75043 Integrated Urban Water Management - Lessons and Recommendations from Regional Experiences in Latin America, Central Asia, and Africa ALVAR CLOSAS, MATTHIJS SCHURING, AND DIEGO RODRIGUEZ WPP CASE PROFILE / NO. 1 / NOVEMBER 2012 WPP WATER PARTNERSHIP PROGRAM INTEGRATED URBAN WATER MANAGEMENT / 1 © 2012 The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work was made possible by the financial contribution of the Water Partnership Program (WPP) - http://water.worldbank.org/water/wpp. More information about the regional IUWM activities funded by the WPP can be found on the following website: http://water.worldbank.org/iuwm. This work is a product of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors or the governments they represent. 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Photo credits cover page: Left: Harare, Zimbabwe. © Len Abrams, SeasonImages.com Right: Tegucigalpa, Honduras. © michaeljzealot (www.flickr.com/photos/ michaeljzealot/5378314969/) Integrated Urban Water Management - Lessons and Recommendations from Regional Experiences in Latin America, Central Asia, and Africa WPP CASE PROFILE 1 / NOVEMBER 2012 Alvar Closas (Consultant) Matthijs Schuring (Operations Officer and WPP Coordinator) Diego Rodriguez (Senior Economist and WPP Manager) The World Bank Water Partnership Program 1818 H Street NW Washington DC 20433 U.S.A. http://water.worldbank.org/water/wpp iv / WPP CASE PROFILE 1 Table of Contents Key Findings..............................................................................................................................................................................................vi Introduction...............................................................................................................................................................................................vii Acknowledgements..............................................................................................................................................................................viii Chapter 1. Conceptualizing IUWM ....................................................................................................................................................1 1.1 Setting the Scene: Urbanization and Socioeconomic Development..............................................................................1 1.2 Review of Challenges to the Delivery of Urban Services...................................................................................................2 1.3 The WPP’s Role in Promoting the Implementation of IUWM in the World Bank........................................................3 1.4 A Paradigm Shift from Traditional Technology to a Synergistic Relationship between the Urban and Water Sectors................................................................................................................................4 1.4.1 The IUWM Approach.................................................................................................................................................... 4 1.4.2 Methodology for the Operationalization of IUWM................................................................................................. 5 1.4.3 Studying the Costs of IUWM Options..................................................................................................................... 6 1.4.4 Overview of Global IUWM Initiatives ...................................................................................................................... 7 Chapter 2. Overview of IUWM Projects in Three Regions..........................................................................................................8 2.1 Latin America and the Caribbean: Conceptualizing IUWM and its Operationalization .............................................8 2.1.1 Using Case Studies to Highlight IUWM Challenges and Good Practices..................................................... 8 2.1.2 Highlighting Good IUWM Practices in Latin America and the Caribbean..................................................... 9 2.2 Europe and Central Asia: Planning Infrastructure and Valuing Non-use Water Services for IUWM Activities in Baku, Azerbaijan............................................................................................................................ 10 2.2.1 Economic Evaluation of Water Services in Baku............................................................................................... 10 2.2.2 Cost of IUWM Strategies for Baku6 ..................................................................................................................... 10 2.3 Sub-Saharan Africa: Planning Innovative Technology Strategies and Assessing Challenges and Opportunities for IUWM......................................................................................................................... 11 2.3.1 Background Study of 31 Cities in Africa.............................................................................................................. 12 2.3.2. A Study of IUWM Knowledge, Attitudes, and Practices (KAP) ................................................................... 13 2.3.3 IUWM Approaches to Diversify Water Resources in Four Cities................................................................... 13 Chapter 3. IUWM: The Way Forward.............................................................................................................................................................. 15 3.1 Lessons for IUWM at a Global Scale ................................................................................................................................ 15 3.1.1 Varying Global Challenges and Opportunities for IUWM................................................................................ 15 3.1.2 Major Implementation Challenges ......................................................................................................................... 16 3.2 The Role of the World Bank in Supporting IUWM............................................................................................................17 3.2.1 Addressing Complex Challenges.............................................................................................................................17 3.3.2 Sustaining IUWM Practices Internationally.......................................................................................................... 18 3.3.3 Operationalizing IUWM: Learning by Doing........................................................................................................ 18 3.3.4 Building Capacities and Improving Strategic Alignment................................................................................... 19 3.3.5 Sustainable Cities and Green Growth................................................................................................................... 19 References.............................................................................................................................................................................................. 20 Annex 1 - Detailed Phases for the Operationalization of IUWM.......................................................................................... 21 Annex 2 - Comparative Costs of IUWM Strategies for Aracaju, Brazil, and Asuncion, Paraguay............................. 24 Annex 3 - Capital Costs of IUWM in Baku, Azerbaijan............................................................................................................. 26 Annex 4 - Results of the Study of Non-use Values of Water in Baku, Azerbaijan.......................................................... 27 Annex 5 - List of 31 Cities in Sub-Saharan Africa..................................................................................................................... 28 Annex 6 - List of Reports from WPP-funded Regional IUWM Activities............................................................................. 29 INTEGRATED URBAN WATER MANAGEMENT / v Key Findings The purpose of this report is to review a set of Integrated IUWM Needs Going Forward Urban Water Management (IUWM) initiatives and pilot studies funded by the World Bank’s Water Partnership • Information and data on access to urban services, river Program (WPP) in Latin America and the Caribbean, basin hydrology, and the state of urban infrastructure are Europe, and Central Asia and sub-Saharan Africa. The key essential in order to plan IUWM approaches. findings are: • There is a need to develop further research, gather more data, and operationalize IUWM approaches in several New Challenges, New Realities pilot cities. • Support from international donors and already-established • Growing cities face increasing challenges affecting the professional and academic platforms will help sustain and provision of basic urban services. As a result, business- create a pool of common knowledge on IUWM. as-usual approaches may be too costly and not resilient • There is a need to develop analytical work targeted to to land use changes, climate change, and other future policy makers so that they can make better assessments shocks. of the benefits of traditional versus integrated approaches • Business-as-usual approaches with traditional engineering to water management.  solutions are not likely to address the multitude of water issues (flooding and drainage, water supply quality and quantity, sanitation, urban irrigation) that cites face. • The availability of water for cities in the catchment is shrinking due to land-use changes, demands for irrigation and energy, environmental degradation, climate change, and new urban settlements upstream. Often there is not enough water to satisfy all users. IUWM: A Valid Tool for Planning, Decision Making, and Implementation • IUWM is an emerging concept that can be used to complement traditional planning and technological ap- proaches to resolving the existing challenges that affect the provision of services in cities. • In addition to improved planning and management, the efficiency of securing and sustaining water resources for expanding cities can be increased through the imple- mentation of alternative solutions, such as: (1) innovative technologies planned around new urban clusters, (2) de- centralized infrastructure, and (3) diversification of water sources. These alternatives could be sequenced along with traditional infrastructure. • A detailed understanding of the economic costs of IUWM will help decision makers and planners choose the best and most efficient solution for cities. • Flexible and adaptive institutional frameworks need to be in place in order to sustain and secure the implementation of IUWM. • Stakeholder participation is essential to guarantee the sustainability of IUWM. vi / WPP CASE PROFILE 1 Introduction According to the United Nations Population Division, the technologies, management, and institutional practices to world population is expected to grow by 2.3 billion between supply and secure water for urban areas. The focus of this 2011 and 2050, reaching 9.3 billion people. Most of the approach is the integration of planning, management, and population growth over the next four decades is expected stakeholder participation across institutions at each stage. to take place in urban areas, which are predicted to gain IUWM’s view on the urban water cycle is a holistic one by 2.6 billion people and reach 6.3 billion inhabitants in 2050. which all components of the cycle (water supply, sanitation, Most of this urban population growth will happen in cities of storm water management) are integrated within the wider one million or more residents in the less developed regions watershed. of the world (UNDESA 2012). The Water Partnership Program (WPP), a multi-donor trust Green growth in urban areas is linked to the provision of fund administered by the World Bank and funded by the basic services and the management of water resources governments of the Netherlands, the United Kingdom, and and supply. The sustainable management and use of water Denmark, supports the portfolio of World Bank projects on resources, and the provision of quality services to a growing water by offering technical assistance and analytical work population underpin the future success of the development for project preparation and implementation across all water of cities. They are also important to facilitate economic subsectors. Since its inception in 2009, a total of 214 growth, and are at the core of social and economic develop- activities in 62 countries have been initiated, representing ment in an urbanizing world. $19.6 million in grants (WPP 2012). Supplying water, sanitation, and other basic services to In the past 3 years, the WPP has dedicated a substantial increasingly sprawling cities and growing informal areas part of its resources to explore and develop the concept of represents both a technical and a social challenge. The IUWM through the implementation of a series of projects lack of solid waste collection and its safe disposal affects examining the main challenges and opportunities for IUWM the capacity of cities to deal with floods by clogging up the in Latin America and the Caribbean (LCR), Europe and drainage. It also presents a risk for human health as well Central Asia (ECA), and sub-Saharan Africa. as the environment. The poor maintenance of pit latrines and lack of control of wastewater effluents pollutes water This set of regional projects has focused on different but bodies, which in some cases are essential for supplying complementary methodological and practical aspects of water to the city. The competition over the same resource IUWM. The study emphasized the use of innovative urban between cities and other sectors also has implications at technologies in sub-Saharan Africa. In ECA, the WPP the river basin level. funded a project focused on the analysis of the economic costs of IUWM and the valuation of alternative water uses. With the world becoming more urban, the challenges In LCR, the main focus of the background reports was on cities face to provide secure and sustainable services for the process