MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS: TAKING AN INTEGRATED URBAN WATER MANAGEMENT APPROACH A GUIDANCE NOTE MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS: TAKING AN INTEGRATED URBAN WATER MANAGEMENT APPROACH A GUIDANCE NOTE Contact Information This paper is available online at http://www.worldbank.org/water. Authors may also be contacted through Ask Water at Ask- Water@worldbank.org. © 2016 The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org Acknowledgements This report was produced as part of the Water Global Practice’s Science of Delivery in Urban Water Supply and Sanitation initiative, and under the auspices of the IUWM Knowledge Silo Breaker which is supported by the, Urban, Environment and Water Global Practices. The report was written by the following World Bank staff and consultants: Martin Gambrill, Meleesa Naughton, Lizmara Kirchner and Amanda Goksu. Valuable comments and contributions to this document were provided by: Catalina Marulanda, Nathan Engle, Victor Vazquez, Kalanithy Vairavamoorthy, Carlos Tucci, Maria Angelica Sotomayor, Ste- phane Dahan, Diego Rodriguez, Matthijs Schuring, Miguel Vargas Ramirez, Sanyu Lutalo, Richard Abdulnour, Ernesto Sanchez- Triana, Jolanta Kryspin-Watson, Yogita Mumssen, John Morton, Glenn Pearce-Oroz, and Ravikumar Joseph. The team would like to especially thank William Rex and Paul Kriss for their guidance. This work was made possible by the financial contribution of the Water Partnership Program (WPP) – http://water.world- bank.org/water/wpp. Disclaimer – World Bank 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. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. Front page photo © Dominic Chavez/World Bank. CONTENTS Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Chapter 1: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Objective and structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 What is Integrated Urban Water Management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2.1 Urban Water Management: Current Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2.2 Key Principles of IUWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.2.3 Where and how has IUWM been Implemented? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1.2.4 An enabling environment for IUWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chapter 2: City Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.1 The water-scarce city: Windhoek, Namibia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.1.1 Diagnostic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.1.2 Response and IUWM Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2.1.3 Lessons learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.2 The City of Extreme Events: Melbourne, Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.2.1 Diagnostic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.2.2 Response and IUWM Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2.2.3 Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.3 The coastal city: Rotterdam, the Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.3.1 Diagnostic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.3.2 Response and IUWM framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.3.3 Lessons learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.4 WB Engagement under an IUWM approach: Vitória, Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.4.1 Diagnostic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.4.2 WB engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2.4.3 Response and IUWM framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2.4.4 Lessons learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 iv MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS Chapter 3: Transitioning to an Integrated Urban Water Management Approach in a City . . . . . . . . 27 Chapter 4: Applying an IUWM Approach in a City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4.1 Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4.1.1 Conduct a data review of the urban and water sector in the city . . . . . . . . . . . . . . . . . . . 33 4.1.2 Identify stakeholders, analyze institutional framework and political economy . . . . . . 34 4.1.3 Engage stakeholders and make the case for an integrated approach . . . . . . . . . . . . . . 35 4.1.4 Conduct a rapid field assessment of urban and water challenges . . . . . . . . . . . . . . . . . . . 37 4.2 Diagnostic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 4.2.1 Technical studies, including economic and financial analysis of IUWM measures . . . 39 4.2.2 Structural measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 4.2.3 Nonstructural measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 4.3 Strategic Planning: Developing an Umbrella Framework for IUWM in the City . . . . . . . . . . . 46 4.3.1 Inclusive planning: determining outcomes, activities, and options for an . integrated approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 4.3.2 Agree on institutional responsibilities and cost sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4.3.3 M&E framework and knowledge management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Appendix A: Global Experience and Resources Related to IUWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Appendix B: Literature Review: The IUWM Paradigm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Appendix C: Checklist for Rapid Urban and Water Diagnostic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 List of Boxes Box 1.  Jakarta: A City Faced with Multiple Urban Water Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Box 2.  Integrated Urban Water Management Benefits the Urban Poor . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Box 3.  Key Principles of IUWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Box 4.  Range of Drivers for Adopting IUWM As a Water Management Framework . . . . . . . . . . . . . . . 9 Box 5.  DC Water’s Clean Rivers Project: Encouraging Private Adoption . of Natural Systems for Improved Water Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Box 6.  Developing an IUWM Approach in Brazil: an overview of Bank support . in São Paulo, Paraná and Espírito Santo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 List of Figures Figure 1.  Multiple Layers of Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 2.   Differentiating Role and Time Frame of IUWM Umbrella from Project . . . . . . . . . . . . . . . . . . 8 Figure 3.  Schematic of Windhoek’s Urban Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Figure 4.  Percentage of Melbourne Total Reservoir Storage Level, 1993–2010 . . . . . . . . . . . . . . . . . . 15 CONTENTS   v Figure 5.  The Greater Vitória Metropolitan Area and Its Municipalities . . . . . . . . . . . . . . . . . . . . . . . . . 21 Figure 6.  Possible Transition Pathway to an Integrated Approach . to Urban Water Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Figure 7.  Four Cities Transitioning under the SWITCH Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Figure 8.  Participatory Mapping of Water-Related Issues in Can Tho, Vietnam . . . . . . . . . . . . . . . . . 38 Figure 9.  Economic Analysis of IUWM and Conventional Options for Water Supply . in Nairobi, Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Figure 10.  Conventional Development of Water Resources for Nairobi, Kenya (2010–35) . . . . . . . 60 Figure 11.  Staged Development of Water Resources for Alternative IUWM Approach . for Nairobi, Kenya (2010–35) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Figure 12.  The Water Sensitive City Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 List of Tables Table 1.  WB Engagement with State of Espírito Santo in Water and Urban Sectors . . . . . . . . . . . . . . 23 Table 2.  Focus Areas of WB Cooperation with Espírito Santo in the GMVR (1994–2021) . . . . . . . . . 23 Table 3.  Possible Preliminary Elements of an IUWM Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Table 4.  Potential Financial and Technical Support Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Table 5.  Differences Between Conventional and IUWM Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Acronyms AWSB Athi Water and Sanitation Board CSIRO Commonwealth Scientific and Industrial Research Organisation DRM Disaster Risk Management EAC Equivalent Annual Costs EU European Union FMDV Fonds Mondial pour le Développement des Villes (Global Fund for the Development of Cities) GDP Gross Domestic Product GEF Global Environmental Facility GFDRR Global Facility for Disaster Reduction and Recovery GIS Geographic Information System GWP Global Water Partnership ICLEI Local Governments for Sustainability IEG Independent Evaluation Group IHA International Hydropower Association INSA Institut National des Sciences Appliquées (National Institute of Applied Sciences) IUWM Integrated Urban Water Management IWA International Water Association M&E Monitoring and Evaluation MOOC Massive Online Open Course NPV Net Present Value NRW Non-Revenue Water NWSC National Water and Sewerage Corporation of Uganda ODI Overseas Development Institute O&M Operation and Maintenance PCN Project Concept Note PPP Public-Private Partnership PSGS Patel School of Global Sustainability PSP Private Sector Participation QER Quality Enhancement Review TA Technical Assistance viii MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS WASH Water, Sanitation and Hygiene WB World Bank WFD Water Framework Directive WHO World Health Organization WPP Water Partnership Program WRM Water Resources Management WSS Water Supply and Sanitation Foreword I n 2014, over half of the world’s population was residing in urban areas. Continuing population growth and urbanization are projected to raise this to two-thirds, adding 2.5 billion people to the world’s urban population by 2050, with nearly 90 per cent of this increase concentrated in Asia and Africa. With rapid urbanization, competition for water resources across all sectors will become fierce. At the same time, raw water sources risk becoming more contaminated through changes in land use patterns, poor solid waste and stormwater management, inadequate wastewater treatment, aging infrastructure, and unbridled formal and informal urban expansion. Climate change is adding more uncertainty and vulnerability to these challenges as water management has to take into account the additional stresses stemming from rising temperatures, changes in precipitation patterns and weather variability. Consequently, the quantity and quality of water available to cities for agriculture, energy, industry and human development needs is, and will remain, in constant flux. With many sectors relying on the same river basin, the competitive dynamics at play require a paradigm shift to an integrated approach to urban water management. In response to these challenges, integrated urban water management (IUWM) aims to improve the way resources are managed across the urban water cycle by promoting resource diversification, system efficiency and conservation, while taking into account all water users in the city and in the wider catchment through broad stakeholder participation. IUWM is an integral component of sustainable cities and metropolitan areas. The four dimensions of sustainability: clean and green, inclusive, resilient, and productive are inextricably linked to IUWM. Reducing pollution loads and making sure every drop of water is used in the most efficient manner are integral concepts of IUWM. Providing water services to excluded populations, and enhancing the resilience of cities to water disasters are key pillars of IUWM. Finally, competitive and productive cities not only need to provide water services for businesses and industries, but also need to be ready to deal with the extreme variability of water and the disruptions it can cause; water shortages and floods reduce the competitiveness of cities. This Guidance Note was produced as part of the Water Global Practice’s Science of Delivery in Urban Water Supply and Sanitation initiative, and under the auspices of the IUWM Knowledge Silo Breaker which is supported by the Urban, Environment and Water Global Practices. It aims to bridge the gap between knowledge and implementation by capturing tacit knowledge and facilitating World Bank teams’ requests for practical guidance on how to engage with clients under an IUWM approach. The Guidance Note is designed as a key entry document with links to existing and future material which provide depth of information on specific IUWM topics for development practitioners. It aims to x MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS be inclusive of perspectives from different water demonstrates the nature and timing of World and urban sectors, including all aspects of urban Bank investments in a series of operations over water management as well as land use planning, a sustained period which made possible the social development, climate change, solid waste gradual transition to an IUWM approach. The management, energy, flood control, drainage examples highlight that there is no one way to and the environment. The objective is not to transition to, and implement, IUWM. The Guid- add to the theoretical framework but to provide ance Note nevertheless provides some practical practical guidance, references and recommen- steps and entry points for an integrated urban dations on IUWM for Bank practitioners and their water management methodology, which is government counterparts working in developing based on key drivers and on an appreciation country cities. of the institutional setting and the political The Guidance Note includes profiles from economy of the cities where we work on these four cities that have taken an IUWM approach issues. triggered by different factors: water scarcity in As our collective body of knowledge on IUWM Windhoek, Namibia; flood protection in Rotter- continues to grow, we hope that this Guidance dam, the Netherlands; climate variability in Mel- Note will provide a pragmatic and flexible tool bourne, Australia; and rapid, unchecked urban- for World Bank task teams and their counterpart ization and upstream water quality challenges stakeholders working on urban water manage- in Vitoria, Brazil. The latter case, in particular, ment challenges in cities across the globe. Jennifer J. Sara Ede Jorge Ijjasz-Vazquez Acting Senior Director Senior Director Water Global Practice Social, Urban and Rural Resilience Global Practice Chapter 1 . Introduction 1.1 Objective and Structure The objective of this document is to provide guidance for managing the urban water cycle in a sustain- able manner, with a focus on cities in developing countries. In doing so, the Bank is promoting a para- digm shift to more holistic and sustainable management of urban and water resources by applying an Integrated Urban Water Management (IUWM) approach to the broad water challenges commonly faced in developing country cities around the world. IUWM is not a new concept; its principles have been outlined elsewhere before and are refered to in a variety of ways (Cities of the Future (IWA) or Water Sensitive Cities (Wong 2009) and with dif- ferent acronyms (Sustainable Drainage Systems (SUDS), in the UK, or Water Sensitive Urban Design (WSUD), in Australia). The objective of this Guidance Note is not to add to the theoretical framework but to provide practical references and recommendations for the Bank and for other development practitioners working on the issues of water in cities in developing countries. IUWM is multi-sectorial in nature, and this note specifically targets staff working in several Global Practices of the Bank: Water (particularly urban Water Supply and Sanitation (WSS) and Water Resources Management (WRM)), Urban (particularly urban services provision, Disaster Risk Management, and urban upgrading), Envi- ronment, and Climate Change, as well as Social and Environmental Specialists involved in the design and implementation of Bank projects. A separate version of the Guidance Note will be published for an external audience, aimed at Bank clients such as municipal, central and regional governments, water utilities, river basin authorities, urban planners, and other relevant stakeholders and decision makers. After a brief introduction to the concept of IUWM (Section 1), this Guidance Note profiles the differ- ent IUWM approaches applied in three types of city: a water-scarce, fast-developing city (Windhoek, Namibia), an expanding city subject to climate extremes (Melbourne, Australia), and a dense, flood- prone city (Rotterdam, the Netherlands). It also profiles an example of Bank engagement under an IUWM approach in a fast-growing city in a middle-income country (Vitória in Espírito Santo, Brazil). The final section of the Guidance Note showcases a potential methodology for applying an IUWM approach in a city, from the initial engagement and diagnostic phases toward the application of a full IUWM umbrella framework under which a program (or a series of operational loans and analytical activities) can be implemented. Throughout this Guidance Note, we will refer to the city and the urban or metropolitan areas inter- changeably—the area of interest being the urban agglomeration (including informal areas and other urbanized zones) rather than the jurisdiction of the city per se. 2 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS 1.2 What is Integrated Urban across administrative boundaries, beyond Water Management? the city’s jurisdiction. In this context, growing demand for water supply and sanitation, and Urban water management remains an acute for related services such as drainage, access challenge for local authorities and urban plan- ways and solid waste manegement, when ners, with one quarter of the population in large accompanied by unplanned land use in urban cities worldwide currently experiencing water areas, leads to environmental degradation insecurity due to geographic and economic fac- 1 and to the contamination of surface and tors; a situation which is further exacerbated by groundwater sources. These circumstances, increasing urbanization, demographic growth, in turn, further exacerbate the security of water scarcity and climatic variability (McDonald water supply, increase flood risks, and affect 2014). the quality of life and environmental health of the city and its current and future residents. 1.2.1 Urban Water Management: Such deterioration in the urban fabric of Current Challenges developing world cities negatively impact The main challenges for urban water manage- their economic growth prospects and their ment include: attractiveness and competitiveness, at one end of the urban spectrum; at the other end, ●● Rapid and unplanned urbanization: Cur- small and medium sized towns experiencing rently, 54 percent of the world’s population high population growth will likewise face (i.e. 3.9 billion people) resides in urban areas; increasing challenges to provide basic urban by 2050, 66 percent of the world’s population services in a sustainable way as they prepare is projected to be living in urban areas, with to become the cities of tomorrow (Jacobsen nearly 90 percent of this increase concen- 2012). trated in Asia and Africa (UN 2014). Cities ●● Inefficient water management: Current in developing countries already struggle approaches to urban water management to plan for and accommodate the current remain sector-specific, lacking the neces- number of residents in a sustainable manner: sary scope to adequately address cross-cut- unchecked urban growth has led to increased ting, water-related challenges in developing demand for infrastructure and resources world cities. Watershed approaches to urban (land, energy, water, transport) at suboptimal water management, where they exist, are densities, which makes it less efficient to pro- often fragmented and not well coordinated vide basic services in areas of urban sprawl with urban planning and with the provision (Prietoa 2010). Unplanned urban sprawl also of other urban services. Local authorities reinforces social and economic inequalities, may also lack information and experience as poorer residents relocate to informal areas on the technical options available for a more without access to basic services and often sustainable approach to urban water man- at risk of climate extremes, disasters or sea agement. As a consequence, variations in level rise (Revi 2014). The provision of basic the quantity and quality of water available to services and the management of shared cities for drinking water, agriculture, energy, resources, including water, is also hindered 1  Water stress/insecurity defined in this reference as cit- by the need to coordinate across different ies with a ratio of water use to water availability of higher Chapter 1 service providers within a city, as well as than 0.4. Introduction   3 industry and the environment, exacerbate The costs of inaction are significant but difficult water insecurity, as competition for water to quantify: they range from the financial costs between sectors increases, both within the of recurrent water-related disasters (floods, city and between the city and other actors in droughts) that affect virtually all cities in devel- the watershed, particularly when the quality oping countries and that are bound to increase, of water is compromised. with or without the impact of climate change ●● Climate change adaptation: Urban water (Güneralp 2015), through the human and eco- management must take into account the nomic costs of the lack of universal water and increased variability in water resources sanitation services (Hutton 2004, WSP 2015), availability stemming from the effects of to the costs associated with environmental climate change, including rising tempera- degradation, loss of ecosystem benefits, and tures, changes in precipitation patterns, and lack of environmental health. To develop sustain- climate variability. An estimated 150 million ably, cities such as Jakarta (Box 1) need to look people currently live in cities with perennial for alternatives to the traditional approaches to water shortage; population growth and urban growth and to service provision, given the climate variability may increase this number acute pressures they face regarding the urban to 1 billion by 2050 (McDonald 2011). Fur- environment and the urban water cycle. thermore, most of the key climate risks are concentrated in urban areas, as high urban- ization and rapid growth of large cities are  akarta: A City Faced Box 1  J accompanied by an increase in highly vulner- with Multiple Urban able urban communities, living in informal Water Challenges settlements, many of which are on coastal Jakarta suffers from many water-related land at high risk from sea level rise, from issues, including chronic perennial flooding and extreme floods every few years. The 2007 flood extreme weather events, and from other cli- alone affected 25 percent of the city and caused mate change effects (Revi 2014). The level of financial losses of US$900 million. Flooding has vulnerability to the effects of increasing water been blamed on deforestation in the nearby insecurity and climate change differs across mountains, but the main causes lie closer to home: wetlands and rice fields have been paved and within cities, and differences in adaptive over, in defiance of urban planning regulations; capacity are to a large extent determined by drainage canals are blocked by garbage, the poverty and inequality, as well as by access result of an ineffective solid waste management to infrastructure, institutions, and informa- system; and while the city confronts sea level rise of 60 centimeters or more over this century, tion. The urban poor are most vulnerable to unregulated and unsustainable groundwater these challenges, as they have less access extraction has already sunk coastal areas of to resources to cope with extreme weather the city by up to 4.5 meters over the past 50 events and are often marginalized from deci- years. Parts of the city could subside another 5 meters this century if groundwater extraction sion making, particularly when they reside in is not brought under control, and will likely sink the informal settlements of growing urban a further 1.5–2 meters, even if groundwater areas in developing countries (Revi 2014). use is curtailed by 2020. Jakarta is not alone in facing such challenges: such situations are also seen in Bangkok and in many other coastal or The urban water management challenges growing cities around the world. described above pose a threat to the sustain- Source: (IEG 2011). Chapter 1 able economic and social development of cities. 