REPUBLIC OF IRAQ MINISTRY OF MUNICIPALITY AND TOURISM IN KURDISTAN REGION ASSISTANCE FOR PROJECT IMPLEMENTATION OF WATER SUPPLY IMPROVEMENT PROJECTS IN KURDISTAN REGION Final Report (Summary) August 2018 JAPAN INTERNATIONAL COOPERATION AGENCY OPMAC Corporation 7R JR 18-025 TABLE OF CONTENTS MAP OF IRAQ .............................................................................................................................. i ABBREVIATIONS ...................................................................................................................... iii I. WATER SECTOR IN IRAQ ................................................................................................ 1 I.1 Water Sector Situation and Policy in Iraq ....................................................................... 1 I.2 Water Supply Problem in Kurdistan Region ................................................................... 2 I.3 Water Supply Sector Policy in Kurdistan Region ........................................................... 2 I.4 Japan’s Contribution in Iraq and Water Supply Project in Kurdistan Region ................. 3 II. ASSISTANCE FOR PROJECT IMPLEMENTATION ....................................................... 5 II.1 Need for Project Implementation Assistance .................................................................. 5 II.2 Field Survey in Kurdistan Region and the Purpose of This Report ................................ 5 III. INFORMATION AND FINDINGS THROUGH FIELD SURVEY AND RESEARCH .... 6 III.1 The Current Situation and Achievement of the Project .................................................. 6 III.2 Factors behind Shortage of Fund under the Project ........................................................ 7 III.3 Operation and Maintenance of WTPs Constructed under the Project ........................... 12 IV. NEW FINANCIAL ASSISTANCE PROPOSAL ............................................................... 14 IV.1 MOMT’s Proposal for New Financial Assistance ........................................................ 14 IV.2 Project Implementation and Operation and Maintenance Capacities ............................ 14 IV.3 O&M Budget and Tariff Reform................................................................................... 18 V. ENVIRONMENTAL AND SOCIAL CONSIDERATION ................................................ 19 V.1 Treatment of Sludges from WTPs ................................................................................. 19 V.2 Environmental Checklist ............................................................................................... 19 V.3 Environmental Certificate ............................................................................................. 20 V.4 Social impact of the Project .......................................................................................... 20 V.5 Environmental Management and Monitoring ............................................................... 20 Attachment 1: Environmental Checklist (for IQ-P11) ................................................................ 21 Attachment 2: Certification Letter from BOEK .......................................................................... 25 Attachment 3-1: Monitoring Form (Environmental and Social Impact – Construction Phase) 26 Attachment 3-2: Monitoring Form (Environmental and Social Impact – Operation Phase) ..... 28 Attachment 4: Monitoring Plan for Construction and Operation Phases .................................... 30 Attachment 5-1: Environmental Management Plan in Construction Phase ................................ 32 Attachment 5-2: Environmental Management Plan in Operation Phase ..................................... 35 Figure Figure 1: Expected overall project implementation structure ............................................. 15 Figure 2: Organization diagram of MOMT ......................................................................... 16 Figure 3: Organization diagram of DWH............................................................................ 16 Figure 4: Organization diagram of DWS ............................................................................ 17 Figure 5: Organization diagram of DWE ............................................................................ 17 Figure 6: Organization diagram of DWD............................................................................ 17 Table Table 1: Original scope of work and changes of the Project ................................................. 4 Table 2: Location of the Project ............................................................................................ 9 Table 3: Scope of Work of the Project ................................................................................ 