JICA’s Assistance Strategy on Water Supply and Sanitation

May 2012

Japan International Cooperation Agency (JICA)

Preface

The U.N. General Assembly declared in 2010 that access to safe drinking water and basic sanitation was a basic human right. However, 780 million people around the world lack access to safe drinking water, and as many as 2.5 billion lack access to improved sanitation facilities.

As one of the Millennium Development Goals (MDGs), the international community has been striving to reduce by 2015, the proportion of people lacking such access by half.

Today, with only three years remaining, the target of improving access to basic sanitation appears to be out of reach, while considerable progress on the access to safe drinking water has been made, thus the world will meet the drinking water target but miss the sanitation one.

Safe drinking water and basic sanitation facilities are essential for people to be alive and maintain their healthy lives. As a member of the international community, JICA must make continuous efforts to accelerate improvement of the stagnant situation.

Meanwhile, vast population growth in developing countries has caused a dramatic increase in the demand for water that could result in its global shortage, given the limited availability of water resources. In such a case, impoverished people in developing countries would be the first to be adversely affected. Now, the issue of how to allocate limited water resources under sound water resources management cannot be avoided as a prerequisite for discussions about improving water supply and sanitation situations. Although the water resources management is a highly difficult task that involves various conflicting sectors in terms of water usage such as agriculture and energy, JICA must lead developing countries to accomplish it in close cooperation with other members of the international community.

This paper describes why (rationale and objectives), in what (priorities), and how (approaches and matters requiring attention) JICA will provide assistance regarding the important issue of water and sanitation that faces enormous challenges. I hope that this paper will help promote better mutual understanding among the various institutions involved in the issue, and contribute to further strengthen the efforts being made by the international community toward the significant challenges.

May 29, 2012

Hiroto Arakawa Senior Vice President Japan International Cooperation Agency

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I. Significance and objectives of cooperation in the area of water and sanitation1

Water is essential for human life. In addition to safe drinking water, water directly and indirectly supports human existence as a necessity for food production and various economic activities to maintain the lives of people. In reality, however, many people in the developing countries are facing the problem of water shortages. Despite significant progress made on the access to safe drinking water, which is one of the targets in the Millennium Development Goals (MDGs), millions of people are still forced to depend on contaminated drinking water, which, in combination with the sluggish improvement of the access to basic sanitation described later, contributes to an outbreak of contagious diseases and high mortality rates. Many poor populations, particularly in developing countries, are further threatened by problems originating from water, such as flooding and lack of food.

Not only humans need water. The natural environment and ecosystems surrounding people also need water. The deterioration of the natural environment due to inadequate water ultimately affects the existence of human lives.

The water resources available to humans, however, are not unlimited. Although the Earth is called the blue planet, fresh water comprises 2.5% of all water on the globe, a majority of which is ice in the polar regions, leaving a mere 0.01% of river and lake waters that are relatively easily available.

However, the demand for water continues to grow. It has been reported that by year 2030, available water resources will be 40% short of the global demand for water.2 The problems with water scarcity are rapidly becoming more serious amid growing populations, particularly in developing countries. Many developing countries are facing the extremely difficult issue of how to allocate limited water resources for the survival of their people, for national economic development, and for the preservation of the natural environment.

Figure 1: In 2030, water resources will be 40% short of the demand for water. Source: The 2030 Water Resources Group “Charting Our Water Future”

1 The term “sanitation” in this article means “appropriate management of human waste” as generally used by the

international community. 2 The 2030 Water Resources Group “Charting Our Water Future” (2009)

http://www.mckinsey.com/App_Media/Reports/Water/Charting_Our_Water_Future_Exec%20Summary_001.pdf

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Meanwhile, the problems of sanitation are closely related to water. One of the major causes of infant mortality in developing countries is diarrhea. Diarrhea in many cases is caused by infection with pathogenic bacteria discharged from feces, which makes it extremely important to build sanitation facilities (latrines or toilets) to isolate human excreta from the living environment. Infection routes can be cut off by combining the physical isolation of feces with such hygienic practices as washing one’s hands with water after defecation. In other words, a mutually complementary relationship exists between improved sanitation that is necessary to prevent the contamination of underground and surface water with pathogens, and keep the water safe to drink, and water that is vital in such hygienic behaviors as washing one’s hands. This makes it extremely important to improve water supply and sanitation simultaneously, in order to reduce water-related diseases. The improvement of access to basic sanitation included in the MDGs has been nevertheless delayed, for which the whole international community is responsible.

Japan has experience in steadily developing water supply and sewerage systems to build a highly sanitary society, while overcoming floods and droughts during postwar economic growth. On the other hand, Japan is a major water-consuming country that also imports large quantities of water in the form of agricultural products (called “virtual water” or water used for agricultural production) from developing countries. This makes Japan responsible for taking part in solving their water and sanitation problems. JICA will thus promote assistance in the area of water and sanitation from the following perspectives.

Figure 2: Japan as a major importer of indirect (virtual) water Source: Water Footprint Network

(1) Water resources management and the efficient use of water

The appropriate management of water resources is essential in the situation where available water resources are very limited against the growing demand for water. This refers to a need for coordinating water allocation to competitive demands of different sectors while preserving the water environment. Avoiding this coordination would apparently increase the disorderly use of water, resulting in another case of environmental destruction like "the tragedy of the Aral Sea." Effectively using limited water resources to improve sanitary conditions through stable water supply, and reducing poverty by simultaneously maintaining stable food production and promoting industrial development, while protecting the water environment and responding appropriately to water-related disasters, are extremely difficult and complex tasks for developing countries that require mobilization of the knowledge and resources of the international community. In this context, JICA will actively support the developing counties’ efforts to tackle the tasks.

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One of the most important factors in these daunting challenges is to improve the efficiency of water use. This means using limited water as effectively as possible, such as reducing water leaks from water supply networks, promoting water-saving irrigation, and reusing treated wastewater. Since Japan’s experience and technologies can be best applied in many cases to such activities, JICA will provide active assistance making good use of them

(2) Improvement of access to safe water and sanitary facilities

The access to safe drinking water and basic sanitation facilities is indispensable for human existence and included in the MDGs as one of the major development goals of the international community. Moreover, the access to water and sanitation was declared a human right at the U.N. General Assembly held in July 2010.