4 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS 1.2.2 Key Principles of IUWM into account other users in the river basin, such IUWM offers a framework that can be used to as other cities and/or sectors with their different complement traditional approaches to the chal- needs in terms of water quantity and quality lenges that affect the provision of water-related (Figure 1), which may evolve over time. Last but services in urban areas. It is underpinned by the not least, IUWM usually requires cooperation idea that cities are fundamentally dependent on, among several jurisdictions across which the and have an impact on, the wider watershed and urban area is spread, and with other users in the consequently need to take into account all ele- river basin, as well as coordination of the differ- ments of the urban water cycle as they develop ent aspects of urban water activities. (Closas 2012). Under an IUWM approach, plan- The World Bank defines IUWM as “a flex- ning for the water sector is integrated with plan- ible, participatory and iterative process, which ning for other urban issues, such as land use, integrates the elements of the urban water cycle housing, energy, industry, and transportation, (water supply, sanitation, stormwater manage- in order to overcome urban planning fragmenta- ment, and solid waste management) with both tion, with the aim of improving system-wide per- the city’s urban development and river basin formance (Maheepala 2010). IUWM also takes management to maximize economic, social and Figure 1.  Multiple Layers of Integration 1. 2. 3. Housing Economic Energy development Solid waste generation National Water administration Irrigation supply Health Sanitation Transport Drainage River Basin Agency Regional administration Urban area Water Floods Urban level administration(s) Fishing Wastewater /drought Energy Land use treatment management planning Water Civil Resources society Tourism Management Urban agriculture Environment Navigation Vertical and Industry horizontal administrative layers River basin management The Urban Water Cycle: need for integration within and upstream/downstream users the water sector and with other urban sectors Selected impacts of urban sectors on water Selected impacts of water on urban sectors Source: Authors, based on (ICLEI 2011) Note: An IUWM approach takes into account the needs of all users within the basin (2) while working across vertical and horizontal administrative boundaries (1) to overcome the traditional fragmentation of the Urban Water Cycle Chapter 1 (3) and integrate interdependent sectors (urban (in green) and water (in blue)). Introduction   5 environmental benefits in an equitable manner” (World Bank 2012). IUWM offers a holistic way of ntegrated Urban Water Box 2  I strategic planning by managing competing water Management Benefits users at the level of the watershed, recognizing the Urban Poor the needs of the city as well as those of upstream Compared with the traditional benefits of urban and downstream users (Figure 1). WSS services, the additional contribution of an IUWM approach to poverty reduction and An IUWM approach can yield multiple social, shared prosperity has been difficult to quantify. environmental, and economic benefits, among On the one hand, both share the health and others, enhancing water security, health ben- economic benefits of improved access to WSS efits, and climate adaptation strategies; reduc- services; however, IUWM puts an additional focus on the environmental, quality of life and ing impacts on the environment; and improving health benefits of integrated water supply, overall system-wide performance. It also has the sanitation, drainage, urban planning and WRM, potential of bringing additional benefits through which translate into social, environmental, and a focus on the long-term environmental, quality economic benefits for the city in general and for its poorest residents in particular, who are of life and health outcomes for urban residents, often the ones most affected by water-related particularly the urban poor (Box 2). hazards. For instance, reduced water pollution The IUWM approach is based on a combination through an integrated approach will benefit of principles aimed at optimizing the management the health and living conditions of all urban residents; improved solid waste management, of urban and water-related resources (Box 3). The and special drainage and flood protection key is to focus on the outcomes that the city aims measures, will benefit the most vulnerable who to achieve rather than on the conventional means live in informal areas most at risk of flooding. As of providing WSS and related services provision. 80 percent of all economic activities across the world are currently concentrated in cities, the Through coordinated and flexible planning involv- provision of urban and water services and the ing water actors and urban stakeholders, IUWM preservation of environmental capital provide a aims to optimize the sequencing of traditional foundation for shared prosperity now and in the and new urban infrastructure by using alternative future (McKinsey 2013). management scenarios that leverage efficiencies and promote sustainability and resource conser- vation within the watershed. the key principles of IUWM. In addition, an IUWM IUWM represents a paradigm shift in how we approach encourages nutrient, water and energy manage water resources in the urban context; it is recovery from waste, including from wastewater, a way of thinking, not a methodology per se. It is an for reuse within, or close to, the city. evolving science that requires a mindset in which It is important to highlight that there is no one- all urban and water stakeholders recognize the size-fits-all model to an IUWM approach; rather, issues and are determined to solve them in the long the mix of principles should be adapted to local run, whether or not these issues affect their sector socio-cultural and economic conditions (Bahri directly: for instance, housing regulations can be 2012). Even within a given city, some urban areas changed to solve run-off issues and mitigate flood may apply different IUWM options to solve water risks, thereby directly benefiting one sector while and urban issues, depending on the local condi- forcing another sector to tackle an issue that does tions. For instance, some areas within a city may not directly affect it. The sustainable manage- be more prone to flooding than others, or may be ment of water resources, where even the smallest growing faster than others, which will require a dif- Chapter 1 interventions can have a large impact, is one of ferent set of options for IUWM within the city. 6 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS IUWM principles, and related Box 3  Key Principles of IUWM resources, please refer to Appendix A. • IUWM recognizes the value of alternative water sources. • IUWM differentiates the qualities and International experience potential uses of water sources (and An early champion of the IUWM approach was promotes the use of “fit-for-purpose” water sources, in terms of quality and the EU-funded SWITCH project, which was quantity). implemented between 2006 and 2011 and • IUWM views water storage, distribution, researched IUWM approaches around several treatment, recycling, and disposal as part interrelated themes: water supply, stormwater, of the same resource management cycle. • IUWM seeks to protect, conserve, and use wastewater, planning for the future, engaging surface water and groundwater (both in stakeholders, and decision-support tools. The quality and quantity) at its source. research project engaged with 12 cities around • IUWM accounts for nonurban users who the world, in developed and developing contexts, are dependent on the same water source within the wider catchment. by empowering them to develop an integrated • IUWM aligns formal institutions vision for water and urban development in their (organizations, legislation, and policies) and city. It has developed a wealth of resources, informal practices (norms and conventions) which are outlined in more details in Appendix A. that govern water in and for cities. • IUWM recognizes the relationships among Another pioneer institution in the field of water resources, land use, and energy. IUWM is the CRC for Water Sensitive Cities, • IUWM simultaneously pursues economic which is based in Monash University, Australia. efficiency, social equity, and environmental The CRC researches the themes of water-sen- sustainability. • IUWM encourages participation by all sitive urban development and technologies, as stakeholders. well as IUWM adoption pathways; its research Source: Bahri 2012. primarily aims to assist Australian cities in implementing innovative IUWM options. Aus- tralian expertise has also been used to develop Engaging with all interested parties, includ- a number of projects applying IUWM principles ing the public and the private sector, to agree on in Southeast Asia, in particular in Vietnam, an IUWM framework for the city, and sustaining through the Commonwealth Scientific and this engagement in the long term, is perhaps the Industrial Research Organisation (CSIRO) and most challenging aspect of an IUWM approach AusAID (CSIRO 2012). and involves a lot of time and effort for the The International Water Association (IWA)’s relevant authorities. For this reason, an IUWM “Cities of the Future Programme,” coordinated by approach may not be suitable for all cities; for it the University of South Florida, is a major avenue to be successful, an enabling environment must for knowledge exchange and dissemination on the be in place, which we will discuss in the next topic of IUWM, with regular workshops and dedi- sections. cated working groups on the topics of integrated engineering, planning, and institutions for cities. 1.2.3 Where and how has IUWM Finally, the OMEGA project (Outil Méthodo- been Implemented? logique de Gestion Intégrée des Eaux Urbaines)  For more details on international and is a recent collaboration between three French Chapter 1 World Bank experience of applying research institutes, a WSS utility (Lyonnaise Introduction   7 des Eaux/Suez Environnement), and three The Bank’s ‘Blue Water, Green Cities’ French municipalities, which are acting as initiative2 focused on fostering a participatory coordinators and serve as case studies for the approach in determining an IUWM framework implementation of particular IUWM options in in Latin American cities, as well as undertaking France (Bordeaux, Lyon, Mulhouse). A practical thorough diagnostics of a city’s urban and water output of this research project is a methodology issues. More details are provide in Appendix A. for developing an integrated approach to urban The Bank and the WPP also undertook water management, which can be of interest to technical assistance (TA) to develop an IUWM French-speaking client countries. umbrella framework in Baku (Azerbaijan). The approach focused on a thorough diagnosis of Experience from the World Bank urban and water challenges in Baku and an From the early 1990s, the World Bank embarked economic analysis of urban water management upon a series of projects in Brazil, entitled ‘Urban options, an assessment of the institutional Water Pollution Control’ projects, which included framework for urban and WRM, and consultation operations in São Paulo, Belo Horizonte, Curi- with stakeholders. tiba and Vítoria, as well as diagnostic exercises In Africa, a number of analytical studies for other rapidly urbanizing cities across the were undertaken by the Bank with the sup- country. These operations were IUWM projects port of the WPP to look at the potential for an in all but name, as they addressed a suite of IUWM approach in the growing urban areas of interrelated issues concomitantly, encompass- Sub-Saharan Africa. Jacobsen et al. (2012) con- ing wastewater pollution reversal, stormwater ducted an analysis of the urban and water-related and solid waste management, urban upgrad- challenges for 31 cities in Africa, with an in-depth ing and green space development, and did so diagnosis in several cities, including Nairobi through the engagement of different local and (Kenya) and Arua and Mbale (Uganda). While state actors from the relevant sectors, and with city authorities expressed interest in follow-up in an emphasis on improving the quality of life of each of the three cities selected as case studies, the poor. Subsequent generations of projects Nairobi was the only one in which an integrated in Brazil have futher built on these early IUWM approach was applied as part of an ongoing experiences, notably in São Paulo, Vítoria, Betim, World Bank investment project. Uberaba and Teresina. In East Asia, analytical work was also Furthermore, the Bank, with the support undertaken with the support of the WPP on the of the Water Partnership Program (WPP), has potential for an integrated approach (dubbed subsequently applied the concept of Integrated “Green Water Defense”) for adaptive water man- Urban Water Management in a more systematic agement in cities (Li 2012). WB operations such way through regional engagements, particularly as the Wuxikou Integrated Flood Risk Manage- in Latin America, Europe and Central Asia, and ment Project and the planned Ho Chi Minh City Africa. The approach taken in each city and the Flood Risk Management Project in Vietnam also level of engagement have varied, depending on take an integrated approach, bringing together local conditions, but have generally followed different sectors and stakeholders. the transition pattern identified in Chapter 4 (engagement with the city, participatory diag- 2  http://web.worldbank.org/WBSITE/EXTERNAL/ nostic of urban challenges, and strategic plan- COUNTRIES/LACEXT/0,,contentMDK:22358351~pag Chapter 1 ning for IUWM). ePK:146736~piPK:146830~theSitePK:258554,00.html. 8 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS 1.2.4 An enabling environment for limited in scope, fit into an integrated approach IUWM with clearly defined objectives and outcomes, As outlined in Section 1.2.2, IUWM is a mindset which can be monitored and reviewed regularly that requires sustained, multisectoral coordina- by city decision makers. tion across a number of urban and water-related IUWM is not a particular framework or services as well as the participation of all methodology that can or should be applied to all stakeholders in the decision-making process cities indiscriminately. For a city to benefit from for improved urban and water services delivery. an IUWM approach, it should normally (i) face As will be described in the following section, multiple water-related challenges that can be projects that apply the principles of IUWM do not solved through an integrated approach (e.g., need to deal with all of them at once, or engage water scarcity, flooding issues, drainage and/or with all of the relevant municipal sectors (some pollution issues, etc.) and (ii) have strong gover- of which are identified in Figure 1). Rather, they nance and institutional capacity, and the neces- should ultimately fit within an umbrella frame- sary leadership, to drive the process forward work (Figure 2), which has been worked out and (Jacobsen 2012). In this context, two crucial agreed with all relevant urban- and water-related factors should be borne in mind. First, the linking stakeholders, and which is used to prioritize of planning aspects across urban sectors and urban and water investments. This approach will spatial scales while involving all relevant stake- ensure that all interventions or projects, however holders is only feasible in institutional settings Differentiating Roles and Timeframes of an IUWM Umbrella Framework Figure 2.  from Projects 20-50 YEARS: Timeframe for a city’s IUWM Umbrella Framework MONITORING AND EVALUATION/ KNOWLEDGE MANAGEMENT A.1. Stakeholder A.2. Making the A.3. Rapid field A. Engagement consultation case for IUWM assessment B.1. Identify and B.2. Propose and validate IUWM B. Diagnostic analyze issues approach and conduct technical studies Iterative process C.1. Inclusive C.2. Agree on C.3. M&E C. Strategic planning planning process institutional framework responsibilities & feedback Feedback Implementing a series of projects mechanisms 5-7 YEARS: Average timeframe for implementing a World Bank investment project, which may deal with a limited number of Urban/Water sectors. Note: The implementation timeframe of the IUWM umbrella engagement is long-term and inclusive of all relevant Chapter 1 urban/water sector activities, while that of the project is short-term, with a more limited objective. Introduction   9 with relatively high capacity. Second, serious area is spread, as well as local or regional admin- water-related challenges, such as water scarcity, istrations in which upstream and downstream flooding, or water pollution issues, provide an users are located. The IUWM approach calls for entry point or a “driver” for IUWM approaches to a change not only in terms of how urban water be considered by urban decision makers. is managed, but also in terms of who manages An IUWM approach is most effective if it—the issues to be managed in the urban water several of the issues identified are associated cycle go beyond water services provision and the with water quality and quantity. As its imple- utility responsible for those services. mentation is usually lengthier than a traditional (i.e., single-sector) approach, it is best put to use in cases where a single solution is not pos- Key messages sible. For instance, multiple water-related drivers propelled the adoption of an IUWM framework Interventions that are based on an IUWM in Windhoek and in Buenos Aires, although they approach are found to work best in an insti- differed in nature; and, in practice, the enforce- tutional setting that already is, or that can be ment of an IUWM approach was often (though moved towards being: not always) underpinned by regulatory, political, or legal drivers (Box 4). ●● Administratively vertically integrated—that An integrated approach also requires coop- is, that involves the state, local, and munici- eration on, and coordination of, urban and water pal governments in the metropolitan region, activities beyond the traditional boundaries of as well as river basin authorities—given their the city: this may encompass multiple jurisdic- different purviews regarding the necessary tions of local governments over which the urban interventions;  ange of Drivers for Adopting IUWM As a Water Management Box 4  R Framework Legal and water quality drivers: In Buenos Aires, the Supreme Court of Argentina ruled that authorities were responsible for controlling the environmental degradation of the Matanza Riachuelo River, and ordered an accelerated action program for the cleanup of the river, which provided an entry point for an IUWM approach supported by the Bank. Water quality regulation and political drivers: Rotterdam turned to an IUWM framework as a means of complying with more stringent national and EU regulation for water quality, but also as a result of a strong political push at the municipal level to turn Rotterdam into a model “water city” and make it more attractive to potential residents. Scarcity of water resources and governance drivers: Windhoek and Melbourne both took an integrated approach to dealing with water resources scarcity. In Melbourne, the water resources scarcity issue only arose in recent years, due to strong demographic growth, climate variability, and related extreme events; while in Windhoek, an integrated approach to water supply has been in place for half a century due to the arid climate. In both cases, municipal governance structures helped with the implementation of an integrated approach: Melbourne has the institutional and governance structure to veto development in areas of flood risks; and Windhoek has the authority to extend its municipal territory to prevent development in areas where aquifer recharge takes place. Sources: (World Bank 2012, City of Melbourne 2009, City of Rotterdam 2007, Trepper 2012). Chapter 1 10 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS ●● Sectorally horizontally integrated—that ●● Backed by sustained analytical work, data, is, that encompasses the basic key urban and information on the provision of urban services (water supply, sewerage, drainage, and water services and hydrologic regimes, wastewater treatment, solid waste manage- to help inform decision making and monitor- ment, and slum upgrading) as well as water ing; and resources (both groundwater and surface ●● Underpinned by strong governance and clear water, in quantity and in quality) and land use institutional mandates and capacity, both in planning (ecological zoning, creation of green the urban and the water sector. spaces, protected areas, public spaces, etc.); Chapter 1 Chapter 2 . City Profiles T his chapter showcases cities in which an IUWM approach is being applied, to provide a refer- ence point for Task Team Leaders looking for more context or examples of what has been done elsewhere. It also provides an illustration of the type of IUWM approaches that have been implemented in four reference cities: ●● The water-scarce city, where water resource constraints have traditionally been the main driver for an IUWM approach (e.g., Windhoek, Namibia, with 322,500 residents) ●● The city of extreme events, where resilience and adaptation to climate extremes are the main driv- ers for an IUWM approach (e.g., Melbourne, Australia, with 4.3 million residents) ●● The coastal, flood-prone city, where managing water pollution and environmental health are the main drivers for an IUWM approach (e.g., Rotterdam, the Netherlands, with 625,000 residents) ●● The case of the Bank’s engagement under an IUWM approach in a fast-growing, developing city (Vitória, Brazil, with 1.7 million residents). 2.1 The water-scarce city: Windhoek, Namibia Namibia is the most arid country in Sub-Saharan Africa, with a generally hot and dry climate, marked by sparse and erratic rainfall. The country has perennial rivers only on its very northern and very southern borders, respectively 750 and 900 km from the capital, Windhoek, which lies in the country’s geographical center. In Windhoek, the average minimum and maximum temperatures range respec- tively from 6°C to 20°C in July (winter) to 17°C to 29°C in January (summer), the average annual rainfall is 360 mm, and average annual evaporation is 3400 mm (Lahnsteiner 2007). 