PRTR: Bangladesh: Dhaka Water Supply Sector … · Since WASAs have started exercising their powers, the legal provisions of the WASA Act, 1996 are appropriate

Progress Report on Tranche Release

This consultant’s report does not necessarily reflect the views of ADB or the government concerned. [For PTAs: the views expressed herein may not be incorporated into the proposed project’s design.]

Project Number: 39405 Loan Number: 2383 November 2011

Bangladesh: Dhaka Water Supply Sector Development Program (Second Tranche)

CURRENCY EQUIVALENTS (as of 3 November 2011)

Currency Unit – taka (Tk)

Tk1.00 = $0.01311 $1.00 = Tk76.25

ABBREVIATIONS

ADB – Asian Development Bank DMA – Dhaka metropolitan area DPHE – Department of Public Health Engineering DWASA – Dhaka Water Supply and Sewerage Authority DWSSDP – Dhaka Water Supply Sector Development Program LGD – Local Government Division NGO – nongovernment organization NRW – non-revenue water O&M – operation and maintenance SDP-WSSB – Sector Development Programme—Water and Sanitation

Sector in Bangladesh WASA – water supply and sewerage authority

GLOSSARY

mistries – plumbers pourashava – peri-urban town

NOTES

(i) The fiscal year of the Government of Bangladesh and its agencies ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 30 June 2011.

(ii) In this report, "$" refers to US dollars.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Vice President X. Zhao, Operations 1 Director General S. H. Rahman, South Asia Department (SARD) Director M. T. Kho, Urban Development and Water Division, SARD Team leader M. Sharma, Urban Development Specialist, SARD Team members K. M. Emzita, Senior Counsel, Office of the General Counsel J. Zheng, Urban Development Specialist, SARD


CONTENTS

Page

I. INTRODUCTION

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II. BACKGROUND 1

III. PROGRAM PERFORMANCE AND THE STATUS OF POLICY ACTIONS

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A. Policy Conditions 2 B. Other Policy Actions 10 C. Turnaround Plan of DWASA 13 D. Status of Compliance with Policy Conditions

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IV. CONCLUSION 15

V. THE PRESIDENT’S RECOMMENDATION

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APPENDIX

1. Documents Related to Policy Conditions 17

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I. INTRODUCTION

1. On 10 December 2007, the Asian Development Bank (ADB) approved a program loan, a project loan, and a technical assistance grant to the Government of Bangladesh for the Dhaka Water Supply Sector Development Program (DWSSDP).1

The objective of the DWSSDP is to contribute to sustained economic growth and improved public health conditions in the urban centers of Bangladesh by improving the water supply services in the Dhaka metropolitan area (DMA). ADB’s Special Funds resources financed the program loan of $50 million, the project loan of $150 million, and the technical assistance grant of $2.5 million. The program and project loans have been designed to complement each other in achieving the DWSSDP’s objectives.

2. The project loan will contribute to the sustainable provision and operation of urban water supply services in Dhaka by rehabilitating and strengthening the water supply system based on the long-term investment roadmap. The Local Government Division (LGD) of the Ministry of Local Government, Rural Development and Cooperatives is the executing agency of the DWSSDP. The program loan will support the reforms in the urban water supply sector by improving the management and operation of urban water supply services. The loan agreements were signed on 12 December 2007 and became effective on 14 December 2007. The program loan has two tranches. The first tranche of $25 million was disbursed in December 2007. The second tranche was expected to be released in December 2010 but has been delayed due to slow progress in achieving full compliance with the required policy conditions.

II. BACKGROUND

3. The DWSSDP was prepared in accordance with the government’s National Poverty Reduction Strategy, 2005 and the Sector Development Programme–Water and Sanitation Sector in Bangladesh (SDP-WSSB), 2006. Dhaka Water Supply and Sewerage Authority (DWASA), responsible for operating and managing water supply and sewerage services in Dhaka, is the implementing agency for the DWSSDP for the DMA. In 2007, the government and DWASA were facing challenges in supplying safe and reliable water to the capital city of Bangladesh. At the time, DWASA served 70% of the DMA, which accommodated almost one-third of the country’s total urban population. With the DMA’s population expected to reach 17 million in 2025, DWASA’s service coverage would be reduced to 45% of the DMA, leaving the majority of the city with untreated water sources. 2

The project and program loans were developed to support the government and DWASA to meet these challenges.

4. At the time the DWSSDP was prepared, water supply and sewerage service providers across the country were facing institutional and financial constraints in recovering user charges, controlling losses, and effectively managing the institutions. These constraints were common for all water supply and sewerage authorities (WASAs) and pourashavas in the country, though DWASA was performing relatively better. Therefore, a sector-wide reform approach was included in the DWSSDP to address the major challenges faced by WASAs and pourashavas and to improve the governance of these institutions.

5. The DWSSDP is the first phase of a long-term support program for the urban water supply sector agreed by the government and development partners. The government is 1 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loans and

Technical Assistance Grant to the People’s Republic of Bangladesh for the Dhaka Water Supply Sector Development Program. Manila.

2 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loans and Technical Assistance Grant to the People’s Republic of Bangladesh for the Dhaka Water Supply Sector Development Program. Manila.

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committed to continuing efforts to strengthen DWASA’s current water supply system as well as to providing alternative sustainable surface water sources to address the issue of depleting ground water table in Dhaka.

III. PROGRAM PERFORMANCE AND THE STATUS OF POLICY ACTIONS

6. The program loan supports the reforms in the urban water supply sector of improving the management and operation of urban water supply institutions. To release the second tranche, sufficient progress needs to be achieved in 14 policy actions that are conditions for release and 13 other policy actions that are not conditions for release. The list of documents reviewed for compliance of the 14 policy conditions is in Appendix 1. A. Policy Conditions

1. Improving Local Governance and Strengthening Local Institutional Framework

7. Policy Condition 1: LGD shall issue an administrative order to decentralize and give broader administrative and financial autonomy to the Pourashavas and WASAs to (i) manage water supply, including the installation, operation and maintenance, (ii) billing management and (iii) set and increase tariff structure (complied with). The urban water sector in Bangladesh is primarily managed by WASAs and pourashavas. While preparing the program loan, the government and ADB realized that the lack of administrative and financial autonomy of WASAs and pourashavas was constraining their effective functioning. For example, they both had to seek the government’s approval to create posts, appoint staff, or increase tariffs. The purpose of this policy condition was to enable a proper administrative and legal framework to decentralize and delegate adequate powers to WASAs and pourashavas. Since the program loan was approved in 2007, the government has taken the following legal and administrative actions to increase the autonomy of pourashavas and WASAs to manage water supply in their respective jurisdictions:

(i) Dhaka Water Supply and Sewerage Authority (Financial) Regulations (Financial Regulations), 2009 3

(ii) Dhaka Water Supply and Sewerage Authority (Officers and Employees) Service Regulations (Service Regulations), 2009

authorizes officers, the managing director, and DWASA board to make decisions related to financial management, except in cases where government funds are used. The current assessment is that—as per the WASA Act, 1996 coupled with the Financial Regulations—DWASA has the power to exercise financial autonomy to manage its affairs.

