Document of The World Bank FOR OFFICIAL USE ONLY Report No: 75924-ZM INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 33.1 MILLION (US$50 MILLION EQUIVALENT) TO THE REPUBLIC OF ZAMBIA FOR A WATER RESOURCES DEVELOPMENT PROJECT April 01, 2013 Environment, Natural Resources, Water and Disaster Risk Management Unit (AFTN2) Sustainable Development Department Country Department, AFCS3 Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 75924-ZM
INTERNATIONAL DEVELOPMENT ASSOCIATION
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT IN THE AMOUNT OF SDR 33.1 MILLION
(US$50 MILLION EQUIVALENT)
TO THE
REPUBLIC OF ZAMBIA
FOR A
WATER RESOURCES DEVELOPMENT PROJECT
April 01, 2013
Environment, Natural Resources, Water and Disaster Risk Management Unit (AFTN2) Sustainable Development Department Country Department, AFCS3 Africa Region
This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information.
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CURRENCY EQUIVALENTS (Exchange Rate Effective February 28, 2013)
AfDB African Development Bank MW Megawatt AIDS Acquired Immune-Deficiency Syndrome NDP National Development Plan AWF African Water Facility NGO Non-Governmental Organization BP Bank Policy NMGDP National Managed Groundwater Development Program CAS Country Assistance Strategy NWMIS National Water Management Information System CPS Country Partnership Strategy O&M Operation and Maintenance CPs Cooperating Partners OD Operational Directive CWRAS Country Water Resources Assistance Strategy OP Operational Policy DA Designated Account ORAF Operational Risk Assessment Framework DANIDA Danish International Development Agency PCN Project Concept Notes DDMP Dam Development Master Plan PDCC Provincial Development Coordinating Committee DMMU Disaster Management and Mitigation Unit PDO Project Development Objective DoA Department of Agriculture PE Procuring Entities DPI Department of Planning and Informatics PIM Project Implementation Manual DWA Department of Water Affairs PIP Project Implementation Plan DWR Department of Water Resources PMP Pest Management Plan ESA European Space Agency PoE Panel of Expert ESIA Environmental and Social Impact Assessment PPA Project Preparation Advance ESMF Environmental and Social Management Framework PPF Project Preparation Facility ESMP Environmental and Social Management Plan PRAMS Procurement Risk Management System EU European Union RAP Resettlement Action Plan FAO Food and Agricultural Organization RCP Resettlement and Compensation Policy FFEWS Flood Forecasting and Early Warning System RfP Request for Proposal FY Financial Year RPF Resettlement Policy Framework GDP Gross Domestic Product SADC Southern African Development Community GEF Global Environmental Facility SDR Special Drawing Rights GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit SoE Statement of Expenses GRZ Government of the Republic of Zambia ToR Terms of Reference HIPC Heavily Indebted Poor Country UN United Nations HYCOS Hydrological Observation System UNDP United Nations Development Programme IDA International Development Association WARMA National Water Resources Management Authority IFRs Interim Financial Reports WMO World Meteorological Organisation ITT Itezhi-Tezhi WRAP Water Resources Action Program IWRM Integrated Water Resources Management WRSS Water Resources Sector Strategy IWRM & WE IP IWRM & Water Efficiency Implementation Plan WRWDP Water Resources Development Project JTOC Joint Technical Operating Committee WUA Water User Association KfW Kreditanstalt für Wiederaufbau/German Development Bank ZACPRO Zambezi River Action Plan KGL Kafue Gorge Lower ZAMCOM Zambezi Watercourse Commission KGU Kafue Gorge Upper ZAMDO Zambezi Management and Dam Operators forum M&E Monitoring and Evaluation ZAMSIF Zambia Social Investment Fund MDG Millennium Development Goals ZAMWIS Zambezi River Basin Water Information System MDRI Multilateral Debt Relief Initiative ZIWRMS Zambezi Integrated Water Resources Management Strategy MMEWD Ministry of Mines, Energy & Water Development ZMD Zambia Meteorological Department MoF Ministry of Financing ZPPA Zambia Public Procurement Authority MoU Memorandum of Understanding ZRA Zambezi River Authority
Regional Vice President: Makhtar Diop
Country Director: Kundhavi Kadiresan Sector Director: Sector Manager:
Jamal Saghir Jonathan Kamkwalala
Task Team Leader: Marcus Wishart
REPUBLIC OF ZAMBIA
WATER RESOURCE DEVELOPMENT PROJECT
TableofContents I. Strategic Context ..................................................................................................................... 1
A. Country Context ............................................................................................................... 1
B. Sectoral and Institutional Context .................................................................................... 2
C. Higher Level Objectives to which the Project Contributes .............................................. 5
II. Project Development Objectives............................................................................................. 6
III. Project Description ............................................................................................................... 7
A. Project components ...................................................................................................... 7
B. Project financing .......................................................................................................... 8
C. Lessons Learned and Reflected in the Project Design ................................................. 8
IV. Implementation .................................................................................................................... 9
A. Institutional and Implementation Arrangements .......................................................... 9
B. Results Monitoring and Evaluation ............................................................................ 10
C. Sustainability .............................................................................................................. 11
V. Key Risks .............................................................................................................................. 11
VI. Appraisal Summary ........................................................................................................... 12
A. Economic and Financial Analysis .............................................................................. 12
B. Technical .................................................................................................................... 14
C. Financial Management ............................................................................................... 16
D. Procurement ............................................................................................................... 16
E. Social .......................................................................................................................... 16
F. Environment ............................................................................................................... 17
Annex 1: Results Framework and Monitoring.............................................................................. 20
[ ] Loan [ ] Grant [ ] Term: The proposed credit will be on standard IDA terms with forty year maturity including a ten year grace period.[ X ] Credit [ ] Guarantee
For Loans/Credits/Others
Total Project Cost (US$M): 50.00
Total Bank Financing (US$M): 50.00 .
Financing Source Amount(US$M)
BORROWER/RECIPIENT 0.00
International Development Association (IDA) 50.00
Total 50.00.
Expected Disbursements (in USD Million)
v
Fiscal Year FY14 FY15 FY16 FY17 FY18 FY19
Annual 2.00 8.00 10.00 14.00 14.00 2.00
Cumulative 2.00 10.00 20.00 34.00 48.00 50.00 .
Project Development Objective(s)
The Project Development Objective is to support the implementation of an integrated framework for development and management of water resources in Zambia. .
Components
Component Name Cost (USD Millions)
Component A: Water Resources Management: The objective of this component is to enhance capacity at the national and regional level to address the challenges of water resources management in Zambia.
8.00
Component B: Water Resources Development: The objective of this component is to address the infrastructure deficit.
30.00
Component C: Institutional Support: The objective of this component is to strengthen the institutional capacity for water resources management and development.
12.00
.
Compliance
Policy
Does the project depart from the CAS in content or in other significant respects?
Yes [ ] No [ X ]
.
Does the project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]
Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] .
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
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Projects in Disputed Areas OP/BP 7.60 X .
Legal Covenants
Name Recurrent Due Date Frequency
Project Implementation Article 5.01 No Effectiveness Once off
Description of Covenant: The Recipient has designated a Project Coordinator, appointed a Project Steering Committee and a Project Manager, and established a Project Management Team in accordance with the provisions of Section I.A of Schedule 2 of the Financing Agreement.
Name Recurrent Due Date Frequency
Project Implementation Manual Article 5.01 No Effectiveness Once off
Description of Covenant: The Recipient has prepared and adopted a Project Implementation Manual in accordance with the provisions of Section I.B of Schedule 2 of the Financing Agreement. .
Conditions
Name Type
Project Steering Committee Ongoing
Description of Condition
The Recipient shall appoint and thereafter maintain throughout project implementation, a Project Steering Committee with terms of reference satisfactory to the Association and with adequate resources to carry out its functions.
Name Type
Project Coordinator Ongoing
Description of Condition
The Recipient shall appoint by not later than effectiveness and thereafter maintain throughout project implementation, a Project Coordinator (PC) with qualifications and skills satisfactory to the Association with the responsibility for overall coordination and management of the Project.
Name Type
Project Management Team Ongoing
Description of Condition
The Recipient shall establish not later than effectiveness and thereafter maintain the Project Management Team (PMT) comprising the Project Coordinator, three Component Task Leaders, administrative and clerical staff and such other technical specialists as may be agreed with the Association, all with qualifications and experience satisfactory to the Association
Louise Croneborg Water Resource Mgmt Specialist Information Mgmt Systems AFTN2
Lucson Pierre-Charles Team Assistant Team Assistant AFTWR
Luis Schwarz Senior Finance Officer Senior Finance Officer CTRLA
Marcus Wishart Sr Water Resources Spec. Team Lead AFTN2
Mekuria Tafesse Water Resources Consultant International Waters AFTN2
Neta Walima Team Assistant Team Assistant AFMZM
Oeyvind Lier Sr Hydropower Specialist Hydropower ETWWA
Pieter Waalewijn Irrigation Specialist Irrigation and Small Dams AFTN2
Rikard Liden Sr Hydropower Specialist Hydropower ETWWA
Rimma Dankova Water Resource Economist Water Resources Economics AFTWR
Robert Robelus Environmental Consultant Environmental safeguards AFTN2
Satoru Ueda Dam Specialist Dam Safety AFTWR
Sipiwe Chihame Program Assistant Program Assistant AFCS3
Stephen Mukaindo Counsel Counsel LEGAM
Thandi Gxaba Sr Environmental Specialist Environmental Safeguards AFTN2
Vahid Alavian Water and Energy Advisor Hydropower Advisor AFTEG
Wedex Ilunga Sr Procurement Specialist Procurement AFTPE
Wolfgang Chabad Sr Finance Officer Finance Officer CTRLA
Non Bank Staff
Name Title Phone City
Benjamin Koetz European Space Agency TIGER-NET ESA-ESRIN
Rogier van der Velde Geo-Information Science and Earth Observation University of Twente
Zoltán Vekerdy Geo-Information Science and Earth Observation University of Twente
Jens Claussen Public Expenditure Tracking Consultant
Jens Sjørslev Public Expenditure Specialist Consultant
Musole Musumali Operations Analyst Consultant
Tim Stephens Small Dams Specialist FAO
John Moehl Aquaculture Specialist FAO
viii
Albert Tuinhoff Groundwater Specialist Consultant .
Locations
Country First Administrative Division
Location Planned Actual Comments
Zambia National .
Institutional Data
Sector Board
Water .
Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector Sector % Adaptation Co-benefits %
Mitigation Co-benefits %
Water, sanitation and flood protection
General water, sanitation and flood protection sector
100
Total 100
I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. .
Themes
Theme (Maximum 5 and total % must equal 100)
Major theme Theme %
Environment and natural resources management
Water resource management 67
Rural development Other rural development 33
Total 100
1
I. Strategic Context
A. Country Context
1. Zambia has enjoyed a decade of rapid economic expansion following a protracted period of low growth and declining per capita income. Despite recent gains serious challenges remain in ensuring broad based and sustainable economic growth. Moderate growth rates observed between 1964 and 1972 were largely fueled by rising copper prices rather than broad-based gains in productivity, and the economy stagnated in the 1980s and 1990s due to a highly inefficient degree of state control over the economy, particularly in the mining sector. A relatively stable external environment and improved macroeconomic policies, combined with a major debt reduction effort undertaken as part of the Heavily Indebted Poor Country (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) amounting to approximately US$6 billion, has seen sustained growth and afforded the country much-needed latitude to increase spending on priority development objectives. This has been complemented by a combination of prudent macroeconomic management, market liberalization and privatization efforts. Investments in the copper industry and related infrastructure have helped to spur economic growth to about six percent year on year since 2000. Growth in economic output is expected to average seven percent between 2013 and 2014, making Zambia one of the fastest growing Sub-Saharan countries.1
2. Sustained growth and continued political stability have, however, translated into only modest improvements in livelihoods with a limited impact on poverty reduction. Household consumption of the poorest quintile grew by less than one percent between 2006 and 20102, more than 60 percent of Zambians still live below the poverty line, and income inequality has increased in the last several years3. Growth has been urban-centered and rural poverty remains at 74 percent with a majority of the rural population dependent on subsistence agriculture4. In contrast, in the same period, urban areas have benefited from the high rate of economic growth, and as a result urban poverty fell to 35 percent in 2012, down from 41 percent in 1996. The sources and benefits of economic growth have been narrowly focused on the capital-intensive industrial (mining and construction) and services sectors while the labor-intensive rural economy, conversely, has only experienced substantial growth in the last two years, thanks to good weather conditions rather than any structural increase in agricultural productivity. The concentration of growth and relative enrichment of the urban population has accentuated the income divide between the urban and rural economies. The agricultural sector employs over 70 percent of the population but contributes only 14 percent to GDP. The urban-rural income divide is large and growing, with the Gini coefficient increasing from 0.47 a decade ago to 0.52 in 2012. Zambia’s rank in the UN Human Development Index for 2011 is 164 out of 187 countries.
3. Zambia needs to successfully diversify growth and consider issues of distributive justice and support to pro-poor sectors if the country is to make significant progress in achieving its poverty reduction goals. These aspirations are articulated in the country’s ‘Vision 2030’with the national development goal of reducing poverty and reaching middle income country status by 2030. The Government’s strategy for inclusive growth and development is outlined in the National 1 Zambia Economic Brief No. 74381. 2012. The World Bank – PREM. 2 Ibid 3 Living Conditions Monitoring Survey report 2006 & 2012, Central Statistics Office and Country Partnership Strategy for the Republic of Zambia for the Period FY13-FY16 (2013). The World Bank Group. 4 Ibid
2
Development Plan. The Sixth National Development Plan (SNDP) for the period of 2011–2015 is based on “Sustained economic growth and poverty reduction”. The strategic focus of the SNDP is “infrastructure and human development” with the objective of “accelerating infrastructure development, economic growth and diversification, to promote rural investment and accelerate poverty reduction and to enhance human development”. The SNDP focuses on policies, strategies and programs that will contribute significantly to addressing the challenges of realizing broad-based pro-poor growth, employment creation and human development. While recognizing the importance of balanced growth in all sectors of the economy, the SNDP priority growth sectors are Agriculture, Livestock and Fisheries, Mining, Tourism, Manufacturing, Commerce and Trade5. Investment in rural areas is considered as an important means for increasing employment and reducing poverty within the plan. The plan therefore also promotes increased rural investment in infrastructure such as roads, rail, information and communication technology, energy, water and sanitation, education and health. It is further guided by principles of improved accountability, decentralized process and efficient resource allocation and mobilization.
B. Sectoral and Institutional Context
4. One of the challenges facing Zambia’s economy is the vulnerability and increasing constraints derived from a number of water-related factors. Frequent droughts and floods, hydrological variability and seasonal water shortages, compounded by growing water demand from the major sectors of the economy and limited water infrastructure impose a serious constraint on the medium and long-term growth prospects. Mitigating the negative impacts of floods and droughts through development of a sound infrastructure platform to secure the productive use of water resources is central to continued economic development and safeguarding sustainable livelihoods. The lack of infrastructure in the water sector currently exposes the economy to significant risks that have the potential to undermine the recent gains. Recurrent floods and droughts over the past three decades are estimated to have cost Zambia US$13.8 billion, a 0.4 percent annual loss of economic growth that disproportionately impacts the poor6. Climate change is expected to increase the intensity of these events and further impact on the national economy. In the absence of investments in adaptation measures and an appropriate infrastructure platform, rainfall variability alone could keep an additional 300,000 more people below the poverty line and cost Zambia US$4.3 billion in lost GDP over the next decade, reducing annual GDP growth by 0.9 percentage points and accentuating rural poverty.
5. Zambia has abundant arable land and water resources which, along with the generally favorable climatic and ecological conditions, provide great potential for the production of a variety of crops, livestock development and industrial growth. However, agricultural growth is reduced by one percentage point each year as a result of the lack of storage and rainfall variability. Whilst mining remains the mainstay of the economy and the primary source of national income as well as foreign exchange earnings, there is a unique opportunity for Zambia to develop its water resources as the necessary platform for sustainable growth and poverty reduction. Total renewable water resources in Zambia are estimated to be 105 km3 per year, more than 80 percent of which are produced internally and all of which contribute to internationally shared basins. The per capita water availability in Zambia is estimated at about
5 SNDP 2011-2015 xiii 6 Country Water Resources Assistance Strategy: Managing Water for Sustainable Growth and Poverty Reduction
3
8,700 m3 per year, significantly higher than the average for Sub-Saharan Africa (7,000 m3 per person per year) and globally (8,210 m3 per person per year). In contrast, the level of per capita water withdrawal in Zambia is three times lower than the developing countries average and lower than the average per capita water withdrawal in Sub-Saharan Africa. Of the total water withdrawals of 1.7 km3 per year, agricultural water use accounts for 77 percent, domestic water use accounts for 16 percent while industry accounts for seven percent. Hydropower potential remains largely undeveloped, at 27 percent of the estimated 6000 MW. Of the arable land, less than 5 percent is under irrigation. Although abundant, access to water is limited by lack of human, institutional, and financial capital and there is a need to strengthen the systems to support development of a pipeline of sustainable infrastructure investments.
6. The apparent abundance of water at the aggregate national scale belies the fact that some basins are already under increasing pressure, with the potential to undermine growth and development. The Kafue River catchment is home to 40 percent of the national population, a majority of the mining investments and economic activity, and roughly 80 percent of the country’s total area under irrigation. However, annual withdrawals of water for irrigation in the Kafue River are reaching the limits that can be sustained under the present storage capacity. The river also accounts for more than half of the country’s hydropower production. This is expected to increase to over 70 percent with the projected investment of more than US$3 billion in the development of the Itezhi-Tezhi and Kafue Gorge Lower hydropower plants. Although Government has retained a shareholding in the operating entities for all three hydropower plants through the national utility, the operation of this cascade, combined with the impacts of climate change, increase the need for a strong mechanism for ensuring the optimal allocation of water. The increasing competition in the Kafue River is accentuated by the fact that more than 80 percent of the current domestic water supplies are derived from the Kafue River, with plans to double the capacity of the supply system for Lusaka from the Kafue River, and the presence of important wetland habitats recognized under the Convention on Wetlands (RAMSAR). Nature based tourism is estimated to contribute between six and ten percent to GDP. Given these contributions and the important role in providing sustainable rural livelihoods, there is a need to ensure adequate environmental flows for important habitats, such as the Kafue Flats. In the absence of increased storage capacity further irrigation expansion could lead to the sub-optimal allocation of water, substantial reductions in power production and economic losses for Zambia. These different, competing sectoral water demands, coupled with significant water quality concerns and associated health risks, are imposing increasing constraints on economic growth and there is a need to optimize the economic allocation of water and explore alternative water development incentives in other parts of the country.
7. All of Zambia’s water resources form part of two major international river basins, the Zambezi River basin and the Congo River basin. This strategic geographic position in the upper reaches of both these important catchments provides an important context for any water resources development. Zambia has played an important role in development of the Southern African Development Community (SADC) Revised Protocol on Shared Water Courses (2000) and is engaged in the process of developing co-operative mechanisms with riparian states. The Zambezi River, which accounts for 72 percent of Zambian territory, has seen a growing demand for both instream and abstractive uses of water from riparians to the basin as well as some beyond the basin, such as South Africa. These demands have implications on the opportunities for economic development in Zambia. The process to establish a Zambezi Watercourse Commission (ZAMCOM) initiated in 1993 has been realized with the ZAMCOM Agreement
4
coming in to force with ratification by six of the riparians states and establishment of an Interim ZAMCOM Secretariat to assist the riparian states to operationalize the ZAMCOM Agreement and establish a permanent ZAMCOM Secretariat. Despite this progress Zambia remains the only riparian to have not signed the agreement and one of two that have not ratified.
8. The issues of localized, economic water scarcity have been accentuated by the governing legislation that dates back to 1949 and the colonial administration. Recognizing this, the Government initiated a series of reforms across the water sector in the 1990s. These were focused on introducing a more efficient framework based on contemporary principles of IWRM that acknowledges the river basin as the primary unit for sustainable water management and recognizes the value of water. The 1994 National Water Policy provided a progressive policy framework for the sector that recognized the need for separation of water resources management from that of water supply and sanitation7. The National Water Policy was revised in 2008 to provide a contemporary vision and holistic direction for the water sector that aligns the institutional and legal framework with modern principles of water resources management. The revised Policy declares the principles of equitable access to water, priority use of water in satisfying human and environmental needs, and public ownership of the country’s water resources. The Policy also states that poverty reduction should be addressed as a primary development goal in water management decisions, the catchment is the main water management unit, and Zambia’s water resources shall be used, developed, and controlled in a sustainable manner for the benefit of present and future generations. Seventeen separate policy measures with 47 different objectives are outlined in the revised Policy. These objectives are supported by a number of recommended strategies.
9. In 2011 Zambia adopted a revised legal framework for water resources with approval of the “Water Resources Management Act 21 of 2011”. This translates the provisions of the 2008 Policy into enforceable legal provisions that aim to maximize the economic beneficial use of Zambia’s water resources in a more equitable and sustainable manner. The law introduces a modern approach to water resources management that introduces a new institutional arrangement tailored towards the objectives of Integrated Water Resources Management. Provisions of the Act comprise:
An autonomous National Water Resources Management Authority (WARMA) to replace the existing Water Board. The WARMA will be responsible for all water resources management functions except policy formulation and guidance as well as issues relating to shared water courses (notably the Zambezi River);
Catchment Councils and Sub-Catchment Councils (where feasible) substituting the present Provincial and District setups for water management;
Water User Associations, which should be formed on a demand driven basis; A Water Resources Development Fund to make investments benefit the poor managed by
an autonomous board with WARMA as secretariat; and,
7 Key aspects of the policy included: i) Recognizing the importance of the water sector in overall socio-economic development; ii) Ownership of water resources vested in the state; iii) Promotion of water resources development through an integrated management approach; iv) Development of an appropriate legal and institutional framework for effective management of water resources to the replace outdated legal from 1949; v) Promotion of disaster preparedness to mitigate the impacts of extreme occurrences; and, vi) Recognition of water as an economic good.
5
A Department of Water Resources to substitute the present DWA and be responsible for policy formulation and guidance as well as international rivers.
10. The Government is implementing a step-wise approach to implementing the Act by advancing on numerous fronts and a parallel process is being established to capacitate the appropriate institutional framework. A number of prerequisite activities still need to be undertaken and subsidiary legislation is envisaged to enable rapid implementation of the provisions of the Act. An Integrated Water Resources Management and Water Efficiency Implementation Plan (IWRM&WEIP) was prepared with the intention of supporting the provisions of the Act. The IWRM&WE IP emphasizes the vital importance of water infrastructure development in reducing the uncertainty of access to water due to rainfall variability and water shocks and is intended to ensure that implementation of actions in the water sector are done in a coordinated, effective and efficient manner. The IWRM & WE IP outlines the Government’s program toward a common approach for support to implementation of the provisions envisaged within the Act. Partnerships are central to the Government’s vision within the IWRM & WE IP, building on the lessons learnt under the Water Resources Action Program that was supported by a wide range of partners between 1997 and 2011. The inclusion of provisions for establishing a Water Resources Development Fund is intended to provide a common framework for directing financial resources to rural infrastructure, improving transparency and efficiency in directing resources toward rural water resources infrastructure programs and ensuring sustainable outcomes.