2.1.1 Diagnostic Windhoek has seen a major increase in population, with the number of residents increasing from 190,000 in 1990 to 350,000 today, and a current population growth rate of 5 percent per year. The city is governed by a municipal Council, which officially extended Windhoek’s boundaries in 2011 to accommodate the vast number of people coming to the capital city and to regulate construction by developers of private residential areas outside the city’s boundaries. Aside from a severe housing cri- sis that has pushed up house prices by more than 80 percent over the past five years and pushed out low-income earners to informal, densely populated townships, Windhoek faces WSS service delivery 12 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS challenges, particularly to the informal settle- particularly in 2004 and 2009 when ephemeral ments located on the outskirts of the city. Figure 3 rivers flooded, damaging residential areas and clearly shows that the city’s high-density areas leaving many people homeless, particularly correspond to the low-income townships. It is those living in the most vulnerable, informal estimated that about 70 percent of Windhoek’s settlements. As climate is highly variable in residents have access to water supply. For those Namibia, it is difficult to detect and predict who are connected to the network, water supply climate trends, though projections indicate an is continuous and of good quality. increased frequency of hot days, heat waves, Extreme weather events have had devastat- and droughts (Republic of Namibia 2010). ing impacts on communities, infrastructure, and land in Namibia, including in Windhoek. Namibia 2.1.2 Response and IUWM experienced an unprecedented drought in 2013, Framework which left the agricultural sector extremely These climatic factors have forced the City of vulnerable and threatened food security. The Windhoek to take the lead and invest in innova- residents of Windhoek also experienced major tive methods to ensure water security. Windhoek losses from flash floods in the past decade, is probably the leading pioneer in integrating the Figure 3.  Schematic of Windhoek’s Urban Area Source: (City of Windhoek 2013). Note: High-density areas are shown in red and orange on the left; they match low-income townships on the right (in orange Chapter 2 1 and yellow). City Profiles   13 use of different water resources since the 1960s, average daily demand. The plant is operated long before the term IUWM had been coined. The and maintained under a 20-year operation and City Council of Windhoek has championed this maintenance (O&M) contract between the city approach and in 1994 approved an integrated of Windhoek and a consortium of three major water demand management program that international water treatment contractors. included policy matters, legislation, and educa- In addition, this water infrastructure was tion, as well as technical and financial measures supported by other structural and nonstructural (Lahnsteiner 2007). measures (Trepper 2012): Windhoek’s IUWM response is based on the following principles: ●● In partnership with the bulk water provider NamWater, the city recently started to arti- ●● Recognizing the value of alternative water ficially recharge the Windhoek aquifer with sources by increasing the share of aquifer a blend of surface water and recycled water. management and wastewater recycling in This enables the city to store sufficient water water supply; underground for up to two year’s water ●● Differentiating the qualities and potential demand. This also has the added benefit uses of water sources with the use of ‘fit- of reducing evaporation from the surface for-purpose’ water; reservoirs, thereby making the city more ●● Protecting, conserving, and using water resilient to long periods of drought. at its source by managing water demand ●● In 1993, a dual pipe system (total length 75 from residential and irrigation customers; km, compared with approximately 1,800 km ●● Encouraging participation by all of water network) was introduced to supply stakeholders. municipal parks, landscaping, and sports fields with semipurified sewage effluent. Windhoek has historically depended on This replaced about 6 percent of potable groundwater, which still remains a major source water supply with filtered sewage effluent for drinking water supply; however, by 1957, the ●● In 1994, the city introduced a comprehen- aquifer was overexploited. Between 1973 and sive water management strategy, which 1990, the government built three surface reser- included the following elements: (i) perma- voirs on ephemeral rivers, between 70 and 200 nent raise of block tariffs for all domestic km from Windhoek. In the early 1960s, the pos- users; (ii) mandatory covering of all private sibility of reclaiming treated sewage effluent for swimming pools, to curb evaporation; potable purposes was explored, which led to the (iii) prescribing water efficient plumbing construction and conversion of the Goreangab devices; (iv) introduction of watering bans Reclamation Plant. In 1968, the treatment plant when necessary; and (v) limiting water use was converted into the first commercial-scale for irrigation during certain hours. direct potable reclamation plant, capable of sup- ●● Furthermore, the city has introduced very plying between 10 and 15 percent of the city’s strict urban planning measures aimed at pro- daily demand. In 2002, the facility was upgraded tecting and conserving water resources first and currently it is managed under a PSP con- and foremost. Water-intensive industries tract; the New Goreangab Reclamation Plant are not promoted and not even permitted in was completed with a capacity of 21,000m³ per areas crucial for groundwater recharge. The Chapter 2 1 day, and can supply up to 35 percent of the city’s city has also proclaimed the recharge area of 14 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS the aquifer a conservation zone, thereby for- 2.2.1 Diagnostic feiting large areas of developable residential The Melbourne metropolitan area covers 7,694 land. To protect its aquifer, Windhoek plans km² (about the same area as the greater London to dramatically expand the city boundaries area, or Los Angeles) and currently has a popula- so that the town area will cover 5,000 km². tion of about 4.3 million. The Greater Melbourne This will make Windhoek the third largest area is undergoing unprecedented population city in the world by area, after Tianjin and growth, with the inner City of Melbourne (the Istambul, although the population density is business district, with a population of just over only 63 inhabitants per km². 127,000 residents) registering a growth rate of ●● A public awareness campaign around the 10.5 percent in 2012–13. This trend is expected use of recycled water was launched, which to continue over the next two decades as also targeted the education curriculum. Melbourne is set to become Australia’s most populous city by 2050 (City of Melbourne 2009). 2.1.3 Lessons Learned The Greater Melbourne area is spread over Efforts to introduce wastewater recycling for 31 municipalities and characterized by a large direct potable water supply have failed in many urban footprint and a low population density cities because of the perception that reclaim- (430 residents per km²). ing drinking water from municipal effluent is Melbourne Water, the main water authority, generally unacceptable to the public. However, manages the Greater Melbourne’s water supply the experience in Windhoek showed that with watersheds, sewerage, rivers, and major drain- persistent, well-designed, and targeted com- age systems. Residential water supply services munication to the public, this perception can are provided by three major “retail” utilities, while be changed. The people of Windhoek generally Melbourne Water acts as a “wholesaler” water take pride in the fact that they are one of only a utility: it abstracts, treats, and transfers water to few cities in the world where direct potable water retail water utilities for further sale to residential reuse is practiced. Furthermore, there is evi- customers, but remains a direct provider of sani- dence to show that this is indeed a safe practice: tation services, removing and treating all of Mel- in 40 years of recycling water for drinking water bourne’s sewage. Melbourne Water’s customers supply, the city has not had a single outbreak of include the three major retail authorities (City waterborne disease linked to this practice. West Water, South East Water, and Yarra Valley The experience of Windhoek also proves Water) as well as other water authorities, local that an IUWM framework is not incompatible councils, irrigators, and the land development with a city in a developing country context—quite industry. Melbourne Water is also responsible the opposite, since Windhoek was actually one of for protecting water resources, managing flood the first cities to apply IUWM principles, before risks, and planning for water resources sustain- the term had even been coined. ability. It is owned by the State of Victoria and governed by an independent Board of Directors in conjunction with the Minister for Water. 2.2 The City of Extreme Events: Between 1997 and 2009, the State of Victo- Melbourne, Australia ria experienced 13 consecutive years of drought (now known as the Millennium Drought), Melbourne is the capital of the state of Victoria resulting in conditions below the threshold Chapter 2 1 and the second most populous city in Australia. within which the water supply infrastructure City Profiles   15 and regulation were designed to operate (Li championed an IUWM response in the midst of 2012) (Figure 4). the Millennium Drought in Australia. Until then, With the summer of 2012–2013 (including water resource planners had not considered the hottest summer, hottest month and hottest resilience an issue, as Melbourne’s drinking day on record) having been linked to climate water supply is provided by seven reservoirs, change in Australia (Herring 2014), climate adap- mostly in protected watersheds, which had been tation is now a priority for the City of Melbourne. expected to guarantee high-quality and reliable In its 2009 Climate Change Adaptation Strategy drinking water and low-energy service thanks (City of Melbourne 2009), Melbourne identified to gravity-fed water supply. Water resources the following priority climate risks, which have planning had been based on historical trends; the potential to threaten the future of Melbourne if Melbourne needed more water, the approach and its economic attractiveness: was to increase surface water storage capacity. There was, however, little resilience to cope ●● Reduced rainfall and drought; with the impacts of climate change on the water ●● Extreme heat waves and bushfire; system and, by 2004–05, the shortage of stor- ●● Intense rainfall and wind storms; and age water due to low rainfall, exacerbated by fire ●● Sea level rise. hazards in the forested catchment areas, started posing a major threat to the sustainability of 2.2.2 Response and IUWM water supply for the city. Framework The IUWM approach chosen by Melbourne The adaptation response to these climate risks was based on the following principles: was largely driven by Melbourne Water, who ●● Recognizing the value of alternative water sources by increasing the share of storm- Figure 4.  Percentage of Melbourne water harvesting, aquifer management, Total Reservoir Storage Level, wastewater recycling, and desalination for 1993–2010 water supply; November Storage Levels ●● Differentiating the qualities and potential 100 uses of water resources to introduce 90 resilience in the water system with the use of 80 fit-for-purpose water; Viewing water storage, distribution, treat- Percentage of capacity ●● 70 60 ment, recycling, and disposal as part of the same resource management cycle; 50 ●● Protecting, conserving, and using water 40 at its sources by managing water demand 30 from residential and irrigation customers; 20 ●● Accounting for nonurban users that are 10 dependent on the same water source within 0 the wider watershed, including the needs of 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 the environment; Year ●● Encouraging participation by all Chapter 2 1 Source: (Li 2012). stakeholders. 16 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS This approach was supported by a number balancing is also possible for long-term of structural and nonstructural measures (Mel- storage. bourne Water 2013): ●● Licensing stormwater harvesting in some watersheds. There are currently 32 active ●● The construction/upgrade of two waste- stormwater licences issued by Melbourne water recycling plants in Melbourne, which Water, mainly to councils and sports clubs, supplied around 32 gigaliters of recycled totaling 1.4 megaliters of water supply. water to irrigators, the tourism industry, ●● The introduction of a planning amendment municipal and environmental services, in a pilot watershed, to the effect that devel- and to a small but growing number of opers who increase impervious surface residential developments equipped with area by more than 10 m² have to treat runoff dual piped schemes (where recycled water onsite through rainwater tanks, raingardens, is used for toilet flushing, garden watering, or passive drainage, instead of letting flows streetscape, and open space irrigation). enter the stormwater system. It has been This recycled water is delivered via so- designed as a two-year pilot to determine if called “purple pipes” to ensure adequate this type of planning control is effective in use by the public and social acceptance of reducing stormwater flows and improving the use of reclaimed water. urban waterway health. ●● The construction of a large desalination plant ●● The introduction of permanent water (with a capacity of 150 gigaliters per year) to demand management measures to encour- provide additional capacity in times of low age consumers to use less water through storage levels, for which a Build-Operate- advertising, education, pricing, and appli- Transfer (BOT) contract was awarded in ance redesign. 2009 to a consortium led by Suez. ●● The upgrade and reform of the irrigation Melbourne Water’s approach includes col- district north of Melbourne, which brought laboration with stakeholders, which extends annual savings of about 225 gigaliters— across several dimensions: made available for increased environ- mental flows and irrigation, as well as for ●● Engaging in long-term planning with stake- increased water supply storage for the city holders at the regional and municipal level to of Melbourne. All of this required a major address the needs of a growing population expansion of the water distribution system and the forecast impacts of climate change to connect Melbourne’s water system with and variability. the desalination plant and Northern irriga- ●● Collaborating with the State of Victoria and tion upgrades. retail utilities to develop regional integrated ●● Managing aquifer recharge for the capture water cycle strategies to guide investment in and use of treated stormwater or recycled water projects across Melbourne until 2050. water for later recovery and use, or for These strategies consider the role of recycled environmental benefit. Water deposits are water and stormwater harvesting to reduce made in times of surplus—commonly in potable water use and sewage discharges winter—and extraction occurs during peak and to reuse urban stormwater. Melbourne demand in summer, when traditional sup- Water also seconded an employee to work Chapter 2 1 plies struggle to meet demand. Multiyear with one of the retail utilities to facilitate City Profiles   17 integration of water management services This suggests the need to diversify the cus- at that level. tomer base for recycled water to ensure ●● Empowering communities to take local cost recovery and understand the changes ownership of IUWM measures. in customer demand, depending on the availability of water resources. 2.2.3 Lessons learned ●● Similarly, it is particularly challenging to pro- Melbourne Water has done much to report and mote the integration of all sources of water share the lessons learned from the past decade to diversify supply and fit-for-purpose water of implementing measures under an IUWM supply in times of high rainfall. framework in the city. The lessons learned so ●● Sharing the costs and benefits of inte- far from this implementation experience (Mel- grated water cycle management projects bourne Water 2013) are the following: across organizations remains challeng- ing, which has led Melbourne Water to ●● It is of key importance to be flexible and consider developing a framework to clarify outcome-focused by adopting different cost- and benefit-sharing. approaches for different areas of Mel- ●● Stormwater harvesting for domestic use bourne so as to match local drivers and had to be abandoned at some sites as it ensure the cost effectiveness of the proposed turned out not to be the most cost-efficient measures, as well as their affordability. option when the full range of costs and ben- ●● It is crucial to engage with the community efits were taken into account. throughout the process of developing and ●● Keeping pace with high demand while implementing measures under an IUWM adopting an IUWM approach in areas of high framework. demographic growth remains challenging. ●● There are risks and associated costs for the municipality or utility when shifting from input-based solutions to an outcomes- 2.3 The coastal city: based mindset under an IUWM framework, Rotterdam, the Netherlands as the increased complexity of the system requires a different skillset. In particular, the Rotterdam is the second largest city in the Neth- shift within utilities from managing assets erlands and home to Europe’s main port. The city to managing behavior required new skills of Rotterdam has a population of 620,000 and is and thus faced considerable resistance governed by a municipal council. Rotterdam is within the sector when first introduced. part of one of the densest and most populated urban areas in Europe, the Randstad, which With regard to the adoption of particular comprises the four largest Dutch cities (Amster- measures, Melbourne Water highlights the fol- dam, Rotterdam, The Hague, and Utrecht) and lowing challenges: has over 7 million residents. ●● Although Melbourne Water’s capacity to 2.3.1 Diagnostic supply recycled water is unaffected by Rotterdam is located in the delta of the rivers weather and seasons, demand remains Rhine and Meuse. Because of its location, Rot- lower in wet years and higher in dry years, terdam has had to adapt to the surrounding Chapter 2 1 as the majority of customers are irrigators. water for centuries; in fact, the city derives its 18 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS name from the river Rotte, which it had to man- Unlike Melbourne or Windhoek, high popu- age for survival. The water in Rotterdam comes lation growth is not a driver for the shift to an from four sides: from the sea, from the river that IUWM framework. The city is actually experienc- flows through Rotterdam, as well as from above ing a stagnation of population due to the attrition and below, in the form of precipitation and a high of residents of working age. To a large extent, water table. Roughly a third of the municipality of people leave because they cannot find the home Rotterdam, which covers 320 km², is made up of of their choice in their preferred residential water. environment in the city. This is an important Rotterdam has open waterways to the factor, which has made Rotterdam conscious of sea and is influenced by the tide. An ingenious the need to offer its dynamic workforce a more system of dikes and barriers has kept the city attractive environment; Rotterdam is conse- safe from sea storms and floods for centuries. quently actively seeking to improve its image by The city also has a system of canals, lakes, reinventing itself as a “water city of the future” waterways, sewers, and pumping stations run (Mackenzie 2010). Rotterdam actually submit- by Rotterdam’s Water Boards to regulate the ted its approach, incorporating water and spatial water levels in the area protected by the dikes, development for development, as an entry for which is well below sea level. The Water Boards the second International Architecture Biennale are regional government bodies charged with (under the name Rotterdam Water City 2035 ). managing water defenses and water bodies, as well as water quality and sewage treatment. A 2.3.2 Response and IUWM Water Board’s territory is usually made up of framework one or more watersheds, and generally covers The adaptation response to these risks was several municipalities. Water Boards hold elec- driven by (i) the need for Rotterdam to comply tions, levy taxes, and function independently with regional, national, and EU regulations from other government bodies. Their executive on water management (particularly with the board traditionally represents five types of EU Water Framework Directive (WFD)) and water users: local residents, industry, munici- (ii) the political will to tackle the issues of climate palities, farmers, and public parks; the chair is adaptation by incorporating them into the city’s appointed by the government for a period of six approach to urban planning. years. The city presented its overall IUWM frame- Much of Rotterdam, including the main work in its Waterplan 2 (City of Rotterdam 2007), port, lies in outer-dike areas. If the region were to which was the product of collaboration between flood, the consequences for its residents and the the Municipality of Rotterdam (the Public Works city’s economy would be disastrous. The city has Department, the Town Planning and Housing already noticed the intensification of extreme Department, and the Rotterdam Development events, which have also become more common Corporation) and the city’s Water Boards. Water- in recent decades. Rotterdam has identified the plan 2 also complements the Rotterdam City Vision following climate risks: 2030 and aims to tackle the following issues: ●● Rise in sea levels ●● The effects of climate change on the city’s ●● Change in river discharges water resources. ●● Longer hot and dry periods ●● Existing and new legislation and regulations on Chapter 2 1 ●● More intensive rainfall water quality and WRM (including the EU WFD City Profiles   19 and the National Policy on Water Management expected to increase the intensity of rainfall. It is for the 21 Century) and safety requirements st estimated that at least 80 hectares of open water for flood protection infrastructure. bodies will be needed to address this shortage. As space is limited in the city center, the These regulations require that Rotterdam’s focus is on alternative ways of retaining and water system comply with new water quality stan- harvesting rainwater, including the following dards by 2015, and that climate adaptation mea- innovative ideas: sures be in place by 2050. The implementation of the WFD is the joint responsibility of all water ●● The city is studying possible locations for management authorities in the Netherlands. The the construction of water plazas, which will IUWM approach chosen by Rotterdam focused fill up in a controlled manner during heavy on the outcome of meeting these ecological stan- rainfall and prevent the streets from flood- dards, and is based on the following principles: ing. In dry periods, these water plazas can be used as open public spaces for recreation. ●● Recognizing the value of alternative water Rainwater will remain in the water square sources and promoting the use of ‘fit-for- until it can be discharged into the nearest purpose’ water sources by separating clean water body; in periods of drought and low rainwater—for recreational and environmen- river levels, the rainwater thus stored can tal purposes—from the wastewater stream. also be used to “flush” water bodies and ●● Viewing water storage, distribution, treat- improve water quality. The Benthemplein ment, recycling, and disposal as part of the is being developed into a large, multifunc- same resource management cycle, through tional water square, which combines the innovative water storage ideas, such as water collection of