Draft Design and Monitoring Framework______

Project Number: 45148 August 2012

Proposed Multitranche Financing Facility : Greater Water and Wastewater Management Improvement Program

DESIGN AND MONITORING FRAMEWORK FOR THE INVESTMENT PROGRAM

Data Sources and Reporting Assumptions Design Summary Performance Targets and Indicators Mechanisms and Risks Impact Improved urban Residents, particularly women, Census data from social Assumption environment and quality especially the poor, in Colombo have department Government of life for the residents better living conditions and more time continues to of Greater Colombo for productive activities because of 24- implement hour continuous water supply (baseline: institutional and 50% in 2012; target: 100% in 2024) financial reforms it previously committed Quality of discharge of wastewater itself to implementing. secondary treatment (BOD5 150 mg/l in Annual reports from 2012 baseline to 100mg/l target in 2024) CMC Risk Waterborne diseases drop below 1 per There is political and 1,000 persons in Greater Colombo by Census data from economic instability. 2024 (baseline: 2.2 per 1,000 persons in predefined hospitals in 2012) CMC Outcome Improved water supply Daily water supply increased in NWSDB reports Assumption and wastewater service low-pressure areaa (baseline: 5 hours in NWSDB and CMC and management in 2012; target: 24 hours by 2020) in follow the Greater Colombo Colombo recommended strategy and plan of Citywide NRW in Colombo reduced NWSDB water balance action for NRW (baseline: 49% citywide and 60% in audit reduction and for critical area in 2012; target: 20% in wastewater service Colombo and 18% in critical area by improvement. 2020) Risk Coverage of sewer network increased CMC annual reports Ongoing and planned including all BPL households (FHHs water supply projects, among them) (baseline: 80% in 2012; financed by JICA and target: 100% in Colombo in 2020) NWSDB, are not successfully implemented. Output 1. Rehabilitated water Degraded water supply pipes less than NWSDB annual reports Assumption supply system and 225 mm diameter replaced in Colombo Key officials who reduced NRW in (target: 450 km by 2018) receive the necessary Colombo capacity-building Increased percentage of households, Surveys conducted by training remain in including BPL households and FHHs, the loan consultants their positions. with access to piped water supply and NWSDB reports (baseline: 95% in 2012; target: 100% by 2018) in Colombo. Risk Prices of steel and All free water outlets in tenement NWSDB annual reports pipes increase gardens metered and consumer beyond projections. associations formed (target: 3,200 in 2020) (50% women members in executive committees

DMA mechanism for NRW reduction NWSDB annual reports established for Colombo (target: by the end of 2016)

Pumps and 12 km water supply NWSDB Project 2

transmission pipes replaced by 2017 progress reports

2. Improved wastewater Sewer network expanded (target: NWSDB Project services in Greater 445 km by 2020) in Colombo progress reports Colombo Access to sanitation for all in Greater Consultant’s surveys Colombo, including all BPL households and NWSDB project (FHHs among them) (baseline: 91% in progress reports 2012; target: 100% in 2020)

Rehabilitation of existing sewers (target: NWSDB Project 30 km by 2020) progress reports

Wastewater treatment capacity NWSDB Project increased (baseline: 0 in 2012; target: progress reports 175,000 m3/d by 2020)

3. Strengthened Cost recovery mechanism, through CMC annual reports institutional structure separate wastewater charges, and project progress and capacity of service introduced for wastewater services in reports providers CMC by 2016

Operations performance audit cell NWSDB annual reports established by 2013

RSC-WC reorganized, and all positions NWSDB annual reports filled (at least 15% women), and and business plans operational as an independent autonomous business center under NWSDB by 2017

Fully functioning and equipped NRW NWSDB annual reports unit in RSC-WC by 2017

NWSDB staff trained for NRW by the NWSDB Project end of 2020 (target: 1,000, at least 25% progress reports women by 2017)

GIS-based asset management system CMC and NWSDB established for both water and annual reports wastewater assets by 2020

Sewerage and drainage departments CMC annual reports segregated within CMC; wastewater department established as a separate unit with ring-fencing of accounts, expenditure, revenues, debt, etc by 2020.

