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World Bank loans $400 million for Urban Water Reform Projects

By on January 24, 2012

The World Bank has disbursed $ 400 million to  Lagos, Kaduna, Ogun, Enugu and Cross Rivers. The funding is meant for the development and rehabilitation of urban water facilities and to increase access to piped water under a program called the National Urban Water Sector Reform Project (NUWSRP).

The loan was provided to the Ministry of Finance for the Federal Ministry of Water Resources.

The World Bank Country Director for Nigeria speaking in Abuja yesterday said the funds were made available because World Bank had noted low operational efficiency in Nigeria’s water supply programs.

“I wish to say that under the current water situation in Nigeria, this course will certainly be of great assistance to advance the water sector reform agenda. As we are all aware, the current operational efficiency of the State Water Agencies (SWAs), is low as indicated by the monitoring indicators compiled under the National Water Rehabilitation Project (NWRP),” she said.

She also stated that many states did not ave accurate data because of lack of reliable management Information Systems.

She added, ““For some of the state utilities for which data is available, non revenue water is high, reaching up to 60 per cent of the water produced. Cost recovery ratio is low due to low tariff, poor account billing and collection inefficiencies. Additionally, data reveals insufficient financial resources, unmotivated staff, and a highly politicised tariff setting regime on the institutional side.”

Also speaking at the event, Minister of Water Resources, Mrs Sarah Reng Ochekpe, stated that State and Local Governments had to complement the efforts of the World Bank and Federal Government in making pipe borne water more accessible by Nigerians.