of water as an essential resource with an

economic value, particularly in areas of water scarcity;advocacy of policies and pricing regimes that discouragewastage and pollution;

● investments in environmental protection of vulnerable areassuch as wetlands, coastal zones and fisheries, marginalfarming lands, deserts, and areas vulnerable to floodingand/or soil erosion;

● support for measures which reduce environmental pollutionby excreta-related bacteria (environmental sanitation, see PartIII);

● promotion of clean technology (see Part III) to reduce waterconsumption and encourage recycling;

● training and material support to strengthen environmentalagencies; support their role as watchdog to ensure that‘polluters pay’;

● environmental impact assessments (see Part III) to measurethe potential or actual effects of water-related projects on theeco-system;

● awareness-raising campaigns to educate government officials,professionals, communities and NGOs on the importance ofnatural resource management; ensure the incorporation ofwater-related environmental issues into education curricula.

Expansion of the knowledge base

Water resources development and management and delivery ofwater-related services can only be carried out effectively on thebasis of real knowledge and information, including: Knowledgeof water resources availability: surface and groundwater;information on water quality and its impact on users and theenvironment; knowledge of water and water-related demandsand needs of households, of different productive sectors, and ofsociety as a whole; water requirements of the eco-system,including the aquatic eco-system; knowledge of the good, bad orindifferent performance of water-related services, and their costsrelative to water values.

Actions include: ● supply of equipment, instruments and training in

hydrological, hydrometric and hydrogeological datacollection, storage and analysis;

● surveys of water and wastewater service usage and potentialdemands, including willingness-to-pay and knowledge - attitude-practice surveys among potential users; capacitybuilding in conducting the surveys (see Part III);

● equipment and training for baseline studies into ecologicalneeds and for monitoring ongoing changes in the water-related environment;

● promotion of water quality monitoring, including provisionof laboratory equipment and training; the establishment oflocal water quality standards;

● mechanisms for sharing information between differentadministrative levels and between sectors, agencies andstakeholders involved in water resources management;

● establishment of monitoring and evaluation systems forwater-related programmes and services in all sectors.

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Demand management and pricing

Demand management of water resources is the only viablealternative to indefinite expansion of supplies – a policy optionnot available in countries or regions facing implacablehydrological limits. Demand management implies some form ofwater pricing which, above a basic subsistence supply, iscorrelated with high and low water values, creating conditions inwhich the available supply is more efficiently used. Theimplication of demand management is that users will have ahigh level of motivation to maintain services and keep them inrepair. Actions under this theme are closely inter-linked withthose relating to institutional development and capacity - building, as well as with advocacy for a better understanding ofwater’s importance as an environmental resource. (See also Part III.)

Actions include:● advocacy and awareness-building activities to create the

necessary political climate to accept the principle that wateris an economic good and should be subject to equitable andadequate pricing for all uses, agricultural, domestic andindustrial;

● studies and surveys to assess demand and willingness-to pay;support for the introduction of tariff reform and appropriatepricing regimes;

● feasibility studies to determine the system and levels ofcharges needed for financial viability;

● the establishment of a regulatory framework to monitorprices set by service providers (including autonomous publicsector agencies) and protect the poor from exploitation;

● advocacy of reduction of subsidies, bearing in mind equityconsiderations regarding services for low-incomecommunities and other clearly identifiable ‘public good’considerations;

● promotion of economic analysis, including environmentaleconomic analysis, ensuring that criteria of financial viabilityreflect true values of the resource and its amenity,environmental and health benefits (see Part III);

● introduction of water saving technologies, leakage control,rehabilitation and repair of existing systems.

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Awareness-building and communications

Building political and public awareness of the need to value theeconomic, social, health and environmental values of water isvery important. As an aid to successful programme and projectimplementation, and to ensuring maximum health and otherimpacts of services, the role of communications withinprogrammes and projects is now widely recognised. Techniquesof all kinds should be used to build awareness and provide forinformation exchanges between stakeholders. Without goodcommunications, the development of strong participatorystructures is likely to remain elusive. Policy- and decision-makersneed to be made aware that supply-led service provision tends toenhance, rather than reduce, inequities because it leads towastage. (See also Part III.)

Actions include:● seminars and ‘events’ which offer opportunities to promote

the concept of water as a valuable resource to political leadersand senior administrators;

● social mobilisation, involving all types of stakeholders, allsectors and all levels of administration, in action to improvesanitation and public health;

● introduction of environmental and water-related componentsinto education curricula and in information campaignsdirected at the general public;

● educational campaigns on sanitary behaviour, water storageand use, directed at the public, especially women; campaignsdirected at men to enhance respect for women’s role inhousehold water management;

● studies into existing knowledge, attitudes and practice (KAP –see Part III) regarding water collection, use and managementand waste disposal;

● production of communications aids, and the use of TV, radio,advertising and other media for communication of publichealth messages;

● exchange of experience, project models and best practiceamong managers and operators in different countries andlocalities, by visits, newsletters etc.

● fostering inter-state and inter-country collaborativemechanisms where a river basin is shared and there arepotential tensions over water usage.

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5Chapter

The application ofthe strategicapproach entailsidentifyingproblem areas andappropriateresponses at everystage of theprogrammeprocess.

5

Overview

The strategic approach presented in Part I of the Guidelines provides aframework of policy principles and programming contexts for water-related interventions. Planners, officials, and development workers areexpected to use it as a guide to decision-taking. Part II of the Guidelines isdesigned to enable users to put the strategic approach into effect.

The application of the strategic approach entails identifying problemareas and appropriate responses at every stage of the programme process.Thus the main content of Part II consists of checklists to assist users toput into practice the policy principles set out in Part I, at each of thedifferent stages of the programme process, in each of the Focus Areas.

The user should bear in mind at all times that this is not a manual:these checklists are not meant to be exhaustive, but to act as pointers.Each situation, each problem area for any given Focus Area and any stageof the PCM, not to mention the course of any project, is subject to somany variables that to produce a definitive set of checklists would beimpossible. It would, in addition, be neither efficient nor user-friendly.The whole emphasis of these Guidelines is to avoid prescription, andinstead to facilitate a questioning mode of project development, in whichsensitivity to changing trends, local variety of economic, social andenvironmental circumstance, and especially the input derived fromstakeholder and user participation, can be reflected.

It is anticipated that the issues identified, and the possible responsesdescribed, will lead the user to pursue the most appropriate line ofenquiry, and to perceive problems as soluble if all permutations ofpossible responses are systematically explored. Technical aidssupplementary to the checklists which users can draw upon to assist thisprocess are provided in Part III. In addition, initiative and imagination toput all pieces of the puzzle together, and bring the project to effectivefruition, will certainly be needed.

The application of the strategic approach takes place at different stagesof the programme process, which is identified here according to theProject Cycle Management (PCM) model used for EC development co-operation. (The next section contains a full description of PCM). In someparts of the PCM process, the problem issues and possible responses aresimilar for all Focus Areas, whereas in others they are different. For some

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Introduction

checklists, therefore, the material is generic and applicable for all FocusAreas, whereas for others, each Focus Area is presented separately.

Project Cycle Management (PCM)

PCM is the system for project development, funding and evaluation usedby the EC for all its development co-operation. PCM incorporates twoimportant ideas: the concept of a project proceeding through variousstages from planning to evaluation, forming an identifiable cycle ofdevelopment; and, secondly, the need for management of the projectcycle through all its various stages. Central to PCM is the idea ofmanaging a process, rather than contributing to a one-off event – such asa construction – with a beginning and end. This may be a characteristic offunding, but not of the larger process of development to which projectsare intended to contribute.

Although the word ‘Project’ is part of PCM, it is worth bearing in mindthat this term tends to carry restrictive connotations, and that the phrases‘programmes and projects’ or ‘water-related activities’ have been preferredin these Guidelines. The word ‘project’, therefore, should be interpreted asbroadly as possible. It might include the construction of a majorinstallation or of multiple constructions such as boreholes or catchmentdams; but equally it might not. Project components might be confined,for example, to research, systems assessment and institutional capacitybuilding. In PCM, the term ‘project’ is primarily used for convenience andsimply means the collection of related activities for which a contributionis provided to meet a specified objective.

The EC approach to PCM

The EC practice of PCM is described in the 1993 manual, Project CycleManagement: Integrated Approach and Logical Framework. The projectcycle has six stages: programming, identification, formulation,financing, implementation, evaluation. For every project, a logicalframework is prepared (see figure, at the end of this section) showing theintervention logic of the project as it evolves gradually through its variousstages; it is a key part of all project documents. The approach is thereforeconstructed around the idea of carefully planned phases leading logicallyfrom each other, each with mechanisms of assessment and verification.The adoption of PCM by the EC is designed to improve and streamline itsprogrammes of development co-operation, and make them more effectivein realising their development objectives, including that of producinglasting benefits (sustainability).

Key concepts have been identified by PCM practitioners to improvethe quality of judgment and decision making at all stages of the projectcycle. These key concepts are:Relevance: Are the project proposals relevant to the problem it is

designed to address and to the beneficiaries?

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Feasibility: Can the project idea be realised in practice?Sustainability: To what degree will the assets (physical structures,

institutional systems) created by the project continue to producebenefits after project funding is completed?

These three criteria are important measures of the quality of the project,and should inform judgments and decisions of managers and advisors notonly during the planning stage, but at points during the project cyclewhen amendments and course corrections are indicated.

Reconciliation of PCM with key concepts for water-related activity

Recent thinking regarding development, stemming from lessons learntduring several decades of development co-operation, has brought to thefore certain key concepts; many of these have been explored with regardto water-related development co-operation earlier in these Guidelines (seePart I, under International thinking on water: the consensus). Thereconciliation of these key concepts with the PCM process will requireflexibility.

These concepts, all of which are inter-related, are as follows:● Development as a process: Development is a process to whichprogrammes and project contribute; programmes and projects alone donot themselves necessarily constitute development. A project can beimmaculately executed in technical terms, but if it is out of line withsocial, economic or environmental realities, it may end up as a costly andirrelevant development failure. To try to ensure that programmes andprojects do contribute effectively to development, a process of dialoguewith stakeholders and beneficiaries is needed, not only in the planningand preparatory phase of a project, but throughout the entire projectcycle. This process may throw up a need for longer time-frames, extrastudies or experiments, even major project re-direction. Thus PCM shouldnot be used as a rigid blueprint; no project cycle can be mapped out andset definitively in advance.

● Ownership: Evaluations show that many of the problems and failuresin development programmes occur because the intended beneficiaries donot feel a sense of ownership of, or care for, the product. PCM articulatesdevelopment co-operation from the funding perspective, with evaluationat the end of the cycle feeding back into programming and theidentification of potential new projects for further funding. Thisperspective must be balanced with a user-beneficiary perspective whichviews the project as the creation of assets over which they holdresponsibility, and which – if they exercise that responsibility – will yieldsustainable benefits after funding has ceased.

● Stakeholder involvement: A sense of ownership cannot be createdwithout the involvement throughout the project cycle of all actual or

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potential stakeholders. These are individuals, groups or organisations whohave an interest in a project (see also Part III). Beneficiaries andimplementing organisations are the most important stakeholders, butothers of significance might include religious groups, NGOs, traders,developers, the private sector, and agencies concerned withcomplementary or competing activities in the programme or projectenvironment. Stakeholder interests may therefore be positive or negativetowards the project. Effective PCM needs to take account of stakeholderinterests at every phase of the project cycle, and make suitableadjustments.

● Participation: All the above concepts entail a paramount concept: theneed for participation. Much water-related development activity dependsheavily for its success on active and real participation by the intendedbeneficiaries. It is now recognised that effective participation, as opposedto an exercise in consultation or a communications campaign, can be along process with unpredictable results. It is a vital component of thestages of identification and formulation, and should also be present tosome degree in other stages of the project cycle. (See also Part III.)

It should be noted that Decentralised Co-operation (DC), a form ofdevelopment co-operation which has recently grown in popularity, andfor which the EC has a special budget line (see Part III), underscores theimportance of the concepts noted above. Within Decentralised Co-operation activities, funds are channeled directly to agents of civil society,with the partner government acting as facilitator. In DC programmes,PCM has to be applied with special flexibility and imagination; althoughthe central idea – of planned phases – is applicable in any project.

In summary, PCM is a tool designed to make more effective and efficientthe delivery of development assistance. However, the application of thistool must be sensitive and flexible so as to prevent funding imperativesand procedures from taking precedence over development imperatives. Atany time during the project cycle, adaptations may be needed to takeaccount of changed circumstances or previously unknown factors. Thecriteria of relevance, feasibility and sustainability should be used toinform the judgments and decisions about changes to be made.

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PurposeThe purpose of the programming phase is toassess whether, and in what form, ECdevelopment co-operation in water-relatedactivity should be considered and what itsrole is likely to be within a country’s nationalwater plan. Programming helps to: establishwhat other assistance is being provided, fromwhat sources and in what Focus Areas; reviewexisting water policy; consider water-relatedactivity across all development sectors; andidentify the key Focus Area(s) for water-related projects. The programming exerciseindicates ideas for projects and programmes.

InputsSectoral plans and strategy documents; base-line data and situation analysis;evaluations of past projects; demand analysisand resource assessment;economic, financial, social, institutional andenvironmental analysis.

ActivitiesSectoral and country/regional studies;dialogue with stakeholders; programmingworkshops and missions. A water resourcescountry study may be useful to assess nationaland/or regional constraints, opportunities andpriorities as well as determining the role ofthe different national and internationalactors. A standard format for terms ofreference for a country study is given in PartIII, Chapter 15.

OutcomesThe development or further elaboration of aNational or Regional Indicative Programmefor water, consistent with development plansand with economic, social and environmentalpriorities; the identification of necessarysupporting policy measures, and ofcomplementary activities required in othersectors.

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PurposeThe purpose of the identification phase is todetermine whether it is worth going aheadwith a detailed study (feasibility study) todefine the project more closely. The need orproblem the project is intended to address,and its suitability, will be explored;alternatives considered as well as the fit withother related project plans; base-line data willbe reviewed; and thought given to the social,economic and environmental issues on whichfurther research is indicated.

InputsNational or Regional Indicative Programme(NIP and RIP); evaluation reports and reportsfrom other projects; terms of reference for apre-feasibility study.

ActivitiesStakeholder analysis and consultation,including among proposed beneficiary groupsand their representative organisations;identification workshop;pre-feasibility study. A standard format forterms of reference for a pre-feasibility study isgiven in Part III, Chapter 15.

OutcomesA pre-feasibility report defining a projectconcept consistent with sectoral policy;assessment of the project concept forrelevance, feasibility and sustainability; iffurther work on the project appears justified,definition of issues for the feasibility studyand drawing up terms of reference.

The six phases of PCM

1 Programming: The establishment of general guidelines and principles for EC support.

2 Identification: The initial formulation of project ideas.

PurposeThe purpose of the project formulation stageis to define all the components of the projectin sufficient detail to support an informeddecision on whether to proceed further and, ifthe decision is in favour, to facilitateimplementation. During this stage, it will benecessary to revisit the broader picture of theproject context and framework to see whetherany changes have occurred, and make suitableadjustments based on new information.Estimates will be needed of capital andrecurrent costs, and of how these are to bemet from all possible sources. Theinstitutional and management framework willhave to be identified, and the likely social andenvironmental impacts.

InputsPre-feasibility report defining key componentsof the proposed project; terms of reference forfeasibility study.

ActivitiesStakeholder participation; formulationworkshop; feasibility study;supplementary studies (environmental impactassessment, social impact assessment, genderanalysis, see Part III. A standard format forterms of reference for a feasibility study isgiven in Part III, Chapter 15.

OutcomesFeasibility report; assessment of the projectplan described in the feasibility study forrelevance, practicality and sustainability; endof appraisal report;project design, technical specification andtender documents; operational plan forproject implementation and monitoring;definition of complementary policies oractivities which are necessary to supportproject sustainability.

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3 Formulation: The detailed planning and preparation of the project.

PurposeThe purpose of the financing stage in theproject cycle is to reach an informed decisionto implement the project and to securefunding for it through an agreement betweenthe recipient country and the EC (perhaps inco-ordination with other donors). To achievethis, satisfactory answers will be needed to anumber of questions, including its relevance,feasibility and prospects of sustainability; theaccuracy of costings; and the level ofcommitment and sense of future ownershipby the Government and stakeholders.Demonstration is needed that sufficientfunding to complete the project, andmaintain any installations in the future, willbe available.

InputsFeasibility report; results from complementarystudies (environmental impact assessment,social impact assessment see Part III, Aids).

ActivitiesPreparation of a Financing Proposal andsupporting documentation; review anddecision on the financing proposal.

OutcomesFinancing decision by appropriate EC body,followed by a Financing Agreementconfirming project content and modalities;accompanying measures for projectimplementation and sustainability; definitionof conditions for project financing; definitionof monitoring indicators (see also Part III).

4 Financing: Securing of financial agreement for the project.

PurposeCreating the project assets (physicalstructures, institutional systems) efficientlyand effectively in order to yield a sustainableflow of benefits. Before implementation ofthe project activities, an assessment will beneeded as to whether pre-conditions forimplementation have been met; whether theschedule is realistic; whether all necessarymechanisms for disbursement are in place;and whether the agents responsible forimplementation are well-prepared andperforming satisfactorily.

InputsFinancing Agreement; projectimplementation plan; detailed designs andtender documents; monitoring systems andindicators (see Part III).

ActivitiesDialogue with stakeholders and thoseadministratively responsible; project start-upworkshop; project execution; mid-termreview, project supervision. A mid-termreview can be particularly useful to helpreformulate projects to take account ofchanges and the standard format for terms of

reference for an evaluation study, given inPart III, Chapter 15, could be modified for usefor a mid–term review.

OutcomesProject executed as far as possible accordingto plan; drafting of further plans to ensurethat project assets can be operatedsuccessfully to maintain a sustainable flow ofbenefits.

MonitoringA key activity during implementation is themonitoring of actual events. Carefulmonitoring of the project process will enableremedial action to be taken to addressproblems or revisions that may be needed.The quality of the subsequent evaluationstage will be highly dependent on effectivemonitoring.

To facilitate monitoring, a set ofindicators are needed as a basis formeasurement of progress; indicators shouldinclude process indicators, for monitoring theactual project process, and outcomeindicators for measuring its achievementagainst planned outcomes. (See also Part III.)

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5 Implementation: Execution of the project plan.

PurposeThe purpose of the evaluation phase is toarrive at a clear and comprehensive view ofhow successful the project has been inmeeting the needs and objectives originallyidentified; and to learn lessons for futureprojects. The evaluation may also contributeto improving or changing water policy, orinstitutional and management frameworks forwater resources development andmanagement.

InputsProject reports; results of monitoring surveysand audits; terms of reference for anevaluation study. A standard format for termsof reference for an evaluation study isincluded in Part III, Chapter 15.

ActivitiesAn evaluation study carried out by anindependent team (consultants, universitiesor others who have had no directinvolvement with the planning orimplementation of the project). Evaluationscan be mid-term (during the lifetime of theproject) or final, sometimes called ‘ex-post’, atthe end of the project or some years afterproject completion.

OutcomesAn evaluation report giving (i) a clear pictureof the achievements of the project orprogramme and (ii) lessons learned andrecommendations for improvements.

6 Evaluation: Analysis of activities and outcomes of the project.

PCM and EC Funding Instruments

Projects in which the EC co-operates are subject to administrativevariation according to the funding instrument under which projectsupport is provided. EC funding instruments allow for a range of differentkinds of support, including the traditional study or project approach,sector investment programmes, fiscal support measures and policy orstrategy development.

In the case of most funding instruments, the legal basis for suchsupport requires that the agreement is between the EC and the centralgovernment of the partner country. However, some budget lines havebeen devised to allow for funds to be remitted directly to institutions ofcivil society, including NGOs, and semi-formal administrative entities atlocal level such as Community or Village Councils. These include thebudget lines for micro-projects, NGO support, and Decentralised Co-operation (to which reference has already been made); thereafter in theseGuidelines these forms of funding will be referred to as extra-governmental funding.

The two Directorates-General, DGIB and DGVIII, have different rolesand procedures. Similarly, each partner country will have its ownmechanism for managing externally funded support programmes. Suchdifferences must be taken into account during the programming phase.Care is needed to ensure that the support to be provided satisfies all theplayers before proceeding to the identification phase.

A description of EC funding support for co-operation in waterresources development and management through agreements withpartner country governments is provided in Part III, Chapter 14.

How to use the checklists

The following six chapters contain the core material for the application ofthe strategic approach in the form of checklists for each project cyclemanagement phase.

It is important to understand the organisation of this material. Forsome parts of the PCM – programming, financing, implementation andevaluation (stages 1, 4, 5 and 6) – there is virtually no variation betweenFocus Areas. For example, in the context of financing, the issues whichhave to be addressed and the actions taken to arrive at a financingagreement are the same independently of the Focus Area for which aproject is designed. Similarly, issues and actions for programming,implementation and evaluation are the same across Focus Areas. Thechecklists for these activities, therefore, are generic and applicable ‘for allFocus Areas’.

However, for the other two stages – project identification and project

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formulation (stages 2 and 3) – the issues to be addressed and thecorresponding actions differ from Focus Area to Focus Area. For example,the potential environmental and technical implications of theconstruction of a storage works for irrigation may be different from thosestemming from the development of a gravity-flow safe water supplyscheme to domestic standpipes. Therefore, there are separate checklists forproject identification and project formulation for all Focus Areas.

Whether under a PCM stage treated generically, or under a PCM stagehandled separately for a specific Focus Area, each category of guidingprinciples is worked through systematically. The order in which issues andresponses are addressed is the same as the order of their elaboration inPart I: institutional and management principles; social principles;economic and financial principles; environmental principles;information, education and communications principles; andtechnological principles.

The checklists have been constructed in the following way. In the left-hand column, key issues or problem statements are identified, followedby examples of the kind of questions which the user may want to pose tothe authorities, stakeholders, or to him- or herself, in order to assesswhether and in what way this issue needs to be addressed. In the right-hand column, possible responses in the form of studies or other activitiesare suggested. The checklists for the programming and financing phasesare the exception. This is because programming occurs before any projectshave been identified and is therefore by its nature a different kind ofexercise. Unlike the other PCM phases, programming entails a logicalstep-by-step sequence of actions to produce its outcome (theidentification of Focus Areas in which co-operation might be proposed).Similarly, financing is a structured process to enable the EC to make adecision on a Financing Proposal.

As already stated in the Overview to Part II, the user should bear inmind that this is not a manual. The checklists are not meant to beexhaustive but to act as pointers. The emphasis of these Guidelines seeksto avoid prescription, but rather to facilitate a questioning mode ofproject development.

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Results

Food situationimproved

Increased riceproduction in hillregions

1 Irrigation networkfunctioning

2 More regular supplyof inputs

3 Farmers using newfarming skills

1.1 Organise ruralfarmers 1.2 Clear blockedchannels 1.3 Raise dykes 1.4 Train farmers inmanagement andparticipation

2.1 Organise purchaseof inputs2.2 Organise inputsdistribution

3.1 Organiseextension service3.2 Train extensionworkers3.3 Train instructors(men & women)3.4 Study effects ofuse of inputs onenvironment

Food situationimproved. After1997, 300kg rice or60kg maniocconsumed same(indexed) price as in1992

increased riceproduction per ha94 95 96 97 10%20% 30% 10% (+/–45% output sold)

From 1995 all fieldsadequately irrigated

A month beforeplanting all peasantfarmers haveseedlings and 50 kgfertiliser per ha

Farmers apply theagricultural calenderand plant at rightdistance from 1996onwards

EC human resources● 120 m/m means

invested● 3 cars/

4 motorcycles● 3 houses/offices● Working capital

Government human resources● 240 m/m means

invested● 4 houses● running costs

Survey byMinistry ofAgriculturein 1998

Projectreport94/95/96/97

Survey ofpeasantfammer’s95/96/97

Reportsfromextensionservicesand projectteam

(x 1000ECU)

1200

60140500

1900

120

4040

200

Example of a logical framework

Intervention logic

Objectively verifiable indicators

Sources ofverification Assumptions

Increased agriculturaloutput on hills, with over50% of rice cropconsumed by prducers

No sabotage of irrigationsystem

Farmer associationscarry out maintenance ofirrigation system

Mechanised riceproduction

Rice surplus coversproduction costs (inputs)

Access roads in goodcondition

Extension workersmotivated by incentives

Traders continue tosupply inputs

Extension workers ableto establish dialoguewith farmers

Extension service meetschanging needs offarmers

Budget for training stillavailable post-project

Disputes between hillfarmers and lowlandfarmers are settled

Official approval oforganisational set-up

Preconditions

Overallobjectives

Projectpurpose

Activities

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6Chapter

Programming

Identification

Formulation

Financing

Implementation

Evaluation

The establishment of general guidelines and principlesfor EC co-operation with partner countries

Programming

6The purpose of theprogramming stageis to assess whether,and what form,development co-operation should beconsidered.Programminganalyses currentneeds and policies ina country or region,and identifiesopportunities for ECsupport. As water isfundamental to socialand economicdevelopment, thischapter sets out todecide on priorityFocus Areas forsupport in order toachieve an integratedapproach to waterresourcesmanagement.

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Programming

The programming phase provides an opportunity to review all national,regional and local factors relating to water, and the policy and operationalcontext for water-related development co-operation.

During this phase, priorities will be identified for potential water-related activities within the wider context of national developmentobjectives, indicating which Focus Area(s) are most in need of support.

At the programming phase, a truly integrated approach whichbalances needs and possibilities within an overall water resourcesmanagement framework is practicable and easy to apply. However, anintegrated approach requires a wide range of information collection andanalysis. A standard format for a country study is given in Part III,Chapter 15, which can be used together with the checklists given below.

The essential questions for the programming phase are:● Is EC development co-operation needed for water resources?

● In which Focus Area(s) and by what kinds of support woulddevelopment co-operation be most beneficial?

Checklists have been developed to correspond to the following four stepsin the programming process:

Step 1: Assessing the need for water resources support;

Step 2: Determining the capacity of recipients to take on and manageprogrammes;

Step 3: Identifying complementary activities in other sectors and byother donors and assessing the compatibility of any proposedprogramme;

Step 4: Identifying the priority focus areas for support.

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Checklist for Step 1: Assessing needs

All support should be demand-driven, fully endorsed by the partner country, anddeveloped in consultation with the target groups.

● What is the priority given to water resources in national developmentpolicy, including issues in which water resources are critical such assurvival, health, natural resources conservation or food production,even if they are not specifically stated?

● Is there adequate political support to make policy implementationfeasible?

● Is there adequate conformity between Government policy at nationallevel, and the local-level problems and needs being tackled by localand community-based organisations?

● What type of requests in the past has the partner government made todonors for support in issues related to water resources or where watermay play a significant role?

● Are there indications that water issues are of concern to the people(through NGOs, media reports, pressure groups etc.) and how is thegovernment responding to the people’s concern?

● Are associated issues, such as land use, pollution, etc., prominent, andis the government committed to resolving constraints between waterand other associated issues, such as energy, navigation and tourism?

Some countries may be fully aware of water resources issues and makeappropriate plans whilst others are unaware or take a short-term view.

● Is the country, or some regions, now facing water scarcity or stress orlikely to do so in the near future?

● Does it appear that the country needs support in order to manage itswater resources adequately?

● If no water policy exists, or is inadequate, should help be provided toprepare one?

● Do current government policies demonstrate an awareness of waterresources issues and the possibility of conflicts between users?

● To what extent are people’s wants and needs known and understoodand is improved water resources management critical to the socialwell-being of the entire country or of specific regions within it?

● Does the government recognise the need for an integrated/over-arching water resources policy that ensures that water resource needsof different sectors are addressed?

● Is present legislation adequate to manage water resources effectivelyand, if not, can EC provide co-operation to rectify this?

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In formulating any programme or action plan for water resources, care is needed to avoid contradictions between water-related sectoral policies such

as those for agriculture, energy and transport, and environmental policies.

● What is the current level of commitment, both in policy and practice,to maintaining biodiversity and protecting the aquatic ecology?

● Is the government already committed to water resources developmentand management and does it appreciate the importance of anintegrated approach?

● To what extent are the non-consumptive aspects of water resources,such as in-stream use, hydropower, flood control, recreation, andnavigation taken into account in water policies or proposeddevelopment plans?

● Have proposed project plans or programmes been developed inconsultation with the various sectoral and sub-sectoral agencies?

Policies established by government should be developed in consultation with the various stakeholders to ensure that conflicting interests are reconciled

as far as possible and that the policy is acceptable to them.

● Are there indications that the government policy and actions on waterbenefit the poor and disadvantaged rural or urban populations andthat they are included in the development process?

● To what extent is there conflict between users (both consumptive andnon-consumptive) and between use and conservation? Isattention/awareness paid to this?

● Are transboundary issues significant to water resources managementand is the government party to treaties or agreements withneighbouring countries?

● Are there conflicts over water between neighbouring administrativeregions of the same country?

Based on the above assessment of needs, decide whether:

1. There is a need for support to water resources in the country orregion, or

2. Water resources do not appear to be a critical issue, or the countryis confident that it can adequately manage water resourceswithout EC development co-operation, or

3. There is inadequate information available to make a decision; inthis case consider whether policy support and water resourceassessment and planning should be given a high priority in thecountry or regional programme.

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Checklist for Step 2: Capacity to take on and manage programmes

A water resources programme can only be effectively implemented if there isadequate capacity within government and partner organisations to handle the

institutional, technical and financial demands contained within it.

● What is the past record with EC and other donor supportedprogrammes in water resources? Do evaluations of recentprogrammes/projects offer useful indications?

● Are customary rights, transboundary disputes or other legal issues aconstraint to effective support to water-related activities?

● Is the institutional structure adequate for effective management anddo the key organisations have clear, legally defined mandates?

● How many key agencies are there at the higher tiers of authority andare they capable of managing water resources in a holistic and co-ordinated way?

● Is institutional reform needed, and if so, is the government aware andsupportive of reform?

● What is the present condition of the water resources infrastructure,and if it is in poor condition, why has this occurred?

There are a number of mechanisms for the provision of EC support. It is importantto identify the most suitable mechanism during the programming phase and to

ensure adequate local funding is available.

● How are different types of water-related activities presently financed,and to what extend is cost recovery considered?

● Is the country able and willing to support local recurrent costs andmake adequate budgetary allocations for proposed water resourcesactivities?

● Does the country have the capacity to handle large conventionalinfrastructure projects or would smaller-scale intervention be moreappropriate?

● Which mix of EC funding mechanisms is most appropriate forinterventions in water resources?

● Is the type of intervention proposed within the administrative,financial, and managerial capacity of the country?

Development co-operation can, in certain circumstances, be provided to agentsother than central government under Decentralised Co-operation (see Part III

EC Resources) and other budget lines for NGO support and micro-projects.

● Is the central government receptive to and supportive of direct donorpartnership with non-governmental organisations?

● Do NGOs exist which are representative of civil society’s interests andneeds concerning water and can they reliably manage EC support?

● Do the identified organisations carry popular confidence and support,as well as respect from government?

● Does the government support the principle of devolving power,notably responsibility for operation and maintenance of serviceinstallations, to the lowest appropriate administrative level?

Many local organisations lack capacity, which has led in the past to successfulparticipation but poor implementation, monitoring, and follow-up.

● Do the partner organisations have the technical and managerialcapacity to manage projects and, if this is weak, is there adequateassistance locally to support them?

● What is the professional competence of the potential partnerorganisations involved in water resources, including local associationsand NGOs, and do they understand EC requirements?

● Are all parties aware that project support through NGOs may requiremore operational flexibility and careful monitoring and managementby the EC?

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Based on the above assessment of capacity decide whether:

1. Policies and capacity are adequate for significant EC support towater resources development and management, or

2. Policies and capacity are adequate in general but there are specificweaknesses that would have to be addressed as part of anyprogramme, or

3. Capacity is weak and support should be initially focused ondialogue with the country to determine ways to reform policiesand strengthen capacity.

Also decide whether:4. Indications are that direct support to NGOs (extra-governmental

support) would be appropriate and bring additional benefits ifused in conjunction with other types of support, or

5. Government capacity is weak but opportunities exist for extra-governmental support, or

6. Local conditions and government priorities do not favour extra-governmental support.

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Checklist for Step 3: Compatibility and complementarity

Water resources development and management must be assessed with regard to compatibility with the overall development plans of the country.

● Do national development plans include measures to ensure thesustainable use of water resources?

● Are environmental aspects (including in-stream use) of water treatedseriously and addressed in policies related to other sectoral activity?

● Is water a key element of many economic activities and becoming aconstraining resource?

● What options are available for meeting current and future waterneeds, and have alternatives to supply augmentation been considered?

● Are complementary measures needed in other sectors to achieve amore integrated approach to water resources management?

● Are the policies in other sectors compatible with sustainable waterresources development and management, as set out in the GuidingPrinciples?

The EC must ensure that any programme does not conflict with other donor activity and vice versa.

● What support are other donors providing in water resources or water-related activities and is water considered a high priority or taken forgranted – is there coherence/co-ordination on water resources issues?

● What other assistance is presently being provided by EC in waterresources development, and does it provide guidance on futureprogrammes?

● Does support by the EC or other donors in other sectors complementor conflict with possible interventions for water resources?

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Based on the above assessment of compatibility decide whether:

1. Activities in other sectors or by other donors can be effectivelycomplemented by EC support to water resources; or

2. There is some overlap or other incompatibility with activities inother sectors or being undertaken by other donors; this should beresolved prior to EC support to water resources; or

3. Activities already underway in other sectors or by other donorssuggest that EC support to water resources may be inadvisableunder current circumstances.

Checklist for Step 4: Identifying priority Focus Areas

It is important to identify which Focus Area(s) is/are most in need of externalsupport. This priority setting has to fit within an overall programme based on

responses to the earlier key issues.

● Is there a particular area of water use or management critical to socialand economic well-being?

● What is the place of the different Focus Areas within existing nationaland regional plans and international co-operation?

● Do policy conflicts make holistic planning difficult or reduce thepossibility of support to any of the Focus Areas?

● Does the government specify and apply priorities between domestic,agricultural, and industrial water use?

● Do existing laws relate to water, and if so, do they provide a basis foractions in improving water resource utilisation and management?

An adequate knowledge base is crucial to reasoned planning and decision makingon water resources development and management.

● Is technical information readily available on the quality and quantityof water sources, including surface water, soil moisture, and aquifers?If not, will lack of information constrain effective planning?

● Are predictions of future supply and demand being made on the basisof realistic assumptions, and do they take into account non-consumptive uses of water?

● Are the numbers of people in rural and urban areas without cleanwater or sanitation known, and is there adequate information onwater- and waste disposal-related health issues?

● Is information available on the agricultural use of water and thoseserved?

● What is the potential for increasing food productivity throughirrigation, land drainage or flood control?

● Is the strategic role of ‘virtual water’ (see Part III) understood and takeninto account in assessing the need for irrigated agriculturalproduction?

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Possible Responses to Assessment of Steps 1 to 4

Each partner country is unique and their categorisation should not be tooprescriptive. However, as a guide, the responses to steps 1 to 4 can help toidentify the priorities for EC support, which should be discussed with thecountry. The following sets out a general basis for selecting differentprogramme responses based on the impression gained from the issuesraised in steps 1 to 4. Three categories can be determined:

Category A:A recipient country or region in this category is likely to have weakinstitutions, with minimal evidence of good governance in general;specifically, it will be either unaware of, or have limited commitment to,sustainable management of water resources. The country probably haslittle capacity to manage large programmes even though the need isevidently great. In such cases, EC Development Co-operation shouldfocus on:

● projects or programmes which help the government to improvepolicy, and legislation, strategy formulation, and assistance to identifypriority programmes;

● the provision of basic services, capacity building, and improvementand re-organisation of institutions. However, considerable care will beneeded in preparing projects and require the judicious use of technicalassistance. It is likely that such countries will be most in need of ECsupport and a decision to refuse investment in water-relatedinterventions should only be taken if no suitable partners fordevelopment can be identified.

Support for infrastructure will need to be designed to help the poorest insuch a way that minimum external assistance is needed once work iscompleted. In this context community ownership may be critical and keypartners need to be identified to help reduce the risk of unsustainableservices. Indigenous local technology or the careful selection ofappropriate modern technology will be needed.

The role of NGOs or community-based organisations and innovativefunding instruments such as decentralised co-operation may have animportant role. Support should be given to awareness-raising andknowledge generation, such as hydrological assessments, that will beuseful for later, more extensive interventions and permit better planningand management of water resources.

Focus Area 1 (WRAP) will be important but appropriate support withinFocus Area 2 (BWSS) and Focus Area 4 (AWUM) should also be considered.

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Category B:In this category there is likely to be clear evidence of a commitment togood governance in general and an awareness of, and desire for, equitableand sustainable water resources development and management (includingperhaps some policy strategies in preparation). This should include anacceptance of the importance of stakeholder involvement and evidence ofprogrammes to improve human resources capacity that should make ECinterventions fundable. EC support can be more extensive than forcategory A as the risk of a poor response to EC Development Co-operationis much reduced. Support may still be required for:

● improving policy, strategy, legal and regulatory frameworks to improvewater resources management and build on any existing work;

● assistance to increase the participation of stakeholders and, inparticular, facilitating the increased involvement of the private sector;

● encouraging capacity building and institutional improvements at alllevels;

● giving increased importance to cost recovery via service charges – withprogressive steps towards equitable tariffs – to allow reductions in statesubsidies;

● support for knowledge generation – strengthening data andinformation systems.

All focus areas should be considered for support as long as suitablepartners can be identified that will take ownership of the projects orprogrammes.

Category C:In category C the country is likely to be politically stable with clearevidence of progress towards instituting a systematic approach to waterresources development and management, including legal and regulatoryframeworks, capacity building and private sector development. In suchcountries there is likely to be an awareness of, and commitment to, themodern concepts of water resources management. EC Development Co-operation could provide support for:

● devolution of responsibility to lower administrative tiers or to theprivate sector, including capacity building for local government, theprivate sector, and community organisations in water resourcesdevelopment and management;

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● assumption by central government of a planning, legal, regulatory,and facilitating role including re-allocation of water resources betweensectors; and the establishment of a framework for increased public-private partnerships;

● measures to introduce pollution control, wastewater treatment and re-use, and charges to industry for pollution of water courses or aquifers;

● the adoption of demand management measures to ensure reliablesupplies, including rehabilitation of existing structures or othermeasures which minimise the need for new infrastructure;

● the improvement of integrated management through increasingknowledge about cross–sectoral linkages leading to a multisectoralapproach to water resources development and management, includingpositive participation in managing transboundary waters;

● the provision of more sophisticated knowledge and data generationand computerised management information systems.

All Focus Areas should be considered for support.

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7Chapter

Programming

Identification

Formulation

Financing

Implementation

Evaluation

The initial elaboration of project ideas

Identification

7The purpose of theidentification phase isto examine optionsand identify viableinterventions thatcan address thepriorities identifiedduring programming.Identificationdetermines whetherit is worth goingahead with a detailedstudy (feasabilitystudy) to define theproject more closely.Pre-feasability studiesare the main outputsof the identificationstage and there canbe several issue-related studies or onecomprehensive study.

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WATER RESOURCE ASSESSMENT AND PLANNING

KEY ISSUES POSSIBLE RESPONSES

Institutional and Management Principles

The lack of an integrated policy environment at the national level can lead to inefficientallocation of water resources and poor investment decisions. Therefore examine:

● What is the national waterdevelopment policy environmentand water-specific legislativeframework?

● What are the priorities for sectorsdependent on water (e.g.hydropower, agriculture) and theassociated goals for water resourcedevelopment?

● Does an up-to-date,comprehensive assessment ofwater resource development andmanagement issues exist?

■ Assess current water policies todetermine if they are appropriate interms of overall national andregional social and economicdevelopment priorities.

■ If water policies are inappropriate,consider support for new or revisedpolicy formulation, includingpriorities.

■ Establish the government’scommitment and political willtoward establishing integrated waterresource management.

■ Consider providing support for acomprehensive water resourcesassessment and managementstrategy.

Fragmented planning functions and agency responsibilities lead to sector-based project-by-project development and inter-sectoral conflict. Therefore examine:

● Which agencies, governmentaland professional, are involved inplanning and co-ordination atnational, regional and locallevels?

● What is the potential for conflictamong different water-relatedsectors and users, and whatmechanisms exist to resolve suchconflicts?

● Would the creation/improvementof river basin organisationsbenefit assessment and planning?

■ Commission a comprehensiveinstitutional review concerningwater resources assessment andplanning.

■ Consider establishing orstrengthening inter-sectoral co-ordinating bodies at national,regional, river basin and local levels(e.g. inter-ministerial commission,river basin committees etc.).

■ Review lead and support agencyfunctions; identify overlaps,potential conflicts and methods forresolving them.

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For all phases of the project cycle other thanprogramming, checklists have been prepared in thesame format, to allow the user of the Guidelines toexamine key issues likely to arise in the preparationand implementation of projects, alongside possibleresponses. Issues and responses are groupedaccording to a set of problem statements within theframework of principles established in the strategic

approach, starting with Institutional andManagement principles, and proceeding through allcategories of principles. In the Identification andFormulation phases, each programming context ishandled separately since issues and responses differbetween Focus Areas. In other phases, issues andresponses are generic, and the same set of checklistsapplies in every Focus Area.

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Transboundary water resource issues are critical to water resource availability in many countries. Therefore examine:

● What agreements govern thesharing and protection of waterswith neighbouring countries?

● What are the effects ofneighbouring countries’ waterstrategies on water resourcesdevelopment and planning, andvice versa?

■ Consider ways of strengtheninginternational agreements.

■ Encourage the establishment of aregional/basin framework to guidewater resource planning andmanagement studies.

Neglect of legal aspects during strategy formulation can lead to an untenable legal framework for sound resource management. Therefore examine:

● What laws govern or regulate theuse, development andconservation of water resources,and are they appropriate and upto date?

● How effective is the enforcementof water-related laws andregulations?

■ Commission a study on legislation,analyse its consistency, andrecommend necessary changes at alllevels in the legal hierarchy.

■ Consider assistance to thegovernment for re-draftinglegislation.

■ Review the effectiveness of existingenforcement capabilities.

Disregard for stakeholder participation and too much emphasis on top-down planning tend to produce poor results. Therefore examine:

● Who are the key stakeholdersinvolved in water resourcesmanagement and what are theirrespective interests?

● Do the policy framework andplanning mechanisms encourageand facilitate stakeholderparticipation?

■ Ensure adequate awareness of themeaning of stakeholderparticipation and clarifycommitment to it within allpolicies.

■ Undertake a Stakeholder Analysis toidentify key stakeholders and theirrespective interests. (see Part III).

■ Identify/strengthen mechanisms toenable stakeholders to voice theiropinion on water priorities.

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Social Principles

National and regional social development goals should be integrated with water resourcespolicies if key objectives are to be achieved. Therefore examine:

● What are the national andregional social developmentobjectives?

● What are the potential socialimpacts of investments in WRAP?

● What are the needs and demandsof different social sectors withregard to water?

■ Assess compatibility of socialdevelopment objectives with waterresource policies.

■ Determine the impact of the currentwater situation, including waterquality and pollution issues, onvarious social sectors.

■ Conduct a Social Impact Assessment(see Part III).

■ Support studies to establish waterdemands of the different socialsectors including health, education,housing, leisure, and culture.

Disregard for the social context of water use and a lack of consultation with stakeholders canresult in inappropriate interventions. Therefore examine:

● What mechanisms are in place toensure adequate participation ofbeneficiary/user groups inplanning?

● Which cross-cutting issues (suchas gender, poverty alleviation,needs of ethnic minorities) shouldbe addressed?

● Which potential user groups areknown to be particularlydisadvantaged?

■ Work with Local Authorities, NGOsand community groups to establishan appropriate participatoryapproach (see Part III).

■ Support measures to involveespecially disadvantaged groups inthe process of identifying priorities.

■ Identify which groups need to beinvolved during the formulationstage, and a suitable level ofparticipation.

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Economic and Financial Principles

A sense of the economic value of water is necessary to balance scarce resources with increasingdemand, reduce wastage and encourage conservation. Therefore examine:

● What is the size of water-intensiveor water-reliant sectors within theeconomy?

● What is the economic value ofwater in its alternative, oftencompeting, uses?

● What are the projected demandsfor water in all its (competing)uses, including consumptive andnon-consumptive uses?

■ Estimate sectoral water use withinthe economy and establish waterneeds to support developmentobjectives.

■ Review water values in its differentuses and consider the implicationsfor future supply provision.

■ Determine the effects of watershortages in all its competing uses,especially during drought periods.

Policies for allocation of water resources within and among sectors should promote economicefficiency and encourage higher-value uses. Therefore examine:

● What procedures are used forallocating water among itsdifferent uses, and are theyefficient and flexible enough torespond to changingcircumstances?

● What mechanisms exist for re-allocating resources (from low- tohigh-value uses), and what wouldbe the implications of any re-allocation?

■ Review the efficiency and flexibilityof current allocation mechanisms(legal and administrative), andinvestigate alternative allocationmeasures.

■ Investigate the scope for tradablewater rights and water markets (seePart III).

■ Investigate the likely negativeeconomic and social impacts of re-allocation, allowing for events suchas drought or floods.

Water is a scarce resource and demand management measures offer a means to augmentexisting supplies and conserve resources. Hence examine:

● What is the outlook for the futurebalance between the supply anddemand for water?

● What is the potential foreconomic instruments in themanagement of water resources?

● What economicincentives/disincentives have amarked impact on water use?

■ Analyse water demand projectionsand compare with supply fromvarious sources, by region, season,and use, taking into account theeffect of drought.

■ Analyse cost of supplying (orsaving) water from different sources,including supply-side and demandmanagement measures.

■ Assess impacts of pricing policiesand subsidies, and investigate thepotential of market-based incentives(water tariffs, pollution charges,water markets see Part III).

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Environmental Principles

Environmentally sound water resource development and management relies on an integrated policy framework. Therefore examine:

● What is the environmental policy,which government andprofessional bodies are involved,and how does environmentalplanning relate to waterplanning?

● What is the potential for conflictbetween environmental needs andwater-related developmentobjectives?

● What are the potentialenvironmental impacts ofdifferent interventions, and whatmechanisms exist to reducepotential adverse impacts?

■ Undertake initial screening and, ifneeded, a PreliminaryEnvironmental Assessment toidentify potential environmentalimpacts associated with alternativeinterventions (see Part III).

■ Check environmental policy onpollution, health, and aquaticsystems, and match with water-related policy.

■ Strengthen/help establish aneffective environmental agencywith links to water resourcesagencies.

Water is an essential natural resource and should be planned and managed within the context of an overall natural resource management strategy. Therefore examine:

● To what extent is an integratedresource management approachfollowed?

● To what degree have all potentialwater sources been considered?

● What provision is required for‘environmental flows’, ofsufficient quantity and quality?

■ Identify land/water interactions andwatershed management strategies;where practicable, proposeassessment and planning on a river-basin basis.

■ Examine the potential for water useefficiency and resource conservationthrough conjunctive use of surfaceand groundwater sources.

■ Check that the environmental waterneeds for the conservation ofenvironmental assets have beenidentified and taken into account,especially for periods of low flow.

A lack of baseline data can make it difficult to assess the potential environmental impact of interventions and may lead to unplanned degradation. Therefore examine:

● What is the level and quality ofenvironmental baseline data, andwhat additional data is required?

● What knowledge exists on theneeds of the aquatic eco-system?

■ Identify and assess sources ofenvironmental data andinformation, and establishadditional requirements.

■ Include data and information-gathering components in furtherstudies.

■ Support research into the waterdependence (both quality andquantity) of different aquaticecologies.

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Communication between government agencies and other stakeholders is necessary if water-related development interventions are to be relevant. Therefore examine:

● What mechanisms are in place tosupport communication betweengovernment agencies and otherstakeholders?

● How effectively does the decision-making process incorporate usergroups’ needs?

■ Investigate existing communicationsystems for adequacy and frequencyof information exchange.

■ Review and strengthen user groupparticipation (see Part III).

Without an understanding of water resource management issues, important stakeholders areunable to contribute effectively to planning. Therefore examine:

● To what extent are raisingawareness and educationprogrammes seen as a primaryfunction?

● What is the level of awarenessamong key stakeholders?

● To what extent are planningprocesses transparent andinformation accessible tostakeholders?

■ Identify whether awareness-raising(see Part III) is clearly defined withinplanning agency roles andresponsibilities.

■ Encourage and support educationalprogrammes through appropriatemedia.

Information, Education and Communication Principles

Water resource assessment and planning is an inter-disciplinary process that relies on a broadknowledge base as a pre-condition for effective planning. Therefore examine:

● To what extent is the existingstate of knowledge a constraint toinformed decision-making?

● What are the constraints toinformation exchange andavailability?

■ Review current data collection,analysis, storage and disseminationsystems.

■ Highlight the implications of arestricted knowledge base on levelsof risk; give equal emphasis toinformation on water quality .

■ Review mechanisms for informationexchange and examine ways ofimproving information availability.

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Technological Principles

Assessment of surface and groundwater resources, their allocation and use is a precondition forplanning water resource management. Therefore examine:

● What is the availability of surfaceand groundwater resources, andhow are they distributed betweensectors?

● What proportion is governed andcontrolled by water allocationprocedures (e.g. water rights,water permits)?

● What is the reliability of data forall sectoral uses and what demandassumptions are used?

● What is the amount of waterunaccounted for at the basinlevel?

■ Establish current water allocation,actual use, and future demands forall sectoral users and thesignificance of permits or rights.

■ If water data collection isinadequate or the data is unreliable,recommend a programme ofmonitoring to improve datacollection, storage and analysis.

■ If knowledge of actual resources orresource use is inadequate,recommend a study to strengthenresource assessments.

Effective planning relies on a wide range of tools to enhance the knowledge base andunderstand linkages between physical and non-physical processes. Therefore examine:

● To what extent is the knowledgebase a constraint to application ofplanning tools andmethodologies?

● To what extent do currentplanning tools and methodologiesmatch the planning scale (spatialand temporal)?

■ Review and assess planning tools forcompatibility with currentknowledge and data availability,and the skills and resources ofplanning agencies.

■ Identify improved planning toolsand methodologies and assesstraining requirements to up-gradeplanning agency capability.

Hydrological and hydrogeological information form the basis of water resource assessments.High quality data is needed for reliable assessments. Therefore examine:

● To what extent does the existingnetwork adequately match theplanning scale?

● To what extent does the location,frequency and quality of datamatch planning requirements?

● Are the hardware and analysismethods for basic data collectionappropriate?

● What mechanisms are in place tocope with events such as droughtand flood?

■ Review data collection networks,compare with recommendedstandards (e.g. WMO), and assesscompatibility with spatial andtemporal planning scales.

■ Identify requirements forstrengthening of basic datacollection networks.

■ Verify that technologies match thetechnical and financial resources ofthe responsible agencies.

■ Help establish a disasterpreparedness strategy including datamanagement and early warningsystems.

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BASIC WATER SUPPLY AND SANITATION SERVICES



Basic water and sanitation service activities should be consistent with an integrated nationalwater policy, and WHO standards. Therefore examine:

● What are the current nationalwater policies and prioritiesregarding basic provision of waterand sanitation services?

● What is the current unsatisfieddemand for clean water andsanitation, especially amongdisadvantaged groups?

● Is the institutional frameworkequipped centrally and locally toprovide efficient and sustainableservices?

■ Work with government to identifyBWSS options consistent withnational policies which follow WHOguidelines (see Part III).

■ Establish a realistic nationalminimum standard of service, andestimate the number of peoplefalling below this.

■ Help government to rationalise theinstitutional structure to ensureeffective service delivery and assessrisks of any weakness in theframework.

Effective inter-agency and inter-sectoral planning is essential. Therefore examine:

● What other agencies (professional,private and NGO) should beinvolved in the planning processand what should be their roles?

● What mechanisms exist for inter-agency or inter-sectoral co-operation and co-ordination?

● What kind of activities orapproaches do the differentagencies promote?

■ Compile a comprehensive list of allother relevant agencies, and consultwith them to identify developmentoptions.

■ Recommend procedures to enhanceinter-agency co-operation.

■ Bring other key agencies such ashealth and education into theplanning process.

■ Include support for measures toharmonise regional or nationalapproaches.

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Maximum stakeholder participation is essential for an effective project, from the earliestpossible stage. Therefore examine:

● To what extent do the institutionalstructures and ethos of the BWSSagency promote stakeholderparticipation at the planningstage?

● How will the stakeholders beidentified and what proceduresexist to ensure their understandingof the stakeholder concept andeffective participation?

● Are planning decisions devolved tothe lowest appropriateadministrative level?

■ Conduct a Stakeholder Analysis toensure identification of stakeholders,and find ways of incorporating theminto the planning process (see PartIII).

■ Ensure that the concept ofstakeholder is not equated with‘beneficiary’, but acknowledgesownership of stakeholders within theproject.

■ Plan for stakeholders to be informedabout the principles of stakeholdingand their expected role in theproject.

■ Assess the feasibility of devolvingpower to regional, district or sub-district level.

A sound legal basis is required for effective delivery of BWSS service, therefore:

● Does legislation exist to put BWSSpolicy into practice and are theremeans to enforce standards?

● Is there potential or actual conflictbetween national BWSS policiesand regional or internationallegislation (see Part III)?

● Is there an acceptable legal statusfor the different stakeholdersinvolved, especially user groups?

● Is there a legal framework definingthe rights and responsibilities ofusers and service providers?

■ Assist government to strengthenlegislation to achieve policyobjectives and compliance withrelevant standards.

■ If the legal basis restricts effectivesupport to BWSS and government isunwilling to change it, consideralternative modes of support (e.g.decentralised co-operation) (see PartIII).

■ Assist the development of legalframework which gives legal status touser groups and defines the rightsand responsibilities of users andservice providers and permits themto fulfil their duties.

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BWSS projects have traditionally focused on design and construction and tended to neglectOSM and management. New policies may seek to transfer responsibility for O&M to the

private sector or user groups. If so:

● Have national implementingagencies been restructured toreflect revised policies on transferof responsibility of BWSS schemesto user groups?