C. Higher Level Objectives to which the Project Contributes
11. The Government of the Republic of Zambia (GRZ) has ambitious plans to accelerate and share economic growth, described in its Vision 2030, and the Sixth National Development Plan (2011-15). The SNDP aims to increase investments in Water and Sanitation Infrastructure development and establish river catchment structures for effective integrated water resources management. It is expected that this will set the foundation for sustainable water resources management and infrastructure development programs. It is also anticipated that these efforts will ensure multi-sectoral planning and implementation in water development with active community participation. Equitable socio-economic development of the country is the expected result.
12. The National Water Resources Development Project is fully consistent with the Bank’s strategy for Africa, was positioned within the framework of the Country Assistance Strategy (CAS) for Zambia (FY2008-11) and is aligned with the Country Partnership Strategy (FY13-16). The Bank Strategy for Africa8 emphasizes that closing Africa's infrastructure gap is essential for driving productive development of urban growth poles and for building resilience to the negative effects of climate change and natural disasters, such as floods and droughts. The Project will make significant contributions to the Strategy's two pillars: 1) Competitiveness and Employment, and 2) Vulnerability and Resilience. These are reflected in the pillars of the FY13-16 CPS for Zambia which is focused on addressing poverty and vulnerability, including improved climate resilience, along with competitiveness through infrastructure development. Both of these pillars will be supported through the project. The Bank is also playing a transformative role through existing partnerships. As the Lead Cooperating Partner under the division of labor in the Joint
8 Africa's Future and the World Bank's Support to It. (February 2011)
6
Assistance Strategy for Zambia, the Bank has assisted the GRZ in articulating a broad based program of support around implementation of the IWRM & WE IP.
13. This builds on the history of support to the sector through the Water Resources Action Programme (WRAP) that was launched by Government in 2001 to support the implementation of the 1994 National Water Policy and provide a framework for joint assistance among the Cooperating Partners. The WRAP was intended to analyze and propose the establishment of a comprehensive framework to promote the use, development and management of water resources to promote economic development in a sustainable manner. The WRAP has been coordinated by the Government through MEWD and variously supported by NORAD, Ireland Aid, GTZ, DANIDA and the Bank.
14. The CPS acknowledges the importance of water resources management and agriculture in addressing rural poverty. The proposed project is included in the CPS with following specific goals and outcomes: (a) Outcome 1.2.2: direct project beneficiaries from small water resources infrastructure; (b) Outcome 2.2.3: water storage and regulation established; along with contributions to improved resilience to climate change and increasing areas provided with irrigation and drainage facilities. These have been informed by the Country Water Resources Assistance Strategy for Zambia: “Managing Water for Sustainable Development” (2009). The CWRAS constructed an analytical framework for directing investments in water resources within six thematic areas: (a) Multi-purpose, small scale water resources development; (b) Protection and development of water supplies; (c) Itezhi-Tezhi Dam safety and investigations into increasing its capacity; (d) Water resources planning and development; (e) Water resources assessment; and (f) Strengthening Zambia’s capacity in trans-boundary water resources management.
II. Project Development Objectives
15. The Project Development Objective is to support the implementation of an integrated framework for development and management of water resources in Zambia.
16. The Project Beneficiaries are targeted rural communities who will benefit from improved small scale water resources infrastructure. Benefits will also accrue in key river basins to water users and improvements aggregated as the national level through allocation of water and rights. Construction/rehabilitation of some 100 small dams is estimated to have 1,000,000 direct and indirect beneficiaries over the next decade. It is estimated that direct investments in rehabilitation and multi-purpose upgrading of a dam affects some 10,000 beneficiaries.
17. The PDO Level Results Indicators are:
(a) Improved accuracy of hydrological forecasts;
(b) Water storage established in rural communities;
(c) Water resources infrastructure investments under preparation; and,
(d) Water permits monitored for compliance.
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III. Project Description
A. Project components
Component A: Water Resources Management (IDA contribution US$ 8 million)
18. The objective of this component is to enhance capacity at the national and regional level to address the challenges of water resources management in Zambia. The component will provide support to: (a) construction, rehabilitation and upgrading of hydro-meteorological and groundwater monitoring networks; (b) review and upgrading of operating procedures and processes to enhance the capacity of hydro-meteorological and groundwater information management systems and functions; (c) enhancing institutional partnerships and collaborations; (d) review, upgrading and implementation of the national hydrological and hydrogeological information management systems, including the integration of spatial and remotely sensed data; (e) development of flood forecasting and early warning systems; (f) preparation of consolidated catchment and basin-level water resources development plans and carrying out associated strategic water assessments, including groundwater; and (g) implementation of arrangements and measures for water resource allocation, licensing, revenue and compliance monitoring and management. These activities will be supported through the provision of: i) consultants services and technical assistance; ii) goods and equipment, including hydro-climatic and water quality equipment, bulk meters, computers, vehicles and office equipment; iii) works to establish hydro-meteorological stations; and, iv) carrying out of training and capacity building activities to the sector.
Component B: Water Resources Development (IDA contribution US$ 30 million)
19. The objective of this component is to address the infrastructure deficit through support to: (a) development and rehabilitation of small scale water resources infrastructure, such as small dams, weirs, gabions, and other small civil works intended to retain water, reduce erosion, enhance recharge and ensure productive application; (b) updating and climate screening the 1995 Dam Development Master Plan to identify a series of priority investments for further preparation; (c) preparation of studies in support of a proposed pipeline of future medium and large scale water resource investments; (d) supporting environmental and social assessments for future potential water resource investments; (e) carrying out community mobilization and sensitization; (f) development and implementation of a national dam safety monitoring program; and (g) development and implementation of a national managed groundwater development program. This will be supported through the provision of: i) consulting services and technical assistance for the planning for water resources infrastructure, along with the preparation of environmental and social safeguards instruments; ii) works required for construction of infrastructure; iii) goods needed to support implementation and, iv) operating expenses associated with workshops, training, community mobilization and capacity enhancement initiatives.
Component C: Institutional Support (IDA contribution US$ 12 million)
20. The objective of this component is to strengthen the institutional capacity for water resources management and development, including both surface and ground water. The component will provide support to: (a) support for the set-up of institutions established under the Water Resources Management Act and implementation of their functions; (b) development of rules, plans, strategies and carrying out of studies, as needed, for the implementation of the Water Resources Management Act to ensure the sustainable and equitable development of water
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resources; (c) building capacity for negotiations, conflict resolution, monitoring and compliance with international water instruments; (d) enhancing inter-agency coordination; and (e) financing of costs associated with project management, coordination and oversight. These activities will be supported through the provision of: i) consultants services and technical assistance; ii) goods and equipment, including computers, vehicles and office equipment; iii) training and capacity building activities; and, iv) incremental operating costs to support the National Water Management Authority and departments within the Ministry associated with institutional transition.
B. Project financing
21. Lending Instrument: The proposed lending instrument is a Specific Investment Loan (SIL) comprising an International Development Association (IDA) Credit of US$50 million Special Drawing Rights (SDR) equivalent, to be implemented over five years. Selection of the SIL was premised on the flexibility and its suitability to incorporate financing for a broad range of activities including a number of specific investments across the country, technical assistance and capacity enhancement measures.
Table 1. Project Financing Table
Project Components (US$m) IDA % IDA Financing
AWF KfW GIZ BGR
A: Water Resources Management 8 100 €5.0 €3.0 €1.8B: Water Resources Development 30 100 C: Institutional Support 12 100 Total Program Contribution 50.0 100 2.9 €5.0 €3.0 €1.8Grace Period (years) 10 Grant Off
budgetGrant
Off budget Grant
Off budget Grant
Repayment Period (years) 30 Interest (%) 0.75 Other 0.501
22. The project is not intended to be a standalone intervention but integrated as part of concerted effort by the GRZ to address water resources development and supported by a number of CPs in the sector. This effort builds on the WRAP and is guided by the IWRM & WE IP. Parallel co-financing to this broader effort to support water resources in Zambia is summarized in the table above.
C. Lessons Learned and Reflected in the Project Design
23. The project identification process was assisted through the Country Water Resources Assistance Strategy for Zambia. The CWRAS provided an analytical framework to support the GRZ in prioritizing water resources interventions to reduce vulnerability to water shocks and to provide a minimum platform of water infrastructure. It also provided a mechanism for directing the Bank’s support in water resources to maximize the impact on long-term poverty reduction and economic growth within the context of the approach and priorities of the CAS. The CWRAS was also used to identify the Bank’s specific strengths with respect to other development partners and, at the same time, promote donor coordination and cooperation in the water resources sector in the identified priority areas of interventions. Through an analysis of water-related challenges to economic development, priority interventions were identified to mitigating negative impacts on growth and to enhance the potential in poverty reduction.
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24. The process of project preparation has been informed by lessons learned from the Bank’s global experience with complex water resource development projects. The World Bank’s 2003 Water Resources Sector Strategy (WRSS) provided the guiding principles for the CWRAS and the project preparation process has drawn on lessons derived from the implementation progress report of the 2003 WRSS as well as the recommendations of the World Bank’s Independent Evaluation Group’s report on water and development. These lessons highlight the importance of properly aligning the implementation of environmental and social measures during the early stages in design and development of complex water resources development projects. They also highlight the need to consider interventions within an integrated basin-wide management framework that explicitly considers the cumulative impacts of all developments, not only of the specific project under consideration.
25. Experience throughout the world has made clear the importance of the presence of strong institutions able to manage infrastructure planning, construction, and operations, as well as the often extensive time periods necessary to adequately develop such institutions. The Water Resources Act acknowledges this and is founded on the decentralization of water resources management and development at the river basin level. A series of lessons were derived from the GRZ’s previous experience in the development of small dams and associated water resources infrastructure. This includes investments made under the Zambia Social Investment Fund (ZAMSIF), the DANIDA supported program for the development and rehabilitation of small dams in the Kafue River catchment and Bank support to small scale irrigation schemes, such as that at Nangubo. These all highlight the need for community commitment to the process through early engagement as well as the need to ensure broad inter-ministerial support to maximize collaboration and leverage the incremental benefits to be derived through local infrastructure investments.
26. Zambia is involved in global, regional and river basin collaborations. As a member of the World Meteorology Organization (WMO), the Southern African Development Community (SADC), the Zambezi River Authority (ZRA) and active partner in the tripartite Zambezi Joint Technical Operational Committee (JTOC) which includes Mozambique and Zimbabwe, Zambia could benefit further from international initiatives on generation and exchange of hydro-meteorological data. With strengthened national level activities, the proposed Project will support Zambia as it seeks integration and access of relevant data and predictions as well as facilitate opportunities for training or calibration of sensors through international collaborations
IV. Implementation
A. Institutional and Implementation Arrangements
27. The Water Resources Development Project (WRDP) will be implemented through the Ministry of Mines, Energy and Water Development (MMEWD) as the overall lead implementing and coordinating agency. Acknowledging that the Water Resources Management Act includes provisions for institutional re-organization, with the creation of a number of new entities, the focus of the project support will be towards consolidating the water resource development and management functions and not on the dedicated form. All entities will fall under the MMEWD and the arrangements are intended to allow flexibility to respond to changing institutional environment and meet the needs of the institutional configuration that evolves out the continuing reform process with outputs readily transferable to the changing institutional arrangements.
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28. The management framework shall comprise: a) The Project Steering Committee (PSC) which will facilitate overall coordination, endorse annual work plans and budgets and provide policy and strategic guidance; b) The Project Coordinator responsible for the overall coordination and implementation; and c) a Project Management Team led by a Project Manager who will be responsible for overall technical supervision and lead on the planning and execution of the project. Coordination with other partner programs will be facilitated through the Water Sector Advisory Group. This provides a multi-sector advisory and consultative platform to ensure coordination with other stakeholders and continued alignment with government priority programs. Detailed implementation arrangements are elaborated in Annex 3.
29. Project implementation will be supported by specialists as required from time to time, with support staff budgeted and financed under the Project. This will ensure that the projects operations and certain specialized tasks are executed by specialists with the required background and knowledge, including: (i) professional staff including environmental and social safeguards, institutional experts, dam design and construction, water resources management, information; economics, and planning expertise, an accounting or financial management specialist and procurement specialist; (ii) short term expertise may include: planning, monitoring and evaluation, irrigation engineering, dam design and construction engineers, catchment management, civil engineer, facilitators, water quality, legal expertise, international waters; information technology services, procurement and financial management specialist etc.; and (iii) annual external audits.
30. During project implementation, fiduciary and administrative capacity will be enhanced in MMEWD to carry out these functions and will be re-assessed at mid-term. The MMEWD will be responsible for financial management under a single Designated Account and centralized support for procurement services. All procurements under national competitive bidding procedures will be based on procedures acceptable to the Bank as stipulated in the Zambia Public Procurement Act No 12 of 2008 as amended by amendment No 15 of 2011 and the Statutory Instrument No 63 of 2011 “Procurement Regulations” and the accompanying National Standard Bidding Documents of November 2012. The institutional arrangements, roles and responsibilities will be as provided in the MMEWD procedures manuals. These will include clear and accountable arrangements for decentralized procurement by Procuring Entities (PE) devoid of participation of the Zambia Public Procurement Authority (ZPPA) that came into effect on January 01, 2013. All procurement will be based on the Guidelines Procurement of Goods, Works and Non Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers January 2011 edition and Guidelines Selection and Employment of Consultants under IBRD loans and IDA Credits and Grants by World Bank Borrowers January 2011 edition, and are subject to the Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, dated October 15, 2006 and revised in January 2011.
B. Results Monitoring and Evaluation
31. The MMEWD has developed a monitoring framework within the context of national reporting system for the Sector Advisory Group and the sub-groups on water resources infrastructure, water resources development management and capacity. This provides the basis for an agreed reporting framework for the national water resources initiatives. The framework was elaborated in consultation with stakeholders to measure performance and track outcomes of interventions in the water sector. The project’s monitoring and evaluation framework (Annex 1)
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uses a sub-set of these sector-level indicators and as such is fully aligned with the sector M&E system.
32. Monitoring of specific activities will be the responsibility of the DPI within the MMEWD as part of their responsibilities for the overall sectoral coordination and planning functions. A designated M&E officer will be identified within the MMEWD to ensure integration of information from the relevant implementing and beneficiary agencies within the national monitoring framework for the sector. Resources have been allocated under the project to provide additional support as needed, including for the possible use of third party monitors. Standard reporting formats will be developed and included in the PIM. Semi-annual reports will be submitted to the Bank reflecting progress on the national system and the subset of project specific indicators.
C. Sustainability
33. Sustainability will be dependent on strong Government leadership and support to communities in developing the expertise and skills required to capitalize on investments in water resources infrastructure. This process has been strengthened through an iterative process of project identification and preparation that builds on a solid analytical foundation. Development of nationally adopted manuals to clarify processes for identification, mobilization and development of infrastructure at the community level and enhanced inter-governmental coordination will assist in strengthening the foundations for community involvement and sustainability.
34. The project builds on the Ministry’s own IWRM & WE IP that was in turn facilitated by the Zambian Water Partnership. This broad based, inclusive approach to formulation of a national program document that clearly articulates priorities helps to ensure a high degree of ownership. The project will also help to strengthen the regional framework for international waters and leverage Zambia’s strategic position within the Southern African Development Community and some of Africa’s most important river basins.
V. Key Risks
35. The principle risk is associated with the time required to conclude the current phase of the reform process and allow for establishment and organic development of the institutional arrangements envisaged under the Water Resources Management Act. This requires strong ownership and political commitment as well as balancing the expectations of outcomes envisaged from the supporting partners and stakeholders.
36. Strong institutions are needed to manage infrastructure planning, construction, and operations. However, there is a risk in allowing form to dictate function while meeting the expectations envisaged under the reforms prescribed in the Water Resources Management Act. Long time periods are often necessary to adequately develop such institutions and reforms in the absence of measures aimed at strengthening the core functions required to realize the countries potential development gains will undermine the sustainability and success of the institutions. The project will need to focus on supporting core functions that can be aligned to changes in form as institutional reforms are affected and political process evolves. Ensuring a focus on infrastructure development and enhancing the economic framework for water resources development will be important to meet the expectations of stakeholders. This will also help demonstrate the returns that can be derived from improved management of the nation’s water resources.
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37. The overall implementation risk is assessed as substantial. The institutional changes introduced under the 2011 Water Resources Management Act coupled with an ambitious reform agenda aimed at enhancing the Government’s capacity to sustainably develop water resources in Zambia requires a long term commitment, adequate financial resources and strong human resource capacity. These are being supported through the proposed Credit, with a focus on the institutional functions allowing time to transition to the legislated form of the respective institutions. Environmental and social risks associated with the construction of small-scale water resources infrastructure are to be mitigated through a comprehensive environmental and social management framework that has been developed during preparation to screen for potential impacts. National planning measures, including the application of earth observation and remote sensing technologies, will help inform spatial planning and identify the potential for any possible cumulative impacts. The proposed Credit will support the institutional, technical, and management capacity necessary to mitigate the Project associated risks and enhance Government’s long term efforts toward the sustainable development of water resources.
Stakeholder Risk Moderate
Implementing Agency Risk
- Capacity Substantial
- Governance Substantial
Project Risk
- Design Moderate
- Social and Environmental Moderate
- Program and Donor Moderate
- Delivery Monitoring and Sustainability Substantial
Overall Implementation Risk Substantial
VI. Appraisal Summary
A. Economic and Financial Analysis
38. The project has adopted a framework approach and specific investments will only be identified and confirmed during implementation. This makes the determination of benefits and a robust analysis of the economic rate of return difficult. However, one of the challenges facing Zambia’s economy is the vulnerability and increasing constraints derived from a number of water-related factors. The CWRAS estimates that recurrent floods and droughts over the past three decades have cost Zambia US$13.8 billion, a 0.4 percent annual loss of economic growth. Climate change is expected to increase the intensity of these events and further impact on the national economy. In the absence of investments in adaptation measures and an appropriate infrastructure platform, rainfall variability alone could keep an additional 300,000 people below the poverty line and cost Zambia US$4.3 billion in lost GDP over the next decade, reducing annual GDP growth by 0.9 percentage points.
39. Frequent droughts and floods, hydrological variability and seasonal water shortages, compounded by growing water demand from the major sectors of the economy and limited water infrastructure impose a serious constraint on the medium and long-term growth prospects. The
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project will support Government’s efforts to strengthen the knowledge platform and analytical tools for water resources planning and management, improve the resilience of local communities to hydro-climatic variations through small scale infrastructure and support development of a pipeline of larger infrastructure projects that will reduce the economic scarcity of water in the production chain and provide the foundations for continued economic growth and development.
40. Investments in improved hydrological and meteorological systems under Component A, will improve the ability of government agencies responsible for monitoring and forecasting water and weather conditions to deliver more relevant, timely and accurate information (hydro-met information). This will provide improved public services relating to hydro-met information to both people, government agencies and private enterprise that will help reduce socio-economic losses associated with extreme climate events (such as droughts) as well as help improve decision making that increases economic gains (such as water allocation, agricultural output or aviation efficiencies). Although difficult to estimate the exact economic returns from these types of public expenditures in hydro-met monitoring and forecasting, international studies show substantial benefits accrue when hydro-met information is delivered or made accessible to users across sectors. The value of the US Government's National Weather Services to households, for example, have a 1:6 cost benefit ratio, with a similar 1:5 ratio in Switzerland for the agriculture and energy sectors. Within southern Africa, a recent analysis of a World Bank-supported hydro-met investment of US$15 million in Mozambique has been estimated to have a net present value to households of US$391 million and US$17 million to productive sectors over a 50 year timeline (with 3% discount rate). For the proposed Project investments in Zambia, emphasis is given to the ability for implementing agencies to strengthen the value-chain of hydro-met information, not only to improve the accuracy of water and weather data that is collected (through better integration of remote sensing data for example) but also the agencies' ability to deliver information to users in key sectors such as early warning to the disaster management agency or weather predictions to farmers.
41. An economic and financial assessment to determine the efficacy of public expenditures on the improvement of rural livelihoods with focus on investments in small scale water resources infrastructure9 was carried out during preparation. Small reservoirs were found to have important functions in safeguarding local livelihoods and sustaining communities through multiple uses, such as: (i) enhanced domestic water security, (ii) increased agriculture yields of smallholder farming, (iii) fish farming opportunities, (iv) water for livestock, and (v) several water dependent activities such as brick-making, tree growing, food processing, mini hydropower systems etc. Another beneficial effect of small dams was the enhanced effects on groundwater recharge. Small dams were also found to be beneficial instruments for climate change adaptation through flood impact attenuation etc.
42. The assessment found that Zambia has increased total spending on small dam projects in recent years, more than doubling levels from 2005. The assessment found at least 17 programs that include activities related to the construction, expansion or rehabilitation of small dams being implemented by numerous Government entities. A cost-benefit analysis of the construction and rehabilitation of existing small dams at a range of project scales and under a variety of circumstances showed incomes increased for all categories and that these were more than
9 GRZ/WBG: Economic Analysis of the Impact of Small Dams on Rural Poverty in Zambia. Nordic Consulting Group (NCG) (18 September 2010)
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sufficient to justify the initial investments. The analysis of household income of small dam users showed that it exceeds the net additional income required to make rehabilitation and also investment in new dams justifiable for data examining 42 dams between 2005 and 2009.
B. Technical
43. The Government recognizes that effective development of water resources is fundamental to sustainable economic growth and enhanced poverty reduction. Within the framework of the SNDP, the Zambian Government recognizes the need to: (a) achieve sustainable water resource development for social and economic development by conducting studies for development of priority water resources infrastructure projects; (b) strengthen capacity for mitigation and adaptation to effects of climate change by developing pilot projects for improving resilience of water resources management; (c) develop innovative approaches and appropriate technologies for the effective management of the nation’s water resources by conducting applied research in water management and development to enhance socio-economic advancement and conducting demand driven surveys; (d) strengthen the national hydrological network for water resource survey and institutional capacity for hydro-meteorological and groundwater monitoring; (e) conduct applied research in water resources management and development to climate change adaptation and the enhancement of socio-economic development; and, (f) ensure effective water resources management at catchment, regional and national levels by providing an appropriate policy, legal and institutional framework for integrated water resources management as well as developing skills at river catchment, basin, regional and national levels.
