Attachment J.1c_LWP-Y5Annual-report-docx_Final.pdf

This publication was produced by the Lebanon Water Project under Contract No. AID-268-N-15-00001 at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government.

LEBANON WATER PROJECT

YEAR FIVE ANNUAL REPORT

[REDACTED]

This publication was produced by the Lebanon Water Project under Contract No. AID-268-N-15-00001at the request of the United States Agency for International Development. This document is made possible by the support of the American people through the United States Agency for International Development. Its contents are the sole responsibility of the author or authors and do not necessarily reflect the views of USAID or the U.S. Government.

LEBANON WATER PROJECT

YEAR FIVER ANNUAL REPORT

Program Title: Lebanon Water Project

Sponsoring USAID Office: Lebanon

Contract Number: AID-268-N-15-00001

Contractor: DAI Global, LLC

Date of Publication: November 13, 2020

Author: Lebanon Water Project

USAID.GOV LWP Y5 ANNUAL REPORT | iii

CONTENTS

ACRONYMS AND ABBREVIATIONS V

INTRODUCTION 1

SECTION I – OVERVIEW 3

SITUATIONAL UPDATE 3

SUMMARY BY RESULT 3

SIGNIFICANT MEETINGS AND EVENTS SUMMARY 6

SUCCESS STORIES 10

SECTION II – PROGRESS BY RESULT 11

RESULT A: IMPROVE SERVICE DELIVERY AND RESOURCES BY THE FIVE PUBLIC WATER

UTILITIES (THE RWES AND THE LRA) THAT ARE MANDATED BY LAW TO PROVIDE

WATER, WASTEWATER, AND IRRIGATION MANAGEMENT SERVICES IN LEBANON, AND

BY LOCAL MUNICIPALITIES WHERE FEASIBLE AND APPROPRIATE 11

TASK A.1. STRENGTHEN RWES AND LRA PLANNING AND INTERNAL OPERATIONS

MANAGEMENT 11

TASK A.2. IMPROVE BILLING AND COLLECTION 17

TASK A.3. REDUCE NON-REVENUE WATER LOSSES 18

TASK A.4. WATER QUALITY ASSURANCE PLANS IN PLACE AND ENFORCED FOR WATER

UTILITIES IN THE SELECTED AREAS OF INTERVENTION 19

TASK A.5. TRAINING AND CAPACITY BUILDING TO IMPROVE HOURS OF SERVICE 20

TASK A.6. IMPROVE COMMUNAL WATER SERVICE DELIVERY 22

TASK A.7. IMPROVE AND EXPAND WATER SERVICES FOR LEBANESE CITIZENS 23

TASK A.8. IMPROVE THE EFFICIENCY OF IRRIGATION SYSTEMS IN SELECTED AREAS 25

TASK A.9. SUPPORT THE DEVELOPMENT OF CONTEXT APPROPRIATE MODELS FOR

SANITATION SERVICE AND SEWAGE MANAGEMENT 26

TASK A.10. IMPROVE WATER RESOURCES CONSERVATION/PROTECTION 29

TASK A.11: DECREASE OPERATIONAL COSTS FOR RWES 30

EMERGENCY RESPONSE 31

RESULT B: IMPROVE CIVIC ENGAGEMENT IN WATER MANAGEMENT AND ADVANCE

CITIZEN PERCEPTION OF THE WATER UTILITIES ROLE IN PROVIDING A NECESSARY AND

VALUABLE SERVICE 59

TASK B 1. IMPROVE CUSTOMER SATISFACTION WITH SERVICES PROVIDED BY PUBLIC

WATER UTILITIES 59

TASK B.2. REDUCE NONPRODUCTIVE (WASTEFUL) USES OF WATER IN BOTH RURAL AND

URBAN SETTINGS IN THE SELECTED AREAS OF INTERVENTION 62

TASK B.3. INCREASE CIVIL SOCIETY ENGAGEMENT IN IMPROVING WATER USE BEHAVIOR

FOR ENVIRONMENT AND WATER RESOURCES PROTECTION 62

RESULT C: IMPROVE PRIVATE SECTOR INVOLVEMENT IN WATER MANAGEMENT 72

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TASK C.1. DEVELOP A PILOT PRIVATE SECTOR PARTNERSHIP TO IMPROVE WATER SUPPLY,

