National Water Sector Strategy

Sector Enabling Environment and

2011-2015 Investment Plan

Eng. Gebran Bassil

Ministry of Energy and Water

December 2010

1
Objectives of the Meeting
Institutional and Organizational Initiatives
Financial and Commercial Initiatives
Legal and Regulatory Initiatives
Environmental Concerns
2011-2015 Investment Plan

2
Objectives of the Meeting

Presentation of the water sector enabling initiatives on various fronts:

‒ Institutional and Organizational
‒ Financial and Commercial
‒ Legal and Regulatory

Outline of main environmental concerns the water sector is facing

Presentation of the initial draft of the 2011-2015 Investment Plan

3
Stage of Development of the National Water Sector Strategy – 14 Dec. 2010
Today
Current
Stage of
Progress
B
Develop Capital
Project
A Masterplan D E
Establish Baseline, Develop High-
Assess Overall Level
Identify Priority
Financial Roadmap and
Gaps and Set
Sector Objectives
C Requirements Implementation
Plan
Develop Enabling
Initiatives
Focus of
Today’s
Meeting

Management and First Steering Second Steering

Stakeholder Interviews Committee Presentation Committee Presentation Final Steering Committee
Presentation

Final Workshop with

Meeting with National Workshop with International
International Donors and
Stakeholders Donors
National Stakeholders

4
Objectives of the Meeting
Institutional and Organizational Initiatives
Financial and Commercial Initiatives
Legal and Regulatory Initiatives
Environmental Concerns
2011-2015Investment Plan

5
 Roles and responsibilities in the water sector according to Law 221 (1/2)
Role of the Ministry of Energy and Water (Law 221)
Ministry of 1. Monitor, control, measure, study water resources, and
Energy and Water estimate water needs
2. Monitor the quality of surface and groundwater and set
quality standards
3. Develop and update a national masterplan for the
Performance Evaluation allocation of potable and irrigation water resources, and
develop a wastewater masterplan
4. Design and implement large water infrastructure projects
5. Perform artificial recharge of ground water aquifers and
monitor extractions
6. Develop legal framework and procedures to protect water
resources from pollution and improve water quality
BML North South Bekaa LRA 7. Issue permits for water prospection and use of public
water and property
Role of Water Establishments According to Law 221(*) 8. Conduct and update hydro-geological studies and
research, and collect technical water data
a. Design, implement, operate and maintain potable and irrigation distribution 9. Monitor and regulate WEs and other entities working in
projects based on national master plan and resources allocated by MEW the water sector
b. Collect, treat and dispose of wastewater based on treatment and outfall sites 10. Enhance and monitor WE performance of according to
approves by MEW indicators set in their business plans
c. Propose water supply, irrigation and wastewater tariffs 11. Set standards and regulations for (i) studies and project
d. Monitor water quality for distributed water supply and irrigation execution, (ii) surface and groundwater exploitation and
wastewater; and (iii) water quality monitoring
Role and Modus Operandi of Performance Evaluation Committee 12. Perform expropriation transactions for MEW and WEs
To be determined by joint decision of ministers of Energy & Water and Finance 13. Provide opinion on permits related to mines and quarries
and impact on water resources
14. Ensure public relations and provide relevant information
Source: Law 221/2000 and its amendments
Note: (*) Applies to BML, North South and Bekaa WEs but does not fully apply to LRA related to water conservation

6
Roles and responsibilities in the water sector according to Law 221 (2/2)

Description of Responsibilities MEW WEs

Definition of sector policy, institutional roles and sector structure

Policy Making



Enactment of legislation and regulation
Development of investment and subsidy policies


Establishment of long term consolidated planning for water, irrigation and
Planning


wastewater
Evaluation of infrastructure and investment requirements
 
Conservation/
Resource
Management




Allocation of resources across regions e.g., water reuse
Identification and promotion of water conservation campaigns 

Issuance of regulations

Regulation

Enforcement of regulations and standards for cost recovery, service quality, and
consumer relations
Review and approval of tariff adjustment in accordance with rules and regulations


Provision of services including billing and collection
Business Operation



Maintenance and renewal of infrastructure
Funding and execution of investment programs


7
 Addressing deficiencies in the implementation of Law 221 (1/4)

Initiative # 1
Main Implementation Deficiencies of Law 221

Perform all priority actions required to complete the

The implementation of the
Initiated but not restructuring of WEs and address potential limitations,
reform law fully concluded mainly:
‒ Development of revised and improved organization

The transfer of functions to
Subject to several structures for WEs based on roles and responsibilities
the four WEs delays ‒ Drafting revised WE organization bylaws, supporting in the
approval process and following up on their enactment

Administrative and financial
WEs not yet fully ‒ Implementation of the restructuring of WEs
autonomy of WEs empowered ‒ Providing needed support for WEs to gradually reach full
administrative and financial autonomy

