ANNUAL REPORT TO CONGRESS

Senator Paul Simon Water for the Poor ActP.L. 109-l21; Sec. 6 (g)(2)

June 2014

Office of Conservation and WaterBureau of Oceans and International Environmental and Scientific Affairs

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Highlights for FY 2013

• U.S. government investment for all international water sector activitiesexceeded $783.61 million.

• As a result of direct U.S. government investments, some 3.5 million peoplegained new or improved access to safe drinking water and about 1.3 milliongained improved access to sanitation in FY 20132

•

• USAID launched its Water and Development Strategy, focusing USAID'sinvestments on improving health outcomes through provision of sustainableaccess to safe water, sanitation and hygiene, and managing water in agriculturemore sustainably and productively to enhance food security.

IntroductionThe Senator Paul Simon Water for the Poor Act of2005 (WtP) requires the

Secretary of State, in consultation with the U.S. Agency for InternationalDevelopment (USAID) and other U.S. government agencies, to develop andimplement a strategy "to provide affordable and equitable access to safe water andsanitation in developing countries." It also requires the Secretary of State inconsultation with the USAID Administrator to submit an annual report to Congressdescribing changes in the U.S. strategy and progress in achieving the objectives ofthe W fP Act. This is the ninth report to Congress since the Act was passed, andlike previous reports, represents one point in an evolving process to strengthen theUnited States' response to these issues.

Bilateral AssistanceUSAID and the Millennium Challenge Corporation (MCC) continue to be

the largest United States contributors to water and sanitation activitiesinternationally. In FY 2013, USAID invested $523.8 million for drinking water,sanitation and hygiene (WASH), water resources management, water productivity,and water-related disaster risk reduction activities in 63 countries.'. More than halfof US AID's investment ($304.8 million) went towards WASH programs, of which$164.8 million (54 percent) was obligated in Africa. In FY 2013, the MCCobligated $95.5 million for water-related activities worldwide. Nearly all of the$40.2 million the MCC obligated for WASH activities in FY 2013 was in Africa.

I Total of USAID, MCC, Department of State, NASA, and Defense Department funding, and does not include u.S.support for international financial institutions and international organizations.2 Reflects USAID and MCC-provided results.3 This includes countries supported through regional missions but not reported individually in the tables.

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Some 20 other U.S. government agencies and departments continued tomake major contributions to address water and sanitation challengesinternationally. In partnership with USAID and the U.S. Geological Survey(USGS), the National Aeronautics and Space Administration invested $4.3 millionin FY 2013 to support improved water management around the world. The USGScontributed hydrologic and other earth science to monitor and analyze stream flow,and aquifers to support water resource management decisions in Ethiopia, India,Indonesia, Pakistan, and other developing countries. The EnvironmentalProtection Agency promoted water quality monitoring in Kenya, water safety plansin East Africa, and funded water infrastructure projects in Mexico. TheDepartment of Defense obligated $161 million in Afghanistan through the U.S.Army Corps of Engineers (USACE) to repair and rehabilitate two Afghanirrigation-related dams and irrigation canals, to conduct a watershed study, and tocarry out deep well drilling.

Multilateral AssistanceThe United States also makes significant contributions to international

financial institutions (i.e., World Bank, Asian Development Bank, AfricanDevelopment Bank, and others), which grant and loan money for water projectsand sanitation work. Collectively, the international financial institutions providedmore than $8.35 billion for water and sanitation activities in FY 2013. The UnitedStates also funds many international organizations such as UNICEF, UnitedNations Development Program, UN-HABITAT, etc., which in turn finance waterand sanitation projects worldwide. Last year, these international organizationsspent about $33.16 million. In FY 2013, the United States remained the singlelargest bilateral donor ($1.9 billion in FY 2013) to international humanitarianorganizations including the UN High Commission for Refugees, the InternationalCommittee of the Red Cross, and the UN Relief and Works Agency for PalestineRefugees in the Near East, providing life-saving assistance, including water,sanitation, and hygiene-related services to refugees and other conflict-affectedpopulations around the globe.

Delivering Results: Selected Accomplishments in FY 2013

• (USAID) Provided first-time access to improved drinking water supply to446,989 people and first-time access to improved sanitation facilities to 320,924people in the Democratic Republic of Congo.

