AFRICAN DEVELOPMENT BANK GROUP · 2019-06-29 · The Bank Group on 3rd October 2013 approved a UA 6.52 million ADF loan and a grant of EUR 3.2 million (UA 2.61 million) from the RWSSI

AFRICAN DEVELOPMENT BANK GROUP

KINGDOM OF LESOTHO

LOWLANDS RURAL WATER SUPPLY AND SANITATION PROJECT

APPRAISAL REPORT

RDGS/AHWS DEPARTMENTS

May 2019

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Table of Contents

Acronyms and Abbreviations ................................................................................................ ii

GrantInformation ................................................................................................................. iii

Program Summary ............................................................................................................... iv

1.0 INTRODUCTION ...................................................................................................... 1

2.0 INITIAL PROGRAM ................................................................................................. 1

2.1 Programme Context and Origin ............................................................................... 1

2.2 Programme Objective.............................................................................................. 2

2.3 Programme Components ......................................................................................... 3

2.4 Programme Cost and Financing Arrangements ........................................................ 3

2.5 Programme Implementation Status .......................................................................... 4

3.0 REVISED PROGRAMME FINANCING ARRANGEMENTS .................................. 5

3.1 Programme Objectives and Description ................................................................... 5

3.2 Description of Additional Activities to be Carried Out ............................................ 9

3.3 Revised Estimated Programme Cost ...................................................................... 13

3.4 Revised Programme Implementation Schedule ...................................................... 14

3.5 Programme Implementation .................................................................................. 14

3.6 Procurement Arrangement for LDCF Resource: .................................................... 16

3.7 Financial Management, Disbursement and Audit Arrangements ............................ 16

3.8 Monitoring and Evaluation .................................................................................... 17

3.9 Risks and Mitigations Measures for the Additional Activities ............................... 18

3.10 Sustainability ........................................................................................................ 19

3.11 Environmental and Social Management ................................................................ 20

3.12 Climate Change....................................................................................................... 22

4.0 RATIONALE FOR ADDITIONAL FINANCING ................................................... 22

5.0 LEGAL INSTRUMENTS AND COMPLIANCE ..................................................... 23

5.1 Legal Instruments.................................................................................................. 23

5.2 Conditions associated with the Bank Intervention ................................................. 23

5.3 Compliance with Bank Policies ............................................................................. 23

6.0 RECOMMENDATION ............................................................................................ 23

Annex 1: GEF PIF Approval .................................................................................................. I

Annex 2: Government Request to the Bank for Project Financing Proposal ........................... II

Annex 3: Detailed Additional Programme Activities and Costs: .......................................... IV

Annex 4: Detailed Logframe for the LDCF Activities .......................................................VIII

Annex 5: Implementation plan for additional financing .....................................................XIII

Annex 6: Summary of Procurement Arrangements for Additional Financing ................... XVII

Annex 7: GEF CEO Endorsement Letter .......................................................................... XIX

Annex 8: Water and Environment Institutional Frame work ............................................... XX

Annex 9: Map of the Program Area (LDCF) .................................................................... XXI

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Currency Equivalents As of March 2019

1 USD = 13.8700 LSL

1 USD = 0.7200 UA

1 LSL = 0.0500 UA

Fiscal Year 1st July – 30th June

Weights and Measures

1 metric tonne = 2204 pounds (lbs)

1 kilogramme (kg) = 2.200 lbs

1 metre (m) = 3.28 feet (ft)

1 millimetre (mm) = 0.03937 inch (“)

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

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Acronyms and Abbreviations AfDB African Development Bank ADF African Development Fund AMAT Adaptation Monitoring and Assessment Tool AG Auditor General APR Annual Progress Review AR5 Fifth Assessment Report (IPCC) CoW Commissioner of Water CPPR Country Performance Review CSI Core Sector Indicator CSP Country Strategy Paper DP Development Partner DRWS Department of Rural Water Supply DWD District Water Department EIRR Economic Internal Rate of Return ESMP Environmental and Social Management Plan EUR Euro GEF Global Environment Facility GFS Gravity Flow Scheme GIS Geographic Information System GoL Government of Lesotho GPN General Procurement Notice HIV/AIDS Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome ICB International Competitive Bidding IFMIS Integrated Financial Management Information System IFR Interim Financial Report IPCC Intergovernmental Panel on Climate Change IQPR Interim Quarterly Progress and Finance Report ISP-PFM Institutional Support Project - Public Finance Management IWRM Integrated Water Resources Management KM Knowledge Management LDCF Least Developed Countries Fund LDC Least Developed Country LEWA Lesotho Electricity and Water Authority LLRWSSP Lesotho: Lowlands Rural Water Supply and Sanitation Project M&E Monitoring and Evaluation MDG Millennium Development Goal MDWSP Metolong Dam Water Supply Programme MEMWA Ministry of Energy, Meteorology and Water Affairs MoH Ministry of Health MTR Mid-Term Review NAPA National Adaptation Programme of Action NCB National Competitive Bidding NGO Non-Governmental Organization NPV Net Present Value NSDP National Strategic Development Plan PAR Project Appraisal Report PCR Programme / Project Completion Report PIF Project Identification Form PIT Project Implementation Team PSC Project Steering Committee PU Procurement Unit RBCSP Results Based Country Strategy Paper RWS Rural Water Supply RWSSI Rural Water Supply and Sanitation Initiative SPR Sector Performance Report ToT Training of Trainers UA Unit of Account UNFCCC United Nations Framework Convention on Climate Change USD United States Dollar VIP Ventilated Improved Pit (latrine) VFM Value for Money VWHC Village Water and Health Committee WASCO Water and Sewerage Company (Pty) Ltd WASH Water, Sanitation & Hygiene

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Grant Information

Client’s information

RECIPIENT: Kingdom of Lesotho

EXECUTING AGENCY: Lesotho Ministry of Energy, Meteorology and Water

Affairs (MEMWA) / Commissioner of Water (CoW)

P.O. BOX 772 MASERU 100

Tel: +266 22322334

Financing plan*

GEF/LDCF 3.14 m UA (4.42 m USD) Grant

ADF 6.52 m UA (9.89 m USD) Loan (already approved)

RWSSI Trust Fund 2.772 m UA (4.20 m USD) Grant (already approved)

World Bank 0.795 m UA (1.21 m USD) Loan (already approved)

Kingdom of Lesotho 1.287 m UA (1.95 m USD) In-kind

TOTAL COST 14.52 m UA (21.67 m USD)

* UA figures according to current exchange rates of USD committed at the time of the Project Identification

Form approval of the LDCF project by the GEF

ADF’s key financing information

Grant currency USD

Interest type* N/A

Interest rate spread* N/A

Commitment fee* N/A

Other fees* N/A

Tenor 48

Grace period N/A

EIRR, NPV (base case) 13%, 1.4 million LSL *if applicable

Timeframe - Main Milestones (expected)

GEF PIF approval 24 March 2017

Project approval (LLRWSSP) 3rd October 2013

Project approval (LDCF financing) May 2019

Signing of Grant Agreement (LLRWSSP) 15th May 2015

Signing of Grant Agreement (LDCF financing) June 2019

Effectiveness (LLRWSSP) 31st March 2015

Effectiveness (LDCF financing) June 2019

Mid-term Review (LLRWSSP)

Mid-term Review (LDCF financing) December 2020

Last Disbursement (LLRWSSP) 30th March 2021

Completion (LLRWSSP) 30th September 2020

Completion (LDCF financing) June 2023

Last repayment 2063

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Project Summary

The Bank Group on 3rd October 2013 approved a UA 6.52 million ADF loan and a grant of

EUR 3.2 million (UA 2.61 million) from the RWSSI Trust Fund to the GoL to finance the

implementation of the Lesotho: Lowlands Rural Water Supply and Sanitation Project

(LLRWSSP). The loan and grant entered into force on 30th September 2014 and 15th May

2015 respectively, and effectiveness for the first disbursement was declared on 31st March

2015 for both the Loan and the Grant. The first disbursement for the grant was effected on 25th

September 2015 while for the loan it was on 26th June 2017. The project was originally set for

closing on 31st December 2017 while the loan and grant disbursement closing date was 30th

September 2018. Subsequent to a supervision mission that concluded on 4th October 2017, the

project closing date was extended by one year to 30th September 2019, and further extended to

June 2020 to enable inclusion of localities within the project, that were initially excluded. The

current disbursement on the Loan as at January 2019 is 51.22%, whilst that for the Grant is

37.29%. The LLRWSSP will also benefit from an additional funding commitment from the

Least Developed Countries Fund (LDCF)1 for a financing of USD 4.42 million (or about UA

3.14 million) to help with the following: i) Identifying Climate Risks and Reducing

vulnerability to climate change in the water sector for communities in the project area; ii)

Capacity Development for Improved Water Resources Management; iii) Awareness Raising of

Local Communities on Climate Change Adaptation; and iv) Knowledge Management and

Monitoring and Evaluation.

The initial LLRWSSP is located in the Districts of Berea and Maseru along routes of the

Metolong Dam Water Supply Programme (MDWSP), and consists of primary and secondary

pipes basic rural water and sanitation infrastructure, environmental health support for

communities in the project area, and capacity building and project management. The project

was initially expected to be implemented over 48 months beginning December 2013 at a cost

of UA 11.374 million. The project will benefit some 65,000 inhabitants of the area who are

currently served with inadequate levels of safe water supply and sanitation that resulted from

growth in demand since the last expansion of services as well as connecting government and

private institutions such as schools, health centres, local courts, lodges, rest houses, etc. serving

neighbouring rural villages. In terms of shortfall in per capita supply, proximity to water points

and condition of facilities, the estimated percentage of supply is 25%, equivalent to a

population of 16,250. Residents of the areas currently have to contend with intermittent

supplies from under capacity boreholes, with hand pumps, under capacity reticulation from

springs or mechanized boreholes.

The specific objective of the project is to increase coverage in the project area by providing

improved, sustainable, equitable and inclusive access to water supply and sanitation to an

estimated 65,000 population in Maseru and Berea districts where major bulk water supply

infrastructure is being developed with support from other Development Partners (DPs) The

project has four components, namely: (i) Water Supply Infrastructure Development; ii)

Sanitation and Hygiene; iii) Institutional Support and Capacity Development; and (iv) Project

Management. It is expected to contribute to the overall well-being of the population through a

1 The Least Developed Countries Fund (LDCF) was established on directives to the Conference of the Parties to the United Nations

Framework Convention on Climate Change (UNFCCC) at its seventh session to address the needs of least developed countries (LDCs) under

the Convention on Climate Change. Absolute priority is accorded to adaptation and particularly the financing of the preparation and

implementation of National Climate Change Adaptation Programs of Action (NAPAs). The Fund’s objective is to finance projects that address

the urgent and immediate climate change adaptation needs of LDCs by seeking to reduce the vulnerability of sectors and resources which are

essential to social progress and national development such as water, agriculture and food security, health, the management and prevention of

catastrophic risks, and infrastructure, as have been identified and prioritized in NAPAs.

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guaranteed supply of adequate quantities of drinking water at reasonable distance to

households, minimize the risks of spread of water related diseases, and reduce the burden of

water collection for women, girls, and members of households of vulnerable families. The

beneficiaries will participate in implementation through participatory planning and monitoring

of the project through the village leadership structures and through shouldering the cost of

individual connections.

The project is an extension of the MDWSP promoting the Bank’s Integrated Water Resources

Management (IWRM) policy. The project promotes the use of existing water resources on an

equitable and sustainable manner and extends the benefit from the MDWSP to the rural

population. Bank involvement would therefore add value to the sector dynamics based on its

rich experience. The Project also promotes donor coordination as it complements the

intervention under MDWSP supported by nine donors.

GEF LDCF financing was approved for additional components on the 22 October 2018 that

will complement the ongoing LLWRSSP. This complementary financing will allow

implementation of new elements that support Basotho communities to improve their resilience

to climate change and ability to respond to the effects of reduced rainfall as well as supporting

the construction of more resilient infrastructure and more sustainable natural resource

management practices, including catchment management. The project area has also expanded

beyond the initial Berea and Maseru districts to include a catchment area located upstream of

the areas targeted by the LLWRSSP.

This supplementary financing is in line with the Bank’s Country Strategy Paper 2013-2017

Pillar I, which aims at “strengthening the competitiveness and growth of Lesotho’s economy”,

in part by promoting sustainable water resource management practices, and Pillar II, which

aims to support institutional capacity building in Lesotho’s public sector.” In addition, this

additional financing is in line with Pillar 2 (adaptation) of the Bank’s second Climate Change

Action Plan 2016-2020 (CCAP2), which aims to ensure low-carbon and climate resilient

development across the African continent, and will strengthen the sustainability of the project’s

main objectives.

Management hereby submits the following Report and Recommendation for implementation

of a Global Environmental Facility (GEF)/Least Developed Country Fund (LDCF) grant of US

Dollars 4,416,210 (equivalent to UA 3,143,903) as funds to the Lowlands Rural Water Supply

and Sanitation Project in Lesotho for the Climate Change Adaptation for Sustainable Rural

Water Supply in Lowlands.