Has not been
developed yet Initiative # 2

The legal text to organize
the work of MEW
MEW still dedicated
Improve on the operating model between WEs and
to projects/O&M MEW to ensure an integrated water resource
management, mainly through:

Availability of funds and
WEs still suffer from ‒ Improvement in coordination
technical staff a shortage ‒ Ensuring an integrated management of water resources
‒ Providing operational and financial empowerment of WEs

Performance monitoring of
Not yet enforced together with proper mechanisms for performance
WEs management
‒ Ensuring the involvement of WEs in project planning and
implementation

8
Addressing deficiencies in the implementation of Law 221 (2/4)
- Organizational restructuring of MEW and performance evaluation -
Ministry of
Energy and Water

General Directorate of Hydraulic General Directorate of General Directorate of Oil

and Electric Resources Exploitation
Electrical Environ- Concession Financial & Financial &
Admin. Planning Studies Water Admin Tutelage Quarries Admin.
Equipment ment Oversight Economic. Economic.
Employees Planning Hydro- Legal Water Admin & Employees Financial Oil& Mineral
Water metry Irrigation Sanitation
Tutelage Financial Tutelage Exploration
Accounting Planning Expropriation Surface Employees & Financial
Electricity and Water Runoff Accounting Coordina- Accounting Manufacturi
Rights Technical Control &
Studies tors ng
Legal Programs Expropri- IT Control Accounting
Electricity Procur. & Transport &
ation Legal
Equipment Statistics Water Tutelage Distribution Storage
Projects
Rights
Archiving
Groundwater Projects Mt
and Geology Lebanon
Ground-
Projects Initiative # 3
North
water Projects
Geology South
Restructure MEW’s organization in line with the requirements of laws
Projects
Geotechnical
Petrography Bekaa 221 and 247 to reflect more focus on policy making, planning and regulatory roles:
Research &
Hydraulic
‒ Development of revised organization structures for MEW
Structure ‒ Drafting a revised organization law, supporting in the approval process and
Research
following up on its enactment
Structures
‒ Implementation of the restructuring of MEW
Hill Lakes

Initiative # 4
General
Directorate
Directorate
Develop the process for the performance monitoring and evaluation of
Unit Section WEs, including the monitoring body, performance indicators and targets,
Department and tools and procedures

9
 To this date, LRA
still doesn’t have an
Addressing deficiencies in the implementation of Law 221 (3/4) organization
- Organizational restructuring of WEs - structure
Organization Structure of North Lebanon Water Establishment Organization Structure of Beirut & Mount Lebanon Water Establishment
Initiative # 5
General Directorate

Control Secretariat &BoD Works Secretariat

General Directorate

Control

Improve on the
Technical & QC Admin & Financial Expenditure Control
Administrative BoD Affairs

Secretary
Technical & QC Admin & Fin.

Expenditure Control
performance efficiency
Administrative Affairs Financial Affairs Technical Exploitation
Admin. Affairs
Financial
Affairs
Technical Distribution of WEs to reflect:
Collective Fin. Acc & General Projects and Statistics and Hydraulic Tripoli & South Collect Ware
Admin North Region HR Procur. Stats. General & Project Mt Leb. Mt Leb. Mt Leb. Mt Leb.
Services Warehouse Accounting Programs IT Stations Surrounding Region

Registry &
Procurement
Budget &
Exp
Analytic
Programs&
Exploit. Statistics
Treatment
Admin Danniyeh Zghorta
Employee
& Legal and IT

Ststisti
Finance

Budget &
Accoun
t
Admin
Cashier
s
s
Studies and
Beirut

South
North
Jbeil
Station
South
Aley
Station
Labs Beirut

South
North South house
s ‒ More focus on irrigation
PR Accounting Plants Affairs Legal Liquidatio Account. Collection Design Beirut Beirut Jbeil Aley

and wastewater
Liquidation Rules cs s s
Registry & Employee
Bldg & Veh. General Purification Budget Financial Project Ops Ops Ops Customer Customer
Distr. Customer
Budget Studies IT Admin Admin Admin Purchas. Cashier
Archives Maintenance Accounting Plants Social
s IT Exp. Account. Suoervi Distr. Distr.
Expenses s
Building sion Maint. Maint. Maint. Sup.
PR

HR
Maintenance
Liquidation
Salary &
Rev.
Material
Accounting
Execution
Supervision
Pumping
Stations
Subscribers

Collections
O&M

Minieh
O&M

Bcharreh
&Medical
Safety &
Training
Liquid.
Cashiers
Checking
Material
Account. North


Beirut
Kesserwn

Stations

Baabda

Station

Sup.
Works
Works

Kesser
wan
Sup.
Works responsibilities, in addition
Vehicles

Employees
Social & Med.
Validation

Cashiers
Checking
Collection
Checking
Labs and
Workshops O&M Admin Admin Salarie
s
Ops

Maint.
Ops

Maint.
Ops

Maint.
North Beirut

Customer
Customer
Distr.