• (US AID) 280,385 Zambians (134,841 male and 145,544 female) gained accessto clean drinking water, and 168,823 students and teachers (86,053 male and

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82,770 female) gained access to improved sanitation facilities, such as latrines,toilets, and washrooms. Sanitation facilities ensured convenient access forgirls; some were equipped so girls could bathe and maintain menstrual hygiene.

• (USAID) In Liberia, 47,124 people gained access (including 2,845 with first-time access) to an improved water supply through construction of new waterpoints and rehabilitation of non-functional water points.

• (USAID) The Indonesia Urban Water, Sanitation & Hygiene program(lUW ASH) worked with government agencies, water utilities, waterassociations, and local NGOs in 54 municipalities to increase access to waterand sanitation services. The project is now in its third year and has reached1,163,855 people with water services and 77,655 with sanitation services.

• (USAID) In partnership with the Swedish International DevelopmentCooperation Agency (SIDA) and the Netherlands Ministry of Foreign Affairs(MFA-NL), USAID launched "Securing Water for Food: A Grand Challengefor Development" at the 2013 World Water Week in Stockholm. Through thisinitiative, USAID, SIDA, and MF A-NL are contributing $32 million($11 million from USAID) to source and accelerate innovations that will enablethe production of more food with less water and/or make more water availablefor food production, processing, and distribution.

• (MCC) The Cabo Verde II Compact includes a $41.1 million Water, Sanitation,and Hygiene Project designed to establish financially-sound and accountabledelivery of water and sanitation services through national-level policy reforms,the transformation of inefficient utilities into independent corporate entitiesoperating on a commercial basis, and funding to promote capital investment.

• (MCC) Malawi investments include a $27.8 million market-based watershedmanagement improvement activity that includes funding for a payment forecosystem services partnership. Sustained financing from downstream privateand public companies will go to support improved land management and foodsecurity projects with upstream communities, and improving water quality andflows for both hydropower generation as well as the communities that dependon water for their livelihoods.

• (State) In partnership with the International Union for the Conservation ofNature and the International Water Association, the Department of State

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supported the "Nexus Dialogue on Water Infrastructure Solutions," a project toimprove the economic, social, and environmental benefits of physicalinfrastructure and natural systems. Regional workshops in Africa, SouthAmerica, and Asia provided stakeholders and decisionmakers an opportunity toidentify problems and solutions.

USAJD FY 2013 Water Sector Programming - Overview with Account Detail for Sector Water Supply. FY 2011 Indicators for Drinking WaUlrSanitation & Hygiene * Supply and Sanltadon Fadlitles &

MllNcwu of Dol"'" Service. by Operatlnl Unlt ••••••

w--.o,w__w_ _ .... ••••••••.oIp..p. •.••• .....,....,..,,..,.. .......

W1I>t - ....•- •••• WASH T.o.I - •...•...•.•.• ........- Grand Total acc-. CD _ -.-... ~ IICC8MCD"~

""". _ .. _ ..(WP) - -- --"" UP ........... -- (WUI)UIAlD

W__

WAIH-

Grand Total II un 100M6 11.7St 1 ••.• S0 I ••.• n 1.7n I Uti nOon7 n.JOl 1 •••••• ll."J nUll 1._.0t0 1.1".011Africa

1"'4 l4.1t0 lUll ... 21..Dl, .' ::.•>:. ..;'" ,..' aMI, •..• .164.&". _, ••..• " 7 ... , ..7.111 ......;:>nn~. .I-"I.l16 1 LlUU.• . " .~ .•..•... .'c .; .... ...IV""" 9sa8<"'" 0.)00 0.100 a.)OOBoN"'" 0.101 0.101 0.101eNd 0.1" 0.11) 0.122 0.097 0.4"Dcrnocnuc RCDlIbilc of the Con.a 6.269 2.\00 0.'16 ).OSO 12.<45 11.44S +4U" llU24E_ 10510 )JlOO 0.7" 0.67) IS.7" SUlt 27.1'" BS' 100.SS4GhaN 4.7n 1.000 srn 0.7SO 1.4SO 1.'77 )7.700 2Jl.784K•••• I.m 2.lOO I.'" 11.S8I 11.181 )~."l )41.1t)u..n. 1).Oll> 2.000 IS.oIO IS.Ol0 47.124 25.710"'donK>T 0.750 I.SoIO UfO 1.100 l.nO 71.12) SJ.ISI••...... 1.91 I O.lOO 0.101 LOSO 450) 4.161 11.86011.1 S.110 sm 1.070 7.190Houm----;;;;-. 1.U7 )'2S0 4.an I U77 1&,106 n.').No" 1.74' 1.749 I 2.7" •. 148NI eria ".777 em •• 777 2'.100 )I,noR••• n<j, 1.097 0.7JO 1.817 i 1.117 160 1.118