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INVESTMENT PROGRAMME RESULTS FRAMEWORK:

COUNTRY AND PROJECT NAME – LESOTHO: LOWLANDS RURAL WATER SUPPLY AND SANITATION PROJECT: CLIMATE CHANGE ADAPTATION FOR

SUSTAINABLE RURAL WATER SUPPLY IN LOWLANDS LESOTHO PROJECT

RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF

VERIFICATION RISKS / Mitigation measures

Indicators Baseline Target

Imp

act Improved quality of life and

livelihood of rural communities, and poverty reduction

National RWSS coverage water 73% (2010) 85% (2020)

NSDP M&E

The risk of diminished political commitment may slow down progress and affect functionality. This will be mitigated through effective capacity building at community, council and district level while pursuing policy dialogue with GoL along with other partners and contribution to the implementation of the NSDP. The risk of sustainability of the project (including cost recovery) will be mitigated through the mobilisation of the communities and their engagement throughout the project development process. The project is incorporating (i) the development of gender and social responsive communication strategies, (ii) sensitization of communities towards engaging with private operators to manage the water system; (iii) a clear approach regarding cost recovery in operation and maintenance. Risk of inefficient operation and maintenance of rural water supply systems will be mitigated through building capacity of the community structures and introducing professional community and/or private service providers and through adequate system and guideline development. The risk of timely implementation of the tertiary lines under the MDWSP will be mitigated through closer collaboration with the Metolong Authority and financing development partners. The risk of capacity constraint and associated delay in project implementation will be

sanitation 24% (2010) 66.1% (2020)

Population below poverty line 49.1% (2010) 20.9% (2020)

Under five mortality per 1000 117 (2009) 70 (2020)

Outcome 1: Increased and sustained access to improved water supply and sanitation services

No. of people with access to safe and reliable water in the project area (to be disaggregated by gender)

16,250 (2012) 65,000 (2017) 84,000 (2021)*

DRWS M&E system

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No. of households with access to improved sanitation facilities in the project area (disaggregated by gender of head of households)

3,250 (25% by 2012) 7,800 (60% by 2017)

MoH statistics / M&E system

Outcome 2: Equitable and inclusive improved hygiene practices in the project area

% of people practicing good hygiene in the project area - disaggregate by gender

25% 45% (2017, 52% of them women)

Project M&E system, regular social behaviours studies to support M&E

% of Students practicing good hygiene - disaggregated by gender

50% 100% (2017) - 47% girls

Outcome 3: Improved community management of water supply and sanitation facilities

No. of villages / communities having organised private / community operators

0% 85% (2017)

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Component 1: Water Supply Infrastructure

Project M&E system, quarterly project progress report, construction reports

Output 1.1 Water supply systems constructed and rehabilitated

No. of water supply systems constructed

0 9 (2017)

Length in Km of pipeline constructed

0 200 (2017)

No. of storage facilities constructed

0 27 (540m3)

No. of public water points constructed

0 450

Number of districts with climate impact and adaptation plans prepared**

0 2 (by 2022)

Risk and vulnerability assessment carried out [GEF Adaptation Indicator 6]**

0 1 (by 2022)

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Indicators Baseline Target

Number of additional boreholes established / upgraded [Contributes to GEF Adaptation Indicator 4]**

0 59 (by 2022)

mitigated by complementing the staff of the DRWS by appointing external key staff and training them in project management. Furthermore, to enhance implementation capacity, the community mobilisation and sensitisation will assist in ensuring participation by communities. Delay of MDWSP and the tertiary lines is a potential risk affecting the project. However, MDWSP is at an advanced stage and financing for the tertiary lines is in place. ** Risk: Increased climate variability exceeds the design parameters of the project infrastructure. Mitigation: Take a multi-pronged approach to reducing vulnerability to climate impacts by increasing knowledge and awareness of climate change, promoting conservation and demand management, establishing more reliable water supplies and supporting alternative livelihood activities to strengthen community resilience to transient shocks. **Risk: High dependence on natural resources and weak coping mechanism. Mitigation: Improved human skills and capacity to diversify livelihoods.

Number of rainwater harvesting systems installed [Contributes to GEF Indicator 4]**

0 12 (by 2022)

Number of additional hydro-meteorological & rain gauge stations installed [Contributes to GEF Indicator 4]**

0 10 (by 2022)

Improved early warning systems deployed

0 1 (by 2022)

Component 2: Hygiene and Sanitation

Project M&E system, quarterly project progress report, supervision mission reports

Output 2.1 Promotion and Education in hygiene and health

No. of people educated, reached and trained

0 65,000 (by 2017)

Number of national institutions with technical staff trained in climate change resilience for the water sector [GEF Adaptation Indicator 10]**

0 10 (by 2017)

Output 2.2. Public latrines (disability compliant) constructed (gender disaggregated)

No. of latrine units for male 0 36 (by 2017)

No. of latrines units for female 0 36 (by 2017)

Output 2.3 VIP latrines for vulnerable house holds

No. latrines (household headed by older, single or double orphans, disabled)

0 280 (by 2017)

Component 3: Institutional support and Capacity building

Project M&E system, quarterly project progress report, supervision mission reports

Output 3.1 Development and Implementation of Operational Strategies

Cost recovery communication and gender responsive public information strategy

none yes by 2015

Strategy and framework for bringing-on-board private / community operators

none yes by 2015

Strategy for financing rural sanitation services

none yes by 2015

Number of climate resilience strategy documents prepared**

0 3

Comprehensive RWSS Implementation (including

partial yes by 2015

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Indicators Baseline Target operation and maintenance) gender sensitive community guidelines / manual

Output 3.2 Training and stakeholder mobilization (taking into account gender analysis and gender roles)

Training of Trainers (TOT) hygiene and sanitation, and community mobilisation (No)

0 25

Training and technical assistance for establishment of private and community operators

0 9

Established and trained VWHC, 30% women

0 85 (2015)

Number of people trained on climate change and adaptation options (% women / % men)**

0 5,000 (52%F)

Output 3.3 Strengthening of M&E system

M&E and GIS functional not yet Yes by 2015

Annual Sector Review Held not every year Annual

Sector M&E reports generated not yet Yes by 2015

Component 4: Project Management

Project M&E system, quarterly project progress reports, supervision mission reports

Project oversight and management team

Project implementation team in place

not yet by Sept 2013

Project Steering Committee in place

exists but inactive by Sept 2013

Monitoring and reporting system

Project area baseline validated none by July 2014

Project M&E system established none by July 2014

Regular Project Progress Reports N/A from 1st Q 2014

Number of Lessons Learned Reports prepared and disseminated**

0 5

Project audit Project Audited N/A annual

Key

Acti

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Components Inputs

Component (1) Water supply infrastructure Component 1: 7,713 Component 2: 1.078 Component 3: 1370 Component 4: 1,298 Total: 11,374

Component (2) Environmental, Sanitation and Hygiene Promotion

Component (3) Institutional support and Capacity building

Component (4) Project Management

** These are indicators and risks added as linked with the LDCF additional resources

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REPORT AND RECOMMENDATION OF MANAGEMENT CONCERNING A

PROPOSAL FOR THE GRANT TO THE KINGDOM OF LESOTHO FOR THE

LOWLANDS RURAL WATER SUPPLY AND SANITATION PROJECT

Management hereby submits the following Report and Recommendation for

implementation of a Global Environmental Facility (GEF)/Least Developed Country

Fund (LDCF) grant of US Dollars 4,416,210 (equivalent to UA 3,143,903) as funds to the

Lowlands Rural Water Supply and Sanitation Project in Lesotho for the Climate Change

Adaptation for Sustainable Rural Water Supply in Lowlands.

1.0 INTRODUCTION

1.1 The Bank Group on 3rd October 2013 approved a UA 6.52 million ADF loan and a

grant of EUR 3.2 million from the RWSSI Trust Fund2 to the Kingdom of Lesotho to finance

the implementation of the Lesotho: Lowlands Rural Water Supply and Sanitation Project

(LLRWSSP). The loan and grant entered into force on 30th September 2014 and 15th May 2015

respectively, and effectiveness for first disbursement was declared on 31st March 2015. The

expected outcomes of this finance comprise:

Increased and sustained access to improved water supply and sanitation services;

Equitable and inclusive improved hygiene practices in the project area; and

Improved community management of water supply and sanitation facilities.

1.2 The LDCF/Special Climate Change Fund (SCCF) Council on 24th March 2017

approved the LDCF Work Program including the Project Identification Form (PIF) for the

Lesotho: Climate Change Adaptation for Sustainable Rural Water Supply in Lowlands Lesotho

(GEF ID: 8014) project, for an indicative LDCF grant of US $4,416,210. The GEF CEO’s

endorsement was received on 22 October 2018. The additional funding will climate proof the

ongoing LLRWSSP in Maseru and Berea Districts, and enhance security of water supply for

communities in the upstream catchment area supplying the baseline project.

2.0 INITIAL PROJECT

2.1 Project Context and Origin

2.1.1 To realize its Vision 2020, the Government of the Kingdom of Lesotho (GoL) prepared

its National Strategic Development Plan (NSDP) for the fiscal period 2012/13 to 2016/17. The

key pillars of the NSDP are to (i) pursue inclusive growth; (ii) develop key infrastructure; (iii)

enhance skills base, technology adoption and foundation for innovation; (iv) improve health,

combat HIV and AIDS and reduce vulnerability; (v) reverse environmental degradation and

adapt to climate change; and (vi) promote peace and democratic governance and build effective

institutions. Under the infrastructure pillar, the NSDP identifies rehabilitation and development

of water supply and sanitation as one of the key priority areas for promoting economic growth

and reducing poverty.

2 The PIF for ID 8014 provides the following figures based on the then-current UA/USD exchange rate: AfDB

Loan USD 9,890,000 (equivalent to UA 7.04 million based on November 2017 exchange rate) and RWSSI Grant

USD 4,200,000 (equivalent to UA 2.99 million based on November 2017 exchange rate).

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2.1.2 In the recent past, the country has undertaken a series of water sector reforms and re-

organization to strengthen regulatory, service provision, coordination and decentralisation and

achieve its vision. Lesotho revised its national Water Policy in 2007 and approved the Water

Act in 2008. These policy measures were implemented through the interim strategy for the

water and sanitation sector. The GoL has now embarked on developing its long-term water

sector strategy to consolidate the gains made so far and achieve its ultimate objective of

universal access embodied in the country’s Vision 2020. The long-term strategy under

development puts emphasis on building capacity to translate the water policy and Vision 2020

into action and strengthen the sector’s M&E system. The project was designed to contribute to

the implementation of this long-term strategy through capacity building, strengthening

monitoring and evaluation both at Project and sector levels, and enhancing service delivery

models for rural water supply and sanitation.

2.1.3 Within the context of the Bank’s Ten Year Strategy (2013 - 2022) and in view of the

country priorities, the Country Strategy Paper for Lesotho (CSP 2013-2017) identifies

infrastructure development and institutional capacity building as the pillars of the Bank

Group’s engagement in Lesotho. The provision of water and sanitation services is among them

and Lesotho is determined to achieve its Vision 2020 objective of providing universal access

to water supply and sanitation services to its population from the level of 76.7% and 25.1% for

national water supply and sanitation respectively as of 2009. This vision is further encapsulated

in the country’s national water policy and long-term water sector strategy under development.

Consequently, the proposed intervention was included in the Bank’s 2013 Lending Program.

2.1.4 The Bank’s intervention for the LLRWSSP was justified by the fact that water supply

and sanitation provision is one of the priority areas of the country’s NSDP and it is in alignment

with the Bank’s Strategy and CSP pillars. The intervention is in rural areas and contributes to

the achievement of the inclusive objective of the Strategy with its rural. The Project aims to

source water from a system being developed from surface water and will mainly gravitate to

the villages with no additional requirement of energy. Furthermore, the project contributes to

the achievement of the Bank’s Rural Water Supply and Sanitation Initiative (RWSSI) strategic

plan (2012-2015) approved by the Board.

2.1.5 The LLRWSSP is an extension of the Metolong Dam Water Supply Programme

(MDWSP) promoting the Bank’s Integrated Water Resources Management (IWRM) policy.

The project promotes the use of existing water resources in an equitable and sustainable manner

and extends the benefit from the MDWSP to the rural population. Bank’s involvement would

therefore add value to the sector dynamics based on its rich experience. The Project also

promotes donor coordination as it complements the intervention under MDWSP supported by

nine donors.

2.2 Project Objective

2.2.1 The development objective of the project is to contribute to the achievement of the

country’s Vision 2020 objective of improved health and social wellbeing of the population

through universal access to improved water and sanitation services. The specific objective is

to increase coverage in the project areas by providing improved, sustainable, equitable and

inclusive access to water supply and sanitation to an estimated 65,000 population in Maseru

and Brea districts where major bulk water supply infrastructure is being developed with support

from other Development Partners (DPs).