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(iii) For the management of water supply and sewerage, DWASA has prepared draft rules—Dhaka Water Supply and Sewerage Authority (Water Connection and Water Rates) Rules, 2010 and Dhaka Water Supply and Sewerage Authority

authorizes DWASA to take decisions related to personnel management such as appointment, terms and conditions of employment, leave, allowances, service records, retirement, and discipline and control. The current assessment is that—as per the WASA Act, 1996 coupled with the Service Regulations—DWASA has autonomy in matters of personnel management. DWASA is required to follow government directions in few areas that are common to all public servants in the country.

3 Dhaka Water Supply and Sewerage Authority (Financial) Regulations, 2009 were published in gazette on 27 July

2010. 4 Dhaka Water Supply and Sewerage Authority (Officers and Employees) Service Regulations, 2009 were published

in gazette on 27 July 2010.

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(Sewerage Connection and Sewerage Rates) Rules, 2010. These rules have been approved by DWASA and are in the process of notification in the gazette.

(iv) The Local Government (Pourashava) Act, 2009 was enacted to establish pourashavas as elected bodies with the mandate to provide civic amenities, including water supply and sewerage. The Pourashavas Act, 2009 enumerates detailed procedures, committees, powers, and authorities to facilitate pourashavas to discharge their functions.

(v) Realizing the importance of focusing on water supply and sewerage functions in large cities such as Khulna and Chittagong, the government created separate specialized agencies similar to DWASA such as Khulna Water Supply and Sewerage Authority, and Chittagong Water Supply and Sewerage Authority under the WASA Act, 1996.5

8. Since 2007, the government has taken many actions to decentralize and give broader administrative and financial autonomy to WASAs and pourashavas and is fully committed to move further in this regard. This was confirmed further through the legal opinions obtained from reputed independent legal experts;6

their opinion is that—as per provisions of the WASA Act, 1996 and the Pourashavas Act, 2009—WASAs and pourashavas have administrative and financial autonomy in (i) managing the water supply, except that the schemes funded by the government require prior government approval, and (ii) carrying out billing management. Regarding setting and adjusting tariffs, WASAs have authority under the WASA Act, 1996 to increase tariffs by as much as 5% annually; with approval from the government, they can increase them by more than 5% annually. While this division of authority between WASAs and the government existed at the time the program loan was formulated, WASAs did not exercise their powers and sought approval from the government even for tariff increases of up to 5%. Further, before 2007, tariffs were not increased every year. Since approval of the program loan in 2007, WASAs have exercised these powers adequately, which is evidenced by 5% increases in tariffs by DWASA every year without seeking government approval. Considering that WASAs are statutory authorities (rather than elected bodies), the balance of power between them and the government is appropriate if they exercise their powers according to the WASA Act, 1996. Since WASAs have started exercising their powers, the legal provisions of the WASA Act, 1996 are appropriate. The Pourashava Act, 2009 does not put restrictions on the powers of pourashavas to increase tariffs. In practice, pourashavas seek government approval to make any adjustment to tariffs, which seems to be the agreed practice.

9. Policy Condition 2: LGD shall prepare a study on the most appropriate form of an independent water regulator for Bangladesh and make recommendations to the Cabinet. The study shall include clarification on the functions, roles and responsibilities of the regulator (complied with). Learning from the good practices of regulatory bodies in telecommunications and power sectors, the government realized that the water sector needs a regulator to protect the interests of water utility customers and to ensure a fair, stable, and enabling environment for service providers and customers. Accordingly, this policy condition was formulated to support the Local Government Division (LGD) to prepare a study on the most appropriate form of an independent water supply regulatory commission for Bangladesh and to make recommendations to the government. In compliance, the government commissioned a study, 'Recommendations for a Water Regulatory Framework for Bangladesh,' whose final 5 Notification for creation of Khulna Water Supply and Sewerage Authority was published in gazette on 25 February

2008. Notification for creation of Chittagong Water Supply and Sewerage Authority was published in gazette on 20 April 2008.

6 Syed Ishtiaq Ahmed Associates, Dhaka, was engaged by ADB to provide legal opinions on the WASA Act, 1996, DWASA Financial Regulations, DWASA Service Regulations, DWASA Water Connection and Water Rates Rules, DWASA Sewerage Connection and Sewerage Rates Rules, and the Pourashava Act, 2009.

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report was submitted in May 2010. The National Water Forum discussed the report and approved a two-stage process in its 12th meeting on 4 April 2010. In the first phase, the Policy Support Unit under the LGD is required to expand its function to work as a water supply regulator to monitor water utilities and promote institutional reforms; in the second phase, an independent regulatory commission is to be established. The LGD formally approved the report and issued a notification dated 19 January 2011 to establish a Regulatory Framework (Water Cell) in the Policy Support Unit under the LGD, which has now become functional. The actions taken by the government so far are suitable and reflect the government’s strong commitment; however, development partners will need to continuously engage with the government to ensure that a full-fledged independent regulatory commission is established as envisaged. 10. Policy Condition 3: LGD and DPHE shall prepare a 5 year capacity building program for the Pourashavas water section staff and WASAs’ staff. The capacity building program shall include training in the following areas: (i) meter connections, (ii) water conservation, (iii) operation and maintenance, (iv) billing and accounting, (v) financial management, and (vi) public health etc. (complied with). The purpose of this policy condition was to ensure the government’s commitment to a long-term plan to enhance the capacity of the staff constantly in order to improve the performance of the water supply utilities and to cope with the increasing demand for high-quality services. To enhance the capacity of DWASA in managing water supply services, DWASA prepared a 5-year capacity building plan in May 2010 with support from financial and capacity building consultants recruited under the project loan, and the capacity building plan was endorsed by DWASA management. DWASA sent a formal letter to ADB in this regard on 6 January 2011. Similarly, a 5-year capacity building plan for pourashavas was finalized and endorsed by the Department of Public Health and Engineering (DPHE) on 27 September 2010. These capacity building plans provide systematic strategies for human resource development and have been prepared on the basis of training needs assessment. The plans propose comprehensive lists of trainings, which include the training areas mentioned in the policy condition and other relevant areas such as general management, business and finance, information technology, technical subjects, and public awareness. Along with the plan, training modules have also been developed to ensure the quality of trainings. 11. Policy Condition 4: Starting from 2010, LGD, the Pourashavas and the WASAs shall implement the program. LGD shall allocate sufficient budget annually to the Pourashavas and the WASAs to implement the program (partly complied with). DWASA and pourashavas are fully committed to implement the human resources development program and have been implementing the activities identified in the program since 2010. As per the approved program, some of the activities already implemented are:

(i) DWASA Training Centre has organized in-house trainings on many issues: revenue billing and collection, citizens' charter, computer skills, efficient pump operations, accounting and financial management, employees’ conduct and discipline, maintenance of generators, office management, public procurement, occupational health and safety, project planning and management, chlorination, total quality management, and communication. In one year, approximately 60 courses have been organized for more than 1300 participants. Similarly, the DPHE organizes in-house trainings for pourashavas staff.

(ii) DWASA and pourashavas send their staffs to various academies, institutes, and training centers for specialized courses such as Auto-CAD, office management, training-of-trainers, hardware maintenance and trouble shooting, English language proficiency, and specialized technical skills courses.

(iii) DWASA and pourashavas staffs are also sent for specialized foreign trainings, workshops, and seminars.

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(iv) Under the project loan, financial and capacity building consultants work closely with DWASA to build the capacity of the staff and to develop and make operational new systems and procedures.

(v) To support the capacity-building program and the business plan, DWASA has allocated sufficient budget in FY2011 for the program, which is more than the amount approved under the human resources development program and is also committed to allocate sufficient budget in FY 2012. Although the DPHE has not allocated sufficient budget in FY2011 as per the approved human resource development program, it is committed to enhancing the allocation in FY2012.

2. Improving Financial Sustainability

12. Policy Condition 5: LGD and DPHE shall issue a joint decree that will allow the Pourashavas to keep and utilize their water billing revenues. LGD shall instruct each of the Pourashavas to have a separate account for water revenues, to establish a double-entry book keeping and to maintain inventory of the pourashava’s water supply assets (complied with). This policy condition was included to emphasize the government’s commitment to the SDP-WSSB to ensure financial sustainability of pourashavas and WASAs. The LGD issued a circular dated 6 August 2009 that was applicable to all pourashavas that have water supply system as a function. Since pourashavas are under administrative control of the LGD, the circular is binding on all pourashavas. The circular fulfilled all the requirements for the conditions of this policy by mandating that (i) the water supply section of each pourashava will retain its own billing revenue, (ii) each pourashava will establish a completely separate account for the revenue earned from its water supply head, (iii) each pourashava will introduce a double entry book-keeping system at its water supply section, and (iv) each pourashava will maintain a regular inventory of all the assets of its water supply section. The government has fully complied with the policy condition with appropriate administrative instruments.

3. DWASA Governance, Organizational Structure, and Financial Management

13. Policy Condition 6: DWASA shall prepare and approve a human resource development medium term strategy for DWASA. The strategy shall include plans for staff recruitment and retention, staff training and development and salary increase projections (complied with). The purpose of this policy condition was to achieve good governance, improvement in DWASA’s organizational structure and management, and compliance with the WASA Act, 1996. At the time of formulation of program loan, three main issues related to implementation of the WASA Act, 1996 were pending: (i) appointment of a managing director, (ii) approval of an organizational chart, and (iii) implementation of the rules and regulations of the WASA Act, 1996. At that time, managing directors were changed frequently, and the previous four managing directors were seconded from the government. In compliance with this policy condition, qualified, competent, and experienced professionals are now selected as managing directors with stable tenures. DWASA board and the managing director have started exercising their powers without undue interference from the government. In agreement with the long-term strategic business plan, DWASA prepared a human resource development plan that was endorsed by its management in 2010. On 6 January 2011, DWASA sent a formal letter conveying its endorsement to ADB. As per the human resource development plan, DWASA has restructured its organogram and rationalized its staff with a focus on recruiting senior technical and managerial professionals. The ratio of staff per 1,000 water connections has dropped from 17 in 2007 to 10 in 2011 and compares favorably with many well-managed water utilities in the world. There are only 300,000 connections to serve a population of 12.5 million, averaging almost 40 consumers per connection. If connections are rationalized with 8–10 consumers per connection, the ratio of staff per 1,000 connections will be reduced further. A large water utility

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the size of DWASA is operating with approximately only 3,300 employees, which is well below that in many similar water utilities in South Asia. Moreover, the top officers, including the managing director and 2 out of 4 deputy managing directors, are recruited from the open market through a competitive process and market-based salaries. Regarding the rules governing personnel management, DWASA Service Regulations7

authorize DWASA in matters related to appointment, terms and conditions of employment, leave, allowances, service records, retirement, discipline and control. The current assessment is—per provisions of the WASA Act, 1996 coupled with the Service Regulations—that DWASA has sufficient autonomy in personnel management. Due to the proper enforcement of the WASA Act, 1996, strong management, and an expert board— DWASA is gradually gaining ownership of its operations.

14. Policy Condition 7: DWASA, with the approval of LGD, shall issue an administrative order or circular that provides clear delineation of roles and responsibilities between DWASA Board and DWASA Management (complied with). This policy condition was formulated when the managing directors were being changed frequently and were seconded from the government. Consequently, the management was weak compared to the board in DWASA. As a result, DWASA did not work as an efficient, responsive, and customer-oriented institution. In order to ensure an autonomous operational environment, it was considered appropriate to delineate responsibilities between the board and the managing director. However, the operational environment has improved in the past 4 years due to strong managing directors, stable tenures, the issuance of the Financial Regulations and the Service Regulations, and the enforcement of the provisions of the WASA Act, 1996. It is clear that the problem was based more on the persons-in-charge rather than the legal or administrative framework. Weak managing directors with short and uncertain tenures resulted in the overlapping of functions between the board and the management. Now, the working environment has improved; the current board is composed of reputed competent experts from various disciplines who provide overall guidance and maintain control over the management with a clear delineation of the roles and responsibilities of the board and the management. Regarding the legal position of the act and rules, the role and responsibility of the management and the board are clearly delineated in the WASA Act, 1996. 8 There are provisions about oversight of the board over the managing director without interfering in the day-to-day management of DWASA. To confirm this assessment, ADB obtained legal opinions from reputed independent legal experts;9

their opinion is that “there is no overlap of authority and responsibility between the board and the managing director. The board exercises policy-making and approval functions, while the managing director is tasked with implementing the decisions of the board, managing DWASA, the role and responsibilities of the board and the managing director are clearly demarcated in the WASA Act, 1996."