~- 8.121 O.lOO 8.621 I 0.100 I.ISO IO.tn ".860 8.","Seem leone 0.100 O.lOO ' o.sOO

~. 1.911 1.046 US7 : US1So"",, Me 0.ll2 O.lJl ! 0.111 --Sou&h Sudoln 11.-4'1 O.ISO lI.ltl ll.'ll lUll 140S<.don 20.195 47S

Tanung '.'88 ••••• 0._ ).J60 '.101 46.''''' 12.799V...o. -4.299 l.soo 0.100 S.••• U"z.. ••••• -4.777 ).000 6.777 : 0.100 6.177 '2.098 - 110.7172mb;,bwe 0.766 0.7 •• 1 0.7" ---

USAlD &n AJrtu k-IONI 1.91 I UIII I.tli ._- _ .USAlO SAbel "-IONI "OPf"llm 1'17 Hili un .~-USAII> lou<hc,. Nnu ~;;;;;;J 1.911 1.047 •. '58 1 4.ts.

USAlO WC'MAlnca ~~riftlul 1.71l 1.100 U))· .- UJl 17).60S 1--- ~OH£-Iuia ILS41 4J.S04 10.lll I.n, Ul' 1.110 1I.m 8.44] lUll 17.774 1180177 nl,"4

IAhtanll.un ]8,57' 18.578 '.101 6.105 50.7M 197.718

80Mb •••••• 0.-478 1.72. 1.110 1.611 D.625 )000 9.ll1

B•••.•••-

1.000 : O.lSO I.SSO1.000Cambodia 1.1 SO BOO ).65' i 1.659

In4<o 1.000 1.000 1.000 16,lJ8 IS.216

1n6onc ••• 5.710 1.000 O.lOO 7.110 ! 1.700 O.lOG UIO 595.670 ]'.080

K"qz I\cpubk O.llt O.l8t : 0.2n

Uo. ! 0.119 0.11'

~" 0.91S ~1 0.U7 0.211 1.104-f'1.lIfwllllbncb 0.227 0.117 ._ .._------HKronCiQ 0.977 0.977

Ntool 1.4)] o lSO usa 0.1)0 HOI' D.97' 0.775 US4 11.llD -•••••••• n L,"S 1.ll' S.U. ! 0.000 •.1.' IS.41)

1'1>01>_ •• 1.IU ).m USS 9.777 n,".Solomon l.lands O.lOG O.lOG I O.SOO

Snunu 0.419 0.419 i 0.419

TaJWmn 0.482 0.152 0.8).4 ! 1.". un

,.,.,bnd , e.m O.lll

V'nwltu O.SOO D.500 1 O.JOOVltC~m 0.'" 0.900

uwo ('U A...., .•nd P'aClI'Ic RCl101Wl1 0.200 0100 0.200USAIO South ~ RCJlonal

0.100 O.sooHld.u. we ).)44 lUll o.SOO l.lU t,tn . I~..... ~ ..

ILlII. MOO. .- .: 11:·i· 1.1114.161 ..• illS~I&n. ..'