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2.2.2 The LLRWSSP is expected to contribute to the overall well-being of the population

through a guaranteed supply of adequate quantities of drinking water at reasonable distance to

households, minimizing the risks of spread of water related disease, and reducing the burden

of water collection for women, girls, and members of households of vulnerable families. The

beneficiaries will participate in implementation through participatory planning and monitoring

of the project through the village leadership structures and through shouldering the cost of

individual connections.

2.3 Project Components

2.3.1 The LLRWSSP is based on a programmatic approach fully aligned to sector structures

and supports four components of the overall sector programme. The project has four

components as described below:

a) Water Infrastructure Development: This component focuses on: construction of 200 km

of trunk and distribution pipelines; 27 x 20m3 local storage reservoirs and break pressure

tanks; 450 communal water points; 1,500 private connections to households and

institutions.

b) Environmental Health, Sanitation and Hygiene promotion: this component supports:

promotion and education on health and hygiene in water and sanitation, including gender

sensitive information, education and communication (IEC) materials; construction of 36

public sanitation facilities at institutions, schools and health centres; construction of 280

Ventilated Improved Pits (VIPs) latrines for vulnerable households, (e.g. women and

orphan headed households).

c) Institutional Support and Capacity Development: under this component, the project

supports capacity building of project districts of Maseru and Berea and local communities

in various ways including: development and implementation of operational strategies for

cost recovery communication, private operator engagement, financing sanitation;

updating of RWS implementation guidelines; gender sensitive community sensitization

and stakeholder mobilization; training of VWHC and coordination committees and

strengthening sector M&E by institutionalising GIS planning tools and databases within

DRWS and its district offices.

d) Project Management: This component is responsible for project oversight and

management, monitoring and reporting system and project audit.

2.4 Project Cost and Financing Arrangements

2.4.1 The AfDB group contribution to the project for the period 2014 to 2017 was originally

valued UA 9.5 million, comprising an ADF loan of UA 6.52 and a grant of Euro 3.2 million

(equivalent to UA 3 million) from the RWSSI Trust Fund. The AfDB Group financing

contributes 81.7% of the total project costs totalling about UA 11.6 million, with the GoL and

other DPs contributing the remaining funding.

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Table 1: Financing Plan of the ADF Funds for the project (In UA million)

Components 2014 2015 2016 2017 TOTAL

Water Supply Infrastructure 91 2,469 2,916 1,017 6,494

Environmental Health, Sanitation

and Hygiene promotion 163 271 353 121 907

Institutional Support and

Capacity Building 610 183 183 177 1,154

Project Management and Eng.

Services 333 237 237 214 1,021

2.5 Project Implementation Status

2.5.1 Water Supply Infrastructure: During the April 2018 Bank supervision mission, the

Mission noted that physical progress was at about 90% against 37% payment on the works

contracts funded by the Loan, and that the contractors were fully mobilised on sites and actively

engaged with construction works. The Mission was informed that the Government was working

on establishing an institutional arrangement for managing water supply for the areas which will

benefit from the water supply works.

2.5.2 Environmental Health, Sanitation and Hygiene promotion: At the time of the April 2018

supervision mission, the draft designs and tender contracts for sanitation facilities were still

under procurement. The contract for consultants to undertake training of trainers (ToT) on

sanitation was signed 29th August 2017 and ongoing. Procurement of water quality testing

equipment was completed and delivered shortly before the supervision mission, and a shortlist

of NGOs/Consultants to undertake community sensitisation was under preparation.

2.5.3 Institutional Support and Capacity Building: At the time of the supervision mission, all

of these activities which were hitherto delayed beyond their schedule, were again ongoing in

accordance with the revised Project’s Implementation Plan. The eight apprentices engaged

under the project in April 2017 as a way of providing opportunities for the youth to be trained

for skills development continue to play active roles on the project. An additional three

apprentices will also be hired.

2.5.4 Project Management: During the April 2018 supervision mission, the Mission noted

that key personnel of the Project Implementation Team (PIT) were working on the project and

available during the mission. The mission was informed that an international Procurement

Specialist was recruited on a short term assignment to assist with moving the project forward,

and has made impactful contributions and built capacities across the DRWS, and the within the

DRWS. The Mission noted that apart from the Project coordinator who is a civil servant, the

project is implemented by recruited technical assistants who retain the project / institutional

memory. The Government has attached staff to the project for training and capacity

development of the DRWS and Government.

2.5.5 Overall programme disbursement stands at 37% and 17.32% as of April 2019 for the

ADF Loan and the RWSSI Trust Grant respectively. The loans and grant closing date were set

previously for 30th September 2018, but this has been extended to 30th September 2019 due to

accumulated delays and slow progress of procurement of goods, services and works.

5

2.5.6 The Bank’s current active portfolio in Lesotho is a total commitment of UA 41.545

million3. The performance of the portfolio has been generally rated satisfactory with a rating

of 2.23 (on a scale of 0 to 3)4, the same rating as in the 2009 Country Portfolio Performance

Review (CPPR), and an improvement on the rating of 1.97 in 2007. As at 31 December 2012,

the disbursement rate for ongoing projects was 75.4 percent (28.4 percentage points higher than

in 2009). The improved rating was attributed to project staff better understanding the Bank

rules and procedures, particularly procurement and disbursement related issues. However, a

number of implementation problems were experienced. These included delays in fulfilment of

loan/grant conditions, and delays in responding to the Government’s requests for “no

objection” or general questions on the projects.

3.0 REVISED PROJECT FINANCING ARRANGEMENTS

3.1 Project Objectives and Description

3.1.1 The overall objective of the LDCF funded activities is to improve the livelihoods of

communities facing challenges caused by climate change through better water resources

management. The LDCF funded components will enhance the sustainability and resilience of

the LLRWSSP investments through activities such as identifying and addressing climate risks,

improving readiness of communities and institutions, and sharing experiences accumulated

through project implementation.

3.1.2 Lesotho is one of the poorest countries in the world and natural resources constitute the

primary source of livelihood for the majority of the Basotho population. Management of these

natural resources is therefore important and critical to the country’s long-term development.

The IPCC Fifth Assessment Report indicates that countries in south-eastern Africa like Lesotho

are likely to experience an increase in annual temperature of 1.5 to 2°C by 2050. In addition,

AR5 anticipates increased inter-annual rainfall variability, with more intense droughts across

the southern Africa region between 2020 and 2049.

3.1.3 The additional funding will allow Basotho communities to improve their resilience to

climate change impacts and ability to respond to the effects of reduced rainfall, while

supporting the construction of more resilient infrastructure and more sustainable natural

resource management practices, including catchment management, in Berea and Maseru

districts and the catchment area upstream of the initial project areas.

3.1.4 The expected outcomes for the additional activities include:

Climate change risks for the targeted communities are identified and documented;

Adaptation technologies for water supply are identified, acquired and disseminated

including the development and implementation of an integrated catchment management

plan for the larger Metolong catchment; Monitoring and early warning systems in place

(with the participation of the Lesotho Meteorological Services) to mitigate risks.

Strengthened institutional capacity for better water resources management;

Strengthened institutional capacity to cope with projected impact of climate change on

3 Calculated from https://www.afdb.org/en/projects-and-operations/project-portfolio/lesotho/ (accessed 17

November 2017) 4 2013 -2017 AfDB country strategic paper

https://www.afdb.org/en/projects-and-operations/project-portfolio/lesotho/

6

water as well as for in house management, monitoring and evaluation of climate change

adaptation projects; Best practices for adaptation (including gender specific measures)

are identified.

Strengthened awareness of the local communities on climate change and its impact on

the natural resources within the project area; Enhanced ownership of the proposed

adaptation structure, plans, technologies and measures by the communities through a

participatory approach, Adaptation technologies are adopted by the institutions and

communities.

Proactive and structured Monitoring and Evaluation put in place to document lessons

learnt throughout and after project implementation; Lessons learnt are captured and

appropriately disseminated.

3.1.5 The project will contribute to strengthening rural communities by improving

livelihoods, reducing vulnerability, and providing support to develop income generating

activities. Moreover, a participative approach will be used to determine the adaptation

technologies to be deployed and ensure ownership for long-term sustainability. Women’s

priorities and needs as expressed through public consultations will be taken into account and

the project coordination team will ensure women’s participation in decision making with

respect to management of facilities.

Participatory process for project identification, design and implementation

3.1.6 A participatory approach has been used to define the activities and ensure ownership

for long-term sustainability. Going forward, the project will ensure processes that also take into

account women’s priorities and needs with respect to output delivery and the resulting

facilities, and encourage women’s participation in decision making and project

implementation.

3.1.7 During preparation and appraisal of the LDCF funded activities, several consultations

were held during the period August to November 2017, with staff from the Commissioner of

Water’s office, Department of Rural Water Supply and Department of Water Affairs, the

LWRSSP Project Implementation Team, other line ministries such as the Ministry of

Agriculture, and civil society organisations. These consultations included a day-long kick-off

meeting held on 1 September 2017, an initial consultative workshop hosted by the AfDB and the

Commissioner of Water held on 3 October 2017, and a validation workshop held on 8 November

2017. Workshop participants included 41 people from various sectors, national departments,

district councils, and village chiefs. These consultations were instrumental in finalizing the design

of the project.

3.1.8 The project also extensively used gathered data, information and lessons from the

baseline supervision missions undertaken by the Bank, where relevant stakeholders, including

project beneficiaries, women, men, line ministries, district councils, Traditional Authorities,

and development partners were consulted.

3.1.9 A summary of keys issues and observations made during the consultations that shaped

the design of the project included the following:

7

(a) Stakeholders recommended that the additional project components focus on the

catchment area upstream of the AfDB project and other unserved communities in Maseru

and Berea districts. The upstream catchment area governs the quantity and quality of

water supplying the LLRWSSP, and while the Metolong Dam Water Supply Programme

has an associated catchment management plan, it does not explicitly address climate

change and its impacts. Similarly, there is a need to address the increased climate

vulnerability of communities in the LLRWSSP project area;

(b) Stakeholders stressed the importance of community participation to ensure measures are

sustainable and reflect local needs, capabilities and constraints. The project design

should, according to them, ensure community involvement in all stages of the project,

make allowance for indigenous knowledge, establish community focal groups on climate

change issues and translate all climate change policies and strategies into community by-

laws; and

(c) Stakeholders also recommended that the LDCF project use as much as possible the

existing AfDB project management structure, procurement mechanisms, and staff, in

order to reduce start-up costs and speed delivery and ensure consistency. Additional

details of the consultations are included in Annex C1.

3.1.10 Technical solutions retained are based on existing options for improving the climate-

resiliency of water sources known and implemented within Lesotho and are as follows:

3.1.11 Output 1.2 (Under Component 1 of the Project): Climate resilient water supply

technologies installed, and included as enhancements to the integrated catchment management

plan.

1.2.2 Identification and installation of climate resilient water supply technology – for

example boreholes of appropriate depth, rainwater harvesting and diversification of

resources.

1.2.4 Identification and installation of climate resilient WASH measures in the

upstream catchment area.

3.1.12 Alternatives explored are shown below.

Alternative Brief description Reasons for rejection

1.1. Reticulation of

supply from the

secondary and tertiary

pipeline network

This would involve

extending the LLWRSSP

distribution network to

small, isolated settlements

The cost of extending the network

for isolated settlements would be

prohibitive;

Settlements upstream of the

Metolong Dam would be difficult

to reach using the gravity flow

scheme (GFS) in use for most of the

LLRWSSP.

1.2. Sand dams and

earth dams

Involves construction of

impoundments to capture

stream / river water for use in

dry periods

Many settlements are relatively

distant from rivers and streams,

leading to unacceptably long travel

times to collect water.

8

Alternative Brief description Reasons for rejection

1.3. Business as usual Continued reliance on

traditional springs for water

Springs are increasingly running

dry due to climate variability, land

use changes, rising demand as

populations grow.

3.1.13 Best practices and lessons learned from the implementation of past sector

projects in Lesotho as well as those supported by other donors were taken into account in the

formulation and design of the LDCF funded activities. Lessons learned were gathered through

consultations with stakeholders and via multiple published and unpublished documents,

including the Project Appraisal Report for the LRWSSP; World Bank Working Paper No. 200:

Lesotho Highlands Water project: Communication practices for Governance and sustainability

improvement; Parker, A.N. 1997 Participation and decentralisation in rural development:

lessons from the Lesotho highlands water project; and the LLRWSSP October 2017

supervision mission report.

3.1.14 Erreur ! Source du renvoi introuvable.The table below presents the lessons and

describes how they have been incorporated into the project design. Further details on lessons

from past Project Completion Reports (PCRs) have been captured in Technical Annex B1.

Table 2: Lessons Learned from Past Interventions

Lesson How lesson is incorporated into project

design Ownership and participation of beneficiaries improve sustainability of project benefits. Effective community participation ensures ownership and participation of beneficiaries.

The project is designed around community participation. Under component 3, activities are specifically designed around awareness and participatory approaches to strengthened community awareness of climate change and enhanced their ownership of the activities to be undertaken under components 1 and 2.

The use of existing institutional arrangements/country structures ensures seamless coordination and also builds sustainable capacity in the institutions.