WASTEWATER, OR IRRIGATION SERVICE DELIVERY 72

TASK C.2. DEVELOP AT LEAST ONE PILOT PRIVATE SECTOR PARTNERSHIP TO LEVERAGE

THE FUNDING OF INNOVATIVE WATER CONSERVATION TECHNOLOGIES 73

TASK C.3. DEVELOP AT LEAST ONE PILOT PRIVATE SECTOR PARTNERSHIP TO IMPROVE

WATER USAGE AWARENESS 74

ANNEX A – MONITORING & EVALUATION REPORTING Y5-SA2 80

ANNEX B – SUMMARY OF GRANTS 91

ANNEX C – SUMMARY OF TRAININGS 95

ANNEX D – SUMMARY OF GENDER INTEGRATION ACTIVITIES 97

ANNEX E – SUMMARY OF SHORT TERM TECHNICAL ASSISTANCE 98

ANNEX F – ENVIRONMENTAL COMPLIANCE 103

ANNEX G – SUMMARY OF CONSTRUCTION WORKS STATUS 107

ANNEX H – SUMMARY OF COMMUNICATION AND MEDIA 114

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ACRONYMS AND ABBREVIATIONS

ABA Allied Business Advisors

ACWUA Arab Countries Water Utilities Association

ALI Association of Lebanese Industrialists

AUB American University of Beirut

BMLWE Beirut-Mount Lebanon Water Establishment

BWE Bekaa Water Establishment

CDCS Country Development Cooperation Strategy

CCIAZ Chamber of Commerce, Industry, and Agriculture Zahleh and Bekaa

CSO Civil Society Organization

DAI DAI Global LLC

DG Director General

DO Development Objective

EBRD European Bank for Reconstruction and Development

ERAC Environmental Review Assessment Checklist

ERO Environmental Review Officer

ERP Microsoft Dynamics NAV-Enterprise Resource Planning

FOM Field Operations Manual

GIS Geographical Information System

LRA Litani River Authority

LRC LebRelief Council

LWP Lebanon Water Project

MoEW Ministry of Energy and Water

NLWE North Lebanon Water Establishment

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O&M Operation and Maintenance

PDOC Projects Decreasing Operational Cost

PODA Project Outside of Demonstration Area

PPP Public Private Partnership

Q1 Quarter One

Q2 Quarter Two

Q3 Quarter Three

Q4 Quarter Four

RWE Regional Water Establishment

SLWE South Lebanon Water Establishment

USAID United States Agency for International Development

WELI Water Efficiency in Lebanese Industry

WQAP Water Quality Assurance Plan

WSA Water Security Analysis

WW Wastewater

WWTP Wastewater Treatment Plant

Y1 Year One

Y2 Year Two

Y3 Year Three

Y4 Year Four

Y5 Year Five

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USAID.GOV

LWP Y5 ANNUAL REPORT | 1

INTRODUCTION

The goal of the United States Agency for International Development (USAID) Country Development Cooperation Strategy (CDCS) for Lebanon is “improved accountability and credibility of public institutions, and broader economic prosperity”. In the water sector this CDCS is advanced through USAID’s Development Objective (1) (DO1) of “improved capacity of the public sector in providing transparent quality services across Lebanon”. In line with USAID’s DO1, the Lebanon Water Project (LWP) is a five-and-a-half-year activity funded by USAID with a goal to increase reliable and sustainable access to water for citizens, improve water management practices, enhance the efficiency and sustainability of the Regional Water Establishments (RWEs) and the Litani River Authority (LRA), reduce non-revenue water, and improve irrigation water use.

Building on past USAID assistance to the Lebanese water sector and partnering with the Beirut- Mount Lebanon Water Establishment (BMLWE), Bekaa Water Establishment (BWE), South Lebanon Water Establishment (SLWE), North Lebanon Water Establishment (NLWE), and LRA, LWP strives to meet its ultimate objectives through three interrelated results:

Result A: Improve service delivery and resource management by the five public water utilities (the four RWEs and the LRA) that are mandated by law to provide water, wastewater, and irrigation management services in Lebanon, and by local municipalities where feasible and appropriate.

