Non-Revenue Water (NRW) project for Santa Fe Province – Argentina

Basic Information

Grant ID: K-131

Region: Latin America & Caribbean

Country: Argentina

Approval Year: 2018

Grant Year: Year 6

Amount Approved by Donor: $400000.00

Main Product Line: IFC - Advisory

Sector: Water

Grant start/completion: December 3, 2018~ June 30, 2020

Grant Status: Closed

TTLs: Ines Gutierrez (Operations Officer)

Grant Activities

Project Summary:

The objective of this grant is to provide technical advisory services and capacity building to the province of Santa Fe in Argentina. This is in order to obtain implementable and bankable high impact infrastructure projects through the IFC Sustainable Cities program. In Latin America and the Caribbean region, approximately 37 million people lack access to safe drinking water, and almost 110 million do not have access to sanitation in the area. Particularly in Santa Fe, Argentina is subject to risks of extreme climatic events including storms, floods, frosts, and droughts, which affect the country’s population as well as its economy. Alongside these circumstances, there is consistent flooding that affects Santa Fe and other provinces. To help address this issue, this KGGTF grant will fund the IFC’s LAC Sustainable Cities program, which will promote public and private sector investments of resilient urban infrastructures in the Santa Fe province, under green growth mainstreaming. Providing support for the Cities Program in Santa Fe demonstrates a strong World Bank - IFC collaboration with both teams complementing each other’s work. At national level, the World Bank is also focusing efforts on pushing institutional reforms to strengthen the water sector across the country. Additionally, this program is closely linked with KGGTF partners, such as KECO and K-WATER, to share their vast experience in water developments including construction, operation, and management of water facilities.  

List of Activities:

  1. Stage of NRW Water including a diagnostic report with the listing of all recommended measures with associated expected resource and monetary savings and investment needs - Inception Report
  2. Detailed Technical Assessment and Report: Assets Analysis and Development of Strategic Investment Plan with benchmarking analysis, detailed description of proposed low-cost improvements and investment projects including the private sector as a core stakeholder –
  3. Tariff Structure - Analyze and Presentation of Relevant International Experiences with at least 3 different international water tariff structures with pros and cons compared with existing Santa Fe tariff structure. Determination of the potential revenues of the implementation of such new tariff structures compared with the existing system.
  4. Green Growth Action Plan: It should help the client to realize the largest savings that are feasible to achieve within a determined period - Low cost and green/resilient/competitive/inclusive improvements measures that will be identified during previous stages, Recommended green investment projects with detailed technical and financial information and recommendations on their prioritization and implementation over the next 3-5 years.
  5. Knowledge Transfer: Workshops and Seminars 
  6. Case Study: Barriers and opportunities for financing NRW projects

Outcomes:

Output 1:

  • Diagnostic report with the listing of all recommended measures with associated expected resource and monetary savings and investment needs

Output 2:

  • Report: Assets Analysis and Development of Strategic Investment Plan with benchmarking analysis, detailed description of proposed low-cost improvements and investment 

Output 3:

  • International water tariff structures with pros and cons compared with existing Santa Fe tariff structure 

Output 4:

  • Low cost and green/resilient/competitive/inclusive improvements measures that will be identified during previous stages
  • Recommended green investment projects with detailed technical and financial information and recommendations on their prioritization and implementation over the next 3-5 years

Output 5:

  • Workshops and seminars

Output 6:

  • Barriers and opportunities for financing NRW projects 

Outcomes:

  • Inclusiveness, Resilience and Increased Competitiveness: The NRW program in the Province of Santa Fe will improve all aspects of economic foundations, including infrastructure improvement, natural resources preservation and environment resilience. The availability and quality of urban infrastructure for water management and distribution and related services constitute an essential basis for enhancing province inclusiveness, competitiveness and productivity, creating jobs for underprivileged groups, mobilizing markets that remain visible after the implementation of the program and reducing environmental and climate change impacts.  
  • Green Growth Areas of Action and Improved Efficiency: The NRW program directly relates to water supply and energy efficiency, through technical assistance and investments in strategic (climate) resilient infrastructure, strengthening cities’ and province’s capacities with a long-term vision. In addition, it provides technical assistance to facilitate integrated, well-informed urban planning and management, as well as the development of strategic and sustainable climate-resilient urbanization that contribute to green growth in water management and energy efficiency, the reduction in energy consumption (kWh/m3) will reduce GHG emissions according with the emission factor of Argentina.   
  • Green Growth, Inclusiveness, Greater Resilience and Improved Efficiency: The NRW program propose improved efficiency, green growth action plan, technical advisory and capacity building to improve water management that will help local governments address complex environmental, social and governance issues that will provide cost efficient services to more citizens including poor communities thereby, guaranteeing the social sustainability and inclusiveness of the NRW program. The reduction of water losses can provide greater resilience and protection against extreme weather events that may reduce the water availability in the future. 
  • Green Growth and Green Finance: The NRW program promote a demonstration effect for other financial institutions interested in finding innovative ways to finance high impacts green projects. 

Collaboration with K-Partners and Others:

  • Korea Environment Corporation (KECO), an affiliate of the Ministry of Environment of Korea with the mission of contributing to eco-friendly development and climate change with a leading environmental service in water and soil area
  • K-water, the Korean Government Agency responsible for public and private water developments is responsible for construction, operation, and management of water facilities for the comprehensive use and development of water resources but also for the construction and management of metropolitan waterworks (including industrial waterworks) facilities. 
  • State-Owned Company Aguas Santefesinas