and development of a theoretical and method- their growing populations are also growing. The process ological framework. At the same time, a series of city studies of human concentration in urban areas has important highlighted existing cases of IUWM in the region. impacts on economic growth, but the risks associated with the lack of urban services can hinder the potential for The purpose of this report is to promote the dissemina- economic and social development. Traditional technologies tion of cross regional knowledge on IUWM based on the and current management and institutional practices are no lessons learned from the WPP-funded activities in these longer sufficient to meet these challenges. Practitioners and three regions. The report also aims to promote the inclusion decision makers are in need of tools to help them provide of IUWM principles in future World Bank urban water services that meet the needs growing urban populations projects. Finally, the goal is also to stimulate the debate on while respecting other upstream and downstream users as IUWM at a global scale and produce evidence of its use well as the environment. and advantages. The emerging concept of Integrated Urban Water The lessons arising from these three regions as well as the Management (IUWM) originates from the complexity of conceptual and methodological materials generated from challenges affecting the provision of basic human services the different projects represent a valuable set of implemen- (such as water supply) in expanding cities worldwide. IUWM tation guidelines, good practices, and analytical tools. is an approach that seeks to develop efficient and flexible As such, they can complement and enrich the emerging urban water systems by adopting a diversity of existing knowledge and literature on IUWM. INTEGRATED URBAN WATER MANAGEMENT / vii This report is aimed at a general audience of researchers, Chapter 2 reviews the findings of 10 case studies in three practitioners, and members of the donor community involved regions: Latin America and the Caribbean, Europe and in urban water and sanitation services, water resource Central Asia, and sub-Saharan Africa. This chapter also management, and urban planning. The findings presented reviews the main aspects of each project and highlights in this report will also interest city leaders and members of their principal contributions to the general understanding of local and national agencies in charge of securing the future IUWM. Finally, chapter 3 puts forward a set of recommenda- provision of urban services. tions to sustain and enhance the scope of IUWM activi- ties, and describes how the World Bank and its Water The structure of this report is as follows: chapter 1 Partnership Program can facilitate the piloting, operational- introduces the main concepts of IUWM and describes the ization, and scale up of IUWM. principal components for the operationalization of IUWM. Acknowledgements This report was prepared with funding from the World Greg Browder (Lead Water and Sanitation Specialist), Bank’s Water Partnership Program (WPP). The authors— Michael Jacobsen (Lead Water Supply and Sanitation Alvar Closas (Consultant), Matthijs Schuring (Operations Specialist), and Michael Webster (Senior Water and Officer and WPP Coordinator), and Diego Rodriguez Sanitation Specialist) for their valuable inputs and review of (Senior Economist and WPP Manager)—would like to thank the draft, as well as Graciela Testa for editing the document, David Michaud (Senior Water and Sanitation Specialist), and Studio Grafik for the design and layout.  viii / WPP CASE PROFILE 1 CHAPTER 1. CONCEPTUALIZING IUWM Population growth is a major factor in urbanization processes, and expanding cities can act as engines of economic growth. However, many challenges affect the provision of urban services such as solid waste, water supply, and wastewater collection. The World Bank’s Water Partnership Program (WPP) has supported the development of an emerging integrated urban water management (IUWM) framework that can be used to optimize a response to those challenges. The WPP has supported several case studies in Latin America and the Caribbean (LCR), Europe and Central Asia (ECA), and sub-Saharan Africa. 1.1 Setting the Scene: Urbanization FIGURE 1. URBAN POPULATION GROWTH IN LCR, ECA, and Socioeconomic Development AND SUB-SAHARAN AFRICA (PERCENT) The world is becoming more urban. According to the 2009 100 World Development Report, in 1900 only 4.3 percent of 83 84 85 86 the world’s population lived in the largest 100 cities, but by 80 71 73 2009 they concentrated almost 10.5 percent of the global 68 69 population. The United Nations predicts that by 2030 more 60 people will live in cities than in rural areas in every region of the world (UN-HABITAT 2008). In 2011, cities with 1 million 41 43 37 38 inhabitants and more accounted for 40 percent of the 40 world’s urban population, and by 2025 they are expected to account for 47 percent. Regionally, Asia is expected 20 to see its population increase by 1.4 billion, Africa by 0.9 billion, and Latin America and the Caribbean by 1.2 billion 0 2011 2015 2020 2025 (UNDESA 2012). Sub-Saharan Africa Western Asia South America Of the three regions studied, the pattern of urban popula- tion growth in South America shows the largest degree of Note: the three regions correspond to UNDESA’s definition of regions, urban concentration, with 83 percent of its current popula- which does not exactly correspond to the World Bank’s definition but includes the countries included in this study. tion living in urban areas (figure 1). While sub-Saharan Source: UNDESA 2012 Africa has the lowest degree of urban concentration, the region shows the highest annual growth rates (table 1), and is expected to reach an urbanization rate of 43 percent The process of human concentration in urban areas has in 2025. By 2045, the urban population of sub-Saharan important positive impacts on economic growth as industries Africa will have almost tripled. Western Asia also presents and capital converge (Bertinelli and Strobl 2007). Urban a high degree of urban concentration (68 percent), which is growth may concentrate production and income (Jacobsen et expected to almost double by 2050. al. 2012). For example, the case studies show that the city of Aracaju in Brazil concentrates 56 percent of the GDP for the state of Sergipe (World Bank 2012b), while the city of Baku in Azerbaijan represents around 50 percent of the country’s national economy (World Bank 2011). There is ample evidence that properly managed cities are engines of growth. INTEGRATED URBAN WATER MANAGEMENT / 1 TABLE 1. areas can also affect water supply through deforestation ANNUAL RATES OF URBAN GROWTH FOR SUB-SAHARAN of river catchments and changes to river hydrology (World AFRICA, WESTERN ASIA, AND SOUTH AMERICA Bank 2012b; World Bank 2012e). Region Annual Urban Growth Rate (%) The lack of water supply can result in the over-extension 2010- 2015- 2020- 2025- of the existing water supply infrastructure, creating 2015 2020 2025 2030 low-pressure areas in the city’s pipes and causing them to Sub-Saharan Africa 3.61 3.53 3.4 3.28 burst (Jacobsen et al. 2012; World Bank 2011). Insufficient Western Asia 2.47 2.17 1.92 1.71 metering makes it difficult to estimate water consumption South America 1.32 1.14 0.96 0.78 and non-revenue water losses. In addition, the lack of proper pricing mechanisms is not conducive to increased water Source: UNDESA 2012. conservation (World Bank 2012b; World Bank 2012f). National policies, as well as economic and political institu- Over-extraction of groundwater is posing a threat to the tions can affect the process of urban concentration by sustainability of aquifers. When water abstraction exceeds encouraging businesses, firms, and workers to cluster natural recharge, groundwater becomes depleted and around cities and build economies of scale that will make contaminated surface water—and salt water in coastal investments more attractive (Henderson 2003; World areas—can flow into aquifers. Development Report 2009). The lack of adequate connections to sewage systems and The important role of cities arises also from their capacity the resulting discharge of untreated domestic and industrial to agglomerate, generate, and sustain economic activi- effluent into rivers pollutes water bodies downstream, ties. Cities are able to foster the exchange of ideas and as well as strategic water resources and natural ecosys- technology, and also stimulate higher levels of economic tems (World Bank 2012c; World Bank 2012d). Surface growth through the concentration of workforce and the and groundwater pollution problems result from unsafe, attraction of resources. The concentration of population in unsecure, and untreated wastewater effluents, and poorly larger economic poles is also a driving market force that managed and maintained septic tanks (Jacobsen et al. facilitates the exchange of goods and services (World 2012). Water connections made with poor quality materials Development Report 2009). and deficient management practices are also another potential source of contamination (World Bank 2011). However, increased urban concentration, coupled with a lack of infrastructure creates major constraints and Recurring floods and the lack of proper drainage systems reduces business opportunities by raising transaction is increasing the damage to physical assets as well as the costs, which will hinder the viability of future business number of people affected. Old drainage systems cannot keep projects (Kessides 2005). up with population growth and uncontrolled urban develop- ment such as informal settlements in coastal areas, natural flood plains, and channel margins, increasing exposure to 1.2 Review of Challenges to the Delivery floods (World Bank 2012c). In coastal cities flooding can be of Urban Services exacerbated by hide tide events and the risk of sea level rise. Additionally, residents who lack adequate connections increas- The environmental, social, and economic challenges affecting ingly rely on insecure sources of water (springs, shallow wells), cities have rendered obsolete the delivery of urban services which are subject to pollution and contamination, especially through traditional technology models. The spread of informal after flood events (Jacobsen et al. 2012). settlements and chaotic urban growth make the implementa- tion of urban planning difficult. It is important to recognize the Cities are also facing low efficiency and coverage of solid interconnections and interdependencies between urban waste collection systems and a lack of investment and planning, resource management, and service delivery if suitable landfill sites for the safe disposal of solid waste and the development of cities is to take place in an efficient, clean, industrial by-products (World Bank 2011). Low rates of solid resilient, and equitable manner (World Bank 2012a). waste collection can cause drainage problems, increase the vulnerability to flooding, and threaten surface and Rapidly expanding populations and their demand for underground water quality (World Bank 2012b; World Bank water can overstretch water resources in river basin systems 2012e). These issues can significantly increase health risks. and increase the risk of water scarcity. Competing uses over water resources from other settlements within small Climate change and the lack of predictability of extreme river basins can affect the current and future availability of weather events (e.g. floods and droughts) will also affect water resources in cities. The uncontrolled sprawl of urban expanding cities. If the challenges affecting urban areas 2 / WPP CASE PROFILE 1 are to be met it is imperative that planning begin now. Jacobsen et al. 2012). The lack of human and financial resources Extreme events affect economic development. In addition, to face the challenges of urban water management impedes the climate variability and change discourages investments and implementation of policy and planning (Jacobsen et al. 2012). economic development thus aggravating poverty. The lack of resources hinders the development of infrastructure and affects the sustainability of monitoring and information Institutional fragmentation and lack of coordination across systems, as well as water quality and hydrologic and meteoro- sectors and municipalities is an underlying challenge for logical systems. This makes decision-making processes for cities the management of urban water services. Fragmented and river basins more difficult (Jacobsen et al. 2012). institutional settings shared between municipal, state, and federal levels of government slow down policy implementa- tion and, in some instances, make urban services manage- 1.3 The WPP’s Role in Promoting the ment and planning inefficient. This lack of coordination at Implementation of IUWM in the World Bank the municipal, regional, and national level creates undefined mandates, roles, and responsibilities, contributing to the The Water Partnership Program (WPP) was set up in poor enforcement of existing regulations (World Bank 2009 as a multi-donor trust fund with funding from the 2012c; World Bank 2012f). governments of the Netherlands, the United Kingdom, and Denmark. The goal of the WPP is to address crosscutting Utilities operate aging infrastructure that is not adequate issues related to water resources management and develop- for supplying the cities of tomorrow. These infrastructures ment. It was also tasked with supporting the expansion and require high capital expenditure and funding; however, improvement of social and productive water services in the lack of cost recovery places a limit on the ability to water supply and sanitation, irrigation and drainage, energy, expand service. In addition, poor maintenance leads to environmental services, and water resources management. poor continuity of service and inadequate water quality and supply. In sub-Saharan Africa, non-revenue water The WPP aims to strengthen the World Bank’s water lending from service providers averages 39 percent, almost twice projects by providing technical assistance and analysis, and as much as the best practice of 20 percent. This average by channeling expert support and applied global knowledge hides a wide range of figures. Some utilities have losses that to projects during both the preparation and the implementa- reach as high as 68 percent of their revenues, while utilities tion phases. It seeks to promote innovative and pragmatic in South Africa and Namibia post water losses of only 12 approaches that will secure access to basic needs (water, percent of their revenues (Dominguez-Torres 2011). sanitation, food, and energy) while protecting human, physical, and natural capital from water-related extremes. A goal of the Coordination and management capacities are hampered by WPP is also to sustain inclusive green growth through water outdated or inexistent integrated plans (World Bank 2012b; security, supply as well as resource availability and quality. TABLE 2. IUWM RESEARCH PROJECTS AND CASE STUDIES FUNDED BY THE WPP (2009-2012)1 Region Case Studies WPP Number of Country City Disbursements WPP Grants (US$) LCR Brazil Aracaju 325,875 1 Sao Paulo Colombia Bogota Honduras Tegucigalpa Paraguay Asuncion ECA Azerbaijan Baku 244,157 1 Sub-Saharan Africa* Cameroon Douala 372,310 2 Kenya Nairobi Uganda Arua Uganda Mbale Notes: LCR: Latin America and Caribbean Region; ECA: Europe and Central Asia. (*) The project in sub-Saharan Africa also included a diagnostic of challenges and opportunities for IUWM in 31 cities. Source: The Water Partnership Program (November 2012). 