15. Policy Condition 8: DWASA shall issue an administrative order or circular on the delegation of authority from DWASA Board to DWASA Management on matters relating to the day to day management of DWASA (complied with). Similar to condition 7, this policy condition was formulated when the managing directors were changed frequently and were seconded from the government. Consequently, management was weak compared to the board in DWASA, and the day-to-day decisions required board approval. In order to ensure an autonomous operational environment, it was considered appropriate to–following the delineation 7 Dhaka Water Supply and Sewerage Authority (Officers and Employees) Service Regulations, 2009 were published

in gazette on 27 July 2010. 8 Section 10(1) of the WASA Act, 1996 describes the powers and duties of the board, and Section 28(7) of the

WASA Act, 1996 describes the powers and duties of the managing director. 9 Syed Ishtiaq Ahmed Associates, Dhaka, was engaged by ADB to provide legal opinions on the WASA Act, 1996,

DWASA Financial Regulations, DWASA Service Regulations, DWASA Water Connection and Water Rates Rules, DWASA Sewerage Connection and Sewerage Rates Rules, and the Pourashava Act, 2009.

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of responsibilities between the board and the managing director as envisaged in condition 7–issue an administrative order on the delineation of authority on matters related to the day-to-day management of DWASA. However, the operational environment has improved in the past 4 years due to strong managing directors, stable tenures, the issuance of Financial Regulations and Service Regulations, and the enforcement of provisions of the WASA Act. Now, there is no undue interference of the board in the day-to-day decisions of the management. The managing director is exercising powers and duties in accordance with Section 28(7) of the WASA Act, 1996, and there is no ambiguity or overlap in the respective functions of the board and the managing director. To confirm this assessment, ADB obtained legal opinions from reputed independent legal experts; 10

their opinion is that “there is no overlap of authority and responsibility between the board and the managing director. The board exercises policy-making and approval functions, while the managing director is tasked with implementing the decisions of the board, managing DWASA, the role and responsibilities of the board and the managing director are clearly demarcated in the WASA Act, 1996."

16. Policy Condition 9: DWASA shall prepare and approve a 5 year business plan. The Business Plan should be approved by the Board and endorsed by LGD (complied with). At the time of preparing the program loan, ADB and the government realized that while the WASA Act, 1996 established a framework for the responsibilities and a mandate for all the WASAs, DWASA was required to have an organizational vision of its own. This policy condition was formulated to ensure that DWASA prepared a 5-year business plan based on its current strengths and weaknesses incorporating key elements such as (i) network monitoring; (ii) water quality control; (iii) metering, billing, and collection; and (iv) consumer grievance redress. Accordingly, DWASA prepared a 5-year business plan that incorporated a vision statement, a mission statement, a customer charter, a financial and investment plan, performance targets, and a tariff plan. Specific annual performance targets have been agreed with the government on important parameters such as non-revenue water (NRW), bills sent out, revenue collection, debt age, personnel per 1,000 connections, working ratio, metered connection, ratio of metered water to water sold, water quality, water leakages, and sewer blockages. DWASA board, in its 178th meeting on 22 February 2011, approved the 5-year business plan including a tariff adjustment plan. This was approved by the LGD through a letter to DWASA on 29 May 2011. As an operational strategy to implement the business plan, DWASA, with capacity building support under the project loan as well as through its own resources, has started implementing various activities to (i) carry out distribution network improvement works; (ii) reduce its nonrevenue water; (iii) control operational costs; (iv) rationalize staff; (v) improve and regularly monitor water quality; (vi) improve metering, billing, and collection efficiencies; and (vii) improve overall revenues. DWASA is committed to progressively improve its operational and financial performance based on the business plan. 17. Policy Condition 10: DWASA Management shall prepare a 5 year tariff adjustment projection and plan to be approved by DWASA Board. The tariff adjustment plan shall be submitted to LGD for approval (complied with). DWASA board, in its 178th meeting on 22 February 2011, approved a 5-year corporate business plan including a tariff adjustment plan to move towards long-term financial sustainability. This was also approved by the LGD through a letter to DWASA dated 29 May 2011. Currently, DWASA has the power to increase tariffs by up to 5%11

10 Syed Ishtiaq Ahmed Associates, Dhaka, was engaged by ADB to provide legal opinions on the WASA Act, 1996,

DWASA Financial Regulations, DWASA Service Regulations, DWASA Water Connection and Water Rates Rules, DWASA Sewerage Connection and Sewerage Rates Rules, and the Pourashava Act, 2009.

annually, and by more than 5% annually with approval from the government. Analyses

11 With the current tariff at Tk6.65 per m3, the water tariff for lifeline consumption of 63 liter per capita per day for low-income households represents approximately 1.2% of the average household income of such households. ADB.

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of audited financial statements12 for 6 years from FY2005 to FY2010 reveal that DWASA had generally recovered not only recurrent costs (actual operation and maintenance costs, which reflect relevant inflation adjustments) but also depreciation, and interest resulting in positive net income in 5 out of the 6 years.13

The financial ratio analysis reveals a progressively improving financial condition of the organization. Moreover, DWASA, with capacity building support under the project loan as well as through its own resources, has implemented activities to reduce nonrevenue water, control operational costs, rationalize staff, increase collection efficiencies, and improve overall revenues. Since, the current level of 5% tariff increase per annum covers actual O&M costs, depreciation, and interest payment, DWASA has not increased tariffs beyond 5% per annum in the past. However, DWASA board, in its 174th meeting on 7 October 2010, endorsed the proposal to amend Clause 22 (3) of the WASA Act, 1996 to increase the threshold of DWASA's authority to increase tariffs from the current level of 5% to 10% annually. The LGD has endorsed the draft amendment and sent it to the Ministry of Law for vetting.