In 2010, however, 780 million people around the world were still lacking access to safe drinking water and 2.5 billion out of the world population of 6.9 billion did not have access to basic sanitation facilities. As a member of the international community, JICA will be working to accelerate the progress towards improving the situation.

(3) Reduction of water-related disasters

While human life relies on water, water also brings down disasters. Floods and droughts cause widespread loss of people’s lives and properties. An increase in heavy rains and droughts caused by climate change results in increasing water-related disasters, thereby posing a major obstacle to the sustainable socioeconomic development of developing countries. Building disaster-resistant societies is necessary for preventing the precious fruits of socioeconomic development from being lost to natural disasters. JICA will maximize the use of Japan’s experience and technologies in flood control and water use coordination for droughts as accumulated over the past several centuries in its assistance to developing countries.

The regular practice of hydrological and meteorological observations that has become the basis of water resources management as described in paragraph (1) contributes to appropriate measures against water-related disasters.

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II. Focuses of JICA’s cooperation in the area of water and sanitation

[Summary]

Key Issues Issue / Problems Activity Policy

(1) Reliable water resources management based on real observation data

An appropriate understanding of water resources availability is important, because it is a basis of complex but necessary water resource management, including coordination of water allocation among the water using sectors, conservation of water environment, and preparations for water-related disasters.

JICA will support the formulation of reliable water resources management plans reflecting estimated availability of current water resources and its future change based on both terrestrial and satellite observation data, in addition to enhancement of the observation systems that become the basis of water resources management.

(2) Improvement of access to water supply in urban areas

Stable water supply service must be provided to growing city dwellers due to the concentration of population in urban areas. There are huge needs for support in expanding water supply networks through facility development and strengthening the operational capacity of water supply utilities.

JICA will promote the expansion of water supply services by developing facilities through financial cooperation and enhancing the technical, operational and managerial capacities of water supply utilities through technical cooperation simultaneously, while taking into account the mobilization of private-sector funds.

(3) Contribution to reduction of non-revenue water (NRW) and improvement of water/energy use efficiency

A high NRW ratio causes a financial decline of water supply utilities and impedes stable water supply services. It is also a problem in view of wasting water itself and the energy used for water purification and distribution.

JICA will continue to assist the reduction of NRW through the following, in view of a more efficient use of water and energy in addition to improving the financial status of water supply utilities. Renewal of pipelines through financial

cooperation Strengthening of water-leakage

prevention and improvement of tariff collection through technical cooperation

(4) Sustainable rural water supply

Access rate to safe drinking water in rural areas of Sub-Saharan Africa is extremely low.

JICA will ensure sustainable rural water supply combining the construction of water supply facilities through Grant Aid and the strengthening of operation and maintenance systems through technical cooperation, in addition to confirming the probability of securing water sources through the formulation of water supply plans as necessary, primarily in Sub-Saharan Africa.

(5) Promotion of Improved sanitation

Progress towards improved access to basic sanitation facilities is extremely delayed in Sub-Saharan Africa and South Asia.

JICA will promote improved hygiene practices and gradually increase support to construct latrines using social marketing and other methods primarily in Sub-Saharan Africa through technical cooperation.

(6) Integration of structural and non-structural measures and promotion of community-based disaster prevention in water-related disasters

In order to prevent flood damage, relying solely on structural measures is no longer possible as conventional flood prediction is becoming increasingly uncertain due to changes in the amounts and patterns of rainfall caused by climate change.

JICA will take approaches that integrate structural and non-structural measures that include appropriate land use planning, development of flood forecasting and warning systems, and preparation of hazard maps through financial and technical cooperation. In such efforts, support for community-based disaster management that emphasizes mutual protection and self-protection will be enhanced.

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[Main Discussions]

Problems concerning water and sanitation include various issues within the framework of “water resources management” such as the water usage (household water, agricultural water, industrial water, hydropower generation), flood control, preservation of the water environment, and improvement of sanitation and hygiene. The variety of issues involves a large number of stakeholders covering different levels of different sectors.

JICA alone is nowhere near capable of meeting all of such diverse and extensive needs of developing countries. It will, therefore, focus on issues for which it is able to most effectively support solutions based on its broad expertise or make effective use of Japan’s experience and technologies. JICA will also focus on the improvement of sanitation that most requires the assistance of the international community due to its stagnant progress towards the MDG target, and provide solutions in order to fulfill the responsibility of development partners. The issues of high priorities are as follows:

(1) Reliable water resources management based on real observation data

The limited availability of water resources for serving the growing demand for water requires complex “water resources management” that involves balanced water allocation among the different sectors and users (e.g., households, agriculture, industry, energy) on the one hand and preservation of the water environment on the other, along with preparations for water-related disasters.

The availability of water resources in each river basin (indicating seasonal changes) is the basis of any water resources management. The accuracy of water resources availability increases through calculations based on real hydrological and meteorological observation data (rainfall and stream flow, etc.). Unreliable water resources availability leads to inadequate water resources management plans with undefined coordination of water allocation.

Many developing countries lack an adequate system of hydrological and meteorological observation, making it difficult for them to formulate appropriate water resources management plans. For the last 30 years, JICA has assisted in the estimation of water resources availability on the basis of the collection and analysis of hydro-meteorological data, and the formulation of master plans for water resource development and management based on such data.3 These are highly recognized as reliable plans based on real data, and various departments of the recipient governments as well as other development partners have utilized the organized data.

3 Completed projects include the following: 1, -National water resources study, Malaysia (1979-1982), 2, The study on

national water master plan, Kenya (1990-1992), 3, The study on national water resources master plan, Nigeria (1992-1995), 4, The study on national water resources master plan, Zambia (1993-1995), 5, Master plan study on water resources management, the Philippines (1997-1998), 6, The aftercare study on the national water master plan, Kenya (1997-1998), 7, The study on integrated water resources development and management master plan, Macedonia (1998-1999), 8, Master plan study on integrated water resources management, Cote d'Ivoire (2000-2001), 9, The study on nationwide water resources development and management, Vietnam (2001-2003), and 10, The study on Integrated Water Management, Bulgaria (2006-2008).

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[Case] Nigeria’s nationwide water resource management Project for Formulating the Basic Plan for Development

Nigeria has a growing need for the development of water resources in terms of irrigation, supply of drinking water, energy development, and others areas due to the nation's population and economic growth. In addition, droughts in the northern part of the country are becoming increasingly serious. Under such situations, appropriate management and development of scarce water resources, while preventing over exploitation, is becoming an urgent issue. In response to this, the Nigerian government established the Nigeria Integrated Water Resources Management Commission (NIWRMC) in 2008.

