1. EuropeAid Support to the EU Water Initiative (EECCA Region) Water Investment Support Facility Presentation Joint Meeting: EU Water Initiative EECCA Working Group & OECD EAP Task Force Helsinki 24-25 May 2007 WISF Team Leader: George McDonnell george.mcdonnell@arcadis-euroconsult.com

2. Water Investment Support Facility in a Nutshell WISF is helping IFIs prepare seven EUWI related water projects in EECCA with total budget of EUR 340m EuropeAid EUR 13.5m co-financing for implementation of EUWI related water projects in EECCA (separate to WISF)

3. Project Management The EuropeAid WISF contract is with Euroconsult Mott MacDonald (NL) in cooperation with: –BCEOM (FR) –Mazars and Guerard (FR)

4. WISF Background Water Investment Support Facility developed by EuropeAid in collaboration with banks (IFIs) WISF is most recent EuropeAid project preparation facility (others: Joint Environment Programme, Black Sea Investment Facility)

5. WISF Background contd. IFIs develop Water Supply and Sanitation and Integrated Water Resource Management projects that help implement EUWI in the EECCA region IFIs require project preparation support WISF = one source of project preparation support WISF is carrying out eight project preparation studies for seven IFI projects

6. WISF Facts & Figures Eight WISF studies are being carried out in: –Armenia (1) (EBRD) –Azerbaijan (2) (World Bank) –Georgia (3) (EBRD) –Uzbekistan (2) (ADB & World Bank) WISF partner IFIs: Asian Development Bank, EBRD, World Bank WISF Budget: EUR 2.7m WISF Duration: July 2005 – December 2007

7. WISF-01 (ADB–UZ) ADB Djizzak & Surhandarya Water Supply & Sanitation Project (UZ) –Rehab and extend water supply network –Improve public bathhouses and school latrines Budget: USD 25m WISF-01 launched February 2007 –Task 1: Environmental Assessment –Task 2: Poverty and Social Assessment –Task 3: Social Safeguards

8. WISF-02/08 (World Bank-AZ) World Bank National Water Supply and Sanitation Project (AZ) –Rehab and reconstruct WSS systems –Implement institutional development plan Budget: USD 279m WISF-02 completed MAR 07 –Feasibility studies for 2 Rayons WISF-08 to be completed SEP 07 –Feasibility studies for 3 Rayons

9. WISF-03 (WB-UZ) World Bank Ferghana Valley Water Resources Management Project (UZ) –improve drainage / irrigation / water resources management in Syr Darya Basin –establish water user associations (WUAs) Budget: USD 50m WISF-03 launched APR 07 –Environmental Assessment –Social Assessment

10. WISF-04 (EBRD-AM) EBRD Lake Sevan Environment Project (AM) –Rehab / build WWTPs in five Lake Sevan towns Budget: EUR 15m –(Inc. EuropeAid Cofinancing: EUR 5m) WISF-04 completed April 07 –financial, technical, environmental, legal and social study EBRD-Armenia loan agreement signed APR 07

11. WISF-05 (EBRD–GE) EBRD Rustavi Water Project –updating pumping stations and water supply network –installing 20,000 water meters Budget: EUR 5.5m –(inc. EuropeAid co-financing: EUR 0.8m) WISF-05 completed March 2007 –financial, technical, environmental, legal and social study

12. WISF-06 (EBRD-GE) EBRD Borjomi-Bakuriani Water Project –improve the water supply and wastewater system Budget: EUR 21m WISF-06 completed March 2007 –financial, technical, environmental, legal and social study

13. WISF-07 (EBRD-GE) EBRD Tbilisi Municipal Water Services Improvement Project (GE) –Rehab Tbilisi municipal water infrastructure and management Budget: EUR 30m WISF-07 completed MAY 07 –financial, technical, environmental study and procurement package

14. Conclusions WISF is a EuropeAid tool to help IFIs prepare water projects in EECCA WISF can be seen as a “good gamble” by EuropeAid – a relatively small project helping mobilise EUR 340m worth of investment in the EECCA water sector WISF will run until December 2007