The project will use existing sector structures to implement the project thereby creating the capacity for implementing larger programmes. Implementation is to be done through the Department of Rural Water Supply of targeted districts, Community councils and community water associations.

Capacity development at all levels, community, district, national level is critical and should be continuous for long term sustainability.

The project includes a component on capacity development under which national, district and local stakeholders are trained on improved water resources management with consideration for climate change.

Improving monitoring and evaluation capacity for tracking gender and social results and enhancing accountability is important.

Gender disaggregated indicators will be developed for relevant activities, and a strong M&E system will be put in place.

Community mobilization and sensitization on hygiene and sanitation should always precede construction and it should be a continuous process to avoid some social challenges and bring about desirable behavioural changes.

Throughout the project, Component 3 is designed to provide continuous community mobilization and training. In connection with the Ministry of Health, the baseline project is also providing training on hygiene and sanitation.

9

3.2 Description of Additional Activities to be Carried Out

3.2.1 Water adaptation alternatives and technologies proposed for inclusion following LDCF

support will be in the form of both:

implementation of technological tools and equipment, and

approaches and management strategies relevant to climate change adaptation.

3.2.2 The selection and implementation of specific water adaptation alternatives and

technologies is best done within integrated planning and management frameworks. It is thus

proposed that alternatives be aligned with existing programmes in place both in Lesotho and

in the larger region, and specific to the Metolong related programmes and projects. The main

focus of proposed solutions will address water challenges in: (i) communities upstream of the

Metolong dam. The dam is the primary source of water for all other villages provided with

piped water via the LLRWSSP, and (ii) communities upstream of the dam, who will not be

reached by the piped water supply. In the absence of LDCF investment these communities will

continue to depend on traditional water supplies, which are vulnerable to climate variability.

The focus is on communities that are too small to be reached economically by the pipelines. In

the absence of alternatives, these community members may respond to climate shocks by

moving to villages served by the piped schemes, which could result in demand exceeding the

pipeline’s delivery capacity, or may take other measures to access water that damage the

LLRWSSP infrastructure or threaten its long-term viability.

3.2.3 Based on these criteria, the CoW identified the following communities and institutions

as the focus of the additional LDCF funding:

Maseru District: 20 downstream communities totalling 11,646 people, as well as 10

schools and 2 health centres.

Berea District: 19 upstream communities totalling 6,463 people, and 8 downstream

communities totalling 1,004 people.

3.2.4 The additional activities to be carried out with LDCF support are packaged into four

mutually reinforcing components:

(i) Identifying climate risks and reducing vulnerability to climate change in the water

sector for communities in the project area. Activities in Component 1 focus on

assessing the climate vulnerability of LLRWSSP infrastructure, of smaller

communities in the project area that are not served by the initial LLRWSSP, and of

communities in the upstream catchment area that feeds the Metolong Dam and the

LLRWSSP. It is expected that the most viable and cost-effective climate resilience

measures for communities being served by the LLRWSSP will focus on demand

management, thus ensuring that their livelihoods are not threatened in the event of

reduced supply. For communities upstream of Metolong Dam and those unserved

communities in the initial project area, LDCF support in Component 1 is expected

to assess the interconnectivity and sustainability of groundwater resources, and

support the identification and installation of climate resilient water supply

10

technologies (boreholes, rainwater harvesting systems, etc) and climate resilient

WASH infrastructure to meet their needs. Finally, activities in Component 1 will

support the upgrading of hydro-meteorological stations and rain gauges to provide

data for improved community decision making and feed into the Lesotho

Meteorological Service’s existing and enhanced early warning systems (EWS).

While improved data does not automatically lead to improved early warning

systems, it is a necessary component. Further measures related to EWS capacity

building are described in Component 2 below.

(ii) Component 2 focuses on Capacity Development for Improved Water Resource

Management. In Component 2, LDCF support will help to strengthen policies and

frameworks, and build institutional capacity at the district and national level to

mainstream climate resilience into ongoing projects and programmes. These efforts

are intended to influence not only the LLRWSSP, but also the overall Metolong Dam

Water Supply Programme, and potential follow-on projects in other parts of the

country. In addition, the LLRWSSP is overseen by a Project Steering Committee

(PSC) involving representation from across Government. Therefore, this

institutional capacity building work can help to mainstream awareness of climate

change and climate resilience across a range of Government departments and

contribute to efforts to scale up the outputs and impacts from the LDCF supported

activities.

Specific policy and planning activities include work to integrate awareness of climate

risks into key water resource management plans, regulations and guidelines, including

revisions and updates to strategies and frameworks for bringing on board private /

community water operators, strategies for financing rural water sanitation services,

and the planned development of a comprehensive rural water supply and sanitation

implementation manual. Component 2 will also help ensure the climate resilience of

the LLRWSSP by supporting a review and update of the Metolong integrated

catchment management plan with climate change considerations and through

development of the integrated water resources demand management plan mentioned

to be implemented under Component 1.

In terms of institutional capacity building, activities in Component 2 will enhance the

ability of Commissioner of Water staff and their colleagues in the Met Service and

other agencies to evaluate water related risks and communicate them effectively to

relevant communities, continuously review and improve their adaptation strategies,

improve their management and M&E of climate adaptation activities, and mainstream

climate change adaptation into the operational rule of the Metolong Dam.

Furthermore, Component 2 will support the preparation of best practice guidelines for

climate change adaptation approaches in the water sector in Lesotho, with a particular

emphasis on gender specific considerations and measures. The activities in

Component 2 will therefore help to mainstream climate change and climate resilience

beyond the defined project period, and set the stage for replication and scale up of

these efforts.

(iii) In Component 3, LDCF support will focus on generating community-driven

approaches to climate resilience and catchment management. Consultations

undertaken during the project preparation stage revealed that communities already

have some awareness of climate change and likely impacts. Component 3 activities

11

will therefore reinforce and deepen this understanding, building where appropriate on

indigenous knowledge. As part of the support provided to communities upstream of

Metolong Dam, the project will support participatory approaches to obtain community

input into the revisions to the Metolong catchment management plan described in

Component 2 above. Finally, activities in Component 3 will employ participatory

approaches to involve women and men in upstream communities and un-served

communities in the LLRWSSP area in the selection and implementation of appropriate

climate resilient water supply and sanitation technologies and measures. These

activities are intended to ensure that the climate resilience technologies and measures

implemented in Component 1 above are appropriate, and that there is sufficient

community buy-in and commitment to management structure to ensure their long term

sustainability.

(iv) Component 4 - Knowledge Management and Monitoring and Evaluation, ensures that

beneficiary communities, the LLRWSSP implementation team, and other

stakeholders are able to contribute to the collection and dissemination of information

regarding lessons learned and good practice in implementing climate resilient water

supply and sanitation projects. Building on existing M&E data collection tools

developed for the LLRWSSP, the activities in Component 4 will aim to collect

relevant monitoring and evaluation data for all project components and activities,

synthesis lessons learned and seek validation from community members and other

stakeholders, and support participation at adaptation practitioners’ events and sharing

of lessons with other stakeholders within Lesotho and outside the country.

3.2.5 The project will therefore comprise bottom up and top down approaches as it will

empower both the rural communities affected as well as prepare the government to understand

and undertake adaptation actions related to climate change. The project will also generate

benefits in relation to the Sustainable Development Goals, and especially SDG 6: “Ensure

availability and sustainable management of water and sanitation for all. It is the intention of

the Commissioner of Water that the LDCF supported activities will be used as a benchmark

for future initiatives in Lesotho and region. The initial LLRWSSP does not specifically address

risks (and possible actions) related to climate change. Building on the existing national

programmes, LDCF will support the additional cost of ensuring that water resources

management is integrated into key sector policies, systems and practices through the design

and implementation of integrated water resources management and innovative policy tools

tailored specifically to the context of Lesotho. Moreover, a participative approach will be used

to determine the adaptation technologies to be deployed in order to respond to the exact needs

of the communities. Lessons learned from the project will be documented. These will promote

ownership and allow smoother replicability of the project initiative in the long run.

3.2.6 The components, activities and expected results indicators are further detailed in the

table below, and in Annexes 3 and 4.

12

Table 3: Components and associated activities

Nr. Component Activities

1

Identifying

Climate Risks and

Reducing

vulnerability to

climate change in

the water sector for

communities in the

project area

Activity 1.1.1: Conduct assessment of likely climate change

impact on smaller communities in the baseline project area

Activity 1.1.2: Conduct assessment of likely climate change

impact on communities in upstream catchment area

Activity 1.1.3: Conduct assessment of climate change impact on

LLRWSSP infrastructure

Activity 1.2.1: Assessment of interconnectivity and sustainability

of existing groundwater (boreholes/springs) sources by

determining how much of local groundwater is dependent on

rainfall.

Activity 1.2.2: Identification and installation of climate resilient

water supply technology – for example boreholes of appropriate

depth, rainwater harvesting and diversification of resources

Activity 1.2.3: Implementation of the Integrated Demand

Management Plan to be prepared under component 2, also in line

with existing programmes put in place for Lesotho.

Activity 1.2.4: Identification and installation of climate resilient

WASH measures in the upstream catchment area

Activity 1.3.1: Installation of hydro-meteorological stations / rain

gauges for long-term monitoring to collect quality information and

for early warning

2

Capacity

Development for

Improved Water

Resources

Management

Activity 2.1.1: Integrate climate risks into plans, regulations and

planning guidelines related to water resource management. This

includes revision and update of: (i) Strategy and framework for

bringing-on-board private/community operators; (ii) Strategy for

financing rural sanitation services; and (iii) Comprehensive rural

water supply and sanitation implementation guidelines/ manual.

Activity 2.1.2: Review / update integrated catchment management

plan for the larger Metolong catchment to ensure climate change

consideration is mainstreamed, in line with catchment

management activities as outlined in the Long Term Water and

Sanitation Strategy

Activity 2.1.3: Development of an integrated demand management

plan to reduce vulnerability to rainfall variability in the baseline

and LDCF project area

Activity 2.2.1: Institutional capacity development to evaluate

water related risks, to plan for contingencies and to communicate

effectively to relevant communities

13

Nr. Component Activities

Activity 2.2.2: Institutional capacity development to allow

continuous review and improvement of adaptation strategy

Activity 2.2.3: Development of in-house capacity to manage

climate change adaptation activities as well as for monitoring and

evaluation activities

Activity 2.2.4: Mainstream climate change adaptation in operation

rule of Metolong Dam

Activity 2.3.1: Prepare guidelines for best practice climate change

adaptation approaches, including gender specific measures

3

Awareness Raising

of Local

Communities on

Climate Change

Adaptation

Activity 3.1.1: Reinforcement of local communities on climate

change and its impact on the natural resources within the project

area, including consideration of indigenous knowledge

Activity 3.2.1: Participatory approaches to obtain local input into

Metolong catchment management planning and enhanced

community ownership of proposed adaptation structures, plans,

technologies and measures

Activity 3.3.1: Participatory approaches to involve women and

men in the selection and implementation of climate change

structures, plans, technologies and measures

4

Knowledge

Management and

Monitoring and

Evaluation

Activity 4.1.1: Collection of monitoring and evaluation data;

preparation of reports

Activity 4.2.1: Synthesis of lessons learned and dissemination of

reports, project briefs and updates

Activity 4.2.2: Support participation at adaptation practitioner’s

events and knowledge production for dissemination inside and

outside the country

3.3 Estimated Additional Project Cost

3.3.1 The LDCF grant totalling USD 4,416,210 (equivalent to UA 3,143,904) will finance

activities to improve resilience against climate variability and change. These are additional

costs related to adaptation in the previously described target regions under section 3.1. The

breakdown of the LDCF resources are as outlined below and details are in Annex 3.

14

Table 4: Breakdown of LDCF by Component and Expenditure Schedule (in UA)

Components Yr1 Yr2 Yr3 Yr4 Total

Component 1 Identifying Climate

Risks and reducing vulnerability to climate change in the water sector

for communities in the project area

319,564 663,650 628,055 367,815 1,979,084

Component 2: Capacity

Development for Improved Water Resource Management

182,857 231,707 94,446 - 509,009

Component 3: Awareness Raising

of Local Communities on Climate Change Adaptation

215,874 146,484 - - 362,357

Component 4: Knowledge

Management and Monitoring and

Evaluation

23,170 43,821 43,821 33,141 143,953

Project Management 37,375 37,375 37,375 37,375 149,499

Total base cost 778,840 1,123,036 803,696 438,331 3,143,904

3.3.2 The revised overall costs under the components of the baseline project are as outlined

below.

Table 5: Revised Project Costs

Component of the LLRWSSP Initial

(million UA)

Additional

(million UA)

Total

(million UA)

1. Water Supply Infrastructure 7.713 1.726 9.439

2. Environmental Health, Sanitation and Hygiene promotion

1.078 0.340 1.418

3. Institutional Support and Capacity Building 1.37 0.928 2.298

4. Project Management and Eng. Services 1.213 0.149 1.362

Total 11.374 3.144 14.518

3.4 Revised Project Implementation Schedule

3.4.1 The additional LDCF funding is coming at a time when the initial baseline project

(LRWSSP) is already 3 years into implementation with a revised closing date of September

2019. The additional LDCF funding is scheduled for a 48-month disbursement period with a

last disbursement date of approximately September 2021. The overall scheduling will be

adjusted to accommodate the additional funding.