44. The proposed project will support strategic interventions to improve the management and development of Zambia’s water resources. Improved and better integrated information management systems will help manage the hydrological resource base, increase productive and sustainable allocation of water resources and strengthen the revenue streams for supporting the new institutional structures envisaged under the new Act. Analytical tools and capacity building of technical staff will increase the modeling and forecasting capabilities, improve decision making processes and improve the economic efficiency of allocation decisions made in support of water resources development. With better data on water and weather, Zambia can also more actively engage in transboundary cooperation, such as through the JTOC. By investing in small scale water resources infrastructure, the project will help consolidate the processes for increasing community resilience, improving water security and the associated linkages to guide Governments own resources. Coupled with this, the development of a pipeline of larger investments will build on the 1995 Master Plan to provide a blue print for further productive developments. These will be guided by a detailed review of the outputs from the Water Resources Action Program (WRAP). Initiated by Government with support from development partners in 2001, the WRAP facilitated the development and adoption of the new legal framework and provided a solid foundation to promote the use, development and management of water resources for economic development in a sustainable manner.
45. The project will finance construction of small water resources infrastructure, to support productive development of farm and fish ponds, community irrigation, and water supply schemes, for which the application of generic dam safety measures will apply. The construction or rehabilitation under the project of such water retention structures requires the project to be in accordance with small dam guidelines, which include the existing regulations and the generic
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guidelines in the FAO Technical Guide for Small Earth Dams10 (FAO, 2010). This manual is designed specifically for engineers, technicians and extension workers involved in water resources, agriculture, commercial farmers and contractors – all with some understanding of engineering and some experience of dams, irrigation and water supply. It was developed based on the experience in southern Africa and within the context of the CWRAS that builds on the existing procedures. These technical guidelines have been implemented in compliance with the national requirements and guidelines for the construction, maintenance, and safety of small dams.
46. In the absence of uniform planning procedures for the construction or rehabilitation of small water resources infrastructure, a number of initiatives have been supported during project preparation. The Government has extensive experience in the mobilization of local communities and development of small scale water resources infrastructure. Building on the existing guidelines and manuals, a series of process oriented guidelines are being developed with support from the African Water Facility. These will provide a coherent set of common guidelines applied by the various water resources related authorities including DWA, and the Ministries responsible for Agriculture, Local Government, and Community Development and Social Welfare. The FAO Manual on Small Earth Dams provides the foundations for further development and localization of emerging innovative approaches such as: (i) community driven water resources management and development; (ii) public awareness on infrastructure development and operation and management requirements; (iii) economic analysis and multi-purpose optimization; (iv) financial mobilization and partnership development; (v) integration of climate change issues, (vi) environmental management and social equity aspects; and (vii) impact monitoring and knowledge management.
47. Collaboration with the European Space Agency has been used to develop a methodology based on earth observation technology that supports ground-based inventory and assessment of small dam sites and improved information management systems. Several efforts have been made to carry out detailed inventories of the hydraulic infrastructure in Zambia and the latest physical ground survey to compile a dam inventory for the country suggested the number of such structures between 2,000 and 3,000. The results of the pilot employing earth observation techniques for Southern Province alone estimated the number of reservoirs with a minimum mapping unit of 0.5 Ha at over 1000. The results showed a structured spatial distribution with the water volume of each reservoir estimated using a power regression between surface area and water storage capacity providing a mechanism to allow for monitoring of the temporal dynamics of water storage and important indicators for food production and required extension efforts. The earth observation products, coupled with physical inventory and assessment of site specific conditions provide a comprehensive overview of all small reservoirs and their storage evolution over time.
48. Application of similar techniques in the Kafue River basin estimated the area under irrigation to be 49,653 ha. This is in contrast to the distribution of registered water rights which estimated the total surface water irrigated area to be 34,966 ha. Of the total, 8,993 ha (22%) was estimated to be based on groundwater abstraction for which there were no provisions under the previous legal regime for registration, licensing or revenue collection. The integration of these
10 “Manual on small earth dams. A guide to siting, design and construction” Investment Centre Division, FAO, 2010.
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types of earth observation techniques into the information management systems has the potential to strengthen the physical in situ assessments to improve license conditions, revenue collections, as well as providing a guide to extension resources, safety considerations and potential cumulative impacts.
C. Financial Management
49. A financial management assessment of the implementing entity (MMEWD) was carried out November 23, 2012 in accordance with the Financial Management Manual for World Bank-Financed Investment Operations, issued by the Financial Management Sector Board on March 01, 2010 and the ORAF Financial Management Draft Interim Guidance Note issued by the AFTFM unit on September 30, 2010. Based on the existing financial management arrangements the risk rating is assessed as Substantial, although the overall conclusion of the assessment is that the MMEWD satisfies the minimum financial management requirements. The financial management action plan in Annex 3 outlines the mitigating measures.
D. Procurement
50. A procurement capacity assessment was undertaken using the Bank’s Procurement Risk Management System (PRAMS) on March 05, 2012. The overall procurement risk was assessed as High. Implementation of identified mitigation actions would reduce this to Moderate. The MMEWD will need to develop a procurement manual by effectiveness in readiness for implementation. The procurement manual will through the “Risk and Risk Mitigation Measures Action Plan” propose how to address the identified risks. The manual will include a clear basis for legal and regulatory framework, roles and responsibilities, internal and external controls, approval systems and accountability, contracts register, responsibilities and roles of various players in contract management based on both Government and as required prior review contracts IDA. More importantly given the decentralization of all public procurement to the Procurement Entities in Zambia with effect from January 01, 2013, the manual will need to clearly indicate how procurement will be carried out based on internal controls devoid of the participation by the ZPPA who with effect will transform itself into a regulatory and oversight body for public procurement in Zambia. Review of the procurement capacity of the MMEWD revealed that (i) Staff numbers are limited and may be inadequate to carry out procurement given potential increase in work load and the realigned functions of the Ministry; (ii) It was also observed that the level of the highest procurement staff currently employed in the Ministry is that of a Senior Procurement Specialist. This is a relatively junior position given that above this level there are two other positions, that of Chief Procurement Officer and Head of Procurement, both of which do not exist in the MMEWD; (iii) For the project to be successful, more senior staff may be required to undertake procurement either by recruiting full time civil servants or in the short term recruitment of consultants on short term 1-2 years basis. These steps are critical in view of the full decentralization of procurement to the Procurement Entities.
E. Social
51. The project is aimed at supporting the implementation of an integrated framework for water resources management that promotes infrastructure development in support of economic growth, poverty reduction and climate resilience. Benefits are expected to accrue to water users in key river basins and improvements aggregated as the national level through allocation of water and rights. Direct beneficiaries are expected to include rural communities who will benefit from increased resilience and improved small scale water resources infrastructure. The construction
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and rehabilitation of small scale water resources infrastructure is directed toward strengthening the resilience of these communities to hydro-climatic variability and improving local livelihoods.
52. Stakeholder participation in the development of small scale water resources is central to the success and sustainability of interventions. Building on Government’s existing systems and experience, the guidelines for development of small scale water resources projects provide a uniform framework for ensuring stakeholder engagement and directing community mobilization measures. The 2011 Water Resources Management Act includes specific provisions for the establishment of Water User Associations to promote the participation of communities in water resources management and ensure gender mainstreaming in the decision-making process relating to the use of water. The WUA are mandated with functions to support water resources management, including the local water management plans along with investigating and dealing with disputes relating to the use of water.
53. The Environmental and Social Management Framework ensures requisite provisions for protecting and mitigating any potential negative impacts associated with project interventions in line with World Bank safeguard policies and national requirements under ZEMA. Land acquisition may be required to facilitate the development of some small scale water resources infrastructure. Physical relocation will be determined based on individual site characteristics during the screening in accordance with the provisions of the environmental and social management framework.
54. The project triggers OP/BP 4.12 (Involuntary Resettlement). The Resettlement Policy Framework (RPF) for the overall project specifies the basic principles and procedures to be followed in the event that investments would lead to involuntary relocation of project affected people, loss of assets or access to assets, and includes a negative list preventing any investments in National Parks that could result in restrictions on access to natural resources used to maintain livelihoods. The RPF was posted on the Ministry of Mines, Energy and Water Development website to facilitate public consultations, which were held in Lusaka on January 31, 2013. The RPF was submitted through the InfoShop on February 07, 2013. Resettlement Action Plans (RAPs) will be prepared during project implementation, as and when necessary.
F. Environment
55. The objective of the Project is to support the implementation of an integrated framework for development and management of water resources in Zambia, thereby enhancing sustainable management of water resources and producing positive environmental benefits. A range of scenarios were assessed during preparation. These included the “no project” option. This was assessed to maintain the exposure of local communities to the impacts of hydro-climatic variability and continued vulnerability to floods and droughts, continuing poor land productivity and loss of biodiversity, increased competition across water allocations for new investments without an information or analytical basis for such choices, and the associated long term negative impacts on prospects for economic development and productive application of water resources.
56. The project is intended to promote increased focus on the environmental sustainability by strengthening an integrated framework for water resources management and so have an overall positive impact on the development of water resources. Infrastructure development supported under the project is limited to small-scale and localized investments, without any large scale, significant or irreversible adverse environmental or social impacts. Nonetheless, an
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environmental and social management framework has been prepared to address the range of potential environmental and associated social issues.
57. The project triggers the following environmental and legal safeguards policies: OP/BP 4.01 (Environmental Assessment), OP/BP 4.09 (Pest Management), OP/BP 4.11 (Physical Cultural Resources), OP/BP 4.37 (Dam Safety), and OP/BP 7.50 (Projects on International Waterways). The Environmental and Social Management Framework provides a common framework to screen all potential investments in order to assess any potentially negative environmental or social issues. Investments in small scale water resources development will include small dams, weirs, gabions, and other small civil works intended to retain water, reduce erosion and enhance recharge, along with measures to enhance productive application of water to enhancing community livelihoods and promote income-generating activities.
58. The ESMF provides a transparent, standard process for the identification and screening of potential environmental and social impacts associated with any small scale water resources infrastructure investments. Interventions are being identified and designed in consultation with local communities and specific assessments will be carried out for investments as determined during the screening process. Investments will be restricted to those less than 10 meters in height or store less than 1,000,000 cubic meters of water. The distribution of the small-scale water resources infrastructure supported under the project is intended to be national. The integrate information management system is using remote sensing and earth observation techniques, with ground truthing, to map all water bodies and will be used to identify potential areas of concentrated investments.
59. The ESMF indicates the corresponding mitigation and enhancement measures for each type of environmental and social impact identified (whether negative or positive). This includes (mostly highly positive) impacts upon natural habitats, issues relating to integrated pest management and careful pesticide use, and chance finds procedures for any physical cultural resources that might be discovered during construction activities. Where there is a potential for a concentration of investments in any particular area, the environmental instruments will be used to assess potential environmental impacts and appropriate mitigation measures for any cumulative or induced impacts.
60. The ESMF has been prepared, disclosed in-country on the MMEWD website on January 18, and was publicly consulted upon on January 31, 2013 in Lusaka. The ESMF was submitted for disclosure through the InfoShop on February 17, 2013. Environmental and Social Impact Assessments/Environmental and Social Management Plans (ESIAs/ESMPs) will be prepared once sites and works are identified. The support to preparation of a pipeline of investments planned or designed under the project will be accompanied by required environmental and/or social assessments. The project is intended to promote increased focus on the environmental and social implications of any proposed new investments, supported by capacity-building activities.
61. The project triggers OP/BP 4.09 (Pest Management) but will not procure any pesticides or agro-chemicals. However, given that the project will be financing small water resources infrastructure, it is possible that the Government and or communities might increase use of pesticides within their existing production systems. The project would promote use of integrated pest management and the safe use, storage and disposal of agro-chemicals as appropriate. The project has prepared a Pest Management Plan (PMP) to meet the requirements of OP/BP 4.09. The PMP has been disclosed in-country on the Ministry of Mines, Energy and Water
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Development website and public consultations were held in Lusaka on January 31, 2013. The PMP was submitted to the InfoShop for disclosure on February 07, 2013.
62. The project triggers OP/BP 4.11 for Physical Cultural Resources because of the support to the construction of small scale water resources infrastructure. These works will involve excavations, movement of earth, and inundation of relatively small reservoir areas. The ESMF provides that as part of the environmental screening process, an assessment of potential negative impacts on physical cultural resources would be done for each sub-project/site during project implementation. Provisions have been included in the environmental and social management framework to ensure the requirements of the Policy are met, that chance find procedures are adhered to in the event that archaeological relics, fossils, or other physical cultural resources are discovered during any construction. A physical cultural resources management plan, which includes specific mitigation measures would be prepared as necessary. Where applicable, the plan would also assess the client’s capacity to implement proposed mitigating measures.
63. The project triggers OP/BP 4.37 (Dam Safety). Construction or rehabilitation of small scale infrastructure for the retention of water requires the project to be in accordance with small dam guidelines, including existing regulations and generic guidelines in the 2010 FAO Technical Guide for Small Earth Dams (see paragraph 45 above). This manual is designed specifically for engineers, technicians and extension workers involved in water resources, agriculture, commercial farmers and contractors – all with some understanding of engineering and some experience of dams, irrigation and water supply. It was developed based on the experience in southern Africa and within the context of the CWRAS that builds on the existing procedures. These technical guidelines have been implemented in compliance with the national requirements and guidelines for the construction, maintenance, and safety of small dams.
64. Capacity to plan and implement the environmental and social measures required under the project is limited and the Ministry has limited experience in overseeing implementation of activities and the World Bank’s environmental and social safeguard policies. Safeguards training for project staff and other relevant stakeholders is planned to take place during the first year of project implementation, with resources provided under the project to support additional capacity and just-in-time support as might be required during implementation.
65. The project triggers OP/BP 7.50 (Projects on International Waterways). Notification of the project was sent to all riparian states within Zambezi River and Congo River basin (i.e., Angola, Botswana, DR Congo, Malawi, Mozambique, Namibia, Tanzania, and Zimbabwe) on January 07, 2013 by the Bank following a request from the Government of the Republic of Zambia. It is envisioned that the project component aimed at addressing the water resources infrastructure deficit may have implications on International Waterways. Sub-projects under this component are not anticipated to adversely change the quality or quantity of water flows to the other Riparian States, and therefore not anticipated to cause appreciable harm to the other riparians, and will not be adversely affected by the use of water by other Riparian States. The development of these projects will be subject to the application of an ESMF and any studies supported under the project will be shared with Riparian States in accordance with the provisions of the SADC Revised Protocol and World Bank operational policies during implementation. This notification and request for any official comments was carried out in compliance with the Revised SADC Protocol on Shared Watercourses and meets those under OP 7.50 on Projects in International Waterways. No objections have been received from any of the riparian states.
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Annex 1: Results Framework and Monitoring
ZAMBIA: Water Resources Development Project
Results Framework
Project Development Objective (PDO) is to support the implementation of an integrated framework for development and management of water resources in Zambia.
PDO Level Results Indicators*
Cor
e Unit of Measure
BaselineCumulative Target Values**
Frequency Data Source/ Methodology
Responsibility for Data
Collection
Description (indicator
definition etc.) YR 1 YR 2 YR3 YR 4 YR5
Indicator One: Improved accuracy of hydrological forecasts
To improve community level water security & climate resilience. Est.
10,000 beneficiaries/dam
Of which female (percentage) % n/a n/a 50 50 50 50 Bi-annually Surveys MMEWD
Exploratory well fields developed # 0 0 0 2 3 4 Bi-annually Reports MMEWD Based on number of exploratory well-fields
Intermediate Result (Component Three): Institutional Support
Water Resources Management Authority financial sustainable
% 0 Established >1.0 >1.0 =<1.0 =<1.0 Annually Audit Reports MMEWD Defined as operating costs
divided by operating revenues
Operational water users associations created or strengthened
# 0 0 10 50 100 120 Annually Reports MMEWD Linked to small dams and CMAs
Strengthened capacity to facilitate management of international waters.
- No
dedicated unit
Unit established
2 agreements reviewed
# staff trained
IMS established
# notifications made
Bi-annually Reports MMEWD Based on Restructuring Report
Technical trainings held for water resources staff
# 0 2 4 6 6 6 Bi-annually Reports MMEWD In accordance with training plan
*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)
**Target values should be entered for the years data will be available, not necessarily annually.
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Annex 2: Detailed Project Description 1. The objective of the Project is to support the implementation of an integrated framework for development and management of water resources in Zambia. The Project Beneficiaries are targeted rural communities who will benefit from improved small scale water resources infrastructure. Benefits will also accrue in key river basins to water users and improvements aggregated as the national level through allocation of water and rights. Construction/rehabilitation of 100 small dams is estimated to have around one million direct and indirect beneficiaries over the next decade. It is estimated that direct investments in rehabilitation and multi-purpose upgrading of a single dam can affect some 10,000 beneficiaries.
2. The Government recognizes that effective development of the Nation’s water resources is fundamental to its economic growth and poverty reduction. The project has been prepared within the context of the Integrated Water Resources Management and Water Efficiency Implementation Plan (2008) that built on the foundations of the National Water Master Plan (1995). The Country Water Resources Assistance Strategy for Zambia: Managing Water for Sustainable Growth and Poverty Reduction (2009) prepared by the Bank in consultation with the GRZ identified a series of priority interventions reflected in project design. A Project Preparation Advance was signed on June 15, 2012 to support preparation of all components of the project. Interventions advanced include preparation for updating the dam development master plan, establishment of project management arrangements and preparation for the development of information systems.
3. The WRDP is one of a number of interventions aimed at supporting the Government’s efforts to address poverty and enhance economic growth and prosperity through accelerated infrastructure development, improved agricultural development and the promotion of investments in rural development to reduce the vulnerability of communities to climatic variability. The World Bank Group is supporting a number of projects in further developing the sustainable and productive management of Zambia’s endowment of water resources. These include interventions in energy, agriculture, water supply and sanitation, disaster risk reduction and climate resilience. These include the Irrigation and Development and Support Project, the Pilot Program for Climate Resilience, support to Lusaka Water and the Ministry of Local Government and Housing on urban water supply, the development of hydropower and the energy sector under the Increased Access to Electricity Services Project, the Kafue-Livingstone Transmission and the studies to advance on the Batoka Gorge Hydro-Electric Scheme. These are positioned within the regional context of activities directed to improving integration to capitalize on the strategic, land-linked geographic location within the Southern African Development Community. This includes activities within the context of the Southern African Power Pool and the Zambezi River basin. Within this context, the project will support the following three broad components aimed at strengthening the functions to support a modern framework for water resources in Zambia.
Component A: Water Resources Management (IDA contribution US$8m)
4. The objective of this component is to enhance capacity at the national and regional level to address the challenges of water resources management in Zambia. The component will provide support to: (a) construction, rehabilitation and upgrading of hydro-meteorological and groundwater monitoring networks; (b) review and upgrading of operating procedures and processes to enhance the capacity of hydro-meteorological and groundwater information management systems and functions; (c) enhancing institutional partnerships and collaborations; (d) review, upgrading and implementation of the national hydrological and hydrogeological information management systems, including the integration of spatial and
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remotely sensed data; (e) development of flood forecasting and early warning systems; (f) preparation of consolidated catchment and basin-level water resources development plans and carrying out associated strategic water assessments, including groundwater; and (g) implementation of arrangements and measures for water resource allocation, licensing, revenue and compliance monitoring and management. These activities will be supported through the provision of: i) consultants services and technical assistance; ii) goods and equipment, including hydro-climatic and water quality equipment, bulk meters, computers, vehicles and office equipment; iii) works to establish hydro-meteorological stations; and, iv) carrying out of training and capacity building activities to the sector.
5. Hydro-Meteorological & Groundwater Monitoring Networks. Data collection and transmission systems provide the essential foundations for the development of effective decision making and planning with respect to weather and water resources management. Based on detailed design work done over the past decade, by the MMEWD through the WRAP in particular, financing would be provided to support the overall capacity to maintain and operate nation-wide monitoring networks. This will include implementation plans, design work and installation of optimal and strategic monitoring equipment. As necessary, this will include rehabilitation and upgrading of strategic sections of the monitoring networks, including new and renovated river gauging stations along with appropriate equipment, upgraded and new groundwater and aquifer monitoring systems (including piezometers, automatic and digital water level recorders, data loggers/data collection platforms, exploratory/observation boreholes), new and upgraded meteorological stations (with a focus on strategically located rainfall gauges and automatic weather stations). To prevent theft and destruction of monitoring equipment, resources will also be allocated to selection of optimal technologies and protective measures.
6. The investments into monitoring networks will facilitate the collection of near and real time hydro-meteorological data, which would support formalization of processes and procedures for quality control and compliance, integration across sectors and the modeling of alternative scenarios of hydro-meteorological conditions and demand forecasts that can be linked to an improved system of water rights and revenue collection. To facilitate the integration of data from both water and weather stations, the activity will involve collaboration with the Zambia Meteorological Department (ZMD-Government Gazette Notice, 1992) who represents Zambia in the WMO and other regional collaborations, which provides access to exogenous hydro-met data and forecasts (potentially including downscaled satellite forecasts from EUMETSAT).
7. This support would provide the appropriate technologies for the integration of an end-to-end national system compatible with regional and basin data standards. Given Zambia’s strategic position within the Zambezi, Tanganyika and Congo catchments the system compatibility will provide important inputs to basin level monitoring, water resources planning and allocation, as well as national flood forecasting and early warning systems that are compatible with regional requirements. The absence of a reliable data collection platform undermines the robustness of information on which knowledge is created and decisions are informed. This creates space for sub-optimal processes that undermine economic efficiency and sustainability. For example, information is critical to protecting economic gains by informing the allocation of water in strategic basins, such as the Kafue River where annual irrigation withdrawals are already reaching the limits that can be sustained under the present storage capacity. The absence of reliable, high resolution data has the potential to limit issuance of new water rights and lead to the sub-optimal allocation of water, substantial reductions in power production and economic losses. The project will support efforts to define processes and routines to inform the necessary products and services, systems and
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tools to meet the needs of information users and overall national expectations with respect to hydrological, weather and climate services.
8. The challenge of ensuring financially sustainable systems that can respond to variable government budget allocations is highlighted by the historical contraction of the network. Government has lost staff and financial resources due to a series of austerity measures with the river monitoring network having been reduced from approximately 300 hydrological stations to a current level of 180 stations. While almost all stations are manual with manual water-level measurements recorded three times daily (06h00, 12h00 and 18h00), the department is responsible for 11 automated SADC-HYCOS river-monitoring stations (Hydrological Cycle Observation System). These are designed to automatically report data at 15 minute intervals through satellite connection, and subsequent presentation of data on a password-protected website. However, inadequate resources and the absence of local suppliers to support operation and maintenance has resulted in only three operational stations.
9. Design of the hydro-met network, and the technology employed, shall acknowledge these financial constraints and will allow for an incremental system that is aligned with government’s commitment to guarantee recurrent budget to sustain the network services. The implementation plan and any detailed design work consider an incremental approach that can be scaled to recurrent financial commitments from the Government budget or data revenues to ensure financial sustainability. Socio-economic studies with supporting monitoring systems will be undertaken during implementation to determine the economic impacts and avoided losses associated with hydro-climatic variability to increase awareness among senior officials and strengthen the justifications for recurrent budgets.