rainwater with a special, public plazas and multifunctional parking lots. outdoor area. A considerable number of ●● Encouraging participation by all stake- stakeholders from the Benthemplein— holders, through extensive consultation as including colleges, a church community, well as the innovative “Paving out, Plants in” a youth theater, a sports school, and local campaign, through which the City of Rotter- residents—worked closely together to pro- dam hopes to involve its residents in climate duce the final design. change adaptation and encourage them to ●● Another innovative idea is to build multi- replace paving in their yards with plants and functional parking garages, such as the vegetation. new Museumpark garage in Rotterdam, ●● Pursuing economic efficiency, social which are equipped with an underground equity, and environmental sustainability water storage facility. Whenever heavy rains by improving the livability and environment threaten to cause the sewerage system in for all residents. the center to overflow, within 30 minutes, 10 million liters of rainwater can be stored The Waterplan 2 emphasizes the need to underneath the parking garage for further provide for rainwater collection and storage. use, including later discharge into water bod- There is currently already a shortage of about ies for ecological purposes in times of low 600,000 m³ of storage of water to cope with river flow. Rotterdam is deploying projects projected rainfall; the need for additional storage like these to increase the storage capacity Chapter 2 1 will become more pressing as climate change is of the existing sewerage system and reduce 20 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS the stress on the current sewerage system, which can lead to low river levels. The latter while also preventing wastewater from over- can favor saline seepage (as was the case flowing into open water bodies. during the dry summers of 2003 and 2006) ●● The city of Rotterdam also promotes the and drying out of the peat soil, which poses installation of green roofs, which can act as a risk to wooden pile foundations and to peat a “sponge” and retain rainwater. It is manda- dikes, and threatens the fauna and flora. tory for municipal properties, for example, ●● Limiting development on the outskirts of to have a green roof. The installation of Rotterdam to focus on improving the inner green roofs on third-party buildings, such as city area. libraries and hospitals, is also encouraged. In 2008 and 2009, these efforts resulted in the 2.3.3 Lessons learned installation of green roofs on the Municipal The implementation of IUWM measures in Rot- Archives, the Central Library, the docks, terdam is in line with the timeline of the regional, and Sophia Children’s Hospital. The City of national, and EU regulations, which aim to Rotterdam has also put in place a subsidy improve water quality by 2015 and climate-proof scheme where €30 is given for every square WRM by 2015. Rotterdam has chosen to take a meter of green roof installed on privately pragmatic approach to implementing structural owned buildings. As of 2015, Rotterdam had measures under an IUWM framework by target- over 220,000 m² of green roofs. ing specific areas, as each solution needs to ●● In 2012, work began on the construction of be tailored to the water and urban condition of the Blue Corridor—a recreational, navigable each area. This also aims to ensure economic route that provides clean water to the area, efficiency: current water and wastewater assets acts as a water storage facility, and forms an should not be replaced until their lifecycle is over. ecological link between a number of public IUWM measures should focus on the creation parks. The route will significantly improve of added value through intelligent choices, such many aspects of the local environment. The as the links to construction and development project will take 10 years to complete and is projects in the city (e.g., the Museumpark park- divided into six subprojects. The scale of the ing garage, which can be converted for water project means that it can be especially effec- storage). tive in making the water system resilient to The city of Rotterdam has estimated that long periods of drought. the total cost of these measures would add up to €400–500 million until 2030; it has Additional structural and nonstructural developed a cost-sharing framework, whereby measures included under the IUWM framework (i) accountability for a particular service or are the following: area determines the task owner, and (ii) the ●● Safety projects: reinforcing flood defenses to task owner pays for the project. The state, the protect against sea storms and expected sea province, the EU, and the private sector have all level rise (as projected for 2050 and 2100) been called upon to provide financial support and to comply with new safety regulations. as well—an approach that has worked so far. ●● Projects to improve water quality: using Rotterdam should also be credited for getting stored rainwater to manage urban water many of its residents involved in the design and quality and saline intrusion in groundwater, implementation of several of these projects Chapter 2 1 in particular during periods of droughts, (City of Rotterdam 2007 ). City Profiles   21 2.4 WB Engagement under an The rapid urbanization process in the GVMR IUWM approach: Vitória, Brazil has been largely unplanned. Urban population growth has increased pressure on the state to Vitória is the capital of the state of Espírito Santo provide adequate access to WSS services and to in Brazil’s Southeast region, and is located in a ensure the quality of water resources serving the delta on the coast; the city has a population of city, which are threatened by high levels of ero- 350,000 residents. The Greater Vitória Metro- sion and by insufficient coverage of sewage col- politan Region (GVMR, Figure 5)—comprising lection and treatment, particularly in the catch- the municipalities of Vitória, Cariacica, Fundão, ment areas upstream of the GVMR (World Bank Guarapari, Serra, Viana, and Vila Velha—holds 2014). Extensive environmental degradation over close to half of the state’s 3.5 million residents. the past 50 years has put additional stress on the quantity and quality of water resources: the 2.4.1 Diagnostic loss of forest coverage has led to the reduction in Between 2000 and 2010, the GVMR’s population groundwater recharge and increased the velocity increased rapidly, its density increasing from and quality of surface runoff. Land use patterns 620 inhabitants per km² in 2000 to 728 in 2010. upstream of the GVMR have resulted in severe The Greater Vitória Metropolitan Area and its Municipalities Figure 5.  Source: (State of Espirito Santo 2011). Chapter 2 1 Note: The purple lines represent the boundary of the GVMR. 22 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS erosion, substantially increasing sediment loads and its subordinate, the State Environmental and reducing the quality and delivery of water Institute (IAMA). SEAMA’s functions include the supplies to the residents of the city (World Bank enforcement of environmental regulations, the 2014). The quality of water resources in the inventory of pollution discharges, the licensing of watershed is of vital importance not only for new industries, and monitoring the water quality drinking water supply in the GVMR but also for of state rivers. hydroelectric power generation. The state of Espírito Santo has also expe- 2.4.2 WB engagement rienced an increased intensity and frequency The Bank’s partnership with the state of Espírito of extreme events in recent years (World Bank Santo and CESAN has been particularly strong 2014). Of a total of 376 extreme events in the since the mid-1990s. When the latest Bank- past decade, 276 were related to flash floods supported project is due to close, in 2021, the and landslides, and 69 to droughts, exacerbat- World Bank will have invested close to US$377 ing water scarcity in some of the state’s munici- million over 27 years in CESAN, which has been palities. In 2013, heavy rainfall resulted in the transformed from an underperforming public worst floods to hit Espírito Santo in 90 years, utility into one of the most advanced utilities in causing more than 20 deaths and displacing the country. 70,000 people. Since early 2015, the state has When the Bank initiated its engagement been coping with its worst drought in 40 years. with CESAN in the 1990s, urban water supply These extreme events have accentuated the coverage was already quite high in the state (at conflicts between different water users in the 87 percent), despite the rapid urbanization and watershed. relatively high urban growth rate of the previous The state water and sanitation company, decades. However, less than 11 percent of the CESAN, is a public WSS service provider, estab- urban population of the state was connected to lished in the late 1960s, with the mandate to pro- a sewerage network, and less than 9 percent of vide WSS services in the state of Espírito Santo. total collected wastewater was being treated. CESAN is mostly owned by the state of Espírito These low figures degraded the water quality of Santo and is a service provider in 52 of the raw water sources and resulted in widespread state’s 78 municipalities, including all 7 munici- coastal pollution, with significant health and GVMR. While sewerage coverage palities in the ​​ economic repercussions. The key challenges in Vitória, under the management of CESAN, CESAN faced at the time also included opera- has increased from 20 to 60 percent between tional and commercial inefficiencies, which 2004 and 2012, municipalities upstream of the resulted in financial difficulties for the service GMVR have inadequate wastewater collection provider, as well as poor governance and cus- and treatment services and, as a consequence, tomer services. environmental degradation continues to affect The Bank has been active in Espírito Santo’s the quality of the water downstream as well as water sector for the past two decades through that of coastal areas (World Bank 2014). The four successive operations (Table 1). technical agency responsible for water quality The Bank’s engagement, through the Espírito planning and control in the state of Espírito Santo Santo Water and Coastal Pollution Manage- is the Secretaria de Estado do Meio Ambiente e ment Projects “Projeto Aguas Limpas I and II” Recursos Hídricos (SEAMA, the State Secre- (columns (1) and (2) in Table 1), initially sought to Chapter 2 1 tariat for the Environment and Water Resources) achieve triple objectives in water and sanitation: City Profiles   23 World Bank Engagement with State of Espírito Santo in the Water Sector Table 1.  (1) Espírito Santo Water (2) Espírito (3)EspíritoSanto (4) Espírito and Coastal Santo Water and Biodiversity Santo Integrated Pollution Coastal Pollution and Watershed Sustainable Management Management Conservation Water Project “Projeto “Projeto Aguas and Restoration Management Project name Aguas Limpas” Limpas II” (AF) Project Project Date approved 06/28/1994 07/01/2004 11/18/2008 02/26/2014 Date closed 06/30/2003 09/30/2011 12/31/2015 04/30/2021 Project ID P006522 P087711 P094233 P130682 Project cost (Million 182.9 107.5 12 323 US$) Bank Loan (Million 112.5 36 4 225 US$) Instrument SIL SIL SIL SIL Note: AF = Additional Financing. SIL = Specific Investment Loan. Projeto Aguas Limpas = Clean Waters Project. Focus Areas of World Bank Cooperation with Espírito Santo in GMVR Table 2.  (1994–2021) (3) ES (4) ES Integrated (1) “Projeto (2) “Projeto Biodiversity Sustainable Water Aguas Aguas Limpas and Watersehd Management Limpas” II” (AF) Project Project Integration within the water sector Access to WS   Access to SS    Reliability of WSS services    Affordability of WSS services   Efficiency (incl. NRW reduction)    Financial sustainability    Environmental Sustainability of    WSS services Customer orientation  WSS sector reform  Integration with other sectors in the watershed and the city Agriculture   Land use   Environment and natural    resources Health     Note: WS = Water Supply; SS = Sanitation Services; WSS = Water Supply and Sanitation; NRW = Non-Revenue Water; Chapter 2 1 AF = Additional Financing; ES = Espírito Santo. 24 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS (i) environmental quality for residents in low- ●● Recognizing the relationships between income areas; (ii) environmental quality for surface water resources, water quality and other water; and (iii) improved efficiency of the utility. sectors, in particular land use and agriculture. The Bank’s engagement gradually moved from WSS access provision to improving the Integration of sectors and issues around environmental sustainability of services and inte- an IUWM framework was incremental in grating WRM into other related sectors. Table 2 Espírito Santo and in the GMVR, and is still a outlines the evolution of the Bank’s engagement work in progress. While the first project initially with Espírito Santo. aimed at improving traditional WSS services, in later stages of engagement the Bank focused on 2.4.3 Response and IUWM improving the environmental quality for residents framework in slums and low-income areas, and on restoring The response to these risks through the afore- the quality of surface water through wastewater mentioned projects was driven by: (i) the politi- treatment and sewerage connections through the cal window of opportunity provided at the federal Aguas Limpas projects in the GVMR. The current and state levels for improving water and environ- project (2014–21) continues with this approach in mental resources management; (ii) improved 3 municipalities upstream of the GVMR to improve governance mechanisms, which made the state water quality both locally and downstream in the and the WSS utility more accountable to the GVMR; it also aims to improve the coordination public; and (iii) extreme events, in particular between water subsectors at the metropolitan flash floods and droughts, which affected many level, particularly the management of stormwa- municipalities in the state. ter, which relies on drainage master plans devel- The IUWM approach followed by Espírito oped independently and with little intermunicipal Santo was based on the following principles: coordination and thus proves problematic when managing land use evolution and flood impacts ●● Taking into account the non-urban users on the entire metropolitan region. It is worth who are dependent on the same water noting that the GMVR is currently designing its source within the wider catchment, includ- IUWM umbrella framework document; integra- ing farmers and hydroelectric power plants; tion until now had been incremental in nature and ●● Pursuing economic efficiency, social paved the way for a wider IUWM approach under equity, and environmental sustainability the present project. through the promotion of sewerage con- Key to the Bank’s approach was to work nections in low-income areas to improve through several implementing agencies: the environmental health; WSS utility and the state’s environmental ●● Seeking to protect, conserve, and use agencies. SEAMA and its subordinate, IAMA, surface water and groundwater—both in initially did not benefit from any of the planned quality and quantity—at its source, through an innovative ‘Payment for Environmental Services’ scheme as well as through 3  Brazil passed the Federal Water Resources Law (9433 of 1997), which advocated an Integrated Water ‘upstream pollution and downstream Resources Management approach at the basin level; in impact’ decision making analyses; 2006, Espírito Santo’s ‘Vision 2025’ plan declared that the state intended to be “a national reference [...] for ●● Encouraging participation by all the consistent promotion of sustainable development” Chapter 2 1 stakeholders. (World Bank 2008). City Profiles   25 improvement activities proposed under Aguas Espírito Santo was the first state in Brazil to adopt Limpas. Under Aguas Limpas II and thereafter, an explicit PES law in 2008. The state has also however, the Bank projects targeted SEAMA established a Water Fund (Fundagua) to finance and IAMA for institutional capacity building and PES in the state, partially funded by oil royalties. strengthening through the implementation of Strengthening the demand side of good project activities. Institutional performance in governance and improving the account- the areas of WRM was improved and, as a result, ability of public services, combined with the number of environmental licenses issued by a solid communication strategy, were SEAMA/IAMA increased almost threefold (from key to the success of these measures. 599 in 2003 to 1,628 in 2011), with a peak of 2,111 Under Aguas Limpas, CESAN still suffered environmental licenses issued in 2010. SEAMA from political interference, which limited the and IAMA are now both strong champions of an impact of measures designed to improve integrated approach to WRM in Espírito Santo. its governance. Under Aguas Limpas II, the While the legislative framework for an institutional strengthening measures targeting integrated approach to WRM existed in prin- CESAN followed a different approach: making ciple, it only became implemented in practice the company accountable for results to its after the state’s environmental institutions customers, improving governance structures, had been strengthened. In 1998, State Law and enhancing the transparency of the WSS 5818 introduced the state’s first policy frame- sector overall. CESAN now reports every six work specifically meant for the management months on indicators related to the company’s of water resources. It defined the principles of operational performance and the quality of its WRM integrated with other sectors, such as WSS service provision (through its website and in and agriculture, and established the Espírito the media). Furthermore, CESAN publishes Santo Integrated Management and Monitoring its results statewide twice a year, to enhance System for Water Resources. However, the state public accountability. In addition, since 2003 of Espírito Santo only began implementing the CESAN has been tracking the level of its clients’ system after improving the institutional govern- satisfaction regarding the services it provides, ing structure and capacity of the state’s Water through annual opinion surveys in which a rep- Basin Committees and of SEAMA. resentative sample of clients are asked to rate Agricultural practices upstream of the quality of the services received. Vitória, combined with climate change and As for the environmental agency IEMA, it population growth, led to the adoption of monitors water quality and coastal pollution on innovative approaches, including Payment for a weekly basis, through a water quality sampling Environmental Services (PES) and IUWM in network in the main hydrographic basins of the the basin. Under the Espírito Santo Biodiversity state and a coastal pollution sampling network and Watershed Conservation and Restoration covering 46 beaches along the state coast (total- Project, an innovative PES approach4 provided ing 71 sampling locations). The results of this monetary incentives for farmers upstream of the analysis are posted online on a monthly basis in GVMR to adopt sustainable land use practices in two critical watersheds. The Espírito Santo Inte- 4  For more details on the Payment for Environmental grated Water Management Project scaled up this Services approach used under these two projects, please refer to Sossai et al. (2012) Florestas para a Vida Project approach through its support of the broader PES in Espírito Santo, Brazil. PES Learning Paper 2012–1, Chapter 2 1 program Reflorestar, which was launched in 2012. World Bank, Washington, DC. 26 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS a user-friendly format to inform the population While the Bank engaged at the state about water quality at each beach, as measured level, the federal government’s support for by the fecal coliform index. an integrated, basin-wide approach must not be underestimated. Brazil’s Federal National 2.4.4 Lessons learned Water Agency, ANA, demonstrated an innova- An integrated approach in a city and its basin, tive approach by offering cities grants that were with several sectoral implementing agencies, proportionate to the reduction of pollutants in can be effective at tackling urban poverty certain water bodies. This provision radically and improving WRM without falling into a changed the behavior of state and local officials: “Christmas tree” project syndrome. 5 As rather than maximizing the costs of treatment described in IEG’s evaluation of Aguas Limpas, plants for which mayors sought financing from lessons learned from earlier multisectoral urban federal authorities, mayors were incentivized projects tended to discourage integration, as to minimize pollutants reaching the water bod- “few [urban] institutions were capable of coordi- ies in order to access the pollution reduction nating many agencies and complicated problems grants. This led mayors to take an integrated such as incomplete legal instruments, disparities approach to WRM, focused on environmental in income of customers, and asymmetrical politi- outcomes rather than on standard processes cal power in governance”. The engagement of and approaches. the World Bank in Espírito Santo and with other Finally, and as noted above, the GMVR did Brazilian cities shows that integration can be not have a formal ‘umbrella framework’ for done, and that it is more effective than a sectoral IUWM (though it is designing one under the cur- approach at meeting the combined goals of rent project), but did have a broad agreement on improving WSS services and improving the qual- the definition of the problem and a collaborative ity of life in slums. The Aguas Limpas II Project, working environment that allowed complex for instance, highlighted the need to involve the technical issues to be addressed. This allowed municipal government in the provision of WSS an incremental integration of water with other services, as it has the mandate for enforcing sectors as well as with other water users in a sewerage connections. given catchment, and paved the way for further integration under the current project. 