Awareness and acceptance of Survey results wastewater tariff among citizens increased by 20% according to surveys conducted before and after the program

4. Project management Project implemented on time and within MOFP Report system in place budget, and rated successful by ADB project rating system

Recruit women engineers and NWSDB annual reports engineering assistants in the PMU for project implementation (15% of PMU staff are women) 3

Activities with Milestones Input 1. Water distribution network rehabilitation and replacement and Colombo citywide NRW ADB: $ 300 million reduction Government: $100 Critical Area million 1.1 Complete procurement of civil works contract by Q2 2013 1. 1.2 Complete civil works in critical area by Q2 2016 Outside Critical Area 1.3 Complete selection and design of pipes to be replaced and rehabilitated by Q4 2012 1.4 Complete procurement of civil works by Q3 2013 2. 1.5 Complete civil works outside critical area by Q4 2016 NRW Reduction 3. 1.6. Appoint core counterpart staff required for water project implementation by Q3 2012 1.7 Provide the NRW teams with vehicles, tools, equipment, and training, and mobilize the teams for active leakage control by Q2 2015 4. 1.8 Install system input meters and establish water balance by mid-2014 1.9 Establish DMAs by 2016 5. 1.10 Replace pumps and transmission lines by Q2 2017 1.11 Replace all service connections and meters by 2017 6. 1.12 Install flow and pressure monitoring equipment by mid-2016 1.13 Introduce meter-testing equipment and introduce facilities, and train staff by the end7. of 2016 1.14 Construct a dedicated Colombo NRW office facility (in Maligakanda) and an operational center in the critical area by the end of 2016 1.15 Establish water user groups in low-income areas (members at least 50% women) by 2016 2. Wastewater network expansion and construction of wastewater treatment plants in Greater Colombo 2.1 Procure civil works contract for expansion of sewer network by Q4 2016 2.2 Complete civil works of sewer network expansion by Q4 2019 2.3 Procure civil works contract for wastewater treatment plants by Q4 2017 2.4 Complete construction of treatment plants by Q3 2020 3. Strengthened institutional structure and capacity of service providers 3.1 Establish operations performance audit cell by Q4 2013 3.2 Issue tender documents for contract of MASCs by Q4 2012 3.3 Procure contract of MASCs; complete and mobilize consultants by Q2 2013 3.4 Develop and begin implementation of NRW management training and certification program by Q1 2014 3.5 Institutionalize reforms in RSC-WC and appoint all key staff by the end of 2015 3.6 Complete comprehensive staff training program in NWSDB by the end of 2016 3.7 Establish a staff performance incentive scheme by 2014 3.8 Implement campaign to increase public awareness of water conservation and NRW reduction by the end of 2016 3.9 Recruit NGO for community mobilization by Q3 2013 3.10 Recruit media consultants for community consultations and awareness raising in program implementation, community participation, employment opportunities, and program benefits by Q3 2013 3.11 Train water user groups in meter reading and O&M by 2018 3.12 Complete separation of wastewater department within CMC and complete separate accounting and other systems by Q4 2018 3.13. Introduce wastewater tariff by Q1 2020 3.14 Procure DSIC contract; complete and mobilize consultants by Q4 2014. 4. Investment Program manageged implemented. 4.1 PMU in NWSDB established by Q4 2012. 4.2 PMU in CMC strengthened by Q4 2014. ADB= Asian Development Bank, CDTA= capacity development technical assistance, CEA = Central Environmental Authority, CMC = Colombo Municipal Council, DMA = district metering area, GIS = geographic information system, km = kilometer, MASCs = management advisory and supervision consultants, MOFP = Ministry of Finance and Planning, NWSDB = National Water Supply and Drainage Board, MOFP, NRW = Non-revenue water, O&M = operation and maintenance, PMU = project management unit, Q= quarter, RSC-WC= Western Central Regional Support Center, TA = technical assistance. aLow-pressure area is about 12 km2 and refers to , , , , , Bovella, and Hulfsdrop. Source: Asian Development Bank.