10. Partnerships among other institutions are important in the design of the optimal network and increased efforts are needed to integrate a single national network that can respond to the needs of all users. Isolated river monitoring networks are operated and maintained by the vertically integrated power utility, Zesco, that has a largely hydropower based system. Zesco maintains a network with eight stations in the Kafue River catchment and is investing in additional short term monitoring measures in an effort to improve the resolution of inflows to the Kafue Flats. The Zambezi River Authority, the bi-national authority responsible for operation of the Kariba Dam on the Zambezi River, also maintains a river monitoring network in the Zambezi River upstream of the Kariba Dam.
11. The Zambian Meteorological Department (ZMD) monitors weather and climate data to provide weather and climate predictions, products and services for sustainable socio-economic development. The department maintains 41 weather stations that record rainfall, atmospheric pressure, air temperature, humidity, wind speed and direction, solar radiation, and evaporation across the country. The Disaster Management and Mitigation Unit (DMMU) attempts to prevent, mitigate, and in general prepare for disasters, as well as provide relief, rehabilitation, reconstruction, and recovery from disasters and so a central stakeholder in the service chain for water and weather related data products.
12. In 2013, MMEWD (DWA and later WARMA) and ZMD will begin implementation of the “Integrating climate change into water resources monitoring and planning project” financed by the German Government (through the GIZ and KfW, approx. €8 million). The aforementioned project includes support for sections of the monitoring network and ICT infrastructure. The conjunctive implementation of support will be mutually reinforcing for the comprehensive information management system.
13. Within this context, the project will support exploratory partnerships to leverage new technologies and sustainability. For example, the advent of mobile phone technologies provides a potential network on which to facilitate the transfer and dissemination of hydro-meteorological data and information, as well as relay warnings. The expansion of the current
25
mobile network beyond the traditional line of rail (shown below Figure 2.1) introduces new opportunities to facilitate near- and real-time data transmission, as well as a mechanism to incentivize data collectors. Whereas in traditional reporting systems, data has taken up to six months to reach and be incorporated into the headquarters based system, mobile technologies allow for rapid transmission as well as facilitated services, such as payments.
Figure 2.1. Projected expansion of the Mobile Network from the existing line of rail to a more comprehensive national grid system that could support data transmission and early warning systems.
14. Strengthening Water Information Management Systems and Functions. The project will support the comprehensive planning and implementation of hydro-met information systems. In alignment with the integrated water resources information management system in Zambia, the support will help transform data to provide timely and relevant information to the key processes to meet the principles of equity, efficiency and sustainability envisaged under the 2011 Water Resources Management Act. These processes include: Implementation of the National Water Resources Management Plan; Catchment Management Plans; Licensing and Permitting; Monitoring and Compliance; Operations; Dam Safety; Disaster Management; flood forecasting and the process of institutional establishment among others.
15. Information on both the current status (existing measured information) and the projected information providing scenarios on potential social and economic development is needed to inform the planning process. A large array of social, economic, environmental, hydrological, biophysical and spatial information will be sourced in its raw format at the lowest level of possible spatial and temporal disaggregation. The system will be designed to merge these multiple sources and streams of data, aggregate or manipulate it into suitable information that can support the planning process. Combined with a visual interface (such as internet website, e-training/libraries or SMS-services), the information management system will enhance access from the public and interested partners.
16. Raw information will include biophysical data such as: geological, soils, topographical and land use; climatological information such as, rainfall, temperature and wind; hydrological information such as flow and water quality measurements; infrastructural information such as dams and water transfers; census data and cadastral information; and remotely sensed imagery. Processed information would include aspects such as population and economic projections, modeled water availability, estimated water use etc. Ensuring that the processes needed to update this information are embedded into the work flow of the key responsible institutions and further support will be provided under the project from various modeling processes, such as hydrological modeling and water resources system yields. It is anticipated
26
that there will be a spatial and temporal aspect to the majority of data required to implement this process. The system must therefore be able to cater for both spatial and temporal information as well as interface with other basin riparian and regional initiatives.
17. Development of enhanced flood forecasting and early warning systems will be based on the improved hydro-meteorological network and the introduction and consolidation of a library of hydrologic and hydraulic models. This will build on the following characteristics: (a) robust and reliable, it should function under extreme conditions and be addressable from various locations in order to guarantee its use; (b) make use of real-time information, e.g. by using radio communication; (c) make use of a reliable and cost effective communication system; (d) should be ‘exactly right’, not too simple to miss essential components of the flood forecasting procedure, but also avoiding unnecessary complexity that will easily lead to errors or, worse, abandoning of the system; (e) have a clear institutional framework and mandates for both the forecasting procedure itself as well as the dissemination of the forecasts; (f) be easy to update as the conditions in the basin can easily change, e.g. due to the ongoing sedimentation process; (g) be easy to enhance when more stations and / or more sophisticated models or procedures become available; (h) include backup systems that allow for a reliable forecast in case certain modules or stations are not available in extreme conditions; (i) community based input (e.g. nested systems), as well as last mile connectivity in dissemination of the warnings (e.g. cell phone broadcasting and other community mechanisms for response); and be accessible for the public at any point in time.
18. The process of developing the enhanced flood forecasting and early warning systems will be used to strengthen existing partnerships, such as with Zesco, the ZRA and ZMD, as well as regional processes toward an operational basin level Flood Forecasting and Early Warning Strategy for the Zambezi River Basin. This regional initiative intends to build on the national capacities and potentials for water management, flood forecasting and warning. Consolidating the national framework provides an opportunity to introduce modern river and flood forecasting technologies at the basin level, enhancing the basis for transferring such technologies to all eight riparians and regional cooperation. At present, DWA use the flood forecasting software Mike 11 and ZRA uses HEC-RAS; both with continuous training needs for staff. Because there is little or no integration between such forecasting models, both in and outside of Zambia, the activity will support technical solutions that will enhance assimilations that are mutually beneficial for early warning systems.
19. With more accurate monitoring and forecasting, hydrological information products (such as bulletins, operating rules for dams, warnings, inundation mapping etc.) will become more relevant to users at various levels of society. Combining improved hydro-meteorological information further with other social, economic and environmental data, will help strengthen evidence-based decision-making for planning, allocation of water rights, environmental sustainability along with other early warning and adaptation responses. Partnerships with other key government institutions, such as DMMU, agriculture, fisheries and livestock, local government, finance and planning along with sub-national authorities and catchment management agencies will be critical for a functioning, sustainable system.
20. Integrating spatial and remotely sensed data. High resolution methods (i.e. LIDAR etc.) will be used to improve the confidence in the underlying elevation models to inform the modeling for low lying, sensitive areas, such as the Kafue Flats and the Barotse Plains. These will be supplemented through publically available, lower resolution satellite data to create the necessary digital elevation models to inform accurate and reliable assessments of basin level water balances, flood risks, dam safety measures and yield estimates.
21. Development of enhanced spatial and remotely sensed data can provide essential precipitation quantification estimates matched with higher resolution and geographical
27
specificity. Supporting the access to such data will help improve hydrological modeling and meteorological predictions, including flood forecasting and early warning process.
22. Advanced earth observation methods and the products will continue to form an integral part of the information management system. Building on partnerships, such as the successful collaboration with the European Space Agency initiated during preparation, will provide important opportunities to support on the ground initiatives. Support will continue to introduce and improve on the understanding of new earth observation techniques and source data relevant for water management in Zambia. Programs integrating earth observation technology have been used to improve the mapping of water bodies, supporting physical inventories intended to enhance the registration of infrastructure, improve on water allocation estimates and strengthen the monitoring and management of water rights. Further development of such techniques will be directed toward understanding surface energy balance based techniques as an input into water balance models and monitoring allocation in key basins, as well as integrating selected methods for drought monitoring.
23. Technical assistance and capacity building support from the European Space Agency will form an integral part of Component A under the project. The ESA is well positioned to provide training and technical assistance to the Department of Water Affairs with the goal of using earth observation technology to bolster water resources management capacity. To accomplish this, the Bank will collaborate with ESA and the Department of Water Affairs to design an extended training program focused on earth observation techniques. The training program will provide for bi-annual trainings for the duration of the project and will begin by focusing on two specific objectives.
24. The first immediate objective of the training program will be to train government personnel to use remotely sensed imagery to identify small water bodies and to validate those remote observations with in situ techniques. As a result, the government will be able to complete the inventory of small water bodies and associated infrastructure, a key responsibility under the 2011 Act.
25. The second immediate objective will be to support the development of flood-risk maps across the country using optical and radar imagery. One component of this activity will be procurement of LIDAR elevation data for priority areas vulnerable to flooding. The LIDAR data is a crucial input into the hydraulic models necessary to develop predictive flood risk maps. Although these are the two immediate areas of technical support from the ESA to the government, the content and topics of the training will adapt to the changing needs and capacities of the government over the course of the project.
26. Catchment/Basin-level water resources development. The project will assist in formulation of a National Water Resources Strategy and Plan, as envisaged under the Act, to support the management, use, development, conservation, preservation, protection, control and regulation of water resources. The national water resources strategy and plan will take into account the resource quality objectives; set out the principles, objectives, procedures and institutional arrangements for the management, use, development, conservation, preservation, control and regulation of water resources within each catchment; contain water allocation plans which set out principles for allocating water, taking into account the reserve; provide mechanisms and facilities for enabling the public and communities, in particular women, to participate in managing the water resources within each catchment; and generally contain measures to avert environmental degradation, such as desertification, deforestation, erosion, sedimentation, toxic waste and the aftermath of the use of unsuitable agro-chemical products.
27. Catchment plans will be supported as part of the process for operationalization of the Water Resources Management Act to ensure the optimum management, development and utilization of Zambia’s water resources. While the Act provides for the process to be
28
followed in preparation of these plans, the contents are to be prescribed by the responsible Minister, on recommendation from the Authority, by statutory instrument. The project will support a process of determining appropriate content and structure of catchment management plans and pilot these in the transitional institutional period while the Department, the Authority, Catchment Management structures and other institutions envisaged under the Act are established.
28. These will be supported by a number of strategic assessments to strengthen the platform for investments in strategic basins, such as the Kafue and Chalimbana rivers, along with the sustainability of the proposed institutional models provided for under the Act and to inform the development of guidelines, reports, and other requirements under the Act.
29. In the Chalimbana River sub-catchment, numerous interventions have been put in place over a series of years to satisfy all users and ensure effective allocation. In the upstream portion, several water users take water directly from the source. This is followed, further downstream, by several farmers with hydraulic structure of different sizes and capacities. Finally, in the lower portion of the river, local communities use water mainly for domestic and subsistence purposes. Local communities require water throughout the year, but in the winter months the flow is too low to satisfy their needs due to upstream usage. The holders of upstream flow rights use their rights throughout the year, while the storage rights are generally used in the summer months for use during winter. Part of the challenge in the absence of a comprehensive water balance has been a failure to take into account the seasonal impacts in the allocations. In the late 1990s, all water rights were cancelled to allow a detailed technical investigation of water supply and demand in the area and a reallocation according to the results of the investigation. The study determined that flow rights could not be sustained in the basin, so all flow rights were cancelled and only storage rights were allowed. However, a court order overturned this decision and flow rights had to be reinstated.
30. In the Kafue River catchment annual withdrawals of water for irrigation in the Kafue River are already reaching the limits that can be sustained under the present storage capacity. The catchment is home to 40 percent of the national population, a majority of the mining investments and economic activity, and roughly 80 percent of the country’s total irrigated areas. However, in the absence of increased capacity further irrigation expansion would lead to the sub-optimal allocation of water, substantial reductions in power production and economic losses for Zambia. The river also accounts for more than half of the country’s hydropower production, which is expected to increase to over 70 percent with completion of the Itezhi-Tezhi (ITT) and Kafue Gorge Lower (KGL) hydropower plants. While more than 80 percent of the current domestic water supplies are derived from the Kafue River, these different sectoral water demands, coupled with significant water quality concerns and associated health risks, are imposing increasing constraints on economic growth and there is a need to optimize the economic allocation of water and explore alternative sources of domestic supplies.
31. The increasing demand on water resources from irrigation and hydropower production in the Kafue River, coupled with the need for environmental protection, requires a comprehensive and rigorous system for determining the assessment and allocation of water rights. An analysis of remote sensing data of the area under irrigation in the Kafue River basin carried out during preparation estimates this to be almost 50,000 ha. The remote sensing data reveals an additional 15,000 ha under irrigation when compared with the total area irrigated reflected in the allocation of water rights for the catchment. Of this, roughly 41,000 ha (88 percent) is based on surface water irrigation with an additional 9,000 ha (22 percent) irrigated through ground water abstractions. Eighty percent of the irrigation is in the Kafue Flats sub-catchment and 66 percent of the total irrigated area is under sugar cane
29
production. The limit that can be sustained under the present level of dam development is already being reached. If even only a part of the potential 27,700 ha of new irrigation is developed through withdrawals from the Kafue River, or from groundwater which feeds the river or its tributaries, there is a high risk of disruptions both to irrigation and hydropower development downstream during dry years, unless substantial additional storage is constructed.
32. There is a need to develop a water balance and undertake further developmental studies to determine the capacity of the system to support further increases in water allocations. Despite numerous studies over the years, the hydraulic characteristics of the Kafue Flats make both measurements and water balance calculations difficult. A naturally complicated hydrology is further complicated by the challenges associated with behavior of the swampy areas, creating large difficult to determine evaporation losses, and the influences through the Itezhi-Tezhi and Kafue Gorge reservoirs. Improving the data to inform and understand this complexity in modeling the flow between ITT and KGU and the Kafue Flats is increasingly important to understand to ensure the model results are harmonious with the observed data. Many of the hydrometric stations have closed down over the years and of the approximately 120 hydrometric stations in the Kafue Catchment area, there are now less than 32 reported to be operational. This lack of data is further complicated by the lack of high resolution topographic data, additional measurements on inflows into the Kafue Flats through both surface water runoff and groundwater linkages from the Lukanga swamps. The project will support efforts to improving the understanding the complex water balance in the Kafue catchment, which will be critical to ensuring economic efficiency of water allocation and securing long term sustainable economic growth.
33. National Managed Groundwater Development Program. The previous governing legislation for water resources in Zambia had no provisions for the regulation of groundwater resources. The absence of such legislative provisions has introduced a number of complex management options which have been addressed through the drafting of the Water Resources Management Act. Support to the implementation of these measures is envisaged under the project. Significant developments have taken place in the Kafue catchment, with an estimated 9,000 ha of the total irrigated area supported through ground water abstractions This is equivalent to roughly 22 percent of the roughly 50,000 ha estimated to be under irrigation. The lack of information relating to the level of groundwater development and utilization further complicates the determination of an accurate water balance for the Kafue Flats.
34. The challenges of groundwater management are further highlighted by the management of groundwater in Lusaka. The carbonate and schist aquifers within and around the city are amongst the most productive, providing about 50% of the city’s water supply. However, groundwater pollution emanating from the presence of on-site sanitation in most parts of the city poses a major threat to water quality and undermine the level of assurance needed to sustain groundwater utilization. Encroachment of urban development around the production boreholes and challenges in delineating and enforcing recharge protection ones has undermined the ability to ensure a sustained supply of suitable quality. This has necessitated future development of the primary source of water for the city of Lusaka to look toward further development of the Kafue catchment, with higher capital investment costs and associated operation and maintenance, increasing competition among users within the Kafue Flats.
35. In response to the water resources development challenges and the management opportunities provided through the Water Resources Act, the Groundwater Section of the Ministry has developed a long term program entitled the National Managed Groundwater Development Programme (NMGDP). The program covers 2011-2030 and will be updated
30
through 3-5 years implementation plans, the first of which will be supported under the project. The NMGDP includes the following components: i) Policy and regulation; ii) Capacity building; iii) Resource exploration and mapping; iv) Groundwater resource development; v) Transboundary aquifers and their management; vi) Groundwater related climate change adaptation; vii) Research and development; viii) Information Management Systems; and ix) Cross cutting issues.
36. Improved policy and legislative measures would be supported to strengthen the framework for groundwater management and development. The Water Resources Management Act introduced in 2011 outlines the first legislative provisions to specifically address groundwater resources. The provisions of the Act confer substantial responsibilities on the WARMA to ensure the protection of groundwater by: i) encouraging the development of sustainable practices that do not degrade ground water; ii) specifying measures necessary to mitigate saline intrusion into aquifers; iii) preventing the pollution of aquifers through the regulation of toxic substances that permeate the ground; iv) recommending the declaration of protected areas around groundwater recharge areas and abstraction sources; and, v) promoting measures to improve the safety and integrity of boreholes. This will include a review of national policies, preparation of guidelines, procedures and regulations to support enforcement of the Act.
37. Integrated information management systems are also required to ensure a register of boreholes and compilation of related information, including (i) the strata passed through; and (ii) the levels at which water was struck and subsequently rests; particulars of any test made, before completion or abandonment of the work, of the flow of water, specifying the rate of flow throughout the test; the duration of the test; where practicable, the water levels during the test and afterwards until the water returns to its natural level; and any other information as the Authority, the catchment council or sub-catchment council may request.
38. National Allocation Framework and Enhancing Water Resources Planning. Under the Water Resources Management Act 2010, a revised approach will be adopted for the Water Allocation system for Zambia. This approach will involve three key levels. The first level, will be the development and establishment of a national allocation plan that takes into account a) overall current water use and availability; b) International Water Allocations and any allocation required for national level priority uses such as hydropower; and c) the criteria of water allocation as per the Water Resources Management Act. The second level will be the development of sub-catchment allocation plans, at catchment level, collated into Catchment Management Plans. Catchment categories will be established in order to align the level of allocation planning with catchment conditions. Stressed catchments will receive the greatest attention. The third level will involve actual authorization of water use as guided by established catchment categories. Three categories have been envisioned, with the first category being the one requiring the least attention. The second category will require more attention than that first with respect to the increases in water allocation due to growing demands. The third will be the stressed category that will involve the task of reducing allocations to sustainable levels. The Ministry of Mines Energy and Water Development and the Department of Water Resources will be responsible for the level one activity. Interventions at the second level and third levels will be the responsibility of Catchment Management Authorities. The Water Resources Management Act details an expanded organizational structure of Water Management allocation and authorization. These are illustrated in Figure 2.2, representing the various roles and functions in regard to water allocation and Figure 2.3 reflecting the water allocation planning and authorization process.
Figure 2.2: Roles and responsibilities for water allocation under the 2011 WRM Act
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32
Figure 1.3: Outline of the allocation planning and authorization process
National
Allocat ion Plan
Determine water
availability and
current use
Determine international and priority allocations
Set criteria I principles fo r
allocation
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Sub-catchment Allocation Plan
Captu re water availability, current use, environmental requirements; Identify areas for p rotected area status Set abstraction cap; Define variability rules Water storage works Consultation
Identify areas for protected area status Define allocation priorities and
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Set abstraction cap --y
Determine allocations per sector/ sub-catchment
_Define variability rules J Identify areas for protected area status Define allocation priorities and environmental flows Assess allocable water Assess current and future water demand by sectors Assess relative supply and demand Determine options for closing supply gap
and identify storage works Set abstraction cap Determine allocation per sector/sub
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Approve permit applications; Site visit generally not necessary except for applications in protected areas and large hydropower
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catchment priorities; Site visits needed o n larger applications Monitoring of water use important Large hydropower applications require deta iled
e-flow s assessment
Variat ion of permits to reduce water use according to priorities;
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Component B: Water Resources Development (IDA contribution US$30m)
39. The objective of this component is to address the infrastructure deficit through support to: (a) development and rehabilitation of small scale water resources infrastructure, such as small dams, weirs, gabions, and other small civil works intended to retain water, reduce erosion, enhance recharge and ensure productive application; (b) updating and climate screening the 1995 Dam Development Master Plan to identify a series of priority investments for further preparation; (c) preparation of studies in support of a proposed pipeline of future medium and large scale water resource investments; (d) supporting environmental and social assessments for future potential water resource investments; (e) carrying out community mobilization and sensitization; (f) development and implementation of a national dam safety monitoring program; and (g) development and implementation of a national managed groundwater development program. This will be supported through the provision of: i) consulting services and technical assistance for the planning for water resources infrastructure, along with the preparation of environmental and social safeguards instruments; ii) works required for construction of infrastructure; iii) goods needed to support implementation and, iv) operating expenses associated with workshops, training, community mobilization and capacity enhancement initiatives.
40. The project proposes to support Government’s efforts to address the infrastructure deficit by supporting investments at three levels; i) small scale community level infrastructure, ii) studies to advance pipeline of medium size productive assets; and, iii) preparation of a longer term, large dam development plan. Zambia has been categorized as a county with economic water scarcity, where the human, institutional, and financial capital currently limit access to water even though water in nature is available locally to meet human demands (International Water Management Institute, 2007). The water resources of the country are largely undeveloped, with available freshwater supplies 60 times larger than the current levels of withdrawal for economic consumption. This is three times lower than the average per capita withdrawals for developing countries and lower than those for sub- Saharan Africa. As part of the “cereal-root” livelihood zone11, livelihoods are characterized by: (i) a high prevalence of rural poverty; (ii) water as the principle binding constraint for agricultural production and for other rural livelihood activities; and importantly, (iii) a high potential for water interventions in terms of physical water control because of the availability of water for additional utilization.
41. Construction and rehabilitation of small scale water resources infrastructure to support community based sustainable management and development of local watersheds and groundwater resources in the poorest areas is crucial for the sustainability of local livelihoods and their adaptation to climate variability. The 2011 Water Resources Management Act includes provisions specifically designed to address the infrastructure deficient and encourage the promotion of small scale water resources infrastructure. These are defined under the Act to include structures which are capable of diverting or storing water and have a vertical height of more than 10 meters but less than fifteen meters, or are capable of storing more than 500,000 but less than 1 million cubic meters of water at full supply level. Investments supported under the project will be restricted to those less than 10 meters in height or store less than 1 million cubic meters of water at full supply level. The distribution of small-scale water resources infrastructure supported will be national with the development and application of remote sensing and earth observation techniques helping to identify any potential concentration of investments that could result in possible cumulative impacts.
11 Water and the Rural Poor: Interventions for Improving the Livelihoods in sub-Saharan Africa FAO/IFAD 2008.
34
42. Planning of construction and rehabilitation of small dams is done within the Government planning systems directed through the development of District Plans and Provincial Plans. The public expenditure review undertaken during project preparation identified at least 17 programs that spend on activities related to small dams. The Ministry of (Mines) Energy and Water Development is the main head spender (54% of total), Office of the President, Southern Province (20%), and Ministry of Agriculture and Cooperatives (14%). The Department of Water Affairs is the largest spender with 66% of total; Head Quarter, Office of the President, Southern Province accounts for 18%, and Agriculture Department 14%.