5  A ‘Christmas tree’ being the term coined for a project in which everything is included under its design such that it ends up being too unwileldly and complicated to Chapter 2 1 effectively implement. Chapter 3 Transitioning to an Integrated Urban Water Management Approach in a City I nternational and World Bank experience shows that the transition to an IUWM approach in a city is often an incremental process, usually triggered by one or several drivers, be they social (such as rapid urbanization, as in Vitória), economic (such as increased demand for a “liveable” space, as in Rotterdam), or environmental (such as water quality issues, water scarcity or climate extremes, as in Melbourne and Windhoek). In OECD countries, ageing infrastructure, extreme weather events, and national laws and regula- tions are the main drivers affecting the governance of urban water management (OECD 2015). Daniell et al. (2015) define more broadly the following factors as potential drivers for transition to an integrated approach to urban water management (see Box 4 for more examples of drivers to IUWM): ●● Population growth, demographic change, and increasing urbanization, all adding to growing demand for water supply and sanitation/wastewater treatment services, as well as changes in the hydrological cycle at the local level, as seen in Espírito Santo. ●● Increasing resource scarcity, including water (both in quantity and quality), as seen in Windhoek; ●● Technological innovation including, among others, smart grids and ICT tools; ●● New water governance approaches and systems, such as the public’s higher demand for citizen participation and transparency; ●● Changing water values and cultures, resulting in higher demand for environmentally friendly approaches, as seen in Rotterdam; ●● Climate variability and global changes, which require decision making for long-term urban invest- ments under increasing uncertainty, as seen in Melbourne; ●● Ecosystem degradation and the growing awareness of the need to protect river ecosystems in urban environments; and ●● Political ideology and development of international norms (such as the “green growth” movement). Virtually all of the world’s cities are subject to such economic, social, and environmental changes, so why is it that only a handful have started to transition to an IUWM approach to tackling them? 28 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS First of all, it is important to highlight that have the advantage of being able to ‘ leapfrog’ to there is not one single pathway to transition to more holistic and integrated urban water man- a more sustainable and integrated approach to agement by avoiding the loss of environmental urban water management. Some researchers capital that developed cities are now trying to view the transition to IUWM in cities as similar to correct, or by facing the challenges of retrofitting technological transitions, with sequential phases existing infrastructure to evolving pressures of take-off, acceleration and, eventually, stabili- (OECD 2015) (see Appendix B for more details). zation under more sustainable management In both models, sustained political leader- (Figure 7). Others (Childers (2014)) see “tip- ship on the one hand, and broad institutional and ping points” in the transition from the existing, social support on the other, are seen as critical prevailing model of “sanitary” or “sewered” city for transitioning to more integrated approaches (Appendix B) to sustainable cities, which can be on a regulatory, institutional, technological, and/ caused by a combination of the aforementioned or social level. drivers, or simply reflect deliberate decisions aimed at making cities more sustainable. In  Examples: The SWITCH Transition this model, transitions are not meant to reach a Manual gives examples of cities (Figure static point but rather to remain in a state of flux, 7) that are in the process of transitioning adaptable to changing objectives of sustainabil- to a more integrated approach of urban ity (Figure 6). In this framework, as described in water management (Accra, Ghana; Belo Wong et al. (2009), cities in developing countries Horizonte, Brazil; and Łód´z, Poland) and Possible Transition Pathway to an Integrated Approach to Urban Water Figure 6.  Management New City Exogenous Drivers Contemporary Industrial City Cities Late 1800s Sanitary City Early 1900s Deliberate Transition, Sustainable City Envisioned Crisis Development Sustainable Future States Non-Sanitary Triggers Decision City Points Decay Repair Source: (Childers 2014). Note: Solid lines represent city state transformations or state changes; dashed lines represent influence. The model accommodates the transformation of contemporary cities, in both “sanitary” and “non-sanitary” states, toward being sustainable cities, as well as new cities, that may transition to being “sanitary”, “non-sanitary” or directly toward sustainability as they develop and grow. Chapter 3 2 1 Transitioning to an Integrated Urban Water Management Approach in a City   29 one city that has failed to transition to a ●● A summary of current research on transi- more integrated approach (Alexandria, tions in urban water management can be Egypt). The failed transition was due to found in Daniell et al. (2015) and de Haan et “extremely long established and rigid al. (2015). institutions which are set up to restrict integration and innovation, [which] was The next chapter outlines a possible highlighted by two sectors preparing methodology for assessing whether to engage [two] separate visions [for the city]” in an IUWM approach, and how to develop an (SWITCH 2011). IUWM approach thereafter. This methodology is based on the experience of the cities profiled earlier and on research undertaken by the Key References: Global Water Partnership (GWP), the University ●● A clear and practical, step-by-step manual of South Florida and the International Water to accompany a city in a strategic IUWM Management Institute (IWMI) (forthcoming), planning process and to move toward Frantzetzaki et al. (2012), Closas et al. (2012), defining a transition agenda can be found in Tucci (2009), INSA Lyon (2014), and Marino Frantzeskaki et al. (2012), with reference to (2014). the case of Melbourne. Figure 7.  Four Cities Transitioning under the SWITCH Program System Change Pre-development Take-Off Acceleraton Stabilization Transition towards IUWM Łódz Belo Horizonte Lock in Belo Horizonte Alexandria Łódz Accra Accra Alexandria Time Status before SWITCH Status after SWITCH Source: (SWITCH 2011). Chapter 3 2 1 Chapter 4 Applying an IUWM Approach in a City T his chapter aims to give practical guidance on the kind of activities that may be considered when engaging with a city under an IUWM approach, and referencews supporting material and resources for Bank task teams and their city counterparts. The activities listed do not represent a checklist—not all of the activities below need to be implemented, nor do they have to be undertaken in the order suggested here. Each project’s specific approach will vary depending on local conditions and drivers, as well as on the experience of the city in applying an integrated approach, the length of the Bank’s prior engagement in the relevant sector(s), and the client’s interest and capacity. Table 3.  Possible Building Blocks of an IUWM Approach Phase Objective Steps Resources 1. Engagement Determine (i) whether  onduct a desk review of the urban and a. C Section 4.1 an IUWM approach is water sector in the city. appropriate to deal with  dentify stakeholders and analyze the b. I the city’s challenges political economy. and development goals and (ii) if there are Make the case for an integrated approach. c.  drivers and an enabling  onduct a Rapid Field Assessment of urban d. C environment for IUWM. and water challenges. 2. Diagnostic Analyze urban and  onduct technical studies, including a. C Section 4.2 water challenges economic and financial analyses of IUWM and propose a set of measures. options to solve these b. Identify nonstructural measures. challenges under an integrated approach. c. Identify structural measures. 3. Strategic (i) Validate the  nclusive planning: determining outcomes, a. I Section 4.3 planning: proposed IUWM activities, and options for an integrated developing umbrella framework; approach. an umbrella (ii) Clarify institutional  gree on institutional responsibilities and b. A framework for responsibilities and cost sharing. IUWM mechanisms for application. Design M&E framework, feedback and c.  revision mechanisms, and knowledge management. Resources Undertaking analytical work, a technical assistance (TA) program, or preparing for an investment project will require staff time, technical capacity, and funding, all of which are normally limited. Cofinancing with other donors may be a good way to secure additional funds and technical support, as well as to pave the way for a coordinated approach among donors. 32 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS If cofinancing is not possible, financial and/ ●● Financial Specialist or technical support may be available from ●● Economist development partners. It is worth exploring the ●● WRM Specialist possibility of joining forces with organizations ●● Environmental Specialist that support city climate adaptation finance, ●● DRM Specialist disaster risk management (DRM), or urban devel- ●● Governance Specialist opment initiatives—some of which are listed in ●● Energy Specialist Table 4. Pro-bono technical support may also be ●● Transport Specialist available from a number of these organizations: ●● Climate Change Specialist for instance, 100 Resilient Cities offers funding to hire a Chief Resilience Officer for the city to help develop a resilience strategy (Table 4). 4.1 Engagement The integration of the urban water cycle at the city level also needs to be reflected in the skill The objective of this first phase should be to mix of the Bank team. The following skill set may engage with urban stakeholders to answer the be useful for involvement and/or consultation in following questions together: a project applying IUWM principles, particularly including Bank staff and consultants with knowl- 1. Is an integrated approach appropriate to deal edge of the local context: with the city’s challenges and the develop- ment goals that the city has set itself? ●● Urban WSS Specialist 2. Are there drivers for adopting an IUWM ●● Urban Specialist approach? Is the social and institutional con- ●● Social/Gender Specialist text conducive to an IUWM approach? Table 4.  Potential Financial and Technical Support Sources for Bank IUWM Initiatives Potential financing sources and partners Online resources The Water Partnership Program http://water.worldbank.org/wpp The Water and Sanitation Program http://wsp.org Cities’ Alliance http://www.citiesalliance.org GFDRR https://www.gfdrr.org The Climate Adaptation Fund https://www.adaptation-fund.org The GEF (Sustainable Cities Program) http://www.thegef.org Korea Green Growth Partnership http://www.worldbank.org/en/topic/ sustainabledevelopment/brief/ korea-green-growth-partnership C40 http://www.c40.org 100 Resilient Cities http://www.100resilientcities.org ICLEI http://www.iclei.org UCLG http://www.uclg.org FMDV http://www.fmdv.net Chapter 4 3 http://bit.ly/1cpLGv0 2 The Governance Partnership Facility 1 Applying an IUWM Approach in a City   33 4.1.1 Conduct a data review of the ●● Hydrometeorological data (e.g., fore- urban and water sector in the city casts for rainfall, stream flow, and tropical Background data needs to be collected to gain a cyclones); better understanding of the city profile and the ●● Data on climate impacts (rainfall, tempera- potential urban and water issues: ture) as well as estimations of sea level rise for coastal cities. ●● Urban space and planning: urban area and population, population density and growth The data collected can be collated in GIS rate, and percentage of informal areas; layers for spatial analysis or in Excel for further ●● Economic and social activity: GDP, social analysis. distribution of income (e.g., Gini indicator for the city), watershed in which urbanization is  Example: For an illustration of urban taking place, and percentage and location of and water data that can be collected informal areas; through a desk review (and their ●● Access to basic services: water supply and sources), see the raw data (http:/ / sanitation coverage and reliability in the area data.worldbank.org/data-catalog/ of interest and the city as a whole; electricity african-cities-diagnostics) for the coverage and reliability; solid waste cover- urban water diagnostic for 31 African age and disposal; drainage/stormwater cities from Jacobsen et al. (2012) as management infrastructure and mapping well as the resulting city profiles (with of flood-prone areas; wastewater treatment maps) (http:/ /water.worldbank.org/ and environment impacts; gis_map/abi) and the companion ●● Water resources: watershed and climate volume (http:/ /documents.worldbank. data such as temperature and rainfall; org/curated/en/2012/01/17046599/ raw water supply sources, including future-water-african-cities-waste- groundwater; climate change impacts; water-diagnostic-urban-water- description of extreme events, drought, management-31-cities-africa- and frequency of floods; people affected companion-volume). Information by extreme events and water- and excreta- on climate change impacts (by related diseases; water uses and main country and/or basin) can also be environmental assets; accessed through the Climate Change ●● Urban and water institutions: urban gover- Knowledge Portal; note that all of the nance system, accountability and inclusive- climate data featured on the Climate ness; mapping of service providers (water Change Knowledge Portal (http:/ / supply, sanitation, drainage, solid waste, worldbank.org/climateportal)has been etc); watershed organizations; water user published as open data resources. groups; civil society organizations; nongov- ernmental organizations; participation and citizen feedback; 4.1.2 Identify stakeholders, ●● Previous projects that have taken place in analyze institutional framework the urban and water sector (government, and political economy Bank and external) and lessons learned; Given the multisectoral nature of IUWM, and the Chapter 4 3 2 1 ●● GIS maps of the city/watershed; localized use and effects of water, the range of 34 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS formal and informal institutions and stakehold- local water utilities, etc.), as well as the extent ers involved may be varied and remains context- 6 of public participation in these sectors. specific. Key institutions and stakeholders that ●● Assess the current mandates, priorities, and may need to be engaged can be categorized as decision-making processes for investment follows: in WSS, WRM, DRM, urban planning, solid waste management and stormwater man- ●● The national government and its represen- agement, and other relevant sectors. tation at the local level; ●● Assess the performance of existing formal ●● State/provincial/regional governments institutions and determine whether they where they have roles at the city level have the capacity to enforce existing formal ●● Municipal governments and metropolitan/ rules and coordinate activities with other city-wide governments/entities; agencies when necessary. ●● Community associations; ●● Map out informal institutions in the urban ●● Beneficiaries and communities affected by water sector and their connections and potential project measures; influence on formal institutions or agencies. ●● River basin agencies; water user organiza- ●● Assess whether the regulatory and legal tions; water services providers; framework is adequate to respond to identi- ●● Water and sanitation service providers; fied priorities. entities responsible for planning/providing ●● Map out all relevant stakeholders implicated related service such as drainage, solid waste under the local/national authorities’ and management, land use planning, etc; utilities’ water policies and practices, includ- ●● Hydro and meteorological agencies provid- ing those that are not currently implicated ing forecasting for water-related events; but might have a stake in the development ●● Private or public sector companies working of the sector. in the water and urban sector, or that are ●● Determine whether stakeholder participa- large water users/consumers (e.g., mining, tion and accountability mechanisms are part agriculture, energy, industry); of the current framework, and whether there ●● NGOs, community-based organizations; are opportunities to strengthen the demand ●● Universities and research institutes; side of governance (through mechanisms to ●● The media and general public; disseminate information to the public and ●● Other stakeholders from relevant sectors that may be implicated in an integrated approach, 6  Stakeholders here are defined as “persons or groups for instance industry, agriculture, environ- who are directly or indirectly affected by a project, as well as those who may have interests in a project and/ ment, energy, fisheries, and transport. or the ability to influence its outcome, either positively or negatively. Stakeholders may include locally affected communities or individuals and their formal and Mapping the institutions involved and their informal representatives, national or local government relationships can be a useful output of this exer- authorities, politicians, religious leaders, civil society organizations and groups with special interests, the cise and will give the team an idea of the formal academic community, or other businesses” (IFC 2007). and informal relationships between institutions: Institutions are defined as “sets of rules—in this case in the urban water sector—that entail mechanisms which govern how and by what means the rules should ●● Review the institutions involved in making be dealt with, and [...] that identify, define and regulate relationships between actors in the urban water sector” decisions with regard to water and urban (GWP, PSGS, and ICLEI (forthcoming) ‘IUWM Toolbox: Chapter 4 3 2 1 resources (river basin agencies, national or Institutional Analysis Module’). Applying an IUWM Approach in a City   35 promote the accountability of those being to: World Bank (2011) How-to Notes: regulated). Political Economy Assessments at ●● Consult stakeholders on current challenges Project and Sector Levels (available and needs, and on what has and has not at http:/ /www.gsdrc.org/docs/open/ worked in the past. pe1.pdf) as well as Manghee and Poole (2012) Approaches to Conducting  Key resources: SWITCH (2010) Political Economy Analysis in the Urban has developed a methodology Water Sector (available at http:// for institutional mapping for documents.worldbank.org/curated/ IUWM (available at http:/ /www. en/2012/09/17181109/approaches- switchurbanwater.eu/outputs/pdfs/ conducting-political-economy- WP6-2_BRN_Institutional_mapping. analysis-urban-water-sector), and ODI pdf). The Bank’s Social Analysis (2012) Political Economy Analysis for Sourcebook (available at http:/ / Operations in Water and Sanitation: siteresources.worldbank.org/INTTSR/ A Guidance Note (available at http:/ / Resources/SocialAnalysisSourcebook www.odi.org/publications/6454- FINAL2003Dec.pdf) is also a reference political-economy-analysis-operations- for conducting institutional and social water-sanitation-guidance-note). analysis as part of project design. Finally, as part of the IUWM Toolbox 4.1.3 Engage stakeholders and prepared by the GWP, ICLEI, PSGS and make the case for an integrated the World Bank (forthcoming), there approach is an institutional analysis module Sustaining the effective engagement of stake- specific to IUWM. holders is key to the implementation of IUWM This analysis should also assess the institu- strategies in a city: stakeholder engagement tional and regulatory framework for urban plan- helps build public trust by enabling more ning, WSS, and WRM, and identify whether there transparent decision making in the urban water are institutional or political economy issues that sector. Participation in decision making around might arise if there is a change to an integrated urban water governance is the key to sustained approach. The corollary—whether institutional, stakeholder engagement. The IUWM Toolkit regulatory, or political economy arrangements developed by the GWP, IWMI, PSGS and the are favorable to an IUWM approach—should also World Bank (forthcoming) includes a identify be highlighted. the following guidelines for effective stakeholder engagement in an IUWM approach:  Key resources: The Bank’s Governance Partnership Facility ●● The engagement process should be driven provides funding for governance by clear objectives, identified at the outset; and political economy analyses, these should be discussed and agreed upon including for the water sector. For a by all stakeholders. full methodology of how to conduct ●● A stakeholder/institutional analysis should a political economy analysis in the be done to ensure that the appropriate stake- Chapter 4 3 2 1 urban and water sector, you can refer holders are represented in the engagement 36 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS process; special attention should be paid to approach. This could include, for instance, ensure the inclusion of marginalized groups. workshops that facilitate South-South or North- ●● The effectiveness of the stakeholder South knowledge exchange and bring together engagement process should be monitored several cities/countries that have implemented to ensure that the process is reaching its IUWM, and key stakeholders from other cities/ identified objectives; countries that are good candidates to imple- ●● The results of the stakeholder engagement ment IUWM. This would be an efficient way to process should be documented and dissemi- stimulate clients’ thinking about, and acting on, nated to all agencies involved in the process. IUWM. One such workshop was organized by the WPP in 2012 in LAC, and more recently by Since IUWM is a way of thinking that is the African Development Bank and GWP in Côte relatively new, it may be necessary to “make the d’Ivoire (workshop summary available at http:// case” for an integrated approach with the city’s www.gwp.org/en/GWP-SouthernAfrica/GWP- relevant stakeholders. This can be done by: SA-IN-ACTION/News/AWF-GWP-hold-capacity- building-workshop-on-Integrated-Urban-Water- ●● Showcasing the economic, social, and envi- Management/). ronmental benefits of integration through At this stage, it would be important to the implementation of a project that brings engage stakeholders around potential shared together several related sectors, with the benefits or outcomes for the city as a whole, aim of demonstrating that the benefits of as well as mandates and responsibilities for an integrated approach outweigh those of action. For instance, rainwater harvesting can traditional urban water management; help produce multiple benefits by mitigating ●● Exposure to cities that have implemented, flood risk, decreasing stormwater runoff, and or are in the process of implementing, an managing water demand through the provision IUWM approach; of residential lawn or garden irrigation; but who ●● Learning alliances (e.g., twinning or net- should bear the cost of the residential rainwater works of cities); harvesting “hardware” and its maintenance, or ●● Capacity building, for instance, through the cost of promoting the use of rainwater for some of the following activities: residential gardens? Should it be the water utility, ●● Knowledge exchange between city/ which gains from a reduction in water demand? water/river basin stakeholders with Public or private property owners, who gain from other cities that have applied IUWM decreased flood risks? Or residential house- approaches; holds, who benefit from a sustainable system for ●● Knowledge exchange through dedi- irrigating their yards? cated professional networks; It will also be important to highlight the ●● Capacity-building activities (work- difference between an IUWM approach and shops, webinars, MOOCs). common practices in developing countries, for instance, the cascading reuse of wastewater for Through capacity-building activities, urban irrigation, which is not safe and increases public water stakeholders can be trained to become health risks. An IUWM approach in this context “champions” of an IUWM approach, which will should explore solutions for safe cascading use help move the process of strategic planning of wastewater (e.g., through sanitation safety Chapter 4 3 2 1 forward and ensure the sustainability of the plans). Applying an IUWM Approach in a City   37  Key resources: In addition to workshop, moderated by the Bank team (CSIRO resources from the World Bank 2012). Appendix C provides a standard ques- and from the partners listed in tionnaire that can be used when meeting with sections 1.2.3, the Bank’s South- urban water stakeholders to determine current South Knowledge Exchange Facility urban water challenges and needs. The desir- may be able to facilitate knowledge able outcomes, and related issues/causes, can exchange between cities. In addition, then be prioritized—using green for low priority, the World Bank’s 2014 webinar on yellow for medium, and red for high priority, IUWM (available at http://www. for instance. As assigning priority levels is very podcastchart.com/podcasts/world- subjective, it should be done in consultation with bank-s-open-learning-campusvideo/ stakeholders. episodes/integrated-urbanwater- management) and Monash  Example: In Can Tho, Vietnam, University’s Massive Online Open stakeholders at a participatory Course on Water for Liveable and workshop (CSIRO 2012) mapped Resilient Cities (available at https:// issues related to: (i) aquatic www.futurelearn.com/courses/ ecosystems; (ii) flooding; (iii) liveable-cities) may provide useful groundwater; (iv) water infrastructure; introductions to the topic for city (v) access to water supply and officials and other stakeholders. sanitation; and (vi) water quality. A  The IUWM Toolkit developed by GWP, Feasibility Assessment Workshop was IWMI, PSGS and the World Bank organized subsequently to enable the includes a Stakeholder Engagement stakeholders to identify key criteria for Manual, which provides guidance the chosen options to be successfully on what is required to develop and implemented. The CSIRO team was manage a stakeholder engagement then able to undertake some more process for IUWM (forthcoming). detailed feasibility studies based on this ranking of options and feasibility 4.1.4 Conduct a rapid field criteria suggested by stakeholders. assessment of urban and water  Key resources: The IUWM Toolkit challenges developed by the GWP, IWMI, PSGS The objective of the rapid field assessment is to and the World Bank (forthcoming) engage with stakeholders and refine the desk includes a Water Balance Model Tool, review analysis to gain a better understanding which performs analyses of different of the water challenges the city faces and the scenarios for the urban water system processes in place for dealing with them. under an integrated approach at three levels (household, cluster, and city). Identify and analyze urban water It is a scoping tool, which is relatively issues in consultation with easy to understand and which can stakeholders be used for engaging stakeholders The identification of issues can be done through: around water-related issues at the city (i) interviews with stakeholders and residents; level (but not for detailed technical Chapter 4 3 2 1 (ii) household surveys; and/or (iii) a participatory studies). 