Sup.
Works
Baabda

Customer
to current water supply
O&M O&M Maint. Maint.

activities
Labs Connections Distr. Distr.
Affairs
Work Sec. & Upper Metn Upper Meth
Warehouses Workshops Sts
Networks Halba Koura Sup. Sup.
Training Works Customer Works

‒ Most suitable organization

Ops Distr.
Central Oversight
Legal Affairs Control Admin Admin
Maint. Sup.
Works
Maint.
O&M O&M

Qobayat Batroun

Coastal
Metn

Coastal
Metn

Customer
Distr.
for technical functions i.e.
Ops

Admin Admin Maint. Sup.

Works operation, maintenance
O&M O&M

for production,
Organization Structure of South Lebanon Water Establishment Organization Structure of Bekaa Water Establishment
General Directorate
transmission and
Expenditure Control Internal Control
distribution
General Directorate 212872

Legal Advisors Secretariat and BoD Affairs

Registrar HR and
Admin & Financial Tech. and QC

Plants and Distribution and

‒ Improvements to support
Finance

Expenditure Control Quality Control

(  )

Secretariat
Subscribers

‫الموارد البشرية‬
HR ‫دائرة‬
Administrative
Projects

Plants
Maintenance

Zahleh
functions e.g., Strategic
Accounting Agglomeration
Central
Administration
Accounting and
Financial Affairs
Customers Affairs
Production, Transfer
and Ww
Distribution Studies and Projects
IT and Statistics
Training and

Soc., Med. Affairs

Employees
Budget & Expenses

Revenues
Liquidation
Zahleh

Baalbek
Agglomeration
Zahleh Planning and Business
Rayak

Admin
Budgeting and
Financial Affairs
Customers service
and Promotion
Water Production
/ North Litani
Saida Planning and
Studies
Statistics and Work Security
Legal Affairs and
Validation
Salaries and Wages
Agglomeration
South Bekaa
Chtaura Planning, Water Demand
IT Procurement Baalbek

HR Accounting
Meters Reading
and Billing
Water Production/
South Litani
Jezzine

Nabatieh
Execution
Supervision
Lawsuits & Legal

Consultations
Public Accounting
North Bekaa Agglomeration

Baalbek
Management,
Laboratories

Procurement
Collection and
Cashiers
Wastewater /
North Litani
Zahrani
Procurement

Subscribers
Public Accounting
Analytical

Materials
Main Lab
Deir El Ahmar
Chmestar
performance
Marjeyoun - Accounting

IT Warehouses
Wastewater /
Hasbaya

Tyr
Zahleh and South

Baalbek and North

Bekaa
Accounting
Financial Accounting
 
Secondary

Programs and
Labs South Bekaa
management, more focus
South Litani Rachaya

Legal Affairs
Main Warehouse
Laboratories
Wadi Jilo Bekaa Financial

Accounting
Studies

Execution
Jeb Jennin
Machghara
on IT, Fixed Asset
Sec. Supervision

Warehouses
Bent Jbeil

Branch Offices
‫المختبــرات‬
Collection

Cashiers
North Bekaa Management, Supply
‫دائرةالمختبــرات‬
‫دائرة‬
(where
needed)
Al-Labwa

Al Hermel
Chain Management,
Directorate Department Unit Section
Warehouses

Main Warehouse
Customer Service, Control
Secondary

Warehouses
and Audit functions

10
 Addressing deficiencies in the implementation of Law 221 (4/4)
- Capacity and capability building - Initiative # 6

Provide the required manpower levels
and capabilities to ensure an appropriate
operation and maintenance of assets and
the delivery of water at optimal service

Perform bottom-up manpower planning based levels, through the:
on workload drivers, requirements and current ‒ Reduction of current vacancies (over 81%
and forecasted workload volumes for each at MEW and 67% in WEs) to required
activity according to recommended organization Assess the needs of MEW and
structures manpower levels according to
WEs for additional staff and recommended organization structures

Assess gaps given current number of employees training of exiting personnel

Assess capabilities of MEW and WE staff and ‒ Continuous development of staff through
identification of training requirements proper training

Recruitment Transfers Across Entities Training

Develop a staff selection process to fill gaps
Assess possibilities for transfer form other
Generate an up to date training course
where applicable entities list for use in the training needs

Develop job description for each required
Screen CVs and valuate potential candidates
Develop training budget, curricula &
position for required position calendar