18. Policy Condition 11: DWASA shall establish an anticorruption and ethics committee (Committee) and appoint sufficient members to the Committee. The Committee shall report directly to the MD and shall have the mandate to investigate any corruption allegations within DWASA (complied with). To increase transparency in its operations and address corruption issues, this policy condition required DWASA to establish a committee that reports directly to the managing director. Accordingly, DWASA established an anti-corruption and ethics committee with 7 members chaired by the deputy managing director (administration), by an order dated 10 January 2010. This committee has powers to investigate allegations of corruption, malpractice, undue harassment, and any other offences committed by DWASA employees. The committee is also mandated to take measures to build honesty, integrity, and mass awareness among DWASA employees to prevent corruption and malpractices. The committee reports directly to the managing director and meets regularly, at least once a month. As the project loan is being implemented through 2014, ADB will continue to engage with DWASA until then to ensure that it functions in a transparent manner and develops an ethical work culture. 19. Policy Condition 12: DWASA shall establish a grievance redress mechanism to address the concerns of customers and stakeholders (complied with). To address the concerns of customers and stakeholders, this policy condition required DWASA to establish a suitable grievance redress mechanism. Accordingly, DWASA issued a circular dated 23 January 2010 to establish complaint and help desks in each zone and to improve customer service in the WASA head office. These desks have been provided with personnel, computers, and other resources necessary to function effectively. The services provided are (i) redress complaints related to water supply (e.g., no water, pipe bursting, dirty water), sewerage (e.g., blockage, overflow, manhole cover), billing and payments, water meters, maintenance of pump houses, and distribution of forms; and (ii) other miscellaneous services to customers. As the project loan is being implemented through 2014, ADB will continue to engage with DWASA until then to ensure that it functions in a customer-friendly manner and redresses customers’ grievances efficiently.

2005. Technical Assistance for the People’s Republic of Bangladesh for Preparing the Dhaka Water Supply Project. Manila.

12 The Auditors’ report for FY2010 ended 30 June 2010 was prepared by Rahman Rahman Huq, a member firm of KPMG Inc.

13 Average recurrent costs, including salary, repair and maintenance (R&M) and administrative expenses were 73% of total income for FY2007 to FY2010. The breakdown of costs for FY2010, as proportion of total income was: salary–26%, R&M–43%, administrative expenses–9%. R&M including power charges were 9.5% of total fixed assets, excluding land. Depreciation was 4.63% of total fixed assets, excluding land.

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20. Policy Condition 13: Starting from fiscal year 2010, DWASA shall prepare a full financial statement and audit report annually with proper audit opinion. The audited financial statement shall be published on DWASA website and made available to the public (complied with). Before the formulation of the program loan, DWASA was following the old single-entry handwritten accounting system, and audits for several years were pending. This policy condition was formulated to ensure proper financial management in DWASA. Now, DWASA has undertaken financial reforms and has started using a computer-based double entry accounting system as per the internationally acceptable accounting guidelines. Audits have been completed up to FY2010, and the reports have been uploaded to DWASA website. There are no longer pending audits of DWASA accounts. As part of the business plan, DWASA management completed and operationalized the computerization of accounting and financial management systems in 2010. The financial statements of FY2011 were ready for audit and board approval within 3 months after the end of the financial year. DWASA has also adopted a policy of selecting only renowned, competent, and qualified auditors. The recent computerization of the water connections database of 300,000 customers has further facilitated efficient billing and collection processes, leading to improved financial management. Moreover, DWASA has recently started value-added payment services that allow customers to pay their water bills through the internet, cell phones, and banks. As the project loan is being implemented through 2014, ADB will continue to engage with DWASA until then, to ensure further improvements in its financial management. 21. Policy Condition 14: DWASA shall have the authority to set and adjust, annually, the water tariff, which covers: (i) inflationary adjustments; and (ii) recurrent costs (O&M expenses) of the water supply operation, in line with the 5-year Tariff Adjustment Projection and Plan as part of DWASA 5-year Business Plan (complied with). This policy condition was based on findings of the SDP-WSSB that water tariffs in Bangladesh were generally low.14 In most towns, tariffs were insufficient to cover even the O&M costs. The purpose of this condition was to ensure that DWASA has the powers to set and adjust tariffs, and prepare a tariff adjustment plan. Accordingly, DWASA board, in its 178th meeting on 22 February 2011, approved a 5-year corporate business plan including a tariff adjustment plan to move towards long-term financial sustainability. This was also approved by the LGD through a letter to DWASA dated 29 May 2011. Currently, DWASA has the power to increase tariffs by up to 5% annually, and by more than 5% annually with approval from the government. Analyses of audited financial statements for 6 years from FY2005 to FY2010 reveal that DWASA has increased tariffs by 5% every year and generally recovered all costs including recurrent costs and relevant inflation adjustments, depreciation, and interest resulting in net positive income in 5 out of the 6 years. 15

14 Government of Bangladesh. 2006. Sector Development Programme: Water and Sanitation Sector. Dhaka. It states,

“… increasing water tariff in urban areas to at least cover the operation and maintenance costs” and “…the transition to full cost-recovery should be gradual.”

The financial ratio analysis reveals a progressively improving financial condition of the organization. Moreover, DWASA—with capacity building support under the project loan as well as through its own resources—has implemented activities to reduce nonrevenue water, control operational costs, rationalize staff, increase collection efficiencies, and improve overall revenues. Since, the current level of a 5% tariff increase per annum covers actual O&M costs, depreciation, and interest payment, DWASA has not increased tariffs beyond 5% per annum in the past. However, DWASA board, in its 174th meeting on 7 October 2010, endorsed the proposal to amend Clause 22 (3) of the WASA Act, 1996 to increase the threshold of its authority to increase tariffs from the current level of 5% to 10% per annum. The LGD has

15 Average recurrent costs, including salary, repair and maintenance (R&M) and administrative expenses were 73% of total income for FY2007 to FY2010. The breakdown of costs for FY2010, as proportion of total income was: salary–26%, R&M–43%, administrative expenses–9%. R&M including power charges were 9.5% of total fixed assets, excluding land. Depreciation was 4.63% of total fixed assets, excluding land.