Result B: Improve civic engagement in water management and advance citizen perception of the water utilities role in providing a necessary and valuable service.

Result C: Improve private sector involvement in water management.

The implementation of these results, along with associated tasks and activities, has taken and will continue to take place at the RWEs including specific areas referred to as “Demonstration Areas”, which have been identified as the Cazas of Koura, Metn, Zahleh, and Jezzine.

LWP moved forward in Year Five (Y5) with its activities, despite the political and economic turmoil that started in October 2019, and despite the COVID-19 virus worldwide health crisis that reached Lebanon in February 2020. On October 17, 2019, and as a reaction to planned new government taxes, protests arose and quickly spread throughout the whole country, as protesters demanded the government’s resignation and the adoption of political and economic reforms. As the Lebanese government resigned yielding to pressure and the new government was appointed, protests slowed down while economic and banking measures continued being imposed by the Lebanese banking system and continued slowing down business, even to a halt at times. By mid- January 2020, and as Lebanon was still dealing with the fallouts of the political and financial crisis, the COVID-19 virus was rapidly spreading, with the newly elected government attempting to contain it. By mid-March 2020, after closing schools and implementing health and safety measures, and to better manage the health crisis, the government was forced to implement a national lockdown, with general mobilization of various security forces including the Lebanese Armed Forces, ordering business shut down, recommending work from home, imposing curfew hours, and leaving only few public institutions open offering essential services. The complete lock down imposed in March 2020 was lifted on May 18, 2020, with various mobilization measures taken repeatedly to slow the spread of the virus. To make matters worse, on August 4, 2020, hundreds of tons of ammonium nitrate exploded at the port of Beirut, rocking the capital, killing over 200 hundred people and injuring over 6000, completely destroying some city neighborhoods, and leaving homeless more than 300,000 families.

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Lebanon was shoved into an urgent humanitarian crisis never seen before, leading the government to resign again. This catastrophe prompted the international emergency response of many countries and caused LWP to modify some of its activities to adjust to the new country realities.

Despite all these dire circumstances that caused programmatic delays and changes, LWP still implemented activities as described in this report, which covers the period starting September 30, 2019 and ending September 29, 2020. The report is structured into three main sections: Section I provides an overview of LWP activities over the course of Y5. Section II shows specific progress of LWP Results A, B, and C for Y5 and next steps. Section III focuses on LWP management and operations.

The annexes to this report provide additional information on:

Annex A: Monitoring and Evaluation Reporting for Y5.

Annex B: Summary of Grants for Y5.

Annex C: Summary of Trainings for Y5.

Annex D: Summary of Gender Integration Activities for Y5.

Annex E: Summary of Short Term Technical Assistance provided by LWP in Y5.

Annex F: Environmental Compliance Reporting for Y5.

Annex G: Summary of Construction Works Status for Y5.

Annex I: Summary of Communication and Media for Y5.

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SECTION I – OVERVIEW

This section provides an overview of LWP activities in Y5 and includes a summary of the LWP quarter by result, a summary of important meetings and events, and a synopsis of lessons learned.

SITUATIONAL UPDATE

While economic activity around the world has dramatically slowed as a result of the COVID-19 pandemic, Lebanon has suffered even further because of two embedded layers of national political and financial crises upon which the public health situation is overlaid.

As for the political crisis, in October 2019, after the government attempted to levy a set of additional taxes, protests erupted all over Lebanon in response. Soon enough, thousands of protestors took to the streets, demonstrating peacefully at first and calling for the removal of the elitist political class with an overhaul of the corrupted nepotistic system, and asking for an independent government composed of technocrats to take the reins and implement reforms. A financial crisis tailed this political wind of change and led to new skyrocketing conversion rates of the Lebanese pound against the U.S dollar, which had been pegged at LBP 1500 to $1.00 USD for over 20 years. As a consequence, the originally peaceful demonstrations soon turned into rioting and clashing with government security forces, and by January 2020, they had forced the incumbent government to resign and a new government to be appointed. Despite this encouraging turn of events, the financial woes exacerbated into a liquidity crunch of unseen proportions, which led to the closure of most banking institutions, restricted access to bank deposits and loans, especially in foreign currency, and an inability to move capital and funds. Needless to say, most businesses in Lebanon were deeply impacted by the political and economic turmoil; some were brought to a total halt.