JICA launched this project in 2011, aiming to establish a sustainable system of water resources management through capacity development of NIWRMC and revision of the previous master plan developed in 1995,

This project plans to estimate water resources potential based on observation data, predict future water balance between the supply and demand, and then work out plans for nationwide water resources management and development, including adaptation to climate change and human resource development. In addition, basin management plans will be developed targeting two important basins as pilots, with technical assistance being provided for consensus-building among the stakeholders.

Appropriate prediction of future water resources availability becomes an increasingly important factor in water resources management as such resources are expected to be affected by large changes in rainfall patterns associated with global climate change that is likely to aggravate floods and droughts. Amid such a situation, Japan has pioneered the building of water cycle models based on combined satellite and terrestrial observation data. Through leading the Global Earth Observation System of Systems (GEOSS), Japan has made efforts so that as many developing countries as possible can reap the benefits of the models. The models make it possible to estimate water resources availability and predict its future change based on satellite data, even in areas where adequate terrestrial observation data are not available.

JICA will therefore support through technical cooperation the strengthening of observation systems and the formulation of reliable water resources management plans with precise estimation of current and future availability of water resources based on real observation data.

[Terminology] Global Earth Observation System of Systems (GEOSS)

At the G8 Evian Summit held in June 2003, former Prime Minister Junichiro Koizumi proposed to hold a minister-level conference that would formulate an integration plan of Earth observation. In response, the second Earth Observation Summit held in Tokyo in April 2004 adopted the framework document for GEOSS.

GEOSS is a general term for frameworks in which various Earth observation data (satellite, terrestrial, and marine) are integrated and decision aid tools are provided, involving the participation of more than 60 countries. In addition to collecting, sharing, and compiling observation data, GEOSS also seeks to develop various models based on the data to assist in decision-making regarding measures against disasters, water resources management, climate change mitigation and adaptation measures, etc.

Pilot basins North Niger basin (basin of an international river, the Niger) West Littoral basin

Lake Chad Basin

Upper Benue Basin

Niger North Basin

Niger Central Basin

Western Littoral Basin

Lower Benue Basin

Eastern Littoral Basin

Niger South Basin

Prepared by Dr. Toshio Koike, the University of Tokyo

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While JICA has proposed cross-sectoral efforts that extend beyond the authority of the implementing institutions in its past national water resources master plans, the actual coordination of inter-sectoral interests in water usage (e.g., sectors of household water supply, agriculture, industry and energy) is a highly difficult issue. In order for JICA to contribute to this most important and difficult process, it will support establishing a forum where the stakeholders can share estimations of current and future water resources availabilities provided by JICA and discuss how to manage water resources based on uniform grounds. Promoting the participation of relevant organizations and generation of mutual trust among them through such a forum will be the first step towards appropriate water resources management.

While the necessity of such cross-sectoral management of water resources has been argued as Integrated Water Resources Management (IWRM) since the 1990s, recent trends in the international community focus on the Water, Energy, and Food Security Nexus, which marks significant progress from conventional IWRM.4 This is an approach to promote coordination between the water, energy and agricultural sectors that have the closest mutual relationship and all are essential for human security. This approach has also been referred to from the perspective of green growth, and JICA will take it into account in water and sanitation interventions. The “Water and Energy” approach is described in detail in Section (3), “Reduction of non-revenue water: contribution to more efficient use of water and energy.”

[Terminology] Integrated approach to water, energy, and food security

Water, energy, and food are factors indispensable for human security. Since these sectors have the closest mutual relationships, and since water resources are expected to become substantially short against growing water demand in the future, an approach that only concerns one sector most likely to adversely affect the others and consequently impede human security. Bonn 2011 Nexus Conference on Water, Energy, and Food Security organized by the U.N. was held in November 2011 as a contribution to the Rio +20 because the approach is indispensable for achieving green growth. The relationships between the three sectors are described as follows:

(1) Water and energy: Water is used in various power plants and in the process of mining and refining fossil fuels that become sources of energy. Energy is crucial in water and wastewater treatments and water distribution.

(2) Water and food: Food production consumes the most water through irrigation (approximately 70% of available water resources).

(3) Food and energy: The agricultural sector consumes a large amount of energy (approximately 30% of total energy demand) for the use of agricultural machinery, fertilizer production, irrigation, transportation of products, etc.

(2) Improved access to water supply in urban areas

The world population, that exceeded seven billion in 2011 continues to grow, and is expected to reach nine billion by 2050.5 Most of this population growth is taking place in developing countries where, in most cases, leads to increased urban populations. In 2010, urban populations comprised 50.6% of the world population, and are expected to reach 70% by 2050 (with considerable urban concentration, particularly in Asia and Africa).6

4 An example is Bonn 2011 Nexus Conference on Water, Energy, and Food Security, led by the UN that was held in

November 2011. 5 5 US Census Bureau “World Population 1950-2050”

http://www.census.gov/population/international/data/idb/worldpopgraph.php 6 UN Habitat “State of the World’s Cities 2010/2011” (2010)

Source: SEI “Understanding the Nexus”

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How to provide ever-increasing urban residents with stable water supply services is a major challenge faced by water supply utilities in developing countries; therefore, there are huge needs for assistance in expanding water supply networks through the development of physical facilities and improving the operational capacity of water supply utilities.

In response, JICA provides support for the development of water supply facilities in urban areas through ODA loans and Grant Aid. In particular, urban water supply projects through ODA loans in the amount of tens to hundreds of millions dollars have had a major impact, with improved water supply services reaching more than a million people, which can thus be considered an important contribution to the international community successfully achieving the MDG safe drinking water target.