1. This does not include WPP funding for regional IUWM workshops and dissemination activities after June 2012. INTEGRATED URBAN WATER MANAGEMENT / 3 The WPP began providing support to IUWM in 2009, 1.4.1 The IUWM Approach offering assistance to the Latin America and the Caribbean region to document the lessons learned in Sao Paulo The traditional business-as-usual approach to urban water and other regional cities in dealing with major challenges management has locked-in urban development paths with affecting the supply of water and other basic urban services. large-scale infrastructure and technology. The emerging IUWM An initial grant request was put forward to the WPP and a approach represents a change of paradigm from a traditional task team was created to prepare a series of case studies set of technologies towards a synergic urban-water relation- of urban areas with good practices in IUWM, as well as a ship (figure 2). The need to incorporate new solutions to preliminary methodology for the diagnostic and development traditional engineering structures is not an option anymore. It of IUWM. Since then, the WPP has supported four projects has become reality because of the fact that urban populations examining the potential of IUWM in three regions: Latin very soon will struggle to find new sources of water. Water is America and the Caribbean, Europe and Central Asia, and seen as providing a multiplicity of services and uses that can be sub-Saharan Africa (table 2). harnessed through integrated systems. For example, wastewater has added values in the form of water supply, energy or nutrients The WPP’s support for IUWM has been carried out through that can be retrieved by recycling it (Jacobsen et al. 2012). grants allocated to specific activities to mainstream the concept of integrated urban water management in World Urban development is achieved by bringing together the Bank operations, and for the formulation of case studies in components that affect urban water management: storm cities focusing on several practical aspects of the implemen- water, sanitation, water supply, and solid waste (figure 2). tation of IUWM. The links between the urban system and the watershed are combined with social participation and management integra- tion to produce optimal social, economic, and environ- 1.4 A Paradigm Shift from Traditional mental outcomes. Managing urban water across different Technology to a Synergistic Relationship institutions and organizations while allowing all players and between the Urban and Water Sectors end-users to be part of the process ensures the sustain- ability of the process and its outcomes. The study carried out in Latin America and the Caribbean under the Blue Water Green Cities initiative sought to The dependence and impact of cities on the wider develop IUWM as a flexible, participatory, and iterative watershed is also a fundamental part of integrated urban approach that integrates in a holistic way all components water management. Sustaining access to water resources of the urban water cycle (water supply, sanitation, storm for cities must take into account the needs of upstream and water management, and waste management). This integra- downstream users and incorporate planning measures at tion happens within the city’s urban development and in the watershed level. Additionally, the effects of upstream the context of the wider river watershed, helping maximize land-use changes, agriculture or deforestation can alter the economic, social, and environmental benefits in an equitable hydrological regime (that is, the availability and the quality manner (World Bank 2012a). of water in river catchments) and cause stress on urban water supply systems. Conversely, cities can also have an The IUWM approach in sub-Saharan Africa conceptualized impact on water quality for downstream users by releasing the city’s water cycle as a single living organism capable untreated wastewater effluents, or on water availability by of sustaining a growing number of inhabitants through a reducing environmental flows (Jacobsen et al. 2012). continuous and sustainable cycle of interdependent urban services (Jacobsen et al. 2012). FIGURE 2. SIMPLIFIED IUWM CONCEPTUAL MODEL Although varying in scope and aims, the three regional River Basin Management projects sponsored by the WPP have produced a set of Flood and drought different but complementary IUWM approaches. In LCR, Urban Development Managemnt the emphasis was on the implementation process and Water Sanitation included a strong focus on stakeholder participation. In Supply Wastewater sub-Saharan Africa, more emphasis was put on alterna- Water Services tive planning processes and innovative technical solutions Storm Solid to urban water challenges. In ECA, the focus was on cost Water Waste Irrigation Water Users benefit analysis and valuation of alternative uses of water. The aim of this section is to reflect upon these different and Green Cities Navigation varying approaches in order to draw general and common Ecosystems knowledge on integrated urban water management. Land use Hydropower Source: World Bank 2012a based on Porto and Tucci 2010. 4 / WPP CASE PROFILE 1 BOX 1. GOOD GENERAL PLANNING AND MANAGEMENT PRACTICES FOR IUWM • IUWM needs to be tailored to the specific and dynamic challenges of each urban area • IUWM has to incorporate in its scope the different interactions among users in the watershed • IUWM involves a set of participatory approaches and instruments • IUWM is not a one-time action, but an iterative, long-term process • IUWM is as much about institutions and processes as it is about infrastructure and investments • IUWM must be informed by sound science and technical analysis • IUWM requires moving away from segmented, linear thinking towards a more interdependent and integrated urban planning • IUWM seeks to address today’s challenges without losing sight of tomorrow’s needs. Source: Based on World Bank 2012a. FIGURE 3. PHASES FOR THE OPERATIONALIZATION OF IUWM • Capacity building plan and activities plan Entry point for cities Engagement • Stakeholder identification with no or limited IUWM • Participatory planning experience • Shared identification and prioritization of water and urban issues Assessment • Qualitative and quantitative assessment • Final diagnostic Entry point for cities with some IUWM experi- ence seeking to refine • Evaluation of possible strategies strategies • Consensus on objectives, goals, and actions Participatory Planning • Identification of potential funding sources • Strategic action plan • Participatory implementation of the strategic action plan Entry point for cities with Implementation existing IUWM experience • Design of monitoring system and adjustment mechanisms and Monitoring but limited monitoring • IUWM plan implemented and monitored Source: Based on World Bank 2012a. Following a set of good planning and management practices Ultimately, IUWM can contribute to better urban water (box 1), the overall benefit of adopting the IUWM approach management in the following ways: is its capacity to simultaneously consider the interdepen- dent issues concerning water supply in growing urban • It can provide a more complete analysis to diagnose a areas given the multiple challenges of urban and industrial city’s water issues and prioritize interventions. development, preservation of the environment, and climate • It can improve planning integration and infrastructure change, while at the same time taking into account both sequencing. traditional and alternative water resources (Scandizzo and • It can inform better engineering practices by providing a Abbasov 2012). more diverse set of options. Finding inclusive and adaptive technology solutions to 1.4.2 Methodology for the Operationalization of IUWM provide basic social services will require institutional and management flexibility and innovation. The diversification of The work funded by the WPP in Latin America has solutions to supply water for cities through adaptive systems produced, among other outputs, a methodology for the will improve the cities’ water security and will help cope operationalization of integrated urban water management. with future uncertainty. Such innovative approaches (e.g. This guide establishes a set of phases through which it is integration of decentralized wastewater treatment systems possible to plan, develop, and implement an IUWM plan for different urban areas, groundwater, recycled water, (figure 3). The WPP-funded project in sub-Saharan Africa rainwater harvesting or maintenance and improvement of also emphasized that implementing an IUWM approach leakage control) could be as good as building a new water needs to be combined with assessment and implementation reservoir and, in some cases, also cheaper (Eckart et al. of different solutions (Jacobsen et al. 2012). 2012a, 2012b; Jacobsen et al. 2012). INTEGRATED URBAN WATER MANAGEMENT / 5 The aim is to present an overall roadmap of the main The identification of potential economic benefits for each milestones to be considered when engaging in IUWM for proposed technological option will require an understanding decision-making purposes. It is a step-by-step approach that of all water-related investments and their linkages, as well as can be used to guide practitioners in assisting cities and a complete assessment of current and future alternatives for metropolitan areas in developing or strengthening IUWM water supply. These first economic assessments will allow strategies. Additionally, it can also be used to assist other the decision makers to form an idea of the financial capacity actors at the municipal or national levels in planning and to implement the proposed option, as well as the timeline prioritizing urban investments (World Bank 2012a). and funds needed (Scandizzio and Abbasov 2012). The different phases are designed to respond to the specific For the study of Baku, Azerbaijan, the maximization of challenges of a city and its level of institutional development benefits was derived by estimating the non-use values attrib- through a set of different activities.2 Although the phases are uted to water and the benefits that will accrue from improve- designed for cities for which IUWM is a new concept, the ments in water and sanitation supply and service delivery, proposed guide for Latin America and the Caribbean allows for wastewater treatment and improvement in efficiencies in several entry points at different steps in the process for cities the distribution system, and in freshwater and coastal water where IUWM involvement is already somewhat advanced. quality (Scandizzio and Abbasov 2012).3 1.4.3 Studying the Costs of IUWM Options In Nairobi, the activity supported by the WPP concludes that implementing an IUWM strategy for the city should include Seeing IUWM as an adaptive framework means finding setting up storm water and greywater harvesting clusters, as solutions to problems in a specific case-by-case approach. well as improving leakage and water demand management Studying the initial conditions and diagnosis is essential (figure 4) (Eckart et al. 2012). The unit costs per cubic meter for the success and effectiveness of IUWM. This implies of the implementation of those IUWM services (in combination a thorough understanding of the economic, political, and with limited traditional infrastructure) are lower than those of the technical set up of urban water management, as well as the business-as-usual strategy with only traditional water infrastruc- institutional structure. ture, both new reservoirs, and the extension of old ones. FIGURE 4. UNIT COST OF WATER FROM TRADITIONAL AND IUWM SOLUTIONS FOR NAIROBI Private boreholes Ruiru and Kiunyu well Northern Collector Phase 1 Northern Collector phase 2 Ndaragu 1 dam Technology solutions Ndaragu Phase 2 Maragua 4 Extension Sasumua Reservoir Leakage management Water demand management Stormwater harvesting cluster Greywater harvesting cluster Total Unit cost Business as Usual .55 Total Unit cost IUWM approach .49 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Unit costs per m (US$) 3 Bussiness as usual IUWM approach Source: Based on Eckart et al. 2012a. 2. See annex 1 for a more detailed account of the different activities for each phase. 3. See chapter 2 and table 2 in Annex. 