● What are the current structures forO&M and management of BWSSactivities?

● What scope exists for privatisingsome part of thedelivery/management of BWSSservices?

■ Assist government to carry out aninstitutional review and advise onappropriate restructuring.

■ Ensure that pre-feasibility studiesidentify viable mechanisms for userparticipation in the O&M andmanagement, of the scheme.

■ Commission a review to identifyservices that may be sold or sub-contracted to private sector or tostakeholder groups and determinecost-effectiveness of service action.

Capacity building for government institutions and user groups is required to support new initiatives. Therefore examine:

● Do implementing agencies havethe necessary human and physicalresources required to identify andaddress national priorities forBWSS services?

● Is the concept of ‘basic services’ inwater supply and sanitation clearlyunderstood?

● Are appropriate training facilitiesfor management, communication,analytical and technical skillsavailable for staff of the relevantagencies?

■ Review the technical and managerialcapacity of all relevant agencies toidentify where capacity building isrequired (see Part III).

■ Match equipment/infrastructure tothe technical and human resourcesavailable.

■ Ensure that the concept of ‘basicservices’ in water supply andsanitation is clearly defined (see PartIII) and that their benefits areunderstood.

■ Commission a training needsassessment to be carried out at thepre-feasibility level.

Management information systems in which both users and service providers have confidenceare essential for improved operational efficiency. Therefore examine:

● What management informationsystems for BWSS schemes are inplace at national, regional andproject level, and are theyappropriate?

● What are the resources, financial,technical and human, forcontinued monitoring andevaluation once donor supportceases?

■ Identify weaknesses in currentsystems during pre-feasibility studiesand make recommendations forimprovement.

■ Include provision of specialisttraining to assist staff in the settingup of appropriate monitoring andevaluation systems.

■ Include provision for datamanagement that is sustainable inthe longer term.

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Social Principles

BWSS initiatives should be integrated with social development goals and policies. Therefore examine:

● What are the social developmentgoals and policies in the intendedproject area?

● What are the potential socialimpacts of investment in BWSSservices?

● To what extent will the projectmeet the needs of those hithertounserved by existing watersupplies and sanitation facilities?

■ Review social development policyand determine its compatibility withpossible actions in BWSS services.

■ Conduct a preliminary Social ImpactAssessment (see Part III) in the pre-feasibility study.

■ Identify those not served by waterand sanitation facilities, and makeevery effort to incorporate theirneeds into proposals

BWSS projects can bring great health and convenience benefits to communities, but withoutcareful regard to user norms, they can be underused or even abandoned. Therefore examine:

● Who are the main users andhaulers of water?

● What are the current norms forhousehold water use and personalhygiene?

● What is the current level ofunderstanding of the rationale forclean water and personal hygiene?

● What are the current arrangementsfor the disposal of human waste?

■ Verify that Participatory Appraisalmethods are used to establish whoare the main users of water, and thatother cultural, hygiene, health anddisposal issues are documented (seePart III).

■ Include arrangements to educateusers on the health and social valueof safe disposal of human waste.

■ Identify appropriate measures tocollect data, including indicators todetermine the level of uptake.

A community-based approach helps to ensure a sense of ownership of the project by the stakeholders and user groups. Therefore examine:

● Are users and their existingorganisations accurately identifiedat the earliest stage?

● Are adequate time and resourceswritten into the project to permitstakeholders to be integrallyinvolved?

● Do stakeholders understand theconcept of stakeholding?

● Are existing community groupsincorporated into the projectstructure?

■ Specify the scope of the StakeholderAnalysis required (see Part III).

■ Check that the project structureallows time and resources forconsultation with all stakeholders,and allow for informationprogrammes to facilitateinvolvement.

■ Include sufficient flexibility in theproject structure to permitmodification based on stakeholderand user feedback.

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Women have a central role in BWSS projects, not only as primary users, but to manage waterresources. Their participation at all levels of planning is needed. Therefore examine:

● Does the implementing agencyapply the EC Women inDevelopment guidelines?

● Are implementing agenciessensitive to women’s role in watercollection and use, and recognisethe range of women’s communityroles, including managementroles?

● What specific measure areincluded to increase women’sawareness and involvement?

■ Verify that agencies responsible forproject identification are applyingthe EC Women in DevelopmentManual, and the Beijing Strategy forAction (see Part III).

■ Include gender analysis (see Part III)and gender planning training incourses for implementing agencystaff, and in information packagesfor stakeholders.

■ Ensure that women’s groups form asignificant proportion of allcommunity consultation andtraining activities.


The economic value of water is an integral part of BWSS. Therefore examine:

● What are the likely long-termeconomic benefits arising fromimproved supplies of clean waterand sanitation?

● What are the current costs ofinstalling, managing andmaintaining water and sanitationservices and who pays them bywhat methods?

● How far are ‘basic needs’ for waterand sanitation (see Part III)currently being met?

■ Ensure that the economic aspects ofwater use are estimated and fed intothe planning process.

■ Clearly identify global and unit costelements (financial investment,depreciation, O & M) and specifywho covers which cost element.

■ Advise on measures to ensure thatmeeting basic needs and access toservices for all is embedded inproject preparation.

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Charging for services is needed to generate funds for future investment and to ensuremaintenance. However, the concept of water as a free resource can be difficult to overcome.

Therefore examine:

● Is there a declared national policyon water pricing and cost recoveryfor BWSS schemes, includingO&M and management?

● Are charging levels related toability to pay and how will currentincome levels affect ability to payfor new schemes?

● Is the concept of paying forhitherto free resources and assetsunderstood?

● Is there an adequate structure tomanage the funds collected and/orcredit secured?

■ Encourage government to define apractical policy on cost recovery forBWSS schemes and ensure that thereis a system in place.

■ Ensure that O&M and depreciationcosts are included in cost recoverycalculations and ensure adequateprovision to cover all costs, eitherfrom consumers or providers.

■ Commission a willingness-to-paystudy (see Part III).

■ Determine the opportunity costs ofwomen’s, men’s, and children’s timein fetching water.

■ Identify a suitable and trustworthysystem whereby user groups can holdfunds locally.

Where possible, demand management through both market and non-market measures should be incorporated into projects. Therefore examine:

● What is the likely demand forBWSS services; what are theincentives for stakeholders to useand conserve water; and do thesetwo concepts conflict?

● What practical market- and non-market-based incentives may beused to ensure sustainability ofBWSS projects?

● Will the provision of water lead toan increase in micro-enterprises inthe area, and will this lead tohigher consumption?

■ Quantify likely demand levels andassist governments to establish aregular review system.

■ Commission a study of legal andinstitutional obstacles to price andnon-price instruments for demandmanagement (see Part III).

■ Ensure that project design usesoptimum water conservationtechnologies.

■ Ensure that any likely increase inmicro-enterprise is properly assessedand costed.

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Projects must demonstrate financial viability and accountability. Therefore examine:

● What is the estimated total projectcost?

● How will expenditure be audited,both financially and technically?

● What is the past experienceregarding financial contributionsfrom the proposed implementingagency?

● Does the agency have adequatehuman and financial skills, andhow will their activities beaudited?

■ Prepare cost estimates for eachoption identified during theidentification phase.

■ Specify the financial and technicalmonitoring procedures, includingthe relevant indicators.

■ Assess the ability and commitmentof the community or local authorityto make required budgetarycontributions.

■ Provide training and resources foreffective financial managementwithin an appropriate institutionalframework.


Environmental damage may result because insufficient time and money is invested in collection and analysis of baseline data. Therefore examine:

● Have the range and significance ofenvironmental impacts andrequirements for furtherenvironmental analysis beenidentified?

● What environmental baseline dataare available or required, are theyreliable, and do they take intoaccount seasonal variations?

● Have the stakeholders beeninvolved in the collection of data?

● Will the quality of the watersupplied meet WHO minimumstandards without expensivetreatment?

■ Undertake Initial Screening, and ifneeded, Preliminary EnvironmentalAssessment (see Part III).

■ Include a statement ofenvironmental data availability andrequirements in pre-feasibilitystudies, and specify what further datacollection will be required.

■ Check what the sources of data are,and indicate where data may beunreliable.

■ Ensure that the need for treatment ofhuman wastes created by newsanitation schemes has been takeninto account.

■ Ensure water quality is adequate.

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BWSS projects often bring changes in water use. Therefore examine:

● What changes in water use areanticipated, and in humansettlement and grazing?

● Will rainfall and groundwatergiven seasonal variation besufficient over time?

● What will be the effects upstreamand downstream of the project,especially of sanitation, and whattechnical measures will be taken toprotect natural resources?

■ Quantify likely changes in waterdemand arising as a consequence ofthe intervention and check that thisis compatible with wider river basinplans.

■ Commission an assessment oftraining needs for use ofenvironmental appraisal procedures.


The development of a BWSS knowledge base is a pre-condition for development of services.This requires effective data collection and monitoring procedures. Therefore examine:

● How satisfactory is the baselinedata on water resources?

● What are the sources of the data?Are they accurate and unbiased?

● Are stakeholders’ knowledge,attitudes and practice (KAP)included in the sources of data (seePart III)?

■ Review current data collectionmethods, analysis, storage anddissemination systems for BWSSschemes. Make sure the datacollected is appropriate and includeswater quality and health data.

■ Advise on improvement of systemswith due regard to resourcesconstraints.

■ Ensure that, in addition toconventional statistical methods,participatory methods of datacollection are incorporated.

Without an understanding of the principles of BWSS schemes, stakeholder participation is weakened. Therefore examine:

● What is the current understandingof the rationale for clean waterand sanitation for health andbetter living?

● What is the current level ofunderstanding of the concepts ofparticipation and stakeholding?

● What are the linkages withInformation, Education andCommunications (IEC) activitiesby health and education agencies?

■ Ensure that an appropriate educationcampaign is developed, particularlyfor women and on health awareness.

■ Include discussions and workshopsand other extension activities todisseminate information.

■ Identify training needs forinformation management in thepublic sector, and to strengthen therole of the NGO sector.

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Appropriate technological solutions should be selected according to criteria that includeefficiency, ease of operation, capital and operating costs, and the management capacity of the

users. Therefore examine:

● What indigenous technologies arein use; what appropriate moderntechnology (imported and local) isin use (see Part III); what is thedesirable balance?

● Is the scale of the project realisticand in keeping with availableresources, in terms of proposedtechnologies?

● What is the potential for localmanufacture of appropriatetechnology (imported andindigenous (see Part III)?

● Is conservation of water suppliestaken into account in assessmentof technologies?

● If NGOs are to be involved, what istheir previous experience andtechnical ability?

■ Assess the likely technologies andtheir appropriateness for users.

■ Confirm that the scale of the projectis realistic in terms of policies, cost,available technology, O&Mrequirements, and training andinformation resources.

■ Confirm that appropriate technicaltraining is available and costed intothe project.

■ Ensure that technologies suggestedare compatible with theunderstanding of agency staff andusers.

■ Ensure that women are consultedabout technological options andtheir suitability.

■ Identify NGOs with suitableexperience and/or allow for technicalsupport from government orconsultants.

MUNICIPAL WATER AND WASTEWATER SERVICES



MWSS activities should be consistent with a national integrated water policy, and institutions’ functions and responsibilities clearly identified. Therefore examine:

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● What is the government policy forMWWS and what priority does itgive projects?

● What is the municipal structureand institutional framework forMWWS?

● What has been the level of successof other projects with a similarscope working with the chosenmunicipal agencies?

● What level of priority is theproposed project activity accordedin strategic planning goals?

■ If there is no specific policy onMWWS, or it is inadequate,commission a policy review.

■ Advise relevant authority on steps toclarify the role and functions of eachlevel of MWWS.

■ Identify institutional deficienciesand address them. Consider a studyto analyse the feasibility ofestablishing a national water agency.

■ If MWWS are not considered apriority, assess the reasons andidentify the implications for co-operation.

● Which agencies, municipal, inter-municipal, governmental and non-governmental, are involved orhave the potential to be involved?

● Have all relevant agencies beeninvolved during identification?

● What is the potential and whatpolicies/plans exist for co-operation between the proposedagencies?

● How do policies address inter-sectoral co-operation betweenindustry, domestic supply andwater for agriculture?

■ Ensure that a comprehensive list ofagencies is drawn up and that allagencies are consulted.

■ Identify inter-sectoral policy andplanning weaknesses and ensurewater forms a part of overall urbanplanning.

■ Identify current agency roles relatedto the proposed project and considerways to facilitate co-operationbetween them.

■ If co-operation is not good, put inplace mechanisms to resolvedifferences or find alternativeagencies.

Effective inter-agency and inter-sectoral planning is essential. Therefore examine:

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● How are stakeholders, consumersand operators involved inidentifying the future needs ofMWWS?

● What framework exists forallowing participatorymanagement of MWWS schemesand sharing the benefits?

■ Seek ways to involve users andoperators in the process, for examplethrough advisory committees,workshops and discussion groups.

■ Carry out a Stakeholder Analysis. (SeePart III.)

■ Design a consultative mechanismand incorporate within themanagement system.

■ Clarify the broad framework,including legal, for participation andconsultation.

● What are the institutionalprovisions for MWWS installation,maintenance and management?

● How does MWWS managementneed to be restructured to improvemaintenance?

● What are the tasks andresponsibilities of eachorganisation and municipaldepartment responsible for projectmanagement and maintenance?

■ Establish a network maintenanceplan within an appropriateinstitutional framework as part of thepre-feasibility study.

■ In the pre-feasibility study, assessexisting shortcomings and identifyimprovement measures and costs.

■ Consider whether restructuringcould be included as specialconditions and/or accompanyingmeasures.

■ Discuss responsibilities with themunicipality and any supportingactivities that need to be included inthe project.

MWWS projects have traditionally focused on design and construction aspects and neglectedoperation, maintenance and management. Therefore examine:

Maximum stakeholder participation is essential for an effective project and should be involvedat the earliest possible stage. Therefore examine:

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● What is the most suitable form ofprivate sector participation?

● What policy support is there at thenational level to encourage privatesector involvement in projects forMWWS?

● What is the scope for local privatesector involvement in themanagement and operation ofwater supply and wastewaterservices?

● What scope is there for theintroduction of private capital andexpertise, including inmaintenance and revenuecollection?

■ Study the range of options forprivate sector involvement (see PartIII), and discuss ways to support thepreferred option as part of the pre-feasibility study.

■ Support measures to improve privatesector involvement, such as changesto laws, training and structurecontracts so as to provide sufficientworking capital.

■ Identify any strengthening of policyand regulation necessary to controlprivate partners in the publicinterest.

● What management informationsystems are in place at nationaland municipal levels?

● How can appropriate water andwastewater services beincorporated into the planningprocess?

■ In the pre-feasibility study, assess theshortcomings of the existingsituation and identify improvementmeasures together with costs.

■ Include provision of specialisttraining to assist staff in setting upmonitoring and evaluation systems,including process and impactindicators (see Part III).

● What is the institutional structureof MWWS administration, andhow efficient is it?

● What managerial and technicalskills does the proposedimplementing agency have formanaging the project?

● What training programmes andfacilities are used for MWWS, fromnational to the user level?

● What policies and practices areused to motivate personnel, suchas salaries, promotion, training?

■ Identify deficiencies and addressthem through institutionalrestructuring.

■ Include the provision of local and/orexternal specialist technicalassistance and training in projectdesign.

■ Review training needs in acomplementary study, includingtechnical and commercialrequirements.

■ Investigate ways of introducingpolicies and effective practices forstaff motivation so that they remainin service.

Management information systems in which both users and service providers have confidenceare essential for improved operational efficiency. Therefore examine:

Capacity building for government and/or municipality staff and user groups is required tosupport new initiatives. Therefore examine:

Participation of the private sector can be important in the efficient delivery of municipal waterand wastewater services. Therefore examine:

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● What information exists on thegroups of residents and theircurrent problems?

● Have the preferences and needs ofall consumer groups been tested(including those in micro-industries, crafts and horticulture)?

● How do townspeople get water?Who, within the family, is incharge of providing water andpaying for it?

● Are marginal or peri-urban areasexcluded from the municipalauthority responsibilities?

■ Include a municipal review as part ofthe pre-feasibility study.

■ Prepare terms of reference for a morecomprehensive socio-economicstudy during formulation.

■ Conduct surveys of consumers,including ethnic differences, theunserved and the role of women.

■ Make a preliminary assessment oftheir willingness to pay for servicesor improvements (see Part III).

■ Investigate ways of working withinformal service providers (seeBWSS) to bring poorer urban areasinto the remit of the MunicipalAuthority.

● Have the social context and thelikely social impacts been dulyconsidered?

● Are any of the social groupsinvolved known to be particularlydisadvantaged or poor and howcan their interests be safeguarded?

● What will be the short-term andlong-term benefits to local peoplefrom their perspective?

■ Conduct a Social Impact Analysis(see Part III).

■ Commission a baseline study.■ Specify quantifiable indicators in

the pre-feasibility study or in aseparate socio-cultural study.

■ Plan to target all groups, especiallythe unserved and poorest.

■ Consider tariff structures/costrecovery to meet the needs of poorconsumers (see Part III).

MWWS projects can bring great health and social benefits to urban areas. But without verycareful regard to users’ norms and needs, projects can be underused. Therefore examine:

Social Principles

Municipal water and wastewater services initiatives must be integrated with the socialdevelopment goals of the municipality. Therefore examine:

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● Have all potential consumers beenidentified and what mechanismsexist for their involvement inplanning?

● Will the project cause temporarydisruption or require resettlementand how will this be handled?

● Are any social groups likely to besignificantly disadvantaged(ethnic/ poor/ women) and willmicro-enterprises be adverselyaffected?

■ Conduct a broad stakeholder analysisand seek ways to involvestakeholders in the planning process.

■ Examine the likely need forresettlement in the pre-feasibilitystudy and estimate the requirementsfor compensation.

■ Identify potential compensatorymeasures and reject the project ideaif these are not satisfactory.

● Have the benefits of improvedwater services been fullyinvestigated and been factoredinto the investment appraisal?

● What are the current costs ofwater?

● Is wastewater collection andtreatment properly costed andfinanced?

● What are the economic benefits ofthe project and to whom?

■ Identify the main social, economicand health benefits expected fromthe programme, in monetary termswhere feasible (see Part III).

■ Review current water costs andupdate throughout the identificationprocess; analyse the costs ofproduction, treatment anddistribution.

■ Carry out a preliminary economicanalysis in accordance with the ECManual (see Part III).


The economic value of water is an integral part of MWWS. Therefore examine:

Community involvement by stakeholders and users is more likely to ensure project success.Therefore examine:

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● What is the municipal policy onwater service and sewerage tariffsand cost recovery? How canMWWS be placed on a soundfinancial footing?

● Do current tariffs reflect historic,current or future costs of supply?

● Are charging levels related toability to pay?

● What are the institutionalprovisions for the collection ofcharges for water supply andwastewater services?

● What has been done tocommercialise O&M andmanagement of installations?

■ Examine the current level of tariffsand their financial yield. Determinethe levels necessary to meet thefinancial obligations of the authority.

■ Draw up a strategy on tariffs andsubsidies including a component tocover wastewater charges. (see Part III).

■ Estimate the marginal cost ofincreases in present consumption,and design tariffs accordingly. (seePart III).

■ Commission a willingness to paystudy (see Part III).

■ Investigate ways in whichcommercialisation could beintroduced to improve cost recovery,e.g. in revenue collection.

● To what extent is expenditureaudited by financially andtechnically appropriateprocedures?

● What is the past experience ofother projects with regard tofinancial contributions from theproposed implementing agency?

■ Assist agencies to establish orimprove external auditing practicesin all expenditures, preferably byinvolving the independent sector.

■ Assess financial management anddisbursement capabilities ofparticipating institutions.

■ Ensure that the responsible agency isautonomous and committed tomaking budgetary allocations.

● What is the likely demand forwater services?

● What are the incentives forstakeholders both to use andconserve water?

● Does the project design useoptimum water conservationtechnologies?

■ Commission a study of legal andinstitutional obstacles to price andnon-price instruments for demandmanagement.

■ Specify the information andextension resources required tomake stakeholders aware of possibleincentives to use and conservewater.

Projects must demonstrate financial viability and accountability. Therefore examine:

Demand management through both market and non-market measures should be used inconjunction with supply provision; in water-scarce areas, demand management should take

priority over supply-led solutions. Therefore examine:

Charging for services is necessary to generate funds for future investment and to ensuremaintenance and long-term financial viability. Therefore examine:

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● Have the project’s potentialenvironmental impacts, and theneed for further environmentalanalysis, been incorporated?

● What reliable environmentalbaseline data are available orcollectable?

● What environmental guidelinesare available to assist projectpreparation?

■ Conduct a preliminaryenvironmental assessment (see Part III).

■ Include an environmental baselinestudy early in the project.

■ Include preparation of guidelinesduring formulation or as an earlyproject activity.

● How satisfactory is the waterresource database as a basis forreaching scientifically informeddecisions?

● What baseline data collection andmonitoring systems are in place?

■ Assess existing databases with respectto hydrology, hydrogeology, waterquality and environmental impact.

■ Assess suitability of data collectionsystems for managing the resourceand ecosystem; plan improvements.

● Is excessive groundwaterwithdrawal occurring? How canthis be discouraged?

● Is fossil groundwater proposed asthe water source?

● What are the dangers of pollutionto the groundwater?

● What will be the effects on surfacewaters and, in particular,downstream users?

■ Assess aquifer depletion and itsimpact on water users and theenvironment.

■ If fossil groundwater is the proposedsource, investigate alternativesources.

■ Study groundwater quality, thepotential for pollution and the needfor monitoring.

■ Determine likely changesdownstream, including impacts onother riparian states.


The development of a water and wastewater knowledge base is necessary and requireseffective data collection and monitoring procedures. Therefore examine:

Municipal water and wastewater services often have adverse effects on water use, particularlygroundwater. Therefore examine:


Environmental damage may result because insufficient time and money is invested in collectionand analysis of baseline data. Therefore examine:

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● How willing is the municipality toensure that stakeholders andpublic have access to informationon proposed MWWS?

● What is the level of awareness andeducation concerning MWWSamong consumers and otherstakeholders?

■ Determine mechanisms fordisseminating information tostakeholders.

■ Assess the awareness of theimportance of saving water and ofenvironmental impacts in relation toMWWS.

■ Prepare an appropriate strategy forhealth education and awarenessraising (see Part III).

● What is the size, growth andhistorical development of the city?

● What are the main activities of thecity and the surrounding area?

● Who is in charge of data collectionfor water, sanitation, health, floodcontrol, urban planning, etc. andis the data analysed, stored andaccessible?

■ Commission studies and use keyinformation in the urban planningsurvey.

■ Secure a realistic assessment ofhuman, technical and financialresources.

■ Assess data handling and storagemethods and decide whether andwhat data managementimprovements are needed.

● How appropriate are the proposedtechnologies in all contexts,including water resourceassessment models, tools andmethodologies?

● What are the actual and presentwater uses in the city? Quality,quantity, water pressure, dailydistribution of needs, for eachcategory of consumers: domestic,industry, service, agriculture?

● What quantity of storm water is tobe disposed of and how will this bedone?

■ Investigate the most appropriatemodern technology and promote theuse of clean technology (see Part III).

■ Evaluate accessibility to appropriateequipment and spare parts.

■ Identify the most appropriate scale ofintervention. Small-scale pilotprojects can later be up-graded.

■ Ensure realistic planning andscheduling; plan for whole-cyclesolutions from point of extraction topoint of disposal.

Technical knowledge forms the basis of all good design. Therefore examine:


MWWS should be technically efficient, using appropriate modern technology that is adapted to suit local physical, economic and social conditions. Therefore examine:

Education and awareness-raising targeted at municipal staff, stakeholders and users should beused to strengthen stakeholder participation. Therefore examine:

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● Which governmental and NGOagencies are or could be involvedin activities relating to AWUM orflood control?

● How successful are similaractivities implemented by therelevant agencies?

● What mechanisms exist for inter-sectoral co-operation?

● Do the mandates of agenciesinfluencing irrigation, drainageand flood control fostercompetition or duplication ratherthan co-operation?

■ Ensure that a comprehensive list ofagencies is drawn up and consulted.

■ Review experiences of past projectsand recommend improvements.

■ Assist agencies responsible foragricultural sector development tointegrate water use planning withother sectors.

■ Recommend procedures to enhanceinter-agency collaboration.

■ In pre-feasibility studies, aim toidentify possible conflicts betweenland and water use policies.

● What aspects of AWUM are givenpriority within the national waterpolicy?

● What types of initiative will findgreatest support from government?

● To what extent do land ownershipand customary rights influence theproject’s potential sustainability?

● Is there potential or actual conflictbetween national AWUM policyand international agreements?

■ Assist government to develop orupdate its policy for waterdevelopment.

■ Avoid options that do not addresspriority needs in irrigation anddrainage or where governmentsupport is weak.

■ Review customary rights and landownership and determine if conflictsare likely to arise. If irreconcilable,abandon any intervention.

■ Identify possible areas of conflict andinitiate discussion to resolve issues.

Fragmented planning functions and agency responsibilities lead to sector-based, project-by-project development and potential inter-sectoral and inter-agency conflict. Therefore examine:

AGRICULTURAL WATER USE AND MANAGEMENT



AWUM activities must be consistent with an integrated national water policy setting out thelegal and policy framework for service provision. Therefore examine:

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● Who are the key stakeholders andwhat are their interests andconcerns?

● What are the concerns of farmers?● Does the institutional structure

and character of AWUM agenciespromote stakeholder participationin planning and design?

● What procedures exist to ensureeffective consultation withstakeholders?

● Are planning and managementdecisions devolved to the lowestappropriate level?

■ Undertake a Stakeholder Analysis. ■ Make sure that any proposed

intervention is fully supported byfarmers.

■ Commission a review of the agenciesto identify ways of ensuring greaterresponsiveness to stakeholder wishes.

■ In pre-feasibility studies, determinehow potential beneficiaries can gainownership of the project.

■ Assess the feasibility of devolvingpower from national to regional andlocal level institutions (subsidiarity,see Part III).

● Is there a defined national policyon transfer of systems to usergroups such as Water UserAssociations (see Part III)?

● Are implementing agenciesappropriately structured toimplement transfer policies?

● What are the current structures forO&M and management, and howwill transfer improve theirfunction?

● What scope exists for privatisingfunctions of irrigation anddrainage agencies?

● Does a legal framework define therights and responsibilities of usersand providers?

● How is future O&M to be funded?

■ Assist government to define andpromote a practical policy ontransfer.

■ Assist government to carry out aninstitutional review and advise onappropriate re-structuring.

■ Review existing managementstructures and O&M procedures andidentify how transfer ofresponsibilities will improveefficiency and sustainability.

■ Review service provision and identifythose that may be sold or sub-contracted to private sectorcontractors or farmers/farmer groups.

■ Help define a legal framework givinglegal status to water user groups andidentify means of group formation.

■ Identify the funding structure forpost-project O&M.

Agencies have traditionally focused on project design and construction and neglected operationand maintenance. Policy may now be to transfer responsibility for O&M to the users. If so:

Stakeholder participation can help resolve conflicts of interest and promote user ownership ofprojects. Management and institutional structures should facilitate the participation of all

interested parties. Therefore examine:

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● Do implementing agencies havethe human and physical resourcesrequired to identify and addressnational priorities for AWUM?

● Are appropriate training facilitiesand programmes available forstaff?

● Does training includecommunication, leadership andanalytical skills as well astechnical skills?

■ Review the technical and managerialcapacity of all agencies to identifywhere capacity building is required.

■ Commission training needsassessments within principalagencies in the pre-feasibility studies.

■ Determine the need for training oftrainers and participatory facilitatorsand their inclusion in projectplanning.

● What are the social developmentobjectives for the region in relationto AWUM?

● What are the potential socialimpacts of investment in AWUM?

■ Review social development policy forthe region and determine itscompatibility with possible actions.

■ Conduct preliminary Social ImpactAssessment (see Part III) in pre-feasibility studies.

● What management informationsystems are in place at national,regional and project levels?

● How can appropriate managementinformation systems beincorporated into the planningprocess?

● Do management informationsystems allow for monitoringperformance and levels of service?

■ Ensure pre-feasibility studies identifyweaknesses in existing systems andsuggest improvements.

■ Include provision of training to assiststaff in setting up appropriatesystems including selection ofprocess and impact indicators.

■ Ensure that the managementinformation system includesappropriate monitoring systems,agreed indicators and the means tocollect and analyse data.

Social Principles

Agricultural water use and management initiatives must be integrated with the socialdevelopment goals of the region. Therefore examine:

Management information systems in which both users and service providers have confidenceare essential. Therefore examine:

Capacity building (see Part III) for government staff and user groups may be required tosupport new initiatives. herefore examine:

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● Is community cohesion adequateto permit effective community-based actions?

● Are potential users identified andenabled to participate in projectidentification at the earliestpractical stage?

● Are adequate time and resourceswritten into the identificationphase to permit effectivestakeholder participation?

■ Review past interventions, examinetraditional patterns of co-operationand consider practicalities ofcommunity-based programmes.

■ Ensure potential users are identifiedand involved in defining priorities.

■ Ensure the project structure allowstime for meaningful dialogue withall stakeholders and their inclusionin project planning.

● What is the opportunity cost ofland and water used for irrigationand can this information be usedin planning?

● Does government policy towardsirrigation distort incentives forefficient farming and resourceallocation?

■ Estimate values of land and water indifferent uses and opportunity costsin irrigated agriculture or flooddefence.

■ Advise on measures to help prioritisewater allocation within agricultureand between this and other uses.

■ Review overall costs per ha. and carryout a preliminary economic analysis(see Part III).

● Do implementing agencies fullyrecognise the contributions androles of women in AWUM?

● Do implementing agencies useprocedures that are sensitive to theneeds of women?

■ Ensure that agencies are applying theguidelines of the EC Women inDevelopment Manual (see Part III).

■ Include gender awareness raising andgender planning training for staff.

■ Include gender awareness raising ininformation packages forstakeholders.


The economic value of land and water must be reflected in AWUM actions. Therefore examine:

In many regions women are responsible for production decisions and contribute significant field labour. Measures are required to ensure women’s effective participation in project

planning and design. Therefore examine:

A community-based approach is more likely to ensure ownership of the project by the intendedbeneficiaries. Therefore examine:

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● Is there a declared national policyfor AWUM on water pricing andcost recovery?

● What is known about ability andwillingness to pay O&M costs?

● What do cost recovery policiesinclude? Do they include drainageinstallation or O&M?

■ Encourage government to define apractical and sustainable policy oncost recovery in irrigation.

■ Conduct a willingness-to-pay study(see Part III).

■ Ensure there is adequate capitalprovision for drainage infrastructureand that O&M costs are included incost recovery plans.

● What is the estimated total projectcost, and the estimated value ofbenefits and to whom?

● What are the ‘with’ and ‘without’project costs and benefits?

● How will expenditure be audited,both financially and technically?

● What is the experience regardingfinancial contributions from theimplementing agency?

■ Collect data to allow a first estimateof a predicted flow of benefits.

■ Allow for the establishment offinancial and technical monitoringprocedures.

■ Assess the financial management anddisbursement capabilities of theagency.

■ Ensure that returns to farmers andother relevant economic entities areadequate to ensure their support.

● What incentives are farmers givento conserve water and maximisethe value derived from its use?

● What practical market and non-market incentives can be used toensure sustainable water use inagriculture?

■ Review use of water pricing/subsidiesto encourage farmers to save water,invest in water saving technologies,and switch to less water-demandingcrops (see Part III).

■ Commission a study of legal andinstitutional obstacles to price/non-price instruments for demandmanagement.

Projects must demonstrate economic benefit and financial viability. Therefore examine:

Where possible, demand management, through both market and non-market measures,should be incorporated into projects. Therefore examine:

Charging for services is needed to generate funds for future investment and promote efficientwater use. Therefore examine:

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● Is the range and significance ofpotential adverse environmentalimpacts and requirements forfurther environmental analysisindicated in the project outline?

● What environmental baseline dataare available and required beforeproject formulation can proceed?

● Do pre-feasibility reports indicatethe accuracy and reliability of datasources?

■ Using the results of Initial Screening,undertake a PreliminaryEnvironmental Assessment (see PartIII) in accordance with ECEnvironment Manual.

■ Include a statement ofenvironmental data availability andrequirements in pre-feasibilitystudies and make adequate provisionfor upgrading data collection.

■ Indicate the source of data and theirestimated accuracy and reliability.

● What changes in land and wateruse are anticipated as aconsequence of the project, bothlocally and in the river basin?

● Is the supply from all sourcessufficiently reliable to meetpredicted present and futuredemands?

● Is soil conservation integrated inthe irrigation development plan?

■ Ensure that predicted land usechanges and changes in waterdemand are compatible with widerriver basin plans.

■ Use Checklist on Irrigation in the ECEnvironment Manual (see Part III) toreview potential impact on humanhealth, water quality and soilfertility.

■ Verify that the prediction of supplyand demand are based on realisticdata.

■ Outline soil conservation plans.

AWUM activities often bring major changes in land and water use. Therefore examine:


Environmental damage may result because insufficient time and money are invested incollection and analysis of baseline data. Therefore examine:

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● What is the level of awareness andeducation concerning waterscarcity and conservation amongstfarmers and other stakeholders?

● What are the current levels ofunderstanding of the concepts ofparticipation and stakeholding?

● Is the implementing agency likelyto ensure that processes aretransparent and that stakeholdershave access to information?

■ Ensure that an appropriate andrealistic educational campaign isdeveloped, using discussion groupsand workshops to disseminateinformation.

■ Gauge agencies’ commitment to andunderstanding of participatorymethods and stakeholding. Feedconclusions into project formulation.

■ Identify training needs forinformation management in thepublic sector and to strengthen therole of NGOs.

Education and awareness-raising, targeted at agency staff and farmers, are needed to developuser participation in decisions over competing user group needs. Therefore examine:

● How satisfactory is the baselinedata on water resources as a basisfor making informed decisions?

● What improvements orenhancements are needed inAWUM data collection?

● What are the impacts of a location-specific project elsewhere in thebasin?

■ Review data collection, analysis,storage and dissemination systems(see WRAP Checklists).

■ Advise on requirements foradditional or improved systemswith due regard for institutionaland financial resources.

■ Examine the overall impacts of thisand other planned projects on thewater resources of the river basin.


The development of a broad knowledge base grounded in effective data collection andmonitoring procedures is essential for both local and basin-level plans. Therefore examine:

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● Are land and water suited to theproposed initiative?

● Is a specific soil conservationprogramme required?

● Have a wide range of technologicaloptions been considered, and costs,drawbacks and benefits analysed?

■ Initiate outline checks of quality andquantity.

■ Identify possible needs for detailedinvestigations including soilconservation programmes.

■ Study existing designs and O&Mstrategies, and build on pastexperience.

■ Check that the intended project scaleis commensurate with human andfinancial resources for O&M.

● Is the scale and developmentframe of the project suited to usersand will it be sustainable?

● How well do potentialbeneficiaries understand irrigationand drainage technology?

● Have water-saving and water-reusetechnologies been considered?

● Do proposed irrigation/drainagetechnologies fit with skills andresources available to farmers andirrigation agencies, includingcredit availability and farminputs?

● Have indigenous technologies beenidentified and evaluated?

■ Ensure that project scale complieswith policy objectives, and thatneeds and objectives of farmers areunderstood.

■ Review existing technical practices,consult farmers and identify gaps inknowledge and skills. Ensure thatfarmers understand and agree withthe objectives.

■ Review resources, consult with otheragencies and select appropriatetechnologies (see Part III). If scarcityis likely to become a problem,reassess project.

■ Identify possible mismatchesbetween technology proposed andproject context, and the scope forusing indigenous techniques (see PartIII).

The objective should be to use modern but appropriate technology. Therefore examine:


Engineering solutions must take account of environment and physical characteristics; needs,resources and skills of users; capital and operating costs and markets. Therefore examine:

8Chapter

Formulation

Programming

Identification

Formulation

Financing

Implementation

Evaluation

The detailed preparation and appraisal of the project

8The purpose of theformulation stage isto define all thecomponents of theproject in sufficientdetail to enable thepreparation of aFinancing Proposal.A major outputduring this stage isthe feasibility study.All the issues criticalto the viability andlong-termsustainability of theproject should beaddressed.

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WATER RESOURCE ASSESSMENT AND PLANNING



WRAP is a continuous process which needs to adapt to external factors, such as changes inpolicy, economic climate and development objectives. Therefore examine:

● Have there been any significantchanges in priorities and objectiveswhich require a reassessment ofthe project?

● To what extent have lessons andexperiences from previous projectsbeen taken into account?

● To what extent has an integratedapproach been adopted?

■ Use the feasibility study to reassessthe relevance and appropriateness ofthe project and, if necessary,reformulate.

■ Ensure lessons from previousassessments and studies are takeninto account.

■ Assess commitment to an integratedapproach and, where necessary,define conditionalities to ensure thata more integrated approach isadopted.

Effective inter-sectoral and inter-agency planning is essential for an integrated approach.Therefore examine:

● What organisational frameworkand mechanisms for inter-sectoralco-ordination at the national,regional and local levels areproposed?

● What measures (e.g. policydecisions or institutional changes)are required to improveintegration?

● What other (external) initiativescomplement the project activities?

■ Review the organisational frameworkand ensure roles and responsibilitiesare clearly defined to avoid conflictand encourage integration.

■ Define conditionalities, requirementsfor institutional change and atimetable for their implementation.

■ Review donor-supported, and otherinitiatives and ensure links areestablished.

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Water-related planning can become ineffective if the outputs and recommendations are notratified and acted upon by the appropriate bodies. Therefore examine:

● What measures are included toensure a continuous and dynamicapproach to the planning process?

● What will be the status ofemerging water-related plans?

● What measures are in place toensure water-related plans will beadhered to?

■ Specify indicators to monitor projectimplementation and beyond.

■ Ensure the status of outputs issufficient to provide a strongframework for implementationactivities.

■ Check that institutional andfinancial resources are allocated inorder to sustain a long-term,dynamic approach to the planningprocess.

Incorporating stakeholders’ needs and views into WRAP helps to foster a sense of ownership.Therefore examine:

● What is the level of co-operationand co-ordination betweenplanning agencies and otherstakeholders?

● To what extent do proceduresensure effective stakeholderparticipation?

● To what extent have stakeholderscontributed to changes since theidentification stage?

● Have all water uses (includinghydropower and navigation) beenconsidered?

■ Review past experiences with co-ordinating and co-operativemechanisms.

■ Include procedures for stakeholderparticipation during formulation andsubsequent implementation.

■ Check that project formulationallocates adequate time and resourcesfor building effective participation.

■ Include awareness-raising measures(see Part III) in project formulation.

Changes in transboundary water management can have a major impact on proposed projects.Therefore consider:

● What changes in transboundarywater management have takenplace since identification?

● What is the likely impact on futureresource availability over, andbeyond, the stipulated planninghorizon?

■ In the light of changes, re-assess theappropriateness of the project andmodify accordingly.

■ In the feasibility study, ensure therisks and uncertainties associatedwith transboundary watermanagement (see Part III) arereflected in the analyses.

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Requirements for capacity-building and training must be addressed during project formulation.Therefore examine:

● To what extent are the proposedimplementing agencies capable ofmanaging the project?

● What provision has been made tostrengthen the capabilities of theimplementing agencies and otherkey stakeholders?

● To what extent is training anintegral part of the project?

■ Establish the current capabilities ofkey agencies and, where necessary,include components to strengthenthem.

■ Assess the practicality of introducinginter-disciplinary units to supportimplementation.

■ Include provision for specialisttechnical assistance to train agencystaff at all appropriate levels.

Management information systems providing indicators of performance are essential forefficient project implementation and monitoring. Therefore examine:

● How will project progress, outputsand benefits be monitored?

● To what extent do existinginformation systems permitadequate monitoring?

■ Establish quantifiable and time-bound indicators for evaluatingimplementation and post-implementation phases.

■ Identify information needs andensure formulation includesintegration of information sourcesand, where necessary, additional datacollection.

■ Allow for adequate long termbudgetary allocations formanagement information systems.

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Social Principles

Water resource planning should be integrated with social development goals. Therefore examine:

● To what extent have other usersand uses of water been considered?

● To what extent will traditionalwater rights be affected?

● To what extent will poorer sectionsof the community benefit?

● To what extent are traditionallivelihoods threatened?

■ Specify indicators for social impactassessment and monitoring.

■ Ensure that potential impacts,including health impacts, areexamined and potential areas forconflict between users identified.

■ Identify minority and disadvantagedgroups via stakeholder analysis andensure that they have access toproject benefits.

■ Explore negative impacts ontraditional livelihoods and proposemitigation.

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Economic analysis of the project should reflect the economic value of water in all its competinguses. Therefore examine:

● To what extent have opportunitycosts of changes in water use beenrealistically assessed?

● What are the risks involved, whatare the consequences, and towhom?

● To what extent have costs ofmitigation measures beenincluded?

● What is the potential forintroducing water markets?

● What is the cost of being unable tomeet future demands, especiallyunder drought conditions?

■ Ensure the opportunity costs ofwater are included in the economicanalysis (see Part III).

■ Make a detailed study of technical,social, institutional and financialrisks; quantify consequences andoutline mitigation measures.

■ Ensure costs reflect and includemeasures to mitigate adverseimpacts.

■ Examine the legal, institutional andcustomary obstacles to the growth ofwater markets, and consider waysthat the project could overcomethese while safeguarding third partyand environmental interests.

■ Assess economic and financialimpacts of unreliable supply,seasonally and during dry years.

Developing a community-based approach is likely to increase ownership and commitment tosustainability. Therefore examine:

● What is the level of beneficiary,and other stakeholders,involvement?

● To what extent are keystakeholders consulted in projectdesign?

■ Check that participatory techniqueshave been used to capture localknowledge, attitudes and practices(KAP, see Part III).

■ Take into account findings fromproject identification and ensureformulation reflects demand-ledinterventions.

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Interventions to bring benefits to one user group or sector can have adverse impacts on wateravailability for user groups downstream. Therefore examine:

● What are the expected impacts ondownstream users?

● To what extent have long-termcumulative effects been addressed?

● To what extent has waste disposalbeen integrated with supply-sideinterventions?

● What account has been taken ofenvironmental flows, includingunder drought conditions?

● To what extent are existing watersources at risk?

■ Ensure that impacts of interventionson water availability and quality forother water users have beenincluded.

■ Confirm environmental flowrequirements and other in-streamuses, and identify measures toprotect ecological functions. Makeadequate allowance for low flow ordrought periods.

■ Ensure the full cycle of water usefrom supply to disposal is includedin project formulation.

■ Ensure that protection measures forexisting water sources, both surfaceand groundwater, are included.

Environmental monitoring is necessary to ensure mitigation measures are effective and toidentify unforeseen impacts. Therefore examine:

● What environmental monitoring isproposed?

● What additional data/informationis required?

● Are the existing standards for thequality of freshwater andwastewater appropriate?

■ Specify monitoring indicators forenvironmental impacts duringproject implementation and beyond.

■ Establish components for additionaldata collection to supportenvironmental analysis andenvironmental monitoring.

■ Review the reasons for the adoptionof prevailing quality andenvironmental standards for waterand wastewater.


Environmentally sound solutions rely on managing and mitigating adverse impacts within anoverall resource management strategy. Therefore examine:

● Has an initial screening andpreliminary environmentalassessment identified significantenvironmental impacts, and whatlevel of Environmental Assessmentis required?

● To what extent are environmentalmitigation and enhancementmeasures specified?

■ Consider support for a specificproject to develop an effectivenatural resource managementstrategy.

■ Undertake either an EnvironmentalAnalysis or a self-standingEnvironmental Impact Assessment(see Part III).

■ Incorporate all opportunities toenhance environmental quality andprotect environmental assets.

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Hydrological and hydrogeological data should be selected in the light of efficiency, ease ofO&M, and capital and operating costs. Therefore examine:

● What are the current dataconstraints and to what extent willdata collection enhance national,regional and local systems?

● To what extent are the proposedtechnologies compatible withexisting methods and techniques?

● To what extent do proposedtechnologies match agencyresources?

■ Assess benefits of additional datacollection and ensure compatibilitywith existing systems.

■ Verify that technologies match thetechnical and financial resourcesavailable within the implementingagencies.

■ Consider funding a project specificto the assessment of resources, eithernationally or for targeted river basinsor aquifers.

Education and awareness-raising are key methods of enabling stakeholders to contributeeffectively to the planning process. Therefore examine:

● To what extent do proposedmeasures raise the awareness ofstakeholders?

■ Include project components forawareness-raising, education andcapacity building as part offormulation.


Effective WRAP relies on good data collection and analysis on all aspects of water-relatedinformation including socio-cultural, economic, and environmental. Therefore examine:

● What are the key weaknesses inwater-related information?

● Which aspects of water-relatedinformation will be strengthened?

● How will information bedisseminated to those that requireit?

■ Ensure key deficiencies have beenidentified and target data collectiontoward these.

■ Establish information networks withdue regard for institutional structuresand financial resources needed tosustain them.

■ Define explicitly the rules and routesof information sharing throughimplementation and beyond.

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BASIC WATER SUPPLY AND SANITATION SERVICES



Changes in policy objectives and economic factors since the identification phase, and recentlessons from previous projects, should be taken into account. Therefore examine:

● Have policies, legislation orinstitutional frameworks affectingthe project context changed sincethe identification phase?

● Have lessons from other BWSSprojects been taken into account?

● Has the unsatisfied demand forclean water and sanitationchanged since identification?

■ Reassess the relevance of the projectin the light of changes in thesituation and make appropriatemodifications.

■ Incorporate any changes inlegislation in the project design.

■ Ensure that lessons from relevantprojects are taken into account.

■ Ensure that both water andsanitation issues receive attention.

Effective inter-sectoral and inter-agency planning should be facilitated by the project. Therefore examine:

● What organisational framework isproposed? Have clear roles andmandates been established for allparties?

● What special conditions, policydecisions or institutional changesare required for the project tosucceed?

● Have other programmes beeninitiated that may influence theproject?

■ Ensure that the roles, responsibilitiesand tasks of all involved are fullydefined.

■ Define conditionalities andrequirements for institutional changeand set a timetable for theirimplementation.

■ Ensure that there is homogeneitybetween this project and other BWSSprojects, planned or underway.

Effective stakeholder participation requires that their views and needs help to shape the designof the project. Therefore examine:

● Are the government agenciesresponsible for projectimplementation viewed positivelyby the stakeholders?

● Do the stakeholders fullyunderstand their rights andobligations?

● Does the project structure includespecific procedures to ensurestakeholder participation inproject planning and design?

■ Ensure that a participatory approachto BWSS planning is implementedand adequate resources allocated.

■ Ensure that stakeholders receiveinformation about their rights andobligations on an ongoing basis.Inform them of any changes sinceidentification

■ Offer management skills training tofacilitate information exchange anddevolution of power.

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Sustainability of BWSS requires that responsibility for a significant share of management andO&M be devolved to users, within a suitable organisational structure. Therefore examine:

● What types of local entity,government and NGO, operate inthe project area? What roles canthey play in O&M?

● Are the organisational structuresand legal status of local NGOs andcommunity organisations well-defined? Does national policy andlegislation facilitate theirinvolvement?

● Are the relative obligations ofservice providers, and those ofcommunity organisations/usergroups, well-defined?

● Do community organisations/usergroups have adequate skills andresources to plan, fund andimplement system maintenance?

● What is the degree of participationby women in local organisations?

■ Identify local structures (official,private sector, and NGO, includingcommunity organisations) that havethe skills and motivation to assist indeveloping a service managementsystem.

■ Develop a strategy to devolve servicemanagement and O&M to usergroups, with the assistance of localorganisations and NGOs; ensureparticipation by women.

■ Ensure that relevant legislation existsto permit management andfinancing of services by non-governmental entities; allow for thisto be formulated if necessary.

■ Ensure that financial and humanresources are available to sustainO&M services and provide technicaland managerial training, especiallyto local bodies and user groups.

Requirements for training and capacity-building, identified in the pre-feasibility study, must beaddressed in project formulation. Therefore examine:

● Are the implementing agenciescapable of managing the project interms of staffing, expertise, andinstitutional structures?

● Does the project include trainingfor agency staff and all thoseadministratively responsible atdifferent levels for systemmanagement, including users?

● Do training plans include gendersensitivity, and incorporatetraining for women?

■ Reduce the scope or scale of theproject to match the availability ofstaff.

■ Include conditions to ensure thatqualified personnel fill nominatedpositions.

■ Include adequate staff training,training for NGOs, communityorganisations and user groups,including training for womenmanagers and maintenance staff.

■ Include provision of specialisttechnical assistance to train agencystaff and local officials at appropriatelevels.

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Management information systems in which both users and service providers have confidenceare essential for operational efficiency. Therefore examine:

● What human or financial resourcesfor data collection and analysiswill be available once donorsupport ceases?

● What systems have beenestablished to monitor social,economic and environmentalimpacts?

● Is it clear how the quality ofservice delivered to users will bemonitored and reported?

■ Review information systemsproposed during identification.

■ Establish social, economic andenvironmental performanceindicators for project monitoring andevaluation.

■ Specify indicators for impactassessment and define datarequirements for their measurement;take account of human and financialrequirements for long-termmonitoring.

■ Recommend standard sets of readilyunderstood core indicators; enablecollection of gender-disaggregateddata where possible.

Social Principles

Development of BWSS projects may disrupt traditional user rights to water and land. Thereforeexamine:

● Are traditional water and land userights likely to affect projectviability?

● Will the project encourage newsettlement of people and animalsaround water points?

● Will traditional water sellers orother workers lose theirlivelihood?

■ Ensure that traditional rights aretaken into account and if they affectproject viability redesign the project.

■ Quantify the likely environmentalpressures of settlement around waterpoints and consider the effectivenessof existing laws to controlsettlement.

■ Initiate consultation with thoseadversely affected and investigatewhether compensation should bepaid.

■ Ensure separation of human andlivestock water points

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Development of BWSS services can require significant changes in social and cultural norms andhabits, especially with regard to sanitation. Therefore examine:

● Have social customs and attitudesto water storage and protection,and existing methods of humanwaste disposal, been explored?

● Will the introduction ofalternative methods, such as pitlatrines, require significantchanges in social habits?

● Will greater accessibility to wateraffect water collection, storage andusage habits?

■ Review the results of social studiescarried out during identification orby other BWSS projects.

■ Consider a KAP study to documentcultural norms, attitudes andbehaviours concerning water andsanitation (see Part III).

■ Make sure that the results of socialstudies, particularly regardingsanitation, are fully incorporatedinto the project design.

■ Make sure water quality and healthissues are included in social studies.

Improved BWSS schemes can also lead to increased inequalities between different socialgroups. Therefore examine:

● Are the expected social, economicand environmental impacts on allstakeholders adequatelyquantified?

● Will poorer communities orminority groups derive equalbenefits from the project ascompared with wealthier groups?

● How will those whose traditionaloccupations depend on water orwaste disposal be affected?

● What is the likelihood of anincrease in small enterprisesleading to an increase in demand?

■ Discuss alternative strategies withstakeholders and ensure the projectis formulated to target theunderserved as a priority.

■ Identify minority groups influencedby the project and verify that theywill have access to services andparticipation in their management.

■ Ensure that traditional water sellersand waste disposal workers areincluded as stakeholders; examinethe likely impact of the project ontheir livelihoods.

■ Include an estimate of the increase inwater-using small enterprises incalculating likely demand forservices.

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A community-based approach is more likely to ensure ownership and sustainability of servicesby the users. Therefore examine:

● Does the project build on existingcommunity structures and includedisadvantaged groups?

● Do existing communityorganisations and structurespertinent to BWSS represent allinterest groups or are someexcluded, notably women andminority groups?

● Does the project offer opportunityfor local employment inconstruction, manufacture (forexample, of sanitation equipment),and operation and management ofservices, including for women?

● Will there be sufficient long-termbenefits to sustain new roles andresponsibilities?

■ Identify existing communitystructures and ensure that newstructures complement these.

■ Use participatory techniques tocapture local knowledge, culturalvalues and indigenous technicalknowledge.

■ Check that designated community‘representatives’ represent all groupsincluding women.

■ Provide scope for participation bylocal suppliers, contractors andmanufacturers in the project.

■ Include sufficient flexibility in theproject structure to permitmodification duringimplementation.

■ Ensure that interventions do notundermine the potential role of theprivate sector.

Given the centrality of water to women’s daily lives, measures are required to ensure theeffective participation of women in project planning and design. Therefore examine:

● Does the project demonstrate thatthe role of women in watercollection and household use hasbeen sufficiently respected duringformulation?

● Will services be planned andmanaged so that benefits will beequitable between women andmen?

● Have cultural attitudes andpractices, including those relatingto women’s and men’s roles vis avis water and waste disposal andprivacy, been acknowledged?

■ Ensure that staff with training ingender analysis (see Part III) and atrack record for gender sensitivityparticipate in project formulation.

■ Where gender sensitivity is a newconcept, allow for awareness-raising;consider setting a requirement for aproportion of women on stakeholderand management committees.

■ Ensure that participatory exercisesaddress issues specific to women andchildren including cultural attitudestowards women as providers of ‘free’water.

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The economic value of water must be reflected in BWSS schemes. Therefore examine:

● What are the economic incentivesfor stakeholders?

● What is the economic viability ofthe proposed intervention?

● Has the opportunity cost of waterbeen given sufficient weight,especially with regard to genderissues?

● What economic indicators will beapplied to monitor the impact ofthe project on the users and thewider economy?

■ Carry out an economic analysis inthe feasibility study (see Part III) eventhough economic benefits may notbe a criterion for supporting theproject.

■ Confirm the calculation of benefitsfrom the identification phase andrecommend changes to projectdesign if appropriate.

■ Ensure that current values of waterare fed into the formulation process.

■ Specify indicators for economicimpact assessment and define datarequirements for these indicators tobe measured, taking account of long-term financial and resourcerequirements for monitoring.

