Urban Water Reform and Port Harcourt Water Supply and Sanitation


  • Reference: P-NG-E00-007
  • Approval date: 26/03/2014
  • Start date: 26/03/2015
  • Appraisal Date: 17/05/2013
  • Status: ApprovedAPVD
  • Implementing Agency: Port Harcourt Water Corporation
  • Location: Port Harcourt Rivers State



1.1.The objectives of the project are to:

(i) Improve access to safe water supply and public sanitation services in the Port Harcourt and Obio/Apkor, through rehabilitation and extension of the existing water infrastructure and construction of public sanitation facilities;

(ii) Establish sound performance and long-term financial viability of the Port Harcourt Water Corporation to ensure sustainability of services provided, and

(iii) support the Federal government in facilitating Urban water sector reform in other states.

Scope: Area and Population

1.1.The project aims to improve access to clean water and sanitation in the currently settled areas of Port Harcourt and Obio/Apkor LGAs. This is an estimated current population of 1.3 million residents that is expected to grow to 2.8 million by 2040. Water users will also include commercial establishments and industries.

1.2.The population in the project area is primarily low income households, which requires special considerations in delivery mechanisms and tariff setting.

Project Components

1.3.Component 1 - Urban Water Reform at Federal Level: This component, to be implemented by the FMWR, will support the establishment of a framework that strengthens transparency and efficiency of the Federal level's support to the States. It comprises the clarification of roles and responsibilities, innovative mechanisms for co-financing between government levels (Federal, State and Local), as well as the elaboration and enactment of associated regulations and financial tools. Additionally the component will explore the feasibility of establishing a continuous federal programme (rather than single projects) that can redress the current geographical and sub-sector dispersion of donor's funds. The capacity building would also promote and advocate the use of monitoring tools to track impact of sector interventions on the poor, vulnerable populations and impacts by gender.

1.4.Activities envisaged under Component 1 include:

(i) Review and support to States in the operationalization of the Low Income Household Strategy;

(ii) Support to increasing Private Sector Participation in Urban water supply, by facilitating project development/preparation and carrying out credit ratings of utilities to demonstrate investment opportunities that exist and to identify reform and improvement objectives;

(iii) Studies to establish national guidelines for Climate Change and Climate Variability (CC & CV) in water, sanitation, flood and water resources planning; and Establishment of a water sector coordination and monitoring mechanism.

1.5.Port Harcourt and Obio/Akpor Water Supply and Sanitation

1.6.Component 2 - Water Supply and Sanitation Infrastructure: This component will involve:

(i) Rehabilitation and augmentation of water production and treatment systems,

(ii) rehabilitation, extension of water transmission and distribution networks,

(iii) installation of customer and bulk meters;

(iv) construction of improved sanitation facilities for markets, motor parks and other public places. The sanitation facilities at markets and motor parks may include biogas production and safe recycling from the onsite septic tank based systems contributing to Climate Change mitigation;

(v) Environmental protection infrastructure and establishment of buffer zone at Rumoula well-fields.

1.7.Component 3 - Institutional Support: This is critical to the provision of the water and sanitation services expected to result from the rehabilitated and expanded infrastructure, and will be provided in several areas.

1.8.Component 3.1 - Capacity Building of PHWC: The sub component will include technical assistance to the water utility PHWC to:

(i) establish/improve asset management, service delivery (customers enumeration (cadaster), improving revenue billing and collection, tariff reform, regulatory reform, improving financial management, increasing hours of supply and reduction of non-revenue water including metering, implementation of limited extension works) and commercialization of its operations,

(ii) build the technical capacity of PHWC staff,

(iii) domesticate and operationalize the Low Income Strategy

(iv) enhance the management capacities for the public water points (i.e. kiosks and public stand posts.

1.9.This subcomponent also includes capacity building for the support ministries and agencies i.e. Ministry of Women Affairs, Ministry of Environment, the Waste management Agency, in carrying out their mandates in relation to PHWC.

1.10.Component 3.2 - Consumer Outreach: This subcomponent will include sensitization, awareness raising, organization and training and capacity building to:

(i) promote improved hygienic behavior, and encourage household investment in hygienic toilets and payment for of water services,

(ii) promote improved hygienic behavior among school children and residents,

(iii) promote clean and hygienic environment, and

(iv) the support to consumer groups and CSO monitoring.

1.11.Component 3.3 - Environment and Climate Change: The subcomponent will assist PHWC to:

(i) implement the land use planning and compensation of displaced persons and economic activities;

(ii) a water security study for Port Harcourt to assess options for ensuring long term supply, reduce threat of contamination and consider alternative sources and develop water safety plan and

(iii) develop CC &CV adaptation plans.

1.12.Component 3.4 - Sanitation master plan: The subcomponent will support a comprehensive and integrated sanitation master plan, detailed design study of sanitation and solid wastes management, including cost recovery in order to prepare for a sanitation and solid wastes project (this requires MoWRRD to liaise with the RS Waste Management Agency that is responsible for solid waste). As part of the preparation for scaling up, institutional support and capacity building for the safe management of wastes from the constructed public sanitation facilities (combined with small scale PPP contracts) will be carried out. The subcomponent also includes resource mobilization for a comprehensive sanitation project for Port Harcourt and Obio/Akpor.

1.13.Component 4 - Public Private Partnerships: This component will support the establishment of appropriate PPP arrangements (in accordance with the RS PPP law of 2009) for the following:

(i) PPP for the operations of the water services provided by PHWC. This includes the development and assessment of various PPP options, as well as transaction advisory support (feasibility/due diligence, procurement and capacity building on PPP management aspects) to ensure the contract is in place in time for the commissioning of the distribution system;

(ii) PPP for sanitation and water at public places such as markets and motor parks, which is expected to involve operations managed by SMEs/women entrepreneurs; and PPP for public water points for Low income households, which may be incorporated in the above-mentioned arrangements for either water or sanitation in public places).

1.14.Component 5 - Project Management for Port Harcourt and Obio/Akpor Water Supply and Sanitation: this will be responsible for timely delivery of all the proposed project's outputs within budget, based on up-to-date work and procurement plans and consists of management of the implementation, procurement, financial management, monitoring and evaluation.

Key contacts

MUGOYA Tom Robert - OWAS1


Finance source Amount
ADBUAC 130,361,100
ADFUAC 3,300,000
TotalUAC 133,661,100