6 / WPP CASE PROFILE 1 A study of the economic cost of deficient urban water The Global Water Partnership (GWP) was founded in services in Honduras highlighted the amount paid by the city 1996 by the World Bank, the United Nations Development of Tegucigalpa for not maintaining and investing in urban Programme, and the Swedish International Development services (figure 5). The amount exceeded $160 million or Coordination Agency to foster research and practice in close to 2.5 percent of the country’s gross national product integrated water resource management (IWRM). This initia- (World Bank 2012f). tive represents a major milestone in ensuring the develop- ment of IWRM principles at the transboundary, country, and also urban level. It includes more than 50 country partners FIGURE 5. THE ANNUAL ECONOMIC COST OF DEFICIENT and more than 1,000 formal partner organizations. The URBAN WATER SERVICES IN TEGUCIGALPA, HONDURAS GWP Toolbox and technical publications is a general reposi- tory of IWRM and IUWM knowledge and practices.4 Lack of water supply Lack of sanitation $88.2 M, 55% $54.7 M, 34% The International Water Association (IWA) and its Cities of the Future program were set up as one of the IWA’s key programs to ensure water security for the cities of the world. The harmonized and re-engineered design of cities to minimize the use of natural resources and the impact on the environment is linked with an increase in coverage of water and sanitation. With this program, IWA aims to help cities, utilities, and the consulting and research community to work Flooding together in order to create robust, sustainable, and resilient $9.2 M, 6% responses to the changes cities are facing. Lack of solid waste collection $7.8 M, 5% The Local Governments for Sustainability organization (ICLEI) is an association of cities and local governments Source: World Bank 2012f. dedicated to sustainable development. ICLEI brings together 12 mega-cities, 100 super-cities and urban regions, 450 large cities, and 450 small and medium- 1.4.4 Overview of Global IUWM Initiatives sized cities and towns in 84 countries. This association was founded in 1990 and its goals are to promote local In addition to specific cities that are currently planning and action for global sustainability and support cities to become managing integrated urban and water services, there is a sustainable, resilient, and resource efficient by building growing body of knowledge and global experience about smart infrastructures and connecting local leaders and IUWM practices sponsored by several international organi- urban communities to achieve global sustainability and zations and research programs. green economic growth. Project SWITCH (funded by the European Union) involved In Australia, the Commonwealth Scientific and Industrial a consortium of 33 partners, academic and practitioner Research Organisation (CSIRO) has funded collaborative organizations, and municipalities from 15 countries. This research on IUWM undertaken by professional groups, project, which began in 2006 and ended in 2011, focused research organizations, and national universities. Their on developing practical guidelines for the implementation research focuses on providing and improving technolo- of IUWM solutions for the city of the future. It included gies for efficient urban delivery and distribution of water, as research projects on technology options, training toolkits, well as the implementation of safe and efficient sustainable and demonstration projects in 12 cities in 4 continents. This water production systems (from wastewater, storm, and roof project’s positive impact was sustained by learning alliances water). Their focus also includes research and assistance specifically created to provide key stakeholders with a for urban planners, managers, and policy makers to better decision-making platform for the definition and formulation understand the transitional processes towards alternative of strategic urban plans. and sustainable water systems for cities. 4. See, for instance, Technical Background Paper No.16 on Integrated Urban Water Management by Bahri (2012). INTEGRATED URBAN WATER MANAGEMENT / 7 CHAPTER 2. OVERVIEW OF IUWM PROJECTS IN THREE REGIONS The WPP has funded activities on integrated urban water management in Latin American and the Caribbean (LCR), Europe and Central Asia (ECA), and sub-Saharan Africa. The initiative in Latin America and the Caribbean focused on the IUWM implementation process and served to develop a conceptual framework and implementation guide for integrated urban water management. It also studied five cases where different challenges have undermined the capacities of local and national governments to provide sustainable urban services, as well as social and environmental benefits for the targeted populations. In Europe and Central Asia, the focus was on formulating an IUWM strategy for Baku, Azerbaijan, that included a study of the willingness to pay for improved water services and a cost-benefit analysis (CBA) strategy. In four cases studied in sub-Saharan Africa, the project emphasized alternative planning processes and different technical and cost solutions for supplying water and providing wastewater services following IUWM strate- gies. This chapter provides more details on each of these activities. 2.1 Latin America and the Caribbean: Conceptualizing IUWM and its • Current client engagement in the city; Operationalization • The potential scope for replication of the study; • The typology of institutional complexity; The support provided in Latin America and the Caribbean • The size of the city; helped define the conceptual model for integrated urban • Regional representation; and water management and design an operational methodology • Typology of vulnerability and risk. for cities wishing to develop IUWM strategies. The purpose of this exercise was to articulate the concept of IUWM and 2.1.1 Using Case Studies to Highlight IUWM Challenges the linkage between urban water services, urban develop- and Good Practices ment, and river basin considerations, and to ground it in specific case studies. The WPP’s support was formulated under the Blue Water – Green Cities initiative, which helped create a knowledge The first step was to test the preparation of a preliminary base to assist municipal actors in addressing urban water methodology to assess and evaluate IUWM alternatives in challenges by working across sectors. These case studies several urban areas. This framework was develop to serve focused on specific challenges and solutions that reinforced as operational guidance for the strategic implementation of institutional and planning structures aimed at sustaining IUWM, and to be used as an overall roadmap of the main IUWM practices. milestones to be considered when engaging in IUWM for decision-making purposes (World Bank 2012a). The calculation of costs associated with IUWM activities is also an essential element for assessing and planning The selection of cities in LCR had as its aim to facilitate the future IUWM options. Part of the IUWM study for Aracaju, sharing of cross and intra-regional experience on integrated Brazil, and Asuncion, Paraguay, created cost estimates for urban water management. It was based on the following IUWM activities in these two cities (figure 6). These cost criteria (World Bank 2012a): estimates present important intervals of variation due to 8 / WPP CASE PROFILE 1 FIGURE 6. COST ESTIMATE OF IUWM ACTIVITIES IN ARACAJU, BRAZIL, AND ASUNCION, PARAGUAY A. Study of economic and financial viability of the IUWM program B. Institutional strengthening C. Revision of the master plan for land use in RMA D. Resettling program for informal areas E. Program for the reduction of water losses in the supply system and environmental conservation F. Water supply infrastructure G. Sewage collection and treatment H. Urban drainage master plan I. Solid waste system J. Monitoring the results of IUWM programs 0 100 200 300 400 500 600 700 800 Unit costs per m3 (US$) IUWM strategy for Aracaju, Brazil IUWM Strategy for Asuncion, Paraguay Note: See annex 2 for detailed costs for each city. Source: Based on World Bank 2012b; World Bank 2012c. local conditions in each city and would need to be revised In Bogota, Colombia, coordinated action between the during the preparation of the terms of reference for the central and local governments helped address wastewater project. However, they represent an invaluable first take on management problems and legislation. The central govern- the economic and financial viability of IUWM in these cities. ment issued a strategic plan for the environmental manage- ment of the Bogota River that included the construction of 2.1.2 Highlighting Good IUWM Practices in Latin small wastewater treatment plants (WWTPs), environmental America and the Caribbean restoration projects, flood control works, and a program for the management of the city’s wastewater (that upgraded the The case studies undertaken in LCR provided lessons that current Salitre WWTP and a created a new plant). A signed illustrate successful practices to achieve sustainable and agreement between the municipal authority, the regional secure service provision in cities. environmental agency and the public water utility helped to define the roles and responsibilities of each entity based on The city of Sao Paulo, Brazil, enacted innovative laws to national directives (World Bank 2012d). overcome existing silos in urban water management. The aim of the 2007 State Complementary Law was to coordi- Innovative and inclusive multi-sector solutions for urban nate water management among the State government, water management in Tegucigalpa, Honduras, have come the municipalities and the utilities. The law also created from coalitions between government actors and civil society. a State Water Council for water supply and sanitation. A holistic environmental approach has made possible the Cross-municipal coordination efforts improved with the preservation of ecosystems that are essential for the city’s Macro-Metropolis Plan, a long-term plan to provide water water supply sources. This approach relies on a scheme of to the Metropolitan Region of Sao Paulo. Federal growth payments for ecosystem services to finance a number of and development plans (loans and grants) that created activities to conserve land and water quality. The financing is key infrastructures for water supply, housing, and urban raised through water tariffs in (World Bank 2012f). upgrading also helped support the multi-sector and multi- actor initiatives to achieve integrated urban water manage- Additionally, after a drought in 2010, a coalition of economic ment at the state and municipal level (World Bank 2012e). interests and concerned stakeholders created an organization INTEGRATED URBAN WATER MANAGEMENT / 9 to lobby the government to build a new water reservoir. With urban growth, but also to the continuing importance of the help of the World Bank-funded initiative in Tegucigalpa, agricultural and industrial activities, all heavy users of water this organization received just-in-time technical support to and all to a large extent responsible for the increase in extend the scope of its activities beyond traditional water pollution. Third, in the past, water resources have been resources management. The project was also able to support mainly developed in order to accommodate the increasing the finalization of an urban water strategy that included a population and economic activity, with little attention to study and technical analyses of various options to solve the environmental deterioration and recreational uses of water. current water crisis (World Bank 2012f). 2.2.1 Economic Evaluation of Water Services in Baku 2.2 Europe and Central Asia: Planning Calculating the value of water as an economic resource Infrastructure and Valuing Non-use Water and planning water management measures that maximize Services for IUWM Activities in Baku, the creation of value for water services from the point of Azerbaijan view of users is a useful tool for addressing the problem of inadequate water supply (Scandizzo and Abbasov 2012). In Europe and Central Asia, the WPP supported the The economic evaluation of water services in the Baku area development of an IUWM strategy for the city of Baku aimed at integrating the non-use values of water into water in Azerbaijan, and analyzed the economic viability of the resource planning. It also investigated how to use economic strategy based on a detailed study of infrastructure options incentives to increase the quantity and quality of water for supplying water to the city, an analysis of the valuation of consumed to satisfy competing demands, and how much it water by the population, and a CBA of several interventions would cost (Scandizzo and Abbasov 2012). (Scandizzo and Abbasov 2012). A survey of the local community was carried out to ascertain The Greater Baku Area (GBA) extends over 2,528 square their views regarding water use and the services provided kilometers and comprises eleven districts in the cities of by water. The survey was used to place a value on these Baku and Sumgayit, as well as part of the Absheron District. uses, which is important to maximize the impact of specific By the end of 2010, it had an estimated population of water-related investments. The preferences of the respon- 3,019,192 inhabitants and had grown by about half a million dents with respect to alternative water uses and their since 1998 (World Bank 2011). willingness to pay5 for a set of alternatives and improve- ments in the quantity and quality of water supply where Most water sources for GBA are polluted. The Samur River, established following different combinations of activities and a main source of water, is highly polluted with oil. Sulphates services related to the rehabilitation of water supply in GBA often exceed the maximum allowed concentration by 4 to (Scandizzo and Abbasov 2012) (see annex 4). 