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Water Financing Partnership Facility Annual Report 2017

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Water Financing Partnership Facility Annual Report 2017 ABBREVIATIONS ADB – Asian Development Bank AWDO – Asian Water Development Outlook CDTA – capacity development technical assistance DBO – design-build-operate DMC – developing member country DMF – design and monitoring framework IWRM – integrated water resources management KSTA – knowledge and support technical assistance O&M – operation and maintenance PATA – policy advisory technical assistance PCR – project completion report PRC – People's Republic of China RETA – regional technical assistance TA – technical assistance TCR – TA completion report WFPF – Water Financing Partnership Facility NOTES (i) In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgment as to the legal or other status of any territory or area. (ii) In this report, "$" refers to US dollars. Governance of the Water Financing Partnership Facility WFPF Steering Amy S. P. Leung, Director General, Sustainable Development and Climate Committee Chair Change Department (SDCC) WFPF Steering Sean O’Sullivan, Director General, Central and West Asia Department Committee (CWRD) Members Indu Bhushan, Director General, East Asia Department (EARD) Carmela D. Locsin, Director General, Pacific Department (PARD) Michael Peter Barrow, Director General, Private Sector Operations Department (PSOD) Hun Kim, Director General, South Asia Department (SARD) Ramesh Subramaniam, Director General, Southeast Asia Department (SERD) Water Sector Qingfeng Zhang, Director, Environment, Natural Resources, and Committee Chair Agriculture Division, EARD Water Sector Natsuko Totsuka, OIC, Environment, Natural Resources, and Agriculture Committee Division, CWRD Members Ye Yong, Director, Urban Development and Water Division, CWRD Sangay Penjor, Director, Urban and Social Sectors Division, EARD Emma Veve, Director, Urban, Social Development, and Public Management Division, PARD Mio Oka, Director, Environment, Natural Resources, and Agriculture Division, SARD Sekhar Bonu, Director, Urban Development and Water Division, SARD Jiangfeng Zhang, Director, Environment, Natural Resources, and Agriculture Division, SERD Vijay Padmanabhan, Director, Urban Development and Water Division, SERD Facility Manager/ N.J. Ahmad, Deputy Director General, SDCC conc. Chief Compliance Officer Alternate Facility OIC, Sector Advisory Service Cluster Manager Thomas Panella, Chief of Water Sector Group, SDCC Secretariat Thomas Panella, Chief of Water Sector Group, SDCC Frank Radstake, Principal Water Resources Specialist, SDCC Michiel de Lijster, Senior Water Resources Specialist, SDCC Pia Corrina Reyes, Water Resources Officer, SDCC Carmela Villamar, Operations Analyst, SDCC Omar Shariff Belisario, Operations Assistant, SDCC Ellen Pascua, Consultant, SDCC Francisco Roble, Consultant, SDCC Office of Kai Preugschat, Head Cofinancing Sujata Gupta, Director Operations (OCO) Toshimasa Dojima, Principal Financing Partnerships Specialist Ilaria Caetani, Senior Financing Partnerships Specialist Fiona Bannert, Financing Partnership Specialist CONTENTS I. INTRODUCTION 1 II. HIGHLIGHTS AND KEY ACHIEVEMENTS 1 III. RESULTS FRAMEWORK 7 A. Progress Towards WFPF Impact 7 B. Progress Towards WFPF Outcome 1 9 C. Progress Towards WFPF Outcome 2 10 D. Progress Towards WFPF Outputs 11 IV. FINANCIAL STATUS 14 A. Partner Contributions 14 B. Resource Utilization 15 C. Disbursement 15 D. Resource Allocation Ratio 15 V. MANAGEMENT OF THE FACILITY 18 VI. RELATIONSHIP WITH FINANCING PARTNERS 18 VII. LESSONS LEARNED, EXPERIENCES GAINED, AND KEY CONSTRAINTS 19 VIII. EXTERNAL FACTORS RELEVANT TO THE FACILITY 20 IX. OVERVIEW OF 2018 ACTIVITIES 21 APPENDIXES 1. Overview and Governance Structure of WFPF 2. WFPF Revised Design and Monitoring Framework 3. List of 2018 Approved Allocations 4. Summary of Poverty Impact and Gender Inclusiveness for 2017 Project Completion Reports 5. Summary of Project Completion Reports previously reported 6. Summary of Policy Advisory Technical Assistance Completion Report completed in 2017 7. Summary of all Policy Advisory Technical Assistance Completion Reports 8. Summary of Capacity Development Technical Assistance Completion Reports completed in 2017 9. Summary of all Capacity Development Technical Assistance Completion Reports 10. Status of Grant Report – Multidonor Trust Fund 11. Status of Grant Report – Netherlands Trust Fund 12. Status of Grant Report – Sanitation Financing Partnership Trust Fund 1 I. INTRODUCTION 1. The Water Financing Partnership Facility (WFPF or the Facility) was established on 29 November 2006, to provide additional financial and knowledge resources from development partners to support the implementation of Asian Development Bank's (ADB) Water Financing Program, thus achieving the following targeted outcomes by 2020: (i) 500 million people with sustainable access to safe drinking water and improved sanitation, (ii) 170 million people with reduced risks to floods, (iii) 95 million people with more productive and efficient irrigation and drainage services, (iv) integrated water resources management (IWRM) introduced in 30 river basins, and (v) improved water governance through national water reforms and capacity development The Facility’s overview and updated governance structure are provided in Appendix 1. 