While the new government was attempting to develop strategies to rescue Lebanon’s sinking boat, the first case of COVID-19 hit the country in February 2020. To prevent further spread of the COVID-19 virus, schools were shut at the beginning of March 2020. On March 15, the newly elected Cabinet, along with the Higher Defense Council, declared a general mobilization period and a national lockdown to contain the pandemic. Originally planned for two weeks, the lockdown was renewed periodically until May 18, 2020 and was combined with a curfew and mobility restrictions for increased efficiency. By the end of June 2020, political, economic, and financial conditions in the country were disastrous enough to jeopardize the future viability of many private and public sector entities, including the RWEs. As the lockdown was removed and activities slowly returned to their normal pace, general mobilization with travel restrictions was extended until December 2020.

However, the massive explosion at the Beirut Port on August 4 sent the city and country into a spiraling humanitarian crisis, prompting international response, and leading the government to resign less than a week after the blast leaving it to operate in a caretaker capacity. This perfect storm had a dampening effect at a national level, which also adversely impacted freedom of movement between regions, normal business dealings, as well as social and professional interactions.

SUMMARY BY RESULT

LWP continued its simultaneous implementation of Results A, B, and C. These results, and their related tasks and activities, are interdependent and build on one another to create an inclusive and mutually reinforcing approach that will deliver comprehensive results. Through Result A, LWP directly strengthens the RWEs and LRA from within, making them efficient in management and service delivery. Building on Result A improvements, Result B seeks to restore a balanced

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relationship between the improved RWEs and LRA and citizens by turning citizens into responsible customers that have rights, but also obligations towards the RWEs and LRA. Finally, building on the ground laid by both Results A and B, Result C seeks to remedy the existing disconnect between the Lebanese public and private sector by bringing both sectors closer via cooperation and partnership.

Below is a synopsis of Result A, B, and C accomplishments in Year 5.

Result A: Improve service delivery and resource management by the five public water utilities (the four RWEs and the LRA) that are mandated by law to provide water, wastewater, and irrigation management services in Lebanon, and by local municipalities where feasible and appropriate

To directly strengthen the RWEs and LRA to improve efficiency in management and service delivery, LWP continued its RWE internal operations management assistance, water demand management, training and capacity building, and infrastructure support activities throughout Y5, in addition to preliminary actions under the new Task A.11 added in the Y5-Q3 contract modification.

This year’s RWE and LRA planning and internal operations management highlights include updating the RWE business plans, completing a first of its kind financial model for the LRA, assisting SLWE with the launch of its “Heeram” digitized smart management system, and continuing asset valuation/management and internal audit support. Microsoft Dynamics NAV-Enterprise Resource Planning (ERP) support continued as a priority intervention this year, with LWP team working remotely to provide support to the BWE, NLWE, and SLWE with their daily tasks related to the ERP, validating and reconciling financial data, issuing payroll, refining financial reports, and adding new features as needed. In Y5-Q4, LWP assisted BWE in cleaning its 2020 financial data and identifying missing entries to be fed into the ERP system. On September 14, the BWE Director General approved the ERP re-implementation and upgrade, certified that the system was operational, and requested LWP’s continuous support with verification and correction of financial data.

Water demand management (WDM) and continued enforcement of water quality assurance plans (WQAPs) marked another Y5 highlight. LWP obtained special clearance to enter the demonstration areas during the pandemic lockdown to complete meter readings for WDM activities to ensure water readings and consumption analysis data was available to inform the project and RWEs. LWP also began an initiative to procure laboratory equipment for the LRA’s laboratory facility, based on WQAP recommendations. In addition to WQAP enforcement, LWP continued its work on a national water security analysis (WSA) for Lebanon, in collaboration with the American University of Beirut (AUB). The national WSA will be completed early in Y6 and will serve as a key tool for Lebanon’s Ministry of Energy and Water to prioritize investments to improve water security throughout the country.