Advertise for position
Conduct interview, evaluate and
Provide training courses

Screen CVs, shortlist and select candidates communicate decision
Complete the course evaluation s and
for interview provide feedback

Conduct interview, evaluate and
communicate decision

11
Allocation of planning and capital spending responsibilities
Initiative # 7

Enforce planning and capital spending
responsibilities and coordination among
various players in the water sector with a
MEW clear delineation of authorities, where:

Water Sector Strategy ‒ MEW is responsible for setting policies,

National Master Plans strategies and national planning

Policies ‒ CDR, WEs and LRA are in charge of

Regulations planning and securing financing of capital
Foreign and Local Financing projects based on national plans
(Grants/Loans, National Budget, Revenues) ‒ WEs, LRA and other national entities
develop their specific business plans and
MEW Directorates Others master plans according to policies and
CDR
WEs & LRA (CoS, HCD) guidelines of the national plan
Coordination Coordination

Financing Plan
Business Plans
Plans

Investment Plan
Master Plans

Design, implementation and
Design and implementation
Implementation of ad-

handover
Operations and maintenance hoc support projects,
mainly in crisis situation

Monitoring and Evaluation

12
 Improvement to the management of the irrigation sector

Initiative # 8

Water resource provision and
allocation
Involve stakeholder participation in the design and
Ministry of Energy and
National irrigation master plan management of projects to ensure sustainability according
Water
Policy making to best practices, through:

Large civil works ‒ Creation of formal Water Users Associations (WUAs) to replace the
different organizations currently in charge of O&M of irrigation
schemes
‒ Definition of roles and responsibilities with respect to water

O&M of main canals, intake management (including water quality) of the WUAs and other
structures and pumping partners, in close cooperation with the intended beneficiaries
stations often well above the ‒ Providing well-focused training related to the establishment and
Water Establishment farmers’ capacities management of WUAs to all involved parties
- “Irrigation Department” -
Assistance to WUAs in the
O&M of irrigation schemes, Initiative # 9
especially those which are in
bad state of repair

Improve irrigation water demand management and cost
recovery, and sustainability of irrigation schemes, through:
‒ Adjustment of irrigation water tariffs to cover O&M costs at a first

O&M of scheme at the stage, and periodically review and adjust water tariffs to reflect
secondary and tertiary levels actual costs (refer to Tariff Initiatives in next slides)
Irrigation Scheme ‒ Basing water charges on volume of water used rather than area.

Collection of water fees Where metering is not feasible at this time, base water charges on

Payment of fees to the WE a combination of a fixed charge to cover the basic services, and
Water Users Association responsible for providing the other charges which can be used as a proxy for the volume of
bulk water and other services water used, such as crop grown and/or hourly use of water
(WUA )

Water quality management ‒ Carrying out periodic public awareness campaigns to inform policy
and pollution control makers and farmers of water shortages that could be faced, and
the need for conserving irrigation water

13
Objectives of the Meeting
Institutional and Organizational Initiatives
Financial and Commercial Initiatives
Legal and Regulatory Initiatives
Environmental Concerns
2011-2015 Investment Plan

14
 Tariffs
Key Highlights of Current Tariff Structures Initiative # 10
Water Supply
Water Supply

Implement a new consumption-based tariff which includes fixed

Lebanon is one of the very few countries still
and variable (volumetric) charges for connections equipped
adopting a flat tariff structure
with customer water meters, where:

Volumetric charges prevented by lack of meters

Lack of volumetric charges limiting conservation ‒ Current lump-sum tariff should be temporarily maintained for
incentives at the consumer level, and unmetered customers
production/leakage reduction incentives at the ‒ No tariff increase would be introduced before concrete
improvements are brought to the water sector
WE level
‒ New tariff should be based on a proper cost analysis to cover, at a

Increased reliance on expensive private
minimum, O&M cost as a first stage
providers
Irrigation

Design and implement alternative irrigation tariff structures
Irrigation based on the specificities of existing and projected irrigation

The largest water consumer, with very limited schemes, where volumetric metering would be the preferred
metering, preventing volumetric charges solution wherever possible

Lack of awareness on water consumption and
Wastewater
conservation

Apply a new wastewater tariff to customers connected to a

High reliance on undeclared groundwater
sewer network and to a WWTP, where:

Collection not performed effectively by WEs
‒ New tariff should be based on a proper cost analysis and cover at a
Wastewater minimum O&M cost in an intermediate stage, with an introductory
tariff initially in pilot areas where full service (collection and

Tariff not yet applied, leading to a lack of
treatment) is available
incentive for limiting pollution
‒ Wastewater charges can be a percentage of the water bill