3.5 Project Implementation

3.5.1 Implementation Arrangements: The institutional and implementation arrangements of

the baseline project will be maintained for the LDCF project. The Kingdom of Lesotho will

15

continue to be the recipient of the grant. The Executing Agency is the Commissioner of Water

(CoW) under the Ministry of Energy, Meteorology and Water Affairs (MEMWA). The CoW

will be responsible for the overall coordination of planning, implementation and monitoring of

the Programme. The implementation of the programme will continue to be managed through

existing national decision-making structures, utilizing national planning, procurement,

budgeting, accounting and reporting systems.

3.5.2 It is expected that community members and community based organisations (CBOs) in

the upstream and downstream project areas and, where appropriate, civil society organisations

(CSOs) will take an active role in the identification and implementation of capacity building,

adaptation planning and catchment management activities. Procurement related to these

activities will be subject to the procurement arrangements described in the following section.

3.5.3 The existing Project Implementation Team (PIT), will also be the PIT for the additional

activities under LDCF funding and responsible for the overall quarterly and annual reporting.

Activities under LDCF funding will follow the time frame outlined in Annex 5. The PIT is run

under the direct supervision of the Director for Department of Rural Water Supply (DRWS). It

is constituted by experts in the roles of Project Coordinator, Procurement / Contracts

Management Expert, and Project Accountant. This team will coordinate the input of different

units within CoW, DRWS, and District Water Department (DWD). The Ministry of Health

(MoH) will assign a hygiene focal person who will be a member of the PIT and mobilise the

input of the MoH and District Environmental Health Officers. Additionally, in order to build

capacity and skills development of the youth, 11 apprentices are engaged to support the

implementation of the project.

3.5.4 The technical capacity of CoW, DRWS and DWD has been strengthened via the

baseline LLRWSSP and is sufficient to implement most aspects of the LDCF funded activities.

Implementation of the additional LDCF funded activities will be carried out by the departments

implementing the LLRWSSP. At the national level, the DRWS will be the main

implementation agency through its various divisions involved at different levels. The

Department central staffing is adequate and highly qualified. At the district level, DWD will

be implemented through coordination with District Councils. Annex 8 provides the Water

Sector Institutional framework outlining the management structure under which the project is

being implemented. However, during the implementation of the baseline LLRWSSP, limited

capacity with respect to procurement consequently resulted in some delays in the

implementation of the project. As a result, corrective action is underway to hire an international

procurement specialist. Additionally the PIT will add experts in water and sanitation and

climate change to assist in implementation of ongoing and the LDCF funded activities.

3.5.5 To ensure that the additional funds does not result in exceeding the implementation and

procurement capacity of the PIT, a “Project Technical Specialist” and a “Procurement

Specialist” will be hired specifically to support the PIT on additional activities.

3.5.6 In order to ensure high-level (i.e. senior level) coordination with similar initiatives and

other Government programmes, the project will receive direction from the existing Project

Steering Committee (PSC). The PSC will provide a higher level of oversight, and policy and

strategic guidance and coordination for the implementation of the project. Members of the PSC

include Ministry of Finance, Ministry of Development Planning, Ministry of Gender, Youth

Sport and Recreation, Ministry of Health, Ministry of Local Government, the Water and

16

Sewerage Company (WASCO), Lesotho Electricity and Water Authority (LEWA), CoW and

MEMWA and NGOs. See Annex B3 for further details on implementation arrangements.

3.6 Procurement Arrangement for LDCF Resources

3.6.1 Procurement of goods (including non-consultancy services), works and the acquisition

of consulting services, financed by the Bank for the Project, shall be carried out in accordance

with the “Procurement Policy and Methodology for Bank Group Funded Operations (BPM)”,

dated October 2015 and following the provisions stated in the Financing Agreement.

Specifically, procurement would be carried out following:

Borrower Procurement System (BPS): Specific Procurement Methods and Procedures

(PMPs) under BPS comprising its Laws and Regulations (Procurement Regulations 2007

and its accompanying Procurement Manual 2007 and Procurement Regulations 2018).

The BPS shall not be used for any goods, works or consulting services contracts

financed by the LDCF grant except for very low value miscellaneous operational costs..

Bank Procurement Policy and Methodology (BPM): Bank Standard Procurement

Methods and Procedures (PMPs), using the relevant Bank Standard Solicitation

Documents (SSDs), for contracts that are either: (i) above the thresholds indicated in

Annex B5 or (ii) in case BPS is not relied upon for a specific transaction or group of

transactions; and (iii) in case BPM have been found to be the best fit for purpose for a

specific transaction or group of transactions.

3.6.2 Waiver of the Rule of Origin. This LDCF grant is administered by the African

Development Bank. Consequently, under sub-paragraph 1(d) of Article 17 of the Agreement

Establishing the Bank, the procurement of goods, works and consulting services is limited only

to those countries that are member countries of the Bank (this restriction is referred to as the

“Rule of Origin”). Given that this Project has also received ADF funding, it is recommended

that the Board of Directors of the Bank grant a waiver to the rule of origin to allow for universal

procurement under the Project in order to facilitate project implementation in the Kingdom of

Lesotho (which is an ADF country).

3.6.3 Procurement Risks and Capacity Assessment (PRCA): Assessments of procurement

risks at the country, sector and project levels as well as the procurement capacity at the level

of the Executing Agency were undertaken for the Project. The findings have informed the

decisions on the procurement arrangements being used for specific transactions or groups of

similar transactions under the project. The appropriate risk mitigation measures and details of

the procurement management arrangements are presented in Technical Annex B5.

3.7 Financial Management, Disbursement and Audit Arrangements

3.7.1 Financial Reporting and External Audit: Financial management for additional funds

will remain same as for the ongoing project LLRWSSP. Therefore the overall responsibility

for financial reporting will rest with the Head of Accounts, DRWS, as the head of the Finance

Department. The budgeting systems from formulation, approval, execution, monitoring and

reporting has been found to be adequate. In this regard similar budgeting system will be used

for the additional funds. The current project accountant handling the ongoing project will

manage the financial transactions for the additional funds. The additional funds will be

accounted for using the accounting system being utilized by the ongoing project as this system

17

has been found to be adequate in maintaining the project transactions and for reporting

purposes. The ongoing project is being implemented in a functions and strong internal control

system, the additional funds will be implemented under similar internal control environment.

The ongoing project quarterly reports have been submitted in time and were found satisfactory

and acceptable. In addition the annual financial reports for the ongoing project were prepared

and submitted for audit due diligence within the stipulated time and the quality was found to

be adequate and acceptable. The additional funding needs to be adequately and separately

disclosed in the current financial reports. The interim quarterly reports should be submitted to

the Bank not later than 30 days after the end of each calendar quarter. The audit report on the

ongoing operations were submitted to the Bank within the stipulated timeline and did not

identify any major issues. The audit report was unqualified (clean) and was accepted by the

Bank. The current audit Terms of reference for the ongoing operation will need to be updated

to include the audit of this new funds. In accordance with the Bank requirements, the audited

financial statements with the audit opinion and the management letter should be submitted to

the Bank not later than 6 months after end of each financial period. The Bank will continue to

provide support during fiduciary clinics and regular supervisions. Desk review of interim

financial reports will also provide regular monitoring. Detailed financial management,

disbursement and auditing arrangements are included in Annex B.4 of the Technical Annexes.

3.7.2 Disbursement Arrangement: Financial management for additional funds will be similar

to the LLRWSSP arrangement. The ongoing project disbursement has been managed

satisfactory and there has been no challenges noted. The project will use the various Bank

disbursement methods including (i) Direct Payment, (ii) Special Account (SA) and (iii)

Reimbursement methods in accordance with Bank rules and procedures as laid out in the

Disbursement Handbook. A Special Account, in foreign currency exists for the baseline project

at the Central Bank of Lesotho (CBL) to be operated by DRWS. To facilitate payment of

eligible operating costs and to manage currency exchange risk, a local sub-account will be

opened and managed by DRWS as per the existing financial rules and regulations. Subject to

putting in place the procedures to ensure separation of accounting and reconciliation of

additional funds, the ministry is desirous of keeping existing accounts and not opening

additional new accounts.

3.7.3 In terms of operational procedures for the local sub-account, DRWS through the

appropriate authorising signatory will issue instructions to CBL requesting funds to be

transferred from the project Special Account into the local sub-accounts at the commercial

bank. Transfers will be based on approved, quarterly eligible expenditure cash flow projections

prepared from the project’s approved annual work programme and budget. Consequently, the

Head of Accounts DRWS will ensure that no excessive or idle funds remain in the sub-accounts

at the local commercial bank. Preparation of documentation for both special account

replenishment and all direct payments will be under the overall responsibility of the Head of

Account, who will be assisted by the dedicated Project Accountant. The GoL through the

Ministry of Finance (MoF) will submit to the Bank, details of the bank accounts together with

specimen signatures.

3.8 Monitoring and Evaluation

3.8.1 The Monitoring and Evaluation Plan will be consistent with that of the original

Programme. The CoW will prepare progress reports on a quarterly basis which will highlight

the progress towards meeting the project’s targets as reflected in the project result-based logical

framework. In addition to submitting to the Bank, these reports will also be shared with the

18

Ministry of Environment, Meteorology and Water Affairs (MEMWA), for use in the national

M&E system. Apart from reports, monitoring and evaluation will also be undertaken through

supervision visits and missions. Quarterly supervision visits and review meetings (by the

Project Task Force and PSC), and Bank missions will track implementation progress,

challenges and strategically plan the way forward.

3.8.2 The sector’s M&E framework, prepared with support from AWF, will be an important

tool in the monitoring and evaluation of the project. In addition, the sector prepares annual

Sector Performance Report (SPR) which is reviewed at the Joint Sector Review. The SPR will

also include the performance and contribution of the project to achievement of the sector

targets.

3.8.3 For the additional funds being allocated from the LDCF a Mid-Term Review will be

conducted at the mid-point of the project – expected in late 2019 / early 2020. The Mid-Term

Review will be conducted jointly by the Bank and the Ministry of Energy, Meteorology, and

Water Affairs. Additionally, a terminal evaluation will be conducted by an independent expert

or expert team and will begin before project closure and be completed and submitted to the

Global Environment Facility (GEF) no later than 6 months after closure of the LDCF project.

Furthermore, Annual Monitoring Reviews and annual Project Implementation Reviews will be

submitted at appropriate deadline times as required by the GEF.

3.9 Risks and Mitigations Measures for the Additional Activities

The following table updates the risks and mitigation measures information described in the

LLRWSSP PAR as well as a few additional risks identified to be tracked and mitigated against

related to LDCF-funded activities.

Table 6: Project risks and proposed mitigation measures

Risk Mitigation Measure

Risk #1: Insufficient capacity for

project implementation.

Mitigation #1: Continued advocacy and awareness

raising at all levels to ensure commitment to

mainstreaming climate change into sector plans,

budgets, and policy frameworks. Due consideration

will be given to involving traditional governance

structures in an appropriate manner.

Risk #2: The risk of sustainability of

the baseline project and adaptation

measures.

Mitigation #2: Community mobilization and

engagement throughout the project development

process. The project is incorporating (i) the

development of gender and social responsive

communication strategies, (ii) activities to sensitize

communities on implications of climate change and

inclusive response strategies, and (iii) district and

national policy measures to mainstream climate

change considerations throughout the water sector.

Risk #3: Inadequate capacity at local

level to implement the project and

sustainably manage the infrastructure.

Mitigation #3: Effective capacity development at

community and local government level while

pursuing policy dialogue with the government and

development partners to sustain the decentralization

process

19

Risk Mitigation Measure

Risk #4: Insufficient coordination

amongst stakeholders.

Mitigation #4: Develop champions within the

Government and community members to promote

adaptation. Getting the information developed and

developing the right messages, as well as

dissemination in the appropriate formats will be the

ways that the project will result in positive

outcomes.

Additional risks identified as part of activities expansion

Risk #5: Increased climate variability

exceeds the design parameters of the project infrastructure

Mitigation #5: The LDCF project takes a multi-

pronged approach to reducing vulnerability to

climate impacts by increasing knowledge and

awareness of climate change, promoting

conservation and demand management,

establishing more reliable water supplies and

supporting alternative livelihood activities to

strengthen community resilience to transient

shocks.

Risk #6: High dependence on natural

resources and weak coping

mechanism - especially unsustainable

livestock activities in the upstream

catchment area

Mitigation #6: Improved human skills and capacity

to diversify livelihoods

3.10 Sustainability

3.10.1 Implementation of the additional facilities /project components will involve all

stakeholders, including the beneficiary communities, to ensure a sense of ownership and

commitment as well as sustainability of the improved catchment management, the sanitation

facilities, and the water supplies. In each component, a heavy emphasis will be placed upon the

financial, environmental, and social sustainability of investments to be made. The water

systems will take into account affordability of services in the design of the facilities such that

the ability and willingness to pay of the beneficiaries is not compromised. This understanding

will be captured and reflected in the feasibility studies of each specific investment.

