Publication:
Republic of Peru Robust Decision-Making in the Water Sector: A Strategy for Implementing Lima’s Long-Term Water Resources Master Plan

Abstract
This study draws upon state-of-the-art methods for decision making under deep uncertainty (DMU) to give SEDAPAL and decision makers in Lima answers to pressing questions. It draws upon several methodologies including Robust Decision Making, Decision Scaling, and Adaptive Pathways, to prioritize the investments in SEDAPAL’s Master Plan. Together these methods help define an investment strategy that is robust, ensuring water reliability across as wide a range of future conditions as possible while also being economically efficient.
Link to Data Set
Citation
Kalra, Nidhi; Groves, David G.; Bonzanigo, Laura; Molina Perez, Edmundo; Ramos, Cayo; Rodriguez Cabanillas, Ivan. 2015. Republic of Peru Robust Decision-Making in the Water Sector: A Strategy for Implementing Lima’s Long-Term Water Resources Master Plan. © World Bank. http://hdl.handle.net/10986/22493 License: CC BY 3.0 IGO.
Digital Object Identifier
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    Robust Decision-Making in the Water Sector
    (World Bank, Washington, DC, 2015-10) Kalra, Nidhi Rajiv; Groves, David G.; Bonzanigo, Laura; Molina Perez, Edmundo; Ramos, Cayo; Carter, Brandon; Rodriguez Cabanillas, Iván
    How can water resource agencies make smart investments to ensure long-term water reliability when the future is fraught with deep climate and economic uncertainty? This study helped SEDAPAL, the water utility serving Lima, Peru, answer this question by drawing on state of the art methods for decision making under deep uncertainty. These methods provide techniques for evaluating the performance of a water system over a wide range of plausible futures and then developing strategies that are robust across these futures. Rather than weighting futures probabilistically to define an optimal strategy, these methodologies identify the vulnerabilities of a system and then evaluate the key trade-offs among different adaptive strategies. Through extensive iteration and collaboration with SEDAPAL, the study used these methods to define an investment strategy that is robust, ensuring water reliability across as wide a range of future conditions as possible while also being economically efficient. First,on completion, the study helped SEDAPAL realize that not all projects included in the Master Plan were necessary to achieve water reliability, and the utility could save 25 percent (more than $600 million) in investment costs. Second, the study helped focus future efforts on demand-side management, pricing, and soft infrastructure, a refocusing that is difficult to achieve in traditional utility companies. Third, the study helped SEDAPAL gain the support of regulatory and budget agencies through the careful analysis of alternatives. Fourth, the study allowed the utility to postpone lower priority investments, and to analyze future options based on climate and demand information that simply is not available now.
  • Publication
    United Republic of Tanzania
    (World Bank, Washington, DC, 2006-02) World Bank
    In the past decade, Tanzania has experienced high economic growth and it is in the global limelight as a recent success story in Africa. A variety of factors have contributed to this success, including liberalized policies and reforms, infusion of external capital from development partners and the private sector, debt cancellation, and a strong performance by emerging sectors such as mining, tourism, and fisheries. Its social policies, largely influenced by the First President Julius Kambarage Nyerere, including a single national language and relative political stability have contributed to a strong sense of nationhood, which sets it apart from many of its neighbors and has provided an unusual degree of stability that has facilitated major economic transformation without a significant social backlash.
  • Publication
    Thailand Environment Monitor : Integrated Water Resources Management - A Way Forward
    (World Bank, 2011-06-01) World Bank
    Water is everyone's business. Beside a necessity for living, water has implications on public health and, most importantly, can cause social conflicts. This is because water is limited, is difficult to control, and can easily be polluted. The Integrated Water Resource Management (IWRM) process is considered worldwide as a means to reduce social conflicts from competing water needs as well as to facilitate effective and sustainable development of water resources. Effective implementation of IWRM however will require appropriate policy, regulation, and institutional frameworks which could facilitate cross-sectoral dialogue and cooperation among water users. A good example of IWRM is in the Lower Mekong River Basin. IWRM has been adopted by the Mekong River Commission (MRC) as a means to management water resources through the 1995 agreement, where as MRC countries are fully committed to manage water resources. In Thailand, IWRM has been technically recognized as a means to achieve sustainable water resources management and the concept has been incorporated in the national policy for more than 15 years, however clear institutional responsibility and introduction of the IWRM concept to local communities are relatively new. To address the challenges on water resource management in Thailand, particularly at the local level, stronger leadership and commitment of the key government agencies and effective cooperation of the water users will be important.