[Case] Major loan-assisted projects for which a loan agreement (L/A) was signed after 2006

Yr of L/A

Country Project Project Overview Loan Amount

Increase in population

receiving water

2006 Bangladesh Karnaphuli Water Supply Project

Construction of water intake, treatment, and distribution facilities in Chittagong

12.2 billion yen

940,000

2006 India Kerala Water Supply Project (II)

Construction of water intake and treatment facilities, conduits and water pipes, drainage basin, drainpipes, etc. and rehabilitation of existing facilities

32.8 billion yen

1,820,000

2008 India Kerala Water Supply Project (III)

12.7 billion yen

2008 India Hogenakkal Water Supply and Fluorosis Mitigation Project

Establishment of water transmission pipes and distribution network, building of distributing reservoir and pumping station

17.1 billion yen

1,730,000

2009 Peru North Lima Metropolitan Area Water Supply and Sewerage Optimization Project (I)

Construction of water pipeline from conduit in the North, rehabilitation of water supply/sewerage pipes and their connections to households

5.6 billion yen

230,000

2009 Thailand 8th Bangkok Water Supply Improvement Project

Water treatment plant expansion, reservoir construction, and pump installation

4.5 billion yen

1,250,000

2009 Turkey Ankara Water Supply Project Construction of water intake facilities on the Gerede River at a point about 100 km northwest of Ankara, and a conveyance tunnel to the existing reservoir

26.8 billion yen

800,000

2009 Peru Lima Marginal Areas Sanitary Improvement Project (II)

Improvement of a water treatment plant and water supply/sewerage pipes in residential areas around the Lima metropolitan area.

9.3 billion yen

930,000

2009 Morocco Provincial cities Water Supply Project

Improvement of water supply facilities in provincial cities in north-central and central Morocco (reinforcement and establishment of water treatment plants, reinforcement of water pipe facilities)

15.5 billion yen

620,000

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Meanwhile, JICA has been providing technical assistance to the developing countries in order to improve the institutional capacity of water supply utilities as well as to develop human resources in the water sector, in collaboration with local governments in Japan in terms of transferring technologies and operational expertise that their water operators possess.

[Case] Cooperation with local governments in Japan

(1) Technical training in Japan

With the cooperation of the Waterworks Bureaus of Sapporo , the Tokyo Metropolitan Government, Yokohama, Nagoya, Osaka, and other major cities, JICA has implemented group training courses concerning urban water supply for engineers of the water utilities in developing countries. In the training courses, the commitment of Japanese water operators to provide safe water to the population together with high standard of technologies and effective organizational management, among others, are transferred to the participants.

Among such training, in the course on the Non-Revenue Water Management conducted by the Waterworks and Sewerage Bureau of Nagoya, participants learn how to plan and implement leak detection and preventive measures against leakage both in the classroom and through practical training in the field. In 2011, the program accepted 14 engineers playing central roles in non-revenue water management at major water supply utilities in ten countries, including Indonesia and Myanmar.

(2) The Project on Human Resources Development for Water Sector in the Middle Region of Vietnam (in

cooperation with the Yokohama City Waterworks Bureau)

The project ran between 2007 and 2009 in cooperation with the Yokohama City Waterworks Bureau to improve the water supply conditions in the urban areas of Thua Thien - Hue province in central Vietnam. Through technical training on appropriate water treatment and water distribution management, the first "safe water” (directly drinkable tap water) was declared in Vietnam in 2009. Since 2010, the project has expanded to human resource development of 18 water supply companies in the central region, disseminating knowledge and technologies acquired by the Hue Water Supply Company to surrounding water companies with the continuous cooperation of the city of Yokohama.

As beneficiaries of combined facility improvement by Japanese financial assistance and

institutional and human resources reinforcement through JICA’s technical cooperation, such water supply utilities as in Bangkok, Thailand, and in Phnom Penh, Cambodia, have demonstrated excellent performance.7

JICA will continue working to improve the access to safe drinking water in urban areas of developing countries. More specifically, JICA will support water utilities in developing countries to improve not only technical capacities but also managerial ones for business planning and management8 through technical cooperation and technical assistance associated with financial cooperation, in addition to expanding water supply networks through ODA loans and Grant Aid, in order to make them capable of sustainably providing high-quality services (e.g., 24-hour water

7 For instance, Metropolitan Waterworks Authority that is responsible for water supply in Bangkok maintained sound

management with 100% water supply coverage (24-hour water supply) and completely independent finance (no subsidies) within its service area in 2004. Meanwhile, Phnom Penh Water Supply Authority increased its water supply coverage rate from 25% to 90% and non-revenue water ratio substantially reduced from 72% to 8% between 1993 and 2006.

8 As population concentrates more in urban areas, ODA alone could not satisfy the need for development of urban water supply facilities, and the use of private-sector funds is essential. Financial improvement of water supply utilities enables the access to various funds for expansion and renewal of facilities.

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supply, controlled water quality). In such case, the capacity of not only water utilities but also of the entire urban water supply sector will be assessed, and support for policy-making or regulatory agencies in charge of water supply policy and establishing the tariff structure will be combined as necessary.

[Case] Cooperation for the Chittagong Water supply and Sewerage Authority, Bangladesh

To improve poor water supply conditions in Chittagong (where water is supplied to only 1.3 million people out of total population of 2.7 million), the largest commercial and industrial city in Bangladesh, water treatment plants and water distribution facilities are being constructed in the Japanese ODA loan based “Karnaphuli Water Supply Project" (to be completed in 2014). The project’s water supply service will be provided to an additional 0.9 million people, thereby substantially improving the water supply coverage rate from 48% to 72%.

Meanwhile, a technical cooperation project for “Advancing Non-Revenue Water Reduction Initiative” is ongoing in order to lower the Chittagong Water Supply and Sewerage Authority (CWASA)’s high non-revenue water ratio of approximately 30%, as well as to improve water supply efficiency and enhance tariff collection. The project will ensure the improved business management of CWASA, and subsequently the appropriate operation and maintenance of facilities constructed in the ODA loan project.

(3) Reduction of non-revenue water – A contribution to improved water and energy use efficiency

The non-revenue water ratios of Japanese water supply utilities are at the world’s lowest levels, represented by 3.7% in Tokyo, 8.3% in Yokohama, and 6.7% in Nagoya in 2010.9 Meanwhile, the non-revenue water ratios of water operators in developing countries are typically dozens in percentage and quite often exceed 50%.

Non-revenue water rates of cities around the world*

Delhi

Jakarta

Kuala Lumpur

Hanoi

London

Bangkok

Chicago

Paris

Tokyo

Tokyo 3% (Rate of leakage)

Source: The years covered are 2003 and 2004. PSIRU “Watertime Reports” for Europe and the U.S. ADB “Databook of Southeast Asian Water Utilities” for Asia.