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endorsed the draft amendment and sent it to the Ministry of Law for vetting. The tariff increases as proposed in the business plan will need to be monitored closely, taking into consideration the successes achieved and associated revenues generated due to the turnaround plan, combined with the pace of implementation of the DWSSDP and other ADB-funded projects. B. Other Policy Actions

1. Preparing Sector Strategy and Plan

22. Other Policy Action 1: LGD will initiate and socialize a water conservation program. LGD will actively conduct an awareness campaign at the national level to raise public awareness on the importance of water conservation. Public awareness programs for water are a relatively new concept in Bangladesh. DWASA, as one of the better performing service providers and with support from capacity building consultants under the project loan, prepared and endorsed a comprehensive action plan for water conservation in June 2010. A formal letter conveying DWASA’s endorsement of the action plan was sent to ADB on 6 January 2011. Adequate amount for water conservation program has also been provided in DWASA’s budget. The plan is a novel operational strategy of DWASA for water demand management and public awareness for water conservation. The water availability in Dhaka is rapidly reaching a point where demand outstrips supply and so DWASA management realizes the necessity of implementing such a plan with full public participation. The plan aims to (i) assist the public to minimize the demand and reduce common misuses of water including the illegal use of suction pumps to draw water from delivery pipes; (ii) raise public awareness in understanding potential shortages and strive for water conservation including the Three R’s (reduce, reuse, and recycle); (iii) improve customer relations, enhance transparency in DWASA’s operations, and introduce citizens’ charter; and (iv) assist the public to understand meter reading, billing, and collections. The operational strategies include (i) establishing sustainable campaign structures; (ii) organizing customers’ surveys and citizens’ report cards; (iii) developing campaign material including information, education, and communication material; (iv) recruiting nongovernment organizations (NGOs) and implementing the information, education, and communication campaigns; and (v) developing and implementing media strategies. DWASA has started implementing the action plan from 2010 with support from the NGOs, which have been mobilized under the project loan. Pourashavas have implemented the water conservation action plan in their ongoing projects. 23. Other Policy Action 2: LGD will instruct the pourashavas and the WASAs to promote water conservation and to participate in the program. LGD will provide budget assistance to the pourashavas and the WASAs to implement the program. The DPHE also monitors the implementation of the action plan by pourashavas. Demand-side management and water conservation are the main themes introduced in the DWSSDP. The LGD issued a notification on 31 January 2011 and instructed WASAs and pourashavas to implement various activities for highlighting the importance of water conservation, preventing misuse and increasing public awareness. These efforts are strengthened further by the activities being implemented in the project loan, especially the complete metering and NRW reduction in the distribution network improvement works in 8 zones in DWASA’s service area. DWASA, with support from financial and capacity-building consultants in 2010, has created a computerized database of all its 300,000 connections, covering 12.5 million people in the city, which will help it with systematic demand management. 24. Other Policy Action 3: To promote water conservation and improve quality of work, LGD together with pourashavas and WASAs will revise the service regulations so that pourashavas and WASAs, not households, install meters and do connections to

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households. DWASA and pourashavas have realized that reducing NRW is one of the most important activities of water conservation. This includes ensuring minimum leakages at the points of household connections and properly functioning meters. Accordingly, DWASA and pourashavas are increasingly taking the responsibility themselves to install meters and provide connections to the households rather than expecting consumers to install meters or do the work of household connections. Currently, these provisions are implemented as good practices since the service regulations are not explicit in this regard. Under the project loan, these components of installation of meters and household connections have been incorporated as integral parts of the distribution network improvement civil works packages to be implemented by DWASA.16

The LGD will continue to encourage other WASAs and pourashavas to adopt these good practices.

2. DWASA Governance, Organizational Structure, and Financial Management

25. Other Policy Action 4: DWASA board of directors will issue an administrative order or circular on the staff recruitment, promotion, and remuneration in DWASA. DWASA Financial Regulations17 authorize officers, the managing director, and the board of DWASA to make most decisions related to financial management except in cases where government funds are used. As per the WASA Act, 1996 coupled with the Financial Regulations, DWASA has the power to exercise financial autonomy to manage its affairs. DWASA Service Regulations18 authorize DWASA to take decisions related to personnel management such as appointment, terms and conditions of employment, leave, allowances, service records, retirement, and discipline and control. As per WASA Act, 1996, coupled with the Service Regulations, DWASA has autonomy in matters of personnel management. DWASA is required to follow government directions in few areas that are common to all public servants in the country. To confirm this assessment, ADB obtained legal opinions from reputed independent legal experts.19

Their opinion is that as per provisions of the WASA Act, 1996, DWASA has administrative and financial autonomy in managing personnel in the areas of staff recruitment, promotion, and remuneration; therefore, an administrative order or circular is not required.

26. Other Policy Action 5: DWASA will prepare and issue an operations manual. The manual will be implemented and distributed to all departments within DWASA and published on DWASA website. The operation and maintenance manual was finalized and endorsed by the management. DWASA sent a formal communication to ADB on 6 January 2011. The manual has been uploaded to DWASA website. 27. Other Policy Action 6: DWASA will set up a committee to explore appropriate O&M management modes, including private sector participation and review on program for performance improvement (PPI) in water supply and sanitation sector. DWASA issued office orders dated 20 October 2008 and 17 February 2009 to form a committee chaired by the chief engineer to examine outsourcing the O&M of 10 tube wells. The committee submitted its

16 As of 30 September 2011, tender evaluation for procurement of domestic meters international competitive bidding

(ICB)-03.3 and ICB-03.4 and procurement of domestic water meters through RFQ06.3 and RFQ06.4 have been included in the work schedule.

17 Dhaka Water Supply and Sewerage Authority (Financial) Regulations, 2009 were published in gazette on 27 July 2010.

18 Dhaka Water Supply and Sewerage Authority (Officers and Employees) Service Regulations, 2009 were published in gazette on 27 July 2010.

19 Syed Ishtiaq Ahmed Associates, Dhaka, was engaged by ADB to provide legal opinions on the WASA Act, 1996, DWASA Financial Regulations, DWASA Service Regulations, DWASA Water Connection and Water Rates Rules, DWASA Sewerage Connection and Sewerage Rates Rules, and the Pourashava Act, 2009.