Charging for services is needed to generate funds for future investment and promote the ideaof water as a valuable commodity. Therefore examine:

● Has the concept of water as aneconomic rather than ‘free’resource been addressed?

● Is there a traditional market forwater, including purchase fromvendors, and if so what are thecharges?

● Can pricing incentives be used toencourage users to manage watersupplies more efficiently?

● What mechanisms are in place toensure financial sustainability afterthe project?

● Is there an adequate system inplace for collecting and holdingcommunity funds?

■ Explain the concept of water as aneconomic resource and show thatproposed charges are necessary forsustainability.

■ If willingness-to-pay studies wereundertaken during the identificationphase, incorporate the outcomes insetting charges.

■ Assess whether the type and size ofequipment/infrastructure isappropriate and ensure that theproject is realistic in its assumptionsregarding cost recovery.

■ Take into account existing systemsfor financial management and checkthe acceptability and reliability ofthose entrusted with financialmanagement.

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A balanced approach between supply augmentation and demand management is required.Therefore examine:

● What choices are available on thesupply side to improve coverage tothose unserved by water supplies?

● Is it legal and feasible for users totrade water between themselvesand sell it to other sectors?

● Have traditional water sellers andwaste collectors been adequatelyconsulted?

■ Give priority to interventions thatimprove supplies to thoseunderserved and investigate optionsfor augmenting supplies.

■ Assess the wider benefits ofimproving coverage in terms of likelyhealth benefits.

■ For areas with good coverageinvestigate options or demandmanagement to improve efficiency.

Projects must demonstrate financial viability. Therefore examine:

● Is the project financially viable inthe longer term?

● How do predicted project costscompare with similar projects?

● Is there an adequate analysis of therisks and assumptions involved inthe project?

■ Include a financial analysis (see PartIII) in the feasibility study todetermine long-term sustainability.

■ Where there are significantvariations in costs between projects,verify predictions and investigatealternative approaches.

■ Identify the technical and financialrisks associated with the project andoutline appropriate mitigatingmeasures in the feasibility study.

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Projects in BWSS often bring changes in land and water use. Therefore examine:

● What are the expected impacts ondownstream water quality andquantity?

● Will increased groundwaterabstraction lead to aquiferdepletion and exacerbate seasonalvariations in water supply?

● What are the expected impacts onhuman health and settlement?

● Have possible health risks fromincreased areas of standing waterbeen evaluated?

● Have the danger of landdegradation and health risks fromtreatment and disposal methodsbeen evaluated?

■ Undertake EnvironmentalAssessment if appropriate, inaccordance with EC EnvironmentManual (see Part III).

■ Set up systems for monitoringdownstream quality and quantity.

■ Include prediction of future rates ofabstraction and confirm long-termsustainability of supply.

■ Confirm that any likely risks tohuman health have been adequatelyevaluated.

■ Confirm long-term sustainability ofthe results of increased settlement ofpeople and animals around supplypoints.

Accurate baseline data collection and informed analysis are the keys to minimisingenvironmental damage. Therefore examine:

● Did the identification phaseindicate adequate, unbiasedenvironmental assessment andmonitoring procedures?

● Have appropriate indicators ofenvironmental impact beenspecified?

● Have appropriate health indicatorsbeen specified?

■ Specify indicators for monitoringenvironmental impact duringimplementation and subsequentoperation.

■ Verify that accessible healthindicators exist and collection andanalysis is sustainable.

■ Include training for staff inenvironmental assessment andmonitoring.

■ Consider the strengthening ofstakeholder input to data collectionusing participatory methods.

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New sanitation schemes may cause disposal problems. Therefore examine:

● Are adequate treatment anddisposal measures included in theproject design?

● Has the allocation of land fortreatment works and disposal beenaddressed?

● Are there significant downstreampollution risks from treatmenteffluent?

● What use will be made of theslurry?

■ Ensure that disposal is adequatelyplanned for in terms of land use,plant, cost and management, andthat measures are included to protectnearby water points.

■ Confirm that any likely risks tohuman and animal health have beenaccurately evaluated.

■ Confirm that the concepts oftreatment and disposal of wastewater and slurry are understood andaccounted for.


An adequate knowledge base is a pre-condition for development of BWSS programmes. Thisrequires effective data collection and monitoring procedures. Therefore examine:

● What gaps exist in the informationneeded for effective planning andsubsequent monitoring?

● Are there risks derived fromuncertainty of data?

● To what extent is lack ofknowledge a constraint toinformed decision-making?

■ Specify detailed information needsand data collection methods withattention to water quality as well asquantity.

■ Confirm that monitoring indicatorsare appropriate and resourcesavailable to collect the necessarydata.

■ Review current data and ensureimplications of risk are reflected inthe analysis.

Education and awareness raising targeted at BWSS agency staff and users is needed to ensurean understanding of principles and participatory approaches. Therefore examine:

● Has the concept of participationand stakeholding been sufficientlyestablished?

● Are essential concepts such asclean water/grey water/dirty waterand bacterial contaminationunderstood?

● Have linkages with health andeducation agencies been effectivelyestablished?

● Do community organisations/usergroups understand technicalities ofBWSS design?

■ Allow for workshops or shorttraining sessions to raise awarenessabout management, participationand stakeholder involvement.

■ Ensure balanced representation atworkshops across different groupsand between sexes.

■ Consider links with health andeducation authorities to deliveressential water and sanitation healthmessages.

■ Include training to ensure the useand maintenance of appropriatetechnology.

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Appropriate specification and design of hardware for BWSS depends on complete and reliableinformation. Therefore examine:

● What confidence can be placed inthe quantification of supply anddemand? Are estimates oflitres/day/person reasonable andcommensurate with resources?

● Is likely water demand compatiblewith present and predicteddemands from other sectors?

● Are allowances for systeminefficiencies and managementlosses realistic?

■ Examine the methods used todetermine supply and demand, andif necessary recommend additionaldata collection.

■ Confirm that the predicted waterdemand can be met without conflictwith other sectors and withoutunacceptable costs.

■ Compare the design efficiencies withthose seen in other similar schemes.

The design of hardware and specification of operating rules must minimise detrimental impacts on the environment. Therefore examine:

● Will proposed technologiesminimise the impacts of theproject on water supply, landdegradation, and human andanimal health?

● Is the design, funding and phasingof water supply and sanitationworks adequate to prevent long-term degradation of areassurrounding installations?

■ Ensure an Environmental ImpactAssessment (see Part III) has beenundertaken and results incorporated.

■ Ensure the feasibility study addressesthe risks of degradation around watersites and sets out appropriateameliorative measures.

■ Apply environmental sanitationprinciples (see Part III) to projectdesign.

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Engineering solutions should take account of the material and technical resource base available to operating agencies and users. Therefore examine:

● What indigenous or moderntechnologies can be included inthe project?

● Is local manufacture of equipmentpracticable?

● What is the condition of existingwater supply and sanitationstructures?

● Do the proposed technologiesrequire the acquisition of newskills by agency staff and users?

● Are the proposed technologiescompatible with others already inuse in the country and feasible foruse at village level?

● Have women been adequatelyconsulted with regard to proposedtechnologies?

■ Based on studies carried out duringidentification, select a balance ofappropriate local and importedtechnology.

■ Determine the scope for localmanufacture of equipment.

■ Identify the source and cost ofreplacement components and needsfor skills, workshop facilities andequipment.

■ If the existing infrastructure andequipment is in poor condition,identify the causes and address them.

■ Include technical training to trainusers/ agency staff to maintainequipment.

■ Ensure that technologies proposedare gender-sensitive.

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MUNICIPAL WATER AND WASTEWATER SERVICES



Changes in policy objectives and economic factors may influence predicted project benefits.Lessons from previous projects in MWWS should be taken into account. Therefore examine:

Effective inter-agency and inter-sectoral planning should be facilitated by the project. Therefore examine:

Effective stakeholder participation needs to be implemented with the views and needs ofstakeholders shaping the form of the project. Therefore examine:

● How has the project contextchanged since the identificationphase?

● Have lessons and experiences fromother projects been taken intoaccount?

● What special conditions arerequired to support the project?

● What institutional reform andlegislative change is needed toensure project success?

■ Redesign the project so that it isconsistent with changed water policyor other factors, or abandon it.

■ Ensure that lessons from past andongoing projects in the region areconsidered.

■ In the feasibility study, specify atimetable for implementingconditions.

■ Institutional changes should formpart of the project or be included as acondition.

● Have all municipal institutionslikely to be associated beenidentified?

● Have clear roles and mandatesbeen established for all involvedparties?

● What mechanisms are in place forinter-agency co-operation?

● What decision-makingmechanisms for urban planningand water issues exist within themunicipal board or council?

■ Define the roles and responsibilitiesof all involved parties, and allocatetheir tasks.

■ Identify institutional deficienciesand address them throughrestructuring.

■ Ensure that water and sanitation areincluded in overall urban planningand if co-operation between differentservices is inadequate, recommendimprovements.

● Are the government and/ormunicipal agencies involved inproject implementation viewedpositively by the target group?

● What scope is there forinvolvement by local NGOs andcommunity groups in managingand maintaining MWWS?

■ Ensure the project aims to buildrelationships between localcommunities and relevantgovernment institutions.

■ Review identified stakeholders andensure all relevant groups areincluded.

■ Identify specific areas for communitygroup involvement and discuss withmunicipality.

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Projects should aim for effective public-private sector partnership in service delivery. Therefore examine:

Requirements for training and capacity-building must be addressed in the project formulation phase. Therefore examine:

● What is the relationship betweenthe public and private sectors forMWWS?

● Does the project design encourageand facilitate participation bylocal private commercialcompanies?

● What is the capacity of the privatesector to take on some of theresponsibility for managingservices, and what are the mostappropriate partnership models?

● Do existing municipal structuresenable private sector involvementin O&M?

● Are there mechanisms forprotecting the consumer?

■ Ensure that the project design andcontract arrangements accommodatelocal private sector participation (seePart III).

■ Develop programmes for hand-overor sub-contracting, using criteria ofefficiency, acceptability, cost savings,etc.

■ For peri-urban areas, determine howinformal systems can come withinthe purview of municipal authorities.

■ Strengthen or introduce a regulatorymechanism to protect consumersand include institutional studies todesign a suitable structure.

● How able are the designatedagencies to manage the project?

● Have the human resources needs ofkey institutions been addressedand do the key staff have therelevant skills?

● How able are local/communitygroups to undertake some of thetasks required for managingMWWS?

● What is the scope and cost of thetechnical assistance required?

■ Include targeted institutionalstrengthening in the project.

■ Undertake a full assessment ofhuman resources during projectformulation; ensure that the project’sscope is commensurate withavailable skills and terms andconditions are adequate for staffmotivation.

■ Detail the training requirements ofthe municipality in the feasibilitystudy.

■ Clarify the terms of reference forlocal and/or external technicalassistance and costs and includethem in the overall project budget.

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Management information systems in which both users and service providers have confidenceare essential for operational efficiency. Therefore examine:

Social Principles

MWWS projects must conform with social development goals. Therefore examine:

Full involvement by stakeholders and users is more likely to ensure project success. Therefore examine:

● Is it clear how the quality ofservice delivered to users will bemonitored and reported?

● What systems have beenestablished to monitor the social,economic and environmentalimpacts of the project?

■ Check that suitable performanceindicators for the evaluation ofproject performance duringimplementation and subsequentoperation have been clearly defined.

■ Make sure that the managementinformation system is transparentand accountable in order to promoteuser/provider confidence.

■ Allow for the establishment of amonitoring and evaluation system.

● How many people will the projectaffect?

● How will the project take accountof local knowledge, cultural valuesand indigenous practices?

● How will the project take intoaccount the effects of MWWS onhealth?

■ Ensure that the feasibility studymaximises the range of beneficiaries.

■ Use participatory methods to assesslocal knowledge, attitudes andpractices (KAP) and ensure account istaken of the results.

■ Incorporate baseline studies andinitial health screening programmes.

■ Specify indicators of social impactand means for their monitoring andanalysis.

● What are the opportunities forincreased employment?

● How will the project build onexisting local structures?

● How will the project serve thepoorer communities? Does theproject address conditions inslums?

● How will ethnic or minoritygroups be actively involved in theprocess?

■ Include specific actions to ensure fullparticipation by the localcommunity to express local needs, indiscussion groups, councils, etc.

■ Determine existing communitystructures and examine whetherconflict is likely to arise from anyproposed structures.

■ Include assistance for participationof ethnic minorities or otherdisadvantaged groups.

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Effective provision of MWSS should take account of the needs and roles of women. Therefore examine:


The economic value of water must be recognised as an integral part of any municipal waterand wastewater project. Therefore examine:

Charging for services is needed to generate funds for maintenance, management, futureinvestment and service spread. Therefore examine:

● How will gender issues be dealtwith? Do institutions have thecapacity to address and identifygender issues (see Part III)?

● Are the benefits of the MWWSproject likely to be equitable tomen and women?

■ Include specific assistance/conditionsto promote women’s participation.

■ Employ experts with provenexpertise in gender analysis andinclude gender issues in training foragency staff.

■ Consult with both men and womenconsumers to establish their differingneeds, roles, opinions andexperiences and incorporate theminto the project design.

● What are the current and potentialeconomic returns related to theproject?

● Have all the project benefits beenfully assessed?

● Have all the project costs beenestimated?

■ Ensure that all assumptions madeabout markets, patterns of demand,costs and benefits are fullyexplained.

■ Determine in detail the economiccosts and benefits, and carry out afull economic analysis based on theEC Manual (see Part III).

● What mechanisms are in place toensure financial sustainability aftersupport ends?

● Does the implementing agencyhave experience in absorbing theamount of funds needed toimplement the project?

● What regulatory mechanism isproposed?

■ Set the project scope at a level thatappears sustainable and consistentwith the agency’s past performancein handling funds.

■ Ensure that the regulatorymechanism has powers to monitorcharges levied by private sectoroperators.

■ Determine ability to pay for variousgroups, including industry andcommercial operators, and establisha stepped tariff structure; introduce‘polluter pays’ principle (see Part III).

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Demand management, through both market and non-market measures, should beincorporated into projects. Therefore examine:

Projects must assess financial risks and demonstrate accountability. Therefore examine:


Environmental damage may result because insufficient time and money is invested in collectionand analysis of baseline data. Therefore examine:.

● Has demand for MWWS changedsince the identification phase?

● How do the project’s costs comparewith those of similar projects?

● Are there any incentives in place toencourage more efficient wateruse?

● Are industrial and commercialusers being charged adequately forwater services?

■ Critically examine methodologiesused for assessing demand variations.

■ If costs are significantly differentfrom similar projects, clarify thereasons and, if necessary, investigatealternative solutions.

■ Include financial and otherincentives to encourage efficientwater resources use and managementin the project design.

● What system will be established toaudit financial information?

● What is the past experience ofsimilar projects with regard toaccountability?

● What are the risks involved inundertaking the project?

● What confidence can be placed onthe demand estimates formunicipal water supply andwastewater services?

■ Assist in the establishment of anappropriate auditing system andprovide capacity building.

■ Incorporate lessons from otherprojects in the region.

■ Carry out a financial analysis (basedon EC Manual) to ensure that theenterprise is financially sound.

■ Determine technical and financialrisks, quantify the consequence ofeach and outline appropriatemitigation measures and costs.

● Are the likely environmentalimpacts of the project, andmeasures to mitigate adverseimpacts, defined?

● Is sufficient environmentalbaseline information available toallow proper environmentalmonitoring?

● How does the project incorporateenvironmental health issues andenvironmental monitoring?

■ Conduct an EnvironmentalAssessment either within thefeasibility study or as a self-standingEnvironmental Impact Assessment(see Part III).

■ Incorporate baseline environmentalstudies and initial health screeningprogrammes.

■ Establish appropriate environmentalmonitoring indicators andmonitoring structures and systems.

■ Make resources available to ensuresustainability of monitoring.

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MWWS projects often bring changes in water use. Therefore examine:

Municipal wastewater schemes present disposal problems. Therefore examine:

● What are the potential impacts onwater quality and quantitydownstream?

● What are the potential impacts onhabitats downstream?

● What scope is there forenvironmental enhancement?

■ Evaluate the potential impacts onwater quality (see Part III) and waterquantity downstream and theconsequences for users and theecosystem.

■ Incorporate appropriate mitigatingmeasures or alternative solutionsinto the project.

■ Assess the economic and financialimplications of environmentalmeasures and include in theeconomic analysis (see Part III).

■ Opportunities for enhancement tothe environment should beincorporated into the project design.

● What will be the effect ofwastewater discharges on theenvironment?

● Will sanitation/wastewatertreatment facilities be located closeto human settlement?

● Has the allocation of land fortreatment plant and disposal beenadequately addressed?

● What use will be made of pipesludge and treatment plant sludge?

● Are there significant downstreampollution risks from treatmenteffluent?

■ Redesign the project to avoidimpacts on the aquatic eco-system,fisheries and coastal/marine ecology.

■ Ensure that disposal is adequatelyplanned in terms of land use,equipment, costs and management.

■ Locate a site for sanitation treatmentfacilities away from humansettlement in consultation withstakeholders.

■ Consider whether commercial usecould be made of processed sludgefor manure and wastewater forirrigation.

■ Confirm that risks to human andanimal health have been accuratelyevaluated.

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The development of a water and wastewater knowledge base is a pre-condition for successfulproject implementation and service delivery. Therefore examine:

Education and awareness raising among municipal staff and other stakeholders on MWWSprinciples is needed to facilitate participation and exchange. Therefore examine:


Appropriate modern technology must be utilised to suit local physical, economic, social, andenvironmental conditions. Therefore examine:

● What data collection systems arein place?

● What baseline data is needed tofacilitate mid-term reviews or postevaluation of projectinterventions?

■ If necessary, put in place additionaldata-gathering and storage processes.

■ Identify monitoring and operationalindicators that can be used to assessinputs, outputs and impacts.

■ Establish urban pollutionmanagement procedures to measureimpacts on watercourses.

● Are the stakeholders aware ofMWWS principles and how willthe project enhanceunderstanding?

● What mechanisms are in place forcommunication between theconsumers, service providers andother stakeholders?

● What consultative mechanismswill be in place once the project isoperational?

■ Gauge support for new processes andgenerate an appropriate climate forservice continuation.

■ Strengthen or establishcommunication channels betweenstakeholders; include the use of massmedia, radio and television.

■ Set up a suitable consultativecommittee between the municipal orprivate sector entity and theusers/stakeholders.

● What is the capacity of themunicipal authority/ enterprise touse and maintain the proposedtechnologies?

● Are the proposed technologiescompatible with the technologyalready used in the country? Canthe level be maintained?

● What mechanisms are in place toensure MWWS maintenance?

■ Consider alternative projecttechnologies (models, tools andmethodologies) and gauge their cost-effectiveness.

■ Determine accessibility toappropriate equipment and spareparts.

■ Select the sophistication of thetechnology so it can be operated,and maintained by the staff of theresponsible organisation.

■ Include provision of adequatetraining in new technologies in theproject design.

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AGRICULTURAL WATER USE AND MANAGEMENT



Changes in policy objectives and economic factors may influence predicted project benefits;lessons from other AWUM projects should be taken into account. Therefore examine:

● How has the policy and economiccontext changed sinceidentification?

● Have lessons and experiences frompast and on-going projects beentaken into account?

■ Reassess the relevance andappropriateness of the project. Ifnecessary, modify or abandon theproject.

■ Ensure that lessons from past andon-going projects in the region aretaken into account.

■ Assess how policies on imports willaffect local production

Effective inter-sectoral and inter-agency planning should be facilitated by the project. Therefore examine:

● What organisational framework isproposed and have clear roles andmandates been established for allthe parties involved?

● What special conditions, policydecisions or institutional changesare required for the project tosucceed?

● Does any aspect of the projectconflict with local legislation orinternational agreements?

■ Ensure that the roles, responsibilitiesand tasks of all involved parties aredefined.

■ Define conditionalities, requirementsfor institutional change and atimetable for their implementation;define ways of monitoringcompliance.

■ Revise the project to comply withlegal requirements, or considerformulating an alternativeintervention.

Ensure that commitment to stakeholder participation is effectively implemented so that theviews and needs of stakeholders help shape the project. Therefore examine:

● Are the government agenciesinvolved in the intervention viewedpositively by other stakeholders?

● Do the stakeholders fullyunderstand their rights andobligations?

● Does the project structure andtimetable allow for effectivestakeholder participation inplanning and design?

● If significant changes have occurredin project plans, have thestakeholders been party to thesechanges?

■ Ensure that adequate resources areallocated to communication betweenthe stakeholders and implementingagencies.

■ Identify the need for conflictresolution procedures and ensurethey are established or strengthened.

■ Include information disseminationmechanisms such as workshops,public meetings, use of media andnewsletters, to present informationto stakeholders.

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The sustainability of systems requires that users shoulder significant responsibility for O&Mand management of systems, within a suitable organisational structure. Therefore examine:

● Is it feasible to transfer servicemanagement directly tofarmers/Water User Associations(see Part III)?

● Is it clear to users who isresponsible for water allocationand system control?

● Are the obligations of theirrigation and drainage serviceproviders established?

● Do the proposed user groups haveskills and access to adequateresources to plan, fund andimplement system maintenance?

● Is the private sector capable oftaking on some responsibility forservice and delivery?

■ Identify the feasibility andpracticalities of turning over systemmanagement to legally constitutedcompanies or Water UserAssociations, and the mechanismsthrough which transfer will takeplace.

■ Include in the project designpreparation of O&M manuals thatdefine obligations, tasks, frequencyand resource requirements.

■ Specify resources needed to prepareO&M manuals in local languagesand their pre-testing.

■ Ensure adequate financial andhuman resources are made availableto sustain group development.

■ Ensure that the project promotesprivate sector involvement (see PartIII).

Requirements for training and capacity building, identified in the pre-feasibility study, must be addressed in project formulation. Therefore examine:

● Are the staff, expertise andstructures of implementingagencies appropriate for managingthe intervention?

● Has there been a significantimprovement in the knowledgebase of the agency staff since theidentification phase?

● Are local staff available to fillposts?

● Are training programmes foragency staff and beneficiariesincluded?

■ Include specialist technical assistanceto train agency staff at all levels, andusers, and mechanisms forevaluating training activities.

■ If necessary, reduce the scope or scaleof the project to match humanresource capabilities.

■ Ensure that staff of theimplementing agencies are fullyinvolved in the feasibility studies.

■ Include conditions to ensure thatqualified personnel fill nominatedpositions including adequatebudgetary allocations to recruit andretain skilled staff.

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Management information systems in which users and service providers have confidence are essential. Therefore examine:

● Is it clear how the quality ofservice delivered to users will bemonitored and deficienciesreported?

● What systems have beenestablished to monitor the socialimpact of the intervention?

■ Establish performance indicators thatwill be used during implementationand subsequent operation.

■ Specify indicators for impactassessment and define the datarequirements for these indicators tobe measured, taking account of long-term financial and resourcerequirements.

Social Principles

Development of irrigation, drainage and flood control works may disrupt traditional user rights to land and water resources. Therefore examine:

● Are traditional water rights andland-use patterns documented andtaken into account?

● Will the intervention requireresettlement of people or livestockor the reallocation of land?

● Is the intervention likely to resultin a significant unregulatedmigration of people?

■ Establish whether traditional landand water rights clash with theproject. If so, consider changes tomake the intervention acceptable tostakeholders.

■ Use Social Impact Assessment (seePart III) to identify people affected byland use changes and agreecompensation.

■ Identify measures to controlunregulated migration and allow forservice usage by a realistic number of‘unofficial users’.

■ Ensure that provision of water forirrigation will not cause conflict withpastoralists.

The provision of irrigation can lead to increased inequalities between different social groups. Therefore examine:

● Are expected impacts onstakeholders adequatelyquantified?

● Will poorer communities deriveequal or greater benefits from theintervention as compared towealthier groups in the projectzone?

● Have measures been taken toensure minority groups canparticipate fully in the use andmanagement of facilities?

■ Review the results of StakeholderAnalysis. If potential inequalities aregreat and compensatory measuresinadequate, re-formulate theintervention.

■ Ensure that the feasibility studyincludes a Social Impact Assessment(see Part III), to identifycompensatory measures fordisadvantaged stakeholders.

■ Ensure that minority groups areidentified and have access to projectresources.

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A community-based approach is more likely to ensure ownership of the intervention by theintended beneficiaries. Therefore examine:

● Are the intended beneficiariessupportive of the proposedactivity?

● Does the intervention build onexisting community structures?

● Does the intervention offermaximum opportunity for localemployment in construction andoperation?

● Are scheme beneficiaries trained totake responsibility for operation,maintenance and cost recovery?

● Are there sufficient long-termbenefits to sustain new roles andresponsibilities?

■ Ensure the intervention is designedin collaboration with allstakeholders.

■ Identify existing communitystructures and ensure that newstructures complement them.

■ Ensure that participatory techniquesare used to capture local knowledge,cultural values and indigenouspractices. Provide scope for localcontractor participation.

■ Include human and financialresources for training needsassessment of beneficiaries.

■ Ensure that the design includes amix of long and short-term benefits.

In many regions, women are responsible for certain production decisions and contributesignificantly to field labour. Therefore examine:

● Have women’s agricultural needs,which may be different from thoseof men, been understood andtaken into account?

● Are the benefits of irrigation likelyto be equitable between men andwomen?

■ Use staff with training in genderanalysis and a track record in gendersensitivity in project formulation.

■ Demonstrate that, where available,gender-disaggregated statistics havebeen used in project design.

■ Consider setting a requirement for aproportion of women to be onstakeholder and managementcommittees.


The economic value of water must be reflected in activities relating to AWUM. Therefore examine:

● Are subsidies for water andirrigation services encouraging thewasteful use of water for low-valuepurposes?

● Can subsidies and/or pricingincentives be used to encouragefarmers to manage water moreefficiently?

■ Review the desirability of subsidiesand establish a timetable for phasingout those which are counter-productive.

■ Identify whether financial incentivescan be used to encourage the uptakeof more water-efficient irrigationpractices.

■ Review the desirability of offeringprice incentives (including subsidies)on equipment to improve water useefficiency.

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Charging for services is needed to generate funds for future investment and promote waterallocation to higher-value uses. Therefore examine:

● What mechanisms are in place toensure financial sustainabilityonce the project is implemented?

● Have actions been taken tochallenge the concept of water as afree resource?

■ Ensure that water charges areconsistent with the outcome ofwillingness-to-pay studies (see PartIII).

■ Compare the intervention withothers and ensure that it is realisticin its assumptions regarding incomesand cost recovery.

■ Include educational programmes toexplain and justify the need forwater charges.

Where possible, demand management, through both market and non-market measures,should be incorporated into projects. Therefore examine:

● Is it legal and practically feasiblefor farmers to trade and sell water?

● Is it appropriate to introducelicensing systems to regulate waterabstraction and drain discharges?

■ Ensure that legislation promotes therequired environment for watertrading.

■ Evaluate the potential forintroducing licensing to control ratesof abstraction and drainage flows,taking account of the resourcesrequired for enforcement.

Interventions must demonstrate economic benefit and financial viability. Therefore examine:

● What are the predicted economicbenefits of the intervention?

● How do predicted project costscompare with similar projects?

● Is there an adequate analysis of therisks involved in undertaking theintervention?

● What economic indicators will beapplied to monitor the impact ofthe intervention on directbeneficiaries, the local andnational economy?

■ Confirm the calculation of benefitsand recommend changes to projectformulation if appropriate.

■ Ensure that economic analysis (seePart III) states the assumptionsregarding future product prices,patterns of demand andopportunity costs.

■ Where there are significantvariations in costs betweenalternative interventions, ensurethorough review of cost predictionsand investigate alternativeapproaches.

■ Specify indicators for economicimpact assessment and the datarequirements for these indicators.

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Financial viability is critical to successful irrigated agriculture for both farmers and serviceproviders. Therefore examine:

● Is the financial viability of theintervention too heavilydependent on a single factor?

● Where assumptions are maderegarding cost recovery, are theserealistic?

● Is there adequate physical andsocial infrastructure in place forcost recovery to be implemented?

● Do assumptions used in farmbudget calculations remain valid?

■ Identify the technical and financialrisks associated with the interventionand outline appropriate mitigatingmeasures.

■ Identify the repayment capacity ofusers and use to design cost recoverymechanisms.

■ Examine the cost recovery record ofother similar interventions.

■ Review past farm budget calculationsand update in accordance withavailable data.


Environmental damage may result because insufficient time and money are invested incollection and analysis of baseline data. Therefore examine:

● Does the intervention incorporateadequate environmentalmonitoring?

● Have appropriate indicators ofenvironmental impact beenspecified?

● Are existing environmental datacollection and monitoringprocedures adequate to meetrequirements?

■ Specify indicators that will be used tomonitor environmental impactsduring project implementation andsubsequent operation.

■ Identify the data and data-collectionstructures required for long-termmonitoring.

AWUM activities often bring major changes in land and water use. Therefore examine:

● What are the expected impacts ondownstream water quality andquantity?

● Have the dangers of land and soildegradation been evaluated andminimised?

● What are the expected impacts onthe ecology and on human health?

● Will the intervention result inincreased groundwater abstractionand aquifer depletion or quality?

■ Ensure that all the potentialenvironmental effects have beenidentified along with satisfactorymitigating measures.

■ Include prediction of futureabstraction rates and their impact ongroundwater levels and quality inthe feasibility study, especially fordrought or low flow conditions.

■ Review measures to monitor andcontrol rates of abstraction such aslicensing, electricity tariffs, andpublic education campaigns.

■ Ensure that providing water forlivestock will not causeenvironmental degradation.

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Knowledge, based on effective data collection and monitoring procedures, is a pre-condition fordevelopment of AWUM programmes. Therefore examine:

● What gaps exist in the informationneeded for planning, decision-making and subsequentmonitoring?

● What is the quality andcompleteness of the data?

● To what extent is the lack ofknowledge a constraint toinformed decision-making?

● What baseline data is needed tofacilitate mid-term or postimplementation evaluation ofinterventions?

■ Specify information needs in all areasincluding technologies,management, and user participationand organisation.

■ Confirm that indicators areappropriate and adequate.

■ Review current data availability andsources and ensure implications ofrisk are reflected.

■ If data quality or availability is aconstraint, consider support forinterventions described under theWRAP Focus Area.

Education and awareness raising targeted at agency staff and users are needed to develop userparticipation and reach decisions over competing user group needs. Therefore examine:

● Has awareness increased since theidentification phase?

● Do farmers understand theproposed plans and managementstructures?

● Have the concepts of participationand user responsibilities beenestablished and accepted?

● Do the farmers understand theimportance of efficient watermanagement and environmentalissues?

● If Water User Associations are to becreated, do the farmers fullyunderstand the implications?

■ Review state of awareness, andpromote education on water savingand management, soil conservationand environmental aspects.

■ Include activities for improvingknowledge on water use with dueregard to social structures, languageand resources.

■ Assess the role of extension workersand include training so that they caneducate farmers on water use andmanagement.

■ Include education programmes toassist farmers to understand theconcept of Water User Associations(see Part III).

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Appropriate specification and design of hardware for water control and management can onlyoccur when there are reliable estimates of resources and needs. Therefore examine:

● Do preliminary estimates of supplyand demand for water needrevising?

● Is the water demand of theproposed project compatible withpresent and future demands fromother sectors?

● Are assumptions and allowancesfor system inefficiencies andmanagement losses realistic?

■ Examine the methods and data usedto determine supply and demandand, if necessary, recommendadditional data collection.

■ Confirm that the predicted waterdemand of the project can be metwithout conflict with other sectors.

■ Compare the design with those inother similar schemes in the region.

The design of hardware and specification of operating rules must minimise detrimental impactson the environment. Therefore examine:

● Will proposed technologiesminimise the impacts of theintervention on soil erosion, waterquality and human health?

● Are the design, funding andphasing of drainage worksadequate to prevent long-termland degradation?

● Is drainage adequate to preventwater-logging and/or salinity?

■ Ensure that technical design takesaccount of the environmentalassessment regarding health impactsand catchment management andincludes mitigating measures.

■ Ensure that the feasibility study fullyaddresses the risks of waterloggingand salinisation and sets outappropriate drainage designs.

■ Review environmental sustainability.

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Engineering solutions should take account of the material and technical resource base availableto the operating agencies and the users. Therefore examine:

● Is the intervention structured toallow users to participate inselection of outline and detaileddesigns?

● What is the condition of anyirrigation and drainageinfrastructure on which theintervention will build?

● Does technology lend itself tomanagement by farmers?

● What technical and/or financialsupport and training will operatorsneed to sustain the system?

● Are the technologies compatiblewith others already in use in thecountry?

● Do the proposed technologiesbuild upon indigenous technicalknowledge?

■ Where possible, proposals should bebased on requests from farmers.Outline designs should be discussedin the field with intended users.

■ If existing infrastructure is in poorcondition identify the causes andaddress these, rather than introducenew constructions.

■ If technologies require specialisedskills or facilities, look for alternativesolutions.

■ Include training programmes forusers and managers.

■ Ensure compatibility with existingtechnology.

■ Ensure that indigenous techniques(see Part III) of water acquisition andcontrol have influenced the selectionof technology.

Simplicity and operational flexibility must be incorporated into the designs to account for likelychanges in the operating environment. Therefore examine:

● Is water distribution easilyunderstood so that inequities ofsupply are clear?

● How will the system function attimes of water shortage?

● Is the technology flexible enoughto allow for reasonable changes incropping patterns, operatingmethods and irrigating periods?

■ Verify that the technology proposedis acceptable and comprehensible tothe users.

■ Ensure that the technology can stillbe operated under conditions oftemporary water shortage.

■ Make realistic assumptions abouthow services will operate in the longterm and check that the types oftechnology adopted will functionunder these conditions.

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Sustainability requires that maintenance needs are identified and agreements for the technicalperformance of installations reached with agencies and farmers. Therefore examine:

● What are the tasks andcommitments associated with theselected technologies?

● How will irrigation and drainagemaintenance be organised?

● How will maintenance befinanced?

■ Discuss O&M models with agencyand farmers; identify constraints andmake recommendations forovercoming them.

■ Draw up maintenance schedules andestimate the costs for discussion withagency/farmers.

9Chapter

Financing

Programming

Identification

Formulation

Financing

Implementation

Evaluation

Securing of financial agreement for the project

9The purpose of thefinancing stage is toreach an informeddecision toimplement theproject and to securefunding for it. Thedecision is taken onthe basis of aFinancing Proposal,which has a standardformat for ECprojects and includesthe logicalframework. Theconclusion of thefinancing stage is adecision to grantfunds by the EC,following thefavourable opinion ofthe EU memberstates.

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ALL FOCUS AREAS

Securing project financing requires the preparation of a FinancingProposal (FP), for water-related projects as for others. This is presented tothe Commission for approval and agreement by the EU member states.

The information presented in the FP will be derived from studiescarried out during the Identification and Formulation stages of projects inall Focus Areas. Reference to these studies, and their principal findings,should be included within annexes to the FP. The FP, excluding annexes,must be succinct with a maximum of seven pages plus a one page logicalframework. For projects costing less than ECU 2 million the FP must be amaximum of three pages plus the logical framework. The standardformats for these Financing Proposals are set out in Tables 1 and 2 at theend of this chapter. Annexes should be added to the FP to give details ofthe responses presented in the Proposal.

The checklist presented below serves as a guide for effective drafting ofa Financing Proposal for a water-related project. To help in thepreparation of an FP, it is structured around the standard format for largerprojects but applies equally to a project of less that ECU 2 million.

Checklist for Section 1: Summary

● Give a brief overview of the key project elements including the overallobjective, the purpose, results, activities and overall costs, with areference to the logical framework attached as an annexe.

Checklist for Section 2: Background

2.1 Governmental/sectoral policy

● State how the project/programme conforms to the relevant NationalIndicative Programme (NIP) or Regional Indicative Programme (RIP).Identify those international standards or targets to which theproject/programme conforms or contributes.

● Verify that the project/programme is consistent with any recentchanges in national policy

● Identify how the project/programme conforms to stated governmentpolicy relating to water.

● Summarise the government’s attitude to any institutional, legal orpolicy reform that is required for effective implementation, ensuringthat there is no contradiction between required reforms andgovernment commitment to reform.

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For all phases of the project cycle other thanprogramming, checklists have been preparedin the same format, to allow the user of theGuidelines to examine key issues likely to arisein the preparation and implementation ofprojects, alongside possible responses. Issuesand responses are grouped according to a setof problem statements within the framework ofprinciples established in the strategic approach,

starting with Institutional and Managementprinciples, and proceeding through allcategories of principles. In the Identificationand Formulation phases, each programmingcontext is handled separately since issues andresponses differ between Focus Areas. In otherphases, issues and responses are generic, andthe same set of checklists applies in every FocusArea.

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2.2 Features of the Sector

● Summarise the evaluations of previous projects/programmes andindicate how the lessons from these are incorporated in the proposedproject/programme.

● Confirm that any pre-conditions for financing, identified duringformulation, have been met. (Give details in an annexe)

2.3 Beneficiaries and parties involved

● Identify all the stakeholders in the project. Specify numbers and theirgeographic locations and state the nature of the intended benefits.

2.4 Problems to be addressed

● State the causes and effects of the problem(s) that theproject/programme aims to address.

● Define the physical, institutional, social and/or managerial constraintsthat the project/programme aims to remove and, if relevant, whatcomplementary actions must be taken before the full benefits of theintervention will be realised.

2.5 Other operations

● Identify other donor agencies and projects that are active in fieldsrelated to the proposed project/programme and specify what co-ordinating activities are proposed to avoid duplication of inputs.

2.6 Documentation available

● List key reports, sector reviews, policy statements and legal statutesthat underpin the proposed project/programme. Highlight the mostsignificant findings of the feasibility studies, environmental impactassessments, mission reports, economic evaluations etc. in an annexe.

Checklist for Section 3: Intervention

● Verify that the project’s logical framework provides a clear andcoherent resume of the details described in section 3 of the FP.

3.1 Overall objectives

● Repeat the goal or ‘overall objective’ stated in the project’s logicalframework that is annexed to the FP. The overall objective must beconsistent with programming guidelines set out in the NIP or RIP.

3.2 Project purpose

● Repeat the project purpose statement set out in the project logicalframework. Except in the case of highly complex projects orprogrammes, there should be only one project purpose which shouldbe specified in quantitative terms wherever possible.

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3.3 Results

● Quantify the expected physical and non-physical results or outputs ofthe project/programme, and wherever possible, value them.

3.4 Activities

● Specify the major activities necessary to accomplish each of theresults.

Checklist for Section 4: Assumptions

4.1 Assumptions at different levels

● State the assumptions made in formulating the project which must besatisfied so that: (1) The activities yield the expected results; (2) Theresults lead to the expected project purpose; and (3) The purposecontributes to the overall development objective. Provide anassessment of the level of risk that any of the assumptions may not befulfilled, and the likely impact of that on the benefits arising from theproject.

4.2 Risks and flexibility

● Indicate what flexibility has been built into the project/programmestructure to allow adjustments to be made as a consequence ofchanges in external factors; for example, allow for a mid-term reviewto revise the project plan.

● Specify the measures included to overcome any observed weaknessesin other projects/programmes that have been evaluated.

Checklist for Section 5: Implementation

5.1 Physical and non-physical means

● List the physical and non-physical inputs required to achieve thespecified project results. This will be based on the findings of thefeasibility study. Inputs should be categorised under the followingheadings: infrastructure, equipment, operational inputs, localpersonnel, services (external technical assistance), credit lines andcontingency funds.

5.2 Organisation and implementation procedures

● Specify the public and private agencies charged with responsibility forproject/programme implementation.

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● While external advisory services and technical assistance may beessential for project implementation, they should not fill posts wherelocal expertise already exists, and measures should be included toensure sustainable services once the external assistance ends.

● Identify the process indicators to be used to monitor implementationand state what contingency plans exist if targets are not met.

● Identify where the data required to calculate the process indicatorswill be obtained and designate the agencies responsible for itscollation, storage and processing; plan for adequate resources to besupplied for continued data collection.

● Justify the assumed institutional capacity of the implementingagencies to manage and disburse funds adequately.

● For Decentralised Co-operation interventions the FP should describethe relationship between local agents and central public authoritiesand the measures taken to ensure effective management by the localagents.

5.3 Timetable

● The timetable for implementation must be verifiable and shouldtherefore contain quantitative targets or milestones to be reached atspecified times.

● Detailed implementation and financial disbursement schedules willnormally be included as annexes to the FP.

● The timetable must include a date for the start of the project, adefinition of the action that constitutes the start of the project, and adate by which the project will be finished and all payments made.

5.4 Costs and financing plan

● Costs should be broken down by type of input and expressed in localcurrency and foreign exchange depending on the source of funding.Cost data will normally be presented in an annexe.

● All sources of funds have to be included in the FP, which should bedesigned in such a way that proposed disbursement targets cover allfinancing needs.

● Ensure that any resources to be committed by the commercial sector,NGOs or other stakeholders are fully quantified and are available on asustainable basis.

5.5 Special conditions: accompanying measures taken by the Government

● State any special conditions (i.e. pre-conditions) entered into bygovernment at the programming stage, the agreed programme foradherence to those conditions and the degree of compliance.

● State all accompanying measures (i.e. conditions to be fulfilled duringor after implementation), that have been agreed with governmentwith quantitative and time-bound measures to permit monitoring ofcompliance.

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Checklist for Section 6: Factors ensuring sustainability

6.1 Policy support measures

● This relates to broad policy changes that are distinct from projectspecific ‘accompanying measures’ described at 5.5.

● No project or programme can be viable in an unsupportive policyenvironment. If the feasibility study identifies the need for changes inpolicy the nature and extent of such changes and any need fortechnical assistance should be stated. These may include:■ Policy and legislative changes regarding cost recovery ■ Policy and legislative changes regarding land tenure reform■ Policy relating to participatory project design and implementation

6.2 Appropriate technology

● Justify why particular technical and engineering approaches have beenadopted. Demonstrate that they are compatible with the financial,technical, managerial and social capabilities and preferences of theoperating agencies and final end users.

● Indicate where the selection of technologies is fully reviewed in thefeasibility study.

6.3 Environmental protection

● If an Environmental Analysis or Environmental Impact Assessment(see Part III) was carried out in formulation, summarise the findings ofthe review detailing: ■ The key environmental concerns arising within the project.■ Any specific environmental design, management, and monitoring

of mitigation measures that are recommended to avoidunacceptable environmental damage.

6.4 Socio-cultural aspects/gender sensitivity

● State to what extent the users and other stakeholders have taken partin the identification and formulation phases of the project and howtheir support for the proposed intervention has been manifested.

● Refer to the conclusions of any Social Impact Analysis (see Part III)carried out during formulation.

● Indicate the extent to which users will effectively participate in projectimplementation.

● State how the specific needs of women have been identified duringformulation and what measures are in place to ensure that women areempowered to influence project design, implementation andoperation.

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6.5 Institutional and management capacity, public and private

● Identify the public and private sector agencies, including user organisations andother participatory groups, that will be involved in project implementation andall aspects of subsequent operation. Summarise their capability to discharge theirresponsibilities and state the measures included in the project to raise themanagement capabilities of these agencies.

6.6 Economic and financial analysis

● Explain which economic entities were considered; upon which assumption the‘with’ and ‘without’ scenarios are based; what benefits and costs were taken intoaccount; what alternatives were considered and why they were rejected; and theproject’s sensitivity to change relating to key factors.

● Justify the form of economic and financial analysis applied to the project. Whereappropriate, the findings of economic and financial analyses should be presentedin an annexe (see Part III).

● State how the long term costs of the project – operation, maintenance anddepreciation – will be met after implementation is completed.

Checklist for Section 7: Monitoring and evaluation

7.1 Monitoring indicators

● State, in quantitative and time bound terms, the results that theproject/programme aims to achieve. Make sure a set of monitoring indicators andrealistic targets have been set (see Part III.)

● Indicate what data will be collected, and which agency is responsible for itscollection and processing, to permit objective monitoring of project progress andimpact. These will be reflected in the project logical framework.

7.2 Reviews/evaluation reports

● Identify the agencies responsible for carrying out project reviews and preparingevaluation reports.

● Specify the frequency and timing of reviews, e.g. annual, mid-term, ex-post.

Checklist for Section 8: Conclusion and proposal

● The FP should conclude with a decision to approve the project financing. ● Following approval of the FP, a Financing Agreement should be drawn up and

signed by the EC and Partner Organisation.

However, during the preparation of the Financing Proposal, if anyweaknesses are identified in any of the above sections of the standard form,the project should be reassessed or redesigned, which may require furtherstudies and a return to the formulation stage. If the weaknesses are insolublethe project should be rejected.

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183

Table 1 - Basic Format for a Financing Proposal

(projects greater than ECU 2 million)

1 Summary

2 Background2.1 Governmental/sectoral policy2.1 Features of the sector2.2 Beneficiaries and parties involved2.3 Problems to be addressed2.4 Other operations2.5 Documentation available

3 Intervention3.1 Overall objectives3.2 Project purpose3.3 Results3.4 Activities

4 Assumptions4.1 Assumptions at different levels4.2 Risks and flexibility

5 Implementation5.1 Physical and non-physical means5.2 Organisation and implementation procedures5.3 Timetable5.4 Costs and financing plan5.5 Special conditions; accompanying measures taken

by the Government

6 Factors ensuring sustainability6.1 Policy support measures6.2 Appropriate technology6.3 Environmental protection6.4 Socio-cultural aspects/women in development6.5 Institutional and management capacity, public

and private6.6 Economic and financial analysis

7 Monitoring and evaluation7.1 Monitoring indicators7.2 Reviews/evaluation reports

8 Conclusions and proposalsAnnexes: To give supporting information

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Table 2 - Basic Format for a Financing Proposal

(projects less than ECU 2 million)

Summary comprising the following information:

1 Recipient state

2 Project title

3 Type of project

4 Authority submitting the project

5 Registration number

6 Sectoral classification

7 Amount EU delegation and official responsible

8 Background8.1 Main features of the sector8.2 Problems to be addressed

9 Objectives and expected results9.1 Project purpose9.2 Project results

10 Project implementation10.1 Inputs10.2 Time schedule10.3 Accompanying measures

11 Factors ensuring sustainability

12 Monitoring and evaluation

10Chapter

Implementation

Programming

Identification

Formulation

Financing

Implementation

Evaluation

Execution of the project plan

10The purpose of theimplementationstage is the efficientcreation of physicalstructures andinstitutional systemsto yield asustainable flow ofbenefits. Duringimplementation,activities are carriedout according to atimetable andfinancial plan.Special conditionsmust be satisfied,and regularmonitoring andsupervisionconducted.

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Implementation Monitoring1

Effective control of costs, contracts, and budget disbursement are essential to ensure projectcompliance with implementation targets. Therefore examine:

● Is the agreed local budgetcomponent being released onschedule?

● Are project costs in line withbudget?

● To what extent is the award andsupervision of contractstransparent and efficient?

● What mechanisms have beenestablished for financialaccountability?

■ Discuss any local budget shortfall atan appropriate government level.

■ Where costs exceed budget, identifycausal factors and correct. Ifimpossible, reduce the scope or scaleof the activity.

■ Discuss the tender and awardprocedures with appropriate agenciesto ensure to ensure correct, timelyapplication of EC procurementprocedures.

■ Agree financial managementprocedures with the implementingagency.

Changes in policy objectives and economic factors external to the project may necessitaterevision to reflect their influence on project benefits. Therefore examine:

● Have there been significantchanges in the project contextsince financing was secured?

■ Carry out a Mid-term Review to re-assess the project objectives, outputsand activities to determine theirinfluence on its viability.

■ In Mid-term Review, determine whatchanges can be made to the scale,scope and schedule of the project.

1 Monitoring of implementation addresses general issues that cut across the guiding principles.

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approach, starting with Institutional andManagement principles, and proceeding through allcategories of principles. In the Identification andFormualtion phases, each programming context ishandled separately since issues and responses differbetween Focus Areas. In other phases, issues andresponses are generic, and the same set of checklistsapplies in every Focus Area.

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Monitoring and supervision of all aspects of the project must be effective, and allow plannedrevision of targets and other remedial actions to be made in good time. Therefore examine:

● Are appropriate data beingcollected to permit timelycalculation of input, output andimpact indicators relating to allthe guiding principles?

● Are project progress reports servinga useful purpose?

● Is there a need for any additionalproject supervision?

■ Review monitoring and evaluationprocedures, and undertake furthertraining as necessary.

■ Verify that progress reports are beingused to highlight rather thandisguise problems.

■ Where problems are encountered,commission Mid-term Review torevise the project and log frame.

■ Discuss the need for further capacitybuilding or external supervision toenhance project monitoring.


Changes in the structure of implementing agencies may weaken (or improve) their capability to implement the project or programme. Therefore examine:

● Have changes in the structure ofthe implementing agency, sincefinancing was secured, alteredtheir ability to implement theproject?

● Does the schedule of projectactivity still seem realistic?

■ Re-assess the implementationschedule and propose revisions.

■ Identify if additional consultancysupport may be required to meetshortfalls.

■ Consider whether other public orprivate sector agencies should bebrought in.

It is important that conditions built into the financing agreement for the project are fulfilled.Therefore examine:

● Have the pre-conditions, agreed atthe time of financing, been fullysatisfied?

● Are there specified conditionalitiesto be satisfied duringimplementation and are thesebeing met?

■ Discuss unsatisfied pre-conditionswith the relevant agency. Considerrenegotiating the financingagreement.

■ Monitor progress on allconditionalities and discuss anyfailings with the implementingagency.

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Measures to improve inter-sectoral and inter-agency planning may meet with resistance,thereby hindering implementation. Therefore examine:

● Are weaknesses in the strategicplan or developments in othersectors or other agencies affectingimplementation?

● If the project was predicated oninstitutional reforms, have thesebeen carried out?

● Are different agencies fulfillingtheir roles and responsibilities?

■ Identify weaknesses in existingprocedures for integrated planningand recommend improvements.

■ Identify what remedial actions maybe taken to reduce inter-sectoralconflicts and integrateimplementation with otherprogrammes and projects.

■ Monitor compliance with pre-conditions relating to institutionalchange, discuss shortcomings and tryto find remedies. Where this isimpossible, modify the projectframework.

Sustainability of services requires that users and operators understand and fulfil theirresponsibilities for O&M. Therefore examine:

● Is the strategy for handing overservices to the operating agencyand/or users well-defined and doesit seem likely to work?

■ Ensure that the hand-over plan andassociated training requirements aredefined and running on schedule.

■ Propose remedies where the strategyis not working well in practice.

There is a danger that training and capacity-building measures, defined at formulation, are cutback during implementation or are ineffectual. Therefore examine:

● Are the implementing agenciesmanaging project implementation– financial management, userparticipation, data collection,monitoring – satisfactorily?

● Have suitable staff been recruitedand retained to fill key projectposts?

● Is the agency developing itshuman resources over the longterm?

● Is there a need for strengtheningthe implementing agency’smanagement capacity in the shortterm?

■ Where under-performance is evident,discuss with the implementingagency and identify remedial actions.

■ Identify ways to attract and retainsuitably qualified staff.

■ Verify that training is providing therequired skills.

■ Review the agency’s human resourcedevelopment strategy and makerecommendations for improvements.

■ Identify what additional consultancysupport may be required and how itmay be funded.

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Social Principles

Intervention may disrupt traditional user rights to land and water resources and lead toincreased inequalities between stakeholders. Therefore examine:

● Are compensation measures forland consolidation and land takenfor rights of way acceptable?

● Are compensation measuresadequate for those losingtraditional rights to water?

● Is there evidence of detrimentalsocial impact that was unforeseenduring formulation?

■ Ensure that affected parties have fullinformation regarding expectedproject benefits. Consult withstakeholders, and improvecompensation if necessary.

■ Define the extent, nature and causesof the detrimental social impact andmodify the project’s implementationto reduce the problem.

Where a community-based approach is used the community may want to modify the scope ofthe project during implementation. Therefore examine:

● Are local communities requestingchanges or additions to theproject?

● Are the targeted stakeholders,including the disadvantaged,women and minority groups ableto participate in implementationdecisions?

● Is the participation of differentstakeholder groups equitable,accountable and transparent?

● Are key target groups receivingbenefits from the project asintended?

■ Assess requests to determine ifchanges can be incorporated. If not,present the issues to the communityand examine alternative strategies.

■ Identify those stakeholders who aremarginalised, and develop methodsfor their participation.

■ Encourage participation processesthat avoid any one group gainingundue influence or control.

■ Identify what factors are preventingsocial benefits from reaching thetarget groups and revise the projectapproach to overcome them.

Management information systems may need revision if the nature or scope of the project arerevised during implementation. Therefore examine:

● Are effective management systemsin place?

● Are the project planning andprocurement and contractingmechanisms working effectively?

● Does the quantity and quality ofdata collected match the needs ofthe project and permit effectivemonitoring and managementdecision-making?

■ Where management systems appearweak or open to malpractice discusspractical improvements withgovernment.

■ Review the operation of systemsestablished for data collection,storage and processing and makenecessary revisions.

■ If the project scope or objectives arerevised, ensure that managementinformation systems are stillappropriate.

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The financing proposal may identify effective women’s participation as central to the project’ssuccess. Therefore examine:

● Are women centrally involved inimplementation activities?

● Are women represented on asignificant proportion of allcommittees at decision-makinglevels?

■ Initiate discussions and actions toimprove the participation of womenin the management of projectactivities.

■ Review the structure of committees.Where necessary and practicable,seek to increase the proportion ofwomen.


Changes in economic factors occurring between financing and implementation may requirerevision of the project. Therefore examine:

● Have any factors changed thatmay result in the project notbringing about the intendedeconomic benefits for anybeneficiary group?

■ Identify the factors that may reduceeconomic benefit. Discuss these withrelevant parties and modify projectactivities as required.

Long-term financial sustainability must be planned for during implementation. Therefore examine:

● Are the mechanisms intended toensure cost recovery and thefinancial sustainability of theproject being put in place?

● Are monitoring procedures inplace to determine the financialsustainability of the project?