Figures 3: Non-revenue water ratios of cities around the world (Source: “Steady Implementation of Tokyo Waterworks Management Plan 2010”)

9 Survey of financial status of local public enterprises 2010, Ministry of Internal Affairs and Communications

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Non-revenue water is the amount of water not subject to billing among the total amount input into the water supply system, including physical loss due to leakage from pipes and distributing reservoirs as well as unbilled amount due to illegal connections and a lack or malfunction of water meters. Reducing leakage means meeting the water demand with a smaller amount of water being supplied, and thus contributes considerably to improved water use efficiency when water resources are limited. The prevention of illegal connections and increased tariff collection help improve the financial position of water supply utilities, so as to continue providing stable water supply services. They also contribute to energy efficiency.

As described earlier, the importance of the nexus approach that combines water and energy has been emphasized recently in the international arena.

While water is the source of renewable energy through hydropower generation, the water supply and sewerage industry consumes a large amount of energy. The amount of electric power used by the Tokyo Waterworks Bureau for water treatment and distribution using pumps, for instance, comprises 1% of all power consumed in Tokyo.10 Assuming a further concentration of population in urban areas and the development of water supply networks to meet future demand, energy consumption will further increase due to the longer distances necessary to transport limited water resources from the sources, wider areas to distribute water after treatment, and in some cases the installation of energy intensive desalination plants. Higher energy consumption increases greenhouse gas emissions. Therefore, reducing non-revenue water as much as possible will help to control energy consumption as well as greenhouse gas emissions.

[Case] Jordan “Capacity Development Project for Non-Revenue Water Reduction”

The lack of water resources is very serious in Jordan, where desert covers 75% of the land. Water is not supplied daily, even in the capital of Amman. Meanwhile, the rate of non-revenue water exceeded 50% in 2002. Since the reduction of non-revenue water (particularly leakage) leads to improved water supply and effective use of limited water resources, JICA launched a technical cooperation project in 2005 to support the Water Authority of Jordan (WAJ) in establishing comprehensive measures against non-revenue water. The project includes the transfer of leakage detection and repair technologies through the OJT in Phase 1, and improvement of water distribution network management in Phase 2 that began in 2008. The WAJ relies heavily on pumps to draw up groundwater from valleys and distribute it in undulating land, thereby causing the WAJ to consume a large amount of electricity (15% of power generated nationwide). While the high cost of electricity threatens the financial stability of the WAJ, the JICA project in collaboration with German GIZ contributes also to the optimization of WAJ’s energy usage by reducing non-revenue water and improving pump operation.

As previously noted, the non-revenue water ratios of Japanese water

supply operators are at the world’s lowest levels and said operators are supported by advanced technologies and expertise in non-revenue water reduction, particularly measures against water leaks. More specifically, this includes technologies and experience needed for detecting leaks, a system for immediate repairs after detection, and a system for ongoing pipe inspection and systematic renewal of old pipes. With the cooperation of these Japanese water supply utilities, JICA has supported a number of water operators in developing

10 Environmental plan of Tokyo Waterworks Bureau 2007-2009

http://www.waterworks.metro.tokyo.jp/water/jigyo/mp_s/data/k_kaisai_19_12.pdf

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countries. In view of the efficient use of water and energy, JICA will continue to provide support for reducing non-revenue water through financial assistance (e.g., renewal of water pipes) and technical cooperation (e.g., improved leakage prevention).

(4) Sustainable rural water supply

While the MDGs target regarding access to safe drinking water was achieved in 2010, 780 million people around the world are still without access to safe water. There are large disparities between urban and rural areas, and 650 million out of 780 million people (83%) are residents of rural areas.11 In particular, proportion of the population using improved drinking water source in rural areas of Sub-Saharan Africa continues to be extremely low (at 49% compared to the global rate of 81% for rural areas), and requires the ongoing support of the international community in order to improve the water supply conditions.

JICA has been mainly assisting in the construction of water supply facilities using groundwater as the water source (boreholes with pumps) through Grant Aid in Sub-Saharan Africa. In addition, JICA has been providing assistance to enhance local government’s capabilities for implementing their own construction of water supply facilities, and formulate water supply plans by identifying aquifers and producing hydrogeological maps, especially for areas where groundwater is difficult to locate due to the geological structure.

[Case] Assistance to rural water supply sector in Ethiopia

The rate of access to safe drinking water in Ethiopia in 2010 was 44%, which is significantly lower than the 61% average in Sub-Saharan Africa. JICA has therefore been providing assistance as described below, in order to improve the water supply conditions in rural areas where about 85% of the population resides.

(1) Construction of water supply facilities through Grant Aid

Water supply facilities, mainly boreholes with a hand pump, have been constructed since 2005 in the Amhara Region, Southern Nations, Nationalities, and People's Regional State, Afar Region, Tigray Region, and Oromia Region. In these regions and state, water supply has reached 370,000 people.

(2) Groundwater development and training of water engineers through technical cooperation

The Ethiopia Water Technology Center (EWTEC) Project has been carried out since 1998 in three phases. JICA has assisted in the training of engineers through training courses on groundwater development, borehole construction, rural water supply planning, water supply facility design, and GIS among others at the EWTEC in Addis Ababa.

The Water Sector Capacity Development Project for the Southern Nations, Nationalities, and People's Regional State has also been implemented.

(3) Production of hydrogeological maps for areas where groundwater development is difficult due to geological structure (Technical cooperation).

The Study on Groundwater Resource Assessment in the Rift Valley Lakes Basin was conducted between 2009 and 2011.

In many countries JICA has also been taking the approach of ensuring the sustainability of water supply facilities based on the principle of “operation and maintenance by users” in which the water committee established by the community itself (after the transfer of water supply facilities ownership) collects water fees from users and conducts operation/maintenance work. Such an approach has been highly recognized by recipient countries. In Zambia, JICA’s approach has been adopted in the country's national program.

11 UNICEF/WHO “Progress on Drinking Water and Sanitation: 2012 update” (2012)

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[Case] Zambia “Sustainable Operation and Maintenance Project for Rural Water Supply”

The project has been implemented by JICA since 2005 in two phases. In the project, a comprehensive operation and maintenance system has been established including dissemination of the principle of “operation and maintenance by users,”, building a technical support system of local governments for community water committees, and promoting private-sector participation for spare parts supply chains and pump repair service. The project achieved a hand-pump functional rate of more than 80% in six pilot districts in the central region (compared to the national target of 70%).