43. Several efforts have been made to carry out detailed inventories of the hydraulic infrastructure in Zambia and the Department of Water Affairs estimates that there are between 2,000 and 3,000 small (< 8 meters) and medium (8-15 meters) dams. More than 75% of these are communally owned and constructed to perform various functions, including town water supply; irrigation use; livestock watering; fish farming; and hydro power. The Water Board database of applications for dams and other hydrological structures has the first entries in 1950 but currently only lists 917 applications between 1950 and 200912. The failure of the current system to capture information relating to the location, status and application of water resources infrastructure nationally presents a number of risks, including loss of revenues for the sector, under-valuation of economic contributions, inability to identify potential negative cumulative impacts and undermining strategic planning efforts.
44. A method developed in collaboration with the European Space Agency during preparation using earth observation techniques is intended to help strengthen the current system. The earth observations provide a quick mechanism to identify small water bodies that are then verified through physical verification on the ground. This is coupled with an inventory of more detailed information on the type, size, application and incomes, ownership existing of required water permits and revenues. A pilot of the methodology developed during preparation estimated the number of reservoirs with a minimum mapping unit of 0.5 Ha at over 1000 for Southern Province alone. A series of activities included under Component A will build on the pilot methodology with the goal of finalizing the Department of Water Affairs’ small waterbody and infrastructure inventory. This inventory will ultimately guide the government’s investment in small dams under the project.
45. Discrepancies in the estimates of small scale water resources infrastructure in Zambia arise from the fact that historically there has been no uniform planning procedure for construction or rehabilitation of small dams, and no overall responsible line agency. Prior to 1987, the Department of Agriculture (DoA) and the Department of Water Affairs (DWA) fell under the same Ministry of Rural Development. However, after 1987 when DoA came under MACO and DWA under MEWD, it has become more difficult to coordinate and keep track of new dam construction and rehabilitation works. The Water Resources Management Act adopted in 2011 clarifies the roles and responsibilities but remains to be fully tested pending operationalization.
46. To support the process of identification, design, construction and management, a series of process oriented manuals is under preparation. These provide national standards that will be applied to the National Water Resources Development Fund provided for under the Water Resources Management Act. These are based on existing processes and procedures and the Ministry has convened a task force of line ministries involved in the development of small scale water resources development to coordinate developments.
12 Based on analysis of Water Board’s database of applications.
35
47. Investments in small scale water resources development will include small dams, weirs, gabions, and other small civil works intended to retain water, reduce erosion and enhance recharge, along with measures to enhance productive application of water to enhancing community livelihoods and promote income-generating activities. Using the guidelines and checklists established for site selection and prioritization, off-the-shelve lists of proposed new small dams or dams for rehabilitation will be scrutinized and field verifications and rapid appraisals carried out to consolidate potential sites, demands, and stakeholders; assess water and land availability, and identify risks, including environmental and social impacts.
48. The small scale water resources infrastructure is to be developed in accordance with the FAO Manual on Small Earth Dams. This provides the foundations for further development and localization of emerging innovative approaches to small scale water resources infrastructure, such as: (i) community driven water resources management and development; (ii) public awareness on infrastructure development and operation and management requirements; (iii) economic analysis and multi-purpose optimization, v) financial mobilization and partnership development; (v) integration of climate change issues, (vi) environmental management and social equity aspects; and (vii) impact monitoring and knowledge management. The exact number of dams to be supported will depend on available funding, dam size and site conditions. Site selection will be based on 1) local community demand; 2) rating against the national criteria for site selection to be established with support from the African Water Facility; 3) a competitive process whereby sites are prioritized.
49. The construction process will adopt Labor Intensive Approaches that have been tested and applied in similar operations in the region and social action programs in Zambia, empowering local artisans, service providers and contractors, as well as providing cash injection in the local economies (to these small enterprises and as payment for community labor) that are essential in starting up productive activities.
50. The Dam Development Master Plan (DDMP) will be updated to identify a series of priority investments for further preparation. This will be based on a review and update of the 1995 National Water Resources Master Plan which outlined a “Dam Development Plan”, identifying 31 potential dam sites for further exploration. The Dam Development Plan was based on preparation of basic planning data for selected points (i.e. catchment area, reservoir surface area-storage curve, dam embankment volume etc.) and provided preliminary designs based on the study of topographic maps and site visits with all proposed developments assumed to be based on a rockfill type dam with center core. Limited supporting data was analyzed in terms of water supply and demand, nor in relation to economic
51. The Master Plan prioritized dams based on purely technical characteristics regarding their water storage capacities and simplified discharge estimates. The study divided the dams into groups of priority AA (21 dam locations and 2 intakes), priority A (26 dams) and priority B (47) and priority C (40). Out of these 136 locations, 31 were prioritized for development, with 29 sites subsequently selected for a study of preliminary layout design. These range in height from 27 to 56m and total storage capacity from 10 Mm3 to 2,236 Mm3. The IWRM&WE Implementation Plan further provides a series of Project Concept Notes and Fact Sheets based on identified infrastructure investment opportunities.
52. A reassessment and prioritization of these projects is needed to support development of further studies that could facilitate specific investments. Support would allow for additional data collection (hydrology, geotechnical and mapping) and preparatory work (zoning, supporting
36
infrastructure) to be undertaken. The updated DDMP will build on the other national programs and master plans that have been prepared in the interim in order to create a national, multi-sectoral hydraulic infrastructure development plan. This will include six building blocks, including (1) the 1995 JICA Master Plan; (2) National Irrigation Plan; (3) National Irrigation Policy; (4) Power System Master Plan; (5) Rural Electrification Master Plan; and, (6) Zambia Integrated Water Resource Management and Water Efficiency Implementation Plan.
53. The DDMP is planned to be implemented in several stages
a. An update to reflect changes in land use, hydrology and costs. As the previous study was done based on maps and existing aerial photographs, the updated study should include site visits to strengthen the understanding of each project.
b.Additional project sites should be identified where available. c. Basic hydrological factors for each site should be given; average inflow, a duration
curve, seasonal variability and low flow estimates. d.Hydropower potential for each site should be estimated e. Proximity to transmission lines, both existing and planned. f. Rural/urban water use should be estimated at each site, coupled with projections for the
next two decades. g.Cost estimates for each dam should be updated, using both recent local and international
projects as a base. Costs estimates for hydropower, irrigation and water supply should be included.
h.The updated, expanded list of medium to large dams should be divided into three categories; a) hydropower b) agriculture, and c) multipurpose (hydropower plus irrigation, water supply etc.).
54. A National Dam Safety Monitoring Program (DSP) will be initiated in support of the provisions of the 2011 Water Resources Management Act and the functions conferred on the Water Resources Management Authority. All dams are to be assessed on basis of their risk and consequences of dam failure. The assessment will outline any rehabilitation or remedial measures required and the preparation of a dam safety monitoring program which would be used to meet the provisions contained within the Water Resources Management Act. Remedial programs would be proposed for any of those at risk. This could include the detailed investigations associated with the first phase geotechnical investigations of the Itezhi-Tezhi Dam.
55. There will be a distinction in consequences of a dam failure, and the level of control applied. Large dams (i.e. higher than 15 meters) with major implications of dam failure (fatalities, destruction of vital infrastructure) have stricter regulations than small dams with no or insignificant consequences of dam failure. The risk is assessed on basis of the structural soundness of the dams, their operation and maintenance in regards to the current climate. Assessment of consequences of dam failure in existing dams will be done through establishing dynamic hydraulic modeling of all rivers where major dams exist. The dam failures will then be modeled within these, combined with maps which results can be used for quantification of dam failure consequence and evacuation planning. The models will be the property of Government and will be updated whenever existing dams are modified, new dams are built or boundary conditions change (new bridges are constructed etc.).
56. The Scope of Work needed to establish the program would include the following:
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1. Institutional and Legal Framework for Dam Safety a. Assess the existing national framework and practices b. Review alternate models applied internationally
2. Draft of recommended practices a. Regulations for new structures b. Competences required c. Inspection framework of existing structures and data updates
i. Intervals (inspections every year, major inspections every 5 years) ii. Implementing parties (independent consultants etc.)
iii. Data updates (revision of hydrology, structural integrity etc.)
57. The project would support preparation of studies and supporting environmental and social assessments for future potential water resource investments. These will be based on an initial scoping study to update the original 1995 Dam Development Plan under the Master Plan, screen and prioritize the long list. Following prioritization, more detailed evaluation and supporting studies would be carried out for up to five proposed sites resulting in the preparation of Bankable documents for priority projects including: i) agricultural farm blocks; ii) irrigation dams; iii) water supply storage; iv) multi-purpose dams; and, iv) hydropower where appropriate.
58. The National Managed Groundwater Development Program supported under the project is based on four priority investment areas selected for introduction of the development measures. These include improved regulatory measures, including permitting and licenses of groundwater abstractions in the central Lusaka area, aimed at controlling pollution and promoting conjunctive use with surface waters for domestic supplies. In the northern and southern areas of Lusaka, improved groundwater use will be supported as one of a number of possible climate change adaptation measures in partnership with commercial utility, local government structures and farmers. In the Copperbelt, a focus on permitting and licenses will help to control pollution, manage the process of mine dewatering and enhance the possibilities for conjunctive utilization for urban water supplies. Finally, a series of strategic trans-boundary aquifers investigations will be supported in the Tanganyika and Zambezi river basins. These key activities are summarized in the following:
59. Lusaka Central investments would be focused on improving the security of water supplies associated with protection and improved development of the Shantumbu Well Field. The
Urban
water
supply
Small town
water supply
Rural water
supply
Groundwater
irrigation
Mining
water
supply
Commerical
water
supply
Lusaka Central Kafue X X
North/South Lusaka Kafue X X X X
Copper Belt area Kafue X X X X
Tanganyiika river basin Tanganyika X X X
Priority area River Basin
Groundwater development focus
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carbonate and schist aquifers within and around the City of Lusaka are amongst the most productive and highly exploited aquifers in Zambia, providing about 50% of the water supplied to the city of Lusaka. However, groundwater pollution emanating from the presence of on-site sanitation, a lack of enforcement associated with groundwater protection zones and rapidly increasing urban development threaten the contributions of cost effective groundwater sources of supply for the city.
60. The enactment of the new legal framework (Water Resources Management Act, 2011), which requires protection and management of groundwater to assure domestic water supplies. To consolidate the previous studies and support effective groundwater management around Lusaka area, the MMEWD has been implementing the Groundwater Resources Study Project for Lusaka (GReSP) through the Department of Water Affairs (DWA). This project is part of the German-Zambian “Water Sector Reform Program” supported by the Federal Ministry for Economic Cooperation and Development (BMZ), with the Federal Institute for Geosciences and Natural Resources (BGR) as the implementing agency. Building on this program, the Ministry has been prompted to explore the development of new well fields for the City of Lusaka.
61. The activities would support an initial assessment of the groundwater potential of aquifers in Shantumbu area in terms of quality and quantity through guided exploratory drilling of pilot production and monitoring boreholes. These will be used to inform development of detailed plans for the development of Shantumbu Well Field, including groundwater protection and regulation through zoning of well fields and conservation of the natural environment, design of productive wells and their distribution, along with measures to enhance sustainable groundwater utilization, through integrated water resources development and management, related infrastructure and improved capacity on aquifer protection and sustainable management among Lusaka Water and Local Authorities.
62. Development of the Shantumbu Well Field would be implemented in two phases, with Phase I dedicated to identification and demarcation of the well fields, and Phase II focused on well field development and management. Both phases would be carried out with the involvement of the Local Authorities, Town and Country Planning, Lusaka Water and Sewerage Company, Lands Department, Survey Department and other relevant government departments.
63. Other groundwater measures prioritized for development include support to small town and rural water supply in rural areas surrounding Lusaka. Enhancing measures to improve the conjunctive opportunities associated with mining sector, including improved control of dewatering and additional environmental protection measures to limit the potential impact on domestic water supply and groundwater ecosystems. This would also include monitoring along with the possibility of financial mechanisms for mitigation measures. A series of studies are also proposed to improve the knowledge foundations associated with transboundary aquifers, such as in the sandy western regions and the Tanganyika river basin.
Component C: Institutional Support (IDA contribution US$12m)
64. The objective of this component is to strengthen the institutional capacity for water resources management and development, including both surface and ground water. The component will provide support to: (a) support for the set-up of institutions established under the Water Resources Management Act and implementation of their functions; (b) development of rules, plans, strategies and carrying out of studies, as needed, for the implementation of the Water Resources Management Act to ensure the sustainable and equitable development of water
39
resources; (c) building capacity for negotiations, conflict resolution, monitoring and compliance with international water instruments; (d) enhancing inter-agency coordination; and (e) financing of costs associated with project management, coordination and oversight. These activities will be supported through the provision of: i) consultants services and technical assistance; ii) goods and equipment, including computers, vehicles and office equipment; iii) training and capacity building activities; and, iv) incremental operating costs to support the National Water Management Authority and departments within the Ministry associated with institutional transition.
65. The Water Resources Management Act, No. 21 of 2011, provides for the establishment of new institutions within the water sector aimed at introducing a decentralized, autonomous and catchment based approach to integrated water resources management. Specifically, the Act provides for dissolution of the existing Water Board and the Department of Water Affairs (DWA) and the establishment of a Water Resources Management Authority (WARMA), an autonomous statutory body, and a Department of Water Resources (DWR), within the Ministry of Mines, Energy and Water Development. This will be achieved by providing appropriate organization structures, salary grading structures, and optimum staffing levels, for water sector institutions that will effectively support the implementation of the National Water Policy (2010) and the key principles set out in the Water Resources Management Act (2011).
66. The reforms represent the next generation of restructuring within the water sector, aimed at improving the management of water resources to enable more Zambians access both surface and groundwater for multipurpose use and thereby effectively contribute to the social and economic development of the country. The WARMA was formally established with operationalization of the Act on October 11, 2012. However, a transitional period of 15 months has been recommended to allow for the establishment of the WARMA and transition to the DWR.
67. The Department of Water Resources will replace the existing Department of Water Affairs. It will be responsible for providing sector guidance and analysis, policy formulation framework and advice for the Ministry to effectively undertake planning for the development and management of the international and national waters as well as monitoring and co-ordination of water sector programs. The DWR will comprise three core sections: i) Water Research and Monitoring Section; ii) Water Infrastructure Section; and, iii) International Waters Section, supported by 26 staff. This is contrast to the current functions and 1,033 staff currently scheduled within the existing DWA shown below.
40
DIRECTOR GSS/1
ASSISTANT DIRECTOR (Ground Resources Section)
GSS/3
PRINCIPAL HYDROGEOLOGIST (Groundwater Research &
Monitoring Unit)
SENIOR HYDROGEOLOGIST (Groundwater Research &
Monitoring Unit)
SURVEY HANDMAN: 8
PRINCIPAL HYDROGEOLOGIST (Groundwater Development)
‐ RIG DRIVERS 20 ‐ CARGO TRUCK DRIVERS 20 ‐ COMPRESSOR TRUCK DRIVER 20 ‐ DRILL CHARGE HAND CDE/SP 19 ‐ DRILL CHARGE CHARGE HAND CDE 15 ‐ DRILL CHARE HAND CDE 20 ‐ WATER TANKER DRIVERS 8
ASSISTANT DIRECTOR
(Surface Water Resources Section) GSS/3
PRINCIPAL HYDROLOGIST
(Surface Water Resources Research and Monitoring Unit)
GSS/4
SENIOR HYDROLOGIST
(Surface Water Resources Research and Monitoring Unit)
GSS/6
PRINCIPAL WATER ENGINEER
(Surface Water Development Unit)
SENIOR WATER ENGINEER (Surface Water Development
Unit)
ADMINISTRATION GSS/7
ASSISTANT DIRECTOR
(WATER Resources & Management Section)
GSS/3
PRINCIPAL HYDRO INFORMATICS OFFICER (Informatics Unit )
GSS/4
SENIOR HYDRO INFORMATICS OFFICER
(Informatics Unit)
LIBRARY
ASSISTANT GSS/7
HYDRO INFORMATICS ASSISTANT
PRINCIPAL WATER RESOURCES ENGINEER (Water Rights and
Management Unit) GSS/4
SENIOR WATER RESOURCES
ENGINEER (Water Rights and Management Unit)
GSS/4
TRACER (GSS 12)
PRINCIPAL WATER QUALITY OFFICER
(Water Quality Unit) GSS/4
SENIOR WATER QUALITY OFFICER
(Water Quality Unit) GSS/4
WATER QUALITY
LABORATORY TECHNICIAN (GSS/7)
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PROVINCIAL WATER OFFICER
SENIOR HYDROGEOLOGIST
(GSS 06)
HYDROGEOLOGIST (GSS 08)
SENIOR DRILLER (GSS 11)
DRILLER (GSS 12)
SENIOR HYDROLOGIST
(GSS 06)
HYDRLOGIST (GSS 08)
ENGINEERING ASSISTANT HYDRO
SECTION (GSS 11)
GAUGE READER (GSS 15)
SENIOR WATER ENGINEET (GSS 06)
WATER ENGINEER (GSS 08)
MECHANICAL SUPERINTENDENT
(GSS 12)
WELDER (GSS 13)
ELECTRICAL TECHNICIAN (GSS 12)
MECHANIC/ AUTO ELECTRCIAN (GSS 13)
DRIVER
DRAUGHTSMAN (GSS 11)
TRACER (GSS 12)
WATER RESOURCES
ENGINEER (GSS 08)
INFORMATICS OFFICER (GSS 08)
WATER QUALITY
OFFICER (GSS 08)
LABORATORY TECHNICIAN (GSS 11)
EXECUTIVE OFFICER (GSS 11)
REGISTRY CLERK (GSS 14)
DRIVER (GSS 15)
STORES CLERK (GSS 14)
TYPIST (GSS 13)
ACCOUNTS ASSISTANT (GSS 12)
OFFICE ORDERLY
(GSS 15)
DISTRICT WATER OFFICER (GSS 07_
WATER RESOURCES
ASSISTANT (GSS 11) TYPIST
(GSS 11)
CDE’S (GSS 15)
ENGINEERING ASSISTANT (GSS 11)
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68. The Department of Water Resources will be responsible for issues of water resources planning, international waters, co-ordination, and monitoring and; implementation of national water resources management plans. The following are the preliminary functions of the DRW:
a) Establish national mechanisms for the management of shared water resources, guide its development and provide advice to enable the Ministry assess the impact and select the most appropriate options;
b) Facilitate, coordinate and ensure stakeholder participation in the development and management of both in-land and international water resources based on national water plans;
c) Undertake socio-economic analysis of catchment and sub-catchment water development and management programs and projects;
d) Monitor, evaluate and assess the performance of the WARMA and the water sector in relation to the established sector objectives, and strategies and resources committed;
e) Co-ordinate technical assistance from international and regional cooperating partners in the preparation of catchment water development programs and budget support from the Ministry;
f) Maintain an integrated water resources management information system that will support data sharing, stakeholder participation in data collection, analysis of policy performance, catchment project monitoring and evaluation;
g) Facilitate appropriate capacity building for catchment staff for negotiations on shared water resources agreements, addressing of environmental issues related to project preparation, monitoring and implementation;
h) Facilitate liaison with international co-operating partners and regional organizations on catchment water development and management programs; and
i) Provide guidance on the implementation of emergency water development programs linked to droughts and floods, and other scenarios.
69. International Waters would be supported through the provision of consultant services, training and incremental operating costs, and equipment. Zambia’s geographic location creates a strategic imperative to ensure effective mechanisms are implemented to safeguard national interests. The implementation of the National Water Policy (2010) and the Water Resources Management Act of 2011 entails focused development and management of internationally shared water bodies. Consequently the need to enhance regional cooperation, flood and drought management, resource evaluation based on information readily available on water aspects of regional importance. The International Water Section will be a central point for the coordination, compilation and dissemination of all relevant information on shared waters and responsibility for transboundary water development and management negotiations.
70. Activities would support development of the International Water Section in the management of international water issues and to initiate strategic programs aimed at maximizing Zambia’s benefits in her cooperative endeavors with other riparian states of the Congo and Zambezi River Basins. This will support realization of the functions envisaged under the Act in accordance with prevailing policy frameworks, such as those provided by the UN Convention, the SADC Protocol and individual basin agreements. This will include support to the following functions:
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a. Maintaining transboundary water information management system which will support policy analysis, performance assessment and monitoring of regional water projects;
b. Promote and facilitate transboundary water infrastructure development and water resources management in accordance with the revised SADC Protocol on Shared Watercourses and other international instruments;
c. Contribute to the formulation and revision of regional water policy, cooperation and development plans for accelerated regional economic integration, poverty reduction, food security and wealth creation;
d. Advising Government regarding entering into bilateral or multilateral agreements with any foreign state or governments on shared water resources;
e. Provide technical advice on issues regarding regional floods and droughts (revolving around preparedness and management of emergency situations);
f. Promote stakeholder participation, as part of Government's decision support system, in the management of shared water resources;
g. Facilitate the exchange of information between riparian states and Zambia through the Ministry Headquarters, its departments and stakeholders;
h. Provide advice on the domestication of international instruments to which Zambia is party;
i. Establishment of mechanisms for the sharing of appropriate knowledge and technology for the collection of data and the implementation of planned development;
j. Promote establishment of research and development programs at sub-regional, regional and international levels to enhance water resources assessment and development;
k. Providing prior generated transboundary water statistics; l. Establish national mechanisms for dispute resolution on shared water resources; m. Producing profiles on catchment/sub-catchment as well as transboundary projects
in the water sector.
71. Addressing issues associated with the management and development of international waters requires that the Government maintain a core technical expertise that can inform diplomatic channels and the politic process. This will become increasingly important as development increases and competition for scarce water resources becomes more acute. The Government will need to ensure institutional mechanisms that can integrate across various disciplines to ensure the political and diplomatic processes are informed by sound technical information and advice. Institutional measures to establish the International Water Section will be accompanied by a comprehensive training program with an initial focus in the fields of:
(a) Conflict management; (b) Arbitration and mediation; (c) Water resources management; (d) International relations and law; (e) Water Resources Management; (f) International environment law; and (g) International water law and diplomacy.
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Political
Diplomatic
Technical
72. Within this context is has been proposed that the international waters elements within the Government be reflected by the following:
73. Technical: The Department of Water Affairs is tasked with effective planning, development, and management of the nation’s water resources. The International Waters Unit would be responsible for formulating and coordinating policies related to transboundary waters; implementation of international and regional protocol and agreements; carrying out studies on transboundary water resources planning; and, providing technical advice on transboundary waters issues to relevant stakeholders.
74. Given that all of the nation’s waters can be considered transboundary, the IWU should maintain a core staff that is able to draw upon the information available within the department, articulate the technical issues, and review compliance issues associated with water related agreements. Division staff should include expertise in water resources and legal aspects.