15
 Options for Private Sector Participation (PSP) vs. sector maturity

Highlights
Full cost
Given the current efficiency
recovery Divestiture / levels and low tariff collection,
BOO Management Contract would be
a common starting point for
Concession /
PSP in the downstream sub-
BOT
sector. It would prepare WEs for
Water Sector more advanced forms of PSP
Lease
Maturity
Management
Production/ Upstream is
Contract typically a more mature sub-
sector and is suitable for more
Service advanced PPP schemes
Contract
Low cost
recovery
No asset ownership; Responsibility of Asset ownership with
with operational Private Sector operational and
responsibilities commercial
responsibility

16
Sector reform and PSP approach While PSP is likely to be one of the
main enablers of improvement, it
should be supported by a holistic
reform approach

1

Introduce private sector to increase efficiency, improve service and ensure
Select and implement continuous and general access to quality water
suitable PSP approach

2

Review policies related to water usage and resources, tariffs, water quality
Review water sector and environment, and investment climate
policies

3

Review role of existing institutions
Improve Institutional
Design new institutions to support PSP and reform initiatives
Setting
Restructure and reorganize institutions

17
Initiatives related to PSP

Key Lessons Learnt Initiative # 11

Lebanon still lags behind a number of countries in the
Provide support in developing the adequate legal
MENA region who have already an experience in PSP institutional and regulatory setting to promote
PSP, in a way to ensure the interests of the

The legal framework governing PPP activities in not yet Government and the Lebanese population, and
ready provide an attractive environment to the private
sector, through:

While PSP is likely to be one of the main enablers of ‒ Finalizing legal texts, existing or under
improvement, it should be supported by achieving a development and developing any additional
legislation
holistic reform and a sound enabling environment
‒ Ensuring needed approvals from relevant

The participation of the private sector is seen as an authorities
enabler to incorporate know-how and fresh capital
Ensure the readiness of the water sector from all
aspects (e.g., institutional, organizational,

Given inefficiency and low tariff collection, financial, legal and regulatory) to guarantee the
Management Contracts would be a starting point for success of future transactions (this initiative is
addressed throughout this document)
PSP in the downstream sub-sector. It would prepare the
sector for more advanced forms of PSP

Production/ Upstream is suitable for more advanced

PSP schemes (e.g., BOT)

18
Objectives of the Meeting
Institutional and Organizational Initiatives
Financial and Commercial Initiatives
Legal and Regulatory Initiatives
Environmental Concerns
2011-2015 Investment Plan

19
“Code de l’Eau”

Key Components of the Water Code

Initiative # 12

Recognition of the main legal principles prevailing actually in
the field of water:
Produce the final version of the draft
Water Code and follow up the process
‒ the sustainable management for its effective implementation and
‒ the right of each citizen to receive water enactment, through:
‒ the determination of the missions of the Public ‒ The approval of the Ministry of Energy
and Water
Authorities to provide drinking water, the treatment of
wastewater, the fight against flood, drought and ‒ Discussion and adoption by the Council
of Ministers
pollution
‒ Transfer by decree to the Parliament for

Introduction of a National Water Council including the final approval and implementation
representatives of the main authorities in charge or
concerned by the water sector

Implementation of a Water master plan to guarantee the
realization of water and wastewater infrastructure

Recognition of the administrative, environmental economic
and financial requirements of water resource management

Determination of the utilization of water including the legal
possibilities to Private Sector Participation

20
Implication of the NWSS on legal requirements

Key Legal Highlights Initiative # 13

Lebanon is endowed with a tested
Strengthen the legal framework in order to improve the performance
of the delivery of water and wastewater services and support the
80 years-old body of legislation in implementation of the proposed strategic initiatives, including:
this field of water and related
‒ Improvements to current organizational bylaws of WEs
issues
‒ Development and enactment of new organizational law for MEW’s

In recent years, the water sector in restructuring
Lebanon, albeit vital for socio- ‒ Reevaluation of some provisions of law 221/2000 in view to strengthen the
economic development, has been capacities of the management and to provide better performance to the
end users
the object of few structural legal
‒ Establishment of an efficient regulatory framework
changes
‒ Setting of a transparent tariff structures

The modernization and updating of ‒ Development of a wastewater collection and disposal regulations
the legislation do not necessarily
‒ Improvement of irrigation regulation bylaws
imply a complete juridical overhaul
‒ Providing adequate legal environment to promote private sector
of the legal principles, but rather, a participation
more comprehensive method of ‒ Development of performance based incentives (e.g., procurement
drafting based on advanced framework, )
juridical, socio-economic and ‒ Ensuring normal access to potable water and sanitation including
scientific analysis requirements for a proper implementation of operational and quality
standards

21
Objectives of the Meeting
Institutional and Organizational Initiatives
Financial and Commercial Initiatives
Legal and Regulatory Initiatives
Environmental Concerns
2011-2015 Investment Plan