■ Initiate discussions with governmentto ensure that necessary human,financial and physical resources arein place.

■ Strengthen training and capacitybuilding concerning cost recoveryprocedures.

■ Ensure that all parties understandthe data gathering and reportingprocedures needed to facilitate costrecovery.

Co-ordination of funds from different sources is essential to avoid wastage and project delay.Therefore examine:

● Are contributions from differentgovernment and donor sourceswell co-ordinated?

■ Initiate donor co-ordinationmeetings at an appropriate level.

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Information obtained from project monitoring should be used to shape and direct theimplementation process. Therefore examine:

● Is information on projectperformance being circulated to allstakeholders, or merely being heldin unread reports?

● Are project reports being analysedand used to inform projectmanagement decisions?

■ Use process and impact indicators toevaluate if project implementation ison schedule and meeting objectives.

■ If indicators cannot be calculated,appear unreliable or inadequate,review monitoring and evaluationprocedures.


Environmental damage may result because adverse impacts were previously unrecognised orinadequate resources provided for mitigating measures. Therefore examine:

● Is the project having anyunforeseen environmentalimpacts?

● Are institutional structures andequipment in place to permiteffective environmentalmonitoring during and afterimplementation?

● Are the mitigating measuresdefined during project formulationbeing fully implemented?

■ Review the environmentalmonitoring procedures and advisegovernment as to their adequacy andsustainability.

■ Review the implementation ofmitigating measures to assess theiradequacy, sustainability andacceptability.

■ Check with stakeholderrepresentatives to see if there areunforeseen environmentalconsequences. If necessary, definenew mitigating actions.

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Provision of information and clarity of procedure are necessary for conflict resolution between different stakeholder interests. Therefore verify:

● Are implementing agenciesproviding adequate information tostakeholders and ensuringtransparency of purpose?

● Are health education programmesreaching all beneficiaries includingdisadvantaged and minoritygroups?

■ Ensure that proposed informationdissemination measures – workshops,newsletters, village meetings, etc. –are implemented.

■ Ensure that training of governmentstaff and other stakeholders ininformation management is carriedout.

■ Use performance indicators to reviewhealth education efforts (see Part III)and make appropriaterecommendations for change.


Where construction quality is poor or equipment is badly specified, systems may failprematurely and maintenance costs will be high. Therefore examine:

● Are project consultants andcontractors performingadequately?

● Is supervision of construction andcommissioning of systemsadequate?

● Are construction works beingmonitored to ensure quality andadherence to design specifications?

● Is the equipment procured provingsatisfactory?

● Have adequate repair provisions,including spare parts, been made?

■ Monitor the effectiveness ofconsultants and contractors againstagreed performance indicators.Where necessary consider revokingcontracts or applying penalties.

■ Identify means of strengthening thetechnical supervision ofconstruction.

■ Put in place repair workshops,trained workers, spares, stockcontrol, etc.

■ Evaluate the effectiveness of anyinstalled equipment and use thefindings to influence subsequentprocurement.

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Technology that was judged appropriate at the design stage may prove in-appropriate asimplementation proceeds. Therefore examine:

● Are any weaknesses in technicaldesign becoming apparent?

● Are users showing a willingnessand ability to take responsibilityfor operation and maintenance ofequipment?

● Do local agency staff understandthe technology and know itsoperation and maintenancerequirements?

● Is indigenous knowledge beingincorporated into designs?

■ Carry out a mid-term review,mandating technical experts torecommend revisions to design,equipment specification or othercorrective action.

■ Review the training programmes thatare in place for the end users of allnew technologies.

■ Examine the possibility of adoptingalternative technical solutions,including appropriate indigenoustechnologies.

Technological and construction aspects usually represent the major capital and recurrent cost items. Therefore examine:

● Are the implementation costswithin budget estimates?

● Is the project delayed?● Is the original design proving to be

inappropriate or likely to result inhigh O&M or other recurrent costproblems?

■ Identify the reasons for higher thanexpected costs and if necessary revisedesigns.

■ If higher costs are due to externalfactors (e.g. major currencyfluctuations, climate change)consider revisions to the project toremain within budget, seekadditional funding or, under severeconditions, recommend projectclosure.

■ Ensure that issues of cost over-runare addressed in the terms ofreference (TOR) of any mid-termreview.

11Chapter

Evaluation

Programming

Identification

Formulation

Financing

Implementation

Evaluation

Analysis of activities and outcomes of the project

11The purpose of theevaluation stage is toarrive at anassessment of howsuccessful the projecthas been in meetingits stated objectives.Performance will bejudged againstindicators selectedduring theformulation stage,and results comparedwith baselineinformation. Theevaluation must beindependent andobjective.

197

ALL FOCUS AREAS


Operational monitoring1

Operational monitoring permits effective post-project evaluation, provides lessons to improvefuture project quality and helps identify new projects. Therefore examine:

● Have significant external changesoccurred that will affect thesustainability of the project?

● Was the project design, technicaland non-technical, adequate? Didit take sufficient account of theguiding principles and the factorsraised in the checklists fromprogramming to implementation?

● Were sufficient monitoringindicators established duringimplementation and has data beencollected to enable meaningfulassessment?

■ Take account of any external change(positive or negative) that maydistort the evaluation of the projectand assess if further assistance isneeded to modify the project to takeaccount of such changes.

■ Derive lessons from the project thatcan be used to improve the quality offuture interventions.

■ Review monitoring and evaluationprocedures and determine whethersupport is needed to ensure theirusefulness once evaluation iscomplete.

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1 Monitoring must continue through the operational period in order to assess long term sustainability.



198

Provision should have been made for effective inter-agency and inter-sectoral planning. If thiswas weak, lessons should be learnt for the future. Therefore examine:

● Was there effective co-operationbetween agencies?

● Were the institutions identified toimplement the projectappropriate?

● Was government support to theimplementing agencies adequateand did the mandates of eachagency complement or contradictone another?

● Did the implementing agenciesfulfil their responsibilities?

■ Recommend improvements in co-operation mechanisms.

■ If the institutions or their internalstructures were inappropriate,identify alternative partners or makerecommendations for institutionalreform.

■ Investigate the reasons forinadequate government support andmake recommendations for change.

■ Where agencies failed to performadequately, identify the weaknessesand recommend necessary capacitybuilding measures (see Page III).


Projects must have sufficient flexibility in their design, implementation schedule andsubsequent operation to permit adjustments to be made. Therefore examine:

● Do the project results comply withstated water policy?

● Are there lessons to be drawn fromthe project that should influencefuture policy?

● What factors, internal or externalto the project, changedsignificantly duringimplementation or subsequent tocompletion and how did thisinfluence the project?

● Were lessons and experiences frompast projects taken into account?

● Were the special conditions andaccompanying measures attachedto the Financing Agreementadequately met?

■ If the project outcome is notconsistent with policy, specify thereason.

■ Ensure that lessons are presented tothe bodies responsible for policyformulation.

■ Determine how the project wasadapted to respond to changes.Identify mechanisms that may beused in future projects to improveflexibility.

■ If there was a failure to meetspecified conditions, determine ifthis was because of unrealistic targetsor deliberate decisions bygovernment not to comply.

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The project should have been formulated and implemented in a way that ensured effectivestakeholders participation. Therefore examine:

● Were all stakeholders given theopportunity to participate inproject/programme formulation?

● Were NGOs and private sectororganisations effectively involvedin project implementation?

● What informal and formal localcommunity structures, includingindigenous management systemsand organisations, wereincorporated into the project?

● Were contracts packaged toencourage participation by thelocal private sector?

● Has project implementation orsubsequent operation beenhindered by weaknesses in laws orregulations?

■ If groups were prevented fromparticipating, determine the causes.

■ Analyse the actual and potentialinvolvement of NGOs and theprivate sector. If their involvementwas ineffectual, suggest a betterselection process and/or means tostrengthen their performance infuture projects.

■ Identify indigenous knowledge andlocal institutions that contributed orcould have contributed to theproject.

■ Discuss with the governmentpossible modifications to legislation.

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Sustainable hand-over of infrastructure and equipment depends on the training of users and organisations allocated responsibility for O&M and management of services.

Therefore examine:

● Was there a clearly definedstrategy for hand-over of theproject; was it sufficientlycomprehensive and was iteffectively implemented?

● Were the right people trained andgiven the correct mix of skills?

● Where external technicalassistance was used to providetraining, was this cost effective?

■ Evaluate the effectiveness of hand-over. If there was no strategy, or itfailed, remedy the situation, if stillpossible.

■ Evaluate what level of skills transfertook place; identify weaknesses intraining and make recommendationsfor the future.

■ Determine whether there is now anadequate local or national skills baseto avoid future external technicalassistance in this area.

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Transparent and accountable management information systems in which users and serviceproviders have confidence are essential for operational efficiency. Therefore examine:

● Are the management informationsystems used by the operatingagency understood by all thestakeholders and providingrelevant information?

● What systems have beenestablished to monitor the social,economic and environmentalimpacts of the project?

■ Assess the effectiveness of themanagement information systems inplace, taking account of the views ofthe different stakeholders. Discussmethods of improving procedures ifnecessary.

Social Principles

Ownership by stakeholders and user groups of services provided by the project is essential in ensuring sustainability. Therefore examine:

● Were all stakeholders, includingwomen, the disadvantaged andminority groups identified andinvolved in projectimplementation?

● Did the users actively participatein the design, installation,operation and maintenance ofservices and do they have a clearsense of ownership?

■ Assess the comprehensiveness andutility of the stakeholder analysisconducted during formulation andrecommend improvements.

■ Determine if the findings of genderanalysis influenced project designand implementation.

■ If the intended users have failed totake on ownership, assess the reasonsand recommend changes for futureprojects.

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Evaluation must determine to what extent intended social development has been achieved andwhat unexpected impacts may have occurred . Therefore examine:

● Are data available to calculatewhether intended social impactswere achieved?

● What lessons can be learntregarding the interactions betweensocial development and water-related projects?

● Did the benefits from the projectreach the target number ofbeneficiaries?

● Is the distribution of benefits andopportunities generated by theproject equitable?

● Were policies to target women, thepoor or minority groups effective?

■ Where data are unavailable or socialimpact indicators are inadequate,discuss with those responsible formonitoring. If necessary, use proxyindicators.

■ Use Social Impact Analysis (see PageIII) as part of project evaluation andto make recommendations forfuture projects.

■ If the number of beneficiaries, theextent of benefits, or the equity oftheir distribution is less thanprojected, identify the causes.

■ Evaluate the effectiveness of anytargeting policy and makerecommendations.


The economic and financial sustainability of the project depends on the avoidance ofinappropriate subsidies and effective cost recovery. Therefore examine:

● Are cost recovery mechanismseffective and raising sufficientincome to cover the targetedproportion of operating,maintenance and depreciationcosts?

● If subsidies to cover service costsare essential, are they operated insuch a way as to prevent profligatewater use?

● Did the government meet itscommitments to release localfunds on time?

■ Evaluate cost recovery mechanismsand discuss any requiredimprovements with government.

■ Review tariff structures (see Page III)and the use of government subsidiesto identify ways of reflecting the truecost of water delivery withoutinflicting hardship on the poorest.

■ Assess the government’s performancerelating to its disbursement of agreedmatching funds.

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Projects must demonstrate economic benefit and financial accountability if they are to besustained over the long term. Therefore examine:

● Are data available to calculate theeconomic impact defined inproject formulation?

● Has the project yielded thepredicted economic benefits?

● Was the project completed close toor within budget?

● Was the financial management ofthe project by the implementingagencies adequate and was thissupported by reliable externalauditing?

■ Where data are unavailable oreconomic impact indicators areinadequate discuss with thoseresponsible for monitoring. Ifnecessary, use proxy indicators.

■ Identify the causes of any significantvariation between predicted andactual economic benefit.

■ If there was a major overspend,identify the causes and ensure thatthe findings are incorporated infuture programming.

■ Assess the disbursement andmanagement capacity of theimplementing agencies and plandisbursement schedules for futureprojects accordingly.


Environmental damage may result because insufficient time and money is invested in collectionand analysis of data during and after implementation. Therefore examine:

● Are data available to calculate theenvironmental impact defined inproject formulation?

● What were the environmentalimpacts of the project?

● Were mitigating measures effectivein minimising adverse impacts?

● Is an adequate level ofenvironmental monitoringcontinuing after projectcompletion?

■ If data are unavailable or theenvironmental impact indicators areinadequate discuss with thoseresponsible. If necessary, use proxyindicators.

■ Where significant unforeseenenvironmental impacts haveoccurred, identify the reasons;indicate mitigating measures, andensure that improved environmentalanalysis is incorporated in futureproject cycles.

■ Assess the efficacy and acceptabilityof the mitigating measuresintroduced.

■ Make recommendations forimproved long term monitoring andreporting.

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Public education, awareness raising, and free availability of information to all stakeholdersfacilitate the sustainability of water projects. Therefore examine:

● Has the government taken actionsto improve the transparency ofdecision-making and contractualprocedures?

● Is information made available toall stakeholders in acomprehensible manner?

● Were public education activitiessuccessful?

■ Assess improvements in theprovision of accurate andunderstandable information bygovernment and private sectoragencies.

■ Assess the effectiveness of educationcampaigns by means of impactindicators defined at formulation. Ifdata is inadequate, make a rapidappraisal of impact amongst keystakeholder groups.


In evaluating the appropriateness of technology and its influence on the wider results of theproject, the accuracy of underlying data is critical. Therefore examine:

● Have technical design assumptionsregarding water supply anddemand proved valid?

■ Assess whether technical designassumptions were valid. Whereinaccurate assumptions have led topoor design, make appropriaterecommendations for future projects.


Evaluation should determine whether the knowledge base was adequate and whetherrecommendations for improved data collection have been implemented. Therefore examine:

● To what extent did the absence ofreliable baseline technical and/orsocial data lead to weaknesses inproject design or implementation?

● Was it possible to monitor projectimplementation effectively?

● Is there on-going monitoring of allrelevant aspects of the project?

■ Evaluate the impact of baseline dataquality on the project outcome. Ifnecessary make recommendations toestablish better, and targeted, routinedata collection.

■ Review the performance of agenciesresponsible for monitoring progressand impacts, and discuss difficultieswith the agencies involved.

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Technological solutions must be acceptable to the target users and compatible with theenvironment. Therefore examine:

● Were users able to participateeffectively in the selection oftechnology?

● Have the users/operators ofequipment received sufficienttraining in its operation andmaintenance?

● Is the infrastructure capable ofoperating as planned underconditions of water scarcity and/orpeak demand?

● Is there evidence of ‘cutting-back’or false economies on the originalbudget that may result inenvironmental damage orpremature deterioration ofinfrastructure?

■ Assess the attitudes of all the keystakeholders to the installedtechnology and their role in itsselection.

■ Evaluate the training deliveredduring project implementation andthe provision made for continuinguser training.

■ Review the operation ofinfrastructure. Assess whether itmeets design specifications and theappropriateness of thosespecifications.

■ Discuss any shortfall inimplementation with thegovernment agencies involved,particularly where this may have useracceptability or environmentalconsequences.

Sustainability of infrastructure and equipment can only be achieved if the technical andfinancial requirements for maintenance are met. Therefore examine:

● Are the financial, technical andinstitutional provisions formaintenance of infrastructureproving effective and sustainable?

■ Assess systems of cost recovery forO&M, the availability of technicalexpertise, spares, and theinstitutional arrangements forproviding the resources and labourto carry out maintenance. Makepractical recommendations forimprovement.

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3PART

This part of the Guidelines is a supplement to Part II andcontains material to aid those users who areendeavouring to put into action the Strategic Approachdescribed in the previous chapters.

Both in the general text of the Guidelines, and inthe checklists in Part II, references have been made toprogramming concepts and to research and data-collection methodologies, for which further explanationsand descriptions are needed. Part III is intended to meetthose needs, enabling the user to enhance his or herunderstanding of unfamiliar ideas, and gain a morecomplete picture of the range of tools available forundertaking assessments and analyses at various stages ofthe project cycle.

Contents

Chapter 12: Glossary of key conceptsDefinitions of 51 of the key concepts mentioned in thechecklists and elsewhere in the Guidelines, arrangedalphabetically.

Chapter 13: Programme and project aidsFourteen aids, mostly methodologies for studies and datacollection, recommended in the checklists forassessment, analysis, and monitoring.

Chapter 14: EC funding sources for the application ofthe Strategic ApproachEC structures and funding instruments for potentialwater-related development co-operation.

Chapter 15: Standard formats for Terms of ReferenceFormats for: a Water Resources Country Study; Pre-feasibility Study; Feasibility Study; and Evaluation Study.

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Aids for the application of the strategic approach

12Chapter

Glossary ofkey concepts

12Explanations of keywater-relatedtechnical terms incurrent usage,many of which arecentral to theapplication of thestrategic approach.Some are treatedat greater lengthin Chapter 13.

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Chapter 12

Glossary of key concepts

Appropriate modern technology Awareness raisingBasic needs/Basic services Beijing Global Platform for Action Capacity building Clean technology Communications techniques Decentralised co-operation Demand management Economic and financial analysis Ecosystem management Environmental analysis Environmental economic valuation Environmental sanitation GenderHygiene (or health) educationIndigenous Technical KnowledgeIntegrated water resources managementInternational water lawKnowledge, Attitude and Practice (KAP)

studiesMarginal cost pricing MeteringMonitoring IndicatorsNon-governmental organisations Participation

Participatory AppraisalParticipatory Irrigation Management Participatory Technology Development Policy Review ‘Polluter pays’ principlePrivate sector participation Ramsar Convention Regulatory systems Re-use and recycling of water River Basin Organisations Social data collection Social Impact Assessment Stakeholders Social mobilisation Subsidiarity principleTariffsTariff structuresTransboundary watersVirtual waterWater-borne diseasesWater laws and legislationWater marketsWater ownershipWater quality standardsWater User AssociationsWillingness-to-pay surveys

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Appropriate modern technology: Theterm ‘appropriate technology’ wasoriginally often used interchangeablywith ‘intermediate technology’ at a timewhen the over-sophistication oftechnology used in many developmentprojects was a major problem and led totheir failure. It has therefore often beenwrongly applied to mean technology ofan unsophisticated kind. However, thekey concept is that technology shouldbe ‘appropriate’ in all senses –managerially, economically, socially,environmentally; this may mean that itshould not be highly sophisticated, butnot necessarily. In addition, there havebeen a number of technical advancesand introductions of cost-cuttingmaterials in low-level technology inrecent years – in the cases, for example,of handpumps, tubewell casing andlatrine parts. And certain apparentlylow-level technologies – solar power, forexample – are technically complicatedand require high levels of precision.Therefore, the term ‘appropriate moderntechnology’ captures all elements andcan be used to ensure no confusion withlow-level or intermediate technology, ortechnology which is not up-to-date.

Awareness raising: Awareness raisingor awareness building is the objective ofinformation, education andcommunications activity, usuallydirected at the intended beneficiaries ofservices but also at other stakeholders,including politicians, governmentofficials, and private companies.Identifying awareness raising as aspecific activity of programmes andprojects underlines the fact that acertain level of awareness – about thenature of services, the costs of services,the need to protect water after the pointof collection, the need for hygienic useof water to control disease, and aboutmany other aspects of water-relatedschemes – cannot be taken for grantedamong potential service users.Awareness of the relevant issues is

necessary for effective participation andcommunity ownership of schemes, fordeveloping support for service chargesand systems of tariff collection, and forintroducing mechanisms forenvironmental protection. Awarenessraising is needed to close the gapbetween the expectations of donors andproject managers, and those ofbeneficiaries, especially amongundereducated populations, and cannotbe left to chance. See alsoCommunications techniques.

Basic needs/Basic services: Theconcept of meeting ‘basic needs’ wasdeveloped in the 1970s andinternationally adopted to supplementeconomic growth as the primary targetof development co-operation.Previously, the assumption had beenthat the fruits of economic growthwould automatically ‘trickle down’ tothe poor, but re-assessments in the late1960s showed that the poor weretypically gaining little from – relativelysuccessful – economic growth policies,and were in many cases becomingfurther marginalised. The meeting ofbasic needs for food, water, shelter,health care and education thus becamethe driving force of the second and thirdUN Development Decades (1970s and1980s). The concept of ‘basic services’was developed as the strategy formeeting ‘basic needs’, initially in healthcare and water supplies; later insanitation, household food security andeducation. Critical components of the‘basic services strategy’ included low-cost, appropriate technologyapproaches; and the recruitment andtraining of the community-based worker(under many different designations) atthe frontline of service extension. Thisperson, male and female, acts as a linkbetween services and communities,sometimes as a para-professionalemployee or volunteer, and often as aproselytiser for the benefits of servicesand their proper use. He or she may also

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collect levies for service maintenanceand use. The concept of ‘basic services’therefore not only conveys the idea of aminimal level of service to meet ‘basicneeds’, but their facilitation via supportto community mechanisms. (See alsoParticipation.)

Beijing Global Platform for Action:The Beijing Global Platform is a productof the UN Conference on Women inBeijing in 1995 designed to promotewomen’s rights and gender equality indevelopment. It sets out policies andpractices, which local authorities andother decision makers have beendirected by governments to fulfil, andwhich organisations can use to supporttheir gender-related work. The Platformidentifies 12 ‘critical areas of concern’:poverty, education and training, health,violence against women, armed conflict,the economy, power and decision-making, institutional mechanisms,human rights, media, environment andthe girl child. The Platform definesstrategic objectives and spells out aseries of actions to be taken over thenext five years by governments, theinternational community, non-governmental organisations and theprivate sector, to eliminatediscrimination against women and toremove all obstacles to their equality.

Capacity building: ‘Capacity building’is the term used to describe thenecessary process of institutionalexpansion, improvement or reformwhich facilitates the effective operationof programmes or services. The processshould be continuous, and applies asmuch to formal bodies as informalbodies, such as local community groups.The concept of capacity building hasbecome very prominent in developmentthinking during the recent past. (SeeChapter 13 for a description of methods ofcapacity building.)

Clean technology: Technology usedtoday must respect environmentalsustainability. This means designingsystems so that as little waste and as fewemissions as possible are produced.‘Clean technology’ is a holistic approachto technology. It may mean switching toa more environmentally benignproduction method, or the introductionof a system which reduces waste output.A key objective in water-related contextsis to minimise both consumption andwaste throughout the whole process ofwater supply and sewerage delivery,transport and treatment, withoutcompromise to public health. Forexample, volumes of water used influshing can be minimised: it isunsustainable to use environmentallyand economically expensive clean,treated water as a medium for thetransport of domestic and industrialwaste. This waste, as well as sullage (orgrey water) can be seen as a resource. Byutilising sullage for irrigation, forexample, the volumes of mixed wasteentering a plant can be reduced,therefore minimising the energy andchemicals used in water treatment.Further information: Clean Technology –An Introduction, Journal of ChemicalTechnology and Biotechnology, 1995.

Communications techniques:Establishing good communicationschannels between key stakeholders –notably project staff, officials, localcommunities and beneficiaries – is animportant part of project planning.Without good communications, theparticipatory process is likely to remaincosmetic and ineffective. Manytechniques have been developed foreliciting and exchanging informationbetween stakeholders, especiallybetween project staff and beneficiarypopulations and user groups, and aredescribed in the literature onparticipatory appraisal (see below). Low-income, illiterate or marginalised groups

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may feel inhibited in face-to-facecontact with outsiders and thesetechniques are designed to overcomesuch problems. Communications aidssuch as flip-charts, cue-cards,visualisation of problems, videos andcartoons, may be needed. NGOs,educators, and communications expertswith the relevant experience need to beinvolved in the development of suchaids and their application. More distantcommunications channels such as radioand television can also be used, butactive participation requires face-to-facecommunications. Further information:Communication strategies forheightening awareness of water,UNESCO, 1987. Communication inWater Supply and Sanitation – aResource Booklet. IRC, 1993.

Decentralised co-operation:Decentralised co-operation is the termused by the EC to describe variousfunding mechanisms for developingprojects with, and implementing themthrough, partners other thangovernmental agencies, including localauthorities, universities and NGOs. (SeeChapter 14 for a full description.)

Demand management: Demandmanagement (DM) of water resources isthe alternative to supply augmentation,the prevailing policy in many countriesuntil recently. In countries or regionsfacing implacable hydrological limits,DM recognises water scarcity as a fact oflife and creates the conditions in whichusers can appreciate its real value. Bymaking better use of the resource, DMobviates the need for costly newinvestments, and avoids theenvironmental disturbance inherent inmany new supply schemes. DM hasvarious themes: losses and wastereduction, economy in use, thedevelopment of water-efficient methodsand appliances, creation of incentivesfor more careful use of the resource,

improved cost recovery, reallocationfrom low- to high-value uses, devolvingresponsibility from central government,greater use of economic instruments(prices and markets). DM typicallyincludes measures to relate the value ofwater to the cost of its provision, andthereby motivate consumers to adjusttheir usage. DM entails treating watermore like an economic resource, asopposed to an automatic public service.Introducing DM involves action atthree, mutually reinforcing, levels:creating enabling conditions throughgovernment policies; specific incentivesfor water users; and the implementationof projects and programmes in suchareas as leak detection, canal lining, andwastewater recycling. Furtherinformation: Managing Water as anEconomic Resource, ODI, 1991. Water:Economics, Management and Demand.ICID, 1997.

Economic and financial analysis:Financial analysis is undertaken todetermine a budget for the project, aswell as the intrinsic (before financing)and financial (after financing) value of aproject, for individual economic entitiesor a group of entities. It is a very usefultool to verify the ‘affordability’ of waterfor the poorest groups. Economicanalysis broadens the perspective tonational scale and allows assessment ofthe relevance, effectiveness, efficiencyand viability of the project. However, asit cannot always give a full picture of thefactors affecting a given project, itshould not be used as a sole criterion formaking decisions, but used incombination with other analyses (seeChapter 13 for a fuller description).

Ecosystem management: Theecosystem is the ecological frameworkwithin which flora and fauna exist andthrive. The aquatic ecosystem covers thecomponents of the hydrological system:lakes, rivers, streams and wetlands, but

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is defined also by floodplains,catchments and estuaries whichconstitute complex andinterrelated hydrological systems.Each of these componentsfunction in a larger ecologicallandscape influenced by the othercomponents of the hydrologicalcycle including adjacent terrestrialsystems. Management of theecosystem involves ensuring thatflora and fauna exist in harmonywith their environment. Changesto the ecosystem occurringnaturally are usually slow to makean impact. Man-made changes canupset the balance of the ecosystemand cause it to be unstable.Damage may be irreversible, long-lasting and cause further negativeeffects. Ecosystem managementprinciples require that changesmade to the aquatic environmentare environmentally sensitive andwill not have an adverse impact onother components or the entireecosystem. Further information:Protection of water resources andaquatic ecosystems, UN EconomicCommission for Europe, 1993.

Environmental analysis: Variousforms of environmental analysiscan be used to identify thepotential environmental impactsof a project. In cases where theenvironmental impact is likely tobe significant due to the size andtype of the project, a fullEnvironmental Impact Assessmentcan be undertaken. Methodologiesare explored in Chapter 13 underEnvironmental Procedures.

Environmental economicvaluation: The three mainapproaches to valuingenvironmental impacts are: usingmarket prices for the physicaleffects of environmental change

on production; the use of statedpreferences (what people say theirenvironmental values are); variouskinds of revealed preferences(inferences drawn from peoples’actual behaviour). (See Chapter 13,Environmental economic valuation.)

Environmental sanitation:Environmental sanitation aims toachieve safe, non-polluting humanwaste disposal in rural and urbanareas, recognising that the natureof sanitation systems hasimportant implications for thequality and safety of theenvironment as a whole. In manycrowded areas where wastedisposal presents a health andconvenience problem ofsignificant proportions, sewerageis impracticable for cost reasons;its heavy use of water for flushingand the level of contamination itcan introduce into waterways alsorenders it undesirable and costlyfrom an environmentalperspective. Over-dependence on‘flush and discharge’ for humanwaste disposal in an era ofincreasing water scarcity has led tocalls for an ‘ecological’ approachto sanitation, in which solidwastes and liquid wastes areseparately disposed and water forflushing used sparingly if at all.The thrust of environmentalsanitation is that on-site disposalvia latrines is the preferred systemfor low-income areas. Many latrinesystems also have the advantagethat their stored waste contentscan over time be used as nutrientsfor food production; in rural areasthey can be used directly byhouseholders, and in urban areas,sold as a fertiliser product forincome-generation purposes.However, latrines – especiallycheaper models – can be poorly

constructed and insanitary, failing toconfine waste adequately to preventcontamination of surrounding soil andgroundwater and presenting a healthhazard at times of seasonal flood. Toovercome these problems and othersassociated with insufficient attention tothe environmental implications ofsanitation systems, more research isneeded both into low-cost and higher-cost technologies and into methods ofrecycling and treatment. Furtherinformation: Ecological Alternatives inSanitation, SIDA, 1997; SanitationPromotion Kit, WHO, 1997.

Gender: Since the UN Decade forWomen (1980–1990), women’s multipleroles in development have been muchmore widely appreciated. Women usedto be seen primarily as beneficiaries,especially of social services such asmaternal and child health and domesticwater supplies; today their role as actors,both in terms of their contribution tothe household and communityeconomy, and as domestic andcommunity managers, is alsoappreciated. In the past, women’sdevelopment activities were seen asseparate from the mainstream. Once itwas recognised that they are actors in alldevelopment activities, a word wasneeded which would enabledevelopment planners to take intoaccount special issues arising fromwomen’s and men’s different social ascompared to biological roles; hence theuse of ‘gender’ for this purpose. A‘gendered’ approach is one in which thedifferent roles and viewpoints of womenand men have been identified. Theimpact of any intervention on men aswell as on women has to be assessed,but the reality is that women generallyhave less access than men to land,training, education, employment,leisure opportunities, and politicalpower. Gender analysis allows planners

to identify existing disparities, with aview to helping correct them or at leastto avoid reinforcing them. (See alsoGender Analysis in Chapter13.)

Hygiene (or health) education: It isnowadays regarded as axiomatic thatpublic health benefits are unlikely to begained from basic water supply andsanitation service schemes in low-income communities unless theirinstallation is accompanied byprogrammes of hygiene or healtheducation. This is one of the criticalitems of ‘software’ in BWSS now givenemphasis alongside appropriate‘hardware’. Experience has shown that(a) a water supply may be an importantfelt need among communities, but forsurvival, convenience, and burden-reduction reasons, not for protection offamily health; (b) the germ theory ofdisease and the threat posed bypathogens are not well-understoodamong uneducated populations; (c) low-income communities frequently ignorethe need for safe waste disposal as ahealth protection measure; (d) as a resultof insanitary storage practices, lack ofhand-washing, and poor excretadisposal, water which was safe at thepoint of collection frequently becomescontaminated. Hygiene education isneeded to correct this situation. Agentsand organisations suitable for thedelivery of hygiene education includehealth department workers, sanitationofficers, NGOs, and teachers. There isextensive experience with good hygieneeducation programmes (includingschool health education) which can becalled upon. Further information: StirGently! The Way to Mix HygieneEducation with Water Supply andSanitation, IRC, 1994.

Indigenous Technical Knowledge(ITK): This term is used to describe theexisting technical knowledge in localsocieties/cultures. ITK is particularly

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important for basic water supply,sanitation and irrigation activities sinceit has been used since time immemorialin the following contexts: well-diggingand management; gravity-fed ponds;irrigation works; control of seasonalflows by terracing, diversion, dams,aqueducts, etc.; water-lifting. ITK oftenfulfils criteria of appropriateness andcost-effectiveness, and can be used as abasis for Participatory TechnologicalDevelopment (see below). However,development professionals, who mayeven develop parallel systems withoutrealising that ITK systems exist, oftenignore it. ITK is most effectivelygathered by using participatoryapproaches and observation. Localpeople often do not know that aparticular piece of local technology isunique, and they can also feelthreatened by technology from outside.It is therefore important for them tounderstand that their technology is asvalid as modern counterparts. Furtherinformation: The Centre for IndigenousKnowledge on Agriculture and RuralDevelopment, Iowa State University, USA,and The Leiden Ethno-systems andDevelopment Programme (LEAD), Instituteof Social and Cultural Studies,University of Leiden, Netherlands.

Integrated water resourcesmanagement: ‘Integrated waterresources management’ (IWRM)expresses the idea that water resourcesshould be managed in a holistic way, co-ordinating and integrating all aspectsand functions of water extraction, watercontrol and water-related servicedelivery so as to bring sustainable andequitable benefit to all those dependenton the resource. IWRM therefore takesaccount of: natural aspects of the waterresources system (surface water,groundwater, water quality); water usesin all sectors of the economy and for allpurposes, including consumptive(agriculture, industry, domestic) and

non-consumptive (ecosystems,hydropower, fisheries, recreation,navigation and flood control); theinstitutional framework formanagement of the resource; nationalobjectives and constraints (social, legal,economic, financial, environmental);and the spatial variation of resourcesand demands (upstream-downstream,basin-wide usage, inter-basin transfer).IWRM implies a concerted attempt tomoderate between competing orconflicting demands by users andstakeholders. Effective IWRM willtherefore be a dynamic and interactiveprocess involving consultation acrosssectors, a high level of communicationsactivity, and an appropriateinstitutional, legal and financialframework. The EU recognises theimportance of IWRM in its WaterResources Framework Directive.

International water law: In 1997, theUN General Assembly adopted aConvention on the Law of the Non-navigable Uses of InternationalWatercourses aimed at guiding states innegotiating agreements on specificwatercourses, and invited member statesand regional economic integrationorganisations to become parties. This isthe most recent body of internationallegislation for negotiation and conflictresolution concerning transboundarywaters. (See a fuller description ofinternational legal instruments in Chapter13.)

Knowledge, Attitude and Practice(KAP) studies: KAP studies are used toestablish existing knowledge, attitudesand practice vis à vis basic health andhygiene, including those which relate towater and sanitation. These studies maybe critical to reaching an understandingof whether underprivilegedcommunities appreciate the connectionbetween water, excreta, germs anddisease, and what existing beliefs and

behaviours need to be changed in orderfor provision of services to lead tohealth impacts. If the principal valuesattached to water are spiritual, or haveto do with temperature or taste, a newand safe source may not necessarily bevalued. KAP studies have often shownthat convenience, and savings ofwomen’s time and energy, are ratedmuch more highly than health benefits.KAP also has an influence on quantity ofwater used in the household, types ofuse, and other health-related waterbehaviours. Methodology for KAPstudies is available in the social surveyliterature. (See also Social data collection.)

Marginal cost pricing: ‘Marginal costpricing’ expresses the theory that thenet benefits of an economic activity aremaximised when prices are equal to themarginal cost of production. This isbecause prices measure consumers’marginal willingness to pay, andtherefore the value, of a commodity orservice. The marginal cost is thequantity of resources, which must beemployed to produce a single extra unitof the commodity. When price equalsmarginal cost, it indicates that the costof the marginal unit of production isjust equal to, and therefore justified by,the value of the extra consumption. Inthe case of water resources, the ‘cost ofproduction’ should be interpreted toinclude the impact on the environment.Damage to the environment can lowerwelfare directly (e.g. through reducedamenity), or indirectly, through theneed to spend more on water treatment.Also, any current use must reduce theamount of water available for use infuture periods. This would apply to anystore of water, such as an aquifer or lake,being used in excess of its recharge rate.Continued exploitation must at sometime lead to exhaustion. Hence, currentuse of the resource has an opportunitycost which is the cost of use foregone inthe future. Various formulae exist onwhich marginal cost pricing policies can

be based, which take into account theindivisibilities, which are a feature ofwater resources, investment. Furtherinformation: Pricing of Water Services.OECD, 1987.

Metering: Systems of metering forcalculating water consumption, andthereby charges owed by the customerper unit of water consumed, are neededin cases where charges or tariffs forwater are not set at a flat rate per user.However, it is important to recognisethat metering is expensive to install andoperate efficiently, and that users arelikely to reduce their usage, so that itmay not be economic – howeverapparently desirable – to install ametering system. Any decision to installmetering will have to take many factorsinto account: the value andscarcity/abundance of water; the cost ofinstalling meters, maintaining theirsecurity, staffing their inspection, billingcustomers, etc.; possible customerreactions; the desirability andpracticalities of introducing a two-tierpayment system, whereby above acertain level, price per unit increases,thus helping reduce waste and increaserevenues. Most OECD countries, and agrowing number of other countries, usemetering for urban domestic waterconsumption. (See also Tariff structures.)

Monitoring Indicators: Monitoring isthe systematic and continuousobservation of actual events, and theircomparison with the planned situationor outcome. Monitoring is necessaryboth to check the actual projectperformance on an ongoing basis, andto measure whether it has achieved theobjectives it was designed for. In orderfor monitoring to be undertaken,indicators are needed about which datacan be collected on a regular basis. Theselection of useful indicators is critical tothe quality of data collected. (See alsoChapter 13, Monitoring Indicators.)

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Non-governmental organisations(NGOs): This term is used to describemany sorts of organisations, whose onlycommon characteristic is that they areseparate from government, if not fromits regulatory control. They are mainlyvoluntary agencies, charitable bodies,educational institutions, community-based interest groups and associations(professional, local, gender, etc.). Thusthey are regarded as organisedexpressions of civil society, and are oftensuitable channels for developmentactivity and funds. International NGOshave traditionally worked through localand indigenous NGOs as operationalpartners. The range of NGOs and theirtechnical and managerial capacity isvery wide. Many are primarily active inrural areas; some in low-income urbanareas; some concentrate on projectactivity whereas others specialise inadvocacy and awareness raising. Inrecent years, strengthening the capacityof local NGOs has been seen as a meansof fostering development and theinstitutions of civil society, which has adevelopmental purpose in itself. In somecountries, where government serviceinfrastructures are underdeveloped,NGOs have become an alternative oradditional conduit to government fordevelopment co-operation funds fromgovernmental and multilateral donors.Their role has accordingly been givengreater recognition, and has at the sametime come under greater scrutiny andregulation by recipient governments. Asfar as water-related activity is concerned,they are most likely to act as partnerswith local authorities in the context ofBWSS. Their focus on the poor, and theiremphasis on participation, favours theirinvolvement at community level. (Seealso Decentralised co-operation andChapter 14.)

Participation: Although the concept of‘popular participation in development’is far from new, realisation has grownduring the recent past that

‘participation’ must be organised in sucha way that it leads to popularinvolvement in decision-making, notsimply in making voluntarycontributions of time, effort or payment.Thus, today, participation is understoodto mean a process by which peopleshare in decisions relating to policiesand actions undertaken by formalbodies on their behalf, and by whichthey accept responsibility for thosedecisions. A participatory approach isoften one which leads to projectbeneficiaries becoming actors ormanagers within a service deliveryscheme: in BWSS, as handpumpcaretakers, for example, or as latrinemanufacturers and installers. Basicservices schemes usually include theestablishment of local WaterCommittees, with responsibilities forcommunity involvement andcontributions. A local community-basedworker, voluntary or modestly paid,frequently acts as go-between betweenservice providers and consumers as astrategy for fostering participation (seealso Basic Services). From the perspectiveof senior project managers andgovernment agencies, the benefits ofparticipation are that stakeholders havea sense of ownership of the project, aremotivated to take an active part inproject activities, and theircontributions may keep cost low andensure services are wanted, usedproperly and maintained. Theparticipation by women as well as menat all levels is regarded as essential. (Seealso Gender, Participatory Appraisal andStakeholders.)

Participatory Appraisal: Participatoryappraisal (often known as PRA becauseits origins were in rural appraisal) is aprocess of gathering information inwhich people are involved in thecollection of information about theirown communities. This allows them tobecome actively involved in theanalytical process concerning actual or

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proposed interventions, mobilisingstakeholders and collectively identifyingand prioritising, problems and actionsto resolve them. Typically the methodrelies on verbal communication andoften incorporates techniques such asstructured interviews, focus groups, andmapping. (See Chapter 13 for a descriptionof methodologies.)

Participatory Irrigation Management(PIM): Participatory irrigationmanagement denotes a system ofmanaging irrigation schemes whichinvolves users in all aspects of theirdevelopment and operation. Theprinciple of participation in irrigationwas introduced in the recognition thatscheme design and management wasnot sufficiently responsive to localconditions and needs. Other morepragmatic incentives include the poorperformance of many public sectoragencies and the drive to reducegovernment expenditure on operationand maintenance. (See Chapter 13 for afuller account of different approaches toPIM.)

Participatory TechnologyDevelopment (PTD): PTD focuses ontechnology development appropriate tothe needs, interests and skills of theusers, usually starting from technologywith which they are already familiar andcompetent. The purpose of PTD is toenable users to maintain a sense ofcontrol and ownership of technology, toprovide them with information aboutthe options available to them and theknowledge to assess alternatives. PTDutilises indigenous knowledge – thelocal knowledge that is unique to agiven culture or society. Indigenousknowledge has a value in its own right,enjoys high credibility locally, is notdependent on a high level of education,and has its own channels ofdissemination. By taking time and effortto document local knowledge, itbecomes accessible to those trying to

introduce change. A relationship basedon understanding and respect helps toestablish a sound basis for participatoryapproaches.

Policy Review: A Water Policy Reviewis likely to be an important part of thePCM programming phase. In manycountries, no existing machinery existsfor a Policy Review at the national level;the task may therefore have to beundertaken by consultants, whose briefmight include the setting up of a systemwhich can subsequently be used in-country. The Policy Review should assessexisting policy, its objectives, the statusof water resources, the capacity andeffectiveness of institutionalmechanisms involved in theirmanagement and deployment, andpotential sources of investment; and itshould generate a matrix of problemsand critical issues, including potential oractual conflicts between different waterusers. The review is likely to producenew goals and policies on which adetailed strategy can be based. Thisstrategy, for application at national andsub-national levels, should be developedin tandem with any new policy to makesure that policy decisions are realistic.Further information: Water Sector PolicyReview and Strategy Formulation, FAO,1995.

‘Polluter pays’ principle: The ‘PolluterPays’ principle is based on an economicapproach to pollution control designedto ensure that the polluter bears the costof the pollution damage and/or thecosts incurred in controlling thepollution – otherwise known as theabatement costs. The OECD describes itas ‘the principle to be used for allocatingcosts of pollution prevention andcontrol measures to encourage rationaluse of scarce environmental resourcesand to avoid distortions in internationaltrade and investment’. Accordingly, ‘thepolluter should bear the expenses ofcarrying out the above mentioned

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measures decided by public authoritiesto ensure that the environment is in anacceptable state. In other words, thecosts of these measures should bereflected in the cost of goods andservices, which cause pollution inproduction and/or consumption.’

Private sector participation: Theparticipation of the private sector indelivery of water supplies, irrigation andwastewater services has attracted muchattention as a solution to systemicproblems of service delivery. The basisfor its advocacy is the recognition thatprivate commercial companies tend tooperate services with greater efficiencyand less waste than government-runutilities, while managing to recover theircosts. The level of development and thesuitability of private sector institutionsin different settings will stronglyinfluence the form of public-privatepartnerships. Options are wide-ranging,from minimum private sectorinvolvement, which could consist ofcontracting out the management ofcertain major installations; to fulldivestiture to autonomous watercompanies of responsibility for capitalinvestment, operations, and commercialrisk. (See Chapter 13, Public-privatepartnerships.)

Ramsar Convention: The Conventionon Wetlands, adopted in Ramsar, Iran,in 1971 and since known as the RamsarConvention, came into force in 1975. Itwas the first of the modern globalintergovernmental treaties designed toprotect the environment and preservenatural resources. The Convention’smission, which was re-stated in 1996, isthe conservation and the wise use ofwetlands by national and internationalco-operation as a means of achievingsustainable development throughoutthe world. As of January 1998, 106 stateshad become Contracting Parties.Membership in the Ramsar Convention

entails an endorsement of the principlesthat the Convention represents,facilitating the development of nationalpolicies and actions, includinglegislation, to make best possible use oftheir wetland resources. ContractingParties are committed to designating atleast one site meeting Ramsar criteria forinclusion on the list of wetlands ofinternational importance; includingwetland conservation within nationalland-use planning; establishing naturereserves; and consulting with otherparties about the implementation of theConvention, especially with regard totransboundary wetlands. Theadministration of the Convention isentrusted to a secretariat at the IUCN –the World Conservation Union inSwitzerland.

Regulatory systems: Regulatory systemsare needed to monitor and enforceestablished laws, agreements, rules andstandards (see also Water laws andlegislation). These cover such matters asthe administration of water rights andallocations; standards of service; waterquality; environmental protection; andprices and tariffs charged by regulatedutilities. In many countries theregulatory functions are inadequatelyperformed and spread inconsistentlybetween agencies; this is an increasinglyserious deficiency where service deliveryor operational functions are beingdecentralised or devolved to the privatesector. Too often, regulatory bodies areestablished, but the resources, humanand financial, are not made available topermit effectiveness. They need to beable to: develop data collectionstrategies; define regulatory policy andenforcement measures; definemethodologies for monitoring; takeeffective action on breaches ofstandards; and act as arbitrator inconflicts of interest. Legislation isneeded to ensure that regulations are co-

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ordinated and enforced. Furtherinformation: Water ResourcesManagement: A World Bank PolicyPaper, World Bank, 1993.

Re-use and recycling of water:Freshwater scarcity is now a major issuein many areas of the world. Additionalsources of water are therefore required –especially for agriculture, which is amajor water user. The re-use or recyclingof drainage water, wastewater, brackishwater or polluted groundwater can beeconomically and environmentallybeneficial and practicable in manysettings. However, these water sourcesrequire careful management. The twomain re-use techniques are: blending(normally for drainage water) whichinvolves the mixing of marginal qualitywater with good quality water to reducethe concentration of pollutants; andtreatment which involves either high-cost treatment works or low-cost robustsystems such as constructed wetlands,soil aquifer systems or stabilisationponds to remove pathogens andundesirable trace elements. Stabilisationponds can achieve water of goodenough quality to use for unrestrictedirrigation based on WHO (1973)Guidelines. The re-use of drainage waterfor irrigation is already extensivelypractised in Egypt, Pakistan and USA.The re-use or recycling of water fordomestic purposes will increase as low-cost techniques for treating waterbecome more widespread. Furtherinformation: The safe use of marginalquality water in agriculture: a guide forthe water resource planner, HRWallingford, 1997. Water quality foragriculture, FAO, 1989.

River Basin Organisations (RBOs): Theriver basin as a planning andmanagement unit for water resourceshas been seen as a means of developing

an integrated approach. Its closedgeographic boundary system permitsvarious sectors and users in a basin towork together: agriculture, floodcontrol, industry, settlements,communities, etc. Since these water usesfall under the aegis of differentadministrative departments, a survey isneeded to identify those present in thebasin, their various roles and capacities,and how they will inter-relate, before anRBO can be established. RBOs haveproved their worth in the followingareas: watershed management includingerosion control; data collection andstorage for surface water flows; land-useplanning and flood risk prevention; thefacilitation of demand managementdecisions based on a comprehensiveunderstanding of the uses of water andtheir relative values within the basin; co-ordination between the various sectoralauthorities present in the basin and withstakeholders. Shortcomings include thefact that hydraulic boundaries do notmatch aquifer boundaries and watertable over-exploitation and pollution ofgroundwater can easily be neglected. Tobe effective, an RBO should have its owncapacity to manage and regulate waterresources and also to invest in studies,monitoring and research; it thereforeneeds an adequate budget. (See alsoTransboundary waters.)

Social data collection: This term is self-explanatory; the recent past has seen agrowing emphasis on social datacollection given that many developmentprojects have failed because they havebeen ‘rejected’ or simply not perceivedas beneficial and therefore ignored bythose they were intended to benefit.Social data is likely to fall within thefollowing parameters: before and afteran intervention; over time; comparinglike with like; measuring increase ordecrease. Methods of collecting data

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which reflect the real needs andattitudes of local people includeparticipatory rural appraisal (PRA) (seeabove), rapid rural appraisal (RRA), andKnowledge Attitude and Practice (KAP)studies (see above). All these are coveredin the literature on social surveymethodology.

Social Impact Assessment (SIA): SocialImpact Assessment is a method offinding out how a community or set ofcommunities are likely to experience theintended outcomes of a project; andwhether these are likely to affect theirlives in such a way that they will rejectthe project, experience it eithernegatively or positively, and what levelof ownership and responsibility for itcan be anticipated. (See Chapter 13 for afuller description.)

Stakeholders: A stakeholder is a personor a group of people who have a directinterest in the project because itsexistence will materially affect theirlives. The interests of stakeholders willbe established by dialogue with them, aswill their attitudes and reactions to theproject and the demands it may makeupon them, and they are thereforecrucial to the participation process. Theidentification of stakeholders throughstakeholder analysis at an early stage istherefore essential (see Chapter 13 for afuller description). Stakeholders mayinclude: project beneficiaries; localpeople who are not beneficiaries; NGOs;community-based organisations such aswomen’s groups; governmentdepartments and agencies; privateproducers and entrepreneurs; farmers’associations; fishermen; local artisans;industry; trades unions; professionalassociations (e.g. engineers); donors;consultants; councillors and otherpolitical representatives. It is importantto include minority groups, low status

groups and the poorer groups in society.Stakeholder analysis is also used toassess the relationships between theproject and all the actors. It can then beused as a basis for designing approachesto build on those relationships, wherethey are positive, or improve themwhere they are negative.

Social mobilisation: Socialmobilisation is the term used to describea planned effort to mobilise populationgroups, community and political leadersand other stakeholders behind a set ofprogramme objectives and activities. Asocial mobilisation campaign couldinclude a National Day (for example, forSanitation) launched by the President ora top political leader. Groups withinsociety, including NGOs, localadministrators, schools, andgovernment departments can be invitedto undertake special activities up to andon the Day, and efforts made to ensuremaximum media coverage. Socialmobilisation can be a means ofexpanding communications channelsand putting across messages aboutpublic health or environmentalprotection to a wide range of audiences.(See also Communications techniques.)

Subsidiarity principle: The principle ofsubsidiarity has been recognised as aninternationally agreed principlegoverning water-related activity. Asexpressed in the Institutional andmanagement principles in Chapter 2 ofthese Guidelines: ‘Responsibilities forwater-related services and resourcemanagement need to be decentralised tothe lowest appropriate administrativelevel according to the concept ofsubsidiarity.’ The intent of this principleis to discourage the perpetuation ofcentralised and hierarchical commandstructures in authorities responsible forwater resource management. This type

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of structure, while seen as disciplinedand managerially accountable, tends todisallow participation by stakeholders inservice delivery decision-making distantfrom the centre. However, the ‘lowestappropriate administrative level’ shouldnot be a level without the resources,clout, or technical expertise to takeinformed and effective decisions.Subsidiarity must not be allowed tomean abandonment of responsibility,but rather encourage the mobilisation ofresources and inputs at all levels, andcapacity building to allow greaterdecentralisation of decision making on aprogressive basis.

Tariffs: Tariffs or charges raise revenuesfor water services and are necessary forthe operation and development of watersupply and wastewater services. Theyalso help to underline to users thatwater is a valuable resource. The mostcommon kind of water charge is a flat-rate charge based on property values.The flat-rate charge has the benefits ofcertainty over the level of revenue andease of administration and collection. Itsmajor disadvantage is that charges arenot related to the actual level ofconsumption. Thus this kind of chargecannot serve any economic purpose.Once the annual charge is paid, waterbecomes free, hence users have noincentive to restrain their consumption.The alternative to flat rate charges isvolumetric charges, which varyaccording to the amount of waterconsumed (see also Metering). Mostvolumetric tariffs are of the two-partkind, with both fixed and varyingelements. Some systems entitle the userto a free allowance of water for basichousehold needs, before volumetriccharges begin to apply. Seasonal tariffsimpose surcharges on water consumedat times of the year when it is scarcerand more costly to supply. Inemergencies, such as drought, watermay be rationed, or certain uses to be

prohibited. Different systems of tariffsare needed for irrigation; industrialwater usage; and for waste andwastewater removal and treatment whenthis is not automatically coupled towater supply. Further information: Pricingof Water Services, OECD, 1987.

Tariff structures: The criteria for fixingthe structure of tariffs are as follows: (1)The financial yield should enable theprovider to cover the full costs ofoperating and maintaining water supply(and wastewater) services and meetcapital costs where possible. (2) Thetariff should reflect the cost of supplyingeach unit of water to the consumer, sothat costs and benefits of the water canbe equalised at the margin to ensure an‘efficient’ allocation of resources. Thetariff should also signal the relative costsof providing water to different classes ofconsumer, at different times and indifferent locations, so that uses with lesssocial importance are charged at higherlevels than those with more. (3) Thetariff system should be seen to be ‘fair’.It must bear some relationship to abilityto pay – poor consumers should receivespecial consideration. But fairness alsoimplies some link between paymentsand the amount of water consumed. (4)It is in the public interest that everyurban household should use enoughwater for personal hygiene, foodwashing and preparation, and for toilets.Thus there are important public healthreasons to ensure that services are usedand the tariff should not discourage thisconsumption. However, nor should itencourage waste. (5) The tariff shouldattempt to internalise theenvironmental costs entailed in watersupply, treatment and disposal. (6) Thecharging system should be easy for thecustomer to understand and for theauthorities to defend. It should not

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impose heavy administrative costs norkeep changing. This criterion is likely torun counter to some of the others listedabove.

Transboundary waters: The waters of anumber of major rivers are sharedbetween two or more countries in thedeveloping world. In some cases,notably in the Indian sub-continent, thegeographical basin includes not onlymore than one single national territory,but several autonomous states withinone of the countries. Although the ideaof the international river basinorganisations (RBOs) enjoys the supportof international organisations,particularly UN bodies, it has so far beengreeted with only modest success. This isnot surprising since a high degree ofcommon purpose is required to reachagreement over the sharing of the watersof large international rivers. However,since this is a potential cause of conflict,notably in the Middle East, efforts tobring the various countries and statestogether to plan water resourcesdevelopment on a mutually agreed basisclearly need to be emphasised. Anorganisation – the InternationalNetwork of River Basin Organisations(INBO) – exists to promote suchmechanisms, which can become acatalyst for inter-state co-operation. (Seealso River Basin Organisations, andChapter 13, National and InternationalWater Law.)