75. Diplomatic: The institutional arrangements at the country-level need to be such that technical expertise residing within Department of Water Affairs is explicitly embedded within the diplomatic structure addressing international waters. Additionally, the Government should designate desk officers or focal points in related key departments, such as within foreign affairs, the attorney general’s office and justice departments. It is at this level that all sector-related issues are coordinated to formulate the Government’s position.
76. Political: The technical and diplomatic considerations inform the political channels. There should be a coordinating officer within the Ministry that coordinates technical and diplomatic channels. This officer should report directly to the PS and have clear lines of reporting through their principals to ensure the political structures are appropriate advised on international issues.
77. The Water Resources Management Authority (WARMA) was formally established on October 01, 2012 with commencement of the Water Resources Management Act as an autonomous body to regulate water resources development and management in order to foster financial and technical efficiency in the water sector. The WARMA will assume the functions from the Water Board and the Department of Water Affairs and will be responsible for controlling the use and abstraction of all surface water and groundwater resources by considering and granting water permits. Although the WARMA shall be entitled to receiving grants from the Government, its operations including the decision making process shall be autonomous. It is expected to operate on a transitional basis for 15 months during establishment.
78. The WARMA will be responsible for both regulatory functions, including development of regulations governing all water resources development and management activities, both public and private, along with the provision of sufficient and reliable data on water resources availability and demand in the country to allow for effective planning, utilization, conservation
45
and management of the resource and infrastructure development. The functions of the WARMA identified according to the Water Resources Management Act are as follows:
a) To plan for and ensure that sustainable water resources development and
management programs are implemented efficiently; b) To participate in the implementation of the water policy; c) To promote the development and wide utilization of technologies that promote
efficient use of water; d) To promote efficient management and conservation of water, and to promote
stakeholder participation in the development and management of water resources; e) To support Research and Development (R & D) in the water sector; f) To carry out and promote groundwater exploration and development activities in
Zambia to ensure aquifer mapping for both inland and transboundary aquifers; g) To compile inventories of aquifers, detailed mapping of patterns of production,
distribution, protection and development priority of aquifers; and h) To monitor and evaluate trends of the development and utilization of water
resources by various sectors and to develop and implement catchment water programs.
79. The recommended structure for the WARMA includes provisions for a total of 696 staff under a Director General who reports to a Board, with sections and units at the catchment and sub-catchment level under a Catchment Manager. The WARMA Board is comprised of 14 members appointed by the Minister responsible for water resources. The Board is responsible for policy matters; the granting, varying, cancellation and renewal of permits and licenses; the establishment and issue of guidelines and standards; and, making recommendations to the Minister for amendments to the Water Resources Management Act No. 21 of 2011 or the issue of rules or regulations under the same Act. Based on the functions envisaged under the Act, the following Departments, Divisions and Units are proposed:
a) WARMA Headquarters - Directorate of Water Resources Management and Information - Directorate of Water Resources Development - Water Infrastructure development, Safety & Management Division - Geomatic and Groundwater Exploration Division - Directorate of Secretary of the Authority - Directorate of Human Resources and Administration - Human Resource Management Division - Financial Management Division b) WARMA Catchment/Sub-Catchment - Planning, Design and Research Division - Logistics Division - Water Assessment and Allocation Division - Water Allocation and Planning Unit - Water Resources Assessment and Monitoring Unit
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- Human Resources and Administration Division - Corporate Affairs Division - Litigation Division - Information and Resource Management Division 80. Catchment Management is a central principle supporting the decentralized management of water resources at the local level and ten operational officers are expected to be established at the local level. This reflects the six catchments delineated under the auspices of the Act, namely; i) Chambeshi, ii) Kafue, iii) Luangwa, iv) Luapula, v) Tanganyika, and vi) Zambezi. Larger catchments, such as the Kafue and Zambezi, are proposed to be sub-divided into three sub-catchments (upper, middle and lower). These will be developed according to needs and balancing the institutional and technological capacity within the WARMA.
81. The day-to-day administration and management of the catchments and sub-catchments, on behalf of the catchment council and sub-catchment council or water user association will be performed by the Catchment Manager and the subordinate staff of the WARMA. Each WARMA Operational Office is proposed to have the following structure:
- Planning, Design and Research Division - Logistics and Transport Division - Water Assessment and Allocation Division - Human Resource and Administration Division - Corporate Affairs Division - Litigation Division - Resource Management and Information Division
82. The project will support the processes to establish the WARMA and implement the functions envisaged under the Act. This will be done in a parallel basis to establish the rules, regulations and process at the central level while piloting the development of Operational Officers in critical catchments, such as in the Kafue River catchment. This will include support for institutional development, human resources and capacity building; consultants’ services to support development of processes and procedures, as well as construction of required offices and operational expenses.
83. Project Management provision will be included to strengthen the fiduciary functions and integrate implementation of the project. Additional resources will be included to strengthen capacity within the Ministry, WARMA, catchment offices and communities for safeguard management.
1. The Water Resources Development Project (WRDP) will be implemented through the Ministry of Mines, Energy and Water Development (MMEWD) as the overall lead implementing and coordinating agency. Specifically the Department of Water Resources and the Water Resources Management Authority (to be established during the life this project) will be the primary institutions responsible for implementation. This is based on the understanding that the Ministry is responsible for the overall water sector policy coordination in Zambia. In addition it is the key organization responsible for managing the multi-sectoral characteristics of the sector and ensuring the adequate representation of legitimate interests in the management of water resources in Zambia.
2. Acknowledging that the Water Resources Management Act includes provisions for institutional re-organization, with the creation of a number of new entities, the focus of the project support will be towards consolidating the water resource development and management functions and not on the dedicated form. All entities fall under the MMEWD and the arrangements are intended to allow flexibility to respond to changing institutional environment and meet the needs of the institutional configuration that evolves out the continuing reform process with outputs readily transferrable to the changing institutional arrangements.
3. The implementation framework for the project is shown in Figure 1 and shall comprise: i) a Project Steering Committee (PSC); ii) the Project Coordinator; and iii) a Project Management Team. These are further elaborated below (Figure 1 and 2).
4. The Project Steering Committee will be the primary responsible entity to ensure overall coordination, endorse annual work plans and budgets and provide policy and strategic guidance. The PSC is being established by the MMEWD to oversee implementation and alignment of all IWRM projects within the Ministry. The PSC will be led by the MMEWD Permanent Secretary and include at a minimum the Permanent Secretaries, or their designated officials, from the line ministries responsible for agriculture, livestock, fisheries, local government, forestry and natural resources, environment and tourism.
5. The Project Coordinator will be responsible for the overall coordination and implementation of the project and facilitate timely any official contacts/approvals the project may need. The Project Coordinator will establish and lead a multi-disciplinary and multi-sectoral technical working group of specialists from relevant line Ministries, including the line ministries responsible for agriculture, livestock, fisheries, local government, forestry and natural resources, environment and tourism, finance, NGOs, the private sector and academic institutions. These specialists will be called upon from time to time to review and provide advice on the process and outputs of the project.
6. A Project Management Team led by a designated Project Manager will be responsible for overall technical supervision and lead on the planning and execution of the project. The role of the Project Management Team will be informed by Project Implementation Manual (PIM) and Project Implementation Plan (PIP) to be developed prior to effectiveness. Within the PMT, Component Groups will be established with responsibility for the specific design and delivery of the main outcomes of the project components as guided by the PIM. The groups will comprise Component Leaders for each project component and Task Leaders for a set of discrete activity
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areas. These Component Leaders will be officials from the MMWED, or as appropriate, other institutions (or personnel appointed by the Permanent Secretary if not in existence) ordinarily responsible for discharging the particular function in the water resources management.
Figure 3.1. Project Implementation Arrangements.
Ministry of Mines, Energy and Water Development (Implementing Agency)
Water Sector Advisory Group (Multi-Sectoral Advisory and Consultative Forum)
Project Management Team (Project Manager, Procurement Officer, Project Officer (M&E),
Accountant, Secretary / Office Assistant, Driver)
Component 1: Water Resources Management
Component 2: Water Resources Development
Component 3: Institutional Support
1.1 Water Quality 1.2 Hydro-Met Services 1.3 Info Mgmt Systems 1.4 Earth Observation
2.1 Small Dams 2.2 Groundwater Dev 2.3 Infrastructure Dev 2.4 Studies
3.1 Operat of WRM Act 3.2 HR Development 3.3 Institutional Dev 3.4 Internation Waters
Component Leaders
Task Leaders
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7. Project implementation will be supported by specialists as required from time to time, with support staff budgeted and financed under the Project. This will ensure that the project’s operations and certain specialized tasks are executed by specialists with the required background and knowledge, including: (i) professional staff: environmental and social safeguards specialists, institutional experts, dam design and construction, water resources management, water resources information, economics and water resources planning; (ii) short term expertise may include: planning, monitoring and evaluation, irrigation engineering, dam design and construction engineers, catchment management, civil engineer, facilitators, water quality, legal expertise, international waters; information technology services, etc.; (iii) support staff: accountant or financial management specialist, procurement specialist; and (iv) annual external audits. Note that during project implementation, fiduciary and administrative capacity will be enhanced in MMEWD to carry out these functions and will be re-assessed at mid-term. The MMEWD will be responsible for financial management under a single Designated Account and centralized support for procurement services. The approval of all procurements will be based on procedures that are in line with MMEWD procedures and Bank guidelines, as defined in the Project Implementation Plan (PIP).
8. To ensure broad government ownership and long-term leadership of the project, each component, sub-component and activity will be implemented in close collaboration with the relevant ministries, departments, agencies and local authorities. District Level and Community Level Arrangements will be coordinated through the PMT to ensure district and community level sub-project interventions are working through appropriate District level government officials, such as the District Agricultural Officer in the case irrigation sub-projects, or the Rural Water Unit under the local authorities. Most planning of construction and rehabilitation of small dams is done in partnership between the Government, the traditional chiefs and the local community within the government planning systems. District Councils are to be involved in the planning and implementation of construction or rehabilitation of works. The financing of small water resources infrastructure should be included in catchment plans if present as well as District and Provincial Plans. District plans, which include small water resources infrastructure, are submitted to the Provincial Development Coordinating Committee (PDCC) for approval. The Department of Water Affairs (DWA) or new Water Resources Authority is mainly involved in major rehabilitation and new construction.
9. The Water Sector Advisory Group is one of a number of sectoral structures established under the aid architecture within Zambia to provide a multi-sector advisory and consultative platform to ensure coordination with other stakeholders and continued alignment with government priority programs. This will be complimented by consultations through the Cooperating Partners forum which has been established under the same architecture to provide a platform for coordinated technical discussions between partners. Active support is provided through a number of CPs, including the African Development Bank, DANIDA, German Development Cooperation, Japanese International Cooperation Agency, the United Nations, among others. These forums will be afforded the opportunity to review technical reports, used to synthesize information and provide insights on project implementation issues.
Integrated Water Sector Steering Committee ‐ Director Level representatives of concerned Ministries. Lead and Chaired by Permanent Secretary MMEWD deputized by Director
Water.
Water Resources Development Project Technical Working Group
Lead by the Project Coordinator
Water Sector Advisory group Stakeholder representatives
including academia, CSOs, private sector, development partners in line with or as per current Government
arrangements
Project Implementation Unit Led by Project Coordinator
Technical Assistance and Donor Coordination Group
Technical experts and CPs providing policy advice, implementation
support and mentoring Lead by the Project Coordinator
Component A Water Resources Management
Lead by Task Leader supported by Sub task leaders Supporting Agencies:
Survey Department
EMA
Private sector
Ministry of Justice
ZNFU
Meteorological Department
Policy Planning (Cabinet)
Town and country planning
Component B Water Resources Development
Lead by Task Leader by Subtask leaders Supporting Agencies:
DO Agriculture
ZNFU
DHID
ZEMA
ZNS (national service)
Min. of Finance (planning)
ZESCO
EIZ
AConZ
Component C Institutional Support
Lead by Task Leader by Sub task leaders
) Supporting Agencies:
MDD
PSMD
MFNoP
Min of Justice
Min of Finance
District and Community level Arrangements Oversight roles supported by Selected District level officials for various
subprojects (e.g. District Agricultural Officer for irrigation subprojects)
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II. Financial Management, Disbursements and Procurement
A. Financial Management
10. Introduction. A financial management (FM) assessment of the implementing agency involved in the project was conducted on November 23, 2012. The MMEWD has been designated as lead implementing agency, and overall program coordination will be housed in MMEWD, including the financial management function. The objective of the assessment was to determine: (a) whether the entities have adequate FM arrangements in place to ensure the funds will be used for the purposes intended in an efficient and economical manner and the entities are capable of correctly and completely recording all transactions and balances related to the Project; (b) the Project’s financial reports will be prepared in an accurate, reliable and timely manner; and (c) the entities’ assets will be safely guarded; and (d) the Project will be subjected to auditing arrangements acceptable to the Bank. The assessment complied with the Financial Management Manual for World Bank-Financed Investment Operations that became effective on March 1, 2010 and AFTFM Financial Management Assessment and Risk Rating Principles.
11. A financial management assessment of the Ministry of Mines, Energy and Water Development (MMEWD), the implementing entity was carried out in accordance with the Financial Management Manual for World Bank-Financed Investment Operations, issued by the Financial Management Sector Board on March 1, 2010 and the ORAF Financial Management Draft Interim Guidance Note issued by the AFTFM unit on September 30, 2010.
12. The objective of the assessment was to determine whether the implementing agency, the Ministry of Mines, Energy and Water Development (MMEWD), has the minimum financial management arrangements, adequate to ensure that: (1) the funds are properly accounted for and used only for the intended purposes, in an efficient and economical way; (2) capability exists for the preparation of accurate, reliable and timely periodic financial reports; (3) internal controls exist which allow early detection of errors or unusual practices as a deterrent to fraud and corruption, (4) the assets are safeguarded. The results of the review are documented below.
13. The overall conclusion of the assessment is that the MMEWD, which will be in charge of administering project, satisfies the Bank’s OP/BP 10.02 financial management minimum requirements. The risk rating for the financial management arrangements has been assessed as Moderate.
Risk Assessment and Mitigation Measures
14. The overall financial management residual risk rating is assessed as Moderate. The table below summarizes the risks identified, the risk rating and mitigating measures, if any.
Risk Initial Risk
Rating Risk Mitigating Measures
Residual Risk Rating
Inherent Risk Country Level. Lack of accountability; poor
enforcement & compliance with existing regulations/ procedures; and lack of, and lukewarm implementation of auditors’ recommendations; and the lack of sanctions for offenders.
S The government is implementing a PFM reform agenda supported by cooperating partners which includes the implementation of the IFMIS which has been rolled out to the MMEWD in January 2012 by the MoF. Once fully operational IFMIS will improve on the accountability and control environment
S
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Risk Initial Risk
Rating Risk Mitigating Measures
Residual Risk Rating
in the Ministry
Entity Level: Lacks experience with
implementing World Bank or Donor assisted projects and therefore unfamiliar with the requirements.
The Ministry is not adequately
funded through the National Budget and can divert project funds for own use.
M MMEWD has implemented a World Bank funded project (Power Rehabilitation Project) and is currently implementing project supported by DANIDA .The staff are familiar with the IDA requirements and procedures. Furthermore, a senior accountant with extensive experience in IDA projects has been transferred from the MACO to MMEWD.
The project will be closely supervised by IDA team and the use of funds will be strictly monitored through the quarterly submission of interim financial reports, which should be adequate to detect any funds diversions
Accounting Staff in MMEWD will be trained in financial management and disbursement arrangements in IDA assisted projects.
L
Project Level: The nature, size and design of the
project.
L The activities to be funded by the project are identified and the project cost is fully budgeted for.
The size of the project is small and the nature and design is simple.
L
Overall Inherent Risk M M
Control Risks Budgeting: Lack of enough details and a system
to monitor budget performance.
M The total budget is fully allocated and all activities have been identified.
Any variations from the budgets will require prior approval by IDA.
Quarterly interim financial reports that will include comparisons of budget to actual with explanations for variations will be a requirement for reporting purposes.
L
Accounting: Inadequate staff capacity to perform
project accounting functions. The accounting systems are manual
and are error prone, unreliable and inefficient.
The project will be accounted for outside IFMIS and therefore will be subject to poor control environment
M The accounting functions of the project will be main-streamed within the accounting department of the Ministry which ensure existence of adequate segregation of duties and counter checking of transactions by other staff. IFMIS was introduced in January 2012 and the project’s accounting functions are expected to be integrated under IFMIS.
MMEWD has adequate numbers of qualified and experienced accounting staff.
M
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Risk Initial Risk
Rating Risk Mitigating Measures
Residual Risk Rating
There are adequate financial management regulations and procedures and which if properly enforced will reduce the risk.
There is an Accounting and Financial Procedures Manual, produced by the Ministry of Finance that will provide guidance to staff. However, this manual will need to be updated to take into account IFMIS procedures.
Internal Control: Weak control environment resulting
from poor enforcement of existing financial regulations; weak management oversight; and inadequate internal audit function.
S An Accounting and Financial Procedures Manual exists, to provide guidance to staff.
Internal audit functions to be revamped through the provision of TA under another IDA supported PEMFA project where resources have been provided to the Controller of Internal Audit to improve methodologies / practices focusing on risk and systems audit; and production of audit manuals.
Revamp and ensure audit committees work as intended.
Internal auditors to undergo financial management and disbursement training for internal auditors in World Bank funded projects.
S
Funds Flow: Delays at Bank of Zambia (BoZ)
may affect the smooth flow of funds to MMEWD.
M BoZ to be sensitized to ensure that no undue delays are experienced in transferring the funds.
M
Financial Reporting: Untimely submission of the
financial reports due to these reports being produced manually outside the computerized IFMIS.
Inaccurate accounting figures produced manually.
M Accounting Staff in MMEWD will be trained in financial management and disbursement arrangements in IDA assisted projects, which will include financial reporting. Accounting functions of the project are expected to be integrated under IFMIS which was introduced in January 2012.
The accounting functions for the project will be mainstreamed in MMEWD under the Principal Accountant, with many accounting staff involved to ensure adequate segregation of duties and the checking of transactions by other staff to reduce errors.
The quarterly financial reports formats & contents and the reporting timetables will be agreed with MMEWD in advance.
M
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Risk Initial Risk
Rating Risk Mitigating Measures
Residual Risk Rating
Auditing: Unacceptable audit and untimely
submission of the audit reports and lack of follow up on audit findings.
S The Auditor General, who has the Country’s Constitutional mandate to audit all funds, will carry out the audit.
The audit will be based on agreed TOR which will specify the approach, scope and timing of the audit.
Revamp and ensure Ministry’s audit committee is working as intended.
As part of supervision ensure planning for the audit is started early.
M
Overall control risk: S M Overall risk rating: S M
Strengths and Weaknesses
15. The main strength identified is that the project will use the existing financial management arrangements at MMEWD including staff, financial regulations and procedures. The MMEWD Principal Accountant will have overall responsibility for the project’s financial management. The weaknesses identified are that: the project will be accounted for outside the IFMIS and therefore will not benefit from the strong accountability controls and efficiency provided by the IFMIS; Manual accounting systems are error prone and therefore inefficient and unreliable (the IFMIS was introduced in January 2012 and the Ministry’s accounting functions have been computerized and it is expected that the project’s accounting functions will be computerized under IFMIS and this will mitigate some of these weaknesses); the non-compliance and enforcement of existing rules and financial regulations coupled with a weak internal audit function that focuses on pre-audit of expenditures instead of systems and risk based auditing; the untimely remedial actions on audit findings.
Budgeting
16. The project has a detailed budget showing all activities to be funded. The budget will have such detail as to allow for regular and effective implementation monitoring of planned activities and uses of funds, by comparing budgeted figures to actual expenditure. The total budget has been approved by IDA and agreed with the borrower and any variations will have prior approval by IDA.
Accounting
17. The MMEWD will initially maintain manual books of accounts for the project using the excel spreadsheets, while possibilities of accounting using the IFMIS, which was introduced in January 2012 and the ministry’s accounting functions have been computerized under IFMIS, are being explored. The processing of project transactions will be according to the Public Finance Act 2004 and the government’s 2006 financial regulations.
Internal Control and Internal Auditing
18. Staffing. The Principal Accountant MMEWD will have overall responsibility to account for the project funds using the existing accounting staff within the ministry. The accounting functions will be mainstreamed in the accounting department, so that no one individual staff performs all project functions, to ensure adequate segregation of duties.
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19. Internal Controls. The existing 2006 Financial Management Regulations and the Public Finance Act, 2004 (Act No. 15 of 2004) will be applicable to the operations of the project. The regulations identify and define responsibilities for the various officers involved in the accounting processes. The regulations include among others, control procedures governing expenditures and payments; imprest; accountable documents; safes; loss of public funds and assets, and the audit of accounts by the Auditor General. In addition, there is an accounting and financial procedures manual that elaborates on these regulations to provide guidance to staff. These regulations and procedures are considered adequate.
20. Internal Audit. The project will be embedded in the operations of the MMEWD and will benefit from the ministry’s internal audit functions. An independent Ministerial Audit Committee has been established and is expected to fulfill this role. Government is working to enhance the capacity and operations of the audit committees and training in financial management and disbursements in World Bank projects will be provided to staff of Internal Audit Unit of the Ministry, to enhance their operational capacity with special emphasis on the project.
Financial Reporting
21. The project will produce on a quarterly basis unaudited interim financial reports (IFRs) to manage and monitor the use of the advance. The IFRs should at the minimum show a statement of sources and uses of funds, with the uses of funds analyzed by component and by activities, comparing actual expenditure with budget. The quarterly reports to be submitted to the World Bank 45 days after the end of the quarter.
Funds Flow and Disbursement Arrangements
22. Funds Flow. Funds from the Credit will be transferred to the Designated Account at the Bank of Zambia. At the time of project execution, the Ministry of Finance on behalf of the project will transfer funds from the Designated Account to a project sub-account held at the Bank of Zambia, through Control 99 (a treasury account). A funding slip is then issued to the MMEWD showing that the Kwacha equivalent has been transferred. From the sub-account, all payments will be made through a mirror account (zero balance) held at a commercial bank. This account would be used to make payments for goods, services and incremental operating costs pre-agreed with IDA in an annual work plan. Only enough funds to cover the liabilities for the month will be transferred to the mirror account. Once they acquired sufficient capacity, as judged by the World Bank, disbursements could be done on a quarterly basis.
23. Banking Arrangements. The MMEWD will open and maintain one Designated Account (DA) in US $ at BoZ and one operational bank account in Zambian Kwacha at a commercial bank acceptable to the IDA, for the purposes of implementing the project. The operational bank account will be used to make payments to suppliers of goods and services in local currency. Only enough funds to cover the liabilities for the month will be transferred from DA to the operational bank account.
