Water Conservation and Management

1. Water Conservation and Management Synthesis Evaluation Evaluation Committee November 2013

2. Content of the Evaluation Synthesis • Introduction • Objectives, Scope, Methodology, Limitations • IFAD and Water: The Strategic Level • IFAD’s interventions: Water for People and Livelihoods • The experience of Multilateral Development Banks (MDBs) • Emerging Issues, Challenges and Opportunities • Overview and Conclusions 3

3. Background • Water being seen increasingly as a key constraint to food security & equitable growth • Water availability varies across regions. Most of the poorest are also in some of the most water deficient regions/ countiries • Water availability has impact on: • Economic well being (Agricultural Water Management- AWM): 70 % of world’s freshwater resources used for agriculture. Majority of rural poor depend on agriculture and related activities for livelihood. • Social well being (Water, Sanitation, Hygiene -WASH): 2 million people die annually of diarrhoeal diseases, most of them below 5 years 4

4. Objectives of the Evaluation Synthesis To review: • IFAD’s response to emerging issues in rural water security & governance • If IFAD’s investments in water are meeting their intended objectives and are sustainable • If it is possible to further enhance effectiveness & sustainability of IFAD’s investments in water 5

5. Methodology • Period coverage: 2002-2012 • Triangulation between: • Desk review of past IOE evaluations & IFAD documents; • Interactions with select IFAD senior & middle managers and CPMs/CPOs • Learning event • No field visits • Analysis based on IOE’s evaluation criteria 6

6. Limitations • No single IFAD project focused exclusively only on water. Water embedded among many components • No single evaluation on water undertaken in the past, hence no baseline for comparison • Of the projects evaluated in the past, we have a limited dataset of projects where water holds significance 7

7. Water in IFAD’s strategies • Strategic Framework 2011-15 underpinned by heavy references to water: • 2 of the 5 Strategic Objectives • 3 of the 8 thematic areas of engagement • 3 of the 6 programme or project level intervention • 2 of the 4 expected outcomes • Recognition of importance of water in 8th and 9th Replenishment 8

8. Water in IFAD’s policies • 4 of the recent 18 IFAD policies make specific references to water • IFAD’s engagement in Policy Dialogue: • At global level: Membership of UNCCD, ILC etc. Partnerships include European Commission (Food security initiative), Global Environment Facility etc. • At regional level: Building up knowledge sharing forums (e.g. the Improved Management of Agricultural Water in East and Southern Africa (IMAWESA)). Also through regional grants. • At national level: Limited success in policy dialogue, including water. Successful examples include Sudan, Azerbaijan, Haiti, Swaziland, Senegal, Lao PDR 9

9. IFAD on the ground: RB-COSOPs • RB-COSOPs key to IFAD’s operations on the ground : • 2006-08: Recognize water as key constraint for agricultural production & also addressed in strategic objectives in half of them. Poor cascading from SO level to investment programming • 2009-12: Improved representation of water at strategic objective level and cascading of water from SO level to investment programming. Improved alignment of delivery instruments with strategic objectives. Recognition of climate change & its implication for water & rural livelihoods • Also, investments in water aligned with government priorities and polices reflected in the Poverty Reduction Strategy Papers, Agricultural Strategies, specific Water Policy Plan 10

10. IFAD on the ground: water portfolio • IFAD’s active water portfolio (as of Nov.2012) • 178 of 272 projects (68% of total no. of projects) have water component • 65 % (115 projects) of these projects deal with only Agricultural Water Management (AWM), 11 % (19 projects) relate only to safe WAter, basic Sanitation services, improved Hygiene (WASH) and the rest 25% (44 projects) to both • NEN region with 80 % of the portfolio consisting of water 11

11. Findings • Water is an “embedded” component in IFAD projects. Performance of these “non-water” components determines impact and sustainability of outcomes from water investments • To date no water-specific evaluation has been conducted • Comparing 170 projects evaluated by IOE with a subset of “water related” projects revealed that with regard to relevance, effectiveness and efficiency, they are similarly rated. • However, the water related projects significantly trail behind in regard to “Overall Project Achievement” 14

12. IFAD on the ground: Water for people & livelihoods • An assessment of water from IOE ratings in ARRI database (2013):Proportion (%) of Projects Rated Moderately Satisfactory or Better: 2002- 2011 13

13. Selected Issues re Relevance • Generally Very High Relevance with respect to alignment with IFAD’s as well as with partner country priorities and policies • Not always so in regard to: (i) meeting beneficiary needs (Sudan, Madagascar) (ii) creating synergistic links with similar water projects in the country (Azerbaijan) (iii) ensuring greater integration with “non-water” components (Azerbaijan) (iv) establishing an enabling institutional framework for the water intervention (Sudan) (v) regulatory, technical and organisational drawback, failures and defects (Egypt) (vi) cultural and social specificities and characteristics (Albania)

14. Selected Issues re-Effectiveness Effectiveness is enhanced with/when: (i) institutional reforms and capacity building support project interventions (+Azerbaijan, Mozambique) (ii) technically appropriate measures using local resources and skills are well implemented (+ Rwanda, Ethiopia, Morocco) (iii) the need is significantly met with easy access tor the largest number of target beneficiaries with spin-off benefits (+ Mozambique) (iv) the target group secures the majority of project benefits (- Albania) (v) beneficiaries are involved in all aspects of the project design and adequate technical support is provided (- Sudan) 15

15. Selected Issues re-Effectiveness (ctd.) (vi) adequate resources (financial, technical, institutional) and support are provided (- Mauritania, Niger, India) • Effectiveness is compromised when: (i) subsidies and market distortions create disincentives to improved management and maintenance (Azerbaijan) (ii) low or non-payment of user fees adversely O&M of project investments (- WUAs) (iii) frequent resource shortages and technical defects affect project performance (-Rwanda) 15

