Page 110 - CIWA AR25

Annexes

ANNEX 5 — Value for Money

Summary Value for Money Statement

The CIWA program design and delivery prominently incorporate cooperative investment value. For every US$2.1 committed
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Value for Money principles. CIWA works to achieve its targets by CIWA, approximately one person will benefit, or has
and is guided by cost-saving measures in program management, directly benefited, from transboundary water resources
administration, project preparation, and supervision. While investments, whether potential or mobilized.
keeping costs down, CIWA has also made strong progress toward
its program-level objectives and results targets, thereby achieving • Equity: The primary gender gap for the CIWA program is that
a good return on the financial support from development partners. women are much less represented in WRM technical and
decision-making positions. CIWA is addressing this through
As a World Bank program, CIWA can achieve economy of scale. It several grants and the Male Champions for Women’s
leverages support in a way that has a multiplier effect on efficiency Empowerment initiative. Relevant indicator results met or
and effectiveness. This has been accomplished by: exceeded in FY25.

• Tapping into the World Bank’s experience and expertise in Measures Used to Assess CIWA’s Value for Money
managing trust funds, thereby streamlining administration costs.
Economy
• Leveraging strong global technical expertise of World Bank i. Program Management and Administration. CIWA has been
staff across a wide range of sectors such as water, agriculture, cost-efficient in its management, benefiting from the robust
energy, environment, governance, and poverty and cross- financial management and monitoring systems put in place at
cutting development challenges including climate change, the program’s inception in 2011. Since then, CIWA has spent 4.2
FCV, and GESI.
percent of the total contribution, keeping PMU expenses cost-
efficient. CIWA management costs include expenses incurred
• Drawing on the World Bank’s longstanding experience in by the Program Management Unit (PMU) and the World Bank’s
international waters cooperation through other programs technical experts who provide strategic advice and support. In
such as the Nile Basin Trust Fund, South Asia Water Initiative, addition to staff and consultant costs, this category includes
and Water Partnership Program.
costs associated with CIWA donor coordination, outreach, and
communications; monitoring and evaluation; mid-term review;
• Tapping into the World Bank’s deep partnerships with global reporting; partnership meetings; and dissemination activities
collaborators to leverage regional experience and networks.
including website, brochures, and publications.
• Harnessing additional sources of financing, such as the ii. Enhanced Preparation and Supervision. To ensure high-quality
Global Environment Facility, Korean Green Growth Fund, and program delivery, World Bank policies require ensuring that
others for CIWA co-financed projects.
implementation of trust fund activities complies with applicable
Bank policies and procedures and that all recipient-executed
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• Leveraging multiple sources of follow-up financing such as activities are adequately supervised and implemented in line
IDA, AfDB, and other investors to scale up projects where with the terms and conditions of the Administration and Grant
CIWA supports bankable project preparation.
Agreements and Bank supervision standards and procedures.
Estimated at 6 percent of contributions to the fund (but only
Summary of FY25 charged against actual costs), preparation and supervision costs
• Economy: CIWA’s operational economy is well within cover expenses for identifying and scoping possible projects,
conservative estimates for program management, supporting preparation, undertaking implementation support,
especially given CIWA’s extensive operational footprint in and supervision. CIWA has estimated norms to maintain enhanced
FCV-affected areas. supervision costs under six percent of contributions to the fund—
one-time identification and preparation cost of US$150,000 per
• Efficiency: For every US$1 that CIWA contributed to a project, project and implementation supervision cost of US$100,000 per
CIWA leveraged additional funding sources to provide input year for three years over the duration of a project.
of additional US$0.40.
World Bank Africa Region data show that the average cost to
• Effectiveness: A major potential investment was mobilized prepare an investment project is around US$350,000 and the
in FY25, however, the total investment value only increased annual cost for supervision of a project is around US$150,000
by ~US$100,000, while commitments increased by US$28.2 (2023 data). Costs for preparation and supervision of regional
million. For every US$1 contributed by CIWA to operations projects and projects with FCV-affected countries under IDA are
(funds committed), the program influenced US$106.7 in normally expected to be higher due to additional complexity, yet

12 Beginning in FY24, CIWA updated its value for money methodology according to FCDO’s 5Es Framework. The 5 Es are Economy, Efficiency, Effectiveness, Cost
Effectiveness, and Equity. https://www.gov.uk/government/consultations/value-for-money-a-framework-on-metrics-standards-and-disclosures/value-for-money-
a-framework-on-metrics-standards-and-disclosures
110 13 World Bank. World Bank Trust Funds; Bank Procedure. Updated 2024.