As a result, this operation and maintenance mechanism was formally adopted in the operation and maintenance component of the Zambian government’s National Rural Water Supply and Sanitation Program. The mechanism has been disseminated nationwide in the third phase of the project that began in 2011.

JICA will continue to provide assistance for sustainable rural water supply by combining the

construction of water supply facilities through Grant Aid with the enhancement of operation and management of the facilities through technical cooperation, upon confirming the probability and stability of securing water resources through the development of hydrogeological maps and the formulation of water supply plans by technical cooperation as necessary, in Sub-Saharan Africa.

(5) Promotion of improved sanitation

The international community considers water supply and sanitation to be paired issues that must be addressed together. This understanding is derived from the mutually complementary relationship that exists between water supply and sanitation relative to the reduction of diseases.

The mortality rate from preventable infectious diseases is high in developing countries. One of such disease is diarrhea, which kills 1.5 million children under the age of five every year.12 Because diarrhea in many cases is caused by infection with pathogens discharged from feces that enter the human mouth through water, food, and people’s fingers, it is extremely important to build sanitation facilities (latrines or toilets) to isolate feces from the living environment. While this measure can prevent the pathogens from contaminating water sources such as wells and boreholes, infection routes can also be eliminated by combining this measure with hygiene practices such as washing one’s hands after defecation, keeping the area around water supply facilities and the containers used to carry and store water clean, and maintaining proper food hygiene.

In other words, sanitation facilities are essential for keeping water sources safe to drink, while hygiene practices such as washing one’s hands require water, and thus form a mutually complementary relationship. This makes it extremely important to improve the water supply and basic sanitation simultaneously in order to reduce diseases, as evidenced by the MDGs target that sets the improvement of access to both.

In reality, however, the simultaneous activities are far from being implemented. While the MDGs target for safe drinking water was achieved in 2010, attaining the MDGs target for the access to basic sanitation is considered totally unlikely (2.5 billion out of the world population of 6.9 billion lacked access to basic sanitation facilities in 201013), and progress has been seriously delayed, particularly in Sub-Saharan Africa and South Asia.

12 WHO/UNICEF “Diarrhea: Why children are still dying and what can be done” (2009) 13 UNICEF/WHO “Progress on Drinking Water and Sanitation: 2012 update” (2012)

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The reasons for the serious delay in efforts to promote improved sanitation include some of the factors listed below, and are quite unique to the sanitation sector.

1) Many developing countries do not have a government department responsible for sanitation, and that responsibility often becomes unclear when partly covered by the departments responsible for water, public health, education, and the environment.

2) The necessity of improved sanitation is more difficult to be understood than that of water, public health, and education, and publically discussing human waste is a taboo in many cultures, generally resulting in less political interest.

3) While water supply is considered a part of public services, the improvement of sanitation facilities is considered a responsibility of individuals, thereby making it difficult to be included in the development agenda for both donors and recipient countries.

In response to this situation, the need to accelerate the efforts of the international community has been emphasized in recent years. In particular, the Japanese government has been leading the international opinion and played a leading role in the U.N. resolutions for “the International Year of Sanitation 2008” and “Sustainable Sanitation: the Five-year Drive to 2015” of December 2010. Considering the trends in the international community and roles played by the Japanese government, JICA will also strengthen its efforts for promoting improved sanitation.

In the past, JICA has implemented technical cooperation projects that combined rural water supply and sanitation improvement in Senegal, Madagascar, Burkina Faso, and Mozambique. These projects provided educational activities to improve hygiene practices at schools and in surrounding communities, in addition to enhancing the capacity of water committees for operating and maintaining water supply facilities. In view of the contribution to MDGs (improved access to basic sanitation), however, JICA should spread out the outcomes of the projects.

[Case] Madagascar “Improvement of Rural Water Supply Management and Hygiene Practices in Atsimo Andrefana Region”

JICA started the project in the southwestern part of Madagascar in 2008. In addition to the improvement of water supply management capacities, the project has supported the promotion of hygiene education. More specifically, the project emphasizes the training of regional administrators, health agents, and school teachers to provide hygiene education, in order to disseminate good hygiene practices from such personnel to children and villagers, and thus encourage behavioral changes. As a result, the behavioral changes have been confirmed in some villages.

JICA will continue to promote improved hygiene practices particularly in Sub-Saharan Africa, while gradually expanding technical cooperation to promote the construction of improved latrines or toilets through social marketing and other approaches. It should be noted that the promotion of the sanitation facilities lacks sustainability unless improvement in hygiene practices is accompanied. The first technical cooperation project with this perspective has begun in Senegal.

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[Case] Senegal “Project for Sanitation and Hygiene Improvement in Rural Areas of the Tambacounda, Kedougou, and Matam Regions”

This project began in March 2012. In the project, a regional platform where stakeholders such as local administration bodies, development partners and NGOs gather for coordinated activities for improved sanitation will be established in three regions having high rates of poverty in the eastern part of Senegal. Educational activities in pilot villages intended to end open defecation are being conducted in the project, to be followed by the construction of improved latrines in villages where open defecation has been eradicated. The achievements of the project will be disseminated to other villages from the pilots through the platform, in order to improve access to basic sanitation facilities throughout the three regions.

(6) Integration of structural and non-structural measures, and promotion of community-based disaster prevention in water-related disasters

Flood control as a principal action to reduce water-related disasters has conventionally been envisaged protecting human lives and properties, primarily through structural measures (hardware) such as the construction of dykes along rivers and coastlines. Changes in the amounts and patterns of rainfall caused by climate change, however, make conventional flood probabilities uncertain, and endlessly raising the dykes to deal with assumed increases in the scale and frequency of floods is no longer possible.

In particular, developing countries which have difficulty of allocating a large amount of budget to disaster prevention have no alternative but to take an approach of integrating structural and non-structural (soft) measures, with the hardware used for only strategically protected areas and facilities of crucial importance, while in other areas prioritizing the protection of human lives by taking soft measures under allowed flooding. Specific examples of non-structural measures include regulation and guidance for building a disaster-resilient society through land use planning to reduce the amount of water that flows into rivers when it rains (e.g., water retention by preserving forests and farmland in the basin, expansion and maintenance of water storage function with retarding basins, enhancement of soil infiltration, retention of rain water in urban areas) and restrictions on living in high-risk areas, the development of flood forecasting and warning systems, and the production and distribution of hazard maps among residents. JICA has been actively incorporating non-structural measures into the conventional hardware measures in ODA loan projects for flood control and river improvement.