38 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS Therefore, it is important to validate the pro- Participatory Mapping of Figure 8.  Water-Related Issues in Can posed measures and the scope of the technical Tho, Vietnam studies with the stakeholders identified in the engagement phase, as the feasibility of some options will differ between cities and even within a given city, depending on the local conditions. A second engagement phase with decision- makers and end-users may be needed once the diagnostic phase has been completed. User-friendly Decision Support Systems (DSS) tools can help decision makers assess the benefits and issues associated with alternative approaches. Source: (CSIRO 2012).  Key Resources: An interactive, analytical decision support tool was 4.2 Diagnostic used to guide SEDAPAL, Lima’s water utility, into making long-term water Based on the data gathered and the stakeholder resources management investments consultation carried out during the engagement under uncertainty for a range of future phase, the objectives of the diagnostic phase are to: scenarios. The tool is available at https:/ /public.tableau.com/profile/ ●● Determine which urban sectors are currently david.groves1600#!/vizhome/ facing challenges or likely to face challenges SEDAPAL_PDT-2015_05_10_0/ in the future, as this could drive an IUWM SEDAPALPDT (for more information, approach; see Kalra et al. 2015). ●● Analyze links between water use in the watershed and other sectors (e.g., agri- In this context, it will be important not only culture/irrigation, industrial water, energy to look at data but also at the modus operandi of sector, pollution control, and disaster and the institutions, in particular the processes and risk management) as well as related urban practices in place for: services (solid waste management, sanita- tion, stormwater, urban planning); ●● Consider existing integrated practices, as well ●● Bridging the supply-demand gap for urban as areas of duplication that might contribute water; to poor water and urban management; ●● Increasing the resilience of the urban water ●● Assess the resilience of the urban water supply to extreme events and climate sector to future demographic change, water change; resources constraints, and climate change ●● Determining the most appropriate supply- impacts. side investments or demand management activities for urban water supply; There may be dozens of measures that ●● Managing conflicts in time of water supply Chapter 4 3 2 1 could be of relevance to a proposed outcome. shortage. Applying an IUWM Approach in a City   39 4.2.1 Technical studies, including including engineering, economic and economic and financial analysis of financial analysis, environmental and social IUWM measures analysis, risk analysis, etc. This should also The objectives of the technical studies of IUWM include an inventory of regulatory and finan- measures are the following: cial incentives, subsidies, and PPP schemes that may favor (or discourage) an integrated ●● Determine whether the proposed IUWM mea- approach. sures make economic and financial sense; ●● The feasibility of nonstructural measures ●● Assess the financial feasibility of solutions (i.e., “software”) that can be implemented identified as suitable during the diagnostic to reach the proposed outcomes, including phase (e.g., wastewater reuse, solid waste policy and institutional options, as well as management improvements, stormwater regulations, incentives for behavior change, management); urban planning control, education, and ●● Identify the resulting structural and nonstruc- capacity building. This should also include tural IUWM measures to be implemented. an inventory of regulatory and financial incentives, subsidies, and PPP schemes A number of technical studies will be required that may favor (or discourage) an integrated to inform strategic planning and implementation approach. of the proposed measures, among others: ●● An environmental and social evaluation of the impacts of the proposed measures. ●● A baseline measurement of the water and ●● An evaluation of climate change risk/ urban system, focusing on measuring prog- vulnerability/resilience assessment for ress to reach the proposed outcomes of the the proposed measures. IUWM umbrella framework, which can also be used for monitoring and evaluation (M&E).  Key Resources: the Climate Change ●● A water balance assessment to assess Decision Tree (available at https:// current water demand, availability, and openknowledge.worldbank.org/ depletion of water resources, both in terms handle/10986/22544) is a useful of water quantity and quality. The nature reference; it provides guidance for of contamination/deterioration of water assessing an urban water scheme’s quality and source and nonpoint source vulnerabilities to climate change (Ray contaminants should also be identified. and Brown 2015). Projected demand for the city for the next  Key Resources: The World Bank’s 25–50 years (depending on the timescale Global Knowledge Silo Breaker in Solid chosen for the IUWM strategic plan) should Waste Management has put together be based on a number of scenarios to be a useful compendium of resources validated with stakeholders, and take into for managing solid waste in an urban account the impact of climate change on context, and sharing experiences and water resources and uncertainty associated resources to learn from waste projects with each scenario/proposal. across the World Bank Group. This ●● The feasibility of structural measures (i.e., compendium includes key experts, “hardware”) that can be implemented by project examples, and case studies Chapter 4 3 2 1 the city to reach the proposed outcomes, and key documents; it can be found 40 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS at http://iteam.worldbank.org/ ●● At the city level, under the IUWM umbrella connectlcr/lcrsd/LCSUW/URBAN/ framework planning process: this will allow swm/KeyTopics/Drainage_Resources. decision makers to understand the economic aspx (accessible only through the Bank costs and benefits of an integrated approach intranet). compared with business as usual, and get a sense of the timeline and level of funding Most of the above technical studies are not needed to reach the proposed objectives; very different from the type of studies carried out ●● At the project level, to determine whether for a conventional urban and/or water project. the project is actually economically viable. However, the economic and financial analyses of IUWM measures deserve particular attention.  Example: For the economic analysis Economic viability refers to the need to gen- carried out in Nairobi, Kenya, the erate a net benefit to society once all economic, economic costs of conventional water social, and environmental costs and benefits supply for the period leading up to have been factored in. The identification of poten- 2035 were compared with the costs tial benefits for each proposed IUWM option as of providing water under an IUWM part of the framework requires an understanding framework (Figure 9). The economic of all capital and operational expenditures and analysis of the options proposed under their links, as well as a complete assessment of the IUWM approach was carried out current and future alternatives to WRM. These for high, medium, and low scenarios economic assessments will allow the decision of urban water demand for the period makers to form an idea of the financial capacity leading up to 2035. It highlighted of institutions and the benefits to be derived from the fact that some options—such implementing the proposed activities, as well as as water demand management and the timeline and funds needed. leakage management—could be more affordable than the development  Key resources: For an example of an of conventional water resources economic assessment of an IUWM (such as surface water storage umbrella framework developed in and transportation). However, the Baku, Azerbaijan, refer to Scandizzio variation in the range of the costs of and Abbasov (2012). development of stormwater harvesting, greywater reuse, and private boreholes Cost-benefit analyses can help determine was much higher, highlighting the need the economic viability of IUWM measures by to look at these options on a case-by- quantifying all of the costs and benefits of a case basis and at different scales. The project in monetary terms, including items for methodology used in this evaluation is which the market does not provide a satisfac- outlined in Jacobsen et al. (2012) and tory measure of economic value. Cost-benefit Eckart et al. (2012). analyses should consider a number of options for development, including the “no project” option Financial viability addresses both access to and the option of approaching the challenges in a finance and the ability of a project to generate conventional, non-integrated, way. They should financial returns (if relevant). As is the case for Chapter 4 3 2 1 be done at two levels: conventional urban water projects, applying Applying an IUWM Approach in a City   41 Economic Analysis of IUWM and Conventional Options for Water Supply in Figure 9.  Nairobi, Kenya 1.7 2.5 2.3 1.2 1.0 0.8 Unit cost (US$/m3) 0.6 Greywater reuse (cluster) Water demand 0.4 management Private boreholes 0.2 Leakage Conventional Stormwater Existing water resources management water resources (new) (cluster) 0 20 60 100 140 180 220 260 300 340 380 420 460 500 540 580 620 660 700 740 780 820 860 900 940 980 1,020 1,060 1,100 1,140 1,180 1,220 Potential source (103 m3 /d) Source: (Jacobsen 2012). Note: The range of unit costs (vertical lines) are based on the technologies and approaches used. For example, unit costs for water demand management depend on the quality and type of water saving devices; leakage management costs depend on the cost of water production and leakage control strategies; greywater costs depend on the treatment choices; stormwater costs depend on whether structural and/or nonstructural measures are applied; rainwater harvesting costs depend on whether simple storage tanks or pumping to elevated reservoirs are required. For cost assumptions and calculations, see Eckart et al, 2012. (10³ m³ /d = 1,000 cubic meters per day). an IUWM framework requires significant levels and private stakeholders. Moreover, it will not of funding for both capital and O&M costs. For always be those stakeholders who benefit from countries with a limited ability to invest in IUWM a scheme who will pay for it. Particular attention structural measures, strong institutions and needs to be paid to institutional responsibilities governance are needed to raise the necessary and cost sharing in the design of financial models funds, from the public or the private sector, for IUWM schemes (Section 4.3.2). Innovative as well as from donors where appropriate. financing models have emerged recently that Similarly to conventional urban water projects, could be applied in cities of developing countries, financially attractive schemes may be imple- provided the right enabling environment is in mented in partnership with the private sector, place (Box 5). while schemes that are not financially viable or considered too risky by the private sector may 4.2.2 Structural measures need to be undertaken by the public sector and An IUWM approach may call for nontraditional financed through a sustainable combination measures to reach the proposed environ- of the three “Ts” (taxes, tariffs, and transfers) ment and social outcomes the city aspires (OECD 2009). to. Table 5 outlines some of the differences The particularity of IUWM is that financing in structural (“hardware”) and nonstructural Chapter 4 3 2 1 needs and returns are shared among public (“software”) measures between a conventional 42 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS  C Water’s Clean Rivers Project: encouraging private Box 5. ■ D adoption of natural systems for improved water quality Driven by the need to comply with regulatory demands for improved water quality, DC Water (the water and sanitation utility of the District of Columbia in the United States) has been implementing the Clean Rivers Project since 2007. This US$2.6 billion project aims to decrease the volume of combined sewers overflow (CSO) by 96 percent for all of DC’s waterways—the Anacostia and Potomac rivers as well as Rock Creek. In May 2015, DC Water announced an agreement with the District of Columbia, the Environment Protection Agency, and the Department of Justice, which modifies the terms of the project to include the use of some IUWM options instead of only constructing underground tunnel systems to control CSO. These IUWM options include natural systems such as green roofs, porous pavements, and rain gardens, to treat stormwater prior to discharge, as well as rainwater harvesting. The Project has been given a 7-year extension to allow for the additional time needed to encourage the construction of green infrastructure and is now expected to be completed by 2032. The success of DC Water’s amended Clean Rivers Project rests on convincing both private and public land owners to construct green roofs, porous pavements, and rain gardens, and encourage the uptake of rain barrels. DC Water’s tactics includes partnering with nonprofit groups to raise awareness and increase uptake of these systems, as well as coordinating with the District of Columbia—the primary public landowner in the area—and particularly its environmental regulator, the District Department of the Environment (DDOE). Since 2013, and as part of the Mayor’s Sustainable DC Plan, DDOE has been running the RiverSmart Program, which provides financial incentives to help District land owners install the green infrastructure DC Water is planning for, such as rain barrels, green roofs, rain gardens, and permeable pavements. Financial support from DDOE includes rebates and subsidies for construction of green infrastructure, as well as discounts on environmental pollutions fees. A number of targeted areas of importance to the watershed are given additional incentives to encourage private uptake of stormwater management. Furthermore, DDOE regulation requires new development and large renovations of properties in the District to install stormwater pollution control measures. DC Water is also running an extension of the DDOE’s RiverSmart program, by providing their customers with a discount on the impervious area charge if they have taken stormwater management measures. In 2013, DDOE also launched an innovative Stormwater Retention Credit Trade, which is the first of its kind in the United States. Private property owners can generate Stormwater Retention Credits (certified by DDOE) by installing green infrastructure that captures and retains stormwater runoff; these Credits can then be sold in an open market to buyers who can use them to meet DC’s regulatory requirements for retaining stormwater for new building or major renovations. Source: ddoe.dc.gov (DC Water 2015). approach to urban water management and an demand, improve water quality, and improve IUWM approach. In practice, structural and the sustainability of urban water management. nonstructural measures are often used in com- They include decentralized WSS systems, rain- bination under an IUWM approach. Prioritization water harvesting, wastewater and stormwater of outcomes, as part of the strategic planning recycling, and natural systems such as wetlands. process, will determine the type of interventions Chapter 2 outlines some of the structural that should be investigated. measures used under an IUWM approach in Structural measures include any type of Rotterdam, Windhoek and Melbourne, and high- Chapter 4 3 2 1 infrastructure that is considered to meet water lights the fact that each measure implemented Applying an IUWM Approach in a City   43 Table 5.  Differences Between Conventional and IUWM Approaches Conventional approach IUWM approach Infrastructure • Water supply infrastructure • Planning for all urban water components planning and developed first, followed by carried out simultaneously. development sewerage and drainage. • Synergies between interactions are • Further action aims to rectify extracted and used for better planning. damage caused by earlier • Both centralized and decentralized infrastructure development. systems for water supply and wastewater • Centralized systems for management are considered. water supply and wastewater management are generally preferred. Choice of • Infrastructure is made of • Infrastructure can also be green, including infrastructure concrete, metal, or plastic. soils, vegetation, and other natural systems. Water sources • Water is supplied from traditional • Water is supplied not only from traditional sources such as rivers, lakes, sources but also from alternatives such as and aquifers. rainwater harvesting, aquifer storage, and stormwater and wastewater reuse. Water supply • Complex and expensive • New water distribution systems are treatment and distribution designed based on zoning principles, technology is preferred, despite leading to a more efficient system. being prone to inefficiency. • Water resources are protected from • Deteriorating water quality is pollution (including from industrial and addressed by investments in agricultural sources) through upstream treatment technology. watershed management. • Increasing demand is met by • Increasing demand is managed through developing new resources and water efficiency measures, effective expanding the existing treatment leakage control, and pricing tools. and distribution infrastructure. Sanitation • Centralized wastewater • Wastewater and sludge are managed treatment is the preferred through centralized and decentralized solution, despite the high costs approaches (such as condominial of construction and operation. sewerage, decentralized wastewater treatment plants, and septic tanks), thereby enabling separation, treatment, and disposal of the different types of waste streams and reducing the wastewater load. • Wastewater and sludge are used as resources rather than treated as waste, with options for nutrient and energy recovery. Urban drainage • Urban drainage is planned based • Urban drainage is planned based on and solid waste solely on the objective of flood flood protection, potential collection management protection. and reuse of stormwater, recharge of • Solid waste is to be collected and groundwater, and the enhancement of disposed in a landfill. urban biodiversity. • Natural systems such as wetlands, rain gardens, or green roofs are used to treat stormwater before discharge to the receiving water body. • Solid waste management considers the 3R principles (reduce, reuse, recycle). Chapter 4 3 2 1 (continued on next page) 44 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS Table 5.  Differences Between Conventional and IUWM Approaches (continued) Conventional approach IUWM approach Institutional • Different urban water • Institutional integration is actively arrangements components are planned promoted through coordinated independently by the different management of different urban water responsible institutions in a silo components. structure. • All relevant stakeholders are represented in urban water decision-making processes. • Decentralized governance structures create an enabling environment for private sector involvement. • Large water consumers and polluters become part of the solution. Source: Authors, adapted from (Eckart 2012). was dependent on the city context as well as the Greenfield investments may also be finan- specific area within the city. For instance, nor- cially more attractive than retrofitting of existing mally some areas of the city experience higher infrastructure. For instance, in Rotterdam, the population growth than others (e.g., the suburbs) choice was made to design new infrastructure and may be suited to new, decentralized WSS under an integrated approach, on a case-by- services while others are already well-served by case basis, but not to retrofit existing assets centralized systems. to ensure economic efficiency: current water and wastewater assets should not be replaced  Example: In Melbourne, using recycled until their life cycle is over, as such an approach water to supply water to fast-growing would generally not be economically optimal. In suburbs turned out to be more Melbourne, however, new assets are being retro- affordable than extending centralized fitted onto existing and new residential develop- water services to these areas; this ments (such as the purple pipes for “recycled was assessed by taking a life cycle water”) but, in this case, economic efficiency is approach that included not only the assessed on an area-by-area basis. traditional costs of supplying water but Unlike conventional approaches, IUWM rec- also environmental externalities (e.g., ognizes the important role of green infrastruc- energy costs and resulting carbon ture in addressing a city’s water needs, which and greenhouses gas emissions as can provide a broad range of ecosystem services well as nutrients discharged into such as preserving biodiversity, decreasing flood the environment from wastewater risks, improving water quality, and mitigating the effluent). This may, however, not have urban heat effect. This can be done through the applied to other areas in the center creation of new green infrastructure (e.g., the of the city, where centralized water green roofs of Rotterdam or the RiverSmart pro- services could have been supplied gram in Washington, DC) or through restoring at a lower cost. This underscores the riparian ecosystems. need to look at the local conditions within the city to determine the most  Key Resources: The IUWM Toolkit Chapter 4 3 2 1 applicable IUWM options. developed by GWP, IWMI, PSGS and Applying an IUWM Approach in a City   45 the World Bank includes a Technology ●● Education and capacity building; Catalogue (forthcoming), which ●● Public disclosure, legal actions, and formal provides a useful compendium of negotiation. technology options available under an IUWM approach, as well as a All of the above nonstructural measures Technology Selection Tool that can be can be used very effectively in combination with used to inform stakeholders on the structural measures or on their own, to reach potential technologies available to specific social, environmental, or economic manage urban water supply. outcomes. For instance, land use planning best  Training: In the United States, DC serves IUWM purposes when municipal/city Water and the WEF have launched governance structures have the authority and the development of a national the will to use them, as well the capacity and Green Infrastructure Certification budget to enforce them. These measures must Program, which will look at how to be above political interference and can take the install, maintain, and inspect green following forms: infrastructure systems (to start in early 2017). This will include rain ●● Development zoning and prohibition of gardens, pervious pavements, development in water-sensitive areas; rainwater harvesting, and green ●● Investment and use of weather and climate roofs. In the United Kingdom, data to best determine flood risks; HR Wallingford offers courses in ●● Flood protection infrastructure, including Sustainable Drainage Systems drainage channels; and (SuDs), which cover many aspects of ●● Green corridors for flood protection, for green infrastructure. instance, wetlands, water-sensitive gardens, and river flood plains. 