LWP continued progress in the Jezzine, Metn, and Koura demonstration areas under a “closing the water loop” approach. LWP completed construction works in the Jezzine demonstration area on March 13, 2020 according to schedule and began the handing-over process on June 16, 2020. At the end of Y5, the subcontractor and consultant were rectifying the last issues observed in the final handover visit. Works completed in the Jezzine demonstration area include the rehabilitation of a customer service center, four wells, three springs, two pump stations, eleven reservoirs; the construction of three new water reservoirs, 8.7 kilometers of water transmission lines, 40 kilometers of water transmission networks; and installation of 3,900 customer water meters, 65 source and district water meters, and six chlorination systems among others. Construction works in the Metn demonstration area were on hold in portions of Y5-Q2 and Q3 in compliance with COVID-19 government restrictions, but works resumed in April 2020 and continued at pace. At the

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end of Y5, ongoing works in Metn include installation of 29,000 customer water meters and 77 source and district water meters; rehabilitation of 10 reservoirs; and complex testing of bacteriological, chemical, and physical characteristics of water at 10 project sites continued to ensure overall water quality and safety. Construction work continued in the Koura demonstration area this year, including the addition of the rehabilitation the Jdradeh-Fiaa pumping line. Ongoing works include the rehabilitation of the Jradeh pumping station and surrounding wells, construction of a reservoir, over seven kilometers of water distribution network pipes, and installation of 1,150 customer meters and 25 source and district meters, estimated for completion at the end of Y6-Q1 due to prior delays related to the COVID-19 pandemic.

Task order modification 8 enacted in May 2020 introduced new Task A.11: Decrease operational costs for RWEs, in direct response to the financial and political crisis that has gripped Lebanon since October 2019 and been compounded by the COVID-19 pandemic. The crisis caused many water customers to stop paying their bills and the RWEs’ revenues have declined sharply. Facing the challenge of having to continue providing water and wastewater services with significantly reduced revenues and resources, the RWEs need immediate assistance in providing water and helping to prevent further instability as Lebanese citizens are already criticizing the poor provision of government services. LWP will assist the RWEs and LRA in lowering operational costs, thereby offsetting revenue shortfalls.

In Y5, LWP completed its first deliverable under new Task A.11. LWP selected 17 sites for intervention across the four RWEs and LRA and submitted the list and baseline cost data to the project COR for approval. The interventions include replacing several pumps and control panels at nine pumping stations to improve operations and maintenance efficiency and installing photovoltaic panels at eight wastewater treatment plants and pumping stations, which will then be able to rely on solar energy for 25% of their energy needs. These interventions will successfully decrease operational costs for the RWEs, minimizing the impact of decreasing revenue due to the economic crisis on the RWEs’ ability to provide necessary water service delivery. Alongside initiatives related to new Task A.11, LWP also prepared multiple emergency response activities to assist BMLWE following the ammonium nitrate explosion at Beirut’s port on August 4.

Result B: Improve civic engagement in water management and advance citizen perception of the water utilities role in providing a necessary and valuable service

Building on Result A, LWP worked to improve civic engagement in water management and advance citizen perception of the water utilities this year among the growing economic, health, and political crises. LWP refined its communications strategy to implement changes in messaging and its communications tools, reflecting the ongoing COVID-19 health crisis and the current economic and political crises in Lebanon, and provided remote assistance to communications teams within the RWEs. LWP launched its water conservation communication campaign for BMWE, NLWE, and SLWE in Y5-Q4 as part of a task under Result B designed to improve RWE customer satisfaction.

The campaign features messages that tap into the current patriotic mood within Lebanon to engage citizens in water conservation efforts, accompanied with images of the Lebanese cedar tree, a prominent national symbol. The campaign consists of 14 billboards along the main coastal highway and mountain routes in Mount Lebanon and North Lebanon and 100 billboards along main roads around Jezzine and Sidon.