Virtual water: ‘Virtual water’ is the non-evident water embedded in waterintensive commodities such as foodcrops. A tonne of wheat, for example,requires 1,000 tonnes of water over 100-150 days in order to reach maturity.‘Virtual water’, if factored into thenational water balance sheet, can be themost economically significant form ofwater in water-short (arid) countries.Rather than use valuable supplies offreshwater for producing crops such as

wheat (whose price in real terms hasbeen falling over time), a country can,by importing food, effectively importwater. Thus, integrating ‘virtual water’into economic and environmentalassessments of the agricultural resourcebase may permit the reduction of waterdeficits. Around 95 million tonnes ofwheat entered world trade in the mid-1990s, reflecting a ‘water-trade’ of atleast 95 cubic kilometres of ‘virtualwater’ annually. The Middle East andNorth Africa economies imported about40 cubic kilometres of ‘virtual water’annually in cereals in the mid-1990s.Further information: Water Policy:allocation and management inpractice, E & FN Spon/Chapman andHall, 1996.

Water-borne diseases: The term ‘water-borne disease’ is often used loosely, todescribe all diseases carried by water.Strictly, water-borne diseases are those inwhich the infectious agent is itselfcarried by water: diarrhoeal diseasesincluding typhoid, cholera anddysentery; and infectious hepatitis.Other diseases are water-washed: skindiseases such as yaws, scabies, leprosy;eye diseases such as trachoma; or water-related, in which case the disease isspread via an organism living in water,such as schistosomiasis (via snails) andguinea-worm; they may be insectrelated, in which case they are spread byan insect that breeds in water or bitesnear it, such as sleeping sickness (tsetsefly), malaria and yellow fever(mosquito), river blindness (blackfly).Other diseases are spread by poorsanitation; pathogens in human excretaremain exposed or are washed intowaterways. These include all diarrhoealdiseases and parasites such as hookwormand roundworm. Many factors in basicwater supplies and sanitation projectsand irrigation schemes need to takedisease control into account. Furtherinformation, consult WHO and UNICEF;

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also Guidelines for Forecasting theVector-borne Disease Implications ofWater Resources Development, WHO,1991.

Water laws and legislation: Laws andregulations provide the frameworkwithin which water-related policies areput into effect. However, in manydeveloping countries capacity shortfallsmean that it is difficult to enforceelaborate legislation, so that lawsrelating to water need to take this intoaccount. Among their key purposes areprotection of public health, protectionof natural resources, and prevention ofunfair pricing. Legal instrumentsprovide the mechanism for translatingpolicy into practical implementation.Rules, regulations and standards providethe authority for management andenforcement agencies. They facilitatecross-sectoral actions, providemechanisms for conflict recognition andresolution of competing interests.Effective regulatory systems areparticularly essential for decentralisedmanagement, where standards may slipand irregularities occur. The major issuesin framing water legislation includeownership of the resource, rights ofusage and authority to regulate. Waterlaw is also closely linked to land use inmany countries. (See also Regulation andWater ownership; and Chapter 13.) Furtherinformation: Water ResourcesInstitutions, World Bank, 1992.

Water Markets: The aim of watermarkets is to encourage existing watersupplies to be used more efficiently, byallowing users to sell their water rightsto other consumers. Water markets tendto be preferred by farmers to volumetriccharges for irrigation water. All water,not just that which is surplus to thefarmer’s use, becomes potentiallymarketable, and farmers have anincentive to drop low-value applicationsif they can earn more by selling it

(‘water farming’). Water markets haveother advantages: (1) They recognisetraditional water rights, capitalised inthe value of land. Farmers become alliesin the transfer of water to other users.(2) They remove the need for largefinancial subsidies for building andoperating irrigation systems, whichusually benefit wealthier farmers. (3)They offer flexibility in responding tochanges in crop prices and water values.The development of efficient watermarkets depends on a number ofconditions, including the ability of theseller to establish ownership over theresource at law, which means thatcustomary rights may be insufficient asa basis for a deal. In addition, formarkets to operate in the public interest,the interests of third parties includingenvironmental interests and those ofpopulations living downstream of anylarge transfer need to be considered.Further information (this mainly relates toAustralia and New Zealand whereconsiderable work has been done on watermarkets): Water allocations andentitlements: a national framework forthe implementation of property rightsin water, COAG, 1995.

Water ownership: It is important todistinguish between ownership of water,and the right to have access to waterand use it. Regulation of the resourcecan only arise out of an authority,explicit or implicit, that the governmenthas the right to manage the resource inthe public good. Most governmentsexpressly own water, and the protectionof the resource is therefore a publicfunction to which individual rights aresubservient. The right to use water isbased either on customary or statutoryclaims. In order to be regulated, thesemust be clearly identified. Customaryrights may include the right toexpropriate, use or trade water, onwhich can be built systems ofcommunity ownership or use and water

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charges. While building upon existingsystems is often the surest and mostacceptable route to implementation,systems based only on customary rightsmay not be able to assure efficient andequitable allocation of a scarce resource.A system of water law needs not onlymechanisms of ensuring access to water(water rights) but also a system ofobligations regarding usage and controlof the levying of water charges byindividuals (restriction of rights).

Water quality standards: Whetherwater quality is satisfactory will dependon its intended use (e.g. drinking, otherdomestic usage such as bathing,irrigation, industrial use). Factors such asscarcity will also affect the qualitystandards applied. Setting thesestandards, which should be enshrined inlaw, is the responsibility of thegovernment regulatory authorityregarding water in the country or stateconcerned; WHO has issuedinternational guidelines to facilitate thisprocess although they can bedemanding. Some variables are criticalto human health and should be checkedwhatever the level of service; forexample, for drinking water, E. coli andtotal coliform bacteria should not bedetectable in any 100 ml sample.However, the high level of public healthimportance placed on water quality inmunicipal water and wastewater servicesmay not be appropriate for basic watersupply services. Studies have shown thatwater quantity often plays a moresignificant role than water quality inimproving health and reducingmorbidity from water-related disease inlow-income communities. The time,energy and difficulty of water-haulingmeans that, typically, very little water isused in the household for any purpose,and this coupled with inadequate meansof excreta disposal has a greater impacton health than lack of safe water. Inaddition, water often becomes

contaminated between the source ofsupply and its use (see Hygiene education,above). Thus, obtaining high standardsof water quality in basic servicesschemes may be less important thanmaking available a high volume percapita at a close distance to the home.Measuring water quality is a technicalprocedure; laboratories and suitableequipment will be needed. Furtherinformation: WHO, Guidelines fordrinking water quality, 1993.

Water User Associations: Water UserAssociations normally comprise aformal, usually legally-bound, group offarmers (or water users), often groupedaround a particular canal or borehole,with responsibility for managing andmaintaining the part of the system thatserves them. These Associations havecome into existence as a result ofgovernmental determination, often withdonor support, to devolve some of theresponsibility for the management andmaintenance of irrigation (or domesticwater and wastewater) services fromcentral government onto users.Motivated by the search for efficiencyand cost-savings, the creation of WaterUser Associations can be seen as a formof privatisation, with the governmentagency adopting the role of serviceprovider rather than operator. WaterUser Associations can also be seen as ameans of community participation andcommunity ownership of services. Thedegree of responsibility for the serviceand its maintenance varies from onemodel to another. In principle, theircreation should lead to greater usercommitment and reduced governmentintervention. To date, success with thisapproach towards devolution of serviceshas varied considerably. Furtherinformation: User Organisations forSustainable Water Services, World Bank,1997. Impacts of IrrigationManagement Transfer: A review of theEvidence, IIMI, 1997.

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Willingness-to-pay (WTP) surveys: Inrecent years the planning of waterservices has been greatly assisted by thespread of market surveys of potentialusers. These surveys aim to uncoverusers’ preferences for the proposedservice, and what they would be willingto pay for it (hence the name,willingness-to-pay, or WTP surveys).These surveys provide a variety ofinformation about householders’current sources of water; the volume ofwater used for different purposes; their

preferences about the proposed service;what they are now paying for water, andwhat they would be prepared to pay fora specified improvement; and whetherthey would connect up to a new supplysource. These surveys are equallyapplicable for sanitation and sewerage.(For a fuller description see Chapter 13).

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13Chapter

Programme and project aids

Contents

1 Stakeholder Analysis 2292 Capacity building 2323 National and International Water Law 2364 Public-private partnerships (PPP) 2415 Monitoring Indicators 2476 Participatory (Rural) Appraisal (PRA) 2517 Participatory Irrigation Management (PIM) 2538 Social Impact Assessment (SIA) 2559 Gender Analysis 258

10 Willingness-to-pay surveys 26111 Financial and Economic Analysis 26412 Estimating benefits from water resources investments 26713 Environmental procedures 26914 Environmental economic valuation 274

13The aids toprogramming andprojectdevelopment arecomplementary tothe checklists andmainly consist ofstudies andmethodologies tobe used to build upthe knowledge baseat different stagesof the project cycle.

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Programme andproject aids

Introduction

The following aids to programming and project development are suppliedas complementary material to the checklists. They mainly consist ofdifferent types of studies and methodologies to be used to build up theinformation and knowledge base at different stages of the project cycle.Brief definitions of these aids appear in Chapter 12, the Glossary of keyconcepts.

The aim in this chapter has been to provide a reasonably fulldescription of the aid in question. However, if – for example – aStakeholder Analysis is thought desirable, it will probably be necessary touse consultants from a local organisation or institute with the relevantexperience to carry it out. The information provided here is not ascomplete as it would be in a manual, and is not usually sufficient on itsown. It aims to give programme managers and officers an indication ofwhether a particular exercise ought to be undertaken, and what its broadparameters would consist of and produce.

I. Stakeholder Analysis

The purpose of stakeholder analysis is to identify the various stakeholderswho might have an interest in a potential project, either because they livein its neighbourhood and might be affected by its construction, orbecause they are in some way party to the project (government agencies,construction companies, local administrative bodies, citizen groups andNGOs, shareholders, landowners, etc.).

Stakeholder analysis is used not only to identify all the actors in theproject environment but to assess the relationships between the projectand those actors. It can then be used as a basis for designing approachesto build on those relationships, where they are positive, or improve themwhere they are negative. For example, complementary or supportingactions can be described, and areas of potential conflict between theproject and the stakeholders can be addressed.

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Stakeholder analysis is particularly useful in developing participatoryapproaches in a project, since it helps to identify those who mightparticipate. However, not all stakeholders will have a ‘participatory’relationship with the project.

The outcome of the stakeholder analysis will provide information onthe project’s risks and assumptions.

Different types of stakeholders

Stakeholders may be differentiated in a number of ways. A commonmethod is to distinguish between:

Primary stakeholdersThis category comprises those whose main livelihood or interest is relatedto the project in some way. This would include, but not be limited to, theintended project beneficiaries.

Secondary stakeholdersThose whose interests are related to the project but in a less immediate ordirect way than for the primary stakeholders, for example suppliers ofproject inputs.

Key stakeholdersKey stakeholders are those who have the capacity to influence the projectoutcomes, but who are not themselves directly affected by it, for examplelegislators and officials.

Steps in a stakeholder analysis

Stakeholder analysis is not a formal methodology, and a variety ofinformal approaches can be successfully used. However, many sources arein general agreement on a process which contains the following mainsteps:

Step 1Draw up a stakeholder table, listing all the project stakeholders, anddefining:● Whether they are primary, secondary or key stakeholders;● The nature of their stake or interest;● The basis on which they hold this stake (e.g. customary rights,

ownership, administrative or legal responsibilities, intellectual rights,social obligations etc.);

● Whether the relationship with the project is positive or negative.

Remember that a stakeholder may have more than one stake in aparticular project.

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Step 2Assess the relationship between each stakeholder and the project on thebasis of their influence and importance.

Influence defines the significance of the stakeholder’s potential actionsin affecting project implementation. For example, landowners have greatinfluence on a project which requires land.

Importance defines how critical the stakeholder is to the success of theproject. The intended beneficiaries form a very important stakeholdergroup, but there may be others.

The assessment can be done on an ordinal scale of 1 (very lowinfluence and importance) to 5 (very high importance or influence). Therelative influence and importance of all stakeholders can then be shownon a two-dimensional matrix.

Step 3Assess appropriate actions in relation to all stakeholders. Some sourcessuggest a range of actions from control (the project is in a position ofauthority in relation to the stakeholder), through information (the projectinforms the stakeholder), consultation (a two-way dialogue between theproject and the stakeholder) to partnership (based on genuineparticipation of the stakeholders in the project).

Who should carry out stakeholder analysis, and when should it be done?

A variety of approaches are possible. Initially the project team will beresponsible for the stakeholder analysis, but in particular circumstances itmay be appropriate to involve some of the stakeholders themselves in theprocess. Stakeholder analysis should be undertaken first at projectidentification stage. If a logical framework is prepared, the stakeholderanalysis will provide information for it. The stakeholder analysis shouldbe repeated and refined as the project continues.

Further information: Technical Note on Enhancing StakeholderParticipation in Aid Activities, (including a guidance note on how to doStakeholder Analysis). DIFD, UK, 1995.

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2. Capacity building

Introduction

Capacity building should be a long-term, continuous process, involvingthe application of a number of very specific techniques to strengthen theperformance of the sector in question and also the sector supportingorganisations. Capacity building should include utilisation of existingskills, since organisations frequently under-utilise the skills they have.

The concept of capacity building has been current since the UN WaterConference at Mar del Plata in 1977, and its importance has subsequentlybeen reiterated in a number of international fora. Capacity building isamong the seven areas for action within national water strategiesidentified by the UN Secretary-General for the 1990s, with the followingaims:● To enhance the capacity for the development and management of water-

related programmes, and to strengthen institutions and develop humanresources at all levels;

● The provision of adequate human resources, with skills appropriate to manyscientific, technical, managerial and administrative functions required forthe assessment, development, conservation and management of waterresources.

An international post-Water Decade Conference in New Delhi in 1990identified four guiding principles, of which two related to capacitybuilding: ● Strong institutions are essential for sustainable development;● Capacity building is necessary to make community management effective.

Most recently, the World Food Summit, Rome, 1996, touched uponaspects of capacity building in its conclusions:● The implications of neglecting food security can be serious, and investment

in water infrastructure, continued reform of supporting institutions, and anenabling environment are necessary to improve food production.

● In many African countries, security and stability in food supplies in thenext century will be closely linked to success in irrigation, and in themanagement of river basins including those which cross national borders.

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The Delft Declaration (IHE/UNDP, 1991) suggested that capacity-buildingshould improve the quality of decision making, sector efficiency andmanagerial performance in the planning and implementation ofprogrammes and projects, and should be aimed at three levels: sectoral,institutional and individual. It identified the three basic elements ofcapacity building as:● Creating an enabling environment with appropriate policy and legal

frameworks;● Institutional development, including community participation;● Human resources development and strengthening of managerial systems.

The commonly mentioned tools for capacity building include:● Development of tools for monitoring, analysis and management of data; ● Development of human resources, enhancement of skills, and adoption of

up-to–date thinking; ● Reform of structures and systems;● Improvement of the knowledge base. ● Capacity building is necessary at all levels in developing countries, but is

becoming increasingly important at the local government and communitylevel, as responsibility is devolved to the lowest appropriate level.

Methods

Many methods of capacity building are available, suited to differentcountries and circumstances. Therefore an essential pre-requisite ofcapacity building in any area is an accurate assessment of the existingsituation which can be achieved by undertaking social surveys of theareas concerned and assessment training needs.

Institutional development

Capacity building can also be defined as the development of institutions,their managerial systems and their human resources. Studies thereforeneed to be undertaken to identify where there are weaknesses and howinstitutional, legal, regulatory and other constraints can be removed, andalso how communities can benefit from institutional strengthening.Methods include: ● Review of work procedures, levels of community participation, and

the weaknesses and strengths of institutions;● Twinning between developing country and developed country

institutions, similar sector agencies and universities, which will helpin the provision of up-to-date material and information;

● Introduction of reasonable salary scales, incentives and careerdevelopment opportunities. Professional and financial incentives areimportant to encourage motivation in staff and therefore promotionpathways in institutions should be understood and promotionsencouraged;

● Segmentation of responsibilities within organisations to avoidduplication and low morale.

Training

Training programmes need to be seen as an investment in individuals. Itis important to undertake a Training Needs Assessment prior to training.Training can be either provided on-the-job, or by using techniques suchas: technology transfer activities, workshops, role plays, networking,seminars and short courses. Training should identify and upgrade under-utilised skills as well as provide new skills.

Education

Education should aim to increase the understanding of the localcommunity through the development of useful skills, in conjunctionwith classroom-based learning. It should not be restricted to conventionalmethods as different types of education will be needed for differentsituations. For example, health and hygiene education (see Chapter 12) areimportant elements of water resources education. The capacity of localeducational systems to deliver is the key, and there is a strong need fordevelopment of useful skills as well as factual knowledge.

Awareness building and information management

Integral to capacity building is the dissemination of and access toinformation; this implies improving communications channels andraising awareness. Pilot schemes can be used to demonstrate good practiceto local communities and to increase their awareness of new technologies.This should not, however, be seen as a one-way process; communitiesshould also make decision-makers aware of their problems and theconstraints preventing effective water management. Informationmanagement is an integral part of any capacity-building programme andsystems need to be kept up to date to permit an easier and more effective

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flow of knowledge. A special focus is needed to ensure full communityparticipation (see Chapter 12) with special attention to the involvement ofwomen.

Provision of resources

Well-trained, educated and aware staff will need adequate resources tocarry out their responsibilities. The concept of subsidiarity (see Chapter 12)cannot be made operational unless adequate resources are available.Typical resource shortages include transport, inadequate budgets forrunning costs, computers, software and communications equipment.Capacity building without the provision of resources will be ineffective.

Many models have been created for capacity building both at theinstitutional and the individual level. However, as all countries and needsdiffer, a generic model obviously cannot be prescribed which would besuccessful in all cases.

Studies will be needed to decide what form and mix of capacitybuilding and human resource development will be the most effective inthe different countries and circumstances. Information is needed on theexisting situation through the use of surveys and assessment of futureneeds to determine the best interventions.

For example, community participation in development and operationof irrigation schemes or water supplies is important to the effectiveoperation and maintenance of services. However, problems can arise fromthe fact that in many developing countries stakeholders in positions ofauthority do not have the capacity for working with the local people.Changes are therefore needed to improve their field approach. The natureof such changes will depend on various factors, including currentbehavioural norms and authority structures, the nature of the project andthe beliefs and attitudes of users.

Further information: A Strategy for Water Sector Capacity Building,IHE/UNDP, 1991.

3. National and International Water Law

Water laws – which link water policy and water rights – have been inexistence for many years. They are needed for the implementation andenforcement of policy, and to provide effective administrative andregulatory mechanisms at appropriate levels. The importance of water lawwas emphasised in Agenda 21.

Rights to water tend to be viewed differently in different societies,leading to a variety of water laws. Laws may be needed to protect thewater rights of individuals – for example, access to a clean and adequatesupply of water for basic needs – but can also be used to restrict water useor proprietary control and to introduce new policy initiatives deemed tobe for the public good. The right to use water is a concept distinct fromthe ownership of water, and this distinction must be taken into accountin the development of water law and the management of water resources.

Water laws also need to reflect changing circumstances. Permanentprotection of historic rights will often not allow fair and efficient re-allocation of water. Priorities may also vary over time within states andregions, or depend on the level of economic development.

Water laws can take two forms: written and unwritten. Unwritten lawis ‘customary law’ which has evolved over the centuries from socialcustoms and traditions designed to govern relationships betweenindividuals. Unwritten law can also take the form of ‘common law’,where a body of precedent informs the judicial decision taken in a givendispute. Such law is not ‘passed’ or ‘enacted’ by any legislative body, butforms a group of general legal principles upon which judges rely inmaking their decisions. Written ‘statutory’ law or ‘legislation’ ispromulgated by a duly authorised law-making body.

In many countries several bodies are empowered to make legislationrelating to water. A water law establishes fundamental principles anddistributes powers relating to the management of water. As a general rule,matters which do not relate to fundamental policy, principles or rights,but which need to be governed by detailed regulations are not included inthe main water law and instead form subsidiary legislation or regulations.

The main task of any government in revising or drafting newlegislation is to make sure that it will be socially acceptable andadministratively feasible. In deciding who shall have the ultimateauthority to control and distribute water and how existing laws andcustoms should be modified, consideration needs to be given to a widevariety of political, social, economic and administrative aspects. Nationalwater laws must also take into account any International Conventions(see below) accepted by that country.

Water legislation should result from, rather than be imposed upon, the

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situation prevailing in a given country. This is especially true of a law thatdeals with fundamental issues, such as the respective rights of individualsand government in land and water, and which is thus basic to theparticular society’s structure. Preparation of water law must involvetechnical experts, for example, hydrologic, engineering and economicexperts, as well as lawyers.

The primary task of a water law is to give the Government or itsappointed agencies sufficient power to undertake various tasks relating tothe investigation, use, control, protection, management andadministration of water. At the same time the rights of individual users totake and use water should be defined and protected.

A water law, therefore has two basic functions:● It must confer certain powers for control of water and land upon the

Government, whilst preserving or granting such rights to individualusers as are consistent with the social, political, economic anddevelopmental goals of the country.

● It must establish a basic administrative framework and the necessaryinstitutions to execute the various functions assigned under the law.

The areas which should be covered by a water law, are therefore asfollows:

Rights in natural watersThese provisions should establish the relative rights, powers and duties ofindividual users, private operators and the Government over naturallyoccurring water in its various forms. It should define those sources andmatters subject to administrative control and those which are free ofadministrative intervention. Responsibilities for service provision shouldbe distinct from those relating to resource management or regulation.

Necessary powers relating to landCertain ancillary powers to undertake or control acts on land are essentialto effective water management. Action may be necessary to protect thebeds and banks of rivers and lakes, and to prevent erosion or pollution ofadjacent land.

Registration and licensing of rights to use waterIn order to formulate realistic plans for the sustainable development ofwater resources, information is needed about the availability of water.This information should cover quantity and quality, existing utilisation,and future requirements. It is therefore important to make provision forthe proper certification, protection and measurement of the variousconsumptive uses of water. Other uses such as effluent disposal also haveto be controlled.

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Administrative structureIt is necessary to designate the administrative agencies responsible fordeveloping and controlling water, to define their aims and objectives, toaward them the necessary powers and to provide for their organisation.

Other issuesWater laws should address many issues apart from water rights, including:protection of the environment, waste and misuse of water, recycling andre-use of water, health promotion and pollution control.

Example of issues relating to groundwater to include in a water law:

● Designation of areas in which the search for and extraction ofunderground water is subject to control;

● Licensing of drillers;● Obligations to recharge groundwater aquifers;● Limitation of consumption through various means, including the

installation of water meters;● Procedures and requirements in the case of water found incidentally;● Interference with mineral and oil deposits.

In zones which have been declared protected, restricted or rationed, thewater administration may choose to impose limits to water withdrawalsor diversions, prohibition of certain uses, and other limitations orobligations dictated by the public interest.

International water law

The need for effective regulation of international waters has becomeincreasingly acute as supplies from water sources shared between two ormore countries become stretched and quality deteriorates. Water can be asignificant source of conflict between neighbouring states; equally,however, as nearly half of all river basins in the world are shared, therationale for finding modalities for water-sharing and water protectionbetween riparian states is compelling. Although there is a large body oflaw on international watercourses, no universal legal principles have yetbeen agreed.

Until recently, the legal basis for most negotiation on internationalrivers has been The Helsinki Rules on the Uses of the Waters ofInternational Rivers. The Rules were formulated in 1966 by theInternational Law Association, an NGO, and the International LawCommission, a subsidiary organ of the UN General Assembly. TheHelsinki Rules embrace the concept of the international watercourse, forwhich water resources, whether passing international boundaries orentirely within one country, are treated as the common property of all

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basin states. The Rules contain two substantive principles: a prohibitionof appreciable harm by way of deprivation of water rights, pollution orother means; and the right of each basin state along an internationalwaterway to a reasonable and equitable utilisation of its waterway.

More recently, Agenda 21 set out a general statement of principles forprotecting the quality and supply of freshwater. The UN EconomicCommission for Europe established the Convention on the Protectionand Use of Transboundary Watercourses and International Lakes whichcame into force in Europe in 1996. In May 1997 the UN General Assemblyadopted the Convention on the Law of the Non-navigational Uses ofInternational Watercourses which drew on the earlier EuropeanConvention. This Convention remains open for signature by countriesuntil the year 2000 and requires 35 signatories to enter into force. Furtherinformation on the Convention can be obtained from the Office of LegalAffairs, UN, New York.

There are numerous regional agreements for specific river basins orlakes, including the Indus, Niger, Zambezi and Lake Victoria. The GlobalEnvironment Facility provides assistance for transboundary water projectsin order to protect international waters.

There are also other International Agreements of importance to waterresources management. These include those on Climate Change,Biological Diversity, Wetlands (see Ramsar Convention, in Chapter 12), andDesertification/Drylands.

The Convention on Law of Non-navigational Uses of International WatercoursesWhile the Convention represents an important step towards internationalagreement on the use of transboundary waters, many states with strongvested interests either abstained or voted against it. The maindisagreement occurs on the balance between the rights and obligations ofupstream and downstream states. Some States felt the provisions for thesettlement of disputes and regarding groundwater were unsatisfactory.

The Convention aims to ensure the promotion of optimal andsustainable utilisation of international watercourses. It states thatcountries along international watercourses shall utilise such waters in an‘equitable and reasonable manner’. This requires that all relevant factorsand circumstances be taken into account including geographic,hydrographic, hydrological, climatic, ecological and the social andeconomic needs of the states concerned. The effects of use in one stateshould take into account uses in another, as well as protection for thewhole watercourse and the costs and availability of alternatives to aplanned or existing use. The Convention requires prior notification ofmeasures that are expected to alter the watercourse, and arbitrationshould states disagree on any planned measure.

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Fundamental to preparing legal agreements between states is the needfor improved scientific understanding, information dissemination andresearch; in many countries, little is known of the hydrological or otherscientific aspects of water resources. The differing capabilities of co-riparian states for regulation and monitoring can be a hindrance toeffective agreement. The Convention recognises the need for water to betreated as an economic good and states that no water use enjoys inherentpriority over other uses unless there are agreements or customs to thecontrary.

Obtaining international agreement over watercourses is difficult butessential to equitable and sustainable use of shared waters. Doctrines suchas absolute sovereignty over water within a state (prior appropriation or afirst-come-first-served system), or its opposite (downstream users have theright to full flow of water of natural quality), are untenable. Countriesneed to adopt new principles outlined in the Convention, such as thedoctrine (sic utere) that one should not use one’s property to injureothers. The essence of this principle is that State A is entitled to exerciseits rights, but cannot ignore the interests of State B. This principle wasused to form the basis of an agreement between France and Spain on theuse of transboundary water for hydropower.

Further information: Guidelines on water and sustainable development:principles and policy options, UNESCAP, 1996. InternationalAgreements, World Bank, 1997.

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4. Public-Private Partnerships (PPP)

Inviting the participation of the private sector has recently beenrecognised as a means of making water supply and sanitation servicesmore efficient and cost-effective, while raising revenue to improve long-term sustainability and generate investment for new infrastructure.Privatisation of public water companies can release funds for otherdevelopment activities and reduce administrative burdens. Developingcountries can also benefit from the know-how of commercial companiesspecialised in public services management. The involvement of thecommercial private sector can help to underline the value of the naturalresource and – given appropriate incentives – can also encourage measuresto protect and conserve freshwater supplies.

A balanced partnership between public authorities and the privatesector requires that their respective roles be clearly defined within a legalframework. The level of development in the country including the levelof skills and capacities within the commercial sector, and the nature ofinstitutions in water-related sectors will strongly influence the form ofpublic-private partnerships. There are opportunities for the involvementof small-scale manufacturing industries and entrepreneurs in all water,irrigation and sanitation-related activities, but the involvement of theprivate commercial sector as a major partner in construction andadministration of services is particularly important for the MWWS FocusArea. This was recognised in the Capetown Declaration, adopted by 20African Ministers at the UNHCS International Consultation onPartnerships in Water for African Cities.

The two main objectives of private sector participation are: (1) toensure improved management and higher efficiency for service delivery;(2) to promote long-term viability; and (3) to acquire the capital neededfor investments. These two objectives interact. Improvements inefficiency result in cost savings that can generate investment funds, andthe incorporation of private capital creates an additional incentive forimproving operational efficiency. However, introducing marketplaceeconomics into public health engineering has implications which haveprovoked considerable controversy, especially after a long period in whichprovision of water and sanitation infrastructure have been primarilyregarded throughout the world as a public service to be provided from thepublic purse, or at least be heavily subsidised.

The key issue is how to set up institutional arrangements which allowthe commercial sector freedom to introduce marketplace efficiencieswhile guaranteeing access to services to those communities – bydefinition the poorest and least able to exercise influence politcally or inthe marketplace – who are already underserved and most at risk frompublic health hazard. In many poor urban areas, the poor already payrelatively high rates for water supplies to informal vendors and for wasteremoval to nightsoil removers. However, they are likely to remain outsidethe reach of any adequate form of engineered water or sanitation systemunless there is affirmative action on their behalf. It is unrealistic toentrust the task of meeting their requirements to the commercial private

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sector, at least within the foreseeable future. The risk of private sectorexploitation of their survival needs is very real. Thus, any set ofinstitutional arrangements between the public and private sectors needsto address this reality as a priority.

Models of public-private partnershipsThe following discussion of models mainly relates to activities within theMWWS Focus Area, but the responsibilities of municipal authorities andgovernment to address the needs of all citizens within a comprehensiveframework should not be ignored. Thus, even where a project orprogramme is not intended for a low-income area for which a BWSSscheme is more appropriate, the need to generate funds for such schemesby tariff structures which take into account the need for subsidieselsewhere, should not be ignored. The form of public-private partnershipshould, in other words, recognise the totality of needs and requirementseven if what follows mainly relates to commercial private sectorparticipation in medium- or high-technology schemes.

There are many models of public-private partnerships including thoseemployed by other utilities, for example electricity. The models rangefrom contracting out the management of certain major installations, tofull divestiture to autonomous water companies of responsibility forcapital investment, operations, and commercial risk. When consideringwhich model to use, a decision is required about the ownership ofexisting and future fixed assets: i.e. public ownership or privateownership. Under public ownership, public assets will be leased or rentedto the private sector for a periodic fee. For private ownership, public assetsare sold to a private sector utility company for a lump sum. The model ofprivate sector involvement will vary according to infrastructure andinstitutional capacity. However, full privatisation of all assets is notsuitable for most developing countries since an extremely rigorous legaland regulatory framework, with enforcement, is needed to make itworkable in the public interest.

Various models of public-private partnerships are outlined below;these can be divided into models in which assets are retained in publicownership (1–4) and those in which assets are privately owned (5–7).Appropriate models should be selected to suit local conditions.

1 Concession A private contractor or ‘concessionaire’ is responsible for the realisation ofall new capital works including their operation, maintenance andmanagement, as well as capital investments for expansion of services.Fixed assets remain the property of the government or public authority,and must be transferred to the public authority at the end of theconcession, subject to exceptions specified in the contract. Theconcessionaire is fully responsible for maintaining and operating all fixedassets and other equipment. Concessions are long term (10–30 years) andtariffs are set by the concessionaire based on full cost recovery and mayinclude a contribution to government (e.g. to cover historic debt).Financing and implementation of capital works are undertaken at theconcessionaire’s risk.

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2 Lease (Affermage) The assets are placed at the disposal of the operator for a fixed period oftime through a leasing or rental contract with the public authority owner.The operator is not responsible for capital investment for new orreplacement works, which remain the responsibility of the publicauthority, who also retains responsibility for debt service, water rates andcost recovery policies. The operator is fully responsible for maintainingand operating all fixed assets and other equipment. Leases are for amedium- to long-term period of at least seven years. Tariffs are fixed bythe operator and normally include remuneration to the operator to covermanagement costs and a contribution to the public authority towardsasset depreciation. Commercial risks associated with the operation of thewater system are carried by the operator and capital risks by the publicauthority.

3 Performance Management Contract The assets are placed at the disposal of the operator but the operator isnot responsible for capital works and carries no equity risk. Themanagement company is paid a fee to manage the operation and forroutine maintenance of equipment. The effectiveness of arrangementscan be enhanced if funding and subsidy guarantees are provided toimplement recommendations of the manager or technical consultant.Contract duration is usually for two to five years. The management feecontains a performance-based incentive element and tariffs are agreedbetween the operator and public authority. A variation of this type ofarrangement is the Management Contract which is for a shorter term (oneto three years) without a performance-based incentive and with noinvolvement by the operator in setting tariffs.

4 Service (Technical Assistance)The assets and responsibilities remain with the public authority withtechnical assistance contracted from the private sector to provide adviceon asset and capital programme management, metering, maintenance,emergency repairs, upgrading or construction of new facilities. Thecontractee provides technical or managerial advice to existing publicsector management, but has no management responsibility and noequity. The effectiveness of arrangements is enhanced if funding andsubsidy guarantees are provided to implement recommendations of themanager or technical consultant. Contracts are usually short term (one tothree years).

The following are models in which assets are privately owned:5 Joint ownershipWith joint ownership a private sector company and public authorityincorporate a firm in accordance with the normal commercial code of thecountry. A corporate agreement is required that spells out the objectivesof joint ownership, the rights and obligations of each partner, and howprofits will be shared between partners. The private partner typically hasmajority representation on the board of directors of the joint firm andprevails in its day-to-day management. Public and private expertise isbrought together to the benefit of all.

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6 Full privatisationIn this model the government sells all assets to a private sector utilitycompany. The proceeds of the sale help the public sector to raiserevenues. The attractiveness to private buyers depends mainly on therates that they would be permitted to charge since the installationsthemselves have virtually no alternative value. Good communicationsand a very strong legal framework and regulation is required. This is themodel that has been adopted by the UK.

7 BOOT (Build-Own-Operate-Transfer) Under a BOOT contract, the private partner finances, builds, operates andowns a specific new facility or system. After a predetermined period oftime, ownership of the facility is transferred to the public authority. Thereare many variations on this system, for example the reverse BOOT, wherethe public sector finances the new facility and then contracts a privatefirm to operate it over a long period of time with eventual transfer ofownership. This system encourages the private operator to maintain thefacility well because it will become the owner at some point in the future.Other variations are the BOT (Build-Operate-Transfer) in which theownership is transferred to the public sector as soon as the facility iscompleted.

The table below is a summary of the various options outlined above.

Option Ownership Financing Management

Concession Public Private Private

Lease (Affermage) Public Public Private

Management contract Public Public Private

Service (Technical Assistance) Public Public Public & private

Joint ownership Private & public Private & public Private & public

Full privatisation Private Private Private

BOOT Private then public Private Private

Risks implicit in all modelsPrivate sector involvement in public utilities in developing countriesoffers constraints from the point of view of both the government and theprivate sector company related to the political, economic and regulatoryenvironment. These combine to make any long-term programmeuncertain. In any private sector activity, investors have to be prepared totake risks; but there are also risks to the government and to users that aremultiplied in countries with weak or under-developed institutionalstructures. Some of these have already been outlined above, and relate toaccess by the poor; there are also questions surrounding the capacity ofthe private sector to meet quality standards, safeguard public health andsupport long-term environmental protection of the resource.

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Some of the common risks to investors are outlined below:

Monopoly riskWater supply is a natural monopoly and it is uneconomic to duplicate awater and sewerage network. As a consequence, competition is difficult toachieve. Thus regulation is necessary in order to protect the consumersfrom possible monopolistic behaviour of the private contractor.

Commercial risksCompanies/contractees may not be paid for services at all times, nor beable to recover costs in the long term, or unable to make a reasonableprofit. Financial risks such as currency devaluation or convertibility oflocal to foreign currency need to be taken into consideration. Revenuesare usually in local currency and some of the investments are in foreigncurrency.

Technical risksThere may be lack of sufficient knowledge about the state of existinginstallations, the need for replacement or rehabilitation, and theexpansion needs and priorities. These may result in operational risks thatthe installations will not perform as expected.

Political risksThese are associated with the reliability of payment by the government ofits water bills or subsidy payments; they could also relate to publicexpectation that services be provided at low cost and therefore companyactivities may provoke resistance and even sabotage.

Policy risks These relate to the adverse conditions that may arise due to arbitrary orad hoc changes in the regulatory, legal and economic policy framework.

It is important that all risks are evaluated and mitigated. Risks should beshared between the private and public sector and whoever can control therisk best should assume it and receive adequate compensation for doingso.

Measures to protect vulnerable groupsMeasures to protect vulnerable groups must be clearly set out in anycontract between government and private operators. Tariff structures tocover subsidies for low-income areas from low-value uses of water by well-off groups may be involved; or government may provide subsidies forcoverage to low-income areas. There may also be opportunities to linkbasic services provided and/or run by NGOs and community groups withcommercial operators.

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Contracts and regulatory activityOne of the most important factors to determine the success or failure ofprivatisation is a well-defined contract. This should state the relationshipbetween, for example, the concessionaire and the regulatory body anddefine the roles, functions and responsibilities of all the actors includingconsumers. A successful public-private partnership will maximise benefitsto consumers. It is important that consumers are informed and educatedabout the reasons for involving private operators in what is generallyperceived as a natural, public monopoly.

An effective regulatory system is necessary to facilitate financialviability of projects and services and to oversee compliance with thecontract. The regulatory body should be transparent and independentand should have access to legal recourse, whenever this becomesnecessary. In some cases a newly established regulatory agency will needto be strengthened institutionally in order to be able to deal withexperienced private operators.

The main objectives of the regulatory body are to: (1) ensurecompliance with standards of acceptable service as established in thecontract; (2) protect the customer from possible monopolistic behaviourof the private contractor; and (3) create a business environment whichpromotes commercial viability and is attractive to the private sector. It isalso important that there are institutional incentives that includeperformance evaluation systems under the contractual arrangement.These arrangements should enforce a more effective use of investments.The main characteristics of a regulatory regime would be: to ensure a clearseparation of operating and regulatory functions, establish investmentand maintenance responsibilities, establish a tariff structure based onefficiency criteria, incorporate a system of direct subsidies for low-incomeconsumers and to implement a long-term capital cost recovery concept.

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5. Monitoring Indicators

Monitoring, the systematic and continuous observation of actual eventsand comparison with the planned situation, provides information aboutproject performance to those responsible for project management.

In order for monitoring to be successful, clear, concise and relevantobjectives are necessary against which to measure achievements. It is alsonecessary that monitoring is carried out at regular intervals under theresponsibility of the project management team.

During implementation a mid-term review may be necessary; usuallywhen project implementation is not proceeding according to plan. Thisallows a more thorough diagnosis of project progress. The continuingintervention logic of the logical framework can be checked and theproject may be re-orientated if necessary.

End-of-project monitoring, in order to confirm that the planned assetshave been created, and to record lessons from the implementation phaseshould mark completion of implementation.

Monitoring indicators are essential components of the monitoringsystem. They provide the basis of the measuring system, used to assess theactual situation and compare it against specified targets. Indicators areused to measure a project’s progress periodically against both short- andlong-term objectives. They provide feedback to decision makers, who canuse the information to improve project performance. Indicators thereforeassist in assessing progress towards achievement of objectives.

As individual projects have unique objectives, performance indicatorsshould be based on the logical framework for the project. The logicalframework should link project objectives with project components andtheir respective inputs, activities and results at different times duringimplementation and beyond. Defining appropriate indicators begins atthe identification stage and must be fully developed during formulationand set out in the Financing Proposal. The selection of appropriatemonitoring indicators will be determined by the development objectivesof the project. An agreed set of indicators is thus established for useduring implementation.

Performance indicators should, wherever possible, be quantitative butqualitative measures may be necessary in some cases. Qualitativemeasures are used if a project’s outcomes and impacts are not directlymeasurable. In this case, techniques such as rapid rural appraisal,beneficiary assessments or focus group interviews with structuredquestions can be used to gain information on the attitudes of thebeneficiaries. This information can then be used to calculate nominalmeasures, rank orderings of categories, and frequency counts.

Results indicatorsPerformance is most effectively measured using results indicators whichmeasure actual results relative to target objectives. There are three types:

Input indicators measure the quantity of resources provided forproject activities: for example, training, human resources, equipment.

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Output indicators measure the quantity of the goods or services providedthrough the use of inputs: for example, installation of pollution controlmeasures in a water quality project. They can also indicate how manypeople involved in the project are moving from their initial state at thestart of the project towards the final envisaged ‘goal’.

Impact indicators measure trends at a higher level, i.e. national or sectoral,which project impacts are expected to influence: for example, improvednational health as measured by health indicators. They can also measurethe impact on people benefiting from the project: for example, a rise inagricultural productivity or a decrease in malnutrition, or how manyadditional families are served by clean water.

Another type of indicator – risk indicators – measure the status offactors identified as critical during the risk and sensitivity analysisperformed as part of the project’s economic analysis. These are the factorsthat are thought to be the most likely to have a direct influence on theoutcome of various aspects of the project. Risk indicators can provide ameasure of changes that may not have been envisaged in the originalproject proposal.

Monitoring should continue after completion of the project and it isimportant to use simple, easily measured indicators. Different indicatorsshould be identified at each level of the logical framework:

Overall objectivesAt this level, indicators measure the achievement of overall sectoral goals,such as improving health, raising living standards, reducing genderinequalities, stimulating exports, maintaining water quality in regionalcatchments. Precise indicators for these goals may be difficult to defineand the information may be costly to collect. Therefore proxy measuresare often used, such as housing quality as a proxy for living standards. Inaddition, the project may be only one contributor to the overall goal - forexample, transport networks may need to be upgraded to serve anirrigation system if export crops are to be promoted - thus, indicators foroverall goals may be established as part of monitoring of national orregional development progress.

Project purposeAt the level of project purpose, indicators must assist in answering thequestion: have the assets created by the project been successful inachieving the project’s development objectives, for example, reduction ofrural poverty, improved human health? These indicators will be specificto the project and will vary considerably between the different FocusAreas for water development.

ResultsAt this level, indicators measure the quantity and quality of the assetscreated by the project. For example, improved data management systems,number of water points constructed, treatment plants completed,kilometres of canals.

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ActivitiesAt this level, indicators generally measure quantity and thus focus on theefficiency of project implementation, without necessarily providing anyinformation about the quality of the activities. The indicators measure theprogress towards completing the activity, and are obtained from internalproject reports.

Examples of areas where indicators may be required in the water sectorare shown in the table below, in all cases the indicators should be a ratioof the planned (targeted) outcomes and the actual outcomes.

Further references: Performance Monitoring Indicators Handbook,World Bank, 1997. Indicators of Sustainable Development, EC, 1997.

1 Input indicators:

Costs: disbursement against budget

Number of units constructed or purchased

Number of people trained/educated (overall, men, women, poor, ethnic)

Area of agricultural land served (ha)

Area of land reclaimed from water logging and salinity (absolute and command)

2 Output indicators:

Currency unit per cubic meter of water abstracted

Number of new water supply points (service coverage)

Number of persons per water supply point

Number of new latrines (sanitation facilities)

Number of persons per latrine (sanitation facility)

Degree of utilisation of sanitary facilities

Reliability of water supply

Changes in water quality

Quality of effluent discharge (compared with legal limits)

Discharges of human and industrial waste (eg BOD, faecal coliform count)

Relative water supply (total supplied/demand)

Relative irrigation supply (total supplied/demand)

Average irrigation water delivery per ha.

Conveyance efficiency

River or groundwater withdrawal

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3 Impact indicators:

Changes in health (overall, children, men, women, poor, ethnic)

Levels of employment (overall, men, women, poor, ethnic)

Economic and financial viability (project, organisation)

Technical sustainability of project results or assets

Yield per ha

Yield per unit of irrigation water supply

Changes in income (all stakeholders)

Average tariff compared with incremental costs

Number of beneficiaries from the project (overall, men, women, poor, ethnic)

Fees collected (cost recovery) compared with fees due

Establishment of Water User Associations (ratio of area transferred to total area)

Concentration of pollutants in water bodies

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6. Participatory (Rural) Appraisal – PRA

The purpose of PRA is to gather information in a non-extractive way. Thiswill mean that the information is owned by the local people and itsanalysis is also theirs. The function of the participatory facilitator is tohelp them to analyse and understand their situation so that they can planfor the future.

The most important issue for stakeholders is information. The moreand the better the quality of information available, at the earliest possiblestage, the more effective the participatory process will be. Planners anddesigners should therefore make certain that accurate information isavailable to all stakeholders from the very beginning of the project.

The following guidelines are helpful for giving information:● Give information about the proposed project to stakeholders and user

groups at the earliest opportunity and before any major decisions aretaken.

● Use national and local media to publish information - newspapers,radio, TV.

● Set up consultative committees before any decisions are taken.● Involve existing groups as well as setting up new groups.● Be certain that both women and men are involved on an equal basis.

Ideally each committee and group should have equal numbers ofmen and women.

● Be sure that there are gender-aware women in the planning team,and that the planning and design team has had gender training.

● Use Participatory Appraisal methods to gather information.

PRA draws upon the following menu of sources and activities:● Use of secondary data, maps and reports for background information;● Direct observation;● Case studies and stories from local experts; ● Semi-structured interviews using key probing questions;● Transect walks: systematically walking through an area with local

guides, observing, asking, listening, discussing, learning aboutdifferent soil zones, land uses, vegetation, crops, livestock,technologies etc.

● Group discussions of various kinds (casual, random, focus,representative, community);

● Mapping and modelling: people mapping with sticks, stones,coloured paper etc. to show their view of their world;

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● Time-lines, trend and change analysis: chronologies of events;accounts of the past, to analyse causes of change and local trends;

● Seasonal calendars: to show distribution of climate data, crop cycles,work patterns;

● Daily time use analysis: showing amounts of time and degrees ofdrudgery;

● Well-being (or wealth) grouping (or ranking): local criteria toestablish poorest, worst-off, most deprived etc.;

● Matrix scoring and ranking: using matrices and counters to comparepreferences and conditions.

Further references: Participatory Rapid Appraisal for CommunityDevelopment: IIED and SCF, 1991. Introduction to Rapid RuralAppraisal for Agricultural Development, IIED, 1988.

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7. Participatory Irrigation Management (PIM)

The concept of Participatory Irrigation Management (PIM) has gainedwide acceptance in recent years. The incentives for governments anddonors to promote user participation are both philosophical andpragmatic. Early work in the late 1970s was driven by the recognition thatscheme design and management was not sufficiently responsive to localconditions and needs. More pragmatic incentives include the poorperformance of many public sector agencies and the drive to reducegovernment expenditure on operation and maintenance.

Although there is a general consensus amongst governments anddonors that PIM is a desirable objective there exists a wide variety ofapproaches and emphases in different country programmes.

While the emphasis and form of PIM programmes varies significantlybetween countries, effective user participation in irrigation managementimplies that key stakeholders have ownership of and influence over theassessment of alternative designs, investment decisions and managementpolicy, and operational decisions.

In some approaches to PIM, farmer participation is encouraged butscheme ownership and management responsibility remains with thegovernment agency. In other instances, responsibility for management istransferred to the users but it resides in the hands of a few influentialmembers of the community and participation by the majority of keystakeholders remains at a very low level.

The potential benefits of PIM include:● Reduced government expenditure on O&M costs;● Improvements in system productivity per unit of land and water; ● Reduced infrastructural deterioration due to inadequate maintenance;● Improved equity and system sustainability as a consequence of

participative planning, design and construction;

Whilst these are expected or ‘hoped for’ benefits, there is still a paucity ofquantitative data that can substantiate anecdotal evidence orunquantified assessments. Quantifying the true benefits of PIM is alsocomplicated where it is introduced a single component in a much widerranging reform of the agricultural sector.

The costs of PIM:Where PIM is introduced to an irrigation scheme after construction, themajor costs arise from mobilising field staff to carry out necessary studiesand introduce the ideas of participatory management to key stakeholders,plus the costs of training those stakeholders so that they can organisethemselves and establish effective management. Where a participatoryapproach is adopted from the outset of a new construction orrehabilitation project, in addition to the costs of staff mobilisation,awareness raising and training, the most important factor to recognise isthe need for additional time to be allowed during project identificationand formulation. This extra time is essential to permit farmers and otherstakeholders to influence the planning and design stages.

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Approaches to implementing PIMBased on the experience of many initiatives to establish PIM, thefollowing offers a classification of approaches that work best, and thosethat are ineffectual:

Approaches that work best:● Government must have a strong commitment to PIM;● Opportunities for re-deployment of government staff displaced by

PIM should exist;● Strong incentives exist for farmers to take responsibility, for example,

current water delivery is poor, high water charges, and deterioratinginfrastructure;

● Schemes should be financially viable;● Existing associations exist and can be strengthened;● Create large user associations which permit economies of scale, hiring

of technical staff and purchase of equipment and materials;● Transfer complete schemes;● Promote partnership rather than paternalism.

Approaches that are unproductive:● Creation of user associations that do not have responsibility for or

control over operation and maintenance;● Pursuing PIM primarily as a means of reducing government

expenditure;● Transfer of financially or technically non-viable schemes;● Transfer in the face of strong opposition from government agency

staff;● Extension of a PIM approach from small schemes to large schemes;● Promoting PIM on technically complicated schemes● Treating water user associations as extensions of the government

agency;● Adopting a gradual approach;● Spreading pilot PIM projects.

Further information: Irrigation Management Transfer. FAO, 1995. INPIM,International Network on Participatory Irrigation Management, Networkestablished by the Economic Development Institute of the World Bank.Network Coordinator: EDIEN, Rm M-5041, World Bank. Impacts ofIrrigation Management Transfer: A Review of the Evidence. IIMI , 1997.

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8. Social Impact Assessment (SIA)

Development interventions do not take place in isolation, but have to beplaced within the context of the lives of the people who will be affectedor influenced by the intervention. All development interventions havesignificant social contexts, but the social context of water projects calls forspecial care and consideration in analysis.

It is especially important to understand the ways in which differentcommunities and groups manage their social living, and to be able toassess the impact that any changes may have on the way of life.

The main objectives of a Social Impact Analysis are to determine:● which projects need further consideration of social issues;● which projects should be eliminated because the potential for

negative social impact is too great.

SIA is based on a set of key questions:1. Which populations are intended to benefit from support to a given

development activity?2. Do they really need the project? What advantages will it bring them?3. Will other, perhaps more needy, populations be excluded from

benefiting, or do so only indirectly? Could they be incorporated?4. Will any group be negatively affected? Could anything be done to

mitigate negative impacts?5. Will women benefit as well as men?6. What level of participation by the target population in planning and

implementation is possible and appropriate for this project?7. Is the project technically and culturally appropriate?8. Is it essential that target populations change their behaviour to benefit

from this project, if so how will this be achieved?9. Is the project affordable by user groups?10. Are social issues adequately reflected in judgments on project

viability?11. Are arrangements for project management appropriate?

There are five main elements of social development to consider in thewater projects. These are:● The cultural features and implications of water use;● The perceived needs of all those affected by changes in policy and by

new projects;● Inclusion of all members of society, particularly those who may be

disadvantaged by poverty, or by their status in society; ● Recognition that the roles and needs of women and men may be

different, but that they should have equal status in society, and thatequal participation and benefit for women and men is a pre-requisitefor a successful project;

● Encouragement of the participation of all stakeholders in thedevelopment process and the eventual empowerment ofcommunities.

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The broad social issues which relate particularly to water interventions fallinto three main categories: water and land use, water for food productionand water and health

Within those categories there are a number of other key issues such as:water and nutrition, water for food processing and preparation, water forirrigation and non-irrigated crops, water for vegetable gardens, water-borne and water-related disease, water for animals, water and culture.

Cultural issues with regard to water are especially sensitive. There maybe beliefs and behaviours associated with water use to which strongreligious or customary value is attached. There may also be differences inattitudes between women, children and men. These differences are moreeasily exposed by participatory methods of enquiry, and in the firstinstance by discussing with women and men separately.

Identification and analysis of key water users is an important featureof Social Impact Assessment, and the SIA should incorporate data onmodes of collection, carrying and use, and purposes of use, ensuring thatdata is disaggregated by gender.

SIA should explore the traditional idea of water as a ‘free’ good. Wherewater has traditionally been regarded as a free natural resource, theintroduction of the idea of an economic value for water and of possiblewater charges will affect household and agricultural management, andrequire new social arrangements for collection of dues. Poorer householdsmay not be able to afford water charges, or in the case of water supply,connection charges.

The impact on traditional water-sellers, or owners of traditional wellsand sources of water, is an important consideration for an SIA. Traditionalowners and sellers may lose status in society, as well as income, and mayseek to dominate community groups and committees.

Exploration of the understanding of the relationship water and well-being is an essential feature of SIA, and any benefits and dis-benefitsshould be highlighted. There is considerable evidence to show that theintroduction of clean water does not necessarily lead to an improvementin community health unless attention is paid to certain issues in the SIA;also that the introduction of irrigation can lead to increased healthproblems.

Therefore the SIA should consider:● Perceptions about the health attributes of traditional well water,

especially it’s taste, smell and health-giving properties;● Perceptions about the benefits of irrigation, levels of cropping,

seasonality, etc.;● Perceptions that children’s excreta is ‘clean’ and whether it is therefore

handled differently and unhygienically;● Perceptions that animals especially dogs and pigs clean up excreta.● Level of understanding of the concept of clean/grey/dirty water;● The possibility that ‘project’ water will be used for small enterprise

development, and that traditional wells and streams will continue tosupply family needs;

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● Analysis of the likely health hazards following from the creation oflagoons, reservoirs, and other areas of standing water, as well as theeffects of treatment works and sludge disposal;

● The likelihood of greater water availability increasing the incidence ofwater-borne disease if the water supply is not kept pathogen-free.