It is also important to develop wider public understanding that “people must protect their own lives by themselves.” In the conventional assistance in flood control, most aid projects have focused on strengthening the role of government in protecting people against disasters. JICA has also been emphasizing the concepts of “mutual protection” and “self-protection” through the implementation of projects to enhance the disaster prevention capacities of local communities in Kenya and Vietnam.

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[Case]“The Study on Integrated Flood Management for Nyando River Basin in the Republic of Kenya”

Located in the western part of Kenya, the basin of Nyando River that flows into Lake Victoria suffers from floods almost every year. In order to reduce such flood damage, JICA conducted a study between 2006 and 2009. The study developed a comprehensive flood control plan that included measures for preventing, responding to, and reducing flood damage, and introduced community-based disaster prevention measures that entail the establishment of a community flood control committees, construction and maintenance of such facilities as embankments and evacuation roads with the participation of communities, evacuation drills, and disaster prevention education.

Based on the positive results of the project, the Kenyan government recognized the importance and effectiveness of community-led flood control, and then launched a nationwide rolling-out of the flood control model to promote community-based disaster prevention. In order to support this movement, JICA initiated a project on “Capacity Development for Effective Flood Management in Flood Prone Areas” in 2011.

JICA will actively promote these approaches through financial and technical cooperation. Especially for community-based disaster prevention, JICA intends to make maximum use of the long experience of local communities in Japan that have organized flood prevention bodies to monitor flood levels and mobilize residents for preventive work against a breach of embankments.

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III. JICA’s approaches to water and sanitation challenges This section describes the methodology and key points (approaches) for dealing with the challenges of the water and sanitation sectors explained in Section II. In other words, the following approaches are taken to ensure sustainability and effectiveness of projects, and create synergy in line with Japan’s ODA policies.

(1) Capacity development in view of the entire sector14

JICA can provide assistance in various scopes by combining technical cooperation, ODA loan and Grant Aid. In the urban water supply sector, in particular, there are diverse possible ways of intervention, from facility development through ODA loans worth tens of millions of dollars and enhancement of the technical and financial capabilities of water supply utilities through technical assistance associated with the loans, to the development of laws and regulations related to water supply through the dispatch of expert advisors. Consequently, the capacity of the entire sector must first be understood in order to identify the areas requiring improvement or strengthening. More specifically, the capacity includes technical and management capabilities of individual water supply utilities, and the sector’s enabling environment, such as the legal system, technical standards, tariff policy, and financing mechanism. JICA applies a method of capacity assessment to project planning for this purpose. Through this method, the capacities of urban water supply sectors in different countries and cities are assessed based on the same indicators and are used for project planning, making them easy to compare and reference, thus facilitating the application of good practices in one city to other cities.

[Case] Handbook for capacity assessment of urban water supply sectors and water supply utilities in developing countries

Produced in 2010, the Handbook presents five practical tools for understanding the capacity and performance of the entire water supply sector. Each tool consists of a series of questionnaires and indicators.

Tool 1: List of operational indicators of a water supply utility

Tool 2: Checklist for the water supply sector (to understand the “enabling environment”)

Tool 3: Form to fill in general information about the water supply utility

Tool 4: Basic checklist for the water supply utility

Tool 5: Detailed checklist for the water supply utility

These tools are combined according to the purpose of assessment.

To understand the entire water supply sector: Tool 1 and Tool 2

To learn an overview of the target water supply utility: Tool 3 and Tool 4

To learn the details of the target water supply utility: Tool 1 and Tool 5

The development of water supply facilities through financial assistance and the improvement of operation/management capacities through technical cooperation are also combined for the rural water supply sector. In such case, it is also essential to understand the capacity of the entire sector, including applicable laws and regulations, technical standards, the funding mechanism at the central government level, technical support system at the local government level, possibility of private-sector participation, and the management capacity of communities.

14 Capacity Development Handbook (JICA, March 2004) defines that Capacity Development as “the process in which the

capacity of a developing county to cope with issues improves as a whole, including multiple levels of individuals, organizations, communities, etc”.

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Concerning water resources management, the capacities pertaining to the related sectors must be understood, as it involves various sectors such as agriculture in addition to the water and sanitation sectors.

(2) Cooperation with the private sector

Population growth in urban areas causes a continuous increase in demand for water supply and wastewater treatment in developing countries. Since vast amount of funds are required for the development of these facilities, many developing countries seek the investment of the private-sector in the form of public-private partnership (PPP), in addition to their own funds and those of development partners such as ODA. Moreover, many water utilities utilize to some extent the private sector’s technologies and expertise for efficient business operation and facility management.

When carrying out facility development through financial assistance, JICA is also required to examine (in a stage before M/P or F/S) the possibility of mobilizing private sector funds for part of the facility development, and utilize technologies and expertise of the private sector for subsequent operation and management of the facilities. In such case, considering that the Japanese government is supporting the entry of Japanese private companies in the global water business market under its new growth strategy, JICA seeks collaboration with Japanese companies by conducting feasibility studies on water infrastructure development by PPP, after examining the possibility of entering a local market based on a company’s technological advantages.

[Case] Water Supply Improvement Plan for Ho Chi Minh City, Vietnam

The project started in 2012 as technical cooperation for a development study. The study will propose a water distribution system that leads to efficient water supply through improved water distribution management, taking into account the application of advanced technologies and experience of Japanese private companies and water operators under local governments, in addition to the development of new water sources, aiming to expand the water supply network in Ho Chi Minh City—the largest city in Vietnam (where the current water supply service covers only 76% of the total population).

To meet the huge demand for the expansion and renewal of facilities for water supply and wastewater treatment in the city, however, the mobilization of local private-sector funds such as local commercial banks will be considered in addition to partnerships with Japanese private companies.

“The Philippines Water Revolving Fund” which finances the investment fund for local water supply is taken as a representative example.