I Jordan\60.000 14.000

11.000 7.711 l.soo = 10.221 1.000 11.• 41

!W~I w_Alw•••••T •••• lw::.:=- Db..- •..• N•••••••• .,,..p.,...... .............'~....,W1UO WI'

,fftU- -- •..•...•.. Grand Total ~co.., •.•••••.•.••.•.•••.• _ento •••~IDA- -..- .. (WP) (DU) -- --.WAS>t-- w.••••- . ! (WO><)

16.110 IUs) 7.7t1 IUti J10.727 I OUOl 7•.••• lUtJ 11).71) ).101.090 1.1:",Q])11.99) , II.H)

uni 1.'19 1Q.4.161 -~l.2SS ,.on I 2.000 •.on 350,000

1.4SO 1.840 I 1.570 l.4100.748 1.111 lUU l.us lun 4.110 4".64 11,481 7,4810.'75 I.ll' I.tlt i 0.615 1.215 I.UI

ern 4.777II. ISO 18.ISO

4.ISO 4.150 ---.------

USAID FY 2013 Water Sector Programming - Overview with Account Detail for Sector Water Supply,Sanitation & Hygiene *

IMlIDonJ .f Dol/on

FY 20 Il Indicators for Drinking WaterSupply and Sanitation Facliitie. &SCr'Vlcc:s by Opc.radna Unit ••••••

G~TouJ

OA ••• GH"~ Staz.GHI'......,.,

IIU7l loo.eo, 17.7st11.7')

1.91'}.) ...... 0$00

0.190lUes '.4Jl

4.n7

~~menUSAJD H~ hit Re IONJ OMEP)c.ntnJ Pro,",""

~A! •.•u R•• ,•••• (AfRI

USAID Ik!r.Ju For Food SKuritr I8FS)

uSAJO Ocrno<ncy. Conftic1 and HWNlNunI,..Anbonce tOCHA)

USAID EconomIC c,.owth,. E~ and EnYlronnwnt

~,------::-------t----....:.:=t------t----II-'---:-::::+---+---=-'-t----"'=+'--+-_....:..;== ..:0..:~:::.SO+_--=O'-'.I"'68+_-''--+. :8:::.4::0:.o'__ . .~ ~_r.U~~~D~G~~~~H~U~~~(G::H2-~~~---_t----_t---.-+---4_-~~~---++- -+ t-__~~ +----+---4_--~6~.4~'~1.+_--------:1. _USAID Ot'rke of innO'rltion I,..d On'elopme~

~'tlPD~~I~ ~._~~ __ ._~ ~~+- _USAIO PoCtq. PbnnmJ a.nd lcuNtlJ IPPlI

Colomba

Sut~ OcUI1l &ndlnttrnatJorW EnYfronmmtll1ndScICf\ldlC MJI" tOES)

Sutc orlCe (0 HONeO( ,nd Combat TnI'SciunJ en~~'WT~~ ~ ~ -L L- -L ~ ~ _• FY 1011 bud •• l cbta rC'prcMnl b •••• sdm.t., from USAlD~. of "-maGO" alI.f January 1014. and IDA Informadon u.f Ou.rnbcr lOll.

- WI/.I..r Supptr. S&nitaJ:~n •• Hniane (WASH) Induck. HousahoW WASH.

- The •• ~ • .,... a lUb.ec.f •••.•. .0 IDA and ha\o. b• .., a.ttributed to the WASH .annark. u dM, <.,..tribut. to the de •.••• pmenl.fWASH ltnft-wcmanu b.,.nd imm.diat. dbaJur napon •• otlSorue.- Oo,tnntnl fYI011. WP and WRM attribudont t. WASH are ropGned under tho WASH Earmark. and WRH and WP .nt, includ. ~~.d acdYttic •..

- FFP II fund • .,.. put .fthe F•• d F_ P •• c. Tkh II provam (FFP UJ and cannot b. countod towards ch.l011 Sbtvcory "oquirtrnenL

•• - FY 101) Indkat.,. data ,..p,.. •• ,.. belt •• rimale' from USAID analJ'tb .r Worm_don u .f April 1014 .

••••••• Note indIc:ato" kld..,dad In USAID', FYI) Annual Report track •• 'po.pJ..aJnIna acc:••• t. an Impro .•.•d drihklnawat4, •••.••ce and. of,..ple wkh Impro •.• d ••.,...ke qu.aUty. Thh column tradu" O'!"ophlaaninl au •••..