22
 Water Resources and Climate Change
Anticipated Initiative # 14
Projected Variations
Trends More
1 ⁰C on the coast and 2 ⁰C inland by 2040 Predictable
Improve / refine climate change
Temperature 3 ⁰C on the coast and 5 ⁰C inland by 2090 knowledge, and particularly its
Beirut: 1% by 2044 & 2% from 2044 to 2098 implications on the water sector
Evapotranspiration Cedars: 5% by 2044 & 8% from 2044 to 2098 and its vulnerability (i.e.
Zahleh: 26% by 2044 & 10% from 2044 to 2098
refinement of models and
Between 10% & 20% by 2040 figures):
Precipitation Between 25% & 50 % by 2090
– Collect, analyze and develop
50% with 2 ⁰C warming, & mean width ~20cm
Snow (i.e, Cenomanian plateau of Nahr Ibrahim trends for climatic data
width 2,000m altitude) (precipitation and temperature)
Snowpack covering all Lebanon, to

Predictability
1,500 - 1,700 m with 2 ⁰C warming
altitude 1,700 - 1,900 m with 4 ⁰C warming compare with historic data and
Snow

detect possible deviations

Snowpack 1,200 - 700 MCM with 2 ⁰C warming – Establish a unified database to
volume 700 – 350 MCM with 4 ⁰C warming
include all water monitoring
Snowing Begin – end of each season reduction 1 – 3 data and maintain it regularly
period weeks updated
– Develop and implement long-
Surface Runoff term river, spring and snow
cover monitoring programs
Infiltration (Recharge) – Update periodically water usage
scenarios and thus water
6 to 8% with 1 ⁰C warming management options
Water Resources 12 to 16 % with 2 ⁰C warming Less
Source: MoE, UNDP Certain

23
Water & Environment
Current situation Initiative # 15

Groundwater pollution:
Improve water quality and protection of
– Increasing salinity recharge zones:
– Contamination by nitrates & pesticides – Review and upgrade water quality standards
– Take actions to protect against contaminants

Surface water pollution:
that may be found in drinking water and its
– Bacteriological contamination (
sources
Water – Chemical contamination (excessive use of fertilizers,
– Design and implement a comprehensive
Resources direct discharge of industrial effluent, olive oil residues,
integrated surface & groundwater quality
open dumping)
monitoring network
Surface and
Permanent sources of pollution (n=82) along 225 km of coast – Develop a implement a concept for
Groundwater (wastewater discharge, chemicals, oil residues, turbid water, protecting recharge zones
warm water and dumps/landfills) – Centralize data and ensure communications

Limited protection of water resources/ recharge zones with the consumers
– Design and implement an integrated

Damages from flash flooding: cost up to 2.5 million USD dollars monitoring system for irrigation water quality
per event (e.g. 2001 flood in Hermel region)

Develop flood mitigation arrangements:
– Establish a flood plain zoning

Drinking water Standards (1999): decree # 1039 – Develop an integrated flood management
Usages
Drinking purposes, swimming purposes and aquatic life (1996): plan
MoE decision 52/1 – Assess the potential use of flood water for
Potable
Water quality mostly unknown at user level (water provided groundwater recharge
Irrigation from WEs or alternative water sources) – Support initiatives aiming at combating
Industrial
Monitoring data is scarce and situation poorly monitored desertification

Monitoring of irrigation water quality quasi absent

Improve wastewater quality:

Standards for wastewater discharge set in 2001 (MoE decision – Review and update water quality standards
8/1) for wastewater discharge

Coverage of wastewater network (~60 % ) – Review and adopt draft standards for
Wastewater
Wastewater treatment (~8%) wastewater reuse in agriculture & sludge

Draft standards for sludge reuse set in 2010 reuse

Draft standards for wastewater reuse in agriculture set in 2010 – Implement pollution control programs
Source: MoE, UNDP

24
 Strategic Environmental Assessment (SEA)
According to the World Bank,
the cost of environmental
degradation: ~ 1% of GDP
SEA – Main Steps

Does the proposed strategic action affect the Initiative # 16

Screening
environment?

Evaluate environmental
What are the driving forces/issues/ components consequences of the
Scoping
that should be addressed? proposed NWSS to ensure
they are :
Were the opinions of affected groups taken into
Stakeholder involvement – fully included
consideration?
– addressed appropriately at
Were the potential impacts identified & the earliest possible stage
Performing the assessment
assessed? of decision making on par
with economic and social
What documents & data need to be included & considerations
Submission of SEA report
presented in an objective manner?
Peer review & integration of SEA Were the original set objectives fulfilled & were
finding the stakeholders feedback accounted for?
To decide on the proper environmental
Decision making
arrangements regarding the proposed strategy
Did SEA influence decision and result in
Monitoring & Quality assurance
greening public decisions?