3.10.2 Support will be provided for capacity building and awareness raising activities for

farmers, artisans/masons, community groups, and local leaders to ensure the ongoing support

for the measures and thus enhance the institutional sustainability of the programme.

3.10.3 The sustainability of the project activities will also be enhanced through the

Government’s efforts to engender ownership in the local communities and local authorities /

districts where the activities are implemented. The project will take the same approach as the

LLRWSSP in general and encourage that communities, equally represented by both women

and men, be actively involved in the planning, selection and implementation of the specific

facilities, thereby increasing the sense of ownership.

3.10.4 It should be noted that in the undertaking of the various projects that the teams will not

work in isolation. Similarly, communities across the project area will be encouraged to interact

and share experiences. This will allow for the dissemination of data and ideas, which will result

in a thorough analysis and subsequent implementation, ensuring a lasting impact.

20

3.11 Environmental and Social Management

3.11.1 The project (including baseline and LCDF activities) are anticipated to bring social and

economic benefits in the target districts thereby contributing to the socio-economic status of

the people. The additional funding activities are also deemed as Category 2. All water and

sanitation facilities will be subject to the approved updated ESMP of the ongoing LLRWSSP.

Activities relating to the promotion of improved catchment management, environmental health,

sanitation and hygiene, institutional support and capacity building are deemed to have a

positive impact on the environment and therefore complementary to the ESMP. Additional

activities will enhance measures to maximize the use of groundwater and rainwater for climate

adaptation and development, to deal with the increased weather extremes, highs and lows,

which are expected as result of climate change. Designs will consider projected climate change

scenarios within their preparation.

Gender: Climate change in Lesotho affects both women and men, while traditionally their roles

differ. Women and girls are the main collectors of water for domestic use and as such are

responsible for water management at the household level. They are also the major promoters

of sanitation activities at household and community levels. They bear the impact of inadequate,

deficient or inappropriate water and sanitation services. However, men still dominate the arena

of planning and decision making regarding water and sanitation development. Women’s views

are often under-represented, implying that women’s practical and strategic needs are not being

addressed. Related to climate-resilient water resources, the additional funding will help to free

women and girls of the burden of having to spend excessive time collecting and carrying water

in the dry season - often from sources distant from their houses. This reduction in burden allows

women and girls time for other activities including furthering their education and participating

in income generating activities. This can reduce their vulnerability to shocks, including climatic

shocks.

3.11.2 Men and boys are mainly responsible for crop and livestock production. Herdsmen and

boys look after animals that are dependent mainly on water for drinking and grass for grazing.

Overgrazed or poorly managed landscapes are less able to absorb rainfall and contribute to soil

erosion. Trainings and sensitization provided through the project will include herd men and

boys in the upstream catchment areas. As lack of formal education is an issue in these areas,

IEC materials with drawings will be used to convey messages.

3.11.3 Key gender related features of the project include:

Informing policy makers on the local knowledge on climate change that will be

gathered during community gatherings.

Updating the RWS implementation guidelines and introducing best practice gender

sensitive implementation guidelines. Women’s needs and priorities will be identified

through consultations held during community gatherings and taken into account

throughout implementation.

Women and men will have a voice at the design stage for local climate resilience

measures, for example on the location of water points. Women and girls will have the

opportunity to influence the choice of water points as appropriate in view of technical

considerations.

21

Working with the relevant government department, men, and especially otherwise

under-represented herd men/boys will be given the opportunity to give information on

appropriate tree seedlings to be planted to as part of catchment management activities.

Community Committees have a lower number of men. A suggestion by women during

the consultation was that water committees should have at least 7 members and out of

the seven at least 3 should be men. The balance of men and women is important in

regard to water control measures.

Women are also to be trained on group dynamics so that they are not passive members

but active participants. This training will take into account cultural and other factors to

help overcome barriers that prevent women from voicing their opinions.

Community mobilization and gatherings will be carried out in a way that takes into

consideration age and gender to allow freedom of expression and encourages

participation.

3.11.4 To improve the monitoring and evaluation capacity for tracking gender and social

results and enhancing accountability is important, gender disaggregated indicators have been

developed for the relevant activities to ensure the integration of gender and cross-cutting issues

for project implementation.

3.11.5 Social and environment – The planned LDCF activities are focused on building climate

change considerations into activities that, in turn, reinforce the baseline project. Core measures

focus on community-based assessment of climate risks and adaptive capacity as well as

incorporation of climate resilience considerations into the catchment management activities in

the Metolong watershed, and delivery of small-scale water supply infrastructure like boreholes

and rooftop rainwater harvesting systems. Additional environmental impacts from these

activities are expected to be transient, for example, during the construction phase for boreholes,

with mitigation activities outlined in the ESMP. Access to potable water will be improved in

the villages and improved sanitation promoted in support of baseline LLRWSSP objectives.

The project will contribute to improved livelihoods of the communities. Through reduction of

soil loss to erosion, the catchment management activities will also contribute to agricultural

productivity and contribute to improved food security, although the primary aim of this activity

is to protect water sources. Many of the climate resilience activities are expected to lead to

improved livelihood security, even in the absence of climate change impacts. For example, the

promotion of alternative income generation activities like apiculture will support local job

creation and skills development. Deliberate efforts will be made to employ members in

communities close to the project sites in the delivery of project activities as appropriate. In

terms of negative social impacts, there may be the potential for conflict where people from

outside of the villages have to be employed, as well as the potential to transmit communicable

diseases such as HIV/AIDS. As specified in the update to the ESMP, these negative potential

impacts will be monitored, and contractors will be required to put in place sensitization and

prevention measures as part of the approach to mitigation.

3.11.6 Involuntary resettlement: No involuntary resettlement is envisioned as a result of the

project.

22

3.12 Climate Change

The project has been screened for climate risk and vulnerability. According to the assessment

the project is categorized as a Category 2, meaning the project may be vulnerable to climate

risk. However, a comprehensive review of climate change risks and adaptation measures have

already been undertaken and adaptation measures have already been integrated in the project

design and implementation plans.

4.0 RATIONALE FOR ADDITIONAL FINANCING

4.1.1 Lesotho is one of the poorest countries in the world and natural resources constitute the

primary source of livelihood for the majority of the Basotho population. Management of these

natural resources is therefore important and critical to the country’s long-term development.

The IPCC Fifth Assessment Report indicates that countries in south-eastern Africa like Lesotho

are likely to experience an increase in annual temperature of 1.5 to 2°C by 2050. In addition,

AR5 anticipates increased inter-annual rainfall variability, with more intense droughts across

the southern Africa region between 2020 and 2049.

4.1.2 The Government of the Kingdom of Lesotho coordinated the preparation of the

National Adaptation Programme of Action (NAPA) 2007, which identified 11 priority

intervention areas, including securing sustainable water supply, and capacity building and

policy reform to integrate climate change into sectoral plans. It is expected that funding of the

identified priority intervention areas will stimulate interest among key stakeholders and also

lead to changes in planning approaches, resulting in integration of climate change issues into

development planning.

4.1.3 Sustainable water resources, both in terms of quantity and quality as well as sanitation

facilities are adversely affected by the effects of climate change. It is in this context that the

NAPA has identified water supply and sanitation as a sector vulnerable to climate change and

defined adaptation measures.

4.1.4 With the additional financing from LDCF, the LLRWSSP’s impact will be enhanced,

particularly with respect to resilience, sustainability of water facilities and natural resource

management in the face of climatic shocks. These additional resources will contribute to

improving the population’s living conditions.

4.1.5 Activities under the additional funding are directly aligned to the core objectives of the

Bank’s Strategy for 2013 – 2022, in particular the transition toward “green growth that will

protect livelihoods, improve water, energy and food security, promote the sustainable use of

natural resources and spur innovation, job creation and economic development”. The proposed

catchment management activities will encourage practices that will improve water resources

while creating economic opportunities for local communities. The infrastructure activities have

a heavy focus on natural resource management related to sustainable water and sanitation

management. In addition, this additional financing is in line with Pillar 2 (adaptation) of the

Bank’s second Climate Change Action Plan 2016-2020 (CCAP2), which aims to ensure low-

carbon and climate resilient development across the African continent.

4.1.6 The economic rate of return including the LDCF financed activities was estimated at

13%. With the implementation of adaptation activities, the Programme’s economic benefits

23

will increase, as well as its positive impacts on living conditions and infrastructure

sustainability. The programme is technically and economically viable.

5.0 LEGAL INSTRUMENTS AND AUTHORITY

5.1 Legal Instruments

5.1.1 The legal instrument for the financing for the Project will be a Protocol of Agreement

for the GEF /LDCF Grant awarded to the Kingdom of Lesotho for the Climate Change

Adaptation for Sustainable Rural Water supply in Lowlands Lesotho Project. The Agreement

will be signed between the Kingdom of Lesotho and the Bank and Fund acting as the Executing

Agencies of the Global Environment Facility (GEF).

5.2 Conditions associated with the Bank Intervention

5.2.1 Conditions Precedent to Entry into Force of the Grant: The Protocol Agreement shall

enter into force on the date of its signature between the Recipient and the Bank.

5.2.2 Conditions Precedent to First Disbursement of LDCF Grant: The obligation of the

Bank to make the first disbursement for the Grant shall be conditional upon entry into force of

the Protocol of Agreement.

5.2.3 Other Conditions

(i) Not later than three (3) months after the end of the fiscal year 2018-2019, submission

of the annual progress reports including the environmental and social compliance for

the fiscal year;

(ii) Not later than three (3) months after the end of the each fiscal year, submit an annual

work plan and procurement plan of the subsequent fiscal year during the Project

implementation. The requirement will take effect at the end of the fiscal year July 2018

- June 2019.

(iii) Not later than six (6) months after entry into force of this Agreement, evidence of the

recruitment, designation or appointment of the Procurement Specialist; Project

Technical Specialist; Procurement Assistant; Hygiene Educational Focal Person and

the District Environment Health Officers for the Project Implementation Unit (the

“PIU”) with qualifications and terms of reference acceptable to the Bank;

5.3 Compliance with Bank Policies

5.3.1 The Project complies with the applicable Bank Group Policies.

6.0 RECOMMENDATION

6.1.1 Management recommends that the Boards of Directors of the Fund and the Bank

approve the implementation of additional activities for Lowlands Rural Water Supply and

Sanitation Project for the Climate Change Adaptation for Sustainable Rural Water Supply in

24

Lowlands Lesotho, financed through the approved LDCF Grant for an amount not exceeding

Four Million, Four Hundred and Sixteen Thousand United States Dollars (USD 4.416 million),

for the purpose and under the conditions set forth in this report.

6.1.2 Management recommends that the Board of Directors of the Bank approve a waiver to

the Rule of Origin in accordance with Article 17(1)(d) of the Agreement Establishing the Bank

and authorise, the procurement of goods, services and works using the proceeds of the Grant

to be open to all countries including those that are not Member states of the Bank.

I

Annex 1: GEF PIF Approval

II

Annex 2: Government Request to the Bank for Project Financing Proposal

III

IV

Annex 3: Detailed Additional Activities and Costs financed by the LDCF In the table below is a detailed description of Programme activities to be undertaken under each component as well as the unit cost in USD and total cost

estimated per activity and component.

Outcomes/ Outputs Units

No.

Units

Unit

Cost

Total Cost

(USD)

Component 1 Identifying Climate Risks and Reducing vulnerability to climate change in the water sector for communities in the project area

Outcome 1: Climate change risks for the targeted communities are identified and documented; Adaptation technologies for water supply are identified, acquired

and disseminated including the development and implementation of an integrated catchment management plan for the larger Metolong catchment; Monitoring

and early warning systems in place (with the participation of the Lesotho Meteorological Services) to mitigate risks

Output 1.1: Assessment of climate impact and adaptation options prepared

Activity 1.1.1: Conduct assessment of likely climate change impact on smaller communities in the baseline

project area

District-based

assessment and

report

2 30,000 60,000

Activity 1.1.2: Conduct assessment of likely climate change impact on communities in upstream catchment area

Catchment area assessment report

1 40,000 40,000

Activity 1.1.3: Conduct assessment of climate change impact on LRWSSP infrastructure

Project-based

assessment and report

1 25,000 25,000

Subtotal 125,000

Output 1.2: Climate resilient water supply technologies installed, and included as enhancements to the

integrated catchment management plan

Activity 1.2.1: Assessment of interconnectivity and sustainability of existing groundwater (boreholes/springs)

sources by determining how much of local groundwater is dependent on rainfall.

Assessment, report

and updated

groundwater maps

1 100,000 100,000

Activity 1.2.2: Identification and installation of climate resilient water supply technology – for example

boreholes of appropriate depth, rainwater harvesting and diversification of resources

Water supply

measures 59

25,424

1,500,000

Activity 1.2.3: Implementation of the Integrated Demand Management Plan to be prepared under component

2, also in line with existing programmes put in place for Lesotho.

