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2019 ANNUAL REPORT Governance of the Water Financing Partnership Facility WFPF Steering WooChong Um, Director General, Sustainable Development and Climate Committee Change Department (SDCC) Chair WFPF Steering Werner Liepach, Director General, Central and West Asia Department (CWRD) Committee James Lynch, Director General, East Asia Department (EARD) Members Ma. Carmela D. Locsin, Director General, Pacifi c Department (PARD) Michael Peter Barrow, Director General, Private Sector Operations Department (PSOD) Kenichi Yokoyama, Director General, South Asia Department (SARD) Ramesh Subramaniam, Director General, Southeast Asia Department (SERD) Water Sector Qingfeng Zhang, Director, Environment, Natural Resources, and Agriculture Committee Division, EARD Chair Water Sector Donneth Walton, Director, Environment, Natural Resources, and Agriculture Committee Division, CWRD Members Yong Ye, Director, Urban Development and Water Division, CWRD Sangay Penjor, Director, Urban and Social Sectors Division, EARD Jingmin Huang, Director, Urban Development, Water Supply & Sanitation Division, PARD Hisaka Kimura, Advisor, PSOD Mio Oka, Director, Environment, Natural Resources, and Agriculture Division, SARD Norio Saito, 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 Robert Guild, Chief Sector Offi cer, SDCC Manager/ Thomas Panella, Chief of Water Sector Group, Sector Advisory Service Alternate Cluster (SDSC) Secretariat Thomas Panella, Chief of Water Sector Group, SDSC Coral Fernandez Illescas, Principal Water Resources Specialist, SDSC Geoff rey Wilson, Senior Water Resources Specialist, SDSC Christian Walder, Water Supply and Sanitation Specialist, SDSC Jacobus Johannes Veerman, Senior Water Resources Specialist, SDSC Sanmugam Prathapar, Senior Water Resources Specialist, SDSC Noriyuki Mori, Senior Water Resources Specialist (Dam Optimization), SDSC Jelle Beekma, Senior Water Resources Specialist (Food Security), SDSC Pia Reyes, Water Resources Offi cer, SDSC Fatima Bautista, Operations Analyst, SDSC Ellen Pascua, Consultant, SDSC Robert Domingo, Consultant, SDSC Partner Funds Jacob Sorensen, Director, Partner Funds Division (SDPF) Division Stella Tansengco-Schapero, Senior Financing Partnerships Specialist, SDPF Marites Torres, Senior Financing Partnerships Offi cer, SDPF Pablo Vazquez Gutierrez, Consultant, SDPF i WFPF ANNUAL REPORT | 2019 Contents INTRODUCTION 1 4 Bangladesh: In Uncertain Times, Ample Preparation for Food Production 6 People’s Republic of China: Creating a Green Corridor across the Red Republic STORIES FROM 8 Uzbekistan: From the Tragedy of the Aral Sea, A Slow Recovery OUR WFPF WORK 3 10 Papua New Guinea: Cleaning Up the Dirty Business of Fecal Sludge Management 12 Indonesia: How Applying LIDAR Technology for Irrigation Surveys Could Boost Food Security 17 Progress Toward Impact 20 Progress Toward Outcome 1 RESULTS FRAMEWORK 17 21 Progress Toward Outcome 2 24 Progress Toward Outputs 1 to 4 27 Partner Contributions FINANCIAL STATUS 29 29 Fund Utilization 31 Disbursements 35 Evaluation of Applications MANAGEMENT OF THE FACILITY 35 36 Portfolio Management 37 Resource Mobilization KEY CONSTRAINTS 39 Key Lessons and Experiences AND LESSONS LEARNED 39 39 Challenges and Key Constraints EXTERNAL FACTORS RELEVANT TO THE FACILITY 41 OVERVIEW OF 2020 ACTIVITIES 43 APPENDIXES 45 ii Tables and Figures Tables 1 Project Benefi ciaries and WFPF Contribution, 2006–2019 18 2 Benefi ciaries of Water Supply and Sanitation Projects, 2006–2019 19 3 Benefi ts from Projects Supporting the Water-Food Security Nexus 19 4 Committed Water Investments, 2006–2019 20 5 Committed Water Supply and Sanitation Investments, 2006–2019 21 6 Committed Sanitation Investments, 2006–2019 21 7 Committed Partner Contributions 29 8 Status of Fund Utilization – WFPF Secretariat Tabulation 30 9 Status of Fund Utilization – Based on Status of Grant Reports 30 10 Status of Fund Disbursements, as of 31 December 2019 31 11 Use of Funds by Window 31 12 Committed Water Investments by Subsector, 2019 35 13 Summary of Annual Disbursements, 2015–2019 36 14 Progress on Sanitation-related Commitments 36 15 Overview of 2020 Major Activities 44 Figures 1 Annual Use of Funds by Window 32 2 Distribution of Approved Allocations by Modality 32 3 Distribution of Approved Allocations by Subsector 33 4 Distribution of Approved Allocations by Region 33 iii WFPF ANNUAL REPORT | 