5 times. The other two important water sources, the Kura and Araz rivers, form the largest transboundary river network 2.2.2 Cost of IUWM Strategies for Baku6 in the South Caucasus. Most of the small streams of the Kura basin are highly polluted by the mining industry over The study of the IUWM options for the city of Baku was the past 50 years in Azerbaijan and Armenia. Although, based on a water infrastructure planning model (WEAP) recently, many of these operations have stopped, the mines built to analyze four scenarios of how supply and demand continue to be sources of pollution. With 11 million people gaps could be closed and come up with alternatives for the living in the catchment area, these rivers are also organically allocation of additional drinking water. The aim of this exercise polluted by the discharge of municipal waste (Scandizzo was to assist planners and decision makers by informing the and Abbasov 2012). selection and sequencing of policy decisions and investment plans based on the results of the model (World Bank 2011). Integrated urban water management in GBA is of special significance for three reasons (World Bank 2011). First, the The identification of potential economic benefits and availability and management of water resources are critical proposed methodologies for their estimation requires a because of natural conditions arising from low precipitation, thorough understanding of all the water-related investments high evaporation rates, and the complex interconnection in the GBA and their linkages. For this particular study, and of different types and origins of water sources. Second, based on a preliminary assessment, the maximization of demographic pressure is especially high due to explosive benefits was derived from estimating benefits that will accrue 5. The uses of water can be associated with the provision of goods (e.g. drinking water, irrigation water) and services (e.g. hydroelectricity generation or recreational uses) to agriculture, industry, and households. The values people assign directly and indirectly to these goods and services are reflected in their willingness to pay (WTP) (Scandizzo and Abbasov 2012). 6. See annex 3 for more detail on the additional costs of IUWM strategies in Baku. 10 / WPP CASE PROFILE 1 from improvements in: i) the provision of water supply and not made, the benefits of the large water supply projects sanitation services, ii) wastewater treatment, iii) efficiencies underway will be negligible. Similarly, unless the sewerage in transmission and distribution of water, iv) water losses in and storm water networks are rehabilitated, the benefits of the network, v) freshwater and coastal water quality, and vi) investments in wastewater treatment and disposal will not property values (Scandizzo and Abbasov 2012). be sustainable (table 4). The development of the water sector in the GBA for the period 2010-2025 was based on four scenarios: (i) 2.3 Sub-Saharan Africa: Planning Innovative business as usual, (ii) 50 percent efficiency improvement, Technology Strategies and Assessing (iii) 50 percent reduction in diversions from Samur, and (iv) Challenges and Opportunities for IUWM a combination of (ii) and (iii). A set of 10 development goals to be achieved by 2025 was selected from the principles The WPP funded an integrated urban water management underlying sector laws, regulations, and government project in sub-Saharan Africa that included a detailed programs, as well as through one-on-one consultations with diagnostic of 31 cities (see annex 5), a study of knowledge, stakeholders (World Bank 2011) (table 3). attitudes, and practices (KAP) of IUWM, and pilot studies. The project also entailed an assessment of the potential According to the findings, the highest priority to improve the opportunities, new technologies, and costs of IUWM in performance of water services in the GBA is the rehabili- Nairobi (Kenya). Mbale and Arua (Uganda), and Douala tation of the water distribution network, which requires (Cameroon). short-term investments. If these short-term investments are TABLE 3. SECTOR DEVELOPMENT GOALS FOR GBA Sector Development Goal Target 2010 2015 2020 2025 1 Population with 24/7 service (%) 60 90 100 100 2 Area with adequate pressure (%) 10 50 100 100 3 Reliable water at tap (%) 20 80 100 100 4 Sewerage coverage (%) 80 95 100 100 5 Pollution in Baku Bay (BOD) High Medium Low None 6 Flooding (Ha) 1000 500 50 10 7 Urban development (Units) 100 1000 5000 8000 8 Environment (Ha degraded) 10000 9000 8000 7000 9 Solid waste (% in landfill) 60 80 100 100 10 Financial sustainability (%) 50 75 100 100 Source: World Bank 2011. TABLE 4. WATER SUPPLY NETWORK REHABILITATION INVESTMENTS IN GBA Component Cost US$ Short Term US$ Comments Short term million million Water Pipes 194 20 Cleaning, service connections Water Pumps 84 36 Replace oldest pumps Reservoirs 30 17 Rehabilitate Sewer Pipes 75 15 Mechanical cleaning Sewer Pumps 30 20 Replace (PS1&2) Drainage 45 20 Mechanical cleaning and cross connections Modernization 25 25 Measuring, modeling, SCADA Total 483 153 Source: World Bank 2011. INTEGRATED URBAN WATER MANAGEMENT / 11 2.3.1 Background Study of 31 Cities in Africa for sub-Saharan cities to describe the capacity of these 31 cities and the challenges they face with respect to Background research on the attitudes, knowledge, and integrated urban water management. The index aggregates practices of water managers and city officials with respect several multidimensional concepts linked with urbanization, to integrated urban water management, as well as in-depth governance and institutions, solid waste, water resources analysis of 31 cities through data analysis, mapping, and and supply, sanitation, and flood management. Each city the construction of an IUWM Index for sub-Saharan Africa was placed in a matrix reflecting the different levels of helped identify the main challenges and opportunities for opportunities and challenges for IUWM, creating a range of IUWM in Africa. situations to anticipate the challenges for developing and implementing IUWM in each city (Jacobsen et al. 2012). The cities included in the study were chosen on the basis of population growth rates, size, and presence of World Bank Visualizing and predicting urban growth, and the size and projects. The study corroborates the notion that urbanization location of future development areas are valuable tools for in sub-Saharan Africa is happening fast. Of the 31 cities, 20 looking at differences in urbanization processes. They can are growing at an annual rate of more than 3 percent and four also help visualize water management spatially, linking it to (Yaoundé, Kumasi, Luanda, and Abuja) have posted annual future urban planning (figure 7). growth rates of more than 5 percent (Jacobsen et al. 2012). According to the study, improvements in access to basic FIGURE 7. MAP OF THE EVOLUTION OF URBAN services are needed in all of the cities. Access to improved SPREAD IN LAGOS, NIGERIA (1986 – 2025) sanitation averaged 53.6 percent in the 31 cities, while access to solid waste disposal averages 51.7 percent and the collection rate ranges can be as low as 20 percent in some cities (Closas et al. forthcoming). Additionally, although a growing population means increased demand for basic water supply, the infrastructure in many sub-Saharan cities is old and non-functioning. The average individual residential water consumption for the 31 cities studied is 65.7 liters per capita per day, but for 13 of those cities the daily residential water consumption is lower than 50 liters, the minimum basic water requirement for personal and domestic uses recognized by the United Nations and the World Health Organization. Following the work done in Latin America and the Caribbean, a composite IUWM Index was constructed Source: Jacobsen et al. 2012. FIGURE 8A. WATER OPERATORS: ISSUES THAT FIGURE 8B. MUNICIPALITIES: ISSUES THAT SHOULD BE SHOULD BE INCLUDED IN FUTURE PLANS (PERCENT) INCLUDED IN FUTURE PLANS (PERCENT) 100 100 80 80 60 60 40 40 20 20 0 0 Drought Flood Rainwater Solid Future Informal Drought Flood Rainwater Solid Future Informal plans plans harvesting waste population settlements plans plans harvesting waste population settlements Agree Disagree Agree Disagree Source: Jacobsen et al. 2012. 12 / WPP CASE PROFILE 1 2.3.2. A Study of IUWM Knowledge, Attitudes, and In the case of Nairobi, it is possible to highlight the Practices (KAP) difference in water supply options between a traditional infrastructure plan (i.e. increase the availability of surface The results of a KAP survey of 13 municipalities and 24 water through reservoirs and by tapping into groundwater water operators in 28 countries reflect their interest in sources) and a flexible and diverse IUWM approach (figure developing and incorporating more aspects of integrated 9). The uncertainty about future water supply, growth, and urban water management into their current and future availability raises the importance of implementing adaptive planning practices (figure 8a and 8b). However, they also and flexible systems to reduce the city’s reliance on only highlighted the need for more investment, technical support one type of water resource. The marginal increase of and assistance, capacity building, and knowledge sharing. proposed IUWM solutions has to be considered holistically, as a unique system. The combination and sequencing of Utilities and municipalities agree on the fact that issues integrated urban water solutions is essential to sustain and such as flood risk and water metering should be included in improve urban water in the medium and long term. future urban management plans. More than 90 percent of the cities and 60 percent of the utilities strongly believe that In Mbale, Uganda (91,800 people), water availability flood risk areas are a priority for planning, and 90 percent has been compromised by competing uses for water in of utilities and 80 percent of the cities strongly agree with upstream catchments. Inadequate sanitation, dysfunctional including water meters as part of their strategic and master pit latrines, and lack of access to sanitation in peri-urban plans (Closas et al. forthcoming). areas and settlements upstream are threatening current surface and underground water reserves (Eckart et al. 2.3.3 IUWM Approaches to Diversify Water Resources in 2012b; Jacobsen et al. 2012). Four Cities In order to sustain the city’s growth and secure water supply, Assessing the gap between future water demand and supply the solutions proposed for Mbale involve the diversification in Nairobi, Kenya (population: 3.4 million) presents significant of water sources. A combination of surface water, ground- challenges because of the uncertainty related to the impact water, and greywater sources has been proposed for new of climate change on the availability of water (Jacobsen et al. urban clusters. The use of decentralized wastewater systems 2012). Population projections and economic growth paint an (DEWATS) and soil-aquifer treatment (SAT) could address unclear future, making it hard to predict what will happen and the problem of public acceptance of greywater reuse through what infrastructure will be needed. infiltration and groundwater recharge. Additionally, solutions at the micro watershed level need to be accompanied with a strong and wider watershed program as well as an early and continuous process of stakeholder participation. FIGURE 9. NEW SUPPLY OF WATER FOR NAIROBI UNDER THE TRADITIONAL INFRASTRUCTURE PARADIGM (LEFT) AND THE IUWM ‘CLUSTER’ APPROACH (RIGHT) Greywater harvesting cluster 8.56% Surface water Groundwater Surface water 15.74% 84.26% 40.96% Stormwater harvesting cluster 11.65% Water demand management 5.02% Leakage management 18.06% Groundwater 15.75% Source: Eckart et al. 2012. INTEGRATED URBAN WATER MANAGEMENT / 13 In Arua, Uganda (59,400 people), unauthorized abstrac- In Douala, Cameroon (2.1 million people), low-lying urban tions and pollution from upstream settlements are a major areas are affected by contamination of a shallow water table threat to the city’s water supply. Additionally, the existing and susceptibility to flooding due to increased runoff and water supply system is overstretched and the water discharge peaks during rainfall. The lack of maintenance treatment plant is strained by river turbidity and the lack of and improvements of urban drainage system has a negative a reliable supply of power. Complicating matters further, impact on the capacity for flood management. Moreover, the the poor management of septic tanks pollutes groundwater lack of improved sanitation causes severe health risks and (Eckart et al. 2012c; Jacobsen et al. 2012). pollutes the shallow groundwater resources. In Arua, IUWM can help promote spatial development The assessment of Douala emphasized the challenge of based on decentralized water treatment services organized incorporating stakeholders early in the process in order to around urban clusters, which can be more cost effective ensure the stability and long-term success of the IUWM than traditional surface water treatment structures on approach. The involvement of end-users and a wide range the Nile River, 40 kilometers away. These clusters for of stakeholders can help address political economy barriers decentralized urban storm water, greywater reuse, and to IUWM solutions. A combination of infrastructure invest- leakage management can guarantee reliability and quality ment to improve sanitation access, drainage, and solid of service. The abstraction of local groundwater resources waste collection to reduce the risk of water-related diseases can become an important source for the city but protecting is recommended. However, strengthening local capacities it from pollution from poor sanitation facilities is essential. at the city/arrondissement level is required so that local The use of DEWATS to treat wastewater and the combina- authorities can participate more fully in project design and tion of treated surface water at the cluster level can provide management (Jacobsen et al. 2012). potable water supply for the city (Jacobsen et al. 2012). 14 / WPP CASE PROFILE 1 CHAPTER 3. IUWM: THE WAY FORWARD A number of valuable global lessons and overall strategies can be extracted from the case studies and projects in the three regions. The operationalization of IUWM and the knowledge that is being generated need to be continued and expanded. This can be done through additional research, capacity building, and the practical application of the IUWM approach to more cases.. 