Lump Sum per

District 2 20,000 40,000

Activity 1.2.4: Identification and installation of WASH measures in the upstream catchment area Lump Sum 1 800,000 800,000

Subtotal 2,440,000

Output 1.3: Accurate early-warning data from Lesotho Meteorological Service provided

V


No.

Units

Unit

Cost

Total Cost

(USD)

Activity 1.3.1: Installation of hydro-meteorological stations / rain gauges for long-term monitoring to collect

quality information and for early warning Monitoring stations 10 21,500 215,000

Subtotal 215,000

Contingency cost

Total

2,780,000

Component 2: Capacity Development for Improved Water Resource Management

Outcome 2: Strengthened institutional capacity for better water resources management; Strengthened institutional capacity to cope with projected impact of

climate change on water as well as for in house management, monitoring and evaluation of climate change adaptation projects; Best practices for adaptation

(including gender specific measures) are identified

Output 2.1: Plans / regulatory framework established with regards to climate change and adaptation

activities related to adaptation in the water sector

Activity 2.1.1: Integrate climate risks into plans, regulations and planning guidelines related to water resource

management. This includes revision and update of: (i) Strategy and framework for bringing-on-board

private/community operators; (ii) Strategy for financing rural sanitation services; and (iii) Comprehensive rural

water supply and sanitation implementation guidelines/ manual.

Planning guidelines 3 90,000 270,000

Activity 2.1.2: Review / update integrated catchment management plan for the larger Metolong catchment to

ensure climate change consideration is mainstreamed, in line with catchment management activities as outlined

in the Long Term Water and Sanitation Strategy

Climate-resilient

catchment

management plan

1 100,000 100,000

Activity 2.1.3: Development of an integrated demand management plan to reduce vulnerability to rainfall

variability in the baseline and LDCF project area

Demand management

plan 1 75,000 75,000

Subtotal 445,000

Output 2.2: Institutional structure strengthened to cope with project climate impacts

Activity 2.2.1: Institutional capacity development to evaluate water related risks, to plan for contingencies and

to communicate effectively to relevant communities Training workshops 4 7,750 31,000

Activity 2.2.2: Institutional capacity development to allow continuous review and improvement of adaptation

strategy Training workshops 12 5,000 60,000

Activity 2.2.3: Development of the in-house capacity to manage climate change adaptation activities as well

as for monitoring and evaluation activities Training workshops 8 8,000 64,000

Activity 2.2.4: Mainstream climate change adaptation in operation rule of Metolong Dam Policy guidelines 1 90,000 90,000

VI


No.

Units

Unit

Cost

Total Cost

(USD)

Subtotal 245,000

Output 2.3: Best practices for adaptation (including gender specific measures) identified

Activity 2.3.1: Prepare guidelines for best practice climate change adaptation approaches, including gender specific measures

Best practice guidelines and

training materials

1 25,000 25,000

Subtotal 25,000

Contingency cost

Total

715,000

Component 3: Awareness Raising of Local Communities on Climate Change Adaptation

Outcome 3: - Strengthened awareness of the local communities on climate change and its impact on the natural resources within the project area - Enhanced

ownership of the proposed adaptation structure, plans, technologies and measures by the communities through a participatory approach - Adaptation

technologies are adopted by the institutions and communities

Output 3.1: Local community awareness strengthened on climate change and resilience planning

Activity 3.1.1: Reinforcement of local communities on climate change and its impact on the natural resources

within the project area, including consideration of indigenous knowledge Trainings 15 5,415 81,230

Subtotal 81,230

Output 3.2: Community ownership enhanced regarding proposed adaptation structures, plans,


Activity 3.2.1: Participatory approaches to obtain local input into Metolong catchment management planning

and enhanced community ownership of proposed adaptation structure, plans, technologies and measures Workshops 15 5,414 81,210

Subtotal 81,210

Output 3.3: Adaptation technologies adopted by the institutions and communities

Activity 3.3.1: Participatory approaches to involve women and men in the selection and implementation of

climate change structures, plans, technologies and measures

Facilitated committee

meetings 64 5,415 346,560

Subtotal 346,560

Contingency cost

Total 509,000

Component 4: Knowledge Management and Monitoring and Evaluation

VII


No.

Units

Unit

Cost

Total Cost

(USD)

Outcome 4: Proactive and structured Monitoring and Evaluation put in place to document lessons learnt throughout and after project implementation; Lessons

learnt are captured and appropriately disseminated

Output 4.1: Monitoring and Evaluation results prepared

Activity 4.1.1: Collection of monitoring and evaluation data; preparation of reports Reports 8 6,770 54,160

Subtotal 54,160

Output 4.2 Lessons learnt captured and disseminated

Activity 4.2.1: Synthesis of lessons learned and dissemination of reports, project briefs and updates Lump Sum 4 24,510 98,040

Activity 4.2.2: Support participation at adaptation practitioner’s events and knowledge production for

dissemination inside and outside the country Lump Sum 1 50,010 50,010

Subtotal 148,050

Contingency cost

Total

202,210

Project Management Costs (for site visits, workshops, posters, etc.)

210,000

First disbursement 1,094,029

Second disbursement 1,577,518

Third disbursement 1,128,944

Fourth disbursement 615,719

Baseline study and confirmation of results framework 15,000

Site visits and workshops 45,000

Annual Project Reviews 40,000

Mid-term Review 50,000

Project Completion Report 20,000

Terminal evaluation 50,000

Annual financial and technical audit 40,000

Total 4,416,210

VIII

Annex 4: Detailed Log frame for the LDCF Activities

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF


Indicators Baseline 2010 Target 2022

Imp

act

To improve the livelihoods of

the communities of Lowlands

Lesotho facing challenges

caused by climate change

through better water resource

management

Access to safely managed

drinking water services (%

population, disaggregated

by sex) [AfDB RMF

Indicator 5.4.1]

73% 85% (52%F) National

Statistical Office

Assumptions:

- Continued Government support for

rural community water

infrastructure

Risk #1: Insufficient capacity for

project implementation.

Mitigation #1: Continued advocacy

and awareness raising at all levels to

ensure commitment to

mainstreaming climate change into

sector plans, budgets, and policy

frameworks. Due consideration will

be given to involving traditional

governance structures in an

appropriate manner.

Risk #2: The risk of sustainability

of the baseline project and

adaptation measures.

Mitigation #2: Community

mobilization and engagement

throughout the project development

process. The project is incorporating

(i) the development of gender and

social responsive communication

strategies, (ii) to sensitize the

communities on implication of climate change and inclusive

response strategies, and (iii) district

and national policy measures to

mainstream climate change

Access to safely managed

sanitation facilities (% population, disaggregated

by sex) [AfDB RMF

Indicator 5.4.2]

24% 66% (52%F) National Statistical Office

Ou

tcom

es

RESULTS CHAIN Indicators Baseline 2018 Target 2022 MEANS OF

VERIFICATION

Outcome 1: Climate change

risks for the targeted

communities are identified and

documented; Adaptation

technologies for water supply

are identified, acquired and

disseminated including the

development and

implementation of an integrated catchment management plan for

the larger Metolong catchment;

Monitoring and early warning

systems in place (with the

participation of the Lesotho

Meteorological Services) to

mitigate risks

1.1 Number of districts with

climate impact and

adaptation plans prepared

[Contributes to GEF

Adaptation Indicator 6]

0 2

Project monitoring

reports,

supervision

missions, District

Team Reports

1.2 No. of climate resilient

adaptation measures

identified, acquired and

disseminated

- additional / upgraded

boreholes - institutional rainwater

harvesting systems

[Contributes to GEF


0

59 boreholes

12 rainwater

harvesting systems

Project monitoring

reports,

supervision

missions, District Team Reports

1.3 Number of additional

hydrometeorological

stations and rain water

gauges in place and

operational

0 10 LMS report

IX

Outcome 2: Strengthened

institutional capacity for better

water resources management;

Strengthened institutional

capacity to cope with projected impact of climate change on

water as well as for in house

management, monitoring and

evaluation of climate change

adaptation projects; Best

practices for adaptation

(including gender specific

measures) are identified

2.1 Number of national

institutions with technical

staff trained in climate

change resilience for the

water sector [GEF Adaptation Indicator 10

0 10

Training report

and survey of

district and

national staff

considerations throughout the water

sector.

Risk #3: Inadequate capacity at

local level to implement the project and sustainably manage the

infrastructure.

Mitigation #3: Effective capacity

development at community and

local government level while

pursuing policy dialogue with the

government and development

partners to sustain the

decentralization process

Risk #4: Insufficient coordination

amongst stake-holders. Mitigation #4: Develop champions

within the Government and

community members to promote

adaptation. Getting the information

developed and developing the right

messages, as well as dissemination

in the appropriate formats will be

the ways that the project will result

in positive outcomes.

Additional risks identified as part of

activities expansion

Risk #5: Increased climate

variability exceeds the design

parameters of the project

infrastructure

Mitigation #5: Take a multi-

pronged approach to reducing

vulnerability to climate impacts by

increasing knowledge and

awareness of climate change,

promoting conservation and

demand management, establishing

2.2 Number of operational

guidelines based on best

practices for adaptation

adopted

0 1

Project monitoring

reports,

supervision

missions, District

Team Reports

Outcome 3: - Strengthened

awareness of the local

communities on climate change

and its impact on the natural resources within the project area

- Enhanced ownership of the

proposed adaptation structure,

plans, technologies and

measures by the communities

through a participatory

approach - Adaptation

technologies are adopted by the

institutions and communities

3.1 Number of community

members trained to

identify, prioritize,

implement, monitor and

evaluate adaptation strategies and measures (%

women / % men) [GEF


0 5,000 Training report

3.2 % of households

engaged in participatory

adaptation planning, of

which % women / % men

0% 60% (52%F) Household survey

3.3 % households adopting

climate change resilient

water technologies and

approaches

0% 60% Household survey

Outcome 4: Proactive and

structured Monitoring and

Evaluation put in place to

document lessons learnt throughout and after project

implementation; Lessons learnt

are captured and appropriately

disseminated

4.1 Number of lessons learnt reports disseminated

0

10

Project website statistics; event

attendance records

X

Ou

tpu

ts

Outcome 1: Climate change risks for the targeted communities are identified and documented; Adaptation technologies

for water supply are identified, acquired and disseminated including the development and implementation of an

integrated catchment management plan for the larger Metolong catchment; Monitoring and early warning systems in

place (with the participation of the Lesotho Meteorological Services) to mitigate risks

more reliable water supplies and

supporting alternative livelihood

activities to strengthen community

resilience to transient shocks

Risk #6: High dependence on natural resources and weak coping

mechanism - especially

unsustainable forestry activities

Mitigation #6: Improved human

skills and capacity to diversify

livelihoods ;institutional

arrangements from the baseline

project will be supplemented with

additional project management and

procurement staff to ensure

adequate delivery capacity.

Output 1.1: Assessment of

climate impact and adaptation

options prepared

1.1.1 Number of

communities with climate

impact and adaptation plans prepared

0 47

Project monitoring

reports,

supervision missions, District

Team Reports

1.1.2 Number of risk and

vulnerability assessments

of LRWSSP infrastructure

prepared [GEF Adaptation

Indicator 6]

0 1

Project monitoring

reports,

supervision

missions, District

Team Reports

Output 1.2: Climate resilient

water supply technologies

installed, and included as

enhancements to the integrated

catchment management plan

1.2.1 Number of boreholes

improved or established

[Contributes to GEF


0 59

Project monitoring

reports,

supervision

missions, District

Team Reports

1.2.2 Number of institutional rainwater

harvesting systems installed

[Contributes to GEF


0 12

Project monitoring reports,

supervision

missions, District

Team Reports

1.2.3 Number of integrated

catchment management

plans implemented

0 1

Project monitoring

reports,

supervision

missions, District

Team Reports

1.2.4 Number of

community water

conservation programmes

established

0 47

Project monitoring

reports,

supervision

missions, District

Team Reports

Output 1.3: Accurate early-warning data from Lesotho

Meteorological Service

provided

1.3.1 Number of additional hydro-meteorological

stations and rainwater

gauges installed

0 10 LMS status report

XI

[Contributes to GEF

Indicator 4]

1.3.2 Improved weather /

drought early warning

systems deployed [GEF


0 1 LMS status report

Outcome 2: Strengthened institutional capacity for better water resources management; Strengthened institutional

capacity to cope with projected impact of climate change on water as well as for in house management, monitoring and

evaluation of climate change adaptation projects; Best practices for adaptation (including gender specific measures) are

identified

Output 2.1: Plans / regulatory

framework established with

regards to climate change and

adaptation activities related to

adaptation in the water sector

2.1.1 Number of climate

resilience strategy

documents prepared

0 4

Project monitoring

reports,

supervision

missions, District

Team Reports

Output 2.2: Institutional

structure strengthened to cope

with project climate impacts

2.2.1 Number of national

institutions with technical staff trained in climate

change resilience for the

water sector [GEF


0 10

Training report and survey of

district and

national staff

Output 2.3: Best practices for

adaptation (including gender

specific measures) identified

2.3.1 Number of

operational guidelines

based on best practices for

adaptation developed

0 1

Project monitoring

reports,

supervision

missions, District

Team Reports

Outcome 3: - Strengthened awareness of the local communities on climate change and its impact on the natural resources

within the project area - Enhanced ownership of the proposed adaptation structure, plans, technologies and measures

by the communities through a participatory approach - Adaptation technologies are adopted by the institutions and

communities

Output 3.1: Local community awareness strengthened on

climate change and resilience

planning

3.1.1 Number of people trained on climate change

and adaptation options (%

women / % men) [GEF


0 5,000 (52%F)


supervision

missions, District

Team Reports

XII

Output 3.2: Community

ownership enhanced regarding

proposed adaptation structures,

plans, technologies and

measures

3.2.1 Number of people

actively engaged in

structured adaptation

planning (% women / %

men)

