MALDIVES - ADVANCING U.S. EFFORTS ON WATER AND SANITATION

UNCLAS SECTION 01 OF 02 COLOMBO 001717

SIPDIS

SIPDIS

STATE FOR OES/PCI SALBERG AND BLAINE
USAID FOR ANE AND EGAT

E.O 12958: N/A
TAGS: EAID SENV MV
SUBJECT: MALDIVES - ADVANCING U.S. EFFORTS ON WATER AND SANITATION

REF: A) STATE 128229 B) STATE 128599


1. Summary: Low-tech rainwater harvesting and groundwater
collection are becoming inadequate to meet water supply and
sanitation needs in the Maldives. The island nation's water supply
shortages and sanitation problems were exacerbated by the 2004
Indian Ocean tsunami. The Government of Maldives (GoM) seeks to
improve water and sanitation services through post-tsunami
rebuilding activities and attracting private investment in water and
sanitation services. Inadequate domestic expertise and funds are a
challenge to reaching these goals. End Summary.

MALDIVES WATER SUPPLY AND SANITATION BACKGROUND


2. Maldives is an island nation with a population of 320,000. More
than 100,000 live in the capital, the individual island of Male'.
The remainder are dispersed across 200 inhabited islands ("outlying
islands") clustered in 26 separate atolls. Maldives has long
depended on Rain Water Harvesting (RWH) for its potable water
requirements, augmented in some places by limited ground water.
Population growth, urbanization, and tourism have caused both types
of water supply to be overdrawn. These pressures were exacerbated
by the 2004 Indian Ocean tsunami, which damaged sewerage networks
and contaminated many ground water sources.


3. Water supply and sanitation on Male' and the two newly developed
urban islands of Hulumale' and Villingili differs from that of the
outlying islands. On these developed islands, WSS services are
provided by the Maldives Water and Sanitation Company (MWSC). All
households and commercial establishments are connected to the
network, which has a regulated tariff system. The WSS of the other
200 islands is primarily administered by the islands' respective
atoll offices. Under this system, residents have free supply of
water, which is sourced from either rainwater harvesting systems or
ground water. No treatment is carried out. Sanitation is also
free, and consists of semi-centralized collection, discharge and
septic tanks.


4. Institutional Framework and Policy: The Ministry of Energy,
Environment and Water (MEEW),established in 2005, is responsible
for infrastructure development and policy formulation in the WSS
sector. The GoM encourages private investments in the Maldives
utilities sectors. The Maldives Water and Sanitation Authority
(MWSA) formulates guidelines for such investment and acts as the
regulator in the sector.


5. The GOM's WSS policies contain the following objectives:

- Water: Provide access to safe drinking water for all people with
piped distribution; safeguard ground water capacity of islands; and
enhance RWH collection in catchment areas.

- Sanitation: Provide systematic and safe sanitation for all people
through centralized piped sewer and treatment systems; provide
centralized septic tanks within communities with off-shore disposal.


-Community Involvement: Create a conducive environment for external
agencies and investors to join as partners in WSS sector (private,
public, community) and assist through appropriate legislation and
legal systems.


6. In outlying islands, the administrative and development agenda
is decided by the Ministry of Atolls Development (MoAD) at the
central level, by the atoll chiefs at the atoll level and by the
island chiefs at the island level, within the guidelines established
by the Ministry of Energy, Environment and Water and other relevant
ministries.

PRIORITY AREAS FOR USG INVOLVEMENT


7. Governance: As a relatively new ministry, the Ministry of
Energy, Environment and Water lacks the management expertise and
internal resources. Several donors also provide WSS services to
some islands as part of post-tsunami aid. Geographic difficulties
and inter-ministerial overlap have resulted in the Ministry of
Energy, Environment and Water lacking sufficient authority to emerge
as a proper focal point for decision making in the WSS sector. The
Ministry needs to develop institutional capacity to interact
effectively with relevant ministries, especially with the Ministry
of Atolls Development.


8. Investment in Infrastructure: The GoM is interested in
encouraging private investment in the WSS sector including, energy,

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housing, harbors and ports, and land reclamation.


9. Private Public Partnership: The Maldives Water and Sanitation
Company is an example of public-private partnership in the WSS
sector. The GoM and a Danish WSS investor have joined up to provide
WSS services commercially. STELCO (the State Electricity Company)
is a similar entity servicing the power sector. The Ministry of
Energy, Environment and Water circulated guidelines in preparing
RFPs for additional private investments in the WSS sector in May

2006. However, promotion of public-private partnerships is lacking.
Opportunities exist to strengthen the regulatory process and
develop the role of the Maldives National Chamber of Commerce in
promoting public-private partnerships.


10. Present USAID Involvement in Maldives: As part of post-tsunami
reconstruction efforts, the USG through the State Department pledged
USD 8.65 million for installation of sustainable sewerage systems,
rehabilitation of harbors and power systems, and capacity building
for the Ministry of Finance. Separately, USAID will implement a USD
1.9 million Maldives Tsunami Reconstruction Program (MTRP) in the
islands of Naifaru and Hinnavaru in the Lhaviyani Atoll (Atoll
Population 12,000). The communities of both islands have been
unanimous that the restoration and augmentation of the drinking
water supply is more important than improving sewerage services.
Program activities will commence during November 2006 and will
continue for approximately 15 months. USAID has engaged the
services of CH2M Hill as the prime contractor due to the
contractor's performance and experience in Sri Lanka post-tsunami
reconstruction. The MTRP program will consist primarily of:

- Installing two reverse osmosis units, to supplement water supply
during the dry season;

- Assisting the community and Atoll office to enhance the RWH
collection capacity;

- Supporting environmental health initiatives at the atoll hospital;


- Training the atoll office to operate and maintain a community
water supply system through community participation;

- Capacity building of MEEW in project management in the WSS sector.



11. Comment: The GoM's receptiveness to private sector and
community involvement in the water supply and sanitation sector is
encouraging. At the same time, increased administrative and
developmental independence of outlying islands will create a need
for local- and atoll-level technical assistance, such as that which
USAID plans to provide to two communities. The GoM would welcome
similar USG or private assistance in meeting urgent WSS needs
elsewhere in the island nation.

MOORE