10 Table 4: New tariff structure ............................................................................................... 18 MAP OF IRAQ i ABBREVIATIONS BOEK : Board of Environment in the Kurdistan Region C/S : Consulting Services D/D : Detailed Design DWD : Directorate of Water in Duhok DWE : Directorate of Water in Erbil DWH : Directorate of Water in Halabja DWS : Directorate of Water in Sulaimaniya EA : Executing Agency EIA : Environmental Impact Assessment EL : Elevation E/N : Exchange of Notes F/S : Feasibility Study GAO : United States Government Accountability Office GDWS : General Directorate of Water and Sewage GOI : Government of the Republic of Iraq GOJ : Government of Japan HDPE : High-Density Polyethylene IDP : Internally Displaced Persons ISIL : Islamic State in Iraq and the Levant JBIC : Japan Bank for International Cooperation JICA : Japan International Cooperation Agency JPY : Japanese Yen KRG : Kurdistan Regional Government L/A : Loan Agreement l/c/d : liters per capita per day ISRB : Iraqi Strategic Review Board NDS : National Development Strategy O&M : Operation and Maintenance ODA : Official Development Assistance PMT : Project Management Team MOEK : Ministry of Environment in the Kurdistan Region MOMT : Ministry of Municipality and Tourism in Kurdistan Region MOP : Ministry of Planning in Kurdistan Region MOPDC : Ministry of Planning and Development Cooperation iii SAPROF : Special Assistance for Project Formation TOR : Terms of Reference UNICEF : United Nations Children’s Fund UN-SCR : United Nations Security Council Resolution USAID : United States Agency for International Development USD : United States Dollar WHO : World Health Organization WTP : Water Treatment Plant iv I. WATER SECTOR IN IRAQ I.1 Water Sector Situation and Policy in Iraq 1. In 1980s, water supply facilities in Iraq almost operated efficiently and utilized then-current technology. According to the Iraq’s National Development Strategy (NDS) for the years 2005-2007 (so-called “the 1st NDS”)1, announced in June 2005 by the Iraqi Transitional Government at the time, prior to the 1991 Gulf War, safe drinking water was accessible to over 95% of urban and 75% of rural inhabitants. The average water supply was about 330 liters per capita per day (l/c/d) in Baghdad, the capital of Iraq, 250-300l/c/d in other cities and towns, and 180l/c/d in rural areas. But due to wars or economic sanctions during 1990s, after the result of insufficient expansion or improvement of the facilities or inappropriate operation and maintenance (O&M) and rapid population increase more than 2% annually, the said urban water service coverage declined to 92% and the rural coverage dropped to 46%. With regard to the water supply, it dropped to 150l/c/d in Baghdad, 110l/c/d in other cities and towns, and 65l/c/d in rural areas. 2. Water supply services in Iraq deteriorated from bad to worse after the 2003 Iraq War. According to the 2003 United Nations/World Bank Joint Iraq Needs Assessment (October 2003)2, production levels of water supply facilities had fallen to about 60% in 2003. The United States Government Accountability Office (GAO) described in its Report to Congressional Committees (GAO-05-872), dated September 20053, that the United States Agency for International Development (USAID) reported that, as of 2003, Iraq’s 140 major water treatment facilities were operating at about 35% of their design capacity. 3. As to the water treatment plants, most of them started its operation between 1950 and 1985, and some partially rehabilitation and modification were also implemented. While, assuming proper maintenance, the anticipated lifetime of these plants is estimated at 15 to 25 years, those had been shortened by lack of preventive maintenance and improper operation, as a result, the water supply restriction for just a few hours per day usually been in the whole area of Iraq. Therefore, many of the plants and water networks need emergency rehabilitation of the structure, equipment and plants themselves. 4. Regarding the quality of the drinking water, serious problems have been occurred. Actually, there are vital damage in the water networks, resulting in contaminated water supply at the consumer end. This was exacerbated by the collapse of the sewage network, increasing cross contamination of the water supply, and the collapse of the sewage treatment plants, increasing dramatically the amount of raw sewage being discharged directly into the water source. United Nations Children’s Fund (UNICEF) estimated a rise of 160% over in the mortality rate of under-five year old children in Iraq and diarrhea became one of leading causes of death among those under-five year old children4. 1 ISRB and MOPDC, 2005, [pdf] National Development Strategy 2005-2007.