The SIA should also take into account the social customs relating to wateruse – such as:● Customary methods of collection/storage and hygienic practices;● The importance of the social groupings that develop around

traditional wells and other water sources; ● Customary methods of watering crops, and other farming activities; ● Customary uses of water sources for religious and other ritual activity;● Customary perceptions of ‘clean’ and ‘unclean’ water;● Customary sites for washing clothes and bathing;● Customary intervals for bathing for women, men and children;● The use of water from different sources for different cooking, brewing

and other food processing activities;● The use of different sources for watering and washing animals.

Analysis of social norms and customs will enable the preparation ofproposals for the siting of new water installations to be sensitivelymanaged in co-operation with the stakeholders and the users.

User preference for technological options should also be explored inan SIA (e.g. pit latrines, communal toilets, and different irrigationmethods).

The SIA should seek to identify community groups which have aparticular relationship to traditional water sources, and if possible usethose groups as the basis for management and maintenance of the ‘new’water projects. The identification of female and male community leaders,within as well as outside the groups, is a key to effective management.

Women’s groups often have responsibility for water management andmaintenance of installations within the community and the SIA shouldensure they are included. This is not necessarily the case with irrigationprojects and extra care needs to be taken to ensure that women areincluded in water-user groups for irrigation.

The identification of levels of understanding of the benefits of waterfor human uses and agriculture is an important strand of analysis for anSIA. The SIA should identify gaps in understanding and possible topics forcommunity education. Schools as well as water extension organisationsshould be available to deliver water-awareness programmes. (See alsoGender Analysis, which should be incorporated into SIA).

Further information: A guide to Social Analysis for Projects in DevelopingCountries, ODA, 1995.

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9. Gender Analysis

The acknowledgement of women as important agents in mainstreamdevelopment necessitated a descriptive word that could encompass allaspects of development, which arose from the social differences betweenwomen and men. Hence the word ‘gender’ came to be used to denote thesocial roles of women and men as opposed to their biological difference.(Sex does not change, social roles and relationships can and do change.)

The movement away from a ‘women in development’ (WID) approachto a gender and development (GAD) approach was an important steptowards the recognition of women as mainstream development agents.The GAD approach recognises that access to socially valued and valuableresources is unequal, and is normally biased in favour of men. Womengenerally have less access than men to training, land, secure employmentand leisure, as well as to the political process. Without identifying suchdifferences, it is not possible to devise policies that meet the specificneeds of women and men and address existing inequalities.

The development of gender planning techniques such as the use ofgender-disaggregated statistics and task analysis in which female and maletasks are defined, responds to the need to allow for gender differences inthe planning and implementation of programmes and projects. Analysisof gender differences entails identifying the distribution of tasks, activitiesand rewards associated with the gender division of labour as well as therelative positions of women and men.

Gender planning methodology identifies several roles of women:household and domestic managers; economic producers (e.g. in farming);and community leaders. Increasingly, the role of women not only aswater-haulers for the family but as managers and maintainers ofcommunity water supplies is being recognised.

Gender planning methodology also identifies two crucial distinctionsin gender interventions: projects which address women’s needs, byimproving existing work methods and relieving their domestic andfarming burdens; and projects which address such strategic needs asequality with men, improved status and access to resources.

A Gender planning checklist is set out in the EC Gender andDevelopment Manual, and there are numerous reference books andchecklists available on Gender issues and Gender Planning Methodology.

There is a clearly defined and linked sequence of terms that describethe level of understanding of gender concepts within an organisation orinstitution. These are: gender-aware, gender-sensitive, gender-incorporated. An organisation which could be described as ‘genderincorporated’ would have gender issues, analysis and activities embeddedin the culture and methods of the organisation at all levels.

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Issues related to gender within water resources management and use Many issues relating to water resources management, especially basicwater supply and sanitation services and agricultural water use, havespecial gender connotations. Gender analysis will help identify them.

General issues include:● Time spent in water-hauling and other water-related tasks; projects

that increase demands on women’s time without saving time fromtheir existing daily round will be unpopular with women;

● Effort, energy, burden: water hauling is heavy work as well as time-consuming. For women, the reduction of this burden is often ofparamount importance.

Specific issues include: ● Distance travelled in fetching and carrying water;● Provision of water in sufficient quantity at a nearby location for all

household tasks;● Provision of slabs and platforms for washing clothes; ● Providing drinking water for animals and washing animals;● Provision and use of water for small enterprises especially in food

processing;● Provision of water for small-scale irrigation (vegetable gardens and

field crops);● Standing in water for crop production activities such as planting rice

and in processing activities such as jute retting; ● Irrigation activities which increase women’s work in planting,

hoeing, weeding and harvesting.

Women and IrrigationThe benefits of irrigation to women may be reduced if their role inagricultural activities is not understood. Increasing land in productionmay simply increase the volume of work for women where women’s workis deemed to be planting, hoeing, weeding and harvesting and cropprocessing. Increases in production, without attention to the volume ofwomen’s work, their available time and the burdens they carry, will meanthat maximum productivity cannot be achieved.

Irrigation may also bring about a decline in subsistence agriculture orfamily food production (traditionally women’s activity) if available time istaken up with irrigated agriculture. This will in turn affect nutritionallevels. Irrigation technologies which may not be suitable for use bywomen may lead to marginalisation of women in user committees andother decision-making forums and thus to lack of control over benefitsand resources.

Gender analysis and the SIA (see above) should seek to identify theallocation of tasks to women and to men, and to measure time andburdens in relation to women’s and men’s activities, and to calculate thelikely benefits and dis-benefits to women and men.

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Women, Water and HealthThis is an important relationship which water project planning needs toexplore. Based on the concept of the triple role of women, it follows that: ● Any increase in water-borne disease will impact on women’s

reproductive and caring role;● Any increase in production will impact on her productive role,

particularly if production methods involve standing in water whichcan lead to an increase in water-borne diseases contracted fromvectors which penetrate the skin;

● Any increase in productivity may also lead to improved nutritionalstatus, or it may bring about a decline in nutritional status if familyfood production is neglected for market-driven agriculture;

● An increase in water hauling will lead to an increase in the incidenceof back and limb problems and accidents in slippery descents to wellsand water sources;

● New systems of water supply will impact on women’s communityrole in terms of increased time needed for participation in planning,management and maintenance activities and these will bring withthem related stress factors.

Further information: EC Manual: The Integration of Women inDevelopment, EC, 1991. Participation of Women in Water Supply andSanitation. IRC, 1995. Handbook for Mainstreaming: A GenderPerspective in the Water Resources Management Sector. SIDA, 1996.Gender Issues, Water Issues, A Gender Perspective to IrrigationManagement. IIMI, 1994.

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10. Willingness-to-pay surveys

In recent years the planning of water services has been greatly assisted bythe spread of market surveys of potential users. These surveys aim touncover users’ preferences for the proposed service, and what they wouldbe willing to pay for it (hence the name, willingness-to-pay, or WTPsurveys).

These surveys provide a variety of information about householders’current sources of water; the volume of water used for different purposes;their preferences about the proposed service; what they are now payingfor water, and what they would be prepared to pay for a specifiedimprovement; and whether they would connect up to a new supplysource. These surveys are equally applicable for sanitation and sewerage.

The accumulating evidence on WTP makes it possible to plot demandcurves for water, which allow planners to design systems that are moreresponsive to what users really want, and improve the prospects ofadequate cost recovery.

Conclusions to be drawnIt is difficult to generalise about the actual WTP values emerging from avariety of studies: the numbers depend on specific circumstances.However, the studies do agree on the factors that influence the demandfor improved water supplies, and therefore WTP. These include:● Socio-economic and demographic characteristics: incomes,

occupation, purposes for which water is used, family size andcomposition, water use customs, etc.

● Quality, reliability and cost of proposed water, compared to existingsources. In this context, quality includes appearance, taste and smell,as well as its microbiological composition. Cost takes into account thetime and effort involved in carrying the water from a distant source, orqueuing for it, and current cash outlays to private vendors, etc. Thecost of connecting to the system is another factor.

● Attitudes to government policy, and sense of entitlement. Statedgovernment policies on water supply and pricing may define users’attitudes – e.g. if politicians have promised free water, or if there is aclear and effective policy on subsidies. Various factors may lead peopleto feel they are entitled to free or cheap water.

Using WTP surveys for water is controversial, and their results can bechallenged, e.g. for people with very low cash incomes, or where maleand female members of the family have different attitudes. In additionthere are the familiar criticisms of contingent valuation surveys (seebelow), of which WTP is a type, e.g. ‘strategic behaviour’ by respondentswishing to have the service, but either exaggerating, or understating, theamount they are willing to pay.

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Acknowledging these problems, it can nevertheless be concluded thatWTP evidence is useful, and provides an empirical basis for planning andcost recovery in this sector. It suggests that water is indeed an economiccommodity in the eyes of many consumers, and that they are in principleprepared to pay for an improved service.

Data collectionEvidence on WTP is collected through Contingent Valuation (CV)surveys, so called because their replies are ‘contingent’ on the descriptionof the (usually) hypothetical service or improvement being proposed.Conducting CV surveys is highly specialised and they should becontracted out to experienced practitioners. The growth of interest in CVin the USA led to the production of authoritative guidelines for theconduct of CV in a report to the US National Oceanic and AtmosphericAdministration. The guidelines were drawn up principally for theestimation of non-use values of natural habitats, though they applygenerally to other issues such as water. The CV method may be used inlitigation, and substantial resources are required to conduct such a study.This should be borne in mind while reading the guidelines below, not allof which may be appropriate in their full rigour.

SamplesA professional statistician should be involved in the choice of the typeand size of the sample. The sample size must be statistically significant,especially where split-samples are used.

Non-responsesA high non-response rate would make the survey results unreliable.

InterviewsFace-to-face interviews are usually preferable to other types, andtelephone interviews are better than mail surveys. Major CV surveysshould also pre-test for the effect of the interviewer. The effects ofphotographs on the respondents should be carefully explored.

Reporting The survey report should contain information on the populationsampled, the sampling frame used, sample size, the overall non-responserate and breakdown of non-responses, a copy of the questionnaire, and allcommunications with respondents. Data should be archived andaccessible to interested parties.

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Questionnaire design Questionnaires should be piloted and pre-tested. There should beevidence that respondents understand and accept the description andquestions in it. In general, the structure of the survey should err on theconservative side, i.e. options which underestimate WTP should bepreferred to those which risk overestimating it, in order to improve thecredibility of results. There should be a place for ‘no-answers’, the reasonsfor which should be explored.

Cross-tabulationsThe survey should include a variety of other questions that help tointerpret replies to the primary valuation question. These might includeincome and other socio-economic indicators, location, awareness ofenvironmental issues, etc.

Elicitation procedure The WTP format is preferable to questions about compensation required,e.g. in the event of a withdrawal, or denial, of services. The valuationquestions should be posed as a vote on a referendum (‘yes/no’, ratherthan an open-ended question about WTP). The mode of payment shouldbe clear, realistic and acceptable.

Accurate description of issue Sufficient information should be provided about the proposed change inservice to enable respondents to frame realistic answers.

Expenditure implications Respondents should be reminded that their WTP for the programme inquestion would reduce their ability to spend on other goods and services.

Further information: The Economic Appraisal of Environmental Projectsand Policies: A Practical Guide, OECD, 1995. Values for theEnvironment, ODI, 1991.

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11. Financial and Economic Analysis

Water-related projects should be the object of a financial and economicanalysis (FEA). The European Commission has published a referencemanual that summarises the main recommended techniques forundertaking such an analysis (Financial and Economic Analysis ofDevelopment Projects, EC, September 1997).

The first step of Financial and Economic Analysis (FEA) is to determinethe economic entities involved (i.e. stakeholder groups that incur costs orreceive benefits as a result of the project), all of which should be takeninto account in the analysis. The presentation of a partial picture of theproject should be avoided; for example, the FEA should not examine onlythe part financed by the EU, if there is evidence that other sources offunds will be needed from government or obtained frombeneficiaries/users.

Some of the major economic entities need to be analysed separately.These include the relevant ministry or ministries; public/private entities,such as water authorities, utilities and companies; and beneficiaries/usergroups who are expected to contribute and for whom costs may appear tooutweigh benefits. It is especially important to concentrate on the lowest-income groups among the beneficiaries, as improvement of their health,economic status and quality of life is often a high priority for waterprojects. If one of the stakeholder groups does not benefit from theproject, the project may have to be redesigned to address this problem orthe project may fail. Most importantly, if the objective is to help thepoorest, the affordability for low-income groups of the water supply orother benefits produced by the project must be clearly shown.

The second step (closely linked with the first) is to define the ‘withproject’ and the ‘without project’ scenarios. Note that the ‘withoutproject’ scenario is not the same as a ‘before project’ scenario; it shouldreflect the evolving situation in the proposed project area over the life ofthe project. The project lifetime should be regarded as the period duringwhich project benefits and costs will accrue, not the period of projectimplementation or donor investment. The ‘with’ and ‘without’ scenariosshould be quantified over the project lifetime in order to determine the‘incremental’ scenario – the ‘with project’ minus the ‘without project’.This scenario forms the basis of the decision of whether or not to financethe project.

These three scenarios should be summarised in three cash flows. An‘incremental’ scenario should not be compiled without this exercise asthis risks the omission of certain elements. Assumptions should be clearlystated and realistic, and sensitivity analyses should be used to determinetheir relative importance. A sensitivity analysis consists of changing thevalue of key factors such as the duration of the project, the main benefitsand costs, and the discount rate, in order to assess their impact on theoverall worth of the project and hence approximate the degree of risk of aproject. The ‘without project’ scenario should be compared with relevantalternative options which should be adequately quantified. Justificationshould be provided for the selection of the preferred option.

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This second step enables classification of the project either as one withpredominantly tangible products (the majority of costs and benefits canbe quantified and valued) or as one with predominantly non-tangiblebenefits (the majority of costs and benefits cannot be quantified andvalued, although some of them can). This classification is important as itdetermines the type of possible analysis. In the case of a project withtangible benefits, a cost/benefit analysis can be performed, whereas in thecase of a project with non-tangible benefits, a cost/efficiency analysis isrequired. If components of the project are not linked they should beassessed separately (i.e. a separate net present value (NPV), internal rate ofreturn (IRR) or cost/efficiency measure needs to be computed).

The type and extent of financial and economic analysis to beperformed needs to be adapted to the main issues of each project. Forexample, if institutional aspects are central to the project, the analysis willhave to be adapted accordingly.

Main issues specific to water-related projects are as follows: (1) Todetermine which benefits and costs should be quantified: willingness-to-pay or sale of water; financial outlays; production gains; amenity;reduction of diseases and mortality; time savings; convenience; andenvironmental costs and/or benefits (these last four items may prove tobe hard to quantify and even more difficult to value); and (2) The type ofcost recovery policy to adopt. Ideally, this should allow for the recovery ofoperating costs, maintenance costs and depreciation, and should applydifferent prices for low-income groups, higher-income groups, andcompanies.

The third step is the financial analysis, which builds on the first twosteps. The analysis starts with a financial analysis, never directly with aneconomic analysis. The financial analysis focuses on individual economicentities or stakeholder groups, whereas the economic analysis focuses onthe country or region as a whole. A financial analysis allows anassessment of the intrinsic worth of a project — its value before financing— and the financial worth of a project — its value after financing — atconstant market prices (i.e. excluding inflation and without adjustmentfor market price distortions), using a justified discount rate (a rate whichreflects the time preference, excluding inflation).

In the case of a project with tangible benefits, the financial analysisuses the payback period (the number of years needed to recover the initialinvestment without discounting), the Net Present Value (NPV) (the netvalue of the project after applying discount rates over the life of theproject), or the Internal Rate of Return (IRR) (the discount rate such thatthe NPV is nil). The NPV should be the main decision criteria as it makesit possible to rank projects (divide NPV by the initial investment in thecase of alternative projects with different investment amounts).

For projects with non-tangible benefits, the financial analysis shouldfocus on the determination of a realistic budget and the determination ofa benefit indicator (for example, the cost per litre of drinking water tocommunal standpipe users), and the comparison of these two elements,to assess cost-efficiency. At this stage, assessing the acceptability ofunderlying assumptions and the performance of relevant sensitivity tests

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are of utmost importance. The fourth stage is the economic analysis. To move from the financial

analysis to the economic analysis, a consolidation of the variouseconomic entities (stakeholders) is performed and a number ofadjustments are made. An economic analysis is only required when: (1)The project is of a size that will have a significant impact on the nationaleconomy, which can be the case with very large water-related projects. Inthis case, the ‘economic effects’ analysis allows emphasis on the effects oneconomic growth (in the case of the project with tangible benefits),foreign exchange, budget and income distribution (in all cases). Thisanalysis is carried out at constant market prices and should preferably beperformed over the life of the project and not over one year. It consists ofdisaggregating costs and benefits to determine their components(operating margin, imports, taxes, wages, and financial charges). (2) Thereare important distortions in the pricing system which justify a valuationbased on the opportunity cost for labour, property, natural resources andforeign exchange. The international viability method eliminates alltransfers (such as taxes paid by the consumer and collected by thegovernment) to show the overall picture from the national point of viewand converts prices to their opportunity cost (shadow pricing) to accountfor distortions and externalities. This method allows the determination ofthe economic worth of the project. The economic net present value, theeconomic internal rate of return as well as the domestic resource costshould be the main decision criteria.

The fifth stage is the synthesis of findings and the recommendations.At the end of the analysis, it should be possible to assess the relevance ofthe project (for projects with tangible benefits), its efficiency, itseffectiveness and its viability, and recommend whether or not to go aheadwith the project. This assessment should be related to the recipientgovernment’s policies and to EU policies. One of the main issues isviability: a good financial and economic analysis should quantify therecurrent costs generated by the project during its lifetime and after theend of the project, as well as the adequacy of the financing.

If some project components are not satisfactory, the financial andeconomic analysis should be undertaken again, using appropriatealternatives. Financial and economic analysis is an iterative process, not asequential one.

It should, however, be remembered that while financial and economicanalysis is a very important element of project preparation, it does notprovide the only basis for judging whether a project should go ahead.Projects may provide significant non-tangible benefits which cannot beincluded in any calculation of Net Present Value or Internal Rate ofReturn, and some aspects of an appraisal — such as social andenvironmental aspects — are very difficult to integrate in financial andeconomic analysis. This is particularly the case with water-related projectswhere — for example — the purpose is to improve health and free womenfrom water-hauling so that they have more time to devote toeconomically productive activity. This is why a financial and economic

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analysis should always be performed in close co-ordination with otheranalyses, such as socio-cultural and gender analyses, never as a stand-alone exercise.

Efficiency — comparison of the results obtained with the resources used;Effectiveness — comparison of the project’s purpose with its results;Viability (or sustainability) — (1) the solvency of the project over itslifetime; and (2) whether net benefits will continue to flow after projectcompletion;Relevance — the extent to which the project fits with and contributes tothe economic and structural reform objectives of the partner country andthe EU.

12. Estimating benefits from water resources investments

The traditional approach to estimating the benefits of the various types ofwater and wastewater projects is to regard the financial revenue from thesale of services as a minimum proxy of benefits. This is now regarded asunsatisfactory, since water is often underpriced and subsidised, andfinancial revenue may greatly understate the real benefit of the service.The problem is compounded in the case of wastewater services because oftheir implications for public health and environmental protection. Theconsequence is that it is often difficult to demonstrate the true economicbenefits of water resources projects.

The broad choice is between asking water consumers what they wouldbe willing to pay for improved services, and to try to estimate thesebenefits directly by other means. In theory, WTP provides a morecomprehensive answer, because only consumers themselves know the fullbenefits they can expect, and what these are worth to them. However,WTP answers may not be reliable, for various reasons. WTP exercises taketime and absorb resources, and are not always feasible. Morefundamentally, individual statements of WTP for benefits will omit thesocial benefits (externalities) of improved services, notably public healthand amenity.

For these reasons, it is sometimes preferable to break down the variousbenefits, and estimate them directly. Care should be taken to avoiddouble counting, e.g. including both individual WTP and savings ofconsumers’ resources and time. Likewise, benefit estimates relying onenhanced local property values are likely to duplicate benefits derived byother routes.

The main types of benefit, for both fresh water and wastewaterservices, are as follows:

Resource cost savingsThese arise as consumers’ savings in cash or kind from improved waterservices. They can be further divided into time savings, financial outlays,and production gains.

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Time savings and convenienceThese consist of reduced time spent (especially by women and children)in queuing for water at public outlets, and carrying it back from distantsources. Alternatively, it may apply to the use of sanitation in theresidence rather than in public areas. Convenience is partly a matter oftime savings, partly a lessening of worry and effort.

Financial outlaysUse of the improved service may reduce private outlays on substitutes orfall-backs, e.g. purchase from water vendors, cost of private watertreatment (filtering, boiling, etc.) or the use of private wells. Sewerageconnections will remove the need for septic tanks. The benefit may accrueto public authorities, as where improved wastewater treatment reducesthe cost of freshwater treatment, where it is drawn from the same source.

Production gainsA greater volume and more reliable supply of clean water may reducecosts for farmers and industrial/commercial operators for whom water is amajor input. For some enterprises, a water supply may be the key factorin viability.

Health benefitsA greater volume of water can help to change household habits, withpotential gains to health – e.g. more frequent and more thoroughwashing, more careful cleaning of utensils and clothes. More reliablesupplies can have similar effects, and may remove the need for storage,which itself can carry health risks. Improved water quality can reduce therisk of ingesting contaminated fluid. These benefits are partly private,partly public. The latter consist of reducing the incidence of diseasestransmitted from one person to another. In practice, the main healthgains are likely to come from improved sanitation and waste disposal,especially the avoidance of faecal contamination.

Amenity A neighbourhood with good water and wastewater services will, otherthings being equal, have a higher property value than one without. Thereduction of pollution and local flooding from proper sewerage will alsoimprove local amenity. The cumulative impact of all the individual andsocial benefits from improved water services will be a betterneighbourhood, from which all benefit.

The above types of benefit can be converted to economic values, usingvarious methods:● Contingent valuation and willingness-to-pay surveys, applicable to

the various kinds of private benefits, and to some aspects of publichealth and amenity;

● (Hedonic) property method, in which increases in property values areregarded as capturing household, health and amenity benefits;

● Avertive behaviour and defensive expenditure, in which peoples’spending on alternative sources and safety procedures is used toillustrate what they would save by using improved services;

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● Loss of production method, or the market valuation of physicaleffects. This approach measures the likely impact of improved waterservices on output (e.g. irrigated crops, fisheries, laundry services), oron the use of marketed inputs and services (e.g. health facilities, costof private water treatment). The valuation of time saving is a specialcase: where the time in question is ‘productive’ it can be measured byprevailing wage rates, but this is more problematic where thebeneficiaries are not in the wage-earning labour force (e.g. children,old persons, unpaid women).

Further information: Measuring economic benefits for water investmentsand policies, World Bank, 1996. The Economic Benefits of Potable WaterSupply Projects to Households in Developing Countries, AsianDevelopment Bank, 1994.

13. Environmental Procedures

Legal BackgroundThe EU aims to integrate environmental aspects into all developmentactivities. This became a legal obligation under the Treaty on EuropeanUnion (Maastricht Treaty). The protection and enhancement of naturalresources is recognised as an important dimension to the developmentsupport provided by the EU. The intention is: (1) to avoid harmful effectsto the environment as a result of any programme or operation; (2) tomaintain ecological viability through all the stages of the project cycle;and (3) to take account of direct and indirect consequences of operationsthat may affect other sectors.

Several Council Regulations and Resolutions of the Council andMember States place importance on environmental protection in allregions of the world. Sustainable management of natural resources isamong the policy priorities.

Environmental AppraisalAn Environment Manual (Environmental procedures and methodologygoverning Lomé IV development co-operation projects, June 1993, DG forDevelopment) has been produced by the EC. Its aim is to assist partnercountries and the EC to incorporate environmental considerations intoProject Cycle Management (PCM). The procedures provide an effectivesystem of environmental appraisal for development projects. The manual,as written, refers to the project level. During 1998, the commission willrevise and update the 1993 Manual, which will then be applicable to alldevelopment co-operation activities.

Environmental appraisal of proposed projects can be broken downinto six basic components:● Initial screening: this determines whether projects are likely to cause

significant environmental effects and therefore need furtherenvironmental consideration; to be applied at programming andidentification stages.

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● Preliminary Environmental Assessment: this gives an early cost-effective indication of the level of environmental analysis that will berequired; to be undertaken at identification stage.

● Environmental Assessment: this depends upon earlier screening.The purpose is to determine the environmental consequences of aproject, and the environmental protection measures which should beincorporated into its design, implementation, and operation. Theassessment can be carried out as part of the Feasibility Study or as aseparate Environmental Impact Assessment (EIA).

● Review of Environmental Results: this uses the outcome of theEnvironmental Assessment to identify environmental measures forincorporation into the Financing Proposal. These includeEnvironmental Management Plans, Environmental MonitoringSystems or Environmental Audits.

● Environmental Monitoring: this shows how to incorporate anenvironmental component into monitoring so as to ensurecontinuing environmental monitoring and the adequacy ofenvironmental mitigation measures.

● Evaluation: this shows how to include an environmental componentto ensure that general environmental lessons are learned for futureprojects.

The Manual shows the linkages between the PCM stages, theenvironmental procedure and responsibilities of the various bodiesinvolved. It also gives a schedule of procedures and actions/decisions as achecklist. It is recommended that the completed checklist is submittedonce the Feasibility Study is accepted.

Projects can be placed into three categories for EnvironmentalAnalysis (EA) and the Manual clearly sets out the methodology for each.Examples of projects falling into the different categories, with indicativeFocus Areas, are:1. Projects not requiring an EA: These include projects unlikely to

have significant environmental impacts, such as technical assistance,education, training, and institutional strengthening, data collectionand desk studies.

2. Projects requiring a Preliminary Environmental ImpactAssessment: These include projects whose type, scale, or otherrelevant characteristics have potential to cause some environmentalimpact. These are not likely to warrant an EIA but will require aPreliminary EA. WRAP: development of freshwaters for recreationand amenity purposes, significant land-use changes on (a) knownaquifer recharge areas; (b) flood plains; and (c) riparian areas. BWSS:rural water supply and sanitation, land drainage (small scale), small-scale sewerage systems and sewerage-sludge disposal. MWSS: urbanwater supply and sanitation, urban surface drainage disposal,sewerage systems, installations for the disposal of sewerage sludge.AWUM: catchment management and rehabilitation, surface-waterirrigation projects between 100 and 500 hectares, groundwaterirrigation projects between 200 and 1000 hectares, aquaculture

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(coastal zone and freshwater), agricultural development on sensitiveaquifer recharge areas and riparian land. Trans-sectoral: mini-hydro,tourism involving the amenity use of water and the provision ofpotable supplies and sanitation.

3. Projects requiring a full EIA: These include projects that, because oftheir type and size, are highly likely to lead to significantenvironmental impacts. Environmental Assessment will be neededeither as part of the feasibility study or as a self-standing EIA. WRAP:dams, river regulation, water transfer, embankments, regional floodrelief, and rural flood protection. BWSS: boreholes, well construction,wastewater disposal systems (small scale), rural flood protection, andflood relief schemes, resettlement. MWSS: wastewater treatmentplants (large scale), water treatment works (large scale), urban surfacedrainage disposal, canalisation of rivers through urban areas, urbanflood protection and flood relief works, water supply dams, barragesand reservoirs. AWUM: drainage of wetlands, surface-water irrigationprojects more than 500 hectares, ground-water irrigation projectsmore than 1000 hectares, water conveyance systems includingheadworks, canals and pipelines (large scale), soil conservation andland reclamation. Trans-sectoral: coastal development due totourism, resettlement schemes, hydropower schemes (large scale).

Initial Screening is important during project identification. It should benoted that:● The Screening Lists assume that environmental improvement and

protection projects may have adverse environmental impacts in somecases. The provision of water for human, animal, and cropconsumption may be an improvement in the environment but bringwith it adverse affects that could out-weigh the benefits.

● The use of water for environmental purposes, (i.e. to sustain wetlands,nursery fisheries, recreation, amenity and cultural practices) is nowrecognised as important in water-related projects. The impact of aproposed project on the provision of ‘environmental flows’ ofsufficient quantity and quality has to be accounted for in theScreening process.

● Environmental protection for projects not covered in the ScreeningLists needs to be addressed under normal project preparationprocedures by the partner country authority and EC Delegations.

● Screening lists should be annexed to the Project Identification Sheet.

Preliminary EA checklists are provided in the Manual. The objective is toguide the user as to the level of further environmental analysis likely to berequired.● The 16 lists can be used with a minimum of specialised technical

input and can be completed within 30-45 minutes. In comparisonwith an EIA study, completion of a checklist is simple, and costefficient.

● This tool can be used to compare other options for projects at the Pre-

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Feasibility (identification) stage.● The checklists on ‘Rural and Urban Water and Sanitation’ and

‘Irrigation’ are most relevant for water related projects. However, theuser is also recommended to examine other relevant checklists such as‘Waste Disposal and Treatment’, ‘Ports and Harbours’, ‘Energy’,‘Agriculture’, ‘Forestry’, ‘Fisheries and Aquaculture’.

● The Preliminary EA checklists will result in (a) no furtherenvironmental analysis being needed; (b) further assessment of somesignificant environmental issues within the Feasibility Study; and (c) aself-standing EIA study to investigate serious environmental issues or(d) a Strategic Environmental Assessment for sectoral programmes.

● The relevant checklists should be annexed to the Financing Proposal.

The methodology for the Environmental Assessment (EA), either asEnvironmental Analysis in the Feasibility Study, or as a self-standing EIAstudy is given in the User’s Guide. This process will be required when thepartner country requests a Feasibility Study. In either case, the practicalobjective is to predict likely environmental impacts of the project, findways of mitigating unacceptable impacts, and present decision makerswith the predictions and appropriate mitigation options. The analysis orstudy will involve public consultation with interested parties and theaffected population. Project planners can then shape the project toachieve and sustain the predicted benefits with minimal unacceptableenvironmental consequences. EA involves:● Identification of alternatives (environmental consequences of different

project options should be contrasted with the ‘do nothing’ situation);● Scoping (the identification and narrowing down of potential

environmental impacts to those that are significant);● Prediction of impacts;● Evaluation of impacts;● Identification of mitigation measures (changing sites, methods,

design; introducing controls and standards; offering restoration andcompensation; institutional strengthening and capacity building);

● Presentation of results;● A one-page summary should be attached to the Financing Proposal.

A model Terms of Reference (TOR) for EIA is given in the User’s Guide.This ensures that the methodology for each EIA Study is complete anduniform.

The Review of Environmental Assessment deals with integrating therecommendations of any EA or EIA with the Financing Proposal. Thesignificance of the potential environmental impact of the project withinthe wider project-planning framework will be reviewed. The reviewshould incorporate an economic evaluation of the potentialenvironmental impacts and mitigation measures, decisions on concreteaction that will prevent or reduce adverse environmental impacts. Theselection of preferred mitigation measures will require an evaluation of

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the capacity of the country’s institutions to implement them. Whereappropriate, environmental conditionalities will be included in theFinancing Proposal.

Monitoring. Any project underway will always have some environmentalconsequences (contamination of watercourses due to spoil fromconstruction sites, access roads for construction, etc.). The purpose ofmonitoring is to assess the environmental impacts during the usualproject monitoring process. This allows for (a) an evaluation of theenvironmental impact of the project and of the effectiveness ofmitigation measures; (b) advance warning of adverse changes due toproject implementation; and (c) assessment and evaluation of anyunforeseen environmental impacts.

Evaluation studies are undertaken during the project’s implementation,particularly at the mid-term but also at the end, or a short time after theend, of the project. If the environmental issues are particularlyprominent, it may be appropriate to commission an EnvironmentalAudit.

SourcebookA Sectoral Environmental Assessment Sourcebook accompanies theEnvironment Manual. For each of the 16 main development sectors thesourcebook contains a detailed Checklist and Background Notes. It isavailable on diskette. This edited compilation of environmentalguidelines published by leading organisations in the donor community,(e.g. WHO, World Bank, FAO, UNEP, UNESCO AsDB, USAID) is to provideassistance, explanations, and sources of information to:● Prepare EIA TORs and EA components within Feasibility Studies● Place monetary values on the costs and benefits of environmental

impacts● Review and appraise the results of EIA or EA studies.

Sections on ‘Rural and Urban Water Supply and Sanitation’ and‘Irrigation’ are directly relevant to environmental issues in water-relatedprojects. Sections on ‘Waste Disposal and Treatment’, ‘Ports andHarbours’, ‘Energy’, ‘Agriculture’ are also important.

Further information: Environmental procedures and methodologygoverning Lomé IV development co-operation projects, EC, 1993, ICIDEnvironmental checklist to identify environmental effects of irrigation,drainage and flood control projects, HR Wallingford, 1993.

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14. Environmental economic valuation

The three main approaches to valuing environmental impacts are: 1. Using market prices for the physical effects of environmental change

on production;2. The use of stated preferences (what people say their environmental

values are);3. Various kinds of revealed preferences (inferences drawn from peoples’

actual behaviour).

Market valuation of physical effects (MVPE).This method values environmental change by observing physical changesin the environment and estimating what difference they will make to thevalue of goods and services. Water pollution may reduce fishing catches,and air pollution can affect the growth of crops. In these cases,environmental changes reduce marketed output. In other cases, such asclearing silt from reservoirs and ditches, environmental change raisescosts. In either event, the change costs someone money.

Within the MVPE category, several techniques are available. Dose-response measures estimate the physical impact of an environmentalchange on a receptor, such as air pollution on materials, corrosion, acidrain on crop yield, or water pollution on the health of swimmers. Damagefunctions use dose-response data to estimate the economic cost ofenvironmental change. The physical impact caused by environmentalchange is converted to economic values using the market prices of theunits of output.

Under the production function approach, environmental ‘inputs’ suchas soil fertility and air and water quality can be related througheconometric techniques to output, showing how output varies accordingto changes in the various kinds of input. The human capital methodestimates the cost of bad health resulting from environmental change,according to its effect on the productivity of the worker.

The replacement cost method estimates the cost of environmentaldamage by using the costs which the injured parties incur in putting theharm right, either by observing what the victims actually spend or byconsulting expert opinion on what it would cost to remedy the problem.

Stated preference methodsIn certain situations it is appropriate to ask people directly what theirenvironmental valuations are. The contingent valuation method (CVM) isthe term given to a form of market research where the ‘product’ is achange in the environment. People are asked what they would be willingto pay for a hypothetical environmental improvement, or to prevent adeterioration, or what they would be willing to accept in compensation.

CVM may apply equally to changes in public goods, such as airquality, landscape, or the existence values of wildlife and to goods andservices sold to individuals, such as improved water supply and sewerage.It may apply both to use values (e.g. water quality, viewing wild animals,direct enjoyment of a view) or non-use values (existence values).

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Revealed preference methodsUnder this group of techniques, peoples’ preferences for the environmentare inferred indirectly by examining their behaviour in markets that arelinked to the environment. Some goods and services are complements toenvironmental quality, others are proxies, surrogates or substitutes for it.By examining the prices they pay, or the benefits they apparently derive,in these closely-related markets, peoples’ environmental preferences canbe uncovered.

There are three techniques. The travel cost method (TCM) uses thetime and cost incurred in visiting and enjoying a natural site as a proxymeasure of the price of entering it. Avertive behaviour (AB) and defensiveexpenditure (DE) obtain information from what people are observed tospend to protect themselves against an actual or potential decline inenvironmental quality.

The hedonic pricing method (HPM) is based on the fact that the priceof a property reflects, amongst other things, the quality of theenvironment in which it is located. Applied to property, it useseconometric analysis of large data bases to unbundle environmentalattributes from the various other factors making up the price of a dwellingor piece of land. The same basic approach can be used to infer the valueof different environmental health risks from systematic differences inwages. All three methods estimate people’s revealed preferences from dataon their observed market behaviour.

Environmental impacts can be summarised as four types: productivity,health, amenity and existence values. The latter are impacts whichthreaten the very existence of species or environmental assets and areindependent of their use values to humankind. The following tableillustrates how the various valuation methods can be applied to these fourtypes of impact.

Environmental impacts and valuation methods

Impact Valuation methods

Productivity Market valuation of physical effects (MVPE)Avertive behaviour (AB)Defensive expenditure (DE)Replacement cost (RC)

Health Human capital (HC) or cost of illness (COI)Contingent valuation (CVM)Avertive behaviourDefensive expenditure

Amenity Contingent valuationTravel cost (TCM)Hedonic property method (HPM)

Existence values Contingent valuation

For an impact on productivity, the most obvious method is MVPE, whichplaces a market value on the physical effect on production (e.g. loss ofcrops from acid rain). However, for those impacts that entail increasingcosts, AB, DE and RC could also be suitable (e.g. cost of relocation to

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avoid pollution, double glazing to reduce ambient noise, cost of repairsafter floods).

For impacts on health, including safety, HC and COI provideminimum estimates, based on the loss of earnings and direct medicaloutlays. AB (e.g. relocation by asthmatics to avoid air pollution) and DE(installation of private water treatment to safeguard againstcontamination) can give additional pointers. The full health impact maybe captured by CV surveys, which measure willingness to pay to avoid orreduce the risk of pain and discomfort, as well as monetary losses. Theabove applies to morbidity. For mortality risks, it is now usual to infer thevalue of a statistical life by examining insurance outlays, or other kinds ofdefensive expenditure.

To measure amenity effects, TCM and HPM provide data based,respectively, on the cost of travel to a site, and differences in propertyvalues due to environmental causes. CV can also be used to probe publicpreferences.

CV is the only practical method of uncovering existence value (e.g.preservation of rare species, biodiversity for its own sake), since all theother methods are concerned with various kinds of direct user benefitsand costs. It is also the only source of evidence on the value of futurechanges in environmental quality.

Obviously, not all these methods should be pursued in each case; thechoice should be made according to:● which type of impacts are more prominent;● what information is available and feasible;● resources available to the analyst.

Further information: The Economic Appraisal of Environmental Projectsand Policies: A Practical Guide, OECD, 1995. Values for theEnvironment, ODI,1991.

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14Chapter

Contents

The EC and Development Co-operation 279The EC Financing Framework for Development Co-operation 281

EC Funding Sources forthe Application of the Strategic Approach

14This part of theGuidelines describesthe EC financingstructures fordevelopment co-operation, and thevarious fundinginstruments throughwhich support can beobtained for water-related activity.

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EC Funding Sources forthe Application of the Strategic Approach

The EC and Development Co-operation

The European Commission operates its programme of development co-operation alongside those of EU member countries and with theirsupport. Co-operation is provided in the form of direct grants based onpartnership agreements with recipient countries. EC co-operation hasevolved over the 30 years since the Treaty of Rome embodied theprinciple of co-operation through partnership with Sub-Saharan African,Caribbean and Pacific (ACP) countries. The Treaty also established theEuropean Development Fund (see below). The EC is presently the fifthlargest DAC donor.

The EC’s grouping of recipient countries does not match thoseestablished by other international bodies or used by other donors or theOECD; their basis is purely historical, depending on links created by EUmembers with specific countries in the pre-independence past. The 70ACP states do not form a geographically contiguous group and are allmembers of other geographically based regional organisations.

Within the EC, responsibility for managing development co-operationis divided between three regionally defined Directorates-General (DGIAcovering Eastern Europe and the former USSR; DGIB covering theSouthern Mediterranean, Middle and Near East, Latin America and Southand South-east Asia; and DGVIII covering the ACP states). Their mandatesalso cover foreign relations and trade which gives them a wider remitthan other donor agencies. All the Directorates-General are organisedslightly differently, and as already noted their regional coverage isunusual. Co-operation, which takes the form of grants, is providedthrough a wide range of funding instruments (see below) and extendsbeyond project assistance to cover ‘programmable aid’ which includesstructural adjustment, risk capital, commodities support (Stabex andSysmin)1, emergency aid and food aid.

There has been a general lack of public awareness of the value of ECassistance. As an innovative model of North-South co-operation, theLomé Convention (see below) is little understood outside the Europeandonor community. Because of the complexity and fragmentation of the

1 Stabex provides compensation for losses of export earnings from non-metal commodities andSysmin for mining.

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programme, the influence of the EC in development issues may not havebeen as strong as that of other donors, even though its level of funding isrelatively high. This chapter aims to provide an explanation of the ECapproach to development co-operation and gives examples of thefinancial support available.

The Lomé ConventionEC development co-operation started in 1958 with a five-yearprogramme, followed in 1964 by the first Yaounde Convention betweenthe EC and 18 associated states in Africa. A second Yaounde Conventionwas agreed in 1970, followed in 1975 by the first Lomé Conventionwhich considerably extended EC assistance to cover the ACP countries.The Lomé Convention is an international aid and trade agreementbetween the ACP group and the EU, designed to support the developmentefforts of the 70 ACP states. Four such Conventions have been signed todate, at five-year intervals: Lomé I was signed in 1975, Lomé II in 1979,Lomé III in 1985, and Lomé IV in 1990.

The current Convention, Lomé IV, covers the ten-year period 1990-2000 and is the most extensive development co-operation agreement inexistence, both in terms of scope (aid and trade), and in the number ofsignatories. ACP co-operation, according to the Convention, is to bebased on partnership, equality, solidarity and mutual interest. TheConvention also recognises the principle of sovereignty and the right ofeach ACP state to define its own development strategies and policies, aswell as its situation regarding the respect and promotion of human,social, political and economic rights.

Debate has now opened on future EU-ACP relations for the 21stcentury as the present Lomé Convention terminates in 2000. Theconclusion of the GATT Uruguay Round and the creation of the WorldTrade Organisation have opened up world trade, making it necessary toreview the preferential trade agreements negotiated under Lomé. Otherinternational developments, notably the end of the Cold War andsubsequent geo-political shifts have had a profound effect on allinternational activities including development co-operation. The long-term implications of these upheavals are still not fully assimilated or evenunderstood, but they will have a bearing on the negotiations for any newLomé Convention. This will ultimately rebound on programme andproject funding, in the field of water resources management as in others.

The EU has grown since Lomé IV was signed; three new countries withestablished commitments to developing countries have joined (Austria,Finland and Sweden). Further countries may join in the next few years;monetary union will also have an as yet unknown impact. Under theMaastricht Treaty, the EC and Member States are required to increase theco-ordination and complementarity of their respective aid programmes.

Priorities for the new programme are set out in the ECCommunication to the Council and European Parliament (October 1997),which identifies three priority areas for support: growth, competitivenessand employment; social policies and cultural co-operation; and regionalintegration. In all areas of co-operation there are three principles to beapplied: strengthening institutional support and helping build local

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capacities; adopting a gender-sensitive approach; and integrating theprinciples of conserving natural resources and protecting theenvironment. These Guidelines have included all these aspects as relatedto water resources.

Development co-operation with other regionsAlthough the ACP group is by far the largest recipient of EC co-operation,the EC also provides assistance to Asia, Latin America, the Mediterraneanand Middle East (including parts of Southern Europe) and the Central andEastern Europe and the Newly Independent States of the former SovietUnion (CEES/NIS).

In the 1990s EC co-operation with the southern Mediterraneancountries and the Middle East increased significantly. A new regionalMediterranean Policy was adopted and the level of co-operation increasedfrom ECU 1.8 bn (1986-90) to ECU 4.1 bn (1991-95, just over 12% of thetotal for this period). Co-operation in municipal water and wastewatertreatment is important in this region.

The EC provided no development co-operation to Asia and LatinAmerica (ALA) until the late 1970s. The European Council Regulation of1981, revised and strengthened in 1992, is the official basis for budgetaryallocations to ALA. Development co-operation with ALA is thus relativelyrecent. The level of commitments has grown from ECU 2.4bn (1986–90)to ECU 4.4 billion (1991–95, just over 13% of the total for this period).This is modest for the size of the region and amounts to only one third ofresources allocated to the ACP countries. The main focus of water-relateddevelopment activity in Asia has been irrigated agriculture and floodcontrol. In Latin America, water-related activity includes water supply andsanitation, wastewater treatment, and irrigation. Framework Agreementsare negotiated on an annual basis with ALA countries and these form thebasis for action.

In the late 1980s, as the Cold War came to an end, the EC became amajor donor to the Central and Eastern Europe and the NewlyIndependent States of the former Soviet Union (CEES/NIS) through thePHARE and TACIS programmes respectively and several budget lines. Thisregion is of significant strategic importance to Europe and the volume ofco-operation grew rapidly to ECU 9.7 billion during 1991–95 (29% of thetotal EC co-operation in that period). The EC contribution together withbilateral assistance from member countries accounts for 70% of all co-operation in this region.

The EC Financing Framework for Development Co-operation

These Guidelines apply in particular to EC development co-operation asadministered by Directorates-General IB and VIII but most aspects are alsorelevant to DGIA and other EU institutions such as the EuropeanInvestment Bank. The funding mechanisms relevant to programmes andprojects can be divided into three categories: European Development

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Fund (EDF) grants administered by the Commission; Budget Lines; andEDF subsidised loans through the European Investment Bank. The boxprovides a breakdown of EC development co-operation according tofunding instrument and region for the period 1991–1995.

European Development FundThe European Development Fund is the principal EC funding instrumentfor the 70 ACP states, many of which are among the poorest in the world.The EDF has been in operation for 40 years and is a unique partnershipbetween the EU member states and the ACP countries and a majormechanism of North-South co-operation. The Lomé Convention forms itsbasis.

Finance for the EDF is provided directly by the EU member countriesand not from the EC Budget. The EDF is mainly administered by DGVIIIwith a small sum allocated to the EIB (see below). The Fund is replenishedevery five years following EU-ACP negotiations. In 1995, agreement wasreached on EDF8 with a slight increase in the total contribution from EUmember countries from ECU12,000 million (1991–95) to ECU 14,625million (1996–2000). The EDF accounts for approximately 41% of thetotal EC development co-operation budget. Half of this is for projectassistance; the remainder covers programme co-operation as shown in thebox opposite.

EDF resources are committed to meeting priority needs relating tohuman development including food security, infrastructure developmentand industrial development. The fourth Lomé Convention refers to waterin several Articles (14, 44 and 54 to 57)2 although there is no specificwater policy. Water management and the use of water for human andeconomic needs is relevant to most priority areas outlined in theConvention.

The level and utilisation of allocations to each recipient country isbased on individual agreements called National Indicative Programmes(NIP) between the EC and the country concerned. In the present NIPs,water-related investments are considered important to a majority of ACPstates. A significant portion of the EDF funds, 9% of EDF8, are allocated toregional co-operation and this is given special coverage in Title XII of theLomé Convention; support is given to recipient countries in this contextunder Regional Indicative Programmes (RIP). Natural resourcesmanagement through regional co-operation is specifically mentioned andthis is particularly pertinent for transboundary river problems.

Budget LinesThese are allocations of funds written into the EU budget targeted atspecific types of activities or locations and covered by a legal frameworksuch as a Council Regulation, a decision of the European Council,General Conditions or Community budget allocations. Each budget line isallocated a sum for disbursal, in the form of grants over a specific timeframe. There are no Budget Lines specific to water resources but several

2 Lomé Convention Art. 14: objectives and guidelines of the Convention in the main areas ofco-operation, Art. 44, agricultural co-operation and food security, Art. 54–57, drought anddesertification control. ACP-EU Courier, No 155, January-February 1996.

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ACP13.8

(41.3%)

7.2 approx.0.1 0.7 2.8 3.0 7.0

Global1.4

(4.2%)

ALA4.4

(13.2%)

MED4.1

(12.3%)

CEEC/NIS9.7

(29%)

DGIBDGVIII

RegionaldistributionTotal 33.4

Project aidTotal 20.8(62.3%)

3.6 2.9 0.7 1.6 1.1 2.7

Programmeaid

Total 12.6(37.7%)

EuropeanDevelop-

mentFund10.8

Budget Lines 22.6Source offunds

Total EC aid: ECU 33.4 bn

1 All figures are in ECU billion and rounded.2 EIB, which also manage funds from the EDF are excluded from this summary.3 Project aid: mainly grants for projects under NIP and RIP4 Programme aid includes: Structural adjustment (inc. Stabex and Sysmin for ACP region), food aid, support

to NGOs, humanitarian aid, risk captial.Source: ODI Inventory of EC aid, 1996

In the light of the importance of BWSS projects, a ‘Global evaluation of rural watersupply projects in West Africa’ was carried out in 1996–97. It examined in particular therole of different actors in water points management and financing aspects.Recomendations from this study have been taken into account in the preparation of theGuidelines.

Diagrammatic summary of EC aid (period 1991–95 inclusive)

budget lines provide funding for water. These Guidelines provide astrategic basis for support to water resources within the budget lines.

All DGIB funding is through budget lines; there is no equivalent to theEDF for non-ACP countries. There have been many budget lines for theMediterranean region. The most important are B7-4051 for the Maghreband Mashreq countries and B7-4080 for horizontal co-operation betweennon-state actors and the EU. The latter provides a mechanism, under thenew Mediterranean policy to provide support to local authorities andwater agencies other than central government. For example, the MED-URB programme covers support for co-operation between local authoritiesin the EU and Mediterranean countries to improve urban managementincluding water-related issues. The two most important budget lines forthe ALA region are B7-300 (Financial and Technical Assistance toDeveloping Countries of Asia – previously B7-3000), and B7-310(Financial & Technical Assistance to Developing Countries of LatinAmerica – previously B7-3010).

DGVIII also provides funds via budget lines. One of these is B7-6000which is designed for the provision of grants to NGOs working at thecommunity level to build up community capacities for managing andfinancing their own development schemes. The EC partnership withNGOs is reviewed below.

Another budget line – which also indicates the importance attached inDGVIII to the need to reach out into grassroots communities and improveparticipatory frameworks – is budget line B7-5077: Decentralised Co-operation with Developing Countries. Although the level of funding forthis budget line is modest, it is innovative and has interesting potential inrelation to the international consensus related to water, given its stress onuser participation in service delivery. For this reason it is described morefully below.

Another budget line pertinent to water resources is B7-6200 whosedesignated purpose is for environmental activity in developing countries.This budget line is jointly managed by DGIB and DGVIII and is used topromote policy development and the implementation of pilot projects.The funds available are relatively small as the activities it supports areintended to complement or help facilitate projects funded under themuch larger EDF or other budget lines.

Apart from DGIA, DGIB and DGVIII, other Directorates-General havebudget lines that include funding for water-related activities. The mostimportant is DGXII (Science Research and Development) where aproportion of the funds is allocated for collaborative research betweenEuropean and developing country researchers. There are budget lines inother Directorates-General such as DGXI (Environment) and DGIII(Industry) that have direct relevance to water but not necessarily todevelopment co-operation.

Decentralised Co-operationDecentralised Co-operation (DC) is a funding instrument designed toenable the EC to contribute to the development process outside theconventional development co-operation frameworks. DC emerged in the1980s as a result of several interconnected phenomena. Increased

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enthusiasm for democracy and human rights had brought fresh insightsinto the role of civil society and its representatives in the developmentprocess. More attention was therefore being paid to the role of non-governmental and community groups as organised expressions of civilsociety, and to their potential role in participatory development designedto achieve lasting social and economic benefits among low-incomegroups. At the same time, ways were being sought to reduce the role offormal state institutions in the management of services and increase theemphasis on good governance and subsidiarity.

In DC activities, the central government facilitates but does not have adirect involvement in the programme or project. DC funds are channelleddirectly to NGOs and organisations outside the formal governmentalapparatus, and to local public authorities. However, DC cannot workeffectively unless central government is fully committed and supportive.Local government institutions, co-operatives, NGOs, companies andbusiness interests, both in the North and South, which are capable ofcontributing to the social and economic growth of developing countriescan all be involved.

There are four strategic principles on which DC should be based:● A wide range of players should be included in the development

activities in such a way that they participate in the decision makingand management process at each stage of the activity;

● A programmatic approach should be adopted aiming at implementinga coherent set of complementary actions;

● A support process should be established for capacity building andcontrol of local development initiatives by decentralised actors;

● A redefinition of the roles is needed of the different actors to permitthe transition in the role of the state towards the facilitation of aprocess and an enabling environment.

DC is therefore primarily designed to enhance the role of civil society inthe development process. It also enables resources to be spent in such away as to help popular institutions in partner countries become moreautonomous. The use of DC aims to achieve the following: (1) Ensurecollaboration at different levels of the various economic and social playersand agents; (2) Encourage the active participation of direct beneficiaries indecision-making and at all stages of programmes which concern them; (3)Foster equitable and sustainable social and economic developmentthrough participation; (4) Involve a wide range of both Northern andSouthern NGOs in co-operation programmes and thus spread the impactof EU activities; and (5) Incorporate the local dimension in developmentactivity, with increasing attention to decentralisation and regionalisation.The EC has had considerable success with this innovative funding sourcebut it is important that unrealistic demands are not be placed upon theagents, and that DC itself not be regarded as a panacea.

DC uses flexible forms of administrative and financial management. Itis thus adaptable to the existing capacities of partner organisations andtheir financial or technical limitations. At its core is a strong commitment

to participation, not as a peripheral activity whereby communitiescontribute to programmes in the form of free labour or one-off levies, butas a built-in programme design and management feature. Fullparticipation, which the partner group or agent is expected to engender,applies to the whole ‘project cycle’ from the initial idea throughidentification, planning, preparation, implementation and evaluation.The quality and degree of participation at each level will determine how‘decentralised’ the management of the project actually is in practice.

The formal concept of DC was first introduced in articles 20 to 22 ofthe fourth Lomé Convention. These articles concern the objectives andprinciples of co-operation, the objectives and orientations of theConvention in the main co-operation fields, the agents of co-operationand their eligibility for funding. Likewise, DC is included in CouncilRegulation 443/92 relative to economic co-operation with Asia and LatinAmerica. A specific DC budget line has been introduced, and a specialunit established within the EC to provide a clear incentive for DC and todraw in local authorities, universities and NGOs. The budget is small; itsupports micro-projects and preparatory projects to strengthenappropriate organisations in developing countries and in Europe, and tocreate North-South and South-South partnerships and networks.