Disbursement Arrangements
24. The project will use the Advance Disbursement method. Disbursements of the project will be transaction-based using Statements of Expenditure (SOE) and Summary Sheets. Withdrawal Applications (WA) will be completed by MMEWD accounting unit to request IDA to replenish amounts that are spent from the DA. The initial advance to the DA will be made based on a cash flow forecast. Regular monthly withdrawal applications to document expenditure made from the DA and to request replenishment of the DA will ensure adequate funds are available all the time for project implementation.
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25. Disbursement methods other than the Advance method such as direct payments and reimbursement of funds will also be available to the Project. WAs for such payment methods should be accompanied by adequate and relevant supporting documents such as copies of the contract, contractors’ invoices, appropriate certifications and evidence of receipt of goods or services. The project will use the direct payment method for all contracts that meet the minimum threshold for this method to apply. Details of withdrawal conditions and requirements will be advised in the Disbursement Letter that will be issued by IDA.
External Audit
26. An external audit will be carried out annually by the Auditor General (AG), who as outlined in the Constitution of Zambia Act 1996, is responsible for auditing all government funds. The audited financial statements and audit report, together with the auditor’s management letter and management response thereto, will be submitted to the Bank not later than 6 months after the end of the borrower’s financial year, December 31.
27. For the Project Preparation Advance, separate audits will not be required because it is expected that the amounts disbursed under the project will be accounted for in the first reporting period of the project, assuming that it becomes effective within two years of the date of the first disbursement under the project.
Supervision Plan
28. The objective of the financial management supervision is to ensure the continued adequacy of the borrowers’ FM arrangements, compliance with relevant legal covenants of the financing agreement, and that the proceeds of the advance are used only for the purposes for which the advance is intended, with due regard to economy and efficiency.
29. Financial management supervision will be carried out using the risk based model. The Financial Management risk for the project has been assessed as Moderate. In line with the moderate risk, Financial Management Supervision intensity will be one field visit per year. In the interim, supervision will be by desk reviews of the financial component of the unaudited quarterly IFRs.
B. Procurement
30. The procurement arrangements under the project, including procurement packaging, clarity of accountability over procurement, record keeping, frequency and scope of prior and post review will be elaborated in the procurement manual. The manual will be prepared and finalized by effectiveness in readiness for project implementation. All goods, non-consulting services and works and consulting services required for the Project to be financed out of the proceeds of the Credit will be procured in accordance with the requirements set forth or referred to in Section I of the “Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” (Procurement Guidelines) dated January 2011 in the case of goods, works and non-consulting services and Sections I and IV of the “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” (Consultant Guidelines) dated January 2011 in the case of consultants’ services.
31. A procurement capacity assessment was undertaken on March 05, 2012 in accordance with Bank’s Procurement Risk Management System - PRAMS. The overall project risk was assessed as High. Implementation of identified mitigation actions would reduce this to Moderate. The Implementation Agency Risk for MMEWD is assessed to be High. The MMEWD will develop a procurement manual by effectiveness to address the identified risks with a clear basis for legal
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and regulatory framework, roles and responsibilities, internal and external controls, approval systems and accountability, contracts register, responsibilities and roles of various players in contracted management based on both based on Government and as required for prior review contracts IDA. More importantly given the decentralization of all public procurement to the Procurement Entities in Zambia with effect from January 01, 2013, the procurement manual will need to clearly indicate how procurement will be carried out based on internal controls devoid of the participation by the ZPPA who with effect will transform itself into a regulatory and oversight body for public procurement in Zambia.
32. MMEWD has, with the support of the Bank, developed the procurement plan the first 24 months.
33. Review of the procurement capacity of the MMEWD revealed that staff numbers may be inadequate given potential increase in work load and the realigned functions of the ministry. Staff levels are inadequate and start at 3rd level of seniority. By implication the staff grade levels are insignificant and may not adequately influence the business dealings of the Ministry. The highest level of staff is at Senior Procurement Officer. The Ministry does not have a Head Procurement and Supplies Unit neither does it have a Chief Procurement Officer. The Procurement staff is at lower level starting with SPO. This is a misnomer as the MMEWD is also in charge of large procurements such as petroleum for which costs are very large and so too is the risk. MMEWD need to consider creating two positions of Head PSU and CPO in line with the needs of the Ministry. Appropriate training particularly in Bank procurement will also be necessary for selected staff.
34. Measures that are required to be undertaken to address procurement issues are provided in the PRAMS Summary risk table below:
Risk Factor 1: Accountability for Procurement Decisions in the Implementing Agency or Agencies
Risk Mitigation Measure System for effective management of accountability (i.e. mechanisms to ensure that authority delegated "on paper" is applied consistently in practice).
Procurement manual needs to be developed to clearly define procurement and responsibilities of all players particularly of the PSU and Client Departments in line with institutional arrangements and provisions of Act No 12 of 2008 as amended January 2011 and the July 2011 Regulations. In addition manual needs to be publicized and staff particularly the PC trained in procurement responsibilities. PSU needs to take the lead in procurement and provide guidance to CDs. UDs should not carry out procurement. PSU staff should not be involved in approvals. Exceptions to this should be clearly spelt out in the Procurement Manual.
Risk Factor 2: Internal Manuals and Clarity of the Procurement Process
Risk Mitigation Measure Internal manuals on procurement do not exist. Only procurement law and guidelines in place. As a result Agency staff do not adequately understand roles and responsibilities and are not confident in their actual application.
Procurement Law and Regulations exist, but there is no Manual. MMEWD. A Procurement Manual is under preparation and will be ready by effectiveness. The Procurement Manual will address the roles and responsibilities for all players.
Risk Factor 3: Record Keeping & Document Management Systems
Risk Mitigation Measure Records need to be protected from loss and unauthorized access, and Develop good filing and data management system and give
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storage space is inadequate. consideration to electronic data management. Carry out training in data management and filing.
Risk Factor 4: Staffing
Risk Mitigation Measure Agency does not have adequate key staff with experience and a satisfactory track record in procurement in general and on donor funded projects specifically. Agency staff’s level of seniority is low and is not consistent with what is required for a key ministry such as MMEWD.
Agency does not have access to contract management expertise and a track record of quality and timely delivery.
Code of ethics that describes inappropriate behavior related to procurement exists for Public Service generally. It is however not well publicized.
Staff number may be inadequate given potential increase in work load and the realigned functions of the ministry. The highest level of staff is at Senior Procurement Officer (SPO). The ministry does not have a Head Procurement and Supplies Unit (H PSU) neither does it have a Chef Procurement Officer. The Procurement staff is at lower level starting with SPO. This is a misnomer as the MMEWD is also in charge of large procurements such as petroleum for which costs are very large and so too is the risk. MMEWD need to consider creating 2 positions of Head PSU and CPO in line with the needs of the ministry. Appropriate training particularly in Bank procurement will also be necessary for selected staff. No training plan exists. The SPO has not undertaken any training in the last 7 years since she has been with the ministry. Training will be needed for staff in PSU, Ministry Tender Committee and selected technical staff including from the OPPPI in public procurement and contract management and strict adherence to conditions of contract is needed. The involvement of PSU staff would enhance guarding against lapses in procurement and strict adherence to provisions of the Procurement Act, regulations and conditions of contract. Code of conduct document available for the public service. This however needs to be publicized. In addition to the code of conduct, MMEWD needs to go further by making specific code of conduct applicable to procurement.
Risk Factor 5: Procurement Planning
Risk Mitigation Measure Realistic procurement plans not in place though required by law.
Agency sector risks need not assessed neither is there a risk mitigation action plan and review to address identified sector risks (related to collusion, supply constraints).
MMEWD needs to develop, publicize, update and monitor procurement plans. Procurement plans should be realistic and include reasonable time frames for procurement processes, sequencing and implementation time particularly for works contracts. Greater involvement of technical staff in planning and implementation with option to outsource additional capacity. MMEWD institutional arrangements and risk mitigation measures need to be developed and articulated in the procurement manual. Collaborative effort needed between PSU staff and client departments including OPPPI and individual roles and responsibilities. PSU staff and to understand the peculiarities of the market and practices for the more complex procurement and procurement of works in particular.
Risk Factor 6: Bidding documents,(pre-)qualification, short listing, and evaluation criteria
Risk Mitigation Measure N/A N/A
Risk Factor 7: Advertisement, Pre-bid/proposal Conference and Bid/Proposal Submission
Risk Mitigation Measure Bids/proposals not consistently advertised in media of wide circulation, easily accessible to potential bidders, in line with the advertising principles of the Bank's Guidelines.
Content of the advertisements and EoI sufficient to enable a potential participant to determine its interest in competing needs improvement.
Advertise adequately and use pre-qualification as necessary based on sector practices, complexity of the procurement and values of contracts. Training in selection of consultants, well prepared Specifications & TORs, and well documented selected processes in the procurement manual to compliment the provisions of the procurement Act and
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Due to inadequate advertising and or use of direct contracting, competition and number of bids received may not be reasonable.
regulations. Advertising adequately, informing those who respond to GPN and continuing improving image of the PSU to instill bidder confidence to participate.
Risk Factor 8: Evaluation and Award of contract
Risk Mitigation Measure Evaluations may not be conducted professionally. Composition of evaluation committees should include PSU staff and staff with technical expertise in the items/services being procured.
Protocol not in place for ensuring safekeeping of information during the evaluation process.
The PSU role in procurement is limited by inadequate staffing and low level of seniority of the staff in procurement. As a result some procurement activities are carried out with little or no involvement of the PSU. This needs to be redressed. PSU staff need to take the lead in all evaluation conducted by the MMEWD with appropriate members from technical staff being involved. Needs clarity and consistency by inclusion in the procurement manual. PSU should advise appointed evaluators in letters of appointment on conduct and through registration and safe custody of documents. However there is a problem of secure and adequate storage space.
Risk Factor 9: Review of Procurement Decisions and Resolution of Complaints
Risk Mitigation Measure Bidders are unaware of compliant mechanism. None exists. Solution is at country level.
Risk Factor 10: Contract Management and Administration
Risk Mitigation Measure Inadequate mechanisms in place for procurement and/or contract monitoring.
Invoices from vendors generally not paid within the contractual terms.
Contracts not generally implemented according to specifications, on time and without excessive changes in scope or price and are variations justified.
Close liaison between PSU & Client Departments of contract management process by Client Departments and knowledge of contract terms and conditions needs to be enhanced. Training in contract management for selected key staff may be appropriate. Paying on time in line with contract conditions. PSU getting copies of all payment documents and reviewing and reporting on compliance. PSU ensuing that accounts department and user departments having copies of all contracts and contract addendums. Adherence to terms and conditions of contract. In the interest of effective procurement and consultant processing and contract management once contracts have been approved, one appropriate qualified and experienced staff in the subject area within the MAL should be appointed as the client’s representative / contracts manager in line with the Zambia public procurement act No 12 of 2008 Part IV “Procurement Process” paragraph 57 “Contract Management” sub paragraphs (1) (a) and (b) and (2) and the provisions of Statutory instrument No 63 of 2011 of 15th July 2011 “The Public Procurement Regulations, 2011” Part X Contract Award, specifically paragraph 146 – Contract Management Responsibilities, paragraph 147 Inspection of goods, works and services.
Risk Factor 11: Procurement Oversight
Risk Mitigation Measure There is no other form of oversight of procurement exercised by other external independent organization like civil society groups, anticorruption agency or similar.
ZPPA should play its oversight and regulatory role as provided for in Public Procurement Act instead of continuing with transactions (document review and contract approvals). Where possible third party independent monitoring should be instituted.
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35. In addition to MMEWD implementing the suggested risk mitigation measures, the Bank will as part of the regular usually twice yearly implementation support missions, ensure that procurement plans are monitored and updated regularly and published on the Banks external website as required by the Bank’s disclosure policies.
36. Procurement Post Reviews (PPRs) and Independent Post Reviews (IPRs) by the World Bank. Based on the assessed agency implementation risk for procurement, which is High, the World Bank will carry out PPRs or IPRs for all contracts that will based on the procurement plan not having been subject of prior review by the World Bank using a sample of 20 percent. Based on continuing assessment of risk and the success of risk mitigation measures implemented, the sample size will be reduced as risk mitigation measures are successfully implemented. Substantial risk will represent a sample size of 15 percent, Moderate risk 10 percent, and Low risk 5 percent. These changes will be communicated to the MMEWD as outcomes of the PPR / IPR exercise, which also result in the revisions of the prior review and National Competitive Bidding thresholds. The review thresholds are shown in Table 3.12 below.
Table 3.12: Prior review and procurement method thresholds - Zambia
Expenditure category Contract value threshold
(US$) Procurement method
Contracts subject to prior review
1. Works ≥ 3,000,000
≥ 100,000 - <3,000,000
<100,000
All values
ICB
NCB
Shopping
Direct Contracting
All
As in procurement plan
None
All
2. Goods and Services (other than Consultants’ Services)
≥ 500,000
≥ 50,000 - <500,000
<50,000
All values
All values
ICB
NCB
Shopping
Direct Contracting
UN Agency
All
As in procurement plan
None
All
All
3. Consulting Firms
≥ 200,000
<200,000
QCBS
CQS, LCS, QBS
Single Source
All
As in procurement plan
All
4. Individual Consultants
≥ 100,000
<100,000
IC
IC
Single Source
All
None
All
NOTE: Contracts selected on basis of CQS should not exceed US$200,000 equivalent. This same value will constitute the limit up to which a short list may comprise entirely national firms.
37. Applicable legal and regulatory framework for National Competitive Bidding: The procurement procedure to be followed for National Competitive Bidding (“NCB”) shall be the open international bidding procedure set forth in the Public Procurement Act, 2008, Act. No.12 of 2008, as amended by the Public Procurement (Amendment) Act, 2011, Act No. 15 of 2011 (the “PPA”), and the Public Procurement Regulations, 2011, Statutory Instrument No. 63 of 2011 (the “Regulations”); provided, however, that such procedure shall be subject to the provisions of Section I and Paragraphs 3.3 and 3.4 of Section III, and Appendix 1 of the “Guidelines for Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans
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and IDA Credits & Grants by World Bank Borrowers” (January 2011) (the “Procurement Guidelines”), and the additional provisions in the following paragraphs:
38. Eligibility: Eligibility to participate in a procurement process and to be awarded an IDA-financed contract shall be as defined under Section I of the Procurement Guidelines; accordingly, no bidder or potential bidder shall be declared ineligible for contracts financed by IDA for reasons other than those provided in Section I of the Procurement Guidelines. No restriction based on nationality of bidders and/or origin of goods shall apply, and foreign bidders shall be allowed to participate in NCB without application of restrictive conditions, such as, but not limited to, mandatory partnering or subcontracting with national entities.
39. Domestic Preference: No margins of preference of any sort shall be applied in the bid evaluation.
40. Bidding Documents: Procuring entities shall use bidding documents acceptable to IDA.
41. Bid validity: An extension of bid validity, if justified by exceptional circumstances, may be requested in accordance with Appendix 1 of the Procurement Guidelines. A corresponding extension of any bid guarantee shall be required in all cases of extension of bid validity. A bidder may refuse a request for extension of bid validity without forfeiting its bid guarantee.
42. Qualification: Qualification criteria shall be clearly specified in the bidding documents. All criteria so specified, and only such specified criteria, shall be used to determine whether a bidder is qualified. Qualification shall be assessed on a “pass or fail” basis, and merit points shall not be used. Such assessment shall be based entirely upon the bidder’s or prospective bidder’s capability and resources to effectively perform the contract, taking into account objective and measurable factors, including: (i) relevant general and specific experience, and satisfactory past performance and successful completion of similar contracts over a given period; (ii) financial position; and where relevant (ii) capability of construction and/or manufacturing facilities.
43. Prequalification procedures and documents acceptable to IDA shall be used for large, complex and/or specialized works. Verification of the information upon which a bidder was prequalified, including current commitments, shall be carried out at the time of contract award, along with the bidder’s capability with respect to personnel and equipment. Where pre-qualification is not used, the qualification of the bidder who is recommended for award of contract shall be assessed by post-qualification, applying the qualification criteria stated in the bidding documents.
44. Bid Evaluation: All bid evaluation criteria other than price shall be quantifiable in monetary terms. Merit points shall not be used, and no minimum point or percentage value shall be assigned to the evaluation criteria or significance of price in bid evaluation. No negotiations shall be permitted.
45. Guarantees: Guarantees shall be in the format, shall have the period of validity and shall be submitted when and as specified in the bidding documents.
46. Cost Estimates: Detailed cost estimates shall be confidential and shall not be disclosed to prospective bidders. No bids shall be rejected on the basis of comparison with the cost estimates without IDA’s prior written concurrence.
47. Rejection of bids and re-bidding: No bid shall be rejected solely because it falls outside of a predetermined price range or exceeds the estimated cost. All bids (or the sole bid if only one bid
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is received) shall not be rejected, the procurement process shall not be cancelled, and new bids shall not be solicited without IDA’s prior written concurrence.
48. Fraud and corruption: In accordance with the Procurement Guidelines, each bidding document and contract shall include provisions stating IDA’s policy to sanction firms or individuals found to have engaged in fraud and corruption as set forth in the Procurement Guidelines.
49. Inspection and audit rights: In accordance with the Procurement Guidelines, each bidding document and contract shall include provisions stating IDA’s policy with respect to inspection and audit of accounts, records and other documents relating to the submission of bids and contract performance.
Procurement plan
50. MMEWD has developed a procurement plan for to guide preparation of the project under the Project Preparation Advance and updated to reflect the first 24 months of Project implementation with the support of the World Bank. The World Bank has reviewed and approved this plan as of March 07, 2013. The procurement plan includes all the procurement packages identified for the first 24 months of Project implementation. The procurement plan will be updated as required at least once a year throughout the life of the project.
Procurement arrangements
Goods and works
51. Particular methods of procurement of goods and works are as follows:
(a) International Competitive Bidding. Except as otherwise provided in the next paragraph, goods and works shall be procured under contracts awarded on the basis of International Competitive Bidding (ICB).
(b) Other methods of procurement of goods and works. The following list specifies the methods of procurement, other than International Competitive Bidding, which may be used for goods and works. The Procurement Plan shall specify the circumstances under which such methods may be used.
(i) National Competitive Bidding,
(ii) Shopping, and
(iii) Direct Contracting.
Schedule for goods and works
52. Procurement of works: Works to be procured under the Project are likely to include: construction and/or rehabilitation of small water resources infrastructure; Hydro-climatic Equipment and stations; Construction of offices; access road grading; water irrigation works among others. There will be no International Competitive Bidding (ICB) and National Competitive Bidding (NCB) will follow Zambia Procurement Regulations and with the exceptions listed above, may be used for contracts estimated to cost less than US$3,000,000 equivalent per contract. Small value works estimated to cost less than US$100,000 per contract
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may be procured under the Shopping procedures based on comparing price quotations obtained from several contractors, with a minimum of three, to assure competitive prices.
53. Procurement of goods: Goods to be procured under the Project are likely to include: Vehicles, IT equipment, office equipment, laboratory equipment, office furniture, irrigation equipment, among others. The procurement will be done using the World Bank’s Standard Bidding Documents for all International Competitive Bidding contracts. National Competitive Bidding (NCB) documents, in accordance with the Zambia Procurement Regulations and with the exceptions listed above, may be used for contracts estimated to cost less than US$500,000 equivalent per contract. Small value goods estimated to cost less than US$50,000 per contract may be procured under the Shopping procedures based on comparing price quotations obtained from several suppliers, with a minimum of three, to assure competitive prices, and is an appropriate method for procuring readily available off-the-shelf goods.
Consulting services
54. Particular methods of procurement for consulting services are:
(a) Quality and Cost-Based Selection (QCBS). Except as otherwise provided in the paragraph below, consultants services shall be procured under contracts awarded on the basis of Quality and Cost-Based Selection.
(b) Other methods of procurement of consultants’ services. The following list specifies selection methods, other than Quality and Cost-Based Selection, which may be used for consultants’ services. The Procurement Plan shall specify the circumstances under which such methods may be used:
(i) Quality-based Selection (QBS)
(ii) Selection based on the Consultant’s qualifications (CQS)
(iii) Least-cost selection (LCS)
(iv) Single-source selection for firms (SSS),
(v) Individual Consultants (IC).
(vi) Single-source selection for IC (SSS),
Schedule for consulting services
55. Selection of Consultants: Consulting services to be procured under the Project will likely include: updating of Zambia’s water resources development plans; preparation of water catchment plans; review, redesign and assessment of the information and water allocation systems, design and supervision of works, design, planning and supervision of field irrigation works, technical assistance for the development well fields; technical audits, technical assistance for research and management, financial management, procurement, technology transfer, amongst others. All consulting service contracts estimated to cost more than US$200,000 equivalent per contract for firms will be awarded through Quality and Cost Based Selection (QCBS) method. Contracts for assignments estimated to cost less than US$200,000 equivalent may be contracted through Consultants’ Qualification (CQS), Least Cost Selection (LCS). For the selection of Consulting Services estimated to cost less than the equivalent of US$200,000 per contract, the
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short list may be comprised only of national consultants, and the provisions of the Decree 15/2010 apply
C. Environmental and Social (including safeguards)
56. The project’s overall objectives are intended to enhance sustainable management and implementation of an integrated framework for water resources management that promotes infrastructure development in support of economic growth, poverty reduction and climate resilience. Benefits are expected to accrue to water users in key river basins and improvements aggregated as the national level through allocation of water and rights and so the project is anticipated to have overall positive environmental and social benefits.
57. A range of scenarios were assessed during preparation. These included the “no project” option. This was assessed to maintain the exposure of local communities to the impacts of hydro-climatic variability and continued vulnerability to floods and droughts, continuing poor land productivity and loss of biodiversity, increased competition across water allocations for new investments without an information or analytical basis for such choices, and the associated long term negative impacts on prospects for economic development and productive application of water resources.
58. Infrastructure development supported under the project is limited to small-scale and localized investments, without any large scale, significant or irreversible adverse environmental or social impacts. Investments in small scale water resources development will include small dams, weirs, gabions, and other small civil works intended to retain water, reduce erosion and enhance recharge, along with measures to enhance productive application of water to enhancing community livelihoods and promote income-generating activities. All investments will be restricted to those less than 10 meters in height or store less than 1 million cubic meters of water at full supply level. Distribution of the small-scale water resources infrastructure supported under the project is intended to be national. The ESMF provides a transparent, standard process for the identification and screening of potential environmental and social impacts associated with any small scale water resources infrastructure investments. The integrate information management system is using remote sensing and earth observation techniques, with ground truthing, to map all water bodies and will be used to identify potential areas of concentrated investments.
59. The small scale water resources infrastructure is to be developed in accordance with the FAO Manual on Small Earth Dams. This provides the foundations for further development and localization of emerging innovative approaches to small scale water resources infrastructure, such as: (i) community driven water resources management and development; (ii) public awareness on infrastructure development and operation and management requirements; (iii) economic analysis and multi-purpose optimization; (iv) financial mobilization and partnership development; (v) integration of climate change issues, (vi) environmental management and social equity aspects; and (vii) impact monitoring and knowledge management.
