Project Rationale and Linkage to Country/Regional Strategy
The project will address the problems identified by the MIH in its priorities and strategies for 2013 2018.
These are (i) inadequate legal and regulatory frameworks; (ii) the continued dependence of the country's
PWWs, except for PPWSA and SRWSA, on financial support from the government; (iii) old production and
distribution systems and inadequate human resources; (iv) a lack of financial resources for rehabilitating
and developing the sector; and (v) the overall inadequate water supply coverage in the country's urban
areas. The project will improve the performance of water utilities in nine provincial towns to give
residents greater access to safe piped water supply. It will contribute to the government's target of
achieving 100% piped water supply coverage in urban areas by 2025 by (i) rehabilitating and improving
existing water treatment plants, (ii) providing new water sources and treatment plants, (iii) augmenting
or replacing existing distribution pipelines to increase system pressure and improve service delivery, and
(iv) providing new transmission and distribution pipelines. After limited involvement since 2006, ADB is
seeking to reengage in and provide long-term support for the country's urban water supply sector,
starting with this project.