2. This Report covers the period January to December 2017 and presents the performance for the year against the annual work program and the cumulative performance to date measured against the Facility’s Design and Monitoring Framework (DMF) as revised in 2017 (see Appendix 2). II. HIGHLIGHTS AND KEY ACHIEVEMENTS 3. The WFPF operations in 2017 adopted a judicious approach to allocating limited resources as was indicated in the Facility’s Annual Work Program. Notwithstanding, the Facility maintained its commitment to help sustain increased water investments to meet the Water Financing Program annual investment target, including to help achieve the envisioned broadening of ADB’s water portfolio. 4. Section III of the report shows WFPF moving on track towards meeting the target impact, outcomes, and outputs as set out in the Facility’s DMF, with some targets already met. Achieving Milestones, Meeting Targets 5. WFPF resources replenished, water-food nexus receives more support. The confirmation of $9.495 million additional contribution from the Netherlands Government was reported in the January-June 2017 semiannual progress report. These additional resources are intended to facilitate expanded support to water-food security nexus. The amendment to channel financing agreement was signed in September 2017. The status of committed contributions as of end-2017 is summarized in Table 1. Table 1: Status of Committed Contributions as of 31 December 2017 (in Million) Financing Partners Committed Contributions Multidonor Trust Fund 52.442 Australia 24.209 Austria 8.468 Norway 4.562 Spain 10.000 Switzerland 5.203 Netherlands Trust Fund 44.248 Sanitation Financing Partnership Trust Fund 15.000 Total 111.690 2 6. Steady increase in WFPF disbursement sustained. While the recent replenishment of WFPF resources boosts its capacity to do more, particularly in strengthening the link between water and food, the Facility is mindful of the need to continuously improve its portfolio performance. In the last four years, WFPF has been able to demonstrate a steady increase in disbursement. As of December 2017, the overall Facility disbursement is at 79% from 72% in 2016. The overall disbursement during the period 2014-2017 is summarized in Table 2 below and the detailed disbursement per trust fund is provided in Table 15, para 47. Table 2: 2014–2017 Summary of Disbursement Performance (in Million) Year Committed1 Disbursed2 % Disbursed 2014 89.947 53.079 59% 2015 91.672 61.764 67% 2016 95.996 69.518 72% 2017 96.822 76.276 79% 7. Fifteen projects completed and financially closed. One of the measures adopted by the Facility to improve portfolio performance is to ensure prompt financial closing of completed projects. In 2017, fifteen projects comprising one grant component of loan, two TAs attached to loan, six stand-alone TAs and six direct charges were financially closed, freeing up a total of $1.01 million in savings which now form part of resources available for new allocations. 8. WFPF allocation of $2.92 million approved for ten projects. Ten projects received funding support from WFPF in 2017 totaling $2.92 million. In keeping with its commitment to support broadening of water investments, the approved allocations covered irrigation, environmental water management, as well as expansion of the Facility’s support to water accounting in river basins and productivity measurement in irrigation projects. The list of approved allocations is provided in Appendix 3. 9. The approved allocations for irrigation included a $750,000 grant component of the proposed “Water Efficiency Improvement in Drought Affected Provinces Project” in Viet Nam. This proposed $100 million project is programmed for 2018 approval. The WFPF grant will finance the project component to advance policy and institutional development for irrigation management in line with the recently approved Law on Hydraulic Works. The Project will prepare guidelines for implementing the new Law, particularly in relation to water entitlements, allocation and pricing. 10. To expand support to environmental Box 1: Pakistan water management, one of the approved Revitalizing the Ecosystems
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