LWP’s grants program continued through Y5 under the Result B task designed to increase civil society engagement in improving water use behavior. Grantee Chamber of Commerce, Industry, and

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Agriculture – Zahleh and Bekaa (CCIAZ) completed its “Improving water availability, quality, and uses in agriculture and industry in the Bekaa” grant in Y5-Q1, with 14 industries compliant with Lebanese Environmental Limit Values for discharge at the end of the program. Grantees Jezzine Foundation for Culture and Heritage and USJ Chaire de L’Education a L’ Eco-citoyennete et au Developpement Durable (CEEDD) continued their awareness and outreach programs in various schools in the Jezzine and Metn demonstration areas. Grantee LebRelief Council (LRC) launched its virtual activities via WhatsApp call sessions for the Koura demonstration area in Y5-Q4 to a positive response from community members. In addition to the grants portfolio, LWP finalized its student research project with students from Université St. Joseph and Notre Dame University in Y5-Q3 and completed this project in Y5-Q4.

Result C: Improve private sector involvement in water management

Building on Results A and B, LWP has improved private sector involvement in the water sector by creating a strategic model performance-based framework for the RWEs to support approved Public- Private Partnership (PPP) interventions. LWP’s PPP expert developed the three performance-based contract models with detailed scopes of work and tender documents for BWE, NLWE, and SLWE.

The BWE PPP effort focuses on wastewater and is currently seeking funding. The NLWE PPP effort centers around overall improvement of Tripoli’s water system, which the European Bank for Reconstruction and Development (EBRD) is considering funding. The SLWE PPP focuses on reducing SLWE’s energy costs through investment in solar energy. The ongoing economic and political created a sizeable obstacle to PPPs because of the current inability of the RWEs and some private sector firms to engage in financial borrowing or loan activities. Completion of the PPP efforts described above is likely to be hindered until Lebanon achieves greater economic stability.

Despite these challenges, a separate PPP initiative for BMLWE to pursue a feasibility study for the proposed Hrach Hydropower Plant moved forward in Y5. LWP launched the request for proposals in April 2020 and received eight proposals in June 2020. LWP selected the feasibility study subcontractor soon after and held a kick-off meeting on September 21, 2020. The study will provide necessary information on the technical, financial, and economic return of the project, especially as it pertains to offsetting the energy costs of BMLWE’s nearby pumping station. Having a clear financial picture on this endeavor will increase BMLWE’s chances entering into a PPP with a private sector entity.

For additional detailed information related to Results A, B, and C, please refer to Section II of this report.

SIGNIFICANT MEETINGS AND EVENTS SUMMARY

Below is a summary of significant meetings and events for Y5.

October 7 and 8, 2019 – UNESCO’s national workshop on nature-based solutions for water.

UNESCO organized a national workshop entitled “National training on Nature Based Solutions for Water” on October 7 and 8. LWP attended this workshop, facilitated the participation of all RWEs through its Utility Coordinators, and shared its own experience with the Incentive Rebate Program for industries and farmers, the water stewardship initiative, the cooperation with dairy industries to treat whey solution with high BOD and improve water conservation, and its extended civic engagement efforts across the various LWP activities.

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October 17, 2019 – Meeting with the Ministry of Energy & Water to push forward PPP.

Following up on discussions held during the International Beirut Energy Forum, LWP team met with the Minister’s advisor on October 17 at the Ministry of Energy and Water (MoEW). The discussions included general follow-up on the PPP dossier developed for the three RWEs, with emphasis on the Tripoli project, which was submitted to the Ministry be forwarded to the Higher Council for Privatization. Other discussions included the Hrach hydropower plant for which LWP will pursue a feasibility study. In addition, LWP discussed its civic engagement efforts with communities of the demonstration areas, findings and concerns of these communities, and shared its thoughts about volumetric tariffs. LWP and MoEW agreed to hold discussions with the RWE DGs, which took place at a later stage during the year.

November 7 and 29, 2019 – Meetings to support and coordinate with the USAID-funded Community Support Program (CSP).

At CSP’s invite, LWP met on November 7, with the CSP Chief of Party (COP) and Task Order (TO) 5 team to discuss LWP wastewater (WW) related matters that might assist TO5 with its activities.