4.2.3 Nonstructural measures Nonstructural measures are designed to man-  Example: Melbourne and Windhoek age behaviors, examples of which include: (Chapter 2) both have strong municipal governance and institutional structures, ●● Regulations for water use to manage water which has enabled Melbourne to demand, or command and control legisla- veto development in areas of flood tion (such as the Water Framework Directive risks, while Windhoek has widened in the case of Rotterdam); its municipal territory to prevent ●● Prices or taxes (e.g., the “polluter pays” prin- development on areas where aquifer ciple on activities that affect water quality); recharge takes place. ●● Environmental levies (e.g., on water abstraction); ●● Economic and market-based instruments 4.3 Strategic Planning: (e.g., appliance rebates on rainwater har- Developing an Umbrella vesting systems, or Payment for Ecosystem Framework for IUWM in the City Services schemes as used in Espírito Santo); ●● Urban planning control and land use plan- The objectives of the strategic planning process Chapter 4 3 2 1 ning (e.g., to manage flood risk) are to: 46 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS ●● Validate with stakeholders the proposed informal platform inclusive of all stakeholders IUWM umbrella framework and options con- should be set up for consultation, reporting, and sidered and establish a formal or informal feedback. The strategic planning process needs platform for further engagement; to be technically advised by the Bank team dur- ●● Clarify institutional responsibilities for ing the design phase so that stakeholders can implementation of the proposed solutions make informed decisions to reach the proposed going forward; outcomes. The process should be inclusive and ●● Ensure there are mechanisms in place for reflect the diversity of stakeholders identified managing and sharing data across sectors during the engagement phase. and institutions; ●● Develop and apply an appropriate M&E  Key resource: SWITCH (2010) framework for the strategic plan. Facilitating Conflict Management and Decision Making in Integrated Urban 4.3.1 Inclusive planning: Water Management: A Resource and determining outcomes, activities, Training Manual (available at http:// and options for an integrated www.switchurbanwater.eu/outputs/ approach pdfs/W6-1_GEN_MAN_D6.1.4_ Assuming that stakeholders have decided to Conflict_resolution_-_Training_manual. move forward with an IUWM approach, and pdf). based on the prioritization of issues and desir- able outcomes identified at the engagement and Stakeholders may also have to set criteria diagnostic stage (e.g., aiming to improve the envi- for prioritizing the different activities needed to ronment, social, livability, or health in the city), reach the proposed outcomes for the city under a vision for the long-term integration of urban an integrated approach. water management in the city can be developed. The IUWM umbrella framework should  Example: In Rotterdam, the following include the following: criteria were used to prioritize projects under the IUWM umbrella framework: ●● Agreement on a set of proposed outcomes (i) projects that were already underway for the city; and could be readily integrated; ●● Milestones for implementation of activities (ii) projects that contributed to the to reach the proposed outcomes; realization of multiple outcomes (e.g., ●● Mechanisms for review, monitoring, and water quantity and water quality); (iii) incorporating residents’ feedback; and whether the project was a question ●● Capacity for revision and amendment based of “now or never”; and (iv) whether on implementation experience. it was a demonstration project that could guide future investments For this process to succeed, it is important (City of Rotterdam 2007). As a that stakeholders have ownership of the devel- result, a phased implementation opment of the proposed measures and outputs. plan—specifying clear roles for each This may require a convening authority (a objective, as well as individual and so-called “city champion”) to chair the process joint objectives across institutions Chapter 4 3 2 1 of developing an IUWM framework. A formal or to ensure sustained cross-sectoral Applying an IUWM Approach in a City   47 collaboration—was developed to guide actually furthers the overall goals for the city’s the first two phases of implementation urban development and for the management of (2007–12 and 2012–15). The city also its water resources. These benefits can translate set up a structure to facilitate and into better outcomes for the urban or the water sustain cross-sectoral collaboration: system, and/or can result in reduced costs for a project office, a steering committee, the package of measures to achieve the expected workgroups around specific outcomes, outcomes. and regular management meetings. There is no correct answer for determin- ing institutional responsibilities for applying During this phase, it is important to ensure an IUWM approach and for sharing costs: the that institutions have the capacity to manage and optimum answer will depend on local context, share data across and within sectors; this is par- the actors, and the outcomes of the IUWM ticularly critical for the success of flood or drought framework. Indeed, the costs and effectiveness management activities, where information needs of interventions vary not only between cities to be shared in a timely and usable manner. but also within a city. Once it is determined and Experience has shown that most cities lack the agreed by all partners that the overall costs for technical capacity for basic information and data IUWM measures are lower—or the benefits for management, which in turn limits their ability to the system are higher—than traditional water apply such information in multisectoral planning management practices, an agreement must be and operational decision-making. The key here is reached on cost sharing. Several principles for moving past the idea that such planning should be cost sharing can be applied: done only once every 10 to 20 years but, instead, offering an approach where the process becomes ●● The “polluter pays” principle; a dynamic tool to help a city manage its resources ●● The stakeholders who benefit pay a larger and provide public services. share; ●● The stakeholder who is responsible for 4.3.2 Agree on institutional implementing the proposed option pays; responsibilities and cost sharing ●● Cost-sharing follows the regular legal Clarifying and agreeing on institutional responsibilities of each partner. responsibilities is perhaps the biggest chal- lenge of designing and implementing an IUWM Cost-sharing mechanisms can also be used framework. Indeed, an integrated approach to manage behavior within the water system. presupposes that an institution may be man- For instance, the introduction of a groundwater dated for an activity that actually has an impact abstraction tax can lead to higher demand for on another sector altogether. For instance, the water provided by utilities or increased changes in land use practices can increase use of reclaimed water. However, groundwater water quality and have multiple benefits for regulation may be the responsibility of a different residential and industrial water use, but who institution than the utility, which is why a com- should implement, pay for and monitor these mon agreement about the overall objectives of practices? the IUWM umbrella framework is of paramount The initial step in assigning institutional importance. roles and responsibilities is for all stakeholders Nonstructural measures (Section 4.2.2), Chapter 4 3 2 1 to agree that the IUWM umbrella framework including pricing instruments and financial 48 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS incentives like rebates, subsidies, discounts, environmental, financial, economic, and audits, and seasonal and zonal pricing, can also social aspects of the urban environment; be used to shift some of the costs of higher levels ●● Capture knowledge from project implemen- of consumption or quality to users. Schemes tation for management and dissemination. under the “polluter pays” principle, in which charges relate to the effluent generated, can After ensuring that the city’s senior manage- improve the cost effectiveness of treatment and ment is committed to the design and implemen- reuse, and even fund the capital and/or opera- tation of M&E for the IUWM umbrella framework, tional expenditure of new infrastructure. it may be useful to go through the following IUWM therefore requires governing bodies questions to help guide the development of the to adhere to adequate pricing mechanisms if M&E framework (SWITCH 2010): costs are to be shared with other institutions. Tariffs for water supply or a pricing mecha- ●● What will the M&E system be used for: for nism for wastewater need to be appropriate reporting, implementing and/or planning? If such that they can recover costs sustainably reporting is the purpose, will the indicators to fund schemes proposed under an IUWM be aggregated at the subnational, national, framework. or international level? ●● What are the outcomes that have been for-  Example: In Rotterdam, it was mulated in the strategic planning process? decided that accountability for a ●● What is the level of effort that the city is will- particular outcome should determine ing and able to commit to, in terms of staff who the task owner should be—and time and budget, to design and update the who should pay. For city-wide studies, M&E framework? which benefited all stakeholders ●● What is the capacity of the city to collect equally, the allocation of expenditure and analyze primary or secondary data, to was partially borne by the city (40 maintain databases, and to communicate percent) and by the three Water the results to target audiences? Boards (25, 25, and 10 percent respectively) (City of Rotterdam Each proposed outcome should come 2007). with a set of indicators with which to monitor its progress. The stakeholders’ first task is therefore 4.3.3 M&E framework and to translate the proposed outcomes of the IUWM knowledge management umbrella framework into indicators. For each pro- posed outcome, stakeholders can derive a long M&E framework wish-list of indicators. Models have been used to An appropriate M&E framework should be in simplify the complex interactions between fac- place for the IUWM umbrella framework to tors, such as the DPSIR (Driver/Pressure/State/ facilitate its implementation and provide mecha- Impact/ Response) framework, which was pro- nisms for review and progress monitoring. Its posed by the European Environment Agency in objectives are to: 1998 to monitor and evaluate environmental poli- cies in the EU. For instance, if one of the proposed ●● Establish a rigorous M&E framework to outcomes is the improvement of water resources Chapter 4 3 2 1 assess an intervention’s impact on the quality, the following indicators could be derived: Applying an IUWM Approach in a City   49 ●● Drivers: Indicator related to socio-economic scenarios for the city, as well as regular forces, economic activities, etc (e.g. demo- milestones to reflect and adapt the graphic growth); transition strategy as needed. A ●● Pressure: Stress that human activities bring critical path to transition was thereby onto the environment (e.g. % wastewater developed, specifying short-term and collected but not treated); medium-term objectives for Melbourne ●● State: Environmental conditions (e.g. water (Ferguson 2012). quality indicators); ●● Impact: Effects caused by the degradation “Hard” data (i.e., published and available of water quality (environmental impacts, to all stakeholders) should be used as much health impacts, etc); as possible; “soft” data (i.e., indirect evidence ●● Response: Society’s response to the situa- or the informed opinion of experts) should be tion (e.g. regulation, master plan to improve avoided and only used as a last resort. Indicators water quality, etc). can then be used to present to decision makers the state of, and pressures on, the urban water Based on the long wish-list of indicators and system of the past and the system’s evolution the city’s level of capacity, it would next be helpful leading to the present. The indicators will show to next do a “reality check” in order to identify the impact of IUWM measures and whether those indicators that will be available, understand- those measures are fully, or only partly, success- able to the public and updatable in practice. Doing ful. The target audience and purpose of the M&E so will help narrow down the list of indicators to an framework will also determine the frequency at implementable M&E framework. The main ques- which the indicators must be reported on. tions that should drive this process are: It may also be necessary to perform a base- line assessment for those indicators for which ●● Are the relevant institutions and stakehold- no data are available at the time of the IUWM ers able and willing to supply the data for the umbrella framework design. indicators at the desired frequency? ●● Is it possible to carry out additional data  Example: in Rotterdam, one of collection and maintain that activity over the the main objectives of the IUWM years? umbrella framework is to comply with ●● Are the reliability and accuracy of the data for the requirements of the EU Water a proposed indicator adequate? (Decision Framework Directive in terms of water makers need to be aware of uncertainties quality. A baseline assessment of the associated with the proposed indicators.) city’s water system was therefore ●● Does the institution in charge have the performed in 2003, focusing on capacity to manage the data and share them the water quality. The analysis in a usable and timely manner with others? showed that the water was rich in nutrients, contaminated by heavy  Example: Stakeholders in Melbourne metals, and that the condition of the designed an iterative and flexible flora and fauna was substandard. M&E system for transition to a Water The second comprehensive water Sensitive City, with objectives and quality and ecological monitoring Chapter 4 3 2 1 indicators for a range of development exercise was conducted in 2010, with 50 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS a 2015 deadline set by the EU WFD city (including failures and lessons learned) are for improvement of the ecological shared beyond the city, to inform similar initia- conditions of water bodies. As part tives elsewhere. of the IUWM umbrella framework, Having common and standard metrics a progress report is made public for urban areas and urban water initiatives is every year, recording progress on extremely important and helpful in the long run the implementation of the umbrella for cities and can enable benchmarking and framework. Progress is measured knowledge sharing between cities. Established both in physical terms (project platforms for urban service indicators can implementation) and in financial terms, enable comparison and aggregation of specific and makes the link with progress on indicators for benchmarking and/or reporting at the environmental indicators (e.g. the national and international level. for water quality) chosen to monitor outcomes.  Key resources: Benchmarking tools with indicators that may be used for knowledge management and M&E of Knowledge management urban water systems include IB-NET As IUWM is a relatively new concept, it is crucial (http://www.ib-net.org) and the Global to ensure knowledge amassed during the design City Indicators Facility (http://www. and implementation of an IUWM program in a cityindicators.org). Chapter 4 3 2 1 References AWSB. 2012. “Feasibility Study for Developing DC Water. 2015. “Long-Term Control Plan Modifi- New Water Sources for Nairobi and Satellite cation for Green Infrastructure.” Washington Towns.” DC. Bahri. 2012. Integrated Urban Water Manage- Eckart. 2012. Integrated Urban Water Manage- ment. Stockholm: Global Water Partnership, ment for Nairobi, Kenya. Washington, DC: Childers, D. L., et al. 2014. “Advancing Urban World Bank. 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Processes.” ———. “Latin America: Integrated Ur- ———. 2010. “Facilitating Conflict Management ban Water Management Initiative.” and Decision Making in IUWM: A Resources 2012. http://siteresources.worldbank. and Training Manual.” org /INTL AC/Resources/257803- ———. 2011. “SWITCH Transition Manual.” 1351801841279/2BrochureIUWMENG.pdf Trepper. 2012. “Presentation: Integrated Water (accessed 02 10, 2015). Management in Windhoek, Namibia.” Africi- ———. 2014. “Project Appraisal Document for the ties conference. December. Espírito Santo Integrated Sustainable Water Tucci, Carlos. 2009. “Integrated Urban Water Management Project.” World Bank, Wash- Management in Large Cities: A Practical ington, DC. Tool for Assessing Key Water Management ———. 2007. Project Performance Assessment Issues in the Large Cities of the Developing Report: Brazil Water Quality and Pollution World.” Control Project. Washington, DC: World UN Habitat. 2011. The State of the World’s Cities Bank. 2010/2011. UN Habitat. 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Chapter 4 3 2 1 Appendix A Global Experience and Resources Related to IUWM Global experience International and WB initiatives Online Resources The Blue Water, Green Cities initiative worldbank.org/laciuwm The WPP Cross-regional IUWM initiative water.worldbank.org/iuwm The EU-SWITCH project switchurbanwater.eu CRC for Water Sensitive Cities watersensitivecities.org.au OMEGA — Méthodologie pour la Gestion Integrée omega-anrvillesdurables.org des Eaux Urbaines (in French) An early champion of the IUWM approach was the EU-funded SWITCH project, which was implemented between 2006 and 2011 and researched IUWM approaches around several interrelated themes: water supply, stormwater, wastewater, planning for the future, engaging stakeholders, and decision-support tools. The research project engaged with 12 cities around the world, by empowering them to develop a vision for water in their city 30 to 50 years into the future, and to think of an integrated approach that might benefit them. These cities included Accra (Ghana), Lima (Peru), Bogota and Cali (Colombia), Alexandria (Egypt), Tel Aviv (Isreal), Łódź (Poland), Beijing (China), Belo Horizonte (Brazil), Birmingham (UK), Hamburg (Germany) and Zaragoza (Spain). A useful resource is the SWITCH Train- ing Kit, which contains several modules that can be used to organize a workshop and explore IUWM options. The SWITCH project also documented case studies of cities that had made progress in transi- tioning to various stages of sustainable urban water management, including Berlin, Seoul, and London.  All documentation from the SWITCH project, including diagnostics of urban and water challenges for the above cities, training resources, case studies, and IUWM knowledge base can be found at http://www.switchurbanwater.eu/index.php.  The SWITCH Training Kit can be accessed at http:/ /www.switchtraining.eu/trainer- materials/ and includes the following modules: (1) Strategic Planning – Preparing for the Future; (2) Stakeholders – Involving All the Players; (3) Water Supply – Exploring the Options; (4) Stormwater – Exploring the Options; (5) Wastewater – Exploring the Options; and (6) Decision-Support Tools – Choosing a Sustainable Path. The tangible outcomes for the cities involved in the SWITCH project are quite difficult to assess, as the processes and outcomes related to the transition to an IUWM mindset varied between the 56 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS cities approached, depending on the urban- and (both at city and national level) limited the water-related challenges and the drivers for the cities’ ability to engage with the technical transition. organizations and provide leadership or In Belo Horizonte (Brazil), SWITCH focused coordination. on the development and uptake of more natural ●● It was difficult to agree on common, city- and environmentally friendly approaches to wide M&E indicators for integrated urban urban drainage to minimize flooding risks while water management, relying instead on a also improving river corridor habitats. Out- collection of indicators for various technical comes included commitment by the Municipal areas. Parks Foundation to scale up rainwater har- ●● The short- to medium-term focus of water vesting and a start by the city’s participatory management organizations, in accordance budgeting committees on implementation with political and funding cycles and priori- of alternative and more sustainable drainage ties, made it difficult for the cities to plan for solutions. a 30–50 year timescale; In Alexandria (Egypt), by contrast, activi- ●● Water organizations generally had stronger ties focused on developing an integrated urban expertise in design and construction using water management plan and demonstrating conventional technologies than in holistic how urban slum communities could be served water management and planning and in with the existing water supply and be given unfamiliar technologies such as sustainable capacity to manage their sanitation system urban drainage, natural treatment systems, (Howe 2012). and demand management; However, not much information is available ●● It was difficult to get groups like energy pro- on what has happened in these cities since the viders, developers, and architects involved end of the SWITCH project in 2011, and whether in the process and, as a result, these issues this introduction to IUWM paved the ground were generally represented by urban plan- for implementation of IUWM frameworks. It is ning organizations. encouraging to see that the SWITCH Training Module has since been adapted for more cities, in Another pioneer institution in the field of particular in India, and is currently being applied IUWM is the Cooperative Research Centre (CRC) in Jaisalmer and Kishangarh, in Rajasthan and for Water Sensitive Cities, based in Monash Solapur States, and Ichalkaranji in Maharashtra University, Australia. The organization groups a State (ICLEI 2014). number of lead thinkers and academics around The lessons learned from the SWITCH expe- the transition to Water Sensitive Cities. Their rience include the following (Howe 2012): research is based on the Australian experience of dealing with water resources scarcity in urban ●● The large number of organizations involved areas, and is organized around four aspects of in the urban water sector in most cities was the transition to IUWM: (i) society (including the challenging and led to ambiguity in respon- economic aspects of transition); (ii) water-sensi- sibilities, complicated by a lack of incentives tive urbanism (including urban design and flood for particular areas or institutions to work resilience); (iii) technologies (for water reuse together. and fit-for-purpose water use in particular); and ●● A lack of expertise in integrated urban water (iv) adoption pathways (including capacity build- Chapter 4 3 2A 1 management in planning organizations ing and M&E). The CRC is a leader in cutting-edge Appendix Global Experience and Resources Related to IUWM   57 research on the above themes, which primarily major avenue for knowledge exchange and dis- aims to assist Australian cities in implementing semination on IUWM, with regular workshops innovative IUWM options. The CRC also runs a held several times a year. seven-week long Massive Open Online Course (MOOC) entitled “Water for Livable and Resilient  IWA Water Wiki “Cities of the Future”: Cities,” led by Professor Rob Skinner (Monash http://www.iwawaterwiki.org/xwiki/ University), which is a great resource for capacity bin/view/Organizations/+Cities+of+T building and can be accessed remotely through he+Future online videos.  