DC is applicable in all EC’s target regions for development co-operation. Regional and country differences mean that there are differentDC priorities and emphases in different settings, reflecting the level ofdevelopment, the range and effectiveness of existing social and economicstructures, the relative importance of the public and private sector, andtheir social and political systems. DC can be applied in numeroussituations, either as a component of a larger programme, as support tonascent local authorities to reinforce capability and promote localgovernance or simply as a mode of implementation of targeted actionssuch as basic water supply and sanitation services.

In the preparation phase of a DC activity, the central issue is not theactions to be undertaken but the identity of the agents involved, theirroles and their responsibilities. Identifying the key institutions(institution mapping) is therefore very important. Partnership should notbe limited to recognised organisations, which means that partnerorganisations will be at varying levels of competence, experience, capacityand structuring. Care is needed to ensure adequate technical support isavailable, as often the enthusiasm of local agents is not matched byprofessionalism, leading to inappropriate or poorly designed technicalsolutions.

DC relies less on regulations and specific procedures and more on aprocess which entails dialogue, consultation with and participation of theagents. Because of the variety of partnership organisations and their ownvarying capacities and agendas, DC requires flexibility and cannot beapplied within a rigid formula. For this reason, a rigid application of PCMprocedures is difficult to achieve in DC. An approach is needed which

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allows for readjustments during the different phases of the cycle andmore delegation of power to the operator during implementation.

An EC manual on Decentralised Co-operation is presently underpreparation.

Review of EC partnerships with NGOsApart from the specific interventions under the Decentralised Co-operation budget lines, the EC attach importance to their work withNGOs. Co-operation with development NGOs started in 1976 and appliesto the co-financing of development actions in developing countries andto public awareness actions in Europe. The corresponding Budget Line(B7-6000) has increased from ECU 2.5m in 1976 to ECU 200m in 1997,excluding NGO activities in food and humanitarian aid and specialprogrammes.

NGO activities are particularly important in the provision of basicwater supply and sanitation services (BWSS). Between 1990 and 1997, theEC funded 655 BWSS projects in 42 ACP countries through NGOs. InWest Africa, NGO projects represent about 40% of the total ECinvestment in BWSS projects. A wide diversity of NGO projects aresupported either directly for infrastructure or equipment (wells,boreholes, water supply networks and sanitation facilities) or for otheractivities such as education, health or awareness raising.

As NGOs tend to work at the grassroots level with the localpopulations, their involvement in water-related projects have manyadvantages over projects carried out without NGO involvement. Inparticular, participation by the local population in infrastructureconstruction is increased, resulting in more motivation for equipmentmaintenance and sustainability. An NGO can also create a more stableenvironment leading to further projects and continuity in developmentand monitoring.

NGOs often rely on beneficiaries and local community organisationsfor execution of work. This participatory form of development must bewell managed and selection of the NGO is important; they should haveadequate experience in BWSS and be apolitical. Traditionally NGOactivities result from user demand; their projects may remainunrecognised in formal planning procedures and there may be little or noco-ordination with government or with other local projects. It is thereforenecessary to ensure that policy conflict does not occur; for exampleofficial efforts to encourage beneficiaries to pay for their water supplymay be in vain if an NGO provides services without paymentrequirements (or vice versa).

Experience has shown that a partnership between NGOs, localauthorities and technical experts provides the best platform for providingservices of adequate technical quality, safe water of adequate quantity andinfrastructure that is appropriate and sustainable. In particular, NGOshave proven their ability to obtain local acceptance of paying for water

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services, both for maintenance and the eventual replacement ofequipment. In West Africa, this has come about as a result of insuring thatthere is a high return from the collected funds. Experience has also shownthat capacity building takes time, and a long-term commitment totraining beyond the project cycle period often proves necessary.

An assessment of the NGO capacity before and after the financingstage is needed to ensure adequate human, financial and technical meansto undertake projects. Knowledge of the growing difficulty of watermanagement in rural areas is more important than the volume of financeor the number of employees. As part of an evaluation of rural watersupply and sanitation projects in West Africa, the importance of NGO co-financed BWSS projects was highlighted. A specific evaluation of NGO co-financed projects has therefore been undertaken.

Further References: EU-ACP Co-operation in 1995. EC, 1995. EC-ACPLomé Convention ACP–EU Courier, No. 155, January–February 1996.Challenges and options for a new partnership. Green Paper on relationsbetween the European Union and the ACP Countries on the eve of the 21stcentury. EC, 1997. Guidelines for the negotiation of new co-operationagreements with the African, Caribbean and Pacific (ACP) countries,Communication to the Council and European Parliament, 1997.Evaluation Globale des Projets d’Hydraulique Villageoise en Afrique del’Ouest, Hydro R&D, 1997.

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15Chapter

Contents

Standard format terms of reference for a water resources country study 291Standard format terms of reference for a pre-feasibility study 300Standard format terms of reference for a feasibility study 311Standard format terms of reference for an evaluation study 322

Standard formats forterms of reference

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Standard formats forterms of reference

1 Standard format terms of reference for a Water Resources Country Study

A water resources country study is required during the Programmingphase to ensure at an early stage in the Project Cycle that theprogramming of EC support is based on a realistic assessment of thenational problems, opportunities, priorities and constraints, and of therole of the donors.

The Terms of Reference are to be drawn up by the EC Unit/Delegation incollaboration with the partner country.

Guide for preparing Terms of Reference

This standard format is for use in preparing Terms of Reference for awater resources country study. It is based on the logical frameworkand provides an outline of the approach and the issues for study.For more information on these issues, see Chapter 6 (Programming).

This standard format should be used to prepare the detailedTerms of Reference for individual country studies, in each casefilling in and describing the specific requirements. The text inshaded boxes will assist in identifying the individual requirementsfor the study. It should be stressed that clear formulation will helpensure that all relevant issues are considered, thus enablinginformed decision making.

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A Study background

The co-operation agreement [……..............………, e.g. National/RegionalIndicative Programme (NIP/RIP)] signed by the Government of […………]and the European Commission (EC) in [……...……../………………] reflectsthe EC’s willingness to support water resource development co-operationin [………………] as a means to develop the economic, social andenvironmental potential of [………………….].

Within the framework of this agreement, the EC has received a requestfrom [………., e.g. the National Authorising Officer] to help identifypriority areas for support by the EC and to help prepare a coherentstrategy for water resources development co-operation to ensuremaximum effectiveness, efficiency and sustainability of future support bythe EC.

The study is required as part of the Programming phase to ensure atan early stage in the Project Cycle that EC support is based on a realisticassessment of the national problems, opportunities, priorities andconstraints. It will complement and deepen the initial assessment whichwas made by using the checklists presented in Chapter 6 (Programming).

B Study objectives

The study will provide decision makers in the […………] Governmentand the European Commission with a proposal for a coherent countrystrategy for Water Resources Development Co-operation. It will givesufficient background information and justifications to enable theGovernment and the EC to make an informed decision on future co-operation. The study should facilitate the continuous policy dialoguebetween the partners and improve the participation of all stakeholders inthis process. This will strengthen the country’s capacity to implement itsNational Water Resources Programmes or other broader planningframeworks.

This section should contain further detailed information orreference to relevant documents such as studies and evaluationreports.

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C Study results

The study will deliver the following:● An EC water resources development co-operation strategy for

[……………], including:i. background information on water resources,ii. definition of water resources issues (constraints and opportunities)iii. definition of priority areas for EC co-operation, and their

assessment with regard to the EC’s strategic approach and generalprinciples of Water Resources Development Co-operation,

iv. definition of mechanisms for improved co-ordination between theEuropean community, the Member States of the Community andother donor and financing agencies,

v. definition of policy and operational constraints which need to beresolved before assistance can be initiated;

● Recommendation for the next steps and further action to be taken[possibly, outline for new project/programme ideas, detailed Terms ofReference for pre-feasibility or feasibility studies];

● Strengthened national capacity in sectoral analysis and programmeidentification through active participation of the major stakeholdersconcerned.

D Issues to be studied

The main issues to be studied are outlined below. Detailed analysis ispresented in Appendix I: Format for the Water Resources Country StudyReport.● An analysis of water resources, identifying the main characteristics in

and contribution to the economic, social and environmentaldevelopment of the country. The analysis will include an assessmentof:i. macro-economic setting, development objectives and policies; ii. institutional settings and processes;iii. the principal stakeholders, their roles and interests, and possible

conflicts between these stakeholders;iv. the resource base and its potential, including access to

transboundary waters and considerations of ‘virtual water’;v. current and estimated future demand and supply of surface, soil

and ground waters;vi. regional and international agreements;vii. relevant revenues and financing;viii. cross-sectoral links.

This section of the Terms of Reference should contain information(where known) about the broad issues, or gaps in presentknowledge, to be studied. Use Chapter 6 (Programming) andelements of Chapter 7 (Identification) to identify the main issues.

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● Based on the above, an analysis of the principal issues indevelopment, including issues relating to (i) production and trade, (ii)protection and conservation, and (iii) participation of the variousstakeholders in development. The analysis will result in theidentification of a set of national priorities (constraints and/oropportunities) for water resources development and management.

● An assessment of the compatibility of national priorities with thestrategic principles of EC assistance, as defined in these Guidelines(using the principles set out in Chapter 2 as the point of reference).This assessment will lead to the identification of shared priority areasfor co-operation.

● An assessment of the possibilities and mechanism for improved co-ordination and coherence with on-going and planned assistance fromthe Member States, other bilateral and multilateral donor agencies andinternational financing institutions. This will help to avoid overlapsand improve the efficiency of external assistance.

● An assessment of policy (including legal), institutional and operationalconstraints to the co-operation in the identified priority areas and thewater resources in general. Based on this assessment, a proposal willbe developed on the issues which need to be resolved, before co-operation begins. This is a necessary step towards developing acoherent approach.

These lists of issues are not exhaustive. The consultants are required touse their professional experience to review and bring to the attention ofthe Government and the EC all relevant factors.

E Work plan

On the basis of the proposed time schedule outlined in the Terms ofReference, the consultants will prepare a work plan for the study, presentthis in their offer, and report on the approach taken in the study report.

The more detailed issues to be included in the Terms of Referencewill be identified during a preliminary assessment, using thechecklists presented in Chapter 6 (Programming). If possible, thispreliminary assessment and the establishment of the Terms ofReference should be done in collaboration with the main waterresources institutions of the country.

This section suggests an approach to the study, and lists keyresource persons and organisations to be consulted. The consultantsmay propose alternative approaches to collecting information andcarrying out the study.

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The work plan should set out the consultants’ approach to the followingactivities:● fact finding/data collection/surveys;● local/national/regional workshops and consultations to be held during

the process with stakeholders at various levels; training to be given tolocal/national/regional counterparts during the process;

● co-ordination of the activities of the European Community with thoseof Member States, and bilateral and multilateral aid/financinginstitutions;

● identification of possible options for the proposed strategy;● analysis of options and constraints;● preparation of the draft and final country study report.

F Expertise required

For each expert proposed, a curriculum vitae, of no more than four pages,should be submitted.

G Reporting

The consultants will present the briefing report (10-15 pages) within[……….] weeks. This report will set out the various options in sufficientdetail to enable an informed decision to be made on the preferred option.The conclusion of the study should be presented in a report in the formatset out in Appendix I. The underlying analysis is to be presented in theappendices of the report.

A draft water resources country study ([…….] copies) will be presentedto […………….] for comments by [date]. Within […..] weeks, commentson the draft country study report will be received from [list ofauthorities].

This section specifies the expertise (qualification, experience)required for each person assigned to the study.

Country studies require multidisciplinary analysis at all levelsand for all relevant sectors, demanding at least the following areasof expertise: policy, planning, resource economics, institution andcapacity building. Technical specialists (in water resourcemanagement, industry, environment/conservation etc.) should beincluded as indicated by the preliminary assessment of priorities,using, where possible, local/national experts.

This section specifies the types of reports required, the language inwhich they should be written, the date of submission, the numberof copies required and the recipients. The format of the report for awater resources country study is presented in Appendix I.

The consultants will take account of these comments in preparing thefinal water resources country study report (30-40 pages excludingappendices). The reports will be in [language] and [……] copies will besubmitted to [………..] by [date].

H Time schedule

The consultants should respond to this timetable in their offer, indicatingwhether and how they can adhere to or improve on it.

I Assistance to the consultants by the ContractingAuthority

The Contracting Authority will make available the following informationand facilities to the consultants’ staff:● All relevant report, documents, maps and data;● Where available, office space, furniture, and access to computers and

communication facilities;● Where available, the use of vehicles and drivers;● Counterpart staff.

The Contracting Authority will facilitate:● Entry and exit visas for the consultants’ expatriate staff;● Any permits required for the consultants’ staff to carry out their

duties within the country;● The import and export of personal belongings of the consultants’

expatriate staff during the execution of the contract, and ofequipment for the study in accordance with the provisions of the[…………; specify the co-operation agreement, e.g. Lomé Conventionor similar agreements].

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A time schedule should be prepared for each element of the workplan (section E) and of the reporting requirements (section G).

This section specifies assistance to be made available by theContracting Authority to the consultants including data,documents, offices, transport, counterpart staff, facilitation of theentry and exit of expatriate personnel and any study equipmentrequired.

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Appendix I: Standard Reporting Format for a WaterResources Country Study

Maximum length excluding appendices: 30-40 pages.

The following text should be appear on the inside of the cover:

This report is financed by the [………..; source of financing, e.g. EuropeanDevelopment Fund] and is presented by [name of consultant] for theGovernment of [………..] and the European Commission. It does notnecessarily reflect the opinion of the Government or the European Commission.

1. Summary

2. Background

For example:● macro-economic setting, development objectives and policy,● institutional settings and processes,● the principal stakeholders, their roles and interest, and possible

conflicts between them,● the resource-base and its potential,● current and estimated future demand and supply and balances,● regional and international agreements,● relevant revenues and financing,● cross-sectoral links.

3. Main issues and priorities for co-operation

The report must be structured using the headings given below.Under each heading, a list of key words and explanatory notes isgiven to indicate the topics to be handled in that part of the report.These key words and explanatory statements refer to the main issuesconsidered in Chapter 6 (Programming). It is essential, therefore, touse these guidelines to gain a full understanding of the reportingrequirements.

Identification of principal issues in water resources development,including issues relating to:● the institutional environment for water resources development and

management,● water resources and its sustainable use, ● participation, knowledge and expertise linked to water resources.

Part I of the Guidelines gives more information on these issues. Theanalysis will result in the identification of a set of national priorities(constraints and/or opportunities) for water resources development co-operation.

4. Compatibility of national priorities with EC principles

Compatibility of national priorities with the strategic approach andgeneral principles of EC assistance, as defined in the Guidelines (usingPart I as the point of reference). Identification of shared priority areas for co-operation.

5. Co-operation and co-ordination

Possibilities and mechanism for improved co-ordination and coherencewith the on-going and planned assistance from Member States, otherbilateral and multilateral donor agencies, and international financinginstitutions. This will help to avoid overlap and improve the efficiency ofexternal assistance.

6. Constraints to co-operation

An assessment of policy (including legal), and operational constraints toco-operation in the identified priority areas and water resources use andmanagement in general. Based on this assessment, a proposal will bedeveloped on issues which should be resolved before co-operation begins,or during the initial stages.

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7. Proposed co-operation strategy

Description of:● objectives;● priority areas (Focus Areas) for co-operation;● co-operation arrangements, including those for counterpart

institutions and any mechanism to be used in providing EC assistance;● specific interventions to be supported (project briefs to be presented in

Technical Appendix 1);● estimation of the overall budget for co-operation.

8. Proposed next steps

Suggested action, e.g. pre-feasibility and/or feasibility studies (Draft Termsof Reference to be presented in Technical Appendix 2), issues to benegotiated between the EC and the government, action needed by thegovernment, issues relating to donor co-ordination, etc.

Administrative appendices to the water resources country study report

1. Study methodology/work plan (2-4 pages).2. Itinerary (1-2 pages).3. List of persons/organisations consulted (1-2pages).4. Literature and documentation consulted (1-2 pages).5. Curricula vitae of the consults (1 page per person).

Technical appendices to the water resources country study report

1. List of proposed action to be taken (1-2 pages per action).2. Outline of the respective Terms of Reference.

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2. Standard format Terms of Reference for a Pre-feasibility Study

A pre-feasibility study is required in the Identification phase of the projectcycle to ensure all problems are identified, alternative solutions areappraised and the preferred solution meets the sustainability criteria. Thepre-feasibility study should determine whether the proposed waterresources intervention is well founded and likely to fulfill the needs of theproductive and social sectors.

The Terms of Reference are to be drawn up by the EC Unit/Delegation incollaboration with the partner country.

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This standard format is for use in preparing Terms of Reference for apre-feasibility study in water related projects and programmes. It isbased on the logical framework and provides an outline of theapproach and issues for study. For more information andunderstanding of the issues, see Chapter 7 (Identification).

Use this standard format to prepare the detailed Terms ofReference for pre-feasibility studies, in each case filling in anddescribing the specific requirements. The text in shaded boxes willassist in identifying the individual requirements for the study. Itshould be stressed that clear formulation will help ensure that allrelevant issues are considered, thus enabling informed decisionmaking.

A water resources country study was carried out during theProgramming phase to ensure at an early stage in the Project Cyclethat the programming of EC support is based on a realisticassessment of a country’s national problems, opportunities,priorities and constraints. It complemented and deepened theinitial assessment which was made by using the checklists presentedin Chapter 6 (Programming).

Comments on the findings of the study, decisions taken and thereport are attached to the Terms of Reference. The pre-feasibilitystudy ensures that, for a proposed water resources intervention, allproblems are identified, alternative solutions are appraised and thepreferred solution meets the sustainability criteria. The pre-feasibility study should determine whether the proposed project orprogramme is well founded and likely to become economically,socially and environmentally sustainable.

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A. Study backgroundThe European Commission (EC) has declared its willingness to providewater resources development co-operation in [………………] region of thecountry, as a means to develop the economic, social and environmentalpotential of this region. This is reflected in (i) [………….., e.g. co-operation agreement, National/Regional Indicative Programme (NIP/RIP)]and signed by the Government of [……………] and the EC in[………………../…………………], or (ii) in response to a project proposalpresented by […………. NGO or other institution] to the EC.

The EC has received a request from [……………, e.g. the NationalAuthorising Officer, NGO or institution] to [describe the proposed waterresources intervention].

A pre-feasibility study is required in the Identification phase of theProject Cycle to ensure all problems are identified, alternative solutionsare appraised and the preferred solution meets the sustainability criteria.

B. Study objectivesThe study will provide the decision maker in the [………….] Governmentand the European Commission with sufficient information to justifyacceptance, modification or rejection of the proposed [water resourcesintervention] for further formulation.

C. Study resultsThe study will deliver the following:● An analysis of the role of the proposed [water resources sector

intervention] in the economic, social and environmentaldevelopment of [……….. country];

● An analysis of the relevance of the proposed [water resourcesintervention] and identification of possible options to address theexisting economic, social and environmental problems;

● An assessment of the feasibility of the proposed [water resourcesintervention] with regard to technical, economic and financial,institutional and managerial, environmental, and socio-culturalaspects compared to other options;

● The selection of the preferred option, detailing the expected benefitsto the people of [………… region], a preliminary indication of theproject results and activities, required resources, timing/phasing andestimated costs, and a preliminary logical framework;

● An assessment of the potential sustainability of the project resultsafter completion, including, for example, maintenance and securefinancial resources for continued operation;

● Recommendations for the following steps and further action forproject formulation [possibly, detailed Terms of Reference for thefeasibility study incorporating a Draft Financing Proposal].


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D. Issues to be studied

The main issues to be studied are outlined below. Detailed issues foranalysis are presented later in Appendix I: Standard reporting format forthe pre-feasibility study. The logical framework approach set out in theEC manual Project Cycle Management (PCM Manual) should be applied.

The study will assess these issues and provide information on andanalysis of the relevance, feasibility and sustainability of the proposed[water resources intervention].

(i) The relevance of a possible intervention, as determined by: itscoherence with the country’s macro-economic environment, and theeconomic, social or environmental sector demanding additional waterresources intervention; the consistency with the overall national/regionaldevelopment objectives specified in the [.……….e.g. National WaterResources Programme, National Environmental Action Plan, National orRegional Indicative Programme]; and the compatibility andcomplementarity of these projects with other projects relevant to water.

The consultants will study:● How the proposed [water resources intervention] responds to the

demands of the economic, social and environmental sectors asexpressed by […………. specify the potential beneficiaries and targetgroups];

● How the proposed [water resources intervention] is coherent with theoverall framework of national development objectives and theeconomic, social and environmental development polices of therelevant ministries of the Government of [……………];

● The nature, number and type of beneficiaries the proposed [waterresources intervention] potentially affects;

● All organizations and agencies affected by or involved in theproposed [water resources sector intervention] and the intendedimprovement of the social, economic and environmental situation;

● All major problems experienced by the supposed beneficiaries of theproject and by any other parties likely to be involved, the causalinterrelationships of these problems and the intersectional links;

This section of the Terms of Reference should contain information(where known) about the broad issues, or gaps in presentknowledge, to be studied. The specific problems which may betackled by the proposed water resources intervention should bepresented here. Use Chapter 7 (Identification), or the CountryStudy Report, if available, to identify the following issues:● policy framework and support measures;● appropriate technology and technical matters;● environmental protection;● socio-cultural and gender aspects;● institutional and management capacity, public and private;● economic and financial aspects.

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● Other interventions or priorities of ministries, agencies and donorsthat may affect or be affected by the proposed [water resourcesintervention];

● Information from previous studies and evaluations relevant to theproposed [water resources intervention].

This information is to be presented in Section 2 (Background) of thepre-feasibility study report (see Appendix I).

(ii) The feasibility of the proposed [project outline] determined by ananalysis of the technical options consistent with the economic,environmental, social and institutional framework. This analysis ispresented in Technical Appendix 4 to the study report. From acomparison of these options, the consultants will prepare arecommendation for the project to be structured as follows:● Overall objectives: Why is the project important to the target groups

and beneficiaries, the region and the government? What is thedesired economic, social and environmental development/impact [aspossibly expressed in the Indicative Programme]?

● Project purpose: Why do the target groups and beneficiaries need theproject?

● Project results: What products and services will the project deliver tothe target groups and beneficiaries? What assumptions are requiredto achieve the project purpose?

● Project activities: What is the broad scope of activities to beundertaken and what are the associated assumptions for achievingthe project results.

The project purpose and results should be measurable by objectivelyverifiable indicators, and project activities should be quantified whereverpossible. This information is to be presented in Section 3 (Intervention)and Section 4 (Assumption) of the Pre-feasibility Report (see Appendix I).

(iii) A preliminary indication of any pre-conditions, an initial costestimate, and possible project phasing and organisation. Thisinformation is to be presented in Chapter 5 (Implementation) of the Pre-feasibility Report (see Appendix I).

(iv) Potential sustainability of the proposed project as determined by anassessment of the key sustainability factors listed in the PCM manual.

This information is to be presented in Section 6 (Factors ensuringsustainability) of the pre-feasibility report (see Appendix I). Use Chapter 7(Identification), or the Country Study Report, if available, to identify theissues relating to these factors. These lists are not exhaustive. Theconsultants are required to use their professional experience to review andbring to the attention of the Government and the EC all relevant factors.

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E. Work plan

On the basis of the proposed time schedule outlined in the Terms ofReference, the consultants will prepare a work plan for the study andinclude this in their offer, and report on the approach taken in the study.The work plan should set out the consultants’ approach to the followingactivities:● fact finding/data collection/surveys;● workshops, consultations and other means of ensuring local

participation;● identification of possible options for the proposed [water resources

intervention];● analysis of options;● a briefing report summarising the analysis of the options;● consultation meetings with decision makers to identify the preferred

option;● preparation of the draft and final pre-feasibility study report.

F. Expertise required


G. Reporting

The consultants will present a briefing report (10-15 pages) within[………] weeks [after signature of the contract, or after the start of thestudy]. This report will set out the various options in sufficient detail toenable an informed decision to be made on the preferred option. The

This section sets out the approach for the study and key resourcepersons and organisations to be consulted. The consultants maypropose alternative approaches to collecting information and tocarrying out the study.

This section specifies the expertise (qualifications, experience)required for each person assigned to the study. Pre-feasibilitystudies require multidisciplinary and inter-sectoral analysis. Theconsultants should not propose purely technical experts but shouldendeavor to provide the range of expertise needed to address theissues.

This section specifies the types of reports required, the language inwhich they should be written, the date of submission, the numberof copies required and the recipients. The format for a Pre-feasibility Report is presented below.

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study’s conclusions should be presented in the pre-feasibility report in theformat specified below, with the underlying analysis included in theappendices.

A draft pre-feasibility study report ([…….] copies) is to be presented to[…………..] for comments by [date]. Within […………] weeks, commentson the draft pre-feasibility study report will be received from [list ofauthorities].

The consultants will take account of these comments in preparing thefinal pre-feasibility study report (30-40 pages excluding appendices). Thereports will be in [language] and […….] copies will be submitted to[…………] by [date].

H. Time schedule


I. Assistance to the consultants by the Contracting Authority

The Contracting Authority will make available the following informationand facilities to the consultants’ staff:● all relevant reports, documents, maps, data;● where available, office space, furniture, and access to computers and

communication facilities;● where available, the use of vehicles and drivers;● counterpart staff.

The Contracting Authority will facilitate:● entry and exit visas for the consultants’ expatriate staff;● any permits required for the consultants’ staff to carry out their

duties within the country;● the import and export of personal belongings of the consultants’

expatriate staff during the execution of the contract, and ofequipment for the study in accordance with the provisions of the[……………..; specify the co-operation agreement, e.g. LoméConvention or similar agreements].

A time schedule should be prepared for each element of the workplan (Section E) and of the reporting requirements (Section G).

This section specifies assistance made available by the ContractingAuthority to the consultants, including data, documents, offices,transport, counterpart staff, facilitation of the entry and exit ofexpatriate personnel and any study equipment required.

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Appendix I: Standard Reporting Format for a Pre-Feasibility Study


The following text should appear on the inside cover:

This report is financed by the [……………; source of financing, e.g. EuropeanDevelopment Fund] and is presented by [name of consultant] for theGovernment of [……………….] and the European Commission. It does notnecessarily reflect the opinion of the Government or the European Commission.

1. Summary

2. Background

2.1 Government/water resources policyNational policies/strategies affecting water resources, programmes(including water-related sectoral objectives, strategies, priorities andimplementation mechanisms), international agreements relating to waterwhich the country has signed, policy links (including land-use policies),and legal aspects linked to water.

2.2 Features of water resources in the countryInstitutional and administrative setting, role of water resources andlinkages with other sectors in the national and local economies, allrelevant revenues and financing, role of water in environmentalconservation and protection, and key intersectoral links, (for examplewith agriculture and health), condition of infrastructure in the relevantFocus Area.

2.3 Beneficiaries and parties involvedPrincipal stakeholders and their roles, including: water resources users(farmers, local communities), non-governmental organisations (includingcommunity-based organisations and service NGOs), private sectororganisations, and relevant Government institutions. Also analysis ofinstitutional arrangements and co-ordination mechanisms.

2.4 Problems and opportunities to be addressedProblems/opportunities of target groups and beneficiaries and of thewater resources interventions to be addressed by the project.Analysis/review of problems/opportunities described in the Terms of

The report must be structured using the headings (chapters, sectionsand subsections) given below. Under each heading, a list of keywords and explanatory notes is given to indicate the topics to behandled in that part of the report. These key words and explanatorystatements refer to the main issues considered in Chapter 7(Identification). It is essential, therefore, to use these guidelines togain a full understanding of the reporting requirements.

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Reference, Section D (Issues to be studied):● policy, co-ordination and legal issues described in Section 2.1;● demand for water resources services, including any regional aspects;● alternative solutions and options to address problems and

opportunities;● the sustainability of the sector in:

◆ economic and financial terms (structural adjustment impact,water resources financing, operating and maintenance budget andrevenues),

◆ institutional and management terms (institutional structure,responsibilities and capacity, involvement of beneficiaries, role ofthe private sector),

◆ environmental and socio-cultural terms (potential conflictsbetween the stakeholders, gender issues),

◆ technical terms (use of appropriate modern technologies).

2.5 Other operation/interventionsRelevant interventions by the Government, the EC, other donors to waterresources or relevant sectors served by the proposed project.

2.6 Documentation availableKey documents for the study such as previous studies and evaluationreports.

3. Intervention3.1 Overall objectives

Why is the project important to the target groups, beneficiaries andGovernment?

3.2 Project purposeWhy do the target groups and beneficiaries need the project?

3.3 Project resultsWhat services will the project deliver to the target groups andbeneficiaries?

3.4 Project activitiesWhat are the activities that will be carried out?

This section outlines the justification for the selected option, withreference to the analysis in Technical Appendix 4.

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4. Assumptions

4.1 Assumptions at different levelsAction by other agencies required to support the achievement of theproject activities, results and purpose.

4.2 Risks and flexibilityCapacity of the project to respond to the non-realisation of crucialassumptions that could jeopardise the project’s success, and the extent towhich these risks have been taken into account.

5. Implementation

5.1 Physical and non-physical meansPreliminary indication of physical works, equipment, supervision,technical assistance, policy or technical studies, monitoring andevaluation.

5.2 Organisation and implementation proceduresChoice of implementation agency, initial assignment of responsibilities,and definition of procedures.

5.3 Time scheduleExpected project duration and phasing.

5.4 Cost estimate and financing planPreliminary costs by component and input, in foreign exchange andlocal currency, indicating the financing source where possible.

5.5 Special conditions and accompanying measures taken by the governmentPreliminary action for government and parties involved, including theprivate sector, possibly even prior to launching the feasibility study.

This section contains preliminary information on the projectimplementation. Further information will be provided in thefeasibility study during the Formulation phase.

This section contains preliminary assumptions required to achievethe project activities, results and purpose.

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6. Factors ensuring sustainability

6.1 Policy support measuresThe extent to which implementation of existing policy requiresmodification or additional policy measures at a national and/or regionallevel.

6.2 Appropriate technologyThe extent to which the technology and the standards proposed arecompatible with: those already in use in the country, the use of localmaterials and skills, the physical and financial resources of private sector.

6.3 Environmental protectionThe extent to which the impact of the project on people, land use, water,air, noise, flora and fauna and cultural heritage is consistent with agreedenvironmental standards and practices. Refer to the Commission of theEuropean Communities (1993): Environmental Manual and Chapter 13 ofthese Guidelines.

6.4 Socio-cultural and gender aspectsThe degree to which the project is consistent with present socio-culturalnorms and practices. Refer to the Commission to the EuropeanCommunities (1991): The Integration of Women in Development andChapter 13 of the Guidelines.

6.5 Institutional and management capacity, public and privateThe extent of efficiency with which relevant institution, public andprivate, fulfill their responsibilities.

6.6 Economic and financial analysisDescription of economic entities included in the analysis; definition ofthe ‘with’ and ‘without project’ scenarios and underlying assumptions;analysis of relevant alternative scenarios; description and calculation ofbenefits and costs; detailed analysis and justification of affordability ofwater for low-income groups; description and justification of type andanalysis performed and of the results of the analysis; assessment of projectrelevance, effectiveness, efficiency and viablity from the financial andeconomic perspective. Refer to the Manual Financial and economicanalysis of development projects, EC 1997 and Chapter 13 of theseGuidelines.

This section should provide confirmation that key sustainabilityissues have been incorporated either in the project or as externalassumptions. Use the checklists provided in Chapter 7(Identification), to assess whether the project outline covers theissues appropriately.

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7. Monitoring and evaluation

7.1 Monitoring indicatorsInitial identification of key indicators for monitoring project progress,results, activities and assumptions (see Chapter 13).

7.2 Review/evaluationsPreliminary schedules of project reviews and ex-post evaluation.

8. Conclusions and proposals

Technical appendices to the pre-feasibility report

1. Logical framework matrix of proposed project/programme design,including intervention logic, indicators, assumptions andpreconditions.

2. Map of the project area.3. Analysis of the relevance of the preferred option (the project), which

is the basis for the conclusions presented in Section 2.4. Analysis of the options for the project/programme design,

incorporating feasibility and sustainability, with the preferred optionpresented in Sections 3, 4 & 6.

5. Other technical appendices, if any.6. Terms of Reference.

Administrative appendices to the pre-feasibility report

1. Study methodology/work plan (2-4 pages).2. Consultants’ itinerary (1-2 pages).3. List of persons/organisations consulted (1-2 pages).4. Literature and documentation consulted (1-2 pages).5. Curricula vitae of the consultants (1 page per person).

This section will contain preliminary information only. Furtherinformation will be provided by the feasibility study during theFormulation phase.

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3 Format Terms of Reference for a Feasibility Study

The feasibility study should establish whether the proposed projectidentified in the pre-feasibility study is well founded and likely to fulfillthe needs of the economic, social and environmental issues. Thefeasibility study should detail the technical, economic and financial,institutional and management, environmental and socio-cultural, andoperational aspects of the projects.

Terms of reference are to be drawn up by the EC Unit/Delegation incollaboration with the partner country.

A. Study background

The European Commission (EC) has declared its willingness to providewater resources development co-operation in [……….] region of thecountry, as a means to develop the economic, social and environmentalpotential of this region. This is reflected in (i) [………, e.g. co-operationagreement, National/Regional Indicative Programme (NIP/RIP)] andsigned by the Government of […………] and the EC on[………………./……………..], or (ii) in response to a project proposalpresented by [……….. NGO or other institution] to the EC.

The EC has received a request from [……………., e.g. the NationalAuthorising Officer, NGO or institution] to [describe the proposed waterresources intervention].


This standard format is for use in preparing Terms of Reference for afeasibility study for water resources interventions. It is based on thelogical framework and provides an outline of the approach and theissues for study. For more information on these issues, see Chapter 8(Formulation). Use this standard format to prepare the detailedTerms of Reference for feasibility studies, in each case filling in anddescribing the specific requirement. The text in shaded boxes willassist in identifying the individual requirement for the study. Itshould be stressed that clear formulation will help ensure that allrelevant issues are considered, thus enabling informed decisionmaking.

A pre-feasibility study carried out in the Identification phaseidentified the key problems, appraised alternative options andchecked that the preferred solution meets the sustainability criteria.Comments on the findings of the pre-feasibility study, decisionstaken, and the report are attached to the Terms of Reference. Thefeasibility study will formulate the project components in detail.

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On the basis of the findings of the pre-feasibility study, the [………..;authorising partner, e.g. National Authorising Office] and the EuropeanCommission decided on [date] to carry out a feasibility study of theproposed project. A copy of/summary of the pre-feasibility study isattached to these terms of reference.

B. Study objectives

The study will provide the decision makers in [………………] Governmentand the European Commission with sufficient information to justifyacceptance, modification or rejection of the proposed [project orprogramme] for further financing and implementation.

C. Study results

The study will deliver the following:● A verification of the relevance of the proposed project or programme

in addressing the existing problems in economic, social andenvironmental terms, suggested in or in addition to the optionsstudied in the pre-feasibility study;

● A detailed assessment of the technical, economic and financial,institutional and managerial, environmental and socio-culturalfeasibility of the proposed project in addressing the identifiedeconomic, social and environmental problems in […………. Region];

● A detailed assessment of potential sustainability of the project resultsafter completion, based on factors ensuring sustainability defined inthe PCM manual;

● The detailed plan for the project activities, including indicators forproject objectives and results, design specifications, requiredresources, the institutional structure for implementation stipulatingthe responsibilities of various bodies, project timing/phasing,estimated costs and a logical framework planning matrix;

● Details of engineering designs, technical specifications and tenderdocuments for any physical works and supplies;

● A draft Financing Proposal (see Chapter 9 (Financing);● Recommendation for the next steps and any further actions necessary

to secure project financing and implementation and, possibly, drafttender documents for the selection of consultancy services.


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D. Issues to be studied

The main issues to be studied are outlined below. Detailed issues forverification and further analysis are presented below in Appendix I:Standard Reporting Format for a Feasibility Study. The logical frameworkapproach described in the EC Project Cycle Management (PCM) manualshould also be applied.

The study will address these issues, and verify the relevance of theproject determined by the pre-feasibility study. The study will also detailthe feasibility and potential sustainability of the proposed [project].

(i) The relevance of a possible intervention as determined by: itscoherence with country’s macro-economic environment, and theeconomic, social or environmental sector demanding additional waterresources intervention; the consistency with the overall national/regionaldevelopment objectives specified in the [………….. e.g. National WaterResources Programme, National Environmental Action Plan, National orRegional Indicative Programme]; and the compatibility andcomplementarity of these projects with other water-related projects orprogrammes.

The consultants will verify and confirm the analysis presented in the pre-feasibility study with regard to:● The nature, number and type of beneficiaries and other stakeholders

that the proposed project will potentially affect;● All organisations and agencies affected by or involved in the

proposed project;● All major problems experienced by the supposed beneficiaries of the

project and by any other parties likely to be involved, the causalinterrelationships of these problems, and the intersectoral links;

● Other interventions or priorities by any national organisation ordonor which may be affected by the proposed intervention;

● Information from previous studies and evaluations relevant to theproposed project.

This section of the Terms of Reference should contain information(where known) about the broad and more specific issues, or gaps inpresent knowledge, to be studied. The specific problems andopportunities relating to the proposed water resources interventionshould be included in the Terms of Reference. Use Chapter 8(Formulation) to identify the following issues:● Water resources policy framework and support measures,● appropriate technology, technical matters and technical

assistance;● environmental protection;● socio-cultural and gender aspects;● institutional and management capacity and arrangements,

public and private;● economic and financial aspects.

This information, largely based on Section 2 of the Pre-feasibility Report,will form Section 2 (Background) of the Feasibility Report (see Appendix Ibelow).

(ii) The feasibility of the proposed project determined by an analysis ofthe alternative technical solutions consistent with the economic andfinancial, institutional and management, environmental and socio-cultural framework. This analysis is presented in Technical Appendix 4 tothe study report.

The consultants will give a detailed recommendation for the projectdesign, to be structured as follows:● Overall objectives: Why is the project important to the target groups

and beneficiaries, the region and the Government? What is thedesired economic, social and environmental development/impact, aspossibly expressed in the Indicative Programme?

● Project purpose: Why do the target groups and beneficiaries need theproject?

● Project results: What products and services will the project deliver tothe target groups and beneficiaries? What assumptions are requiredto achieve the project purpose?

● Project activities: What is the precise scope of activities to beundertaken and what are the associated assumptions for achievingthe project results.

The project purpose and results should be measurable by indictors, andproject activities should be quantified wherever possible. Thisinformation, which details and updates Sections 3 and 4 of the pre-feasibility study report, will form Section 3 (Intervention) and Section 4(Assumptions) of the feasibility study report (see below).

(iii) The feasibility study will detail any pre-conditions necessary for thestart of project activities, any project phasing and organisation necessaryand will provide cost estimates. This information, which details andupdates Section 5 of the pre-feasibility study will form Section 5(Implementation) of the feasibility study report (see Appendix I).

(iv) The potential sustainability of the proposed project as determined byan assessment of the key sustainability factors listed in the PCM manual.This information, which details and updates Section 6 of the pre-feasibility study report, will form Section 6 (Factors ensuringsustainability) of the feasibility study report (see below). These lists are

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The extent of work required for this part of the study will varyaccording to the time since completion of the pre-feasibility study,changes in the assumptions on which the proposed project is based,and any major changes in the political, economic, social orenvironmental conditions of the country.

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not exhaustive. The consultants are required to use their professionalexperience to review and bring to the attention of the Government andthe EC all relevant factors.

E. Work plan

On the basis of the proposed time schedule outlined in the Terms ofReference, the consultants will prepare a work plan for the study andinclude this in their offer, and report on the approach taken in the studyreport. The work plan should set out the consultants’ approach to thefollowing activities:● fact finding/data collection/surveys omitted in the pre-feasibility

study or requiring updating;● identification and analysis of alternative solutions for the proposed

project;● analysis of alternative technical solutions;● additional workshops and consultations to ensure local participation;● a briefing report summarising the analysis;● consultation meetings with decision makers/stakeholders to identify

the preferred technical solutions;● preparation of engineering, design and tender documents;● preparation of the draft and final feasibility study report.



This section specifies the expertise (qualifications, experience)required for each person assigned to the study. The experiencerequired depends on the type of project, and may include technical,economic and financial, institutional and management (public andprivate), environmental and social, and regulatory expertise whichshould be country specific.

This section sets out the approach for the study and key resourcepersons and organisations to be consulted. The consultants maypropose alternative approaches to collecting information and tocarrying out the study.

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G. Reporting

The consultants will present a briefing report (10-15 pages) within […….]weeks [after signature of the contract, or after start of the study]. Thisreport will set out the alternative technical solutions for the project insufficient detail to enable an informed decision to be made on thepreferred solution.

The draft tender documents in […….] copies are to be presented to[…………………] for comment by [date]. Within [….] weeks, commentson the draft tender documents report will be received from [list ofauthorities]. The consultants will take account of these comments inpreparing final tender documents ([…..] copes) by [date]. The studyconclusions should be presented in the feasibility study report whichmust be presented in the format given below. The underlying analysis isto be presented in appendices to this report.

The draft feasibility study report ([……] copes) is to be presented to[…………] for comments by [date]. Within […..] weeks, comments on thedraft feasibility study report will be received from: [list of authorities].

The consultants will take account of these comments in preparing thefinal feasibility study report (30-40 pages excluding appendices). Thereport will be in [language], and […..] copies will be submitted by [date].

H. Time schedule



This section specifies the types of reports required, the language inwhich they should be written, the date of submission, the numberof copies required and the recipients. The format for a feasibilitystudy report is presented in Appendix I.


This section specifies assistance to be made available by theContracting Authority to the consultants including data,documents, offices, transport, counterpart staff, facilitation of theentry and exit of expatriate personnel and any study equipmentrequired.

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communication facilities;● where available, the use of vehicles and drivers;● counterpart staff.

The Contracting Authority will facilitate:● entry and exit visas for the consultants’ expatriate staff;● any permits required for the consultants’ staff to carry out their

duties within the country;● the import and export of personal belongings of the consultants’

expatriate staff during the execution of the contract, and ofequipment for the study in accordance with provision of the[……………..; specify the co-operation agreement, e.g. LoméConvention or similar agreements].

Appendix I: Standard Reporting Format for a Feasibility Study


The following text should appear on the inside cover:

This report is financed by the [……………; source of financing, e.g. EuropeanDevelopment Fund] and is presented by [………………] for the Government of [……….. ] and the European Commission. It does not necessarily reflect theopinion of the Government or the European Commission.

1. Summary

2. Background

2.1 Government/water resources policyNational polices or strategies affecting water resources, programmes(including objectives, policies, strategies, priorities and implementationmechanisms), international agreements relating to water which thecountry has signed, intersectoral policy links (including land-use polices),and legal/regulatory aspects linked to water and related sectors.

The report must be structured using the headings given below.Under each heading, a list of key words and explanatory notes isgiven to indicate the topics to be handled in that part of the report.These key works and explanatory statements refer to the main issuesconsidered in Chapter 8 (Formulation). It is essential to use theseguidelines to gain full understanding of the reporting requirements.

2.2 Features of water resources in the countryInstitutional and administrative setting, role of water resources in thenational and local economies, relevant revenues and financing, role ofwater in environmental conservation and protection, key intersectorallinks, (for example with agriculture and health), and condition ofinfrastructure in relevant Focus Areas.

2.3 Beneficiaries and parties involvedPrincipal stakeholders and their roles, including: water resources users(farmers, local communities) governmental organisations (includingcommunity-based organisations and service NGOs), private sectororganisations, and relevant Government institutions. Also analysis ofinstitutional arrangements and co-ordination mechanisms.

2.4 Problems and opportunities to be addressedProblems/opportunities of target groups and beneficiaries and otherstakeholders to be addressed by the project. Analysis/review ofproblems/opportunities described in Terms of Reference, Section D (Issuesto be studied):● policy, co-ordination and legal issues described in Section 2.1;● demand for water resources services, including any regional aspects;● alternative solutions and options to address problems and

opportunities; ● the sustainability of the sector in

◆ economic and financial terms (structural adjustment impact,water resources financing, operating and maintenance budgetand revenues);

◆ institution and management terms (institutional structure,responsibilities and capacity, involvement of beneficiaries, role ofthe private sector);

◆ environmental and socio-cultural terms (potential conflictsbetween the stakeholders, gender issues);

◆ technical terms (use of appropriate modern technologies).

2.5 Other operations/interventionsRelevant interventions by the government, the EC, other donors to waterresources or other closely-linked sectors.

2.6 Documentation availableKey documents for the study such as previous studies and evaluationreports.

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3. Intervention

3.1 Overall objectivesWhy is the project important to the target groups, beneficiaries and theGovernment?

3.2 Project purposeWhy do the target groups and beneficiaries need the project?

3.3 Project resultsWhat services will the project deliver to the target groups andbeneficiaries?

3.4 Project activitiesWhat are the activities that will be carried out?

4. Assumptions

4.1 Assumptions at different levelsAction by other agencies required to support the achievement of theproject activities, results and purpose.

4.2 Risks and flexibilityCapacity of the project to respond to the non-realisation of crucialassumptions that could jeopardise the project’s success, and the extent towhich these risks have been taken into account.

5. Implementation

5.1 Physical and non-physical meansDetailed indication of physical works, equipment, supervision, technicalassistance, policy or technical studies, monitoring and evaluation.

5.2 Organisation and implementation proceduresDetails of the assignments to be given to the agencies involved, projectorganisation, responsibilities and definition of procedures.

This section outlines the justification for the selected option, withreference to the analysis in Technical Appendix 4.

The consultants should update the assumptions of the pre-feasibilitystudy and formulate additional assumptions where necessary toreflect any changes.

This section should detail fully the project implementation.

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5.3 Time scheduleExcepted duration and phasing of the project.

5.4 Cost estimate and financing planCost estimate by component and input, in foreign exchange and localcurrency, including financing source.

5.5 Special conditions and accompanying measures taken by the governmentAction for Government and involved parties, including the private sector,to be undertaken prior to, and during, project implementation.

6. Factors ensuring sustainability

6.1 Policy support measuresThe extent to which implementation of existing policy requiresmodification or additional policy measures at a national and/or regionallevel.

6.2 Appropriate technology The extent to which the technology and the standards proposed arecompatible with: those already in use in the country, the use of localmaterials and skills, the physical and financial resources of the privatesector.

6.3 Environmental protectionThe extent to which the impact of the project on people, land use, water,air, noise, flora and fauna and cultural heritage is consistent with agreedenvironmental standards and practices. Refer to the Commission of theEuropean Communities (1993): Environment Manual and Chapter 13 ofthese Guidelines.

6.4 Socio-cultural and gender aspectsThe degree to which the project is consistent with present socio-culturalnorms and practices. Refer to the Commission of the EuropeanCommunities (1993): The Integration of Women in Development andChapter 13 of these Guidelines.

6.5 Institutional and management capacity, public and privateThe extent and efficiency with which relevant institutions, public andprivate, fulfill their responsibilities.

This section should provide confirmation that key sustainabilityissues have been incorporated either in the project or as externalassumptions. Use the checklists provided in Chapter8(Formulation), of the Guidelines to assess whether the projectdesign covers the issues appropriately.

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6.6 Economic and financial analysisDescription of economic entities included in the analysis; definition ofthe ‘with’ and ‘without project’ scenarios and underlying assumptions;analysis of relevant alternative scenarios; description and calculation ofbenefits and costs; detailed analysis and justification of affordability ofwater for low-income groups; description and justification of type andanalysis performed and of the results of the analysis; assessment ofprojedct relevance, effectiveness, efficiency and viablity from the financialand economic perspective. Refer to the Manual Financial and economicanalysis of development projects, EC 1997 and Chapter 13 of theseGuidelines.

7. Monitoring and evaluation

7.1 Monitoring indicatorsIdentification of key indicators and systems for monitoring projectprogress, results, activities, assumptions, sustainability and impact (seeChapter 13). Assignment of responsibilities to Government, involvedagencies and the private sector.

7.2 Review/evaluationsSchedules of project reviews and ex-post evaluation.

8. Conclusions and proposals

Technical appendices to the feasibility report

1. Draft Financing Proposal with a logical framework planning matrix ofthe proposed project/programme design, including interventionlogic, indicators, assumptions and preconditions.

2. Map of project area.3. Analysis of the relevance of the preferred solution (the project) with

the final conclusions presented in Section 2.4. Detailed analysis of the technical and institutional alternatives of the

project/programme design, incorporating feasibility andsustainability, with the preferred solution presented in Sections 3, 4 &6.

5. Detailed technical specifications and design sites of therecommended solution.

6. Other technical appendices, if any.7. Terms of Reference.

Administrative appendices to the feasibility report

1. Study methodology/work plan (2-4 pages).2. Itinerary (1-2 pages).3. List of persons/organisations consulted (1-2 pages).4. Literature and documentation consulted (1-2 pages).5. Curricula vitae of consultants (1 page per person).

This section should establish the project’s monitoring system.

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4. Standard format Terms of Reference for an Evaluation 1

An evaluation study is required to analyse how successful a programme orproject has been in meeting the needs and objectives originally identifiedas its justification. In the case of a mid-term review, the purpose is toanalyse progress during the implementation phase and determinewhether the original programme/project objective or design requirerevision.

An evaluation report should look at the project’s impact (intended ornot), its contribution to the overall objective and performance thus far interms of project purpose and results. In this respect the monitoringindicators identified in the financing plan should be used to measuresuccess.

Apart from specific variants, the terms of reference for an evaluationstudy will for the most part follow the format used for the feasibilitystudy, and the reader is directed towards Section III of this chapter.

The evaluation issues should be analysed on the basis of the formatbelow and the Project Cycle Management method. The scope of analysismay, however, be widened or focussed on more specific issues dependingon the consultant’s experience and the particular requirements of thestudy.

The terms of reference are to be drawn up by the Unit/Delegationrequesting the evaluation.

A. Study backgroundThe European Commission (EC) provided support for [project/programmetitle……….] in the [………………] region of […the country], as a means todevelop the economic, social and environmental potential of this region.This is reflected in (i) [………………, e.g.,. co-operation agreement, National/Regional

Indicative Programme (NIP/RIP)] which was signed by theGovernment of [………………] and the EC on[………………/………………], or

Guide for preparing Terms of Reference for anEvaluation.

This standard format is for use in preparing Terms of Reference foran evaluation. It is based on the logical framework and provides anoutline of the approach and issues for study. For more informationon these issues, see Chapter 11 (Evaluation). This standard formatshould be used to prepare the evaluation, in each case filling in anddescribing the specific requirements. The text in shaded boxes willassist in identifying the individual requirements for the study. Itshould be stressed that clear formulation will help ensure that allrelevant issues are considered, thus enabling informed decisionmaking.

1 This section can also be used for preparing terms of reference for a mid-term review but willrequire modification as the contents may be less comprehensive and more focussed oncircumstances unique to the project/programme.

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(ii) in response to a project proposal presented by […………NGO orinstitution] to the EC.

The EC has decided to undertake a study to evaluate the outcome of the[project/programme].

B. Study objectivesThe evaluation study will provide the [………..] government and the ECwith sufficient information, as to the outcomes of the programme orproject and provide lessons learned for future project design. Identify keyissues of special importance in the study objectives. (Note: If it is a mid-term review it may suggest modifications.)

C. Study resultsThe study will deliver the following:● The principle features of the project/programme at the time of the

evaluation – to include objectives, components, location,commitments/disbursements, important dates, timetable;

● An assessment of the planning and design phases of the project fromthe initial project idea to the final financing proposal;

● An assessment of the problems to be identified and the projectobjectives against their physical and policy environment;

● An assessment of the relationship between the activities and theresults of the programme in the logical framework terminology;

● An assessment of the relationship between the results of the projectand the project purpose referred to in the logical frameworkterminology;

● An assessment of the relationship between the project purpose andthe overall objectives;

● An economic/financial analysis for an appropriate period (the entireduration, current year);

● An assessment of the sustainability/replicability of the project’sactivities and results where relevant;

● Overall outcomes and lessons learned for future actions.

D. Issues to be studiedThe main issues to be studied are outlined below. Note that some issuesneed not be included in the study if irrelevant to the specific project. Afuller description is given in Appendix I.

i Project preparation and designii Relevanceiii Efficiencyiv Effectiveness v Impactvi Economic and financial analysis

This section should contain further detailed information orreference to relevant documents

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E. Work plan

The work plan should set out the consultants’ approach to the followingactivities:● comment on the methodology proposed;● propose methods of data collection and analysis;● present a detailed timetable for the study.



G. Reporting

The consultants will present a final report of […………] pages, within [.………..] weeks after […………….]. The final report will set out thefindings and conclusions of the evaluation. It will contain no more than[………] pages and annexes and shall be in [language] and submitted by[date].

H. Time schedule


This section sets out the approach for the study and identifies keyresource persons and organisations to be consulted. The consultantsmay propose alternative approaches to collecting information andto carrying out the study.

This section specifies the expertise (qualifications, experience)required for each person assigned to the study. The experiencerequired depends on the type of project being evaluated, and mayinclude technical, economic and financial, institutional andmanagement (public and private), environmental and social, andregulatory expertise. Experience may also need to be countryspecific.

This section specifies the types of reports required, the language inwhich they should be written, the date of submission, the numberof copies required and the recipients. The format for an evaluationreport is presented in Appendix I.


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communication facilities;● counterpart staff.

The Contracting Authority will facilitate:● entry and exist visas for the consultants’ staff to carry out their duties

within the country;● any permits required for the consultants’ staff to carry out their

duties within the country.

Appendix I: Standard Reporting Format for an Evaluation Study

The Evaluation Report should mirror the basic project format, taking intoaccount the nature of the project and the stage at which evaluation istaking place. It should focus on the soundness of the choices made inrelation to the context, objectives, means, likelihood of sustainability,etc., and include brief remarks on any adjustments made in response todevelopments up to the moment of evaluation.

The following text should appear on the front cover:

This report is financed by the [………; source of financing, e.g. EuropeanDevelopment Fund] and is presented by [………] for the Government of[………..] and the European Commission. It does not necessarily reflect theopinion of the Government or the European Commission.

