97779 Armenia: Improved Access to Water Services April 14, 2011 Enhanced Public-Private Partnership in Delivery of Water Services in Armenia Overview Efficient delivery and public safety of water have been a primary concern in Armenia. Progress has been made in delivery of water services in small and medium-size towns consisting of over 300 municipal and rural communities (37 towns and 268 rural communities) – around 33 percent of the country’s population (benefitting about one million inhabitants). The International Development Association (IDA) has supported the government in providing safe and stable water supply through several water and wastewater management projects. Challenge MULTIMEDIA For many years most of the water supply and Loading the player ... sanitation systems in Armenia were in serious state of disrepair. Despite an abundance of water in the country, for almost all Armenians, water was available for only a few hours a day. Over the past decade, the government of Armenia has strived to improve access, reliability and quality of the drinking water and its infrastructure. Although the water resource balance in many parts of the country has improved since the 1980s, and despite the progress in improving water supply in areas supported by private sector participation, the MORE institutional framework for sustainable water Slideshow:  Improved Access to Water supply delivery in most parts of Armenia Services remained poor with low rate of revenue collection (47.9 percent). Approach More Results The project introduced a successful public/private partnership (PPP) for the management of water and wastewater services in Armenia Water Supply Company (AWSC) service area, covering about 33 percent of the population. It has delivered substantial results. Private sector participation is increasingly 266,000 households have been provided seen by the Armenian government as a key component of with improved access to water sector reform strategies. Municipal Water and Wastewater services between 2004 and 2011 Project (MWWP) replicated the successful PPP model tested in the Capital city Yerevan’s water sector. The reform continues under Additional Financing, scaling up the rehabilitation and investments under the MWWP. 98% bacteriological safety compliance of water increased Results from 93% in 2004 to 98% in 2011 About 266,000 households (about a million inhabitants) have benefitted from these improvements between November 2004 and January 2011: MORE INFORMATION The average daily hours of drinking water service has Municipal Water and increased significantly, from an average of 6 Wastewater Project (2004-2009) hours/day to 14 hours/day (end of project target Additional Financing to (December 2011): 16 hours/day). Municipal Water and Wastewater Project (2008-2011) Cities with minimal daily hours of water increased from 68 percent at baseline to 90 percent now (end of Armenia Water Sewerage Company project target: 90 percent). Revenue collection increased from 47.9 percent in 2004 to 95 percent in January 2011. Billing on the basis of metered consumption increased from 40 percent at baseline to 77 percent (end of project target: 77 percent). Bacteriological safety compliance increased from 93 percent at baseline to 98 percent (end of project target: 98 percent). Improved community water points constructed or rehabilitated under the project – 7,599. Piped household water connections that are benefitting from rehabilitation works – 89,000. People provided with access to improved water services – 266,000 households (about 1,064,000). Bank Contribution In 2004, IDA provided US$ 23 million under Municipal Water and Wastewater Project, for the areas outside Yerevan for improvement of water supply in terms of coverage, quality and cost. To scale up the ongoing program of water system rehabilitation and improvements under the MWWP project, in 2008 IDA provided Additional Financing of US$ 20 million. The closing date is December 2011. Partners There is a strong partnership among key development partners in Armenia’s water sector. IDA coordinates with the Asian Development Bank on water sector reforms, particularly on exchange of information on mutual efforts in the Armenia Water Supply Company (AWSC) service area. The European Bank for Reconstruction and Development has invested in five treatment plants in the Sevan region. Germany’s development bank (Kreditanstalt für Wiederaufbau, KfW) is financing water supply investments in the cities of Armavir, Vanadzor and Gyumri. The coordination efforts bode well for future improvements of the sector. Moving Forward Armenia appears to be on target to achieve the Millennium Development Goals (MDGs) of water and sanitation by 2015. Significant investment is still needed, however, to reduce excessive amounts of unaccounted for water, rehabilitate poor water and wastewater infrastructure, and continue institutional and financial capacity building. The disparities are more acute between urban and rural areas. The shortcomings in the system can only be remedied through rehabilitation of water systems with well established prioritizations and the adoption of regulatory and institutional changes. Beneficiaries The total number of beneficiaries with improved access to water services between November 2004 and January 2011 is 266,000 households, of which 34,748 live in rural areas. Sophie, an 11-year old schoolgirl in a distant Armenian village, wrote an essay expressing a desire to have drinking water in her village, which did not have water for more than four months. She had to carry water from a neighboring village five to six kilometers away every day. This touching story was awarded a prize by the prime minister of Armenia. Later in 2009, with IDA and other donor assistance, AWSC implemented a project enabling the supply of water into this village. “ It’s a real dream come true,” said Sophie. “The water utility brought life back to our village.”