Learning Curves

IED

August 2009

Bangladesh:UrbanSectorand WaterSupplyandSanitation
Thissectorassistanceprogramevaluation1coversworkdoneover200120082byADB, aswellasotherdevelopmentpartners.ADBscollaborationwiththeDepartmentfor InternationalDevelopment,theJapaneseGovernment,andtheWorldBankregardinga jointcountrystrategyin2005,ledtothisevaluationinitiative.
urbanareas,e.g.,thedevelopmentofthegarment industry,goodharvestsinrecentyears,andthe Bangladeshsurbancontextisdominatedbygrowth increasingquantumofremittancesfromtheoverseas polesDhakaandChittagong,andhasanothertwomajor laborforce.Aidprojectsfocusedondecongestingand citiesinKhulnaandRajshavi.However,Bangladeshhas developingurbanareasdidhavepositiveeffectson afurther300orsosecondarytowns(pourashavas)with urbanlivingconditions.Thecomparativelyminor populationof15,000500,000,andthenumberis investmentsfromGovernmentandfundingagencies growing.Infrastructureinvestmentsarenotkeeping outsideDhakawereassessedasgenerallyinsufficientto pacewiththegrowthoftheurbanpopulation,andthe createamajorimprovementintheurbanenvironment. Governmentlacksfundsandarrangementsforoperation andmaintenanceofexistinginfrastructureandservices. SummaryofRatings Withthelocalgovernmentslanguishingduetolackof UsingtheIndependentEvaluationDepartments budgetsanddecisionmakingpowers,theeconomic ratingsystem,thisevaluationoftheurbansector4and conditionsarenotverybuoyantand,inmanycases,the watersupplyandsanitationfindstheAsian environmentalandsocialconditionsarepoor. DevelopmentBanks(ADBs)programinthetwo 3 SummaryofFindings sectorsinthe2000ssuccessful.Programsofothermajor partnerssuchastheDepartmentforInternational Urbanpovertywasonthedecline,from20%to15% Development(DFID),Japanesegovernment,andWorld in2005;whileruralpovertyhaddroppedfrom38%to Bankwereassessedbutnooverallratingwasgiven. 29%.However,thenumberofslumswasontherise, ThetopdownassessmentregardedADBsector andmanyaspectsoftheurbanenvironmenthad positioning,ADBcontributiontosectorresults,and deteriorated,withsafewatersupplycoveringonly50% ADBperformanceallassatisfactory.ADBresponded 60%oftheurbanpopulation,evenwhenperhaps85% welltotheevolvingdevelopmentchallengesand hadaccesstoanimprovedsource.Thecoveragein prioritiesoftheGovernment,builtonitscomparative sanitation(latrines,toilets)andhygienicbehaviorhad advantage,anddesigneditsprograminamannerthat improvedsignificantly,from32%atthestartofthe byandlargetookintoconsiderationthesupport periodto36%in2006.Theevaluationregardedit availablefromotheraidagencies.Itwasthebiggest unlikelythaturbansectorprogramsofthedevelopment playerinthetwosectors.However,itplayedtheroleof partnershadplayedalargeroleinthedeclineofurban leaderamongaidagencieslesseffectively;notall povertyortheeconomicgrowthachieved.Theamount opportunitiesformoreeffectiveleveragingofthe offinancingandothersupportprovidedtoBangladesh Governmentmayhavebeengrasped.ADBsprogram wereprobablyinsufficientforthis.Theeconomic contributedmodestlytothereductioninurbanpoverty; growthachievedovertheperiodwaslikelytheresultof andsubstantiallytoimprovementsinpublichealth, trickledowneffectsofoveralleconomicgrowthin
Independent Evaluation Department Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444; evaluation@adb.org; www.adb.org/evaluation/

