Lilongwe Water and Sanitation Project (WB-P163794)

Countries
  • Malawi
Geographic location where the impacts of the investment may be experienced.
Specific Location
Lilongwe
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 20, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Malawi
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Healthy Environment
  • Labor & Livelihood
  • Right to Health
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 102.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Nov 4, 2021

Disclosed by Bank Dec 22, 2017


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The stated objective of the Lilongwe Water and Sanitation Project (LWSP) for Malawi is to increase access to improved water services and safely managed sanitation services in Lilongwe City. There are four components to the project:

  1. Water distribution network rehabilitation, expansion and Non-revenue Water (NRW) reduction. This component involves investments in priority network rehabilitation to remove bottlenecks, increase hydraulic capacity of the existing network and reduce losses, and network expansion to increase coverage.

  2. Priority sanitation improvements. This component will finance various investments to increase access to safely managed household and public sanitation services in Lilongwe.

  3. Technical assistance. This component will finance technical assistance (TA) activities designed to support preparation and supervision of all infrastructure investments planned under the project; and to enhance capacity of Lilongwe Water Board (LWB) to plan future investments under the Lilongwe Water Program.

  4. Institutional Capacity Strengthening. This component will finance a set of activities designed to: (i) strengthen the capacity of LWB to implement the project and to provide improved water services to its customers; and (ii) strengthen the capacity of Lilongwe City Council (LCC) to implement the sanitation component of the project, operate and maintain the sanitation infrastructure and support the reforms needed to provide and promote safely managed sanitation services in Lilongwe.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

APPLICABLE SOCIAL & ENVIRONMENTAL STANDARDS

According to available documents, the following Bank policies have been triggered:

Environmental Assessment OP/BP 4.01 - This safeguard is triggered due to the potential negative impacts associated with the project activities largely associated with civil works emanating from digging of trenches to install water pipelines; and water treatment plant. The negative impacts will include soil erosion due to cutting down of trees, grass and people's crops, generation of construction related solid waste, increased noise and dust emissions due to earth moving equipment and machinery, and oil spillage from construction equipment and machinery.

Natural Habitats OP/BP 4.04 - This safeguard is triggered due to trenching activities associated with rehabilitation/expansion of the distribution network, which will have impacts on natural habitats such as wetlands and rivers, and therefore have environmental and socio-economic issues associated with such activities.

Involuntary Resettlement OP/BP 4.12 - This safeguard is triggered because the project will result in loss of land, other private assets and income and temporary displacement and resettlement of the project affected persons (PAPs). Some people's property will also be permanently resettled resulting to loss and disturbances in businesses.

Safety of Dams OP/BP 4.37 - This safeguard is triggered because one of the investments under the project (the new water treatment plant, TW3) is linked to the planned raising of Kamuzu dam 1(KD1) which is financed by EIB.

Projects on International Waterways OP/BP 7.50 - This safeguard is triggered because the project will involve additional abstraction of water (50MLD) from Lilongwe River which flows into Lake Malawi – an international water body

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

EWS RISK ASSESSMENT

According to available Bank documents, the following human and environmental rights may be impacted by the project:

• Right to Property - According to the bank documents, the project is likely to cause permanent and in some cases temporary loss in business properties and structures. Even though the project will not result to resettlement of affected populations, it will nonetheless affect people's business structures with a total of 152 structures and businesses identified to either be permanently or temporarily affected.

• Right to Livelihood- The Project will impact on land use and business activities. The project activities will cutting down of trees and crops, and therefore disturb agricultural activities. There will also be permanent, and in some cases temporary loss of business with a total of 363 people identified to be compensated for loss of property, structures and businesses.

• Right to a Healthy Environment- During the operation phase when major earthworks are being undertaken, there is potential for significant dust and noise generation that may likely pose health risks to surrounding communities. In addition the influx of workers significantly increases potential for the spread of communicable diseases in the area with in-migration of people seeking construction work and commercial sex work.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

IDA Grant 25,000,000.00
IDA Loan 75,000,000.00
Borrower 2,000,000.00


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Lilongwe Water Board
Alfonso Chikuni
Chief Executive Officer
achikuni@lwb.mw 

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.

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