Project Details
Sector: Water Sup/Sanit Approval date: 13-Jan-2016 Task Manager: MENKIR Teferi, RDGE2
Total cost: 80473769
Currency: UAC
Source(s) of financing
AfDB: 53750759.19
Cofinanced: 26723541.29
Implementing Agency: Ministry of Water, Irrigation and Energy Location: Adama, Adwa, Bichena and Gode Towns


Proposed Development Objectives 1.The Program Developmental Objective is to increase access to sustainable water supply and sanitation services and improve service delivery for the residents and businesses in Adama, Bichena, Adwa and Gode towns. The program will benefit a total population of 680,000 according to the information from the utilities.


Program description 1.The proposed program is estimated to cost US$ 102.42 million and it will have the following components: a)Development of Water and Sanitation Infrastructure: these will include the financing of water diversion or intake structures, conveyance/transmission systems, drilling and equipping boreholes, service reservoirs, pumping stations, water treatment systems, and strengthening of distribution systems. For sanitation it will cover feasibility studies for waste water management and solid waste management, and improving existing sanitation service provision.b)Institutional Capacity Development: It will include the financing of institutional and capacity assessments, strategic business plan development, trainings/seminars (customer relation, O&M, water quality, health and safety, performance management, corporate and business management, regulation and private sector and community participation) and provision of basic operation and maintenance equipment including utility vehicles and billing systems where appropriate.c)Environmental Management: The component will specifically finance the compensation of the project affected people in particular in the Adama well field area and finalise the long standing compensation for affected people in the Midmar dam area. The Government will be responsible for the compensation and any resettlement required under the project.d)Program Management: It will include the financing of technical assistances for program management, program operation costs, baseline validation and project end-line evaluation, and program financial and technical audit.


1.The GoE's key development objective, outlined in its Growth and Transformation Plan (GTP; 2011-15) is to achieve inclusive, accelerated and sustained economic growth and to eradicate poverty. Water is one of the nine priority sectors in the GTP. The sector is also underpinned through sound policy, legal and strategic framework which includes the National Water Resource Management Policy (1998); Water Sector Strategy (2000); Water and Sanitation Access Plan (UAP) (2005); Climate-Resilient Green Economy (CRGE) Strategy (2011); and the OWNP which was adopted in 2013 as the new policy framework document that describes the national strategy and action plan for achieving WASH GTP targets. 2. GTP target is to achieve 98.5% national water supply access coverage (98% for rural and 100% for urban) by the year 2015 based on the Universal Access Plan (UAP) minimum standard. According to the GTP performance report for 2013/14, access level stood at 75.5% for rural and 84.2% for urban areas with 76.7% as a combined national level access. In 2013/14 alone, a total of 7.5 million additional people in rural areas and 1.5 million additional people in urban areas got access to water supply. Though the country made significant stride in improving coverage, there is still huge gap from the GTP targets. As a successor of the UAP, Government prepared the OWNP which provides an overarching framework for all water supply and sanitation interventions. The next phase of the GTP (GTP II) 2016 - 2020 is currently under preparation and will focus on sustained human development and achieve 100% coverage in urban areas and it will place increased emphasis on quality of service. 9.3.The two pillars of the Country Strategy Paper (CSP) (2011 - 2015) are (1) Infrastructure Development - support for improved access to infrastructure, with focus on Energy, Water and Sanitation and Transport and (2) Governance and Accountability. The proposed program is anchored under the first pillar of the CSP but will be designed to contribute to the second pillar as well as it builds on and support the participatory water governance structures and processes. Furthermore, the program is supported by the Bank's Integrated Water Resource Management (2000), Urban Development Strategy (2011) and Gender Strategy (2014 - 2018). This is in coherence with the inclusive development focus of the Ten Year Strategy (TYS) of the Bank.