[Case] The Philippines Water Revolving Fund

A loan of 24.8 billion yen (around 200 million dollars) was provided in 2008 as funding for the “Environment development project.” This loan is intended to provide domestic private-sector companies and local governments with medium- and long-term funds necessary to develop water supply and sewerage facilities through the Development Bank of the Philippines. As public finance alone including ODA is insufficient to meet the vast financial demand, a joint financing scheme was developed to mobilize private-sector funds using public funds as leverage. (The USAID and Local Government Unit Guarantee Corporation (LGUGC) of the Philippines jointly provide guarantees for private financial institutions that participate in joint financing.) Moreover, the Philippines Water Revolving Fund was established to reserve repayments from borrowers in order to provide loans for new facility development as a mechanism of continuously supplying money.

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Even if the supply side of funding has been established, financing will not be granted to water

utilities without improved business management. For this reason, JICA will be actively supporting the water supply utilities’ capacity development with technical cooperation and technical assistance associated with financial assistance.

JICA will also seek cooperation with the corporate social responsibility (CSR) activities and BOP (Base of the Pyramid) business of Japanese private companies, particularly for the water supply and wastewater treatment in impoverished areas around cities and in rural areas. Any Japanese company showing interest will be provided with the necessary information about the feasibility study on BOP business conducted by JICA.

(3) Participation in sector programs and coordination with other development partners

While many development partners support developing countries to meet the huge demands in improving water supply and sanitation, coordination between development partners under the policy and ownership of the developing country’s government is of crucial importance in effectively generating and maximizing the outcomes of the supports. More specifically, regarding the sectors of urban water supply, rural water supply, sanitation and water resources, JICA will actively comply with the policy of the partner country’s government or participate in sector programs in coordination with other development partners. The role of each development partner is expected to be defined, so as to maximize the technical or knowledgeable advantages of the respective partners.

[Case] Rural Water Supply and Sanitation Program in Zambia

In November 2007, the Zambian government established the National Rural Water Supply and Sanitation Programme (NRWSSP), and set the goal of raising the rates of access to safe drinking water and sanitation facilities to 75% and 60%, respectively.

In response, donors such as JICA, UNICEF, Germany, Denmark, the African Development Bank, and Ireland have aligned the program under a comprehensive coordination and division of roles, in which each donor is assigned to each component, including water supply, sanitation, capacity development, and operation and maintenance, in addition to the Area Based Programme that assigns each donor to a designated area.

Meanwhile, JICA will also actively seek coordination with other development partners at the individual project level, in order to ensure sustainability and disseminate the impacts of the project. One possible way is to collaborate with a development partner that supports the policy level, in order to ensure the sustainability of field level activities by appropriate policy settings. Another possibility is collaboration at the field level by setting the target areas next to one another, in order to ensure the geographical expansion of impacts, and by sharing the responsibilities for initial pilot activities and subsequent rolling-out activities among the development partners.

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[Case] Cooperation with German Society for International Cooperation (GIZ)

To promote coordination in the water and sanitation sectors in Sub-Saharan Africa, JICA and GIZ signed a Memorandum of Understanding (MOU) in February 2011. Based on this MOU, collaborative activities have been conducted in Zambia (where the rural water supply operation and maintenance mechanism developed by JICA is being promoted in the area covered by GIZ), in Uganda (where a sanitation pilot project is being jointly implemented), and in Tanzania (where groundwater monitoring is being jointly implemented). The progress is to be reviewed every two years, and a joint review meeting is expected to be held in September 2012.

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[Reference] Water and sanitation sector investment between 2008 and 2010 by sub-sector, region, and scheme

Upper row: the number of projects / lower row: amount of funds (million dollars)

Field Scheme Asia Americas Africa Middle European Oceania Other Total

Urban water supply

Technical cooperation

83 41 47 45 14 16 246

42.8 13.9 17.6 7.8 0.8 1.4 84.3

Grant aid 10 6 8 4 2 0 30

81.9 45.0 80.7 46.4 7.2 0.0 261.2

ODA loan 7 1 0 5 0 0 13

1050.1 55.5 0.0 1608.2 0.0 0.0 2713.8

Total 100 48 55 54 16 16 289

1174.7 114.4 98.3 1662.5 8.0 1.4 3059.2

Rural water supply

Technical cooperation

18 8 42 4 1 2 75

7.5 8.3 33.2 0.1 0.0 0.1 49.2

Grant aid 3 1 23 1 0 0 28

9.7 8.6 163.9 3.4 0.0 0.0 185.6

ODA loan 0 0 0 0 0 0 0

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total 21 9 65 5 1 2 103

17.2 17.0 197.1 3.5 0.0 0.1 234.8

Water resources

management

Technical cooperation

37 17 24 54 5 8 145

16.1 5.2 8.6 12.0 0.2 0.8 43.0

Grant aid 1 1 0 1 0 0 3

0.1 2.9 0.0 10.0 0.0 0.0 13.0

ODA loan 2 0 0 0 0 0 2

144.5 0.0 0.0 0.0 0.0 0.0 144.5

Total 40 18 24 55 5 8 150

160.7 8.1 8.6 22.0 0.2 0.8 200.5

Flood control

Technical cooperation

57 20 15 16 5 9 122

22.5 5.9 2.7 2.2 0.9 0.8 35.0

Grant aid 2 0 1 1 0 0 4

40.8 0.0 4.8 5.9 0.0 0.0 51.5

ODA loan 1 0 0 0 0 0 1

74.9 0.0 0.0 0.0 0.0 0.0 74.9

Total 60 20 16 17 5 9 127

138.2 5.9 7.5 8.0 0.9 0.8 161.4

Sanitation

Technical cooperation

6 6 13 3 1 1 30

0.5 2.3 13.2 0.1 0.0 0.0 16.1

Grant aid 0 0 2 0 0 0 2

0.0 0.0 17.6 0.0 0.0 0.0 17.6

ODA loan 0 0 0 0 0 0 0

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total 6 6 15 3 1 1 32

0.5 2.3 30.8 0.1 0.0 0.0 33.7

Total

Technical cooperation

201 92 141 122 26 36 618

89.5 35.6 75.3 22.2 1.9 3.2 227.7

Grant aid 16 8 34 7 2 0 67

132.4 56.5 267.0 65.7 7.2 0.0 528.7

ODA loan 10 1 0 5 0 0 16

1269.4 55.5 0.0 1608.2 0.0 0.0 2933.2

Total 227 101 175 134 28 36 701

1491.3 147.7 342.3 1696.1 9.1 3.2 3689.6

Japan International Cooperation Agency

Nibancho Center Building 5-25, Niban-cho, Chiyoda-ku, Tokyo 102-8012, Japan

URL: http://www.jica.go.jp