  • Publication
    The Future of Water in African Cities : Why Waste Water? Integrated Urban Water Management, Background Report
    (World Bank, Washington, DC, 2012-12) Echart, Jochen; Ghebremichael, Kebreab; Khatri, Krishna; Mutikanga, Harrison; Sempewo, Jotham; Tsegaye, Seneshaw; Vairavamoorthy, Kalanithy
    The primary objective of this report is to provide a coherent and comprehensive review on integrated urban water management (IUWM) approach to assist public authorities to identify and address the future challenges of urban water supply, sanitation and flood management in African cities. This report presents the existing and future challenges in Africa, the possible options for innovative technologies and approaches for their breakthrough and a way forward to achieve the objectives of IUWM. It highlights technical and institutional constraints of the IUWM in Africa. It presents the global and African best practices and trends in IUWM which are linked to urban development and which have very good lessons learnt that can be shared within and among the cities in Africa. The report consists of four chapters. Chapter two reviews the existing condition, future challenges and opportunities in Urban Water Sector (UWS) in Africa. The review covers the current situation of urban water systems and their management approaches; the major future change pressures (climate change, population growth and urbanization, deterioration of infrastructure systems) and their impacts on UWS; and opportunities for implementing the IUWM approach in Africa. Chapter three introduces the key concepts and conceptual framework of IUWM. The framework has been supplemented by appropriate technologies and innovative approaches of IUWM that will be suitable for cities in Africa. This chapter also presents the global experiences and best practices of IUWM that can be shared within the Africa cities. Chapter four presents case studies to demonstrate how the IUWM framework can be operationalized and to select the appropriate technologies and approaches as discussed in chapter 3 based on the different typologies of the cities and development stages in Africa. The typologies include an emerging town in Uganda (Masindi), a city with partially developed infrastructure in Ghana (Accra) and fully developed city in South Africa (Cape Town). Based on the cases, a few recommendations (road map) for the implementation of IUWM approach for other cities in Africa have been presented in chapter four.
  • Publication
    Water and Development : An Evaluation of World Bank Support, 1997-2007, Volume 2. Appendixes
    (Washington, DC: World Bank, 2010) Independent Evaluation Group
    The amount of available water has been constant for millennia, but over time the planet has added 6 billion people. Water is essential to human life and enterprise, and the increasing strains on available water resources threaten the mission of institutions dedicated to economic development. The ultimate goal is to achieve a sustainable balance between the resources available and the societal requirement for water. In this evaluation the Independent Evaluation Group (IEG) examines all the water-related projects financed by the World Bank between fiscal 1997 and the end of calendar 2007. Bank activities related to water are large, growing, and integrated. They include water resources management, water supply and sanitation, and activities related to agricultural water, industrial water, energy generation, and water in the environment. Through both lending and grants, the World Bank (the International Development Association and the International Bank for Reconstruction and Development, or IBRD) has supported countries in many water-related sectors. This evaluation examines the full scope of that support over the period from fiscal 1997 to the end of calendar 2007. More than 30 background studies prepared for the evaluation have analyzed Bank lending by thematic area and by activity type. The evaluation is by definition retrospective, but it identifies changes that will be necessary going forward, including those related to strengthening country-level institutions and increasing financial sustainability.

Users also downloaded

Showing related downloaded files

  • Publication
    Downstream Impacts of Water Pollution in the Upper Citarum River, West Java, Indonesia : Economic Assessment of Interventions to Improve Water Quality
    (Asian Development Bank, Manila and World Bank, Washington, DC, 2013-10) Asian Development Bank; World Bank
    The Economics of Sanitation Initiative (ESI) of the World Bank's Water and Sanitation Program (WSP) commenced in East Asia and the Pacific region in 2006 to generate and disseminate economic evidence on sanitation. A phase one study in five countries of the region, including Indonesia, assessed the economic costs of inadequate sanitation to raise the profile of sanitation nationally. A phase two study compared the costs with the benefits of a range of sanitation intervention options in five physical locations in Indonesia, to assist decision makers in their choice of sanitation technology and delivery method. Since the demonstrated successes of ESI in the East Asia and Pacific region, ESI has become a global flagship program of WSP. However, some economic benefits have not been fully evaluated in monetary terms because of methodological difficulties in valuing nonmarket impacts, the paucity of underlying data sets, and the difficulties inherent in attributing observed impacts to poor sanitation. Among these hard-to-measure benefits are the impacts of poor sanitation on water resources. Hence, the purpose of this study was to develop and pilot test a specific methodology for valuing a wider range of impacts related to water resource pollution in Indonesia.
