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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
http://slidepdf.com/reader/full/cs50-guidance-note-on-urban-water-supply-sector-risk-assessment-by-sandra 1/15
a er an overnance o s o n ess on:a er an overnance o s o n ess on:
Guidance Note on Urban Water SupplyGuidance Note on Urban Water Supply
ec or s ssessmenec or s ssessmen
Sandra NicollSandra Nicoll
Public Management, Governance and ParticipationPublic Management, Governance and Participation
Division, RSDDDivision, RSDD
07 May 201007 May 2010
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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and Governance CoP staff with the Urbanand Governance CoP staff with the Urban
But a so ……… to prov e an opportun ty orBut a so ……… to prov e an opportun ty or
water sector and governance colleagues towater sector and governance colleagues to
meet toget er to scuss water sectormeet toget er to scuss water sectorgovernance issues more broadlygovernance issues more broadly
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Context for Sector Governance in ADBContext for Sector Governance in ADB
Urban Water Supply Sector Risk AssessmentUrban Water Supply Sector Risk AssessmentGuidance NoteGuidance Note
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Second Governance and AnticorruptionSecond Governance and Anticorruption
Action Plan (GACAP II )Action Plan (GACAP II )
Public financial managementPublic financial management
Combating corruptionCombating corruption
Applied at three levels:Applied at three levels:
oun ryoun ry SectorSector
44
ro ecro ec
8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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GACAP II A roachGACAP II A roach ADB has adopted a risk ADB has adopted a risk--based approach to governancebased approach to governance
assessment an pr or t zat on o areas or supportassessment an pr or t zat on o areas or support
…That DMC and ADB develo ment ob ectives will not be…That DMC and ADB develo ment ob ectives will not bemet, or will be adversely affected by poor governance,met, or will be adversely affected by poor governance,weakly performing institutions or vulnerability toweakly performing institutions or vulnerability to
……
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Implementation of GACAP IIImplementation of GACAP II
Country
-Country PartnershipInforms,
Procurement,
Corruption
trategy reparat on
Country Risk Management PlanInforms
Sector Sector Risk Mngt Plana) Sector reform support actions
b) Capacity development actionsc Pro ect desi n/im lementation
Informs • Results Frameworks• Sector Road Maps
Risk Assessment – PFM,Procurement,
Corruption
measures
InformsInforms
Informs
Project
Project/Program RRPdesi n documents
66
Project risk mitigation measures
identifiedProject Risk Mngt Plan
Practical Mitigation Measures
Risk Assessment – FM,
Procurement,Corruption
Informs
8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Introduction to Sector Guidance NotesIntroduction to Sector Guidance Notes
RSGP has prepared a series of sector guidance notes: (i)RSGP has prepared a series of sector guidance notes: (i)electricity, (ii) urban water supply, (iii) education (inelectricity, (ii) urban water supply, (iii) education (inprocess), and (iv) road transport (in process)process), and (iv) road transport (in process)
Joint effort with CoPsJoint effort with CoPs
MeantMeant to supplement ADB’sto supplement ADB’s Guidelines for ImplementingGuidelines for Implementing
GACAP II GACAP II n en e o a s a n comm ss on ng un er a ngn en e o a s a n comm ss on ng un er a ng
risk assessments and tailoring TORs to consider sector risk risk assessments and tailoring TORs to consider sector risk vulnerabilitiesvulnerabilities
Part of efforts to generate knowledge products that canPart of efforts to generate knowledge products that caninform future CPS preparationinform future CPS preparation
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Guidance Note: Urban Water SupplyGuidance Note: Urban Water Supply
Sector Risk AssessmentSector Risk Assessment
The urban water su l sector is vulnerable toThe urban water su l sector is vulnerable to
risks due to the involvement of multiplerisks due to the involvement of multipleinstitutions in water governance, capital intensity,institutions in water governance, capital intensity,--
and private sectors, and high demand for waterand private sectors, and high demand for water
services, among others.services, among others.
Sector risks can occur along a value chain ─ Sector risks can occur along a value chain ─ olic , le al framework, re ulation, lannin ,olic , le al framework, re ulation, lannin ,
financial management, procurement, humanfinancial management, procurement, humanresources, and sector operations.resources, and sector operations.