0 2,000 (52%F)

Project monitoring

reports,

supervision

missions, District

Team Reports

Output 3.3: Adaptation

technologies adopted by the

institutions and communities

3.3.1 Number of households / institutions

adopting climate adaptation

technologies

0 2,500


supervision

missions, District

Team Reports

Outcome 4: Proactive and structured Monitoring and Evaluation put in place to document lessons learnt throughout

and after project implementation; Lessons learnt are captured and appropriately disseminated

Output 4.1: Monitoring and

Evaluation results prepared

4.1.1 No. of Progress and

Audit Reports submitted by

Project Implementation

Team (PIT) [GEF


0 Annually

4 total

Project monitoring

reports,

supervision

missions, District

Team Reports

Output 4.2 Lessons learnt

captured and disseminated

4.2.1 Number of Lessons

Learned Reports prepared and disseminated

0 5

Project monitoring

reports,

supervision missions, District

Team Reports

Key A

cti

vit

ies

Components Inputs

Component (1) Identifying Climate Risks and Reducing vulnerability to climate change

in the water sector for communities in the project area (USD 2,780,000, about 63%)

GEF LDCF Grant: USD 4,416,210

Government: USD 0 (0%)

Beneficiaries USD 0 (0%)

Component (2) Capacity Development for Improved Water Resource Management

(USD 715,000, about 16%)

Component (3) Awareness Raising of Local Communities on Climate Change

Adaptation (USD 509,000, about 11.5%)

Component (4) Knowledge Management and Monitoring and Evaluation (USD 202,210,

about 4.6%)

XIII

Annex 5: Implementation plan for the additional financing

Outcomes/ Outputs Yr-1 Yr-2 Yr-3 Yr-4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Grant negotiations and signing of grant protocols

Project launch

Component 1 Identifying Climate Risks and Reducing vulnerability to

climate change in the water sector for communities in the project area

Outcome 1: Climate change risks for the targeted communities are identified and documented; Adaptation technologies for water supply are identified, acquired

and disseminated including the development and implementation of an integrated catchment management plan for the larger Metolong catchment; Monitoring

and early warning systems in place (with the participation of the Lesotho Meteorological Services) to mitigate risks

Output 1.1: Assessment of climate impact and adaptation options prepared

Activity 1.1.1: Conduct assessment of likely climate change impact on smaller

communities in the baseline project area

Activity 1.1.2: Conduct assessment of likely climate change impact on

communities in upstream catchment area

Activity 1.1.3: Conduct assessment of climate change impact on LRWSSP

infrastructure

Output 1.2: Climate resilient water supply technologies installed, and included

as enhancements to the integrated catchment management plan

Activity 1.2.1: Assessment of interconnectivity and sustainability of existing

groundwater (boreholes/springs) sources by determining how much of local

groundwater is dependent on rainfall.

Activity 1.2.2: Identification and installation of climate resilient water supply

technology – for example boreholes of appropriate depth, rainwater

harvesting and diversification of resources

Activity 1.2.3: Implementation of the Integrated Demand Management Plan

to be prepared under component 2, also in line with existing programmes put

in place for Lesotho.

Activity 1.2.4: Identification and installation of WASH measures in the

upstream catchment area

Output 1.3: Accurate early-warning data from Lesotho Meteorological

Service provided

Activity 1.3.1: Installation of hydro-meteorological stations / rain gauges for

long-term monitoring to collect quality information and for early warning

XIV



Component 2: Capacity Development for Improved Water Resource

Management

Outcome 2: Strengthened institutional capacity for better water resources management; Strengthened institutional capacity to cope with projected impact of

climate change on water as well as for in house management, monitoring and evaluation of climate change adaptation projects; Best practices for adaptation

(including gender specific measures) are identified

Output 2.1: Plans / regulatory framework established with regards to climate

change and adaptation activities related to adaptation in the water sector

Activity 2.1.1: Integrate climate risks into plans, regulations and planning

guidelines related to water resource management. This includes revision and

update of: (i) Strategy and framework for bringing-on-board

private/community operators; (ii) Strategy for financing rural sanitation

services; and (iii) Comprehensive rural water supply and sanitation

implementation guidelines/ manual.

Activity 2.1.2: Review / update integrated catchment management plan for

the larger Metolong catchment to ensure climate change consideration is

mainstreamed, in line with catchment management activities as outlined in the

Long Term Water and Sanitation Strategy

Activity 2.1.3: Development of an integrated demand management plan to

reduce vulnerability to rainfall variability in the baseline and LDCF project area

Output 2.2: Institutional structure strengthened to cope with project climate impacts

Activity 2.2.1: Institutional capacity development to evaluate water related risks, to plan for contingencies and to communicate effectively to relevant

communities

Activity 2.2.2: Institutional capacity development to allow continuous review

and improvement of adaptation strategy

Activity 2.2.3: Development of the in-house capacity to manage climate

change adaptation activities as well as for monitoring and evaluation activities

Activity 2.2.4: Mainstream climate change adaptation in operation rule of

Metolong Dam

Output 2.3: Best practices for adaptation (including gender specific measures)

identified

Activity 2.3.1: Prepare guidelines for best practice climate change adaptation

approaches, including gender specific measures

XV



Component 3: Awareness Raising of Local Communities on Climate Change

Adaptation

Outcome 3: - Strengthened awareness of the local communities on climate change and its impact on the natural resources within the project area - Enhanced

ownership of the proposed adaptation structure, plans, technologies and measures by the communities through a participatory approach - Adaptation technologies

are adopted by the institutions and communities

Output 3.1: Local community awareness strengthened on climate change and

resilience planning

Activity 3.1.1: Reinforcement of local communities on climate change and its

impact on the natural resources within the project area, including

consideration of indigenous knowledge

Output 3.2: Community ownership enhanced regarding proposed adaptation

structures, plans, technologies and measures

Activity 3.2.1: Participatory approaches to obtain local input into Metolong

catchment management planning and enhanced community ownership of

proposed adaptation structure, plans, technologies and measures

Output 3.3: Adaptation technologies adopted by the institutions and

communities

Activity 3.3.1: Participatory approaches to involve women and men in the

selection and implementation of climate change structures, plans,


Component 4: Knowledge Management and Monitoring and Evaluation

Outcome 4: Proactive and structured Monitoring and Evaluation put in place to document lessons learnt throughout and after project implementation; Lessons

learnt are captured and appropriately disseminated

Output 4.1: Monitoring and Evaluation results prepared

Activity 4.1.1: Collection of monitoring and evaluation data; preparation of

reports

Output 4.2 Lessons learnt captured and disseminated

Activity 4.2.1: Synthesis of lessons learned and dissemination of reports,

project briefs and updates

Activity 4.2.2: Support participation at adaptation practitioner’s events and

knowledge production for dissemination inside and outside the country

First disbursement

Second disbursement

XVI



Third disbursement

Fourth disbursement

Site visits and workshops

Annual Project Reviews

Mid-term Review

Project Completion Report

Terminal evaluation

Annual financial and technical audit

XVII

Annex 6: Summary of Procurement Arrangements for the Additional

Financing

Programme Categories

USD Million

Use of

Country

System

Use of

Bank's

Procedures

Non-

Bank

Funded

Total

Civil Works

Activity 1.2.2: Identification and installation of climate

resilient water supply technology – for example boreholes

of appropriate depth, rainwater harvesting and diversification of resources 1.500 1.500

Activity 1.2.4: Identification and installation of WASH

measures in the upstream catchment area 0.800 0.800

Goods

Activity 1.3.1: Installation of hydro-meteorological

stations / rain gauges for long-term monitoring to collect quality information and for early warning 0.215 0.215

Consultancy Services

Activity 1.1.1: Conduct assessment of likely climate change impact on smaller communities in the baseline

project area 0.060 0.060

Activity 1.1.2: Conduct assessment of likely climate

change impact on communities in upstream catchment area 0.040 0.040

Activity 1.1.3: Conduct assessment of climate change impact on LRWSSP infrastructure 0.025 0.025

Activity 1.2.1: Assessment of interconnectivity and

sustainability of existing groundwater (boreholes/springs)

sources by determining how much of local groundwater is dependent on rainfall. 0.100 0.100

Activity 1.2.3: Implementation of the Integrated Demand

Management Plan to be prepared under component 2, also

in line with existing programmes put in place for Lesotho. 0.040 0.040

Activity 2.1.1: Integrate climate risks into plans, regulations and planning guidelines related to water

resource management. This includes revision and update

of: (i) Strategy and framework for bringing-on-board private/community operators; (ii) Strategy for financing

rural sanitation services; and (iii) Comprehensive rural

water supply and sanitation implementation guidelines/

manual. 0.270 0.270

Activity 2.1.2: Review / update integrated catchment

management plan for the larger Metolong catchment to

ensure climate change consideration is mainstreamed, in line with catchment management activities as outlined in

the Long Term Water and Sanitation Strategy 0.100 0.100

XVIII

Activity 2.1.3: Development of an integrated demand management plan to reduce vulnerability to rainfall

variability in the baseline and LDCF project area 0.075 0.075

Activity 2.2.1: Institutional capacity development to

evaluate water related risks, to plan for contingencies and to communicate effectively to relevant communities 0.031 0.031

Activity 2.2.2: Institutional capacity development to allow

continuous review and improvement of adaptation

strategy 0.060 0.060

Activity 2.2.3: Development of the in-house capacity to

manage climate change adaptation activities as well as for

monitoring and evaluation activities 0.064 0.064

Activity 2.2.4: Mainstream climate change adaptation in

operation rule of Metolong Dam 0.090 0.090

Activity 2.3.1: Prepare guidelines for best practice climate change adaptation approaches, including gender specific

measures 0.025 0.025

Activity 3.1.1: Reinforcement of local communities on

climate change and its impact on the natural resources within the project area, including consideration of

indigenous knowledge 0.081 0.081

Activity 3.2.1: Participatory approaches to obtain local input into Metolong catchment management planning and

enhanced community ownership of proposed adaptation

structure, plans, technologies and measures 0.081 0.081

Activity 3.3.1: Participatory approaches to involve women and men in the selection and implementation of

climate change structures, plans, technologies and

measures 0.347 0.347

Other Expenses

Operating Cost 0.412 0.412

Contingency - -

Total 0.412 4.004 4.416

XIX

Annex 7: GEF CEO Endorsement Letter

XX

Annex 8: Water and Environment Institutional Framework

The management of national water resources is primarily under the responsibility of the Office of

the Commissioner of Water within the Ministry of Energy, Meteorology and Water Affairs. The

Commissioner of Water is mandated for policy direction, coordination of programmes and

activities within the water sector.

The Commissioner of Water has two departments under its supervision: 1) the Department of Rural

Water Supply (DRWS) and 2) the Department of Water Affairs. Additionally, the Commissioner

oversees parastatals such as: i) the Conservation Services of Lowlands Unit; ii) Lesotho Highlands

Water Development Authority (LHDA) and iii) the Water and Sewerage Company (WASCO).

Table. Water and Sanitation Sector Institutional Setting, Roles and Responsibilities

Institutions /

Departments

Roles and responsibilities

Commissioner of

Water, Ministry of

Energy, Meteorology

and Water Affairs

CoW Monitor, regulate, investment and set

policies for the water sector

Department of Water

Affairs (DWA)

Licensing and monitoring of abstraction

and effluents/pollution in the different

sectors: i) industry, irrigation,

hydropower, fishery, recreation, solid

waste, hazardous waste.

Policy direction

Department of Rural

Water Supply (DRWS)

Responsible for rural water supply:

Operation maintenance monitoring &

evaluation, planning / policy, design and

construction

Supervises community based water

services, community water services

Water and Sewerage

Company (WASCO)

Responsible for urban water supply

under license by the Lesotho Electricity

and Water Authority (LEWA)

Catchment management:

The policy, legislative and institutional frameworks for catchment management are not fully

operational in Lesotho. The Metolong Dam and Water Supply Programme (MDWSP) includes the

development of an integrated catchment management plan (ICMP) as part of its environmental

and social management programme, but this plan does not yet fully address climate change

considerations. Integrated catchment management (ICM) is to be carried out through the

institutions of the local government, as indicated in the Water Act and further elaborated in the

Local Government Act. The local authorities are expected to establish Joint Management

Committees for ICM and will be supported by technical secretariats.

XXI

Annex 9: Map of the Programme Area (LDCF)