Source: MoE, UNDP

25
Objectives of the Meeting
Institutional and Organizational Initiatives
Financial and Commercial Initiatives
Legal and Regulatory Initiatives
Environmental Concerns
2011-2015 Investment Plan

26
 CAPEX – Lebanon, 2011-2015
Capital Expenditure Requirements for Lebanon Water Sector, 2011-2015
(By Sub-Sector, in USD Million) Additional resources include
optimization of spring
outflow, artificial recharge of
aquifers and surface storage
1,108 1,083 Ground Springs,
1,033 Storage 50
70
902 906 55
480 393 2,160
Wastewater(2) Surface
565 344
378 Storage
91 , 1,015
87 Irrigation
42 86 343
37 305 1,394
302
221 285 282 Water Supply 5,086

294 Additional 1,134

210 198 238 194 Resources(1)

2011 2012 2013 2014 2015

Split between types of additional water resources

Supply

Wastewater

Total
Resources

Initiatives
Irrigation

Enabling
Water
Additional
192 181 210 266 165 Surface Storage
8 8 18 18 18 Ground Storage
10 12 10 10 10 Springs
Note: (1) Additional resources include optimization of spring outflow, artificial recharge of aquifers and surface storage; (2) wastewater includes collection and treatment

27
 Initial Draft - For Validation BML, North, South and Bekaa
refer to geographic areas or
Mohafazats and not WEs
CAPEX – WEs, 2011-2015 (in USD Million) specifically
BML North

486 486
416
394 401
170
214
151 143
254 300 217
201 200 WW: 597 MUSD
46 169 WW: 724 MUSD 80 150 Irr.: 35 MUSD
175 158 80 70
119 172 9 9
WS: 793 MUSD 4 4 36 39 67 WS: 167 MUSD
29 34
147 9
29
89 97 101 Res.: 505 MUSD 83 83 91 83 Res.: 385 MUSD
71 45
Total: 2,022 MUSD Total: 1,184 MUSD
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
South Bekaa

WW: 457 MUSD WW: 381 MUSD

247 228
222
196 Irr.: 169 MUSD 183 Irr.: 139 MUSD
167 83 73 166 149
102 WS: 340MUSD 140 125 WS: 94 MUSD
120 80 46 41 85
42 100 67 69 61
17 22 78 75 Res.: 94 MUSD 15 36 Res: 150 MUSD
72 15
17 18 19 36 36
55 61 40 40 34 40 43 19
24 21
4 4 6 8
Total: 1,060 MUSD Total: 765 MUSD
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

28
 Water Supply and
OPEX – Lebanon, 2011-2015 Irrigation OPEX includes
the share of OPEX related
to corresponding dams

Operational Costs for Lebanon Water Sector, 2011-2015

(By Sub-Sector, in USD Million)

179

156 24
144
20 23 77
132
15
122 11 22 104
7 21
19
19 Wastewater

Irrigation 732
132
108 114 552
96 102 Water Supply

2011 2012 2013 2014 2015 Water Irrigation Wastewater Total

Supply

29
 Initial Draft - For Validation

OPEX– WEs (2011-2015, in USD Million)

BML North
74
66 5
62 2
58 4
53 3 2
2 2
1 2
2 44

WW: 17 MUSD 33 12 WW: 38 MUSD

66 29
57 60 26 10 6
50 53 Irr.: 10 MUSD 22 8 Irr.: 25 MUSD
3 5 5
5 5 5
WS: 287 MUSD 26 WS: 92 MUSD
15 16 17 19

Total: 314 MUSD Total: 154 MUSD

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
South Bekaa

30 32
26 28 WW: 16 MUSD 26 28 WW: 6 MUSD
24 4 5 22 23 24 1
2 3 3 3 1 1 Irr.: 52 MUSD
1
3 3 3 Irr.: 17 MUSD 1 1 12
9 9 10 12
22 23 24 WS: 108 MUSD WS: 65 MUSD
19 20 15
12 12 13 13
Total: 141 MUSD Total: 123 MUSD
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

30
Policies/targets for tariffs and revenues

Volumetric tariff to be introduced in pilot areas of fully metered connections (25% of customers in
2012) and gradually rolled out (75% of customers by 2015). Rate per m3 to be maintained at an
average of USD 0.39 until 2014 and then increased to reach O&M recovery by 2015 an full cost
Water Supply recovery by 2021

Current lump-sum tariff to be temporarily maintained for unmetered customers

Number of subscribers to be increased through improved coverage and customer surveys

Collection to be improved from current national average of 47% to 60% by 2012 and 80% by 2015