2019 Abbreviations ADB Asian Development Bank AWDO Asian Water Development Outlook DGAS General Directorate for Water and Sanitation (Timor-Leste) DMC developing member country DMF design and monitoring framework FSM fecal sludge management IAMIS irrigation asset management information system IWRM integrated water resources management KSTA knowledge and support technical assistance LIDAR light detection and ranging NPS nonpoint source (pollution) O&M operations and maintenance PRC People’s Republic of China TA technical assistance TCR technical assistance completion report TRTA transaction technical assistance WFPF Water Financing Partnership Facility Notes (i) In preparing any country program or strategy, fi nancing 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. iv Flowing water. The primary objective of the WFPF is to help ensure ADB water operations is able to increase and improve water supply and sanitation investments so as to contribute toward the region’s growth and sustainability. INTRODUCTION The Water Financing Partnership Facility (WFPF or the Facility) was established on 29 November 2006 to provide additional fi nancial and knowledge resources from development partners to support the implementation of the 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 fl oods, and (iii) 95 million people with more productive and effi cient irrigation and drainage services. The Facility’s overview and updated governance structure are provided in Appendix 1. This report covers the period January to December 2019 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 (Appendix 2). The WFPF supports ADB’s Water Financing Program, which aims to deliver by 2020 more and better water and sanitation investments in the region that will help: 500 million people with sustainable access to safe drinking water and sanitation 765 million people 170 million people targeted by with reduced risks to flood the Water Financing Program 95 million people with more productive irrigation and drainage services At least 115 million of these beneficiaries are contributed by WFPF. 1 STORIES FROM OUR WFPF WORK This annual report features project stories that highlight some of the 2019 achievements of WFPF. The selection represents different types of WFPF support, as well as the fi ve subregions of ADB. For South Asia, a WFPF-cofi nanced transaction technical assistance (TRTA) for Bangladesh was approved in December 2019 to prepare a new investment, the Climate and Disaster Resilient Small-Scale Water Resources Management Project. In Central and West Asia, specifi cally Uzbekistan, a WFPF direct charge was approved to support the preparation of the proposed Climate Adaptive Water Resources Management in the Aral Sea Basin Sector Project. As for East Asia, in the People’s Republic of China (PRC), an investment project for the Yangtze River Green Ecological Corridor Comprehensive Agriculture Project was committed in April 2019. This benefi tted from WFPF project preparation support by way of TRTA cofi nancing. Meanwhile, in April 2019 in the Pacifi c, the WFPF direct charge support for carrying out the Assessment of Political Economy and Design of Pilot for Fecal Sludge Management in Papua New Guinea was completed. Lastly, the WFPF project implementation support for Indonesia’s Integrated Participatory Development and Management of Irrigation Program – through direct charge modality – was likewise completed. This WFPF funding enabled the project team to introduce LIDAR (light detection and ranging) surveys for operations and maintenance (O&M) of irrigation networks. This support is a sampling of the WFPF work in Southeast Asia. The following pages of this chapter further elaborate on the assistance provided and the context of the challenges being addressed by the respective developing member countries (DMCs). 2 WFPF ANNUAL REPORT | 2019 FROM THE STORIES WFPF Support by the Numbers BANGLADESH INDONESIA 6,000 hectares The irrigation area covered by With WFPF funding, the WFPF-funded LIDAR the TRTA increased to pilot survey. 30 subprojects (from 12) and 100 enhancement subprojects (from 40) PEOPLE’S REPUBLIC OF CHINA 95 districts will be assisted through the proposed ADB project resulting 168,000 from the WFPF-funded TRTA people mainly rural poor, will benefit from 242,000 the green corridor investment hectares and 1.15 million people will benefit from flood 6 watersheds embankments and water control will