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Framework for Sector Risk AssessmentFramework for Sector Risk Assessment
Institutional Risks Policy, legal framework, and regulation
Organizational
Risks Planning, financial management, procurement,an uman resources
O erations Water harvesting and storage, water treatment,
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distribution, and customer interface
8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Illustrative Governance RisksIllustrative Governance Risks
Polic
Vested interests influence policy and investment prioritiesto enrich themselves and/ or their assoc iates. These
.
The absenc e of a legal framework for manag ing
Legal
framework
, - -sharing arrangements, poses corruption risks.
Regulation
undermines independent sec tor regulation.
Planning
Inadequate planning can lead to ineffic ient de livery ofwater.Lack of informed partic ipation by stakeholders in
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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Illustrative Governance RisksIllustrative Governance Risks
Financial
Insuffic ient revenue streams to cover operations andmaintenance lead to poor service quality and undermine
.
The absenc e of procurement professiona ls leads to loose
contrac ts, legal disputes, and nondelivery of services.rocure-ment Large-scale proc urement crea tes opportunities for
corruption when transparent proc urem ent proc esses areabsent.
Humanresources
Conflic t of interest in senior level appointments can leadto ac tions that favor certain contrac tors and patrons.
Operations
Private water vendors and cartels collude with pub licoffic ials to p revent network extension, forc ing c ustomers
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8/3/2019 CS50 - Guidance Note on Urban Water Supply Sector Risk Assessment by Sandra Nicoll
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RemarksRemarks The guidance note is not intended to beThe guidance note is not intended to be
rigidrigid A risk mana ement lan follows the risk A risk mana ement lan follows the risk
assessmentassessment
Risk mana ement measures are excludedRisk mana ement measures are excludedfrom the guidance note becausefrom the guidance note becausedifferences in countr context call fordifferences in countr context call for
measures that aremeasures that are tailoredtailored to specificto specificsituationssituations
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Water Risk Assessments/Risk Management PlansWater Risk Assessments/Risk Management PlansCountryCountry SectorSector YearYear
ArmeniaArmenia Urban devt (drinking water)Urban devt (drinking water) 20092009CambodiaCambodia Water resource mana ementWater resource mana ement 20072007
PakistanPakistan Urban devt (water supply &Urban devt (water supply & 20092009
PRCPRC Wastewater managementWastewater management 20072007
SamoaSamoa Drainage & sanitation infraDrainage & sanitation infra 20072007
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Key ReferencesKey References
1.1. David Ehrhardt, Eric Groom, Jonathan Halpern, and Seini O’Connor.David Ehrhardt, Eric Groom, Jonathan Halpern, and Seini O’Connor.2007.2007. Economic Regulation of Urban Water and Sanitation Services Economic Regulation of Urban Water and Sanitation Services..
as ng on, : e or an .as ng on, : e or an .
2.2. Jonathan Halpern, Charles Kenny, Eric Dickson, David Ehrhardt, andJonathan Halpern, Charles Kenny, Eric Dickson, David Ehrhardt, andChloe Oliver. 2008.Chloe Oliver. 2008. Deterring Corruption and Improving Governance in Deterring Corruption and Improving Governance in
.. Working Note No. 18. Washington, DC: The World Bank.Working Note No. 18. Washington, DC: The World Bank.
3.3. Janelle Plummer and Piers Cross. 2007. Tackling Corruption in theJanelle Plummer and Piers Cross. 2007. Tackling Corruption in theWater and Sanitation Sector in Africa. In J. Edgardo Campos and SanjayWater and Sanitation Sector in Africa. In J. Edgardo Campos and SanjayPradhan, eds.Pradhan, eds. The Many Faces of Corruption.The Many Faces of Corruption. Washington, DC: TheWashington, DC: TheWorld Bank.World Bank.
4.4. Transparency International. 2008.Transparency International. 2008. Global Corruption Report 2008:Global Corruption Report 2008:
. .. .5.5. Water Integrity Network. 2008.Water Integrity Network. 2008. Advocating for Integrity in the Water Advocating for Integrity in the Water
Sector Sector . Berlin: Water Integrity Network.. Berlin: Water Integrity Network.
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Thank YouThank You
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