The COP also discussed general coordination channels between CSP (TO4 and 5) and LWP for the future, to avoid duplication and share LWP’s expertise and sector knowledge. CSP and LWP agreed to coordinate capacity building activities on TO4 and continue cooperation on TO5. Again, on November 29, LWP met with the CSP Task Order (TO) 3 team to discuss LWP’s approach for bridging the gap between the RWEs, municipalities, and union of municipalities. The purpose was to help CSP finalize its interventions and focus its activities on works needed without replicating LWP’s activities at the municipal or the RWE level. By the same token, CSP wanted to capture LWP’s experience in working with Civil Society Organizations (CSOs) and local authorities, especially as it pertains to do’s and don’ts, entry key points, and the breadth of the municipal legal mandate when dealing with the RWEs. CSP expressed their appreciation for LWP’s “invaluable” support through information sharing, time invested, and guidance.

December 13, 2019 – Meeting with BWE and the Unions of Municipalities of the West Bekaa.

Based on LWP objectives and recommendations from the Irrigation Master Plan, and to strengthen partnerships between BWE and the Bekaa municipalities, LWP met, on December 13, with the West Bekaa Unions to discuss the draft Memorandum of Understanding (MOU) that was approved by the BWE Board. Most attendees welcomed the initiative despite the current situation and took the MOU back to their respective boards for a wider spread and for signature.

January 7, 2020 – LEWAP’s water conference workshop on nature-based solutions for water.

LEWAP is a platform supported by the Agence Francaise de Developpement and the Rhone Mediterranean Corsica Water Agency. This platform is for exchange of information and sharing experiences among the stakeholders of the water and sanitation sectors in Lebanon. LWP attended LEWAP’s conference on characterization and monitoring of water quality in Lebanon, at the French Institute of the French Embassy. Main speakers addressed the academic research by universities on water quality: AUB is leading a continuous monitoring exercise on the Qaraoun lake, Balamand University is carrying-out a monitoring exercise on the Abou Ali river, while the Lebanese University is focusing on Akkar. At the same time, the universities confirmed that many research papers of graduate and Ph.D. students are being developed around this topic. Main recommendations by the attendees also confirmed the need for universities, government institutions, and the community to coordinate together through having the universities disclosing and publishing openly their research findings, as a first step.

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January 27, 29, and 31, 2020 – Leadership training for BMLWE and SLWE women staff.

LWP conducted a three-day training for 18 women staff from BMLWE and SLWE. The training, meant to empower women staff in their work through communication skill and increase persuasion and influence, covered topics like communication, negotiation, leadership methods, change management, public speaking, among others. Women participants included several senior-level staff who could potentially influence decision-making and came from varied backgrounds such as engineering, customer service, accounting, laboratories, and others.

February 24, 2020 – AUB/Oxfam’s water management conference.

LWP participated in the AUB/Oxfam conference on water management. Discussions during the event centered on water management practices in crisis situation, and attendees included the DG of each RWE and LRA as well as most of the community working on supporting the water sector.

February 26, 2020 – NLWE/FAO’s water resources conference.

LWP attended this event where FAO presented the innovative automated work it performed within NLWE’s jurisdiction, with the support of the Swiss Agency for Development and Cooperation. The work entailed “Improving Water Resources Monitoring System” with a focus on water resources (quality and quantity) in Minieh and Akkar (North Lebanon) that is for irrigation purposes.

February 27, 2020 – SLWE’s launch of its digitized management system.

LWP attended the launch of “Heeram”’ the SLWE new smart management system. The new digitized system was introduced during a formal ceremony held under the patronage of the President and in the presence of ministers, MPs and a host of other officials. Named Heeram – after the Phoenician southern king who was credited with growing Tyre and turning it into a wealthy port city

– the new system garnered positive media coverage over several days, potentially enhancing the image of SLWE with the public. Building on USAID’s assistance through its various projects over the years, SLWE developed four applications to help manage its water networks, maintenance and bill collection needs, laboratory testing and water quality monitoring, thus increase efficiency, lowering costs, reducing errors, and increasing transparency.

March 9, 2020 – BMLWE detection of illegal connections.

LWP attended the launch of a workshop for the mapping and detection of illegal connections by BMLWE on March 9, 2020. During the event, BMLWE demonstrated its potential capabilities to discover illegal connections using advanced Geographic Information System (GIS) tools and features.

The detection exercise was performed over the Bourj Hammoud area by a BMLWE GIS expert consultant. Additional funding will be needed to extend detection to all of BMLWE’s coverage area.