  • Publication
    Egypt Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11-08) World Bank Group
    This Country Climate and Development Report (CCDR) explores the challenges and opportunities of improving the alignment of Egypt’s development goals with its climate ambition. The CCDR offers a set of policy options and investment opportunities that, if implemented within five years, can deliver short-term benefits in selected sectors while also creating momentum toward important long-term benefits. The options identified in this report provide: Cost-effective adaptation approaches to reduce the negative impacts of climate change; Policy interventions to improve efficiency in the use of natural resources, and complement the creation of fiscal space to finance projects that reduce the vulnerability of people and the economy to climate shocks; Actions that can help avoid carbon lock-in through low-cost policy changes; Interventions to strengthen the country’s competitiveness while reducing negative externalities (such as pollution) and incentivize Egypt’s move towards a low carbon growth path in a manner consistent with its development objectives. Overall, the report identifies opportunities to reduce inefficiencies, manage risk, and strengthen the foundation for increased private sector participation.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.
  • Publication
    State Water Agencies in Nigeria
    (Washington, DC: World Bank, 2015-09-08) Macheve, Berta; Danilenko, Alexander; Abdullah, Roohi; Bove, Abel; Moffitt, L. Joe
    Investments on the order of $US6 billion are estimated to be needed in the water sector in Nigeria in the next 10 years if the country is to achieve universal water supply coverage. This is the main finding of State Water Agencies in Nigeria: A Performance Assessment. The report focuses on water provision services from the state water authorities (SWAs), or water boards, as they are the major and only regulated agencies that provide water to the urban population. Sanitation provision is not addressed because the majority of SWAs do not provide this service to their customers. This report highlights the issues related to the performance of SWAs, tariff levels and structures, financing mechanisms, and concerns with governance within the SWAs and state governments. For example, as a result of accelerated urbanization and migration of the population to the large cities, the average coverage by SWAs is about 40 percent, and the average domestic water consumption was 26 liters per capita per day in 2013, well below the recommended average. The remaining majority of the population relies on alternative service providers. To the extent possible, the report also shows how institutional weaknesses affect customer costs, subsidies to the sector, and the financing required to scale up investment. It showcases how the related operational and maintenance expenditures of the SWAs can actually be covered from the various financing sources. Coping costs of the population getting water from alternative water providers is assessed at US$700 million a year, and this number is growing. In addition, utilities get about US$100 million in operational subsidies that cover labor, electricity, and other operational costs. State Water Agencies in Nigeria: A Performance Assessment provides the government of Nigeria with a structured and coherent quantitative snapshot of the state of its urban water sector. Ultimately, this report is a first step toward performance benchmarking in Nigeria’s water and sanitation sector. The findings summarized in this publication should eventually serve as a tool for utilities and their authorities and stakeholders, as well as for bilateral and multilateral donors, in their efforts to monitor the performance and progress of each water provider and the sector as a whole.
  • Publication
    A Water Sector Assessment Report on the Countries of the Cooperation Council of the Arab States of the Gulf
    (Washington, DC, 2005-03) World Bank
    The main objective of the Water Sector Review in the member countries the Cooperation Council of the Arab States of the Gulf (GCC) is to (1) conduct a diagnosis of the current situation of the water sector, identify issues in the GCC region, evaluate the GCC governments' current water policies, and propose recommendations for improved Integrated Water Resources Management (IWRM) in Phase I of the study; (2) present key findings and recommendations at the GCC Water Conference in Bahrain, September 19-20, 2005, where Government officials, academic specialists and technical experts from the region would provide inputs to this study; and (3) if amenable to the GCC governments, conduct Phase II of the study to develop specific policies and action plans for more sustainable water resources management in individual GCC states.