Third National Urban Water Sector Reform Project

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The development objectives of the Third National Urban Water Sector Reform Project for Nigeria are to: (a) increase access to improved water supply service in selected states of Nigeria and improve the financial viability of existing water utilities in those states, and (b) increase the investment planning capacity of participating states. The project has three components. The first component, sector reforms and water supply investments will finance civil works associated with a range of large infrastructure (water supply) investments, which are likely to include rehabilitation, upgrading, and or expansion of water intakes and treatment plans; rehabilitation and or replacement of bulk transmission pipelines; construction of new pipelines; rehabilitation and or construction of reservoirs, boreholes, and well fields; replacement, expansion, and or construction of distribution networks; replacement and installation of water meters; as well as refurbishing of laboratories and construction of new office buildings. It comprises of following two sub-components: (i) rehabilitation and expansion of water production and distribution facilities; and (ii) performance based allocation. The second component, water sector governance, institutional strengthening, and human capital development will support the design and implementation of reforms in nine states (participating states) as well as minor but urgently needed water supply infrastructure investments for quick improvements in service provision. The third component, sector wide improvement and project management at the federal level will strengthen the capacity of the Federal Government to, inter-alia, identify an appropriate financing model for the sector, and to support and monitor the reform process and utility performance.