3.1 Lessons for IUWM at a Global Scale been laid out, slowing down the process of adaptation towards a more integrated urban water management framework (table The WPP-funded activities in integrated urban water manage- 5). Additionally, the lack of funding and the size of some cities ment have produced relevant insights on the challenges and sometimes does not allow for economies of scale. Poor data and opportunities for the development of IUWM as a feasible and information on urban services can also present a challenge for viable practice to sustain and secure urban water (table 5). the study of the IUWM potential in cities. The need to draw lessons from already established research and practice is essential in order to continue developing the Cities are important economic engines and financial approach and shaping it to the different institutional, political, centers, attracting people and economic activity, and economic, financial, social, and environmental contexts of the resulting in urban sprawl, thus opening a larger window of developing countries. opportunity to implement IUWM approaches. They can also concentrate political and economic institutions, which can 3.1.1 Varying Global Challenges and be used to leverage funds and capital and also disseminate Opportunities for IUWM good practices based on their successful model. An IUWM approach that from the beginning focuses on the In an enabling institutional and organizational environment, integration of water supply, sanitation, and drainage with urban the main opportunities for developing IUWM approaches planning, and takes into account water resources as well as lie in newly-built or planned areas where land may still be IUWM principles such as “water fit-for-purpose�, may provide an available and where integrated urban water management opportunity to avoid infrastructure lock-in in expensive traditional principles can be followed. Rapidly expanding cities also solutions. However, the development of IUWM practices have the potential for on-demand construction, adopting can be challenged if rigid institutional frameworks, traditional technological innovations and new planning schemes. This technologies, and non-integrated urban plans have already makes them more flexible and adaptive to new urban forms. TABLE 5. CHALLENGES AND OPPORTUNITIES AFFECTING IUWM IN URBAN AREAS Challenges Opportunities Infrastructure (i) Old infrastructure (ii) Possible (i) IUWM approach in to-be-built areas, where land is available (ii) planning of traditional technologies Expanding built areas can incorporate IUWM principles (iii) Flexibility already laid out of urban design and high potential for technology innovation Investment (i) Lack of funding (ii) City size does (i) Urban growth attracting increasing economies of scale and not allow economies of scale economic growth Institutions (i) Mature and complex institutions (i) Concentration of political and economic power can attract (ii) Lack of institutional flexibility (iii) funding and disseminate good practices Multi-jurisdiction of metropolitan areas Source: Authors. INTEGRATED URBAN WATER MANAGEMENT / 15 3.1.2 Major Implementation Challenges adaptive solutions to urban challenges, city organizations and institutions in charge of urban and water management need A set of solutions for the sustainable and secure management to find ways to accommodate these precepts and adapt their of water and other services in cities can be put together based structures to the requirements of IUWM. on the lessons learned (table 6). However, several challenges and knowledge gaps can affect the future development of Stakeholder knowledge and awareness are also necessary. IUWM. These include economic and investment challenges, However, aligning institutional goals and strategies within institutional challenges, and information gaps. complex systems of local and national governance is essential to ensure the success of IUWM approaches. Economic and Investment Challenges Dealing with different organizational structures, various The economic evaluation and cost-benefit analysis of IUWM jurisdictional levels within metropolitan areas, fragmented solutions will need to be extended but also tailored to fit institutions, and in some cases, dissonant interests will be a each individual case. Sound economic models and analysis determining factor for the development of IUWM. are required to test the viability of IUWM approaches compared to traditional technologies. It will also be Information Gaps necessary to secure funds from the government, especially Climate change will affect river hydrology in the future and in cases where local governments lack the funds or capacity little information is available about future climate at the city to leverage capital investments. level. River basins are a relevant intermediary level from which to provide information about basin hydrology and how Institutional Challenges urban water resources will be affected by climate change. Developing the institutions for integrated urban water Modeling river basin hydrology in Africa, for instance, is management is one, if not the, limiting factor for its proper challenging due to lack of data and disparities of modeled implementation. The same way the IUWM approach provides results (Jacobsen et al. 2012). TABLE 6. OVERALL STRATEGIES TO ACHIEVE IUWM Principles Tools Benefits Sustainable urban (i) Balance densification and impervious areas; (ii) Quality of life; environmental protection; development planning of green spaces linked to urban water sustainability of urban water services management; (iii) restrictions and economic incentives to protect of municipal water basin; (iv) incentives for the construction of green buildings Preservation of (i) Regulate and enforce land use in the water basin; (ii) Conservation of water quality; reduction of water supply use of command and control mechanisms, economic health risks; reduction of water insecurity; sources incentives, payment for environmental services; (iii) better allocation of water resources among increase diversity of water sources within city and users catchment (e.g. rainwater, groundwater, wastewater reuse) Conservation and (i) Metering water use; (ii) use of a sustainable tariff Eliminate the need of new water sources; efficiency of water structure; (iii) reduction of financial and physical losses; reduction of energy use; reduction of use by controlling (iv) incentives for new appliances and equipment to sewage volume both for collection and demand reduce demand; (v) incentives for water reuse; (vi) treatment; reduction of the risk of water education for water use shortages Improvement of (i) Incentives for household connections; (ii) incentives Better environmental conditions; sanitation services for industrial and agriculture reuse; (iii) reuse in urban restoration of rivers and lakes; reduction of irrigation of green spaces; (v) decentralized wastewater the risk of groundwater contamination treatment systems Sustainable storm (i) On-site measures of infiltration and green building Flood frequency reduction; water quality water management practices; (ii) storage and reduction of runoff; (iii) improvement; erosion control; reduction of good practices to improve water quality; (iv) rules and damages and hazards practices integrated to urban land use and environment 16 / WPP CASE PROFILE 1 TABLE 6. OVERALL STRATEGIES TO ACHIEVE IUWM (CONT’D) Principles Tools Benefits Sustainable (i) Implementation of recycling practices; (ii) Reduction of disposal sites; reduction of solid waste and implementation of charging for the service by volume costs in solid waste collection and disposal; sediment control or weight in order to decrease waste; (iii) control of environmental protection and improved management civil construction waste; (iv) control of sediments in water quality; reduction of costs in construction sites; (v) disincentives for the use of plastic drainage maintenance; reduction of flood bags and plastic containers risks; reduction of health risks Institutional (i) Integration of services in one institution; (ii) Improvement of services; adoption of practices development of master plans (urban, water, sanitation); cost-efficient technologies; reduction of (iii) revision of building codes; (iv) stimulate cost recovery investment needs; reduction of operational practices; (v) enforceable laws and regulations; (vi) and maintenance costs; environmental environmental certification; (vii) public participation; (viii) protection; improvement in quality of life capacity building Source: Based on World Bank 2010. At the city level, the lack of sound data on the state of While the World Bank can provide capital for the implemen- infrastructure, access to services or an accurate population tation of the IUWM approach, it can only do so if the client census can affect the development of IUWM. In an urban countries prioritize IUWM and request support to address context, policymaking, regulation, and the provision of water urban water challenges. Additional studies showing the and sanitation services are interconnected processes that, economic benefits of IUWM, as well as the implementation to be carried out successfully, must bring together a number of pilot projects to showcase results could demonstrate of actors. This entails not only enhancing communication to governments that these investments are more efficient between sectors (including energy production, agriculture, and more sustainable than traditional approaches. Learning industry, water supply and sanitation, urban planning, and from best practices and experiences around the globe is environmental protection), but also between different actors. also crucial in scaling up efforts. Addressing the economic, institutional, and knowledge challenges in an interlinked way Decision-makers need good and reliable information and can maintain and increase the momentum for IUWM. data in order to plan and manage cities and urban services. Project feasibility studies, diagnosis, and assessment also rely 3.2.1 Addressing Complex Challenges on quality data. This information is essential for good manage- ment, but there are some gaps as well as a lack of agreed The large extent of natural and social challenges and standards, which make analysis difficult at the level of the city. different institutional and political settings affecting cities represents an opportunity for the World Bank to take a comprehensive and gradual approach to develop structural 3.2 The Role of the World Bank in and non-structural interventions (World Bank 2010). Supporting IUWM The conceptual framework and guidelines for operationaliza- The survey of water managers and city planners showed tion as well as the case studies in many cities have already that key stakeholders perceive IUWM as a relevant issue increased the interest in IUWM in several countries. For but that they need technical expertise, capacity building, and example, in Nairobi the government is considering using funding (Jacobsen et al. 2012). part of a World Bank loan to implement IUWM principles in pilot projects. In Sao Paulo, a $234 million integrated water The World Bank and its Water Partnership Program (WPP) management project started in 2010 aims at protecting and can be instrumental in the implementation and scaling up maintaining the quality and reliability of metropolitan water efforts. Through the three regional activities, the WPP has resources, improving the quality of life of poor communi- laid the foundation for mainstreaming IUWM in World Bank ties in urban river basins, and strengthening institutional projects and programs. capacity, management and coordination in water resources, pollution, land-use policy, and basic service provision. INTEGRATED URBAN WATER MANAGEMENT / 17 FIGURE 10. SUSTAINING KNOWLEDGE GENERATION also help decision-makers and planners to choose sustain- FOR IUWM able and viable infrastructure options for their cities. The need to develop guidelines on how to approach Operations institutional and policy processes to revise current urban plans and make them more adaptive will also require more research. The fact that there is no one unique way to achieve IUWM implies that each case study and project will be different and that technology and policy solutions will have to be tailored to fit each city. IUWM Reaching out to other regions and incorporating IUWM into KNOWLEDGE more projects will require research on the development of fit-for-purpose technologies that is specifically designed and conducted for particular cases. It will also be necessary Data Research to further investigate the adaptation of current traditional technology systems in expanding cities, and the costs of retrofitting existing water supply systems to innovative IUWM approaches. Source: Authors. The World Bank can complement its direct engagement through facilitation, training, and strong technical assistance The implementation of IUWM projects in selected cities to ensure that cities do not focus only on traditional should be given priority as a means of gathering data and infrastructure needs. In some other instances, World Bank establishing a pool of case studies to showcase IUWM. involvement can focus on specific technical assistance to Sustaining projects, research, and data collection will also make city planners aware of international best practices ensure that IUWM knowledge is used in future projects and provide specific support in selected areas where (figure 10). weaknesses are apparent (World Bank 2010). 