16. Selected Issues re-Efficiency • Efficiency is established when: • targets are met or exceeded with equal or less unit costs than originally planned or against existing local rates as well as within implementation time lines (Madagascar, China, Laos) (ii) beneficiaries are engaged throughout the process cycle, local knowledge, expertise and material are drawn upon (Philippines) (iii) cost overruns or administrative delays are compensated for through higher returns on investments as well as on-time execution (Azerbaijan) • Efficiency is adversely affected when technical and organisational competency is low, competitive service providers are not deployed and prices and costs go up (Rwanda, Sudan) 16

17. Selected Issues re-Sustainability • Where adequate water and energy sources are present, a virtuous cycle of productivity gains leading to surpluses and willingness to pay O&M fees is created • Command areas of irrigation system should not be more than 100 or 200 hectares, as WUAs find it difficult to manage larger systems • IFAD is trying out new approaches to ensure sustainability of its projects such as: • (i) promotion of a global community of practice for multiple water use systems; • (ii) pilot testing a “payment for environmental services” approach (in Africa and Asia) where downstream users pay upstream dwellers to maintain and restore watersheds 17

18. Cross-cutting Issues: NRM and Climate Change • Performance significantly improved -79% projects rated moderately satisfactory or better during 2009-2011 • Around 70 % IFAD projects are located in ecologically fragile regions • Water as a natural resourceand environmental service; healthy ecosystems are key to enhancing water stocks and flows. • Agriculture, especially in dryland regions is dependent upon environmental services. Conservation increases productivity and soil health • Climate change adversely affect ecosystems and water especially in water stressed countries. • IFAD needs to be alert to the environmentally adverse impacts of water interventions and design ameliorative measures 20

19. Cross-cutting Issues: Gender and Women’s Empowerment • 80 % projects evaluated in 2010-2011 (2 yrs data) - performance is generally good • Women are managers of water on the farm and at home; yet, they are under-represented and often excluded from decision making bodies • One of the causes for lower participation of women in WUAs is because the issue of multiple uses of water is not adequately addressed • In most developing countries, no land = no water rights for irrigation and productive uses - very few women own land in their names • Interventions should not lead to increased work burdens on women and elite benefits capture 21

20. Cross-cutting Issues: Institutions and Policies • Dramatic improvement: from 40 % in 2002-2004 to 94% project rated moderately satisfactory and better in 2008-2010 • Water User Associations (WUAs) – an important innovation promoted by IFAD (likewise different types of CBOs for different purposes) • WUA’s have served as training fora for building skills, capacities and the confidence needed for effective governance • Experience of WUAs is mixed. IWMI study found that 17 of 24 projects in Asia were successful. In the NEN region overall performance iss disappointing. Of 25 WU’s studied in Egypt’s West Nubaria RDP, only 7 (24%) were successful • IFAD has drawn important lessons in regard to conditions necessary for the success of WUAs 22

21. Water : IFAD & other Millennium Development Banks • Water policies of all MDBs are largely consistent • All MDBs follow Integrated Water Resource Management (IWRM) approach. • Other MDBs have multi sectoral approach while IFAD restricts itself to rural smallholder irrigation • Domestic water supply & sanitation provided by IFAD only out of situational necessity. No comparative advantage in this field with other MDBs • IFAD best performing in stakeholders’ participatory approach • IFAD is only MDBfocussing exclusively on the poor, the others may also include them. 24

22. Key Learnings from the World Bank’s Evaluation of its Water Sector • Effective management of water demand is the critical challenge • Watershed projects which includes livelihoods perform better than those without • Water quality is an emerging issue and will need to be addressed • Sanitation needs greater attention; more emphasis is needed on household connections; • Tackling the water crises requires multi-partner and stakeholder • Robust data on water resources is required to better promote effective management; it should be treated as a public good • Stakeholders must be seriously involved at all stages in the project cycle 25

23. Selected Conclusions • Water plays a crucial role in IFAD’s projects. IFAD has a comparative advantage in AWM • IFAD’s engagement in the water sector is endorsed in several strategic documents • RB-COSOPS are increasingly presenting interventions aligned with water-related Strategic Objectives • IFAD’s engagement in water reflects a variety of purposesand interventions reflecting beneficiaries’ involvement in project design and implementation • Performance in institutional arrangements determines impact and sustainability of outcomes from water investments • IFAD played a major role in WUAs. Lessons learned need to be disseminated 25

24. Selected Conclusions (ctd.) • Unlike other IFIs, IFAD does not have a specific water policy but compares well in terms of beneficiary participation and poverty focus • Overall, it can be said that IFAD’s engagement with the water sector has been improving due to synergistic action between different IFAD’s instruments • However, IFAD’s engagement can only be expected to deepen in the years ahead, due to climate change, growing scarcity of water and need for increasing food production 26

25. Reflections for the Future • Water : IFAD’s ‘Big Bet’ for lifting rural poor out of poverty • Enhancing water productivity & managing water demand is critical to IFAD’s development effectiveness • Rainfed agriculture is key to productivity gains and wider poverty impact • Adopt a holistic and systems approach is necessary to assess the likely impacts of water interventions • Continue to engage in regeneration of natural resources and ecosystems management to augment water security 27

26. Reflections for the Future (ctd.) • Climate adaptive measures must be included to strengthen the resilience of interventions • Risk analysis and mitigation in project design should be strengthened • Promote secure Land Rights for the poor in order to ensure reliable access to water • Local institutional capacities must be built for good water and land governance systems 28

27. Thank you