Preamble (Maximum 2 pages) The preamble should briefly describe:● The principal features of the project/programme as at the time of the

evaluation (including objectives, components, location,commitments/disbursements, important dates, timetable);

● The objectives and plan of work of the evaluation study itself (namesof evaluators, dates and principal methods used).

This section specifies assistance to be made available by theContracting Authority to the consultants including data,documents, offices, transport, counterpart staff, facilitation of theentry and exit of expatriate personnel. Adequate funds should bemade available to the consultants to ensure their independence asregards local travel, office space and necessary equipment.

The report should be structured using the headings given below.Except in exceptional circumstances, the report should not exceed100 pages + Annexes.

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1. Summary

2. Project preparation and designThis chapter assesses the planning and design phases of the project from theinitial project idea to the final financing proposal. It establishes whichpreparatory activities have been undertaken by which actors and how theresults of such activities (pre-feasibility and feasibility studies etc.) have beenincorporated into the final project document. The chapter also assesses theinternal characteristics of the project that can be discerned from the analysis ofthe preparation and design phases.

3 Relevance of the projectThis chapter assesses the problems to be solved and the project objectivesagainst their physical and policy environment, i.e. the main macro-economicand sectoral features of the country and pertinent policies (explicit and implicit)of the various actors: government, EU, other donors and interest groups. Theevolution of the context over time and its consequence for the project shouldalso be reviewed.

4 EfficiencyThis chapter relates to what is known as the relationship between the activitiesand the results of the programme in the logical framework terminology. It isdevoted to the evaluation of the efficiency with which the activities have beenundertaken in order to yield the project results. Have the means of the projectbeen efficiently transformed through the project’s activities into the variousproject results? Could the same or similar results have been achieved at lowercosts? This will require an assessment of the following factors that affectefficiency.

5. EffectivenessThis chapter relates to the relationship between the results of the project andthe project purpose referred to in the logical framework terminology. It gives anassessment of the extent to which the project results have contributed towardsthe achievement of the Project Purpose, or whether this can be expected tohappen in the future on the basis of the current results of the project(unplanned results should also be analysed). Particular attention should begiven to the beneficiaries of the project.

6. ImpactThis chapter, applicable in the case of completed projects or projects whichhave been running for several years, assesses the contribution of the project in abroader context (the relationship between the project purpose and the overallobjectives). Both qualitative and, where possible, quantitative assessmentshould be made. 'With/without' analysis, if not treated here, might be dealtwith in Chapter 6.

7. Economic and financial analysisDescription of economic entities included in the analysis; description of theactual ‘with’ project situation compared to the planned situation; descriptionand calculation of benefits and costs; detailed analysis and justification of‘affordability’ of water for low-income groups; description and justification of

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type of analysis performed and of the results of the analysis; assessment of theproject’s relevance, effectiveness, efficiency and viability from the financialand economic perspective. Refer to the Manual Financial and economicanalysis of development projects, EC, 1997, and Chapter 13 of theseGuidelines.

8. Factors affecting sustainability/replicability. This chapter assesses the sustainability/replicability of the project's activitiesand results where relevant. The evaluator should, in the first instance, give anassessment in global terms of the sustainability prospects for the project. Theweighting of the six principal sustainability factors referred to below willdepend upon the nature of the project. It would also be useful to examine themanner in which the concern for neglect of one or other of the six factors mayhave affected the achievement of sustainable results. The possibility ofreplicating successful outcomes should also be analysed.

8.1 Policy support measures; correspondence between priorities of donor andrecipient country; extent to which project has support in the recipientcountry's budget, price and subsidy policy.● Regional/district policy, sectoral policies, etc.; ● Changes in overall priorities and policies: how have they (or will they)

affect the project;● Degree of agreement on objectives;● Support from relevant organisation (political, public, business, etc.);● Willingness to provide resources (financial and personnel).

8.2 Appropriate technologyDid the technology offered correspond to needs (problems to be solved,technological environment, level of technological skills of the beneficiariesand technical support services)? In particular, will the intended beneficiariesbe able to adapt to and maintain the technology acquired without furtherproject assistance?

8.3 Environmental protectionVerify whether the environmental effects of the project's activities and resultscould jeopardise the sustainability of the project itself and/or reach levelswhich are unacceptable for long-term environmental protection andmanagement.

8.4 Socio-cultural and gender issuesVerify whether social-cultural and gender aspects could endanger thesustainability of the project interventions during project implementation or,especially, after termination of assistance. The issue of 'ownership' of theproject activities by the various beneficiary groups and implementing agenciesshould also be discussed.

8.5 Institutional and management capacity, public and privateThe commitment of all parties involved, such as government (e.g.throughpolicy and budgetary support), counterpart institutions and beneficiariesshould be examined. To what extent have the project activities been

embedded in local institutional structures to ensure sustainability? Werecounterparts adequately prepared for the hand-over of the project andcontinuation of the project activities (technically, financially, managerially)?

9. Conclusions and recommendations

9.1 Overall outcome● What were the main successes/failures of the project to-date? What were

the causes underlying the outcome?● Do the effects/impacts identified justify the costs involved?● Were the objectives achieved within the specified time and budget?

9.2 SustainabilityConclusions should be drawn and recommendations made regarding the keysustainability factors relevant to the project, for example,● Is post-project maintenance of infrastructure and support for institutional

structures likely to be adequately funded and executed?● Is the policy environment likely to ensure the sustainability of the project's

benefits?

9.3 Alternatives● Could the same effects/impacts have been achieved at lower costs?● Would there have been different ways of achieving the same outcome?● Should the project be re-oriented and, in particular, should all activities

continue? If not, describe how the project should be re-oriented andsummarise the proposal in the form of a logical framework

10 Lessons learnedThe main value of Evaluation is to learn lessons that can be applied to futureprojects, such as; ● What policy, organisational (e.g. for EC) and operational lessons can be

drawn specifically from the project?● What pre-conditions might be recommended prior to deciding on the

financing of similar projects?● What general development lessons' can be drawn from the Evaluation in

relation to policies and instruments; and sectoral, country or regionalstrategies?

Technical and administrative appendices to the evaluation report● Original logical framework:● Original Financing Proposal;● Other technical appendices, if any;● List of persons/organisations consulted;● Documents consulted for the evaluation.

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Under this heading the evaluator should, drawing on the conclusions,summarise the overall outcome and formulate proposals for futureactions. The conclusions should cover all-important aspects requiringaction identified under points 2 to 8. Each conclusion should lead to acorresponding operational recommendation.

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Selected bibliography

Acronyms

Acknowledgements

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Selected Bibliography

Abbott, C.L. and Hasnip, N. (1997) The Safe Use of Marginal Quality Water inIrrigation: A guide for the water resource planner. HR Wallingford Report OD140, Wallingford, UK.

This guide has been prepared to help planners successfully integrate marginalquality water supplies in to regional water use strategies. The users are guidedthrough procedures to identify and assess potential marginal quality watersupplies, and provided with tools to evaluate the impacts on crops and humanhealth. Management options to maintain long-term sustainable agriculture arepresented.

ADB (1996) Towards Effective Water Policy in the Asian and Pacific Region.Proceedings of the Regional Consultation Workshop, ADB, Manila, Volume 1.

These proceedings are the outcome of the Regional Consultation Workshopheld at the Asian Development Bank (ADB) in Manila, 10-14 May 1996. Theproceedings are divided into three chapters; 1) Introduction, 2) Understandingthe water sector and 3) Directing ADB’s role in the water sector. (Volume 2 –Country papers, Volume 3 – Theme papers and comments).

Allen, J.A. (1996) Policy Responses to the Closure of Water Resources: Regionaland global issues. Water Policy: Allocation and Management in Practice,Howsam, P. and Carter, R.C. (ed), E & FN Spon/Chapman and Hall, London,UK.

This paper demonstrates that a number of steps have been taken bygovernments to meet provision of water. The concept of ‘virtual water’ isdiscussed and examples drawn from the Middle East, where international tradein cereals has enabled the region to import ‘virtual water’. The paper alsodiscusses the pressures on policy makers at the macro, national, level. Highlyprincipled economically and environmentally sound solutions may beadvocated but political imperatives often overwhelm the decision-makingprocess.

Backer, P. (1993) La Mondialisation du Management Environnemental: LaDimension GATT. Environ., 3, No. 36. 11-13.

This publication describes the need for responsible environmentalmanagement in the world, the strategic importance of European investments,with a particular focus on France.

Black, M. (1994) Mega-slums: The coming sanitary crisis. A special report forWaterAid, UK.

This report examines the rapid pace of urbanisation in the developing world

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and its implications for access to water and sanitation services by low-incomepopulations. The report argues for a radical overhaul of conventional publichealth engineering wisdom in technological and service managementresponses to the growing threat of epidemic in Third World cities.

Biswas, A. K. (1992) Water for Third World Development, a Perspective fromthe South. Water Resources Development, Vol. 8, No. 1.

Perspectives from the South on water issues, with emphasis on internationalrivers and environmental considerations, and on where internationalgovernance can have major impacts on national water policies and institutions.

Biswas, A. K. (1992) Sustainable Water Development: a Global Perspective.Water International, 17, 68-80.

This paper provides a global perspective of sustainable water development overthe past two decades. The paper covers development and managementpractices, some of which have had positive environmental impacts, and otherswhich have had negative impacts.

BMZ (1996) Sector Concept: Drinking Water Supply and Sanitation. BMZ,Bonn, Germany.

This sets out the general principles for planning and implementingdevelopment co-operation projects for drinking water supply and sanitation. Itis a decision-making tool for use in German development co-operationprogrammes.

BMZ (1998) German Development Co-operation in the Water Sector. BMZ,Bonn, Germany.

This sets out the concepts for development co-operation in the drinking watersupply and sanitation sector with particular emphasis on the function anddelimitation of the sector, sector goals, project selection and design, andcriteria. Types of co-operation and use of bilateral funds are discussed. Anumber of project examples from a range of countries are included.

Brundtland, G. H. (1987) Our Common Future. The World Commission onEnvironment and Development.

Landmark publication setting the international agenda on environmentalissues, although concern for freshwater resources is a serious omission.

Centre for Water Policy Research (1991) Towards Introducing Markets forRiverine Resources. Report to the Department of Water Resources New SouthWales, Kaine, G., Burton, J. and Bryant, M., University of New England,Australia.

The scope for reforming and extending property rights to facilitate theallocation of the resources to the riverine environment is presented.Difficulties due to the shortfall in knowledge and understanding aredocumented and suggestions made for investigations to help alleviate theseproblems.

Cités Unies Developpement. (1990) Rapport, la Coopération Internationaled’Aide au Développement et les Collectivités Locales. Les acteurs, lesinstruments et les circuits de financement.

This discusses the importance of solidarity between communities and the roleof an NGO, ‘Cités Unies Developpement’, and its programme of social andeconomic help to Third World cities.

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CIWEM, Bailey R (ed) (1996) Water and Environmental Management inDeveloping Countries, Chartered Institute of Water and EnvironmentalManagement, sponsored by DFID (formerly ODA).

This book, aimed at water and environmental managers in developingcountries, is in two parts. Part 1 contains up-to-date information on theenvironment including philosophy, politics, and social and economic factors;part 2 contains up-to-date information for solving practical problems.

Clift, R. (1995) Clean Technology – An Introduction. Journal of ChemicalTechnology and Biotechnology, No.62, pp321-326.

This paper provides an introduction to the concept of Clean Technology, withparticular reference to the collection and treatment of domestic and industrialwastes.

COAG (Council of Australian Governments) (1995) Water Allocations andEntitlements: A national framework for the implementation of property rights inwater. Task Force on Council of Australian Governments, Occasional PaperNo.1.

A number of themes have been investigated by working groups reporting toCOAG on measures designed to improve the efficiency of sectors of theAustralian economy. This report focuses on the clarification of property rightsto water and recommends a national framework for their implementation.Other task forces have considered pricing reform, asset refurbishment, waterallocation to the environment, trading arrangement in water, institutionalreforms and community consultation and education.

CWC (1992) Guidelines for Sustainable Water Resources Development andManagement. Central Water Commission (CWC), New Delhi, September 1992.

These guidelines are intended to help project authorities plan and managewater resources taking into account environmental concerns. They focus onmethodologies for Environmental Assessment (EA) of water resources projectswhich can be easily transferred to developing countries.

DANIDA (1992) Water Supply and Sanitation. Ministry of Foreign Affairs.Danida Sector Policies.

This describes the policies of the Danish International Development Assistanceof the Danish Ministry of Foreign Affairs in the water supply and sanitationsector ie. water supply, primarily for domestic use, in rural and urban areas;sanitation and sewerage services; health/hygiene promotion; water resourcesassessment and protection.

Deval, H. (1994) Lutte Contre la Désertification. Coopération Française enAfrique. Coopération française en Afrique.

This describes the fight against desertification in Africa and the supportprovided by French aid to support various demand-driven, village-basedinitiatives.

DFID (1995) Technical Note on Enhancing Stakeholder Participation in AidActivities. Department for International Development, UK.

This technical note reviews and recommends methods of enhancingstakeholder participation. A guidance note on the how to do a StakeholderAnalysis is included.

DFID (1997) Evaluation Synthesis of Rural Water and Sanitation Project.White J., DFID Evaluation Department: Evaluation Report EV:596, London,UK.

This evaluation is a synthesis of six evaluation studies and one review from:

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CARE International in Sierra Leone; WaterAid in Uganda; Nepal Eastern RegionWater Supply project; Madura Groundwater Irrigation project, Indonesia;Lesotho Village Water Supplies; and the Gurkha Welfare Trust project, Nepal. Itsummarises the consensus from research concerning the relationship betweenthe prevalence of diseases associated with poor water and sanitation facilitiesand provision of services.

DFID (1997) Priorities for Irrigated Agriculture. Water Resources OccasionalPaper No 1, London, UK.

This paper sets out the importance of irrigated agriculture to developingcountries. It highlights the paradox that a serious decline in donor support forirrigation has occurred at the same time that water shortage, poverty and foodsecurity have become major international concerns. The paper promotes fivepriority themes: improved water use efficiency, enhanced productivity of small-scale smallholder schemes, an integrated approach to water use, capacitybuilding and support for innovation.

DSE (1998) Global Water Politics: Co-operation for Transboundary WaterManagement. 1st Petersberg Round Table, International Dialogue Forum,Petersberg/Bonn, 3-5 March 1998, German Foundation for InternationalDevelopment.

This international forum drew up recommendations concerning the GermanGovernment’s position within the international debate on transboundary watermanagement. The outcome of the meeting is presented as the PetersbergDeclaration which provides recommendations for further actions regardingtransboundary water management.

Dublin Statement (1992) International Conference on Water and theEnvironment: Development issues for the 21st century. 26-31 January 1992,Dublin, Ireland. The Dublin Statement and Report of the conference.

The Dublin Statement and Report of the Conference present the problemshighlighted at the International conference on Water and Environment inDublin, Ireland, and highlight the critical nature of the global water resourcessituation. The report identifies four guiding principle since regarded as thecentrepiece of water-related activity.

EC (1991) EC Manual: The Integration of Women in Development. EuropeanCommission, Brussels.

The EC has developed a specific policy focusing on Women in Development(WID). The policy recognises the productive roles played by women and theircontribution to economic growth, and is based on an evaluation of nine EDF-financed projects.

EC (1993) Environmental Procedures and Methodology Governing Lomé IVDevelopment Co-operation Projects. European Commission, Brussels.

This manual describes a methodology for environmental assessment of LoméIV development projects. It looks initially at the legal background beforedescribing the various stages of an assessment from the initial screeningthrough preliminary assessment up to a full Environmental Impact Assessment(EIA) before describing the reviewing process and the need for monitoring.

EC (1997) Indicators of Sustainable Development. European Commission,Brussels.

Following on from the 1992 Rio de Janeiro declarations, which have beenincorporated into the core of European Policy, the EC is creating a statisticalinformation system through Eurostat to help in evaluating progress towardsthe 1992 Rio objectives of sustainable and balanced development. This report

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looks at the initial trials using 40 indicators.

EC (1997) EC Manual: Financial and Economic Analysis of DevelopmentProjects. European Commission, Brussels.

This manual looks at how financial and economic analysis can ensure that aidis planned and delivered as effectively as possible. It concentrates on how suchanalysis can inform the decision-making process throughout the project cycle,shedding light on how to estimate planned or actual effectiveness in attainingkey objectives such as poverty reduction.

FAO (1989) Water Quality for Agriculture. FAO Irrigation and Drainage PaperNo.29, Rome.

This paper provides guidance to farm and project managers, consultants andengineers in evaluating and identifying potential problems related to waterquality. Possible restrictions to water use are discussed and managementoptions presented which may assist in farm or project management planningand operation.

FAO (1995) Irrigation Management Transfer. Selected papers from theInternational Conference on Irrigation Management Transfer, Wuhan, China,20-24 September 1994. FAO Water Report No.5, Rome.

The Irrigation Management Transfer conference was the first majorinternational meeting to be held on this topic. The proceedings include asummary of ideas and experiences drawn from the conference papers. Thepapers address a number of issues including the reasons for managementtransfer, variations in management transfer approaches, and the effects ofmanagement transfer on irrigation performance.

FAO (1995) Reforming water resources policy: a guide to methods, processes andpractices. Winpenny, J.T. FAO Irrigation and Drainage Paper 52, Rome.

This guide was first written against the background of growing pressure onfarmers to make more efficient use of irrigation water, to release more for otherfarmers, and to avoid conflicts and competition for the resource from potentialusers in other sectors. The report has a number of aims: to indicate the sizeand complexity of the water sector, to spell out the ramifications throughoutthe economy of water management, introduce some of the methods andprocesses involved in a water policy review, and illustrate how differentcountries have gone about such a review.

FAO (1995) Water Sector Policy Review and Strategy Formulation: a generalframework. FAO Land and Water Bulletin 3, Rome.

This paper is an attempt to synthesise the FAO’s approach with that of theWorld Bank and the UNDP. It responds to a request from the Sub-Committeeon Water Resources of the UN Administrative Committee for Co-ordination tothese three agencies to prepare a joint guide on water resources policy review,reform, and strategy formulation. The report covers institutional and humanresource issues, stakeholder participation, information systems, the role ofeconomics, environmental and health considerations, and international issues.

FAO (1996) Guidelines for planning irrigation and drainage investment projects.FAO Investment Centre Technical Paper 11, Rome

The Guidelines are divided into two parts. The first part briefly discusses themain lessons learned in recent years and their implications for the projectplanning process. The second part describes the process itself, the roles of theborrowers, lenders and planning team and the activities and outputs expected.The remainder of the document presents checklists, which seek to be fullycomprehensive and include both new and perennial issues in irrigationplanning.

IADB (1996) Workshop on Strategies for Integrated Water ResourcesManagement in Latin America and the Caribbean. San José, Costa Rica, May 6-7, 1996. Proceedings. Social Programs and Sustainable DevelopmentDepartment, Environment Division.

This report summarises the results of a Consultation Workshop on Strategies forIntegrated Water Resources Management and the Caribbean. The Workshopwas part of a multi-step action plan developed by the Bank to prepare itsstrategy for integrated water resources management.

IADB (1997) Integrated Water Resources Management Strategy BackgroundPaper. Inter-American Development Bank, Social Programs and Sustainabledevelopment Department, Environment Division.

This draft strategy presents the intended approach of the IADB to waterresources management. It is gives an overview of the water resources in LatinAmerica and the Caribbean, stresses the need for an integrated approach,essentially calling for a change of paradigm in order to achieve sustainability. Itpresents the main focus for IADB investments.

ICID (1993) Environmental Checklist to Identify Environmental Effects ofIrrigation, Drainage and Flood Control Projects. HR Wallingford for theInternational Commission on Irrigation and Drainage, Wallingford, UK.

A procedure for identifying environmental effects of new or existing projects,intended for use by engineers and planners who are non-specialists in theenvironmental sciences. The procedure includes practical guidance on its useand is supported by a range of tools for its application.

ICID (1997) Water: Economics, Management and Demand. Kay, M., Franks,T., Smith, L., Proceedings of the18th European Regional ICID Conference, E &FN Spon (pub), UK.

The papers presented at this International Commission on Irrigation andDrainage (ICID) conference focus primarily on the role of irrigation anddrainage in the debate on water use as an economic good. They highlightexperiences in both developed and developing countries in six areas: the valueof water for irrigation; the value of drainage and flood control; the social andenvironmental value of water; paying for services; management systems; andpolicy, legal and institutional issues.

ICID (1997) Water: Economics, Management and Demand, Edited by Kay, M.,Franks, T. and Smith, L. E & FN Spon, UK.

A collection of the papers presented at the International Commission onIrrigation and Drainage conference on ‘Water – an economic good?’ held inOxford, UK, in September 1997.

IHE/UNDP (1991) A Strategy for Water Sector Capacity Building. IHE ReportSeries 24, Alearts, G.J. and Hartvelt, F.J.A., The Netherlands.

This book reports on the UNDP Symposium ‘A Strategy for Water ResourcesCapacity Building’, held in Delft, The Netherlands, 3-5 June 1991. The meetingdealt with two main challenges to water-related activities: the need for a greateruse of comprehensive and integrated methods; and methods to addressinstitutional weaknesses.

IIMI (1994) Chapter 3, Gender Issues and Water Issues in A Gender Perspectiveto Irrigation Management. IIMI Working Paper No.32, Zwarteveen, M.Z.,Columbo, Sri Lanka.

Within a wider report on the role of gender within irrigation, this chapter dealsin depth with the causes of the absence of gender in most irrigationmanagement studies. It examines how male and female needs differ andproposes the use of tools for identifying gender considerations.

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IIMI (1997) Impacts of Irrigation Management Transfer: A review of theEvidence. Research Report No.11, Vermillion, D.L., International IrrigationManagement Institute, Columbo, Sri Lanka.

This report synthesises and evaluates the most significant evidence available to-date about the impacts of management transfer programmes on the financialviability of irrigation systems; the quality of irrigation operations andmaintenance; the physical sustainability of irrigation infrastructure;agricultural and economic productivity; and the environment.

IRC (1985) Participation of Women in Water Supply and Sanitation. TechnicalPaper No. 22. International Water and Sanitation Centre, The Hague, TheNetherlands.

The book aims to present a simplified framework for gender analysis which canbe used in rapid participatory assessments and planning. It also gives anoverview of developments at policy level on integrated water resourcesmanagement, and aims to link this to gender analysis. Finally, it summarisesand analyses the operationalisation of gender in drinking water and sanitation.

IRC (1993) Communication in Water Supply and Sanitation – a ResourceBooklet. International Water and Sanitation Centre, The Hague, TheNetherlands.

This booklet outlines the steps that need to be taken to develop and implementa communication strategy for the water and sanitation sector, based on theexperiences of many people in many countries. Includes suggestions foradvocacy at national and global level, and basic elements for messages on watersupply and sanitation to priority target groups.

IRC (1994) Stir gently! The Way to Mix Hygiene Education with Water Supplyand Sanitation. Marieke Boot, Paper No. 29. International Water andSanitation Centre, The Hague, The Netherlands.

Methods for integrating hygiene education in water supply and sanitationprogrammes. Numerous programme examples are provided demonstratingchanges of attitude, behaviour and practice relating to water and wastedisposal; also of planning, organisation, implementation and evaluation oftraining in health education.

IRC (1997) Linking Technology Choice with Operation and Maintenance forLow-Cost Water Supply and Sanitation. Operation and Maintenance WorkingGroup, Water Supply and Sanitation Collaborative Council, WHO &International Water and Sanitation Centre, The Hague, The Netherlands.

This manual is designed to help planners and project staff in the selection ofrural and low-income water supply and sanitation technologies. It is dividedinto two parts: Part 1: Operation and maintenance and technology choice: thetechnology selection process; the assessment of O&M implications. Part 2: Factsheets: water supply technology (water sources, water lifting devices, powersystems, water treatment, storage and distribution systems); low-cost sanitationtechnology.

IRC (1997) Water Supplies Managed by Rural Communities. Country Reportsand Case Studies from Cameroon, Colombia, Guatemala, Kenya, Nepal andPakistan. International Water and Sanitation Centre, The Hague, TheNetherlands.

Community water management experiences and management reports,conclusions and lessons learned. This document is the result of a collectiveeffort by six teams from organisations operating in the water supply andsanitation sectors in Cameroon, Colombia, Guatemala, Kenya, Nepal andPakistan, carrying out a four-year research project on the role of communityparticipation in the management of rural water supplies.

ISPAN (1993) Water Resources Policy and Planning. Towards EnvironmentalSustainability. Irrigation Support Project for Asia and the Near East (ISPAN).

This report is based on a study of environmental sustainability of waterdevelopment and use. The study, conducted in four medium-sized cities andtheir surrounding agricultural areas, collected information on the extent towhich water development and use were consistent with, or detrimental to,maintenance of the long-term adequacy and quality of water resources.

Ministry of Housing, Spatial Planning and Environment (1994) ConferenceReport: Ministerial Conference on Drinking Water and EnvironmentalSanitation, Noordwijk, March 1994. The Hague, The Netherlands.

This Conference report highlights changes to improve both public health andinternational co-operation. Based on the background papers of the MinisterialConference, a series of three publications under the title ‘Water and Sanitationfor All: A World Priority’ were prepared: 1) A Developing Crisis, 2)Achievements and Challenges, and 3) No More Business as Usual.

NEDA (1998) Water Supply and Sanitation in Developing Countries,Netherlands Development Assistance, Ministry of Foreign Affairs,

This document provides sector policy and guidelines for implementation ofdevelopment co-operation. The report draws on experiences from pastinvolvement in water and sanitation and highlights the key elements forsuccess. Guidelines for implementation of policy focus on identification,assessment, implementation and evaluation in relation to aspects such asnational policy, participation, environment, organisations, and monitoring.

ODA (now DFID) (1996) A Guide to Social Analysis for Projects in DevelopingCountries. HMSO, London, UK.

A guide for qualified social analysts – sociologists, anthropologists and humangeographers – to help them apply their expertise in practical developmentwork. The guide describes the functions and responsibilities of social analystsworking in multi-disciplinary teams; and provides useful materials and anextensive bibliography.

ODA (now DFID) (1996) Water and NGOs, Workshop organised by WEDC onbehalf of ODA, 10 June 1996.

The workshop aimed to explore how to expand community-based approachesand strengthen the role of NGOs working in the water sector. The reportcontains five papers which were presented at the workshop: 1) Overview ofNGO involvement in the water sector; 2) ODA synthesis evaluation of ruralwater projects; 3) Technical and management issues; 4) Social issues; 5) Policyissues.

ODI (1991) Values for the Environment. Winpenny, J., Overseas DevelopmentInstitute, London, UK.

This book deals with how environmental concerns can be taken into accountin choosing and appraising projects. It sets out, for each of a number ofrepresentative sectors, a role for environmental economics, which is intendedto be feasible, plausible and useful.

ODI (1994) Managing Water as an Economic Resource. Winpenny, J., OverseasDevelopment Institute, London, UK.

This book emphasises the need for both suppliers and consumers to treat wateras a scarce commodity with an economic value. Policies for the improvedmanagement of existing supplies are evaluated based on case studies fromdifferent countries.

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ODI (1997) Understanding European Community Aid: Aid Policies,Management and Distribution Explained, A Cox et al, Overseas DevelopmentInstitute, London.

This book was funded by the Evaluation Unit (DGVIII) of the EuropeanCommunity. It describes the institutions, policies and legal basis of EC aid,together with a detailed inventory which analyses all EC aid flows on a sectoralas well as geographical basis. The publication sets out to provide a baseline forthe evaluations of EC aid as well as to serve as a public information documentin its own right.

OECD (1987) Pricing of Water Services. Paris, FranceThe report assesses the contribution of economic techniques, in particularwater pricing, for developing practical options for the efficient management ofdemand and supply of appropriate quality of water. The report presentsguidelines for promoting conservation, reallocation and re-use of waterresources through the combination of regulatory and economic instruments.

OECD (1992) Directory on Non-Governmental Environment and DevelopmentOrganisations in OECD Countries. Paris, France.

This publication provides an index and directory of Non-governmentalOrganisations in OECD countries working in the field of environment anddevelopment. Over 300 NGOs are listed under categories such as country,regions, fields of activity, etc. Text is in English and French.

OECD/DAC. (1996) Shaping the 21st Century: The Contribution ofDevelopment Co-operation. Paris, France.

This sets out the recommendations for development co-operation among theOECD members and focuses on poverty elimination, setting a target to reduceabsolute poverty by 50% by 2015.

Office International de L’Eau (1996) Conférence Euro-Méditerranéenne sur laGestion de L’Eau. Marseille 25-26 Novembre 1996, France.

This conference was organised by the EU and France with the support of thecity of Marseille on the management of water in the Mediterranean region.

Parey, V. P., (1993) DVWK Bulletin. Ecologically Sound Resources Managementin irrigation, Berlin, Germany.

This booklet contains the reports presented at the 10th International DVWKIrrigation symposium, Ecologically Sound Resources Management in Irrigationheld in 1993 in the framework of WASSER BERLIN 93. Three papers are relevantto water resources planning. These are: 1) Water Management and theEnvironment; 2) Water and Sustainable Development; 3) Water and LandManagement Associations as a Tool of Resource Conservation.

Pearce, D. W. and Turner, R. K. (1990) Economics of Natural Resources and theEnvironment. Harvester Wheatsheaf, Herts, UK.

A grounding in the economics required to understand national, internationaland global environmental problems which methodically examines the muchdiscussed concept of ‘sustainable development’. This discussion is set in thewider context of environmental and ethical values and concerns, including theimplications of resource depletion and degredation for future generations andthe special problems of the Third World.

Rogers, P., (1993) Comprehensive Water Resources Management. A ConceptPaper. The World Bank, Washington, USA.

This paper is a joint product of the Water and Sanitation Division,Infrastructure and Urban Development Department, and the AgriculturalPolicies Division, Agriculture and Rural Development Department, and is part

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of a larger effort to define a Bank water resources management policy. Thereport discusses new approaches that are needed to integrate water resource useamong different users and different economic sectors.

SEI (1997) Comprehensive assessment of the freshwater resources of the world,Stockholm Environment Institute, Sweden.

This was prepared for the United Nations Economic and Social Council as a keyresource document for the UN General Assembly Special Session of June 1997(UNCED 2). It includes a set of scientifically based background papers whichdiscuss a range of key issues related to water quality and quantity.

SIDA/IRC (1994) Towards Better Water Resources Management: A catalogue ofpolicies and strategies of external support agencies. Ref. Series 10, Viisscher, J. T.and Soresson, M., SIDA, Sweden.

A comprehensive review of the different water resources policies and strategiesof donors.

SIDA (1996) A Gender Perspective in the Water Resource Management Sector.Publications on Water Resources No.6, SIDA, Sweden.

The book aims to further the development of awareness, commitment andcapacity for working with a gender perspective in water resources management.The first part analyses the linkages between gender equality and water resourcesmanagement; the second looks at ‘talking points’ to guide policy dialogue; andfinally it provides guidance for mainstreaming gender in different parts of theplanning cycle.

SIDA (1997) Ecological Alternatives in Sanitation, Proceedings from SIDAWorkshop, Balingsholm, Sweden, 6-9 August 1997. Publications on WaterResources, No. 9, Department for Natural Resources and the Environment,SIDA, Sweden.

The purpose of this workshop was to widen the range of policy options insanitation by presenting and discussing ecological alternatives in urbansanitation with special reference to the possibility of reusing human excreta,particularly urine, for agricultural purposes. Important aspects of ecologicalsanitation, case studies, background papers and recommendations are included.

UNCED (1992) Agenda 21, Chapter 18. Protecting the Supply and Quality ofWater Resources.

In Chapter 18 of Agenda 21 over 270 recommendations are made for action,under seven main priority programme areas: 1) Ensuring the integratedmanagement and development of water resources; 2) Assessing water quality,supply and demand; 3) Protecting water resource quality and aquaticecosystems; 4) Improving drinking water supply and sanitation; 5) Ensuringsustainable water supply and use for cities; 6) Managing water resources forsustainable food production and development; 7) Assessing the impact ofclimate change on water resources.

UNCED (1994) Water and Health in Underprivileged Urban Areas, UnitedNations Conference on Environment and Development, Sophia Antipolis,February 1994

This Conference looked primarily at how the commitments made at Rio deJaneiro in 1992 could be formulated into specific programmes with reference tourban underprivileged community health and water problems. Fourperspectives for analyses were chosen: the role of institutions; communityparticipation; appropriate technologies and know-how; financing andmanagement.

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UNCSD (1998) Strategic approaches to freshwater management, Report of the6th Session of the United Nations Commission for Sustainable Development,New York.

This report is the culmination of a series of international events between July1997 and April 1998 and presents recommendations for a programme for thefurther implementation of Agenda 21. The document summarises the findingsof the Expert Group Meeting in Harare, Zimbabwe, in January 1998; theInternational Conference on Water and Sustainable Development, Paris, March1998; and the Petersburg Round Table on Global Water Politics, Germany,March 1998.

UNDP (1990) Tools for Community Participation, L. Srinivasan.PROWESS/UNDP Technical Series, Involving Women in Water and Sanitation,New York.

The report looks firstly at how to start a community participation programmelooking at planning a programme, organising and designing workshops andusing simple daily evaluation techniques and activities.

UNDP/World Bank (1996) An evaluation of the UNDP-World Bank Water andSanitation Program: a Forward-looking Assessment. Report of an IndependentTeam. World Bank, Washington, USA.

The evaluation team looked at capacity-building, promotion and support ofsustainable investments, the use of alternative approaches and the learningprocess of the joint UNDP–World Bank Water and Sanitation Program.

UNECE (1993) Protection of Water Resources and Aquatic Ecosystems, WaterSeries No.1, UN Economic Commission for Europe, Geneva, Switzerland.

Based on the experiences gained with the implementation of the UNECEConvention on the Protection and Use of Transboundary Watercourses andInternational Lakes, Helsinki, 1992. Part I provides guidelines on the ecosystemapproach in water management; Part II relates to the water quality criteria andobjectives; and Part III is on the prevention and control of water pollution fromfertilisers and pesticides.

UNEP (1996) Proceedings from the UNEP workshop on Rapid Integrated RiverBasin Assessments. February 20-22, 1996, Stephenville, Texas. Hosted byTarleton State University, USA.

This report describes the Rapid Integrated River Basin Assessment (RIRBA)process, which was developed at the workshop. The report describes the twophases of RIRBA: 1) collection and analysis of data; 2) development of policyscenarios and analysis of potential futures; followed by appendices, workshophand-outs and summaries from conference presenters.

UNESCAP (1995) Integrated Water Resources Management in Asia and thePacific. United Nations, Economic and Social Commission for Asia and thePacific, Water Resources Series No. 75, Bangkok, Thailand.

This report contains the proceedings of the Expert Meeting on the Implicationsof Agenda 21 for Integrated Water Management in Asia and the Pacific held inBangkok from 13 to 15 September 1995. It is presented in four parts: 1) Reportof the meeting; 2) Background papers presented by the ESCAP secretariat and aconsultant; 3) Selected country papers submitted by the participants; 4)Selected papers submitted by representatives of international organisations andagencies.

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UNESCAP (1997) Guidelines on Water and Sustainable Development:Principles and Policy Options. Economic and Social Commission for Asia andthe Pacific. Water Resources Series No. 77, Bangkok, Thailand.

These Guidelines address all aspects of protection of freshwater resourcesoutlined in Chapter 18 of Agenda 21, namely, legal aspects, water protectionand conservation, water pollution prevention, groundwater protection andconservation, freshwater living resources, application of clean technology, andmonitoring and surveillance of water bodies. The guidelines recognise thatbecause there is increasing competition for finite water supplies on the globalscale and a growing risk of water pollution, suitable policies and actions areneeded to ensure sustainable development through an approach whichintegrates development and environmental objectives.

UNESCAP (1997) Guidebook to Water Resources, Use and Management in Asiaand the Pacific. Volume One: Water Resources and Water Use. Economic andSocial Commission for Asia and the Pacific. Water Resources Series No. 74,Bangkok, Thailand.

This report is a synthesis of data available in numerous publications concerningthe Asian and Pacific region as a whole or for specific countries and areaswithin the region. The data concerns: physiography, climate, water resources,water quality and pollution, water availability patterns, water use patterns andwater demand projections.

UNESCO (1987) Communication Strategies for Heightening Awareness ofWater. Report No.2 of IHP II Project C1, Studies and reports in hydrologyNo.47, ed Sadler, B.S., UNESCO, Paris.

This report focuses on the need for recognising the relationships between waterand socio-economic development. It reviews the need for communication,examines the problems and techniques of communication, and discussesmeans for heightening awareness among planners, decision-makers and thegeneral public.

UNESCO (1991) Approaches to Integrated Water Resources Management inHumid Tropical and Arid and Semiarid Zones in Developing Countries.Maynard M. Hufschmidt and Janusz Kindler. UNESCO, Paris.

This report is the result of activities under two International HydrologicalProgramme projects, both concerned with development of methodologies forintegrated water resources planning and management based on case studies.The main report is in four parts describing the planning and policy setting forwater resources management, the conceptual statement for analysis,experiences with water resources management in developing countries, and aproposed management approach for 1990 to 2010.

UNESCO/WHO/UNEP (1996) Water Quality Assessments. Chapman, D. (ed),Geneva, Switzerland.

This book gives comprehensive advice on designing and setting up monitoringprogrammes to obtain valid data for water quality assessments in all types offreshwater bodies. Advice is given on the selection of variables to be measuredin water, sediment and biota, concentrating particularly on current waterquality issues in different parts of the world.

UNICEF. Waterfront. [email protected], New York, USA. This biennial publication of the UNICEF Water, Environment and Sanitationcluster contains news of significant international developments in water andsanitation, information exchange, and useful low-cost BWSS project andprogramme profiles from around the world.

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UNICEF (1995) Strategies in Water and Environmental Sanitation.E/ICEF/1995/17, New York, USA.

The UNICEF 1995 policy document on water and sanitation, setting out theorganisation’s strategies and approaches for promoting coverage of basic waterand sanitation services within an environmentally sustainable framework, andpromoting the necessary behavioural changes to realise health benefits,especially for children, from services.

WHO/FAO/UNEP (1991) Guidelines for Forecasting the Vector-bourne DiseaseImplications of Water Resources Development. PEEM Guideline Series No.2,PEEM Secretariat, Geneva, Switzerland.

These guidelines are aimed at anyone who wishes to make a rapid assessmentof the health risks associated with a water development project in the tropics orsub-tropics at an early planning phase. The format is such that a minimumnumber of questions allow a knowledgeable person to obtain approximateanswers based on existing information.

WHO (1992) Our Planet, Our Health: Report of the WHO Commission onHealth and Environment, WHO, Geneva.

A comprehensive and practical study of the ways in which the environmentinteracts with public health in the development context. Includes chapters onfood and agriculture, water, human settlements and urbanisation, andtransboundary and international problems.

WHO (1993) Guidelines for Drinking-water Quality, Volume 1:Recommendations, Geneva, Switzerland.

This sets out guideline values for a large number of water contaminantsrelevant to the quality of drinking water. The book also provides anexplanation of how the guideline values should be applied, the criteria used inselecting the various chemical, physical, microbiological, and radiologicalcontaminants considered, a description of the approaches used to derive theguideline values, and brief summary statements supporting the valuesrecommended or explaining why no health-based guideline value is necessaryat present.

WHO (1994) Financial Management of Water Supply and SanitationA Handbook, Geneva, Switzerland.

This describes a range of financial principles and methods for improving themanagement of water supply and sanitation services of all types. It is aimed atdecision-makers and shows how financial mechanisms, such as cost recovery,cash raising, and cost containment, can be used to ensure that services arefinancially sustainable and able to meet users’ needs.

WHO (1996) Guidelines for Drinking-water Quality. Volume 2: Health Criteriaand Other Supporting Information, Geneva, Switzerland.

The book has 17 chapters presented in three parts. The first, on microbiologicalaspects, addresses the common and widespread health risks associated with thedirect or indirect contamination of drinking-water with human or animalexcreta, particularly faeces. Separate chapters review data on the health hazardsposed by selected bacteria, viruses, protozoa, helminths, toxins fromcyanobacteria, and nuisance organisms.

WHO/WSSCC/UNICEF (1996) (WHO/EOS/96.15) Water Supply andSanitation Monitoring Report 1996; Sector Status as of 31 December 1994.Geneva, Switzerland.

This valuable publication was set up after the Water Decade and is issued everytwo years. It monitors progress on providing safe water supply and sanitation

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to the unserved population providing co-ordination for an internationalprogramme of data collection based on a set of well-defined and generally usedterms to ensure high standards and comparable information.

WHO/WSSCC (1997) Sanitation Promotion Kit. Water Supply SanitationCollaborative Council, WHO/EOS/97.12, Geneva, Switzerland.

This publication examines the need for a sanitation promotion kit looking notonly at the present problems of sanitation but those likely to appear in the nextcentury. The report examines ways of getting sanitation onto the politicalagenda and how to gain more effective co-operation within and betweensectors. In subsequent sections the report examines best sanitation practices,looks at the needs and roles of various stakeholders and examines a number ofcase studies.

WMO/UNESCO (1991) Report on Water Resource Assessment, London. A number of needs for improvement in water resource assessment wereidentified in the 1997 Mar del Plata Action Plan. This report discusses progressin the implementation of Mar del Plata Action Plan and presents a strategy forthe 1990s.

WMO (1995) African Conference on Water Resources: Policy and Assessment.Report of the Conference, Addis Ababa, Ethiopia, 20-25 March 1995. WorldMeteorological Organisation and UN Economic Commission for Africa, AddisAbaba, Ethiopia.

The objective of the conference was to to prepare a Strategy and Action Planwithin the context of water resource assessment in Africa. Thematic areasinclude the economic challenges in relation to water scarity and stress,institutional arrangements for integrated water resource assessment, capacitybuilding, and policy, strategy and action plans for water resource assessment.The report is divided in to two parts: I) Report of the Conference, II) AfricanWater Resources Assessment Programme – Policy, Strategy, and Action Plan.

WMO/IADB (1996) Conference on Water Resources Assessment andmanagement Strategies in Latin America and the Caribbean. San José, CostaRica, 6-11 May 1996. Report of the Conference.

The objective of the conference was to prepare an Action Plan within thecontext of sustainable development, ensuring that integrated andcomprehensive assessment and integrated management of water resourcesreflects the socio-economic needs of the country and its citizens and thepreservation of the environment.

World Bank (1989) Sub-Saharan Africa from Crisis to Sustainable Growth. ALong Term Perspective Study, Washington, USA.

This report provides a long term perspective on the economy of Sub-SaharanAfrica. Building on many studies, it assesses the policies and measures neededfor Africa to achieve a sustained and sustainable improvement in well-being.The report highlights the fact that sound macroeconomic policies and anefficient infrastructure are not sufficient to transform African economies, butthat major efforts are needed to strengthen the institutional framework withinwhich development can take place.

World Bank (1992) Water Resources Institutions: Some Principles and Practices.World Bank Technical Paper No. 191. Frederiksen, H.D., Washington, USA.

This paper presents institutional principles found to be effective for thesuccessful management of water resources. These principles are drawn from arange of physical and institutional settings where countries have shownpositive results in addressing difficult water management issues.

World Bank (1993) A World Bank Policy Paper. Water Resources Management,Washington, USA.

The policy paper is a landmark statement of the World Bank’s policy on water,reflecting a co-ordinated view of several different strands in the Bank’soperations: irrigation, watershed management, flood control and hydropower,environmental protection, and drinking water and sanitation services. Thepaper admits problems in its past operations in these areas, causing viciouscircles and unreliable services, unwillingness to pay, inadequate funding, and afurther deterioration in services.

World Bank (1993) Balancing Water Demands with Supplies. The Role ofManagement in a World of Increasing Scarcity. World Bank Technical Paper No.189, Frederick, K.D., Washington, USA.

This paper deals with the increasingly important topic of how to balance waterdemands with supplies. It examines the experience of OECD countries ininfluencing the behaviour of water users, and draws lessons from attempts tomanage demand by imposing water use regulations and employing economicincentives.

World Bank (1993) Water Resources Management in Asia, Volume 1, MainReport. World Bank Technical Paper 212, Frederiksen, H.D., Berkoff, J., andBarber, W. , Washington, USA.

This report presents a management framework to address the demand for waterin Asia, which has been caused by rapid population growth and economicdevelopment. Ways of improving planning and long-term management aresuggested, and a general strategy for future World Bank lending andinvolvement is described.

World Bank (1994) A Strategy for Managing Water in the Middle East andNorth Africa. Directions in Development, Washington, USA.

This booklet highlights the implications of a new Bank policy for the MiddleEast and North Africa (MENA) regions, where water is of central concern to life.It proposes a practical step-by-step approach to tackling water resourcesproblems in a co-ordinated and sustainable manner.

World Bank (1994) A Guide to the Formulation of Water Resources Strategy.World Bank Technical Paper No. 263. le Moigne, G., Subramanian, A., Xie, M.,and Giltner, S., Washington, USA.

This report, aimed at policy makers in the developing world, addresses the issueof increasing the capacity to manage water resources through the process ofstrategy formulation. The report incorporates the elements of holistic waterresources management, institutional and human resources, informationsystems, stakeholder participation, economics, environment and health.

World Bank (1994) Principles and Practices for Dealing with Water ResourcesIssues. World Bank Technical Paper No. 233, Frederiksen, H.D., Berkoff,J., andBarber, W., Washington, USA.

This report identifies the common issues that countries face when attemptingto regulate, plan and manage their water resources. The issues are grouped intofour main categories: Institutions; Resource Planning and Long-TermManagement; Real-Time Management of Water Resources; and FinancialAspects of Water Resources Activities.

World Bank (1996) Measuring Economic Benefits for Water Investments andPolicies. World Bank Technical Paper 338, Young, R.A., Washington, USA.

Reviews and assesses the concepts and methods for estimating the economicbenefits of investment and allocation decisions involving water, and describesthe operational uses of these methods.

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World Bank (1996) African Water Resources. Challenges and Opportunities forSustainable Development. World Bank Technical Paper No. 331. AfricaTechnical Department Series, Washington, USA.

This document proposes that water resources management in African countriesshould be integrated, cross-sectoral, and based on catchment area. Itrecommends key strategic interventions for African consideration and discussesthe operational implications for the World Bank.

World Bank (1997) User Organisations for Sustainable Water Services. WorldBank Technical Paper 354, Subramanian, A., Jagannathan, N.V. and Meinzen-Dick, R., Washington, USA.

Water users’ organisations are one example of community participation at workin the sectors of irrigation, drinking water supply, and sanitation. This paperlooks at the conditions under which these organisations are most effective inmanaging water systems. It identifies key external factors and internalstructures for sustainable user associations, as well as the conditions forpartnership between government agencies and the associations.

World Bank (1997) International Agreements. Fifth World Bank Conference onEnvironmentally and Socially Sustainable Development. Washington, USA.

This meeting drew together leading scientists, government ministers,economists, lawyers and environmentalists to look both at immediateenvironmental concerns and the need for closer ties between the world’sscientific, economic and legal communities. While many countries havesigned environmental treaties such as the UN Framework Convention onClimate Change and other agreements governing seas and oceans, forests andhazardous waste, few signatories have so far carried out their legal obligations.

World Bank (1997) Performance Monitoring Indicators Handbook. World BankTechnical Paper No.334, Mosse, R. and Sontheimer, L.E., Washington, USA.

This handbook introduces and supplements notes developed by World Bankstaff on suggested performance monitoring indicators for each of the mainsectors in which the Bank is active. The notes provide a framework for use bytask managers, borrowers, and project implementation units inside the Bank inanalysing the relationship between objectives and monitorable outcomes andimpacts.

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ACC Administrative Committee on Coordination (UN)ACP (Sub-Saharan) African, Caribbean and PacificADB Asian Development BankALA Asia and Latin AmericaAWUM Agricultural water use and managementBWSS Basic water supply and sanitation servicesCEC Commission of the European CommunityCEES/NIS Central and Eastern Europe and the Newly Independent

States (of the former Soviet Union)COI Cost of illnessCV Contingent valuationCVM Contingent valuation methodDAC Development Assistance CommitteeDANIDA Danish International Development AssistanceDC Decentralised co-operationDCP Data collection platformsDESA Department for Economic and Social AffairsDFID Department for International DevelopmentDG Directorate General DM Demand managementEA Environmental analysisEC European CommissionECU European currency unitEDF European Development FundEIA Environmental Impact AssessmentEIB European Investment BankEIRR Economic internal rate of returnEOS Division of Operational Support in Environmental HealthEU European UnionEXACT Executive Action TeamFA Focus AreaFAO Food and Agriculture OrganisationFEA Financial and economic analysisFIRR Financial internal rate of return

Acronyms

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FP Financing ProposalGAD Gender and developmentGATT General Agreement on Trade and TariffsGWP Global Water PartnershipHC Human capitalHPM Hedonic property methodHYCOS Hydrological Cycle Observing SystemIADB Inter-American Development BankICID International Commission on Irrigation and DrainageIFAD International Fund for Agricultural DevelopmentIHE International Institute for Infrastructural Hydraulic and

Environmental EngineeringIHP International Hydrology ProgrammeIIMI International Irrigation Management InstituteINBO International Network of River Basin OrganisationsINPIM International Network on Participatory Irrigation

ManagementIRC International Water and Sanitation CentreISPAN Irrigation Support Project for Asia and the Near EastITK Indigenous technical knowledgeIUCN The World Conservation UnionIWRM Integrated Water Resource ManagementKAP Knowledge, attitude and practiceLEAD The Leiden Ethno-systems and Development ProgrammeM&E Monitoring and evaluationMED Mediterranean and Middle EastMED-URB Mediterranean and Middle East – Urban ProgrammeMENA Middle East and North AfricaMVPE Market valuation of physical effectsMWWS Municipal water and wastewater servicesNGO Non-governmental organisationNIP National Indicative ProgrammeNPV Net present valueO&M Operation and maintenanceODA Official development assistanceODI Overseas Development InstituteOECD Organization for Economic Co-operation and

DevelopmentPCM Project Cycle ManagementPEEM Panel of Experts on Environmental ManagementPIM Participatory Irrigation ManagementPRA Participatory rural appraisalPSC Project support communicationsPTD Participatory Technology DevelopmentRBO River basin organisationsRC Replacement costRIP Regional Indicative ProgrammeRIRBA Rapid Integrated River Basin AssessmentRRA Rapid rural appraisal

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SADC Southern African Development CommunitySIA Social impact assessmentSIDA Swedish International Development Co-operation AgencySSA Sub-Saharan AfricaTCM Travel cost methodTOR Terms of referenceUK United KingdomUN United NationsUNCED United Nations Conference on Environment and

Development UNCSD United Nations Commission for Sustainable DevelopmentUNDP United Nations Development ProgrammeUNECE United Nations Economic Commission for EuropeUNEP United Nations Environment ProgrammeUNESCAP United Nations Economic and Social Commission for Asia

and the PacificUNESCO United Nations Educational, Scientific and Cultural

OrganisationUNGASS United Nations General Assembly Special SessionUNICEF United Nations Children’s FundUS United StatesUSAID United States Agency for International DevelopmentVIP Ventilated improved pitWHO World Health OrganisationWHYCOS World Hydrological Cycle Observing SystemWID Women in developmentWMO World Meteorological OrganisationWRAP Water resources assessment and planningWSS Water supply and sanitationWSSCC Water Supply and Sanitation Collaborative CouncilWTP Willingness to payWWC World Water Council

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The following people and institutions have contributed to the preparation of the Guidelines.

European CommissionAmos Tincani (DGVIII/A/1)André Liebaert (DGVIII/E/5)Albert Alexis (DGVIII/F/5)Bartolome Amat Armengol (DGVIII/G/2)Fabio d’Aversa (DGVIII/A/6)Bernard Brusset (DGIB/A/5)Nikolaos Christoforides (DGIB/D/2)Reinhard Ebersberg (DGVIII/D/5)Antonio Garcia Fragio (DGVIII/E/5)Bernard Guillon (DGVIII/D/6)Guy Huaux (DGVIII/E/6)Anne de Ligne (DGVIII/A/1)Claire Mandouze (DGVIII/B/2)Michael Parkes (DGVIII/A/1)Pierre Peligry (DGVIII/D)Artur Runge-Metzger (DGVIII/A/1)Ingrid Schwaiger (DGIB/D/4)Eduardo Sorribes Manzana (DGIB/C/4)Bruce Thompson (DG VIII/A/1)Hubertus Zimmer (DG VIII/E)

ConsultantsAlan W Hall, Team Leader (HR Wallingford)Maggie Black, Co-Writer/Editor, OxfordTom Brabben, Environmental Scientist (HR Wallingford)Jean-Claude Ceuppens, Water supply and sanitation engineer (Hydro-R&D)Tom Franks, PCM expert (University of Bradford)Josianne Mongellaz, Workshops/translation (Office International de l’Eau)Lionel Robaux, Engineer (Office International de l’Eau)Nigel Walmsley, Water Resources Institutions (HR Wallingford)Diane Ward, Research/Administrative AssistantJim Winpenny, Economist (Overseas Development Institute)

Important contributions were also made by: Gunilla Björklund (Stockholm EnvironmentInstitute), Gez Cornish and Nicola Hasnip (HR Wallingford), Joël Mancel (OfficeInternational de l’Eau) and Marie Fry.

Acknowledgements

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ProductionDesign and layout:Peter Tucker, Holbrook Design Oxford Ltd, UK

Printing:Colourwise Ltd, Burgess Hill, UK

Photographs

Cover: (clockwise from top left):UNICEF, (Isaac), EC, HR Wallingford (Bolton)

Page 10: UNICEF (Asabe)Page 20: Maggie BlackPage 40: DFID (Mawson)Page 56: DFIDPage 70: UNICEF (Asabe)Page 82: DFIDPage 94: ECPage 106: DFID (Sheikh)Page 138: DFID (Davies)Page 176: Maggie BlackPage 186: UNICEF (Isaac)Page 196: DFID (Oxlee)Page 208: DFID (Sheikh)Page 228: UNICEF (Santoyo)Page 278: Brtish Geological Survey (Jones)Page 290: Maggie Black

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