3.3.2 Sustaining IUWM Practices Internationally The further development of IUWM can also be ensured by bringing together and maintaining a group of IUWM The coordination and implementation of learning alliances experts and practitioners to provide support and technical for IUWM with existing programs within international or know-how to countries wishing to incorporate integrated regional organizations will support the development of urban water management into the design of their projects. training capacities and research, and ensure that IUWM Also essential to increasing and maintain awareness about reaches the experts in charge of planning and provision of integrated urban water management is the dissemination of urban services. By collaborating with established interna- information about IUWM projects sponsored by the Water tional programs, such as the IWA Cities of the Future Partnership Program. Program or ICLEI, the World Bank can help sustain and expand existing IUWM practices across the world. Strengthening Managerial Functions The rationale for World Bank involvement in future IUWM Promoting and encouraging the exchange of knowledge projects arises from the complexity of the challenges affecting about IUWM best practices will help disseminate informa- growing cities. Tackling these challenges will require flexible tion about the benefits and potential of IUWM among city and interdisciplinary teams, strengthening financial commit- leaders, planners, and managers. The role of the World ments for future projects, and extending the scope of projects Bank is to document good practices and support specific to incorporate IUWM approaches. Additionally, new project client requests for investments or technical assistance guidelines and terms of reference will have to incorporate the (World Bank 2010). evaluation and assessment of IUWM approaches 3.3.3 Operationalizing IUWM: Learning by Doing Providing on-site IUWM training for city and water managers at the national and local level can also strengthen the Fostering Knowledge and Results development of integrated management functions and future Fostering research on different IUWM technology options technical assistance for clients. and their economic costs will support project feasibility. Developing sound economic models to analyze the cost of The World Bank’s position as a leading IUWM practitioner IUWM alternatives compared to traditional technologies will can be solidified in the regions by sponsoring more water 18 / WPP CASE PROFILE 1 resources and supply projects that focus on IUWM and practices and solving conflicts over riparian uses, even are carried out in cooperation with projects focused on the in cases where political control has been turned over to urban sector. Working together with urban planners and regional or local governments. Ministries and local agencies establishing common frameworks for action in order to can work together to improve the success and sustainability break internal and external silos will be essential to promote of projects by further integrating legislative frameworks and urban innovation and to move from the traditional infrastruc- river basin plans to make them more adaptive and able to ture paradigm to a more inclusive and adaptive one. incorporate IUWM practices. 3.3.4 Building Capacities and Improving 3.3.5 Sustainable Cities and Green Growth Strategic Alignment To meet the urgent development needs of the world’s poor, The work carried out in sub-Saharan Africa shows some growth that is environmentally, economically, and socially of the benefits of integrating stakeholder participation sustainable as well as inclusive is vital. Cities can be one from the beginning. In Nairobi, for example, WPP activities of the most important avenues for growth by providing resulted in an increased interest in exploring alternative jobs and attracting talent and investments to a geographic water resources for the city, in revising the building code to area. They can also spur productivity growth by opening up enable rainwater harvesting, and in considering greywater economic opportunities, markets, communication, and the and wastewater reuse (Jacobsen et al. 2012). However, supply of capital and skills (World Bank 2012g). the experience from LCR reveals that at least 18 months are needed for stakeholders to coalesce around a common The challenges facing increasingly expanding and dense strategy for IUWM. urban areas can come from a lack of vision and planning. Integrating the design and infrastructure of future built-up Stakeholder participation and support from local authori- areas and the access to basic services with sustainable ties and national governments are essential. The projects policy and management plans will reduce uncontrolled carried out in sub-Saharan Africa reaffirm the importance of urban growth and its negative environmental and social stakeholder participation to the success of IUWM initiatives consequences. (Jacobsen et al. 2012). The move towards an efficient, clean, resilient, and equitable It is also important that local, regional, and national institu- model of urban growth will ensure the equitable provision of tions support the development of IUWM projects in a services in the future, and also result in the sustainable and coordinated and strategic fashion. For instance, the central efficient use of natural resources. The World Bank’s green government needs to be involved in integrating planning growth vision fosters just this kind of development. INTEGRATED URBAN WATER MANAGEMENT / 19 References Bahri, A. 2012. Integrated Urban Water Management, TEC Scandizzo, P.L., and R. Abbasov. 2012. The value of water in Background Papers No.16. CITY: Global Water Partnership. the Greater Baku Area: an integrated water management study, Internal report, The World Bank. Bertinelli, L., and E. Strobl. 2007. Urbanisation, Urban Concentration and Economic Development, Urban Studies, UN-HABITAT 2008. State of the World’s Cities 2010/2011: 44(13), 2499-2510. Bridging the Urban Divide. London: UN-HABITAT, Earthscan. Closas, A., M. Naughton, and M. Jacobsen (forthcoming). UNDESA 2012. World Urbanisation Prospects: The 2011 Diagnostics of Urban Water Management in 31 Cities in Revision. Accessed October 2012. Africa. Washington, DC: The World Bank. WPP 2012. Strengthen, Secure, Sustain. 2011 Annual Closas, A., D. Shemie, and M. Jacobsen (forthcoming). Report. Water Partnership Program. Washington, DC: The Knowledge, Attitudes, and Practices Survey of Urban Water World Bank. Management in Africa. Washington, DC: The World Bank. World Bank (a) (year unknown). IUWM Operational Dominguez-Torres, C. 2011. “Urban Access to Water Supply Handbook, Internal report. Washington, DC. and Sanitation in Sub-Saharan Africa�. Africa’s Urban Transition: Implications for Water Management. Background World Bank (b) (year unknown). IUWM Conceptual paper. Washington, DC: The World Bank Document, Internal report. Washington, DC. Eckart, J., K. Ghebremichael, K. Khatri, S. Tsegaye, and K. World Bank. 2009. World Development Report 2009. Vairavamoorthy. 2012. Integrated Urban Water Management for Reshaping Economic Geography. Washington, DC. Nairobi. Report prepared for the World Bank by the Patel School of Global Sustainability, University of South Florida, Tampa. World Bank 2010. Integrated Urban Water Resources Management Initiative, Latin America and the Caribbean Eckart, J., K. Ghebremichael, K. Khatri, S. Tsegaye, and Case Studies, Draft June 2010, Internal Report. K. Vairavamoorthy. 2012b. Integrated Urban Water Washington, DC. Management for Mbale. Report prepared for the World Bank by the Patel School of Global Sustainability, University World Bank 2011. Integrated Urban Water Study: Baku, of South Florida, Tampa. Azerbaijan. Internal Report. Washington, DC. Eckart, J., K. Ghebremichael, K. Khatri, S. Tsegaye, and K. World Bank 2012a. Integrated Urban Water Management: a Vairavamoorthy. 2012c. Integrated Urban Water Management for summary note, Blue Water – Green Cities. Washington, DC. Arua. Report prepared for the World Bank by the Patel School of Global Sustainability, University of South Florida, Tampa. World Bank 2012b. Integrated Urban Water Management Case Study: Aracaju, Blue Water – Green Cities. Washington, DC. Henderson, V. 2003. The Urbanization Process and Economic Growth: The So-What Question, Journal of Economic World Bank 2012c. Integrated Urban Water Management Growth, 8, 47-71. Case Study: Asunción, Blue Water – Green Cities, The World Bank. Jacobsen, M., M. Webster, and K. Vairavamoorthy (eds.) 2012. The Future of Water in African Cities: Why Waste Water? World Bank 2012d. Integrated Urban Water Management Case Washington, DC: The World Bank. Study: Bogota, Blue Water Green Cities. Washington, DC. Kessides, C. 2005. The Urban Transition in Sub-Saharan World Bank 2012e. Integrated Urban Water Management Africa: Implications for Economic Growth and Poverty Case Study: Sao Paulo, Blue Water Green Cities, The Reduction, Working Paper Series No.97, Africa Region. World Bank. Washington, DC: The World Bank. World Bank 2012f. Integrated Urban Water Management Porto, M., and C. Tucci. 2010. Integrated Urban Water Case Study: Tegucigalpa, Blue Water – Green Cities. Resources Management Initiative: Latin America and the Washington, DC. Caribbean Case Studies. Unpublished Manuscript. World Bank 2012g. Inclusive Green Growth: the Pathway to Sustainable Development. Washington, DC. 20 / WPP CASE PROFILE 1 ANNEX 1 - DETAILED PHASES FOR THE OPERATIONALIZATION OF IUWM The figures below show the different phases of the process of putting integrated urban water management into operation. Each phase is divided into 4 sub-phases and the different steps and main activities for each sub-phase are listed (Source World Bank (a) and World Bank 2012a). PHASE 1. ENGAGEMENT • Identify stakeholders and foster commitment • Establish adequate participatory mechanisms Objectives • Present IUWM and ascertain interest of key • Provide initial training on IUWM • Create a Stakeholder Engagement Plan Activities • Conduct a first workshop to interact with stakeholders, present the scope and limit of the Bank’s support and define the process for following phases • Traditional Planning : Capacity Assessment, Needs Assessment Tools • Stakeholder Engagement: Stakeholder Assessment and Analysis, Stakeholder Engagement Plan • Hybrid: Shared Vision Planning • Stakeholders identified and committed Outcomes & Outputs • Plan of Activities drafted and first assessment organized • Capacity Building Plan designed Source: Based on World Bank (a) and World Bank 2012a. The aim of the ENGAGEMENT phase is to identify the govern- The Africa IUWM study by Jacobsen et al. (2012) highlights ment levels and main stakeholders that will have to be involved the importance of including stakeholders in the initial in the process of developing an IUWM strategy. This engage- steps of integrated urban water management, as well as ment phase seeks the commitment of the entire community for the importance of providing a forum to assess alternative the preparation of the plan as well as their involvement during solutions. The results of a survey of water managers and the implementation stages of the IUWM strategy. city officials on their knowledge, attitudes, and practices (KAP survey) with respect to IUWM show that key local stakeholders perceive it as relevant, and that urban water management plans need to include a wider range of issues. INTEGRATED URBAN WATER MANAGEMENT / 21 The ASSESSMENT phase is designed to identify problems The PARTICIPATORY PLANNING phase focuses on the affecting the delivery of urban services at the local level. evaluation and validation of IUWM strategies formulated Based on qualitative and quantitative assessments of the during the assessment phase. This will be take place situation, the output of this phase will be a final diagnostic through a series of participative meetings aimed at strength- of the challenges, capacities, and strategies to achieve ening institutional coordination and participation. The integrated urban water management. meetings will also serve to discuss options and foster the commitment of participating stakeholders. The output of this phase is a reviewed strategy, which will include investment priorities and potential funding sources. PHASE 2. ASSESSMENT • Develop a common understanding of the challenges linked with water in the Metropolitan Area Objectives • Identify and prioritize the issues or main urban challenges • Evaluate the consequences of inaction • Identify existing studies and data • Conduct qualititave and quantitative assessment Activities • Draft and validate diagnostic study • Evaluate the economic cost of inaction • Continue providing training to stakeholders as needed • Traditional Planning :Institutional and Regulatory Assessment, Environmental Assessment, Economic and Financial Assessment, Social Impact Assessment • Technical Modelling studies: Water balance, Water pollution, Land use, Drainage, Characterization Tools of the Urban Area • Qualitative Matrices of Issues • Indicators for Diagnostic and Assessment • Stakeholder Engagement: Participatory Diagnostic • Main issues and strategies identified Outcomes & Outputs • Final Diagnostic drafted and validated Source: Based on World Bank (a) and World Bank 2012a. PHASE 3. PARTICIPATORY PLANNING • Evaluate possible strategies within the institutional, social, economic and technical settings Objectives • Develop a consensus around short-, middle- and long-term activities in order to improve IUWM • Prioritize the identified issues • Set objectives, goals and actions Activities • Analyze and compare scenarios • Draft and validate a Strategic Action Plan • Stakeholder Engagement: Preliminary Strategic Plan of Action, Strategic Report, Strategic urban Tools Water Plan • Participatory Strategic Planning • Strategic Action Plan finalized and validated Outcomes & Outputs • All stakeholders informed about IUWM agreed strategy • Potential funding sources identified for short-term activites Source: Based on World Bank (a) and World Bank 2012a. 22 / WPP CASE PROFILE 1 PHASE 4. IMPLEMENTATION AND MONITORING • Successfully implement the projects defined in the IUWM Strategic Action Plan Objectives • Monitor and review implementation progress and adjust as needed • Implement the projects according to the strategic plan • Design the monitoring system in a participatory manner Activities • Monitor results and develop adjustment mechanisms • Document monitoring of Strategic Action Plan • Perform yearly evaluation of the urban development and achieved goals • Urban water impacts and goals Indicators Tools • Results framework Outcomes & Outputs • IUWM implemented and monitored. Source: Based on World Bank (a) and World Bank 2012a. The IUWM study of Baku, Azerbaijan, contains relevant Finally, the IUWM strategy and action plan are implemented information and a detailed