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Water Policy and Related Operations

Water Policy and Related Operations

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This evaluation summary looks at the implementation of ADB’s water policy and the performance of related operations, identifies lessons and issues, and makes recommendations to inform future decision making on water sector operations in ADB’s developing member countries.
This evaluation summary looks at the implementation of ADB’s water policy and the performance of related operations, identifies lessons and issues, and makes recommendations to inform future decision making on water sector operations in ADB’s developing member countries.

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11/04/2011

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This special evaluation study assesses the implementation o ADB’s water policy and the perormance o related operations,identies lessons and issues,and makes recommendations to inorm uture decision making on water sector operations in ADB’s developing member countries.Key evaluation questions ocus on relevance, consistency, and adequacy o the water policy; ADB’s responsiveness or how it implemented the policy; and results so ar, including eectiveness in achieving outputs and outcomes, process and project efciency in resource use, and likelihood o the sustainability o  net benets.
W
ater remains one o the greatest global challenges. Signicant improvementsare needed in water management policies and practices to sustain livesand ood production, support larger urban populations, and improveenvironmental sustainability in the Asia and Pacic region and in the world.While the pressures on the world’s water resources are great, progress was madein several areas over the past decade. Many multilateral and bilateral aid agencieshave provided assistance or improving water and sanitation in developing countries.ADB, on its part, has established its water policy in response to water crisis which isclosely linked to poverty and potential regionaldisputes. The water policy treats water as both asocial and economic good and acknowledgesthe undamental distinction between “
water as a resource 
” and “
water as a service 
”. Theseprinciples help eorts to improve suboptimalnational policies and practices in the water sector. The policy supports ADB’s strategy or povertyreduction by promoting participation o the poorin water management, supports ADB’s strategyor public-private participation, and aims tocatalyze a national ocus on water sector reormin its developing member countries (DMCs).
Key Findings
Consistency and Adequacy of ADB’s Water Policy and Related Operations
n
 The policy is rated
relevant 
.
n
In general, ADB’s lending operations have refected the policy well.
n
 The ADB water policy is largely consistent with that o other multilateraldevelopment banks.
ADB’s Response to Water Sector Issues and Water Policy Implementation
n
ADB’s response to water sector issues has been sound, but in some cases slow orlimited.
n
In the area o private sector investment in the water sector, ADB has laggedbehind other multilateral lenders.
n
 The ability or willingness o governments to implement covenants has beenvariable.
n
Both public and private operations can be ecient.
n
A driving orce behind the policy and its implementation has been the water-related Millennium Development Goals.
n
Sanitation objectives are ar rom attainment.
n
Irrigation and drainage projects have proved to be among the more dicult watersubsectors, with a success rate o 54.5% overall.
n
A cautious approach is necessary in assisting DMCs in subregional cooperationto increase awareness and share international good practices in water resourcemanagement.
Achievements of ADB Assistance under the Policy
n
ADB assistance has contributed to water policy development in Asia in areassuch as water sector governance including institutional capacity development,tari reorms, regulatory ramework, and water conservation.
 Water Policy and Related Operations
Many residents in the southern Philippineisland of Mindanao do not have easy access topotable water in their homes. The MindanaoAgrarian Reform Communities Project - fundedby ADB – is helping change that.
Learning Curves
February 2011
Evaluation
Independent

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