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report on 13 April 2009 recommending public-private partnership (PPP) for O&M of 9 tube wells for 2 years. DWASA board has discussed the matter but has not yet taken a final decision. 28. Other Policy Action 7: The committee will prepare a study on private sector participation and make recommendations with time-bound action plan. The study will be endorsed by DWASA board. With the support of consultants, a study was conducted to improve program for performance improvement, and, its contract was streamlined. Accordingly, new deputation of any more staff from DWASA to the service providers under program for performance improvement (employees’ cooperatives union) was frozen and the existing deputation is planned to be phased out. 29. Other Policy Action 8: DWASA will adopt and implement internationally acceptable and transparent accounting systems, linked to the performance improvement program. DWASA follows international accounting and auditing systems. Audits have been completed up to FY2010 and the reports uploaded to DWASA’s website. As part of the business plan, DWASA management completed and operationalized the computerization of accounting and financial management systems in 2010. It has also adopted a policy of selection of only renowned, competent, and qualified auditors. Moreover, computerization of the water connections database has further facilitated better financial management in DWASA. 30. Other Policy Action 9: DWASA will prepare a financial plan for FY2009/10- 2014/15 and the performance improvement program systems will be adopted and implemented. The financial plan, which is a part of the business plan, was finalized and endorsed by DWASA management. A formal communication was sent by DWASA to ADB in this regard on 06 January 2011. 31. Other Policy Action 10: DWASA reduces its account receivables from 9 months to 6 months for FY2009/10. The receivables have been reduced from more than 12 month equivalent in FY2007 to approximately 8 month equivalent in FY2010; collection efficiencies of current year billings have increased up to 90% for FY2010; and the cash conversion cycle has reduced from approximately 390 days in FY2007 to approximately 159 days in FY2010.20

There is an overall improvement in financial management of DWASA.

32. Other Policy Actions 11: DWASA will establish baseline for surveys on illegal connection by the end of 2009. Under the project loan, DWASA has identified distribution network improvement packages and completed preparation of detailed designs and bidding documents.21

33. Other Policy Actions 12: Based on the survey, DWASA will issue time-bound action plan to address the problem of illegal connections. Under the project loan, comprehensive mapping, condition-assessment surveys, and door-to-door consumer surveys will be carried out. NGOs have been shortlisted and will facilitate the dissemination of information, including public campaigns aimed at educating the public on the negative impact of illegal connections.

20 Receivables in month equivalent are calculated based on receivables turnover ratio which measures a firm's

effectiveness in collecting debts. The cash conversion cycle (CCC) measures the time for the input to be converted into cash. CCC is a combined measure of inventory turnover, receivable turnover and payable turnover and reflects how efficiently a firm uses its assets.

21 As of 30 September 2011, international competitive bidding (ICB-02.1) has been awarded and ICB-02.2 and ICB-02.3 are under consideration of Cabinet Committee for Government Purchase.

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34. Other Policy Actions 13: DWASA will reduce illegal connections in the four zones of Dhaka city covered under the DWSSDP, by the end of 2010. As mentioned in the “Other Policy Action 12,” under the project loan, illegal connections will be identified and removed or regularized. NGOs have been shortlisted and will facilitate the dissemination of information, including public campaigns aimed at educating the public on the negative impact of illegal connections. C. Turnaround Plan of DWASA

35. DWASA has initiated and successfully implemented many actions for operational and financial improvement since 2010. Specific achievements include the following:

(i) DWASA has prepared an organogram and human resource development plan that are being implemented. It is carrying out regular trainings and capacity building activities for its personnel with the help of financial and capacity building consultants and DWASA’s training centre.

(ii) DWASA is supplying 24-hour water to approximately 80% of its 12.5 million consumers through almost 300,000 connections with average hours of supply more than 20 hours.

(iii) A citizens’ grievance redress center has been established in each zone to properly address complaints regarding services being provided by DWASA.

(iv) Public education and citizens’ awareness campaigns are being carried out to involve citizens in the activities of DWASA for more transparency and to spread important messages such as water conservation. These activities will be strengthened further now that NGOs under the project are fully mobilized.

(v) The accounts have been fully computerized since 2010 and important personnel are networked to enhance efficiency and improve service delivery. The accounts of the FY2011 will be available in October 2011 after board approval, which is commendable. There is no pending audit report and DWASA has adopted qualifying criteria for selection of auditors and gets its accounts audited by reputed auditors. In the earlier audit reports, there were no major issues pointed out.

(vi) DWASA has successfully completed computerization of entire databases of approximately 300,000 connections in 2010–2011, and monthly water bills are issued from this database. Moreover, DWASA has recently started value-added services of payments of water bills through internet, cell phones, and banks.

(vii) The reorganization of personnel has resulted in the proper apportionment of staff for water supply operations which has come down to around 10 per 1,000 connections.

(viii) DWASA has implemented various NRW reduction works and significant reduction of NRW can be expected once distribution network improvement works based on district metering area approaches have been implemented under the project loan. The Manikdi pilot district metering area has demonstrated significant achievement in reducing NRW and the benefits of a 24-hour pressurized water supply.22 The Khilgaon-Taltala district metering area will be another sample area under the project loan.23

22 Manikdi pilot district metering area of 215 water connections was established in 2007, and NRW in this area has

reduced from 58% in 2007 to the current level of approximately 10%. 23 Khilgaon-Taltala district metering area of 1,200 connections was established in 2010. The baseline NRW was

assessed as 38%. Civil works for NRW reduction will be completed in 2011 with NRW level likely to drop below 15%.

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36. DWASA’s Financial Performance. Though inflationary adjustments have not been fully incorporated in the past tariff rates, DWASA has been able to recover the actual recurrent costs (O&M costs reflecting relevant inflation adjustments) in 5 out of 6 years since FY2005 through improvements in billing coverage, collection efficiency, and cost reduction. The reduction in NRW has contributed positively to the improved financial performance, but the actual quantified assessment of NRW reduction will be known only after completion of distribution network improvement works under the project loan. From FY2006 to FY2010, net income has increased from Tk5.8 million to Tk22 million. Interest coverage from earnings before interest and tax improved from 1.04 in FY2006 to 1.33 in FY2010.24 Revenue from water supply services has increased at a cumulative annual growth rate of 10.5% between FY2007 and FY2010. Billing and collection efficiencies have significantly improved. In FY2010, billing covered more than 95% of total connections and collection efficiency was estimated at 90% of the billing. Of the total account receivables, 56% have been collected in FY2010, an improvement from 35% in FY2006.25 It is projected that the collection from total account receivables will improve further to reach 58% in FY2011. The more efficient use and management of assets has reduced the cash conversion cycle from approximately 390 days in FY2007 to approximately 159 days in FY2010 and improved the asset turnover rate from 0.06 in FY2007 to 0.09 in FY2010. 26

D. Status of Compliance with Policy Conditions

37. The government has made steady progress in implementing the second-tranche policy conditions. As stated in Table 1, 13 of the 14 second tranche policy conditions have been complied with and 1 condition has been partly complied with. The government is pursuing full compliance by FY2013.