Tariffs to be structured based on the specificities of each irrigation scheme (currently assumed: 10%
volumetric, 30% per hour, 60% per area). Volumetric metering would be the preferred solution
wherever applicable (target by 2015: 60% volumetric, 20% per hour, 20% per area)
Irrigation
Rate per m3 to be maintained at an average of USD 0.12 until 2014. Rate per hour to be kept at an
average of USD 6. Rate per ha USD 400/yr. All rates are to be increased by 20% starting 2015 to reach
O&M recovery by 2020

Collection to be improved from current national average of <10% to 30% by 2012 and 60% by 2015

Collection and treatment to at least preliminary level of 80% of wastewater by 2015, and of 95% by
2020. Secondary treatment and reuse of all wastewater by 2020

The new WW tariff (25% of the WS tariff at an initial stage) to be introduced in 2011 to pilot areas
Wastewater where all customers are connected to a sewer network and to a WWTP, to gradually reach full recovery
of all O&M costs by 2020

Wastewater charges can be a percentage of the water bill

31
Revenues – Lebanon, 2011-2015

Revenues for Lebanon Water Sector, 2011-2015

(By Sub-Sector, in USD Million)

201

50
17 100
133 7

106 26
4 Wastewater
86 14
74
3 600
7
2
3
1 145 Irrigation 483
103
88
69 77 Water Supply

2011 2012 2013 2014 2015 Water Irrigation Wastewater Total

Supply
Projected financial performance of the Lebanon water sector (USD Million)
Higher CAPEX in 2011-2015 include
rehabilitation/ replacement of existing over- O&M Cost
aged assets and the need for additional water Recovery
resources

Total Revenues 133 201

74 86 106
Operational Costs (122) (132) (144) (156) (179)

(902)
(1,033) (906)
Capital Expenditures (1,108) (1,083)

Tariffs 2011 2012 2013 2014 2015

WS (USD/m³): 0.39 0.39 0.39 0.39 0.45

WW (USD/m³): 0.10 0.10 0.10 0.10 0.23
Irrigation
Volumetric (USD/m³) 0.12 0.12 0.12 0.12 0.14
per hour (USD/hour) 6.00 6.00 6.00 6.00 7.20
per area (USD/ha) 400.00 400.00 400.00 400.00 480.00

33
 Ongoing and planned projects (1/2)
Total of 321 projects, with a budget
of USD 2.45 Billion Average Completion
Ongoing and Planned Projects (2001-2015) (in USD Million) (1) Rate of Projects
Due by May 2010(2)
80%
14% 379
Additional Water Resources 6%
67% 67%
6 5 12 Total 23 Projects

Water Supply 22% 56%

22% 812 66% 66%
Transmission and Distribution
19 43 177 Total 239 Projects(3)

Wastewater 27% 60%

1,011 76% 76%
13%
Collection and Treatment
13 18 24 Total 55 Projects

Irrigation 0.1% 3.6% 96.3% 249 30% 30%

1 2 1 Total 4 Projects
Official Due Date Due after Total Investments
Planned
by May 2010 May 2010 (2001-2015)
Note (1) Approximated with CDR projects, donor funded projects, MEW projects, and WE projects; (2) CDR estimations; (3) Assuming that the 5-year plans of the WEs cover 169 projects
Source: PMO – Booz & Company

34
 Ongoing and planned projects (2/2)

Ongoing and Planned Investments Timeline

A total of USD 2.45 Billion(1)
channeled through various (2001-2015) (in USD Billion)
stakeholders is funding the design and implementation of
current and planned projects

Around USD 1.6 Billion is planned to be spent on new 65%
projects 2.45

Investments have a low return with a poor execution 14% 21%
rate and low assets and investments utilization, due to
inadequate sequencing and funds’ misallocation Official Due Date by Ongoing (3) Planned (4) Investments
May 2010 (2) (2001-2015)

66% of total investments are financed by foreign funds Ongoing and Planned Investments per Source of Funding and Sub Sector(1)
(2001-2015) (in USD Billion)
and 34% by local funds
66% of 1.62 Irrigation

60% of local funds are financed by MEW/ WEs and 40% by total
CDR 14% 34% of Water Supply
30% total 0.83 Waste Water

In the absence of a plan, foreign donors support projects
in line with a specific agenda (i.e., mainly waste water in 3%
line with Barcelona convention) 56% 85%

Internal investments are not driven by a supply demand 12%
analysis, but often influenced by political agendas Foreign Funds Local Funds

Note: (1) Approximated with CDR projects, donor funded projects, MEW projects, and WE projects; (2) Average Completion rate 68%; (3) Started projects whose end date is later than May 2010;
(4) Start date later than May 2010; (5) Disbursement over the sum of signed and planned projects
Source: PMO - Booz & Company

35
Next Steps…

36
Next Steps

Compilation of the full strategy into a single document

Development of the strategic roadmap and implementation plan

Socializing of the document and follow up on the approval process

Initiation and overseeing the implementation of initiatives

37