60. The project will also support the preparation of a pipeline of larger investments. The project is intended to promote increased focus on the environmental and social implications of any proposed new investments, supported by capacity-building activities, and so all those planned or designed under the project will be accompanied by required environmental and/or social assessments. These will be supported by development of an integrated water resources
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information management system, regulations and procedures to strengthen dam safety provisions, and spatial data tools to help assess potential cumulative impacts.
61. The project triggers the following environmental and legal safeguards policies: OP/BP 4.01 (Environmental Assessment), OP/BP 4.09 (Pest Management), OP/BP 4.11 (Physical Cultural Resources), OP/BP 4.12 (Involuntary Resettlement), OP/BP 4.37 (Dam Safety), and OP/BP 7.50 (Projects on International Waterways). An Environmental and Social Management Framework has been prepared to address the range of potential environmental and associated social issues associated with the development of small scale water resources infrastructure. The ESMF provides a common framework to screen all potential investments in order to assess any potentially negative environmental or social issues, and includes the requisite provisions for protecting and mitigating any potential negative impacts in line with World Bank safeguard policies and national requirements under ZEMA.
62. Interventions are being identified and designed in consultation with local communities and specific assessments will be carried out for investments as determined during the screening process. Investments will be restricted to those less than 10 meters in height or store less than 1 million cubic meters of water at full supply level. The ESMF indicates the corresponding mitigation and enhancement measures for each type of environmental and social impact identified (whether negative or positive). This includes (mostly highly positive) impacts upon natural habitats, issues relating to integrated pest management (addressed in detail in the Pest Management Plan) and careful pesticide use, and chance finds procedures for any physical cultural resources that might be discovered during construction activities. ESIAs/ESMPs will be prepared during implementation once sites and works are finalized.
63. The Resettlement Policy Framework (RPF) for the overall project will specify the basic principles and procedures to be followed in the event that investments would lead to involuntary relocation of project affected people, loss of assets and access to assets. Land acquisition may be required to facilitate the development of some small scale water resources infrastructure. Physical relocation will be determined based on individual site characteristics during the screening in accordance with the provisions of the environmental and social management framework. RAPs will be prepared during project implementation, as and when necessary.
64. The ESMF, PMP, and RPF have been publicly disclosed through the Ministry of Mines, Energy and Water Development website and have been publicly consulted upon in Lusaka on January 31, 2013. The PMP and RPF were submitted to the InfoShop for disclosure on February 07, 2013; the ESMF was submitted to the InfoShop on February 17, 2013.
65. Stakeholder participation in the development of small scale water resources is central to the success and sustainability of interventions. Building on Government’s existing systems and experience, the guidelines for development of small scale water resources projects provide a uniform framework for ensuring stakeholder engagement and directing community mobilization measures. The 2011 Water Resources Management Act includes specific provisions for the establishment of Water User Associations to promote the participation of communities in water resources management and ensure gender mainstreaming in the decision-making process relating to the use of water. The WUA are mandated with functions to support water resources management, including the local water management plans along with investigating and dealing with disputes relating to the use of water.
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66. Capacity to plan and implement the environmental and social measures required under the project is limited. The Ministry has limited experience in overseeing implementation of activities and the World Bank’s environmental and social safeguard policies. Safeguards training for project staff and other relevant stakeholders is planned to take place during the first year of project implementation, with resources provided under the project to support additional capacity and just-in-time support as might be required during implementation.
67. The project triggers OP/BP 7.50 (Projects on International Waterways). Notification of the project was sent to all riparian states within Zambezi River and Congo River basin (i.e., Angola, Botswana, DR Congo, Malawi, Mozambique, Namibia, Tanzania, and Zimbabwe) on January 07, 2013 by the Bank following a request from the Government of the Republic of Zambia. It is envisioned that the project component aimed at addressing the water resources infrastructure deficit may have implications on International Waterways. Sub-projects under this component are not anticipated to adversely change the quality or quantity of water flows to the other Riparian States and will not be adversely affected by the use of water by other Riparian States. The development of these projects will be subject to the application of an ESMF and any studies supported under the project will be shared with Riparian States in accordance with the provisions of the SADC Revised Protocol and World Bank operational policies during implementation. This notification and request for any official comments was carried out in compliance with the Revised SADC Protocol on Shared Watercourses and meets those under OP 7.50 on Projects in International Waterways. No objections have been raised by any of the riparian states.
D. Monitoring & Evaluation
68. The MMEWD has developed a monitoring framework within the context of national reporting system for the Sector Advisory Group and the sub-groups on water resources infrastructure, water resources development management and capacity. This provides the basis for an agreed reporting framework for the national water resources initiatives. The framework was elaborated in consultation with stakeholders to measure performance and track outcomes of interventions in the water sector. The project’s monitoring and evaluation framework (Annex 1) uses a sub-set of these sector-level indicators and as such is fully aligned with the sector M&E system.
69. Monitoring of specific activities will be the responsibility of the DPI within the MMEWD as part of their responsibilities for the overall sectoral coordination and planning functions. A designated M&E officer will be identified within the MMEWD to ensure integration of information from the relevant implementing and beneficiary agencies within the national monitoring framework for the sector. Support will be available under the project resources to support as needed. Standard reporting formats will be developed and included in the PIM. Semi-annual reports will be submitted to the Bank reflecting progress on the national system and the subset of project specific indicators.
E. Role of Partners (if applicable)
70. Zambia has well established mechanisms for ensuring coordination and alignment between different partners. The Sector Advisory Groups (SAGs) have been established as consultative forums comprising representatives from key stakeholders active in a particular sector. The stakeholders involved in SAGs include Government, Cooperating Partners, Civil Society Organizations and representatives of the Private Sector. The decision on the exact make-up of
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the SAG is left to those at that level. At present there are 20 SAGs formally established covering various areas. The SAGs are involved in the formulation of the National Development Plans and expected to play a key role in the implementation and monitoring.
71. The Bank is co-lead for the sector, with specific responsibility for water resources, and has formulated a collaborative process that started with development of a Country Water Resources Assistance Strategy (CWRAS) for Zambia. This aimed to outline an explicit program of Bank lending and non-lending support in water tailored to country circumstances, consistent with the Bank’s CAS and the Government’s national poverty reduction strategies
72. The CWRAS was intended to support the Government’s continued efforts toward achieving the objectives of the NDP by supporting the principles and inter-sectoral interventions outlined in the Government’s IWRM&WE Implementation Plan and other national strategic and policy initiatives in the water sector. The CWRAS used an iterative, consultative process to identify the prioritized set of actions in the water resources sector recommended for financial and technical support by the Bank and thus contributes to further prioritization of the Government’s plans on water resources development and promotion of coordination and harmonization among co-operating partners in the sector.
73. There are no formal co-financing arrangements under the project. However, a number of cooperating partners active in the water sector are providing parallel co-financing in support of water resources and operationalization of the Water Resources Management Act. These include long-term support from DANIDA, which has been central to supporting preparation and upon which a number of lessons have been derived. The African Water Facility is also providing grant resources to support a series of guidelines for facilitating investments in small scale water resources infrastructure while the German Development Cooperation is providing support through KfW, GIZ and BGR.
Project Stakeholder Risks Description : Adoption of local infrastructure interventions will be critical to reducing the risk to potential beneficiaries in rural areas to the vagaries of hydro-climatic variability. Potential beneficiaries may fail to appreciate the time needed to realize specific interventions. Remote nature of investments and multi-sectoral nature of interventions increase complexity.
Rating Moderate Risk Management: Enhanced communications and timely engagement with local communities, district councils and a realistic planned program of investments will be used to manage expectations and ensure implementation of prioritized infrastructure investments. The Sector Advisory Group, Project Steering Committee and district/community level planning processes will be engaged through provincial and district water officers and through the new catchment management agencies and water user associations as they become established. Coordinated, local level support through district planning processes will be required to ensure the success of interventions in remote areas and to realize multi-sectoral benefits.
Resp: GRZ Stage: Impl. Due Date : Status: ongoing
Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating: Substantial Description: Limited staff numbers and increasing responsibilities, coupled with an ambitious reform agenda, impose challenges for the exiting staff compliment. Transition associated with institutional reforms and establishment of the new Authority and Department may create uncertainty and undermine capacity in the short term.
Risk Management: The project has been prepared by staff within the Ministry with little external assistance being brought in. However, implementation includes provisions for an integrated project management team to support planning and execution of the project. Additional provisions for technical assistance and short term support have been included to supplement capacity when and where needed during implementation. Training programs and strategic partnerships (such as with the ESA) will help further enhance capacity during implementation.
Resp: WB, GRZ Stage: Impl. Due Date : 2018 Status: ongoing Governance Rating: Substantial Description: The large number of local interventions envisaged in small scale water resources infrastructure introduces the possibility for fraud and corruption. The interventions are intended to be national, including decentralized structures to support catchment management and local, small-scale infrastructure investments. There is a risk that prioritization could be determined by political
Risk Management: The formulation of catchment management plans, supported by development of planning tools and decision support systems, linked to local level district planning processes will strengthen governance at the local level. These will be aligned through the district and provincial level planning process and approved through the Provincial Development Coordinating Committees. Governance will be supported through the enhanced national water resources planning instruments, linked to remote sensing information and water rights monitoring. Local structures envisaged under the Act and supported through the project, such as catchment management agencies and water user associations will help improve local
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priorities and not technical or demand driver criteria.
governance structures. Rigorous planning procedures being implemented along with improved infrastructure registry and water rights allocation system. This is being supported by remote sensing applications that will increase oversight and will be supplemented by physical verification through regular monitoring and evaluation of field sites. Resp: WB, GRZ Stage: Impl. Due Date : n/a Status: ongoing
Project Risks Design Rating: Moderate Description: Prioritization of small water resources infrastructure may not be done in accordance with transparent, consultative mechanisms. Focus on institutional functions allows time for institutional transition but there is a risk that the transition may not be aligned within the same time frame.
Risk Management: The project is designed around supporting enhancement of core functions that can be aligned to meet the pace of the institutional transitions. Implementation plan and Government commitment continually re-assessed. Prioritization of small scale water resources infrastructure is carried out in accordance with spatial information and through consultative district planning processes to ensure transparency and equity. Technical criteria applied to the screening of district level requests ensures feasibility and sustainability. These criteria are formalized through adoption of technical manuals integrated as part of the PIM. Resp: WB, GRZ Stage: Impl. Due Date : n/a Status: ongoing
Social & Environmental Rating: Moderate Description: Potential that number of small water resources infrastructure may have potential cumulative impacts if not properly planned and sited.
Risk Management: AnESMF,PMP,andRPFhavebeenpreparedfortheproject.TheprojectisusingtheFAOGuidelinesforSmallDams,whichincludesmeasuresfordamsafety.Aripariannotificationhasbeensenttobasinpartners.The project is aimed at supporting the implementation of an integrated framework for water resources management and so intended to have an overall positive impact on the sustainable development of water resources. Development of remote sensing tools during preparation assisting to identify infrastructure and guide any new small dam investments. Resp: GRZ Stage: Prep& Impl. Due Date : n/a Status: ongoing
Program & Donor Rating: Moderate Description: There are a number of active Cooperating Partners in the water sector with the risk that some activities may be duplicated.
Risk Management: The CPs meeting regularly in accordance with the aid architecture in Zambia. This, along with the Sector Advisory Group, helps facilitate coordination. Strong Government leadership aligned with priorities established under the National Development Plan also help in differentiating contributions among support from the CPs. Resp: WB, GRZ Stage: Prep & Impl. Due Date : n/a Status: ongoing
Delivery Monitoring & Sustainability Rating: Substantial Description: Project interventions are intended to be national and include specific investments and institutional measures in remote areas. The project is intended to strengthen the new
Risk Management: Robust, standardized monitoring systems linked to the development of enhanced hydrological monitoring systems and water rights database will be used to ensure monitoring of investments in small scale infrastructure. The economic and financial tools developed during preparation as part of the PER provide foundations for annual assessments of project beneficiaries. Sustainability will be supported through scaling interventions to align with Government’s recurrent budget allocations and the revenue streams of the Water Resources Management Authority.
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institutional and governance arrangements for water resources.
Resp: WB, GRZ Stage: Impl. Due Date : n/a Status: ongoing
Overall Risk Ratings:
Implementation Rating: Substantial Comments: The Substantial risk rating reflects the sustained engagement and support from the country office, increasing familiarity with the Bank systems and renewed commitment through political prioritization associated with implementation of the Water Resources Management Act passed in Feb 2011 and operationalized in Oct 2012.
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Annex 5: Implementation Support Plan 1. Strategy and Approach for Implementation Support. The strategy for implementation support is designed to facilitate sustainable and technically sound implementation of the activities under each respective project component and to mitigate the risks associated with each. Implementation support will provide expertise, through consultancies and project staff funded under the Project, on the technical aspects of strengthening water resources management, on the financial management of an evolving water resources management agency, and on institutional support to the Water Resources Management Authority through its transitional period. Support for interagency cooperation and review of key procurements will also be a major focus of implementation support. Semiannual implementation support missions may be supplemented by additional visits as required.
2. Implementation Support Plan. Technical support will comprise a major focal point of support for activities under all three project components. In particular, the activities under Components A and B will require the input of technical water resources experts who are familiar with hydrological monitoring and forecasting techniques and equipment, surface waterbody identification with remote sensing techniques, flood forecasting and early warning systems, and the implementation of a system to allocate, monitor, and collect revenue from water usage. Such staff may include, as required, experts on hydropower, remote sensing, financial management, policy design, and hydrology. Safeguards specialists from the Bank will provide support to the implementing agencies to ensure compliance. Additionally, the Bank team will explore opportunities to collaborate with partners in the region, especially the riparian nations and the transboundary river basin organizations that exist on the international river basins of which Zambia is a part. The team will maintain regular contact with the Project’s focal points, Managers, and Activity Coordinators in the implementing agency, and will monitor progress against the agreed work plan through quarterly joint reporting.
Main focus of support to implementation during:
Time Focus Skills Needed Resource Estimate
First twelve months
- Updating water bodies database - Reviewing ToRs and procurement documents for water resources projects - Supporting Procurement, - Supporting FM, - Designing key implementation plans, - Supporting institutional developments - Guiding legal and institutional reforms - Project management
Remote sensing Procurement Specialist FM Specialist Water Resources Management Specialist Irrigation Engineer Water Resources Modeler GIS/Information Management Specialist Social Development Specialist Environmental Specialist Legal, financial, policy
US$160,000 per year
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12 to 48 months
- Continuing project management - Support for training in use of earth observation techniques - Support to developing a system for allocating and monitoring water usage - Continued institutional support - Support small dam construction - Preparing irrigation and water resources management elements
Water Resources Management Specialist Irrigation Engineer Water Resources Modeler Civil Engineer Dam safety specialist Remote sensing/GIS Specialist Social Development Specialist Environmental Specialist Institutional specialist
US$180,000 per year
48 to 60 months
- Designing key knowledge and analytical products, - Supporting institutional sustainability - Advancing investment projects, and - Continuing project management.
Water Resources Management Specialist Irrigation Engineer Water Resources Modeler Civil Engineer Economist Remote sensing/GIS Specialist Social Development Specialist Environmental Specialist
US$120,000 per year
Skills Needed Staff Weeks/Year
No. of Trips Comments
Task Team Leader 10 As required Country office-based
Hydro/Met Specialist 4 As required Country office-based
Operations Analyst 6 As required Washington DC-based
Team Assistant 4 As required Country office-based
Environment Specialist 4 As required Country office-based
Social Specialist 4 As required Washington DC-based
Procurement Specialist 2 As required Country office-based
Financial Management Specialist
2 As required Country office-based
Communication Specialist 2 As required Country office-based
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Climate Change/DRM Specialist
6 As required Country office-based
Hydro/Met Specialist 4 As required HQ-based
Economist 2 As required Consultant
ICT Specialist 4 As required HQ-based
Cooperating partners Institution/Country Role European Space Agency European Union Training and technical support
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Annex 6: Team Composition
World Bank staff and consultants who worked on the project:
Name Title Unit Albert Tuinhoff Groundwater Specialist Consultant Andrey Gurevich Financial Analyst AFTEG Benjamin Koetz European Space Agency TIGER-NET ESA-ESRIN Bernadette Milunga Team Assistant AFMZM Bobak Rezaian Sr Energy Specialist AFTEG Cecil Nundwe Water Resource Specialist TWIAF Eric Foster-Moore Operations Analyst AFTNW Fenwick Chitalu Financial Management Specialist AFTFM Hellen M. Mofya Team Assistant AFCS3 Jens Claussen Public Expenditure Tracking Consultant Jens Sjørslev Public Expenditure Specialist Consultant John Moehl Aquaculture Specialist FAO Kristine Schwebach Social Specialist AFTCS Leonard Abrams Senior Water Resources Specialist AFTWR Lingson Chikoti Financial Management Specialist AFTFM Louise Croneborg Water Resource Management Specialist AFTN2 Lucson Pierre-Charles Team Assistant AFTWR Luis Schwarz Sr Finance Officer CTRLA Marcus Wishart Task Team Leader AFTN2 Mekuria Tafesse Water Resources Consultant AFTN2 Musole Musumali Operations Analyst Consultant Neta Walima Team Assistant AFMZM Oeyvind Lier Sr Hydropower Specialist ETWWA Pieter Waalewijn Irrigation and Water Development Specialist AFTWR Rikard Liden Sr Hydropower Specialist ETWWA Rimma Dankova Water Resource Economist AFTWR Robert Robelus Environmental Consultant AFTN2 Rogier van der Velde Geo-Information Science and Earth Observation University of Twente Satoru Ueda Dam Specialist AFTWR Sipiwe Chihame Program Assistant AFCS3 Stephen Mukaindo Counsel LEGAM Thandi Gxaba Sr Environmental Specialist AFTN2 Tim Stephens Small Dams Specialist FAO Vahid Alavian Water and Energy Advisor AFTEG Wedex Ilunga Sr Procurement Specialist AFTPE Wolfgang Chadab Sr Finance Officer CTRLA Zoltán Vekerdy Geo-Information Science and Earth Observation University of Twente
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Government Staff and Consultants who worked on the project:
Name Title Unit Tamara S. Ngoma Director a.i. Investment & Debt Management Ministry of Finance Paul Lupunga Chief Economist– World Bank Desk Officer Ministry of Finance Kawama Goma-Simumba Treasury Counsel a.i. Ministry of Finance Bwalya Anthony Senior Economist Ministry of Finance Adam Hussen Director Department of Water Affairs Peter Chola Assistant Director (Surface Water) Department of Water Affairs Christopher Chileshe Assistant Director (Water Resources Mgmt) Department of Water Affairs Howard Mpamba Assistant Director (Ground Water) Department of Water Affairs Albert Chomba Principal Water Engineer Department of Water Affairs Jonathan Kampata Principal Water Engineer Department of Water Affairs Simon Kangómba Principal Hydrogeologist Department of Water Affairs Hastings Chibuye Principal Hydro-Informatics Officer Department of Water Affairs Kenneth Nyundu Principal Water Quality Officer Department of Water Affairs Pasca Mwila Principal Hydrogeologist Department of Water Affairs Moses Gondwe Provincial Water Engineer (Copperbelt) Department of Water Affairs Joachim Mwansa Provincial Water Engineer (Southern) Department of Water Affairs Frank Ngoma Provincial Water Engineer (Lusaka) Department of Water Affairs Sunday Ngámbi Provincial Water Engineer (Western) Department of Water Affairs Stanslus Chilufya Provincial Water Engineer (Luapula) Department of Water Affairs Fred Mulenga Provincial Water Engineer (Central) Department of Water Affairs George Ndlovu Provincial Water Engineer (North Western) Department of Water Affairs Mabvuto Nyoni Provincial Water Engineer (Northern) Department of Water Affairs Felix Lombe Provincial Water Engineer (Eastern) Department of Water Affairs Reuben Zulu Director Department of Planning & InformationMumbuwa Munumi Chief Planner Department of Planning & InformationPetronella Miti Senior Planner Department of Planning & InformationBwalya Sashi Senior Planner Department of Planning & InformationMutinta Diangamo Planner Department of Planning & InformationIsabel Miyanda Planner Department of Planning & InformationAbigail Bwanga Planner Department of Planning & InformationMwindilila Maimbo Secretary Water Board Flora Simumba Senior Hydroinformatics officer Water Board Festus Sikanyika Engineering Assistant Water Board Paul Chanda Director Department of HR and AdministrationTiza Nkumbuka Assistant Director Department of HR and AdministrationGoodson Kamanga Senior Human Resources Development Officer Department of HR and AdministrationDerrick Wina Senior Human Resources Management Officer Department of HR and AdministrationJoseph Mutimushi Principal Accountant a.i. Department of HR and AdministrationMathias Mkandawire Procurement Officer Procurement and Supplies Unit Connie Kumwenda Purchasing and Supplies Officer Procurement and Supplies Unit Tandiwe Zulu Purchasing and Supplies Officer Procurement and Supplies Unit Diana Zulu Assistant Purchasing and Supplies Officer Procurement and Supplies Unit Mukelabai Mukubesa Assistant Purchasing and Supplies Officer Procurement and Supplies Unit Everlyn Lumbo Purchasing and Supplies Assistant Procurement and Supplies Unit Joseph Mutimushi Principal Accountant Accounts Unit Agness Mwanza Senior Accountant Accounts Unit
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Allan Banda Accountant Accounts Unit Petros Phiri Assistant Accountant Accounts Unit Felix Kasote Senior Internal Auditor Audit Unit Mary Chipili Director Department of Agriculture George Sikuleka Chief Irrigation Officer Department of Agriculture Cornelius Sitali Principal Engineer Department of Agriculture Provincial Agricultural Officers Department of Agriculture Selected District Agricultural Officers Department of Agriculture Director Department of Field Services Deputy Director Department of Field Services Chief Field Services Officer Department of Field Services Director Department of Local Government Assistant Director Department of Local Government Director of Works –Selected Local Authorities Department of Local Government Kenneth Nkowani Director Department of Environment Ignatius Makumba Chief Environment Management Officer Department of Environment Duncan Musama Principal Environment Officer Department of Environment Angella Kabuswe Senior Environment Management Officer Department of Environment
KabweKabwe
LivingstoneLivingstone
MonguMongu
SolweziSolwezi
NdolaNdola
ChipataChipata
MansaMansa
KasamaKasama
LUSAKALUSAKA
ZAMBEZ IZAMBEZ I
TANGANYIKATANGANYIKA
KAFUEKAFUE
LUANGWALUANGWA
CHAMBESHICHAMBESHI
LUAPULALUAPULA
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C E N T R A LC E N T R A L
N O R T H E R NN O R T H E R N
E A S T E R NE A S T E R N
W E S T E R NW E S T E R N
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W E S T E R NW E S T E R N
C O P P E R -C O P P E R -
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D E M O C R AT I C R E P U B L I CD E M O C R AT I C R E P U B L I C