1.7100.955

1).110 UH o.el< lUn2.S)4 LU4

l.OS) J.SOI

0.11)

1.141 )5" 1'.'0'0.750 0.1500.064 0.061

0.410 0.150 1.1610.$00

0.420 0.4100.191

O.OSO 0.0500100 0.100

1."8 un 0.&10 S.I"0.)00 o.ln I.ll)

O.tsS

0.850 O.ISO

0.518 0.411 l.esS

0.210 0.110----''----...:=..:-"-------------- .'--- -..-----

Water Socto, Fundln, Woic:ludes dM (QUowln. ACCOW"lb:

Auhcanu 'or Eut..." Europ. Md Ba.ttk Sut •• (AEE8S); Allllt&nC. '0' Europ., Eurada and C.ntral At.la (AEECA). O._loptnent A ••bu.nco (DA), Economic: Slqpot't Fwnd (ESF). fo.d for P•• .co TitJa II (FFP II);Global H •• kt. Procram •• USAID (GHP ~USAlD); Glob&! He.ahh Pro,","" ~Sbe. (GHP ~ Sbta); lnternatioA&I CluHer Aubt.anc:. (lOA); Intenad.naJ Narcotia Control and Law Enfo"emUit (INCLE); Hip'atMn and ReNc" A •.dnanc:e (HRA)

N.te: A dash (_) within a ceD _p',. •• cnb thae acthtde • ...,.. .uocated within I:tta.ecat_pry, but fund. ,., tho actfttd •• bad b..n aUoc:ated "";nJ & "","'I.lI fhcal ,...,.

e.at chat contain,.. d.au ropretUllC thaI chcre wu no ac.tnohy caJdnl pl.ac.. f.r that pardadar CatAr,., dut'W1J FY lOll.

MCC's FY13 WATER FOR THE POOR OBLIGATIONSwith values as of September 30, 2013

(in millions)

Total DrinkingBeneficiaries Beneficiaries

Obligations Compact Signed Water Improved with Improved with ImprovedCountry' Entry Into Force Compact Water Supply,

for all Fund Date 4 Date Completion Date $a(Jltation and Resources Water Total Water .Access to Access to

Types2,J Management Productivity Drinklnq Water SanitationHygie(Jf1 Supply5 Facilities 5

Armenia $ 176.6 March 2006 SeDtember 2006 September 2011 $ - $ - $ (0.16) $ (0.16)Burkina Faso $ 488.4 July 2008 July 2009 July 2014 $ - $ - $ 3.77 $ 3.77Cabo Verde I $ 108.8 July 2005 October 2005 October 2010 $ - $ - $ (0.26) $ (0.26)Cabo Verde II $ 67.6 Februarv 2012 November 2012 November 2017 $ 38.65 $ - $ - $ 38.65EI Salvador $ 449.6 November 2006 SeDtember 2007 September 2012 $ (0.97) $ - $ - $ 0.97Georgia $ 391.3 September 2005 Aoril2006 ADrlI2011 $ 12.86' $ - $ - $ 2.86Ghana $ 539.6 Auaust 2006 Februarv 2007 Februarv 2012 $ - $ - $ (0.00) $ 0.00Honduras $ 204.0 June 2005 SeDtember 2005 September 2010 $ - $ - $ (0.011 $ 0.01Jordan $ 288.4 October 2010 December 2011 December 2016 $ 1.97 $ - $ - $ 1.97Lesotho $ 363.6 July 2007 SeDtember 2008 September 2013 S 10.29) $ 18.55) $ - $ (8.84) 85.026 86026Malawi $ 365.5 April 2011 SeDtember 2013 SeDtember 2018 $ - $ 27.82 $ - $ 27.82Mall $ 445.3 November 2006 September 2007 September 2012 $ 0.03 $ - $ (0.46) $ (0.42)Moldova $ 277.1 January 2010 SeDtember 2010 SeDtember 2015 $ - $ - $ 19.88 $ 19.88MongOlia $ 284.9 October 2007 September 2008 September 2013 $ - $ - $ (0.04) $ (0.04)Morocco $ 697.3 August 2007 September 2008 September 2013 $ - $ - $ 14.03 $ 14.03Mozambique $ 516.4 July 2007 SeDtember 2008 September 2013 $ 10.00) $ - $ - $ (0.00) 107.000Nicaragua $ 112.7 Julv 2005 Mav 2006 Mav 2011 $ - $ - $ - $ -Philippines $ 443.0 SeDtember 2010 Mav2011 Mav2016 $ - $ - $ - $ -Senegal $ 558.1 September 2009 SeDtember 2010 SeDtember 2015 $ - $ - $ (0.75) $ 10.75)Tanzania $ 707.9 February 2008 September 2008 September 2013 $ 15.16) $ - $ - $ (6.16)Zambia $ 31.3 Mav 2012 November 2013 November 2018 $ 8.80 $ - $ - $ 8.80TOTAL $ 7,517.34 $ 40.18 $ 19.27 $ 36.01 $ 95.46 192,026 85,0261. Tho compaas ncJuded in this report reprosonl open and closed compads with budgetod and eligible Senator Paul Simon Woter tor the Poor Ad water adMtio. through September 30.2013. Many 01 lhese compacts ob!igated MCC funds to wator adMtie. prior to tho and 01F;scaJ Voar2013 and have disburHd or are in tho disbursement phase; any amounts Hted lor FY13 have oot been reported or rellect adjultmantl mado to prlVIOuaIy 01pUIs to the Se~tor Paul Simon Watet lor the Poor Ad Reports to Congreu.