Cities of the Future Program website: http://psgs.usf.edu/cof/  The CRC for Water Sensitive Cities and Monash University MOOC Water Finally, another initiative that may be of for Liveable and Resilient Cities are particular interest to task teams working in available at https://www.futurelearn. francophone client countries is the OMEGA com/courses/liveable-cities. project (Outil Méthodologique de Gestion Inté- grée des Eaux Urbaines), which aims to develop In addition, the International Water Asso- a methodology for assisting municipalities in ciation (IWA) launched a “Cities of the Future overcoming current difficulties linked to urban Programme” which focuses on exchanging water management and in implementing an knowledge in the water sector to address the integrated approach to urban water manage- challenges of urban water management in an ment. It is the product of a collaboration integrated manner. The program established between three French research institutes, a voluntary working groups composed of utility WSS utility (Lyonnaise des Eaux/Suez Envi- practitioners and thought leaders, who tackle key ronnement), and three French municipalities, areas required for an IUWM approach. The pro- which are acting as coordinators and serve as gram is centered around the following themes: case studies for the implementation of particu- Engineering, Planning, and Institutions and lar IUWM options (Bordeaux, Lyon, Mulhouse). Foundation, and is coordinated by the University A very interesting and practical output of this of South Florida. The results are documented in research project is a methodology for develop- discussion papers and publications (including ing an integrated approach to urban water man- an IWA Cities of the Future Water Wiki) and are agement in French cities. An abridged version of debated at Cities of the Future workshops and the methodology is available publicly, while the events. The working groups are complemented full version is available upon request from Lyon- by Cities of the Future networks on global, naise des Eaux/Suez Environnement. regional, and national scales as well as alliances between cooperating cities and academia.  Information on the OMEGA project However, the publications listed on its website (in French): http://www.omega- were not publicly available at the time of writing anrvillesdurables.org/ and the IWA Water Wiki dedicated to the “Cities  OMEGA abridged methodology of the Future” scheme appears to be dormant, for IUWM (in French): http://www. as no new publications or updates have been graie.org/OMEGA2/IMG/pdf/ listed in the past couple of years. Nevertheless, OMEGA_livrable_L2b_L1b-Guide_ Chapter 4 3 2A 1 the IWA Cities of the Future initiative remains a methodologique-1p.pdf. Appendix 58 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS Bank experience has applied the concept of Integrated Urban Water Management through the Blue Water,  Key resource: An overview of World Green Cities initiative in several cities in Latin Bank and WPP interventions in IUWM America, including Bogotá (Colombia), Buenos and their conclusions can be found in Aires (Argentina), São Paulo and Rio Grande Closas et al., 2012. do Norte (Brazil), in Uruguay and Panama. The program finances diagnostic studies of The Bank’s work on IUWM encompasses three urban water challenges for the above cities, regions and has looked into different aspects which represents a necessary first step when of IUWM, from dealing with water scarcity to considering whether an IUWM approach may improving water quality and climate resilience. be suitable for solving urban and water-related Implementation of IUWM interventions has been issues, prior to project identification. The Blue undertaken under a number of pioneering opera- Water, Green Cities initiative focuses on foster- tions in Brazil (Box 6). Elsewhere the Bank’s ing a participatory approach in determining an efforts have focused on conducting urban water IUWM framework in Latin American cities, as diagnostics and designing umbrella frameworks well as undertaking thorough diagnostics of the for IUWM. Capturing the lessons learned from urban and water issues being faced. The result- the implementation of these projects is critical to ing documentation provides a template for the understanding what conditions the success (and type of issues that should be covered in urban failure) of IUWM initiatives. water diagnostics and is available at http:// web.worldbank.org/ WBSITE /EXTERNAL / Latin America COUNTRIES/LACEXT/0,,contentMDK:2235 From the early 1990s, the World Bank 8351~pagePK:146736~piPK:146830~theSit embarked upon a series of projects in Brazil, ePK:258554,00.html. entitled ‘Urban Water Pollution Control’ proj- ects, which included operations in São Paulo, Europe and Central Asia Belo Horizonte, Curitiba and Vítoria, as well as The Bank and the WPP also undertook TA to diagnostic exercises for other rapidly urbaniz- develop an IUWM umbrella framework in Baku, ing cities across the country. These operations Azerbaijan. The approach focused on identifying were IUWM projects in all but name, as they the main urban and water challenges in Baku, addressed a suite of interrelated issues con- assessing the institutional framework for urban comitantly, encompassing wastewater pollution and WRM, and having consultations with stake- reversal, stormwater and solid waste manage- holders. Based on this, the Bank team developed ment, urban upgrading and green space devel- an umbrella framework for IUWM in Baku, which opment, and did so through the engagement of included structural and nonstructural IUWM different local and state actors from the relevant options, which took into account future urban sectors, and with an emphasis on improving the and water development scenarios, and which was quality of life of the poor (Box 6). Subsequent aligned with Baku’s Strategic Development Plan. generations of projects in Brazil have futher The team also conducted some studies to prepare built on these early IUWM experiences, nota- for potential investment lending by donors, includ- bly in São Paulo, Vítoria, Betim, Uberaba and ing a financial analysis, as well as an environmen- Teresina. Subsequently, with the support of the tal and social analysis, and a risk assessment for Chapter 4 3 2A 1 Water Partnership Program (WPP), the Bank various IUWM options. (Marino 2014). Appendix Global Experience and Resources Related to IUWM   59  eveloping an IUWM Approach in Brazil: an overview of Bank Box 6. ■ D support in São Paulo, Paraná and Espírito Santo An IUWM approach has been adopted in a number of water and urban projects in Brazil over the past two decades. The information below refers to the following Bank-funded projects implemented between 1992 and 2007: the Water Quality and Pollution Control Project in São Paulo and Paraná, and the Water and Coastal Pollution Management Project in Espírito Santo (World Bank 2007). • The overarching objective of these projects was to preserve and improve water quality; poverty alleviation was also central to these projects, as the choice of target areas coincided with poverty alleviation and watershed management strategies. • The São Paulo Water Quality and Pollution Control Project (the ‘Guarapiranaga’ project, 1994–2000), a US$ 387 million project cofinanced by the state government, the state water utility, the municipality of São Paulo and the Bank, initiated the study of the Guarapiranga watershed, strengthened the institutional capacity to manage the watershed in an environmentally sustainable manner, and improved the quality of life of the watershed’s slum dwellers by providing them with water supply, sanitation and related services. The achievements of the Guarapiranga project included reversing the pollution of the Guarapiranga reservoir, used as a potable resource fo the city of São Paulo, and improving the quality of life and environmental health of a large number of slums surrounding the reservoir. The project also contributed to increased community awareness. Project outcomes were reflected in the enhanced level of respect for public areas, equipment and amenities, in the concomitant upgrading of housing with residents’ own funds, and in the overall post-program increase in real estate values. Guarapiranga also helped show how to integrate interventions within a complex institutional framework involving different levels of government (state and municipal) and myriad service providers. • In Paraná, the objective was to rehabilitate and maintain the river and its larger watershed as a reliable water source, and to promote flood control and rehabilitation of flooded areas in Curitiba. • In Espírito Santo, the objectives were to improve the efficiency of the state water company and provide appropriate water and sanitation infrastructure to low-income urban areas of the capital city, Vitória. Research conducted during the implementation of the projects generated evidence that the problem of water quality was not just caused by industrial waste, as was initially thought, but mostly by domestic wastewater. These findings confirmed the importance of including the upgrading of informal settlements to include adequate wastewater, stormwater and solid waste management in them as a way of reversing broader water quality challenges in the cities; they also highlighted the importance of undertaking strong monitoring and data collection. An IUWM approach has been adopted by follow-up projects in Brazil, notably in São Paulo, Espírito Santo and Teresina. Source: World Bank (2007); www.worldbank.org/laciuwm. Africa in-depth diagnosis in several cities, including The Bank with support from the WPP conducted Nairobi (Kenya) and Arua and Mbale (Uganda). a number of analytical studies to look at the In the case of Nairobi, the urban and water potential for an IUWM approach in the growing diagnosis was based on a range of scenarios for urban areas of Sub-Saharan Africa. Jacobsen et future urban water use until 2035 and proposed al. (2012) analyzed the urban- and water-related an array of IUWM options to plug the growing Chapter 4 3 2A 1 challenges of 31 cities in Africa, based on an gap between urban water supply and demand. Appendix 60 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS Conventional Development of Water Resources for Nairobi, Kenya Figure 10.  (2010–35) 1,400,000 Ndaragu Reservoir Private boreholes Maragua 4 Reservoir Northern Collector II 1,200,000 Water demand/supply, m3/d Kiuffyu Northern well fields Collector I Mathioya transfer 1,000,000 to Thika Ruiru well fields 800,000 600,000 400,000 Existing water supply 200,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Year Water demand Existing water supply Future water supply sources Source: (Jacobsen 2012). Figure 10 shows the conventional water supply ongoing Bank investment project: a Water Master options (from storage and transfers of surface Plan was developed, which served as an umbrella water) that were being considered by Nairobi to framework for IUWM and considered IUWM meet the growing water supply gap in the coming options through multicriteria analysis. These years, while Figure 11 shows how the demand for options included demand management and loss water can be met more efficiently by diversify- reduction, groundwater sources, stormwater stor- ing water sources and considering the use of age and reuse, wastewater recycling, and greywa- fit-for-purpose water sources—under an IUWM ter reuse. The scale of the Water Master Plan was approach. While city authorities expressed interest the metropolitan region (not just the city), which in following-up in each of the three cities selected ensured that communities situated where the raw as case studies, Nairobi was the only one in which water sources are located were also included in the an integrated approach was applied as part of an process of developing the framework. Chapter 4 Appendix3 2A 1 Global Experience and Resources Related to IUWM   61 Staged Development of Water Resources for Alternative IUWM Approach Figure 11.  for Nairobi, Kenya (2010–35) Leakage Mathioya transfer to Thika 1,400,000 Private boreholes Water demand management Greywater (cluster) management Kiuffyu Stormwater harvesting (cluster) 1,200,000 Water demand/supply, m3/d well fields 1,000,000 Ruiru well fields Northern 800,000 Collector I 600,000 400,000 Existing water supply 200,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Year Water demand Existing water supply Future water supply sources Source: (Jacobsen 2012). Chapter 4 Appendix3 2A 1 Appendix B Literature Review: The IUWM Paradigm T ucci (2007) argues that there are three sequential stages in the development of urban water services in developed countries, namely: ●● Interventions prior to the 1970s, concerned with public health; ●● Urban water management from the 1970s to the 1990s, concerned with corrective measures to improve water quality and quantity; ●● From 1990 onward, a paradigm shift to sustainable water management. The Water Sensitive Cities Framework (Wong 2009) has also been used to describe the stages in a city’s development and urban water management (Figure 12). More specifically, it describes the various stages that developed cities have historically taken to develop, and the drivers that have pushed for paradigm shifts in urban water management. While most cities in the developed world by the early 20th century had gone through the first phases and have recently begun to shift from the concept of “drained city” to that of “environmental city,” only a few have started to transition to the stage of the “water cycle city”, while the “water sensitive city” remains an aspiring concept that has yet to be translated into reality. The advantage of this framework is that it gives a historical perspective to the development of urban water management in cities and underpins the potential for cities in developing countries, which may be at the “water supply” or “sewered” city stage, to ‘leapfrog’ across several stages to that of a “water sensitive” city by avoiding the loss of environmental capital that developed cities are now trying to correct/reverse. However, it may also be difficult to characterize developing cities using this framework, as it may be too monolithic in practice: a developing city may exhibit aspects of the waterway city in some areas (e.g., the business district), of the drained city in others, of the sewered city or the water sup- ply city elsewhere, or have no services at all in informal areas. For instance, a city like Nairobi may provide water supply, sewerage services and drainage to parts of its city, but some areas may not benefit from any of these services at all—therefore making its insertion with this framework more problematic. A more pragmatic approach was chosen by Jacobsen et al. (2012), who emphasized the need to analyze the institutional capacity of cities as well as their water-related challenges when consider- ing an IUWM approach in developing countries. These criteria make sense in a developing context and have been emphasized earlier in this guidance note (Section 1.2.4): an IUWM approach may 64 MAINSTREAMING WATER RESOURCES MANAGEMENT IN URBAN PROJECTS Figure 12.  The Water Sensitive City Framework Urban water transition phases Drivers Intergenerational Population Population Population growth Social amenity and “Limit to equity, resilience growth health and development environmental health growth” to climate change Water Supply Sewered City Drained City Waterway City Water Cycle City Water-sensitive City City Supply Separate Drainage/ Point source and Diverse, fit-for- Adaptive and hydraulics sewerage flood protection diffuse (storm purpose sources multi-functional schemes water pollution and conservation infrastructures management) promoting and and landscapes linked with reinforcing waterway water-sensitive protection behaviors Management response Source: (Wong 2009). be more suited to cities with strong capacity challenges (including water scarcity, flooding, (characterized as a mix of governance, account- droughts, climate extremes, sea level rise, solid ability, institutional strength, and economic waste management, and sanitation-related opportunities) and with many water-related challenges). B A Chapter 4 Appendix 3 2 1 Appendix C Checklist for Rapid Urban and Water Diagnostic T his questionnaire can be used when conducting a participatory workshop with stakeholders to determine current city and water-related challenges and needs. Sector Challenges Urban planning What are the main causes of population change? What are the trends of urban expansion or change? What is the percentage of informal areas/slums in the city? Where are they located? How are they currently serviced and by how much? Are there any ongoing urban development programs/plans? Are there any challenges linked with enforcing urban planning and related regulations? Is there an urban plan for the next decade? What is the process of urban planning— who is involved? How is urban development financed? Water Is there a watershed management organization and management plan? What is the resources process of managing water in the watershed? Are water sources contaminated? What are the sources of contamination (point and non-point sources)? How is water quality monitored? Does it comply with existing regulations? How is groundwater managed and monitored (quantity and quality)? Are there periodic or ongoing water scarcity issues? Have there been shortages of water in the past? How are those shortages managed? How is water allocated between users in the watershed? Do the rules differ in times of drought? Have there been conflicts? (continued on next page) 66 APPLYING RESULTS-BASED FINANCING IN WATER INVESTMENTS Sector Challenges Water supply What percentage of the city’s population is connected to the water supply network? What percentage does not have access to water supply? What are the sources for water supply and where are they located? Are raw water sources for water supply subject to seasonal /climate variability? Are they subject to contamination and, if so, what are the sources of this contamination? What is the level of NRW/losses in the network in the city? Is water supply intermittent? If so, how is it managed? What is the cost of the services? Is it affordable? Are there any direct or indirect subsidies for water supply? Are there informal water supply service providers? How much are there services? Is the utility financially sustainable? Is there a water supply plan for the next decade? What is the process of planning for water supply? Who regulates water supply quality and costs? Sanitation Who is in charge of sanitation? Same entity as water supply? What is the percentage of the population: with septic tanks? connected to the sewerage network? with other forms of onsite sanitation? without access to improved sanitation? What is the percentage of fecal waste that is adequately collected, treated and disposed of/reused? Are sanitation facilities frequently blocked by solid waste? What problems does this cause? What is the percentage of collected wastewater that is treated? What is the level of treatment and its efficiency? Does the water body have the capacity to receive wastewater effluent? What are the standards for water quality and the environmental indicators used? What is the cost of sanitation services? Are there any subsidies? Is the entity in charge of sanitation financially sustainable? Is there a sanitation plan for the next decade? What is the process of planning for sanitation? Who regulates sanitation services and costs? Stormwater How is drainage infrastructure maintained? How is it planned for? Does the city’s urban development have an effect on stormwater flow/velocity? Are there frequent floods in the city? Why? Are drains frequently blocked by solid waste? What problems does this blockage cause? What is the population’s perception of stormwater management? What is the budget for stormwater and drainage management and how is determined? Who pays for it? Is the population charged? Is there a stormwater management plan for the next decade? What is the process of planning for stormwater management? (continued on next page) C A Chapter 4 . Appendix 3 . 2 . 1 . Checklist for Rapid Urban and Water Diagnostic   67 Sector Challenges Solid waste What entities are involved in solid waste collection, and what percentage of the city is covered? What is the percentage of solid waste produced that is collected? Is there a program of minimizing and recycling/reusing solid waste? Is there an adequate solid waste disposal site? Is it managed sustainably? What percentage of solid waste produced is disposed of adequately? What is the coverage and frequency of street cleaning? Who is in charge of cleaning drains, canals, or urban water bodies? What is the cost of solid waste services? Who pays for it? Is there a solid waste management plan? What is the process of planning? Governance Is there an independent body in charge of regulating water? Is there an entity in charge of WRM? Water licensing? Is it integrated with urban water/ stormwater management? How are conflicts between water users managed during droughts or shortages? Economic What is the impact of floods? Their frequency and severity? impacts Are there landslides? What is their impact, frequency, and severity? What is the prevalence of water- and excreta-related diseases (e.g., vector-borne diseases such as malaria)? Do water bodies meet water quality standards? How often is their quality assessed? What economic services do water bodies provide? (e.g., tourism, fishing, ecosystem services) How is urban/water infrastructure financed? Source: Authors, based on Tucci, 2009. C A Chapter 4 . Appendix 3 . 2 . 1 . 1818 H Street, NW Washington, DC 20433 USA Telephone: +1 202 473 1000 Internet: www.worldbank.org