Table 1: Status of Compliance with Second-Tranche Policy Conditions

No. Policy Conditions Status

1

LGD shall issue an administrative order to decentralize and give broader administrative and financial autonomy to the Pourashavas and WASAs to (i) manage water supply, including the installation, operation and maintenance, (ii) billing management and (iii) set and increase tariff structure.

Complied with

2

LGD shall prepare a study on the most appropriate form of an independent water regulator for Bangladesh and make recommendations to the Cabinet. The study shall include clarification on the functions, roles and responsibilities of the regulator.

Complied

with

3

LGD and DPHE shall prepare a 5 year capacity building program for the Pourashavas water section staff and WASAs’ staff. The capacity building program shall include training in the following areas: (i) meter connections, (ii) water conservation, (iii) operation and maintenance, (iv) billing and accounting, (v) financial management, and (vi) public health etc.

Complied

with

4

Starting from 2010, LGD, the Pourashavas and the WASAs shall implement the program, as mentioned in paragraph 4 above. LGD shall allocate sufficient budget annually to the Pourashavas and the WASAs to implement the program.

Partly

Complied with

5 LGD and DPHE shall issue a joint decree that will allow the Pourashavas to keep and utilize their water billing revenues. LGD shall

Complied

24 Interest coverage ratio measures a firm’s ability to meet debt expenses. 25 Include current year billings and prior year receivable balances. 26 Asset turnover measures a firm's efficiency in using its assets in generating revenues.

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No. Policy Conditions Status instruct each of the Pourashavas to have a separate account for water revenues, to establish a double-entry book keeping and to maintain inventory of the pourashava’s water supply assets.

with

6

DWASA shall prepare and approve a human resource development medium term strategy for DWASA. The strategy shall include plans for staff recruitment and retention, staff training and development and salary increase projections.

Complied

with

7 DWASA, with the approval of LGD, shall issue an administrative order or circular that provides clear delineation of roles and responsibilities between DWASA Board and DWASA Management.

Complied

with

8 DWASA shall issue an administrative order or circular on the delegation of authority from DWASA Board to DWASA Management on matters relating to the day to day management of DWASA.

Complied

with

9 DWASA shall prepare and approve a 5 year business plan. The Business Plan should be approved by the Board and endorsed by LGD.

Complied

with

10 DWASA Management shall prepare a 5 year tariff adjustment projection and plan to be approved by DWASA Board. The tariff adjustment plan shall be submitted to LGD for approval.

Complied

with

11

DWASA shall establish an anticorruption and ethics committee (Committee) and appoint sufficient members to the Committee. The Committee shall report directly to the MD and shall have the mandate to investigate any corruption allegations within DWASA.

Complied with

12 DWASA shall establish a grievance redress mechanism to address the concerns of customers and stakeholders.

Complied with

13

Starting from fiscal year 2010, DWASA shall prepare a full financial statement and audit report annually with proper audit opinion. The audited financial statement shall be published on DWASA website and made available to the public.

Complied

with

14

DWASA shall have the authority to set and adjust, annually, the water tariff, which covers: (i) inflationary adjustments; and (ii) recurrent costs (O&M expenses) of the water supply operation, in line with the 5-year Tariff Adjustment Projection and Plan as part of DWASA 5-year Business Plan.

Complied

with

DPHE = Department of Public Health Engineering, DWASA = Dhaka Water Supply and Sewerage Authority, LGD = Local Government Division, WASA = water supply and sewerage authority. Sources: ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loans and Technical Assistance Grant to the People’s Republic of Bangladesh for the Dhaka Water Supply Sector Development Program. Manila; and ADB estimates.

IV. CONCLUSION

38. The government has demonstrated its commitment to program reforms as reflected by compliance with the second tranche policy conditions and other policy actions. The reforms have contributed to improvements in the operational and financial performance of the sector. ADB will continue to engage actively in policy dialogue on reforms as well as participate in the long-term partnership framework approved by the government.

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V. THE PRESIDENT’S RECOMMENDATION

39. In view of the steady progress made in implementing the program, as evidenced by the full compliance with 13 and partial compliance with 1 of the 14 policy conditions and the continued commitment of the government to program reforms, the President recommends that the board approve, on a no-objection basis:

(i) the waiver of full compliance with 1 policy condition, which has been partly complied with; and

(ii) the release of the second tranche, in the amount of SDR15,921,000 for the

program.

Appendix 1 17

LIST OF DOCUMENTS RELATED TO POLICY CONDITIONS

1. Local Government (Pourashava) Act, 2009 and translation 2. Local Government (Pourashava) Ordinance, 2008 and translation 3. Water Supply and Sewerage Authority Act, 1996 and translation 4. Gazette notification to establish Chittagong Water Supply & Sewerage Authority and

translation 5. Gazette notification to establish Khulna Water Supply & Sewerage Authority and

translation 6. Dhaka Water Supply and Sewerage Authority Financial Regulations, 2009 and

translation 7. Dhaka Water Supply and Sewerage Authority (Officers and Employees) Service

Regulations, 2009 and translation 8. Water supply and Sewerage Authority (Water Connection and Water Rates) Rules, 2010

and translation 9. Water supply and Sewerage Authority (Sewerage Connection and Sewerage Rates)

Rules, 2010 10. Legal opinion from Syed Ishtiaq Ahmed & Associates 11. Minutes of the 12th meeting of National Forum for the Water Supply and Sanitation 12. Report on the Recommendations for a Water Regulatory Framework for Bangladesh 13. DWASA Human Resource Development Plan 14. Human Resource Development Plan for Pourashava Water Supply Divisions 15. DWASA Training Schedules 16. DWASA Organogram of Training Center 17. DWASA Training Budget 18. DPHE Training Budget 19. LGD Circular on ensuring financial sustainability of Water Supply Sections in the

Pourashavas 20. DWASA Performance Based Management concept paper 21. LGD letter on endorsement of the Five Year Corporate Business Plan 22. DWASA board approval of the Five Year Corporate Business Plan 23. DWASA Five Year Corporate Business Plan, including Tariff Plan and Finance Plan 24. DWASA Office Order to establish the Ethics Committee 25. DWASA Office Order to establish the Grievance Redress Center 26. Audited Financial Statements for FY 2005 to FY2010 27. DWASA Board Approval on Tariff Increase for 2011