Background

environment(notablyinfloodprotectionanddrainage), socialrelations,andinstitutionaldevelopmentinthe projecttowns. Basedonthebottomupassessment,ADBs programintheurbansectorandWSSwaspartly successful.ADBsroleastheagencywiththehighest financialsupporthasbeenrelevant.ADBhasremained engagedoverthedecade,hasexpandeditsprogram, andtookaleadroleinthe2005jointcountrystrategy workandinthe2007partnershipagreementwith DhakaandChittagong.Theprogramofferedbythe developmentpartnershasalsobeenrelevant.Inthe secondarytowns,theinterventionsbyADB,DFID,the WorldBank,andsomeotheragencieshavebeen effective,withveryfewinvestmentsbeingwastedor underutilizedasfarasthisevaluationhasbeenableto determine.Inurbanwatersupply,thechallengesare stilldaunting.Developmentpartnersand,specifically, ADBsinterventionsinwatersupplyandsanitation (WSS)areassessedaseffectiveonbalance.Aid harmonizationinthesectorhasprogressedoverthe yearsbutcouldhavedevelopedfaster;priorto2005, notmuchwasachieved.Inthecontextofweak institutionalcapacity,andintheabsenceof collaborationwithinanoverallframework(sector developmentprogram)orsectorwideapproach,the developmentpartnerscontinuetorelyonproject implementationunitsandlarge,adhoccapacity developmentprograms.Thishasconsiderable transactioncostsandcannotaddresssystemicissues suchascivilserviceconditionsandrecurrentbudgets. Thisevaluationassessestheaidprograms,including ADBs,asbeinglessefficient.Thereislittleexternal supportforoperationandmaintenancebudgetsin eitherofthesectors.Inviewofallofthis,the sustainabilityofthevariousexternalinvestmentsisless likely.ThereislittlereasontorateADBfundedprojects higherintermsoftheirsustainability. Lessonsidentifiedfromthisevaluationincludethe needfordevelopmentpartnerstosupportthose financingmechanismsthatengendergreatermunicipal accountability,aswellaspromotelocalresource mobilizationtoensurethesustainabilityofsubprojects. Also,goodoptionsforprojectcofinancingintheurban sectorandWSSinBangladeshexistduetothelarge numberofsecondarytowns,thelargenumberof subsectors,andthevarietyofneedsandpotentialinthe twosectors.

Recommendations ADBshouldputemphasisoneconomic,sector,and thematicworkin(i)Dhakawatersupply; (ii)pourashavawatersupply,floodprotection,and urbaninfrastructure;(iii)urbantransport;and (iv)decentralizationordevolutionofpowerstolocal governments. Tosupportthefirstrecommendationabove,ADB shouldassignmorehumanresourcestothe BangladeshResidentMission,dedicatedtothe urbansector,andconsiderpostingaspecialistwitha brieftoenhancepolicydialoguewithotheraid agenciesandtheGovernment.Thesizeofthe currentandfutureurbansectorandWSSloansand grantsmeritsthis. ADBshouldconsidertherelationshipamongADB, theLocalGovernmentEngineeringDepartment,and theBangladeshMunicipalDevelopmentFund (BMDF),notablyintermsofthecomplementarityof theirassistancewiththatprovidedbytheBMDF. Financingconditionsshouldbeharmonized. Feedback ADBManagementsresponseandtheChairs SummaryoftheDevelopmentEffectiveness CommitteeDiscussionsarenotrequiredforthis evaluation.ThestudywascompletedinJuly2009.
ADB.2009.UrbanSectorandWaterSupplyandSanitationin Bangladesh:AnExploratoryEvaluationoftheProgramsofADB andOtherAidAgencies.SectorAssistanceProgram Evaluation.Manila.Available:www.adb.org/Documents/ Reports/SAPE/BAN/SAPBAN200902/SAPBAN2009 02.pdf 2 Thisincludesoperationsthatwerestartedorcompletedat anypointoverthisperiod. 3 Thisevaluationdoesnotprovideafullratingofthe developmentpartnersperformanceoverthedecade, althoughithasmadeassessmentsofvariousaspects. 4 Thisstudylargelyfollowstheconventionaldefinitionof urbandevelopmentasusedbymultilateraldevelopment bankswhentheysetouttoprovidedevelopmentpolicy lendingorinvestmentprojectstocitiesandtowns.The definitiondoesnotincludedirecteconomicdevelopmentin urbanareas,butcoversimprovingenablingconditionsfor sucheconomicdevelopment,andtheprovisionofpublic goodsandtheupliftofslumpopulations.Urbanenergy supplyisnotincluded,butdevelopmentofbusandtruck terminalsandofmarketsis.
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Learning Curves available @ www.adb.org/evaluation/

Team Leader: Walter Kolkma; Tel +63 2 632 4593; wkolkma@adb.org