analysis of the different values attrib- during the IMPLEMENTATION AND MONITORING phase. uted to water by the population, which revealed the different Throughout the development of this phase it is crucial to productivity and values of water. This study investigated how monitor the results and to undertake a periodic review of the Baku’s residents deal with the problem of inadequate water strategies with respect to main institutional changes, and supply by choosing a variety of arrangements to increase the economic and technical constraints. quantity and quality of the water consumed. INTEGRATED URBAN WATER MANAGEMENT / 23 ANNEX 2 - COMPARATIVE COSTS OF IUWM STRATEGIES FOR ARACAJU, BRAZIL, AND ASUNCION, PARAGUAY The table below shows a comparison of the cost of implementing IUWM strategies in the cities of Aracaju, Brazil, and Asuncion, Paraguay, based on the calculations for the invest- ment on each of the phases of the Action Plan Activities IUWM Strategy for IUWM Strategy Aracaju, Brazil for Asuncion, Paraguay Cost Subtotal Cost Subtotal (‘000 (‘000 (‘000 (‘000 US$)* US$)* US$) US$) A. Study of economic and financial viability of the IUWM Program 161 100 A.1 –Economic and financial viability study 161 100 B. Institutional strengthening 697 1,150 B.1 – Proposal to improve institutional structure 64 140 B.2 – Institutional structure 43 90 B.3 – Human resources training 161 120 B.4 – Information system for urban water 429 800 C. Revision of the Master plan for land use in RMA 161 450 C.1 – Master Plan for land use in RMA 107 250 C.2 – Municipal strengthening and modernization of the municipal structures of 54 200 land use management D. Resettling program for informal areas 10,879 30,300 D.1 – Evaluation of informal settlements in sensitive areas 161 300 D.2 – Elimination of informal settlements in sensitive areas 10,718 30,000 E. Program for the reduction of water losses in the water supply system 1,125 20,600 and environmental conservation E.1 – Program for the reduction of physical water losses in the water supply system 536 20,000 E.2 – Program for water conservation 268 300 E.3 – Program for conservation of water sources 322 300 F. Water Supply Infrastructure 200,500 F.1 – Assessment of current plans 500 F.2 – Water supply infrastructure and water treatment plant 200,000 24 / WPP CASE PROFILE 1 Activities IUWM Strategy for IUWM Strategy Aracaju, Brazil for Asuncion, Paraguay Cost Subtotal Cost Subtotal (‘000 (‘000 (‘000 (‘000 US$)* US$)* US$) US$) G. Sewage collection and treatment 137,190 502,000 G.1. – Revision of Sewage Plan of RMA 2,144 2,000 G.2 – Extension of the sewage collection system and treatment for RMA 135,047 500,000 H. Urban drainage master plan 66,184 155,000 H.1 – Urban drainage plan: non-structural measures and cadaster 268 2,000 H.2 – Urban drainage plan: structural measures 1,608 3,000 H.3 – Development of institutional, structural and non-structural measures for 64,308 150,000 urban drainage control I. Solid waste system 6,056 29,000 I.1 – Solid waste plan 536 1,500 I.2 – Development of solid waste final disposal system 3,751 20,000 I.3 – Improvement of the collection system for normal and special waste 268 1,000 I.4 – Development of a solid waste recycling system 429 1,500 I.5 – Improvement of affected areas by poor solid waste disposal 1,072 5,000 J. Monitoring of results of IUWM programs 1,125 3,200 J.1 – Development of indicators 54 200 J.2 – Monitoring of indicators 536 1,500 J.3 – Revision of strategy 536 1,500 TOTAL 223,577 787,455 * Note: Costs in US$ for Aracaju are based on average mid-year exchange rate US$/Reais based on the arithmetic average of the bid and offer rates published in the daily bulletins, from January to June 2012. Source: Brazil Central Bank. Source: Based on World Bank 2012a; World Bank 2012b. INTEGRATED URBAN WATER MANAGEMENT / 25 ANNEX 3 - CAPITAL COSTS OF IUWM IN BAKU, AZERBAIJAN The table below shows the capital costs of IUWM in US$, estimated on the basis of investment outlays and non-routine maintenance/replacement costs. These data were estimated from project files and maintenance statistics available at the World Bank’s Azerbaijan office. Sector Year 1 Year 2 Year 3 Wastewater Management (WW) Demolitions and Excavations 16,622,253.98 9,812,532.37 34,957,146.45 Item for Lift stations 3,311,729.61 1,962,506.45 6,991,429.34 Cabin, electric and telephone conduits and associated services 2,416,405.70 1,401,790.34 4,993,878.06 Domestic water supply and sewerage networks and associated 4,743,763.56 2,803,580.68 9,987,756.13 services Equipment Costs 10,098,141.64 5,607,161.35 19,975,512.26 Other Costs 11,390,242.95 6,448,235.58 21,699,725.19 Sub-total WW 48,582,537.58 28,035,806.64 98,605,447.43 Potable water Demolitions and Excavations 28,728,275.71 17,660,220.27 60,241,865.55 Item for Lift stations 5,745,655.12 4,549,735.16 12,129,716.37 Cabin, electric and telephone conduits and associated services 2,872,827.56 1,702,416.28 6,064,858.25 Domestic water supply and sewerage networks and associated 2,872,827.56 2,150,340.29 6,064,858.25 services Equipment Costs 11,491,310.23 6,809,665.39 24,259,432.87 Other Costs 6,194,217.60 3,404,832.69 12,129,716.37 Sub-total Potable Water 57,905,113.89 36,277,210.21 120,890,447.65 Environmental program Excavation or dredging 9,752,587.18 5,779,310.92 20,588,795.16 Dig and dump 7,314,440.42 4,334,483.19 15,441,596.34 Pump and treatment 7,314,440.42 4,334,483.19 15,441,596.34 Sub-total Environmental program 24,381,468.02 14,448,277.31 51,471,987.97 TOTAL 130,869,119.49 78,761,294.16 270,967,882.93 Note: Currency exchange AZN/US$ calculated as the mid-year daily average currency exchange rate for January-June 2012. 1US$ = 0.7861 AZN Source: Scandizzo and Abbasov 2012. 26 / WPP CASE PROFILE 1 ANNEX 4 - RESULTS OF THE STUDY OF NON-USE VALUES OF WATER IN BAKU, AZERBAIJAN A survey was carried out in Baku as part of the WPP-funded find out how respondents form their expectations on the activities to improve the quality and reliability of water use of water and whether those expectations satisfy broad supply, establish effective sanitation services, and expand hypotheses of economic rationality (coordination between the range of environmental benefits for coastal and inland ends and means, consistency, pursuit of individual and water. The survey campaign lasted about six weeks and a communal benefits, awareness of alternative options, search total of 2,155 questionnaires were completed. for information and knowledge). The interviewees, who comprised a cross section of water The results of the survey show an average willingness to pay users, were asked if they would agree to an increase in their (WTP) an increased tariff for an immediate improvement monthly water bill to contribute to investments to-wards in water supply services (24-hour supply) of about US$19 improving water supply, wastewater treatment, and environ- (table 1). The average WTP drops to $11.60 for a long-term mental conservation. 10-year investment with a 20 percent probability of failure. This WTP can be interpreted as the risk premium that users The options for new infrastructure provided in the survey would be willing to pay to avoid further service deterioration. ranged from a traditional water supply network to a fully The willingness to pay for service improvements extends to integrated multifunctional model (water management and wastewater disposal, both in the immediate action scenario waterfront use). Survey questions were also designed to and that including uncertainty and delayed investments. TABLE 1. SURVEY RESULTS FOR THE WTP FOR IMPROVED WATER SERVICES IN BAKU, AZERBAIJAN (IN US$ PER MONTH) Average Variance Mode Std. Dv. Willingness to pay for 24/7 water availability with adequate pressure and high 19.24 67.17 12.72 9.24 quality Willingness to pay for 24/7 water availability with adequate pressure and high 11.60 9.98 10.18 3.55 quality, but only after 10 years with an 80% probability of success (and 20% probability of failure) Willingness to pay for better wastewater disposal services 8.13 35.19 0.00 6.69 Willingness to pay for better wastewater disposal services, but only after 10 years 4.81 36.27 0.00 6.79 with a 50% probability of success (and 50% probability of failure) Willingness to pay for better wastewater disposal services, but only after 10 years 6.62 211.72 0.00 16.41 with an 80% probability of success (and 20% probability of failure) Willingness to pay via a monthly credit scheme 2.08 0.30 2.54 1.63 Note: Std. Dv. = Standard Deviation. Currency exchange AZN/US$ calculated as the mid-year daily average currency exchange rate for January-June 2012. 1US$ = 0.7861 AZN Source: Based on Scandizzo and Abbasov 2012. INTEGRATED URBAN WATER MANAGEMENT / 27 ANNEX 5 - LIST OF 31 CITIES IN SUB-SAHARAN AFRICA The following table presents the list of 31 cities studied in the diagnostic of challenges and opportunities for IUWM in sub-Saharan Africa. The cities were selected based on whether they fulfilled some or all of the following criteria: (1) population growth rate (more than 3 percent annual growth rate); (2) number of inhabitants; and (3) World Bank presence. No Country City Population Population growth Selection (‘000 inhabitants) rate 1995-2000 criteria* 1 Angola Luanda 4,775 5.87 P,G 2 Benin Cotonou 841 2.82 WB 3 Burkina Faso Ouagadougou 1,324 7.02 WB 4 Cameroon Douala 2,108 4.56 P,G,WB 5 Cameroon Yaoundé 1,787 5.45 G,WB 6 Kinshasa 9,052 4.18 P,G,WB 7 Democratic Republic of Congo Lubumbashi 1,544 4.06 G,WB 8 Mbuji-Mayi 1,489 4.47 G,WB 9 Rep. of Congo Brazzaville 1,505 4.19 G,WB 10 Côte d’Ivoire Abidjan 4,175 3.29 P,G 11 Ethiopia Addis Ababa 3,453 2.06 P,WB 12 Accra 2,332 3.27 P,G,WB Ghana 13 Kumasi 1,826 5.04 G 14 Guinea Conakry 1,645 3.30 G,WB 15 Kenya Nairobi 3,363 4.08 P,G,WB 16 Blantyre 733 N/A WB Malawi 17 Lilongwe 866 4.75 G,WB 18 Mozambique Maputo 1,655 1.37 P,WB 19 Lagos 10,572 3.93 P,G,WB 20 Abuja 1,994 8.93 P,G Nigeria 21 Ibadan 2,835 2.39 P 22 Kano 3,393 2.23 P 23 Senegal Dakar 2,856 3.66 P,G 24 Johannesburg 3,618 2.38 P 25 South Africa Cape Town 3,357 2.52 P 26 Durban 2,839 2.33 P 27 Sudan Al-Khartoum 5,185 2.53 P 28 Tanzania Dar es Salaam 2,498 4.77 P,G,WB 29 Uganda Kampala 1,597 3.72 G 30 Zambia Lusaka 1,421 4.30 G,WB 31 Zimbabwe Harare 1,663 1.30 WB Note: Selection criteria: P=population size; G=growth rate; WB=World Bank presence. Source: Jacobsen et al. 2012. 28 / WPP CASE PROFILE 1 ANNEX 6 - LIST OF REPORTS FROM WPP- FUNDED REGIONAL IUWM ACTIVITIES The reports listed below have been produced as a result of the IUWM activity in the Latin America and Caribbean region. More information on the Blue Water – Green Cities initia- tive can be found on the World Bank website (http://www.worldbank.org/laciuwm). • World Bank 2012. Integrated Urban Water Management • World Bank 2012. Integrated Urban Water Management Case Study: Aracaju, Blue Water – Green Cities, The Case Study: Tegucigalpa, Blue Water – Green Cities, The World Bank. World Bank • World Bank 2012. Integrated Urban Water Management • World Bank 2012. Integrated Urban Water Management: Case Study: Asunción, Blue Water – Green Cities, The a summary note, Blue Water – Green Cities, The World World Bank. Bank. • World Bank 2012. Integrated Urban Water Management • World Bank 2012. Overview of the LAC Integrated Urban Case Study: Bogota, Blue Water Green Cities, The World Water Management Initiative - Phase 1: 2009-2012, Blue Bank. Water Green Cities, The World Bank • World Bank 2012. Integrated Urban Water Management Case Study: Sao Paulo, Blue Water Green Cities, The World Bank. The reports listed below have been produced as a result of the IUWM activity in the Africa region. More information on this work can be found on the World Bank Water website (http://water.worldbank.org/AfricaIUWM). • Bloch, R. 2012. Integrating Urban Planning and Wa- • Eckart, J., K. Ghebremichael, K. Khatri, S. Tsegaye, and K. ter Management in Sub-Saharan Africa. Report No. Vairavamoorthy. 2012. Integrated Urban Water Manage- J40252692. Birmingham: GHK Consultants. ment for Nairobi. Report prepared for the World Bank by • Closas, A., Naughton, M., and M. Jacobsen (forthcoming). Patel School of Global Sustainability, University of South Diagnostics of Urban Water Management in 31 Cities in Florida, Tampa. Africa, World Bank. • Eckart, J., K. Ghebremichael, K. Khatri, S. Tsegaye, and K. • Closas, A., Shemie, D., and M. Jacobsen (forthcoming). Vairavamoorthy. 2012b. Integrated Urban Water Manage- Knowledge, Attitudes, and Practices Survey of Urban ment for Mbale. Report prepared for the World Bank by Water Management in Africa, World Bank. Patel School of Global Sustainability, University of South • Dominguez-Torres, C. 2011. “Urban Access to Water Florida, Tampa. Supply and Sanitation in Sub-Saharan Africa�. Africa’s • Eckart, J., K. Ghebremichael, K. Khatri, S. Tsegaye, and K. Urban Transition: Implications for Water Management. Vairavamoorthy. 2012c. Integrated Urban Water Manage- Background paper. World Bank ment for Arua. Report prepared for the World Bank by • Eckart, J., K. Ghebremichael, K. Khatri, H. Mutikanga, J. Patel School of Global Sustainability, University of South Sempewo, S. Tsegaye, and K. Vairavamoorthy. 2011. Florida, Tampa. “Integrated Urban Water Management in Africa.� Pa- • Jacobsen, M., Webster, M., and K. Vairavamoorthy (eds.) tel School of Global Sustainability, University of South 2012. The Future of Water in African Cities: Why waste Florida,Tampa. Water? The World Bank: Washington. INTEGRATED URBAN WATER MANAGEMENT / 29 The reports listed below have been produced as a result of the IUWM activity in the Europe and Central Asia region (ECA). More information on this work will be shortly accessible through the general IUWM website (http://water.worldbank.org/iuwm), following the link to the ECA work. • Scandizzo, P.L., and R. Abbasov. 2012. The value of water • World Bank 2011. Integrated Urban Water Study: Baku, in the Greater Baku Area: an integrated water manage- Azerbaijan. Internal Report. Washington, DC. ment study, Internal report, The World Bank. 30 / WPP CASE PROFILE 1 © 2012 The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: http://water.worldbank.org/wpp