2. MCC funds as8 ol>l;gatod at Iho signing 01 tho relevant 609(9) agr.ement to<Compact Developmonl Funds (609(g)). at tho a;gning 01tho _vanl compad fo1 Compact ImplementatiOn Fundi (CIF). and al enllY into torce lor compad 605 funds -Compact- and are pn>-rate<lacrosslhelhnIe water c.ategorioa 01 "Drinking Water, Sanitation and Hygiene, Water ROaourC4S Management and Improved Agric:uturaJ ProductMty." The fJgures i'I the c:otumn represat\l all grants for each compacl [l.e. 609;, elF. Compact), Thoele cumulative ob50abons are subted: 10 c:hange.Changes ~slAl: from a range of causes, i:ndu<tingChanges 10projects. ~sttuctuttng 8S a natura) part of ongoing projed management. and. in rare cases, lenninabOn of the retevant compacts. Values indude a variety or neceuary projed costs such as design. management consuUanaes.construcUon, construction IUporviaion as weDas environmeNaS and resetuement related activiUe,.

3. Total CUmuiabYOobbgations as of September 30,2013 were approximately 58.907 bl!lion: however. the lotaJ obCIgataonsprovtded in this Cable of Sl.S17 ~ rofted the lotal OJmwwe obtigaoona for MCC compacts lhat indJde Water tor the Poor etQ1b1e actMties as weD as other no n-water related projects and adMties sucil as transportation proJec;ts. TolaJ ClJmu1ative obligations indude amounts budgeted tol ptOgtBm administnltion and monrtoring and evaNaoon.

4. Ahhough Compact a.ignature dalel are proYXied. emer OblIgation of tund.s al the 'IQning ot Compact Devetopment FtJndl Of 609(g) &greilments and Compact Implementation FuncK (elF) oc.cur.I delcnbed in Footnote 2 abOVD.

5, Beneooeanes tor etigib$oSenator PiU.d Simon Water for the Poor Act water adivities are on!y listed tor compacts in FY2013. Based on pre5minary p.rojections conducted at compad closeout. the Mozambique Urban and RuraJWaler AWVlty WIDbeneN 179.985 and 184,800 beneflGlanesrespectively over tho next 20 years. ThO Urban Orai'lagc component is 6Xpettod to dallver benefits for 514.525 beneficiaries oyer the lame period. FmaJbenc6caary numbers w be drawn from impact cvWations. with resuha expeQed '" lale 2014 and 2016. The Tanzama Water SedorProjeGt 'MD gonerale beneftt, for 2.801.856 beneficiarieS over 20 yea" baled on initial estimalol, Final beneficiary numbel"& 'MlJbe drawn from an tmpact evaSuation. with rcsutts expected in December 2016. The$e fine} beneftaary numbc:lt5WIll update preliminary flgures provided tn currentand past Senator Paw SimDll Weter for the Poor Ad Repot1s to Congrc.ss.