The importance of this exercise resides in the fact that it helps BMLWE with detecting NRW and reducing it, thereby increasing its efficiency as a water establishment.

April 7, 2020 – LWP support to PPP initiatives at a national level.

Through its Water Stewardship program, LWP contributed on a Berytech webinar under the “Clean Technology Learning Series.” The series focuses on three pillars: Waste Management, Water and Wastewater, and Renewable Energy. The water and wastewater session showcased LWP activities and initiatives and the webinar was attended by more than 120 participants, with many asked interesting questions.

https://www.facebook.com/groups/CleantechAgriTechCommunity/permalink/559586191341112/.

June 17, 2020 – Completion of training on meters in the Jezzine demonstration area.

LWP completed the training on meters (district and customer), chlorinators, and electrical systems for 13 SLWE staff on June 17, 2020. The training, which started on March 10, was conducted for two

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out of three days, whereby the last day (March 12) was suspended due to the closure of the SLWE because of the COVID-19 threat and the DG’s request to immediately cancel all training activities.

The training focused on customer meters with a demonstration on the meter reading software. It was delivered by the supplier Poseidon at SLWE’s office in Saida. In compliance with COVID-19 protective measures, trainees wore masks and were seated according to the appropriate physical distancing. The trainees showed interest in the material and were engaged in the session.

June 17, 2020 – Water Innovation Lab (WIL) initiative.

This was the first meeting with the participants of the Water Innovation Lab (WIL) program. The purpose of this meeting was to mentor students on ideas, problems faced by the water sector in Lebanon, and leadership skills/requirements. Over 15 experts and 80 participants (all Lebanese with some from abroad, except for one Jordanian engineer) were present. Participants came from different backgrounds, including various engineering specialties, law, environmental sciences, and sociology. Both LWP and AU participated in the meeting and Dr. Nadim Farjallah, from the American University of Beirut (AUB)- Issam Fares Institute/IFI, did a presentation using data on the water security analysis (WSA) work done in cooperation with LWP. The feedback given by the LWP team was highly appreciated as it brought “outside the box thinking” to participants and it shed light on the need for involving non-engineering specialties in water innovation. The mentorship process will continue until the end of the WIL program with interventions from LWP in specific sessions.

August 18, 2020 – LWP and BWE ERP meeting.

Upon the BWE DG’s request and prior to him signing off on the ERP reimplementation, he asked the LWP team to go over all the financial reports, prepared by the ERP consultant and validated by LWP and BWE teams, with the financial manager and the designated ERP focal point. The meeting took place on August 18. The BWE team was able to see the links between the modules and the reporting system; they also stressed on the importance of auditing the opening balance for 2018 and 2019 fiscal years, requesting LWP support in doing this. The meeting also included a discussion on the upcoming ERP support contract, which LWP issued for the period extending from September 1, 2020 until December 31, 2020.

August 26 and 28 and September 4, 2020 – Launch of the LWP Emergency Response to the Beirut Port Blast.

On August 26, 2020, LWP developed and released the Request for Quotations (RFQ) “HDPE Pipes for Beirut Mount Lebanon Water Establishment (BMLWE) as an emergency response following Beirut Port Explosion”. The bids were received by end of August. By September 2020, LWP had completed all evaluations and was awaiting budget decision before awarding the contract.

On August 28, LWP released the Request for Proposal (RFP) for the procurement and installation of generator sets at selected BMLWE water and wastewater stations affected by the Beirut explosion.

By end of September 2020, LWP was ready to award the purchase order of generator sets for

BMLWE.

On September 4, 2020, and in order to assist BMWLE in its recovery from the blast, LWP launched the RFQ for the procurement of chlorination spare parts. By end of the month, LWP evaluated all quotations received and was awaiting a budget decision before awarding the contract.

September 28, 2020 – Launch of the construction of the Roum constructed wetland.

As construction works had started on site (tree cutting, fence and sign board installation), on September 28, 2020, LWP held a coordination meeting at its office with the design consultant and construction sub-contractor to discuss ways to move forward faster, while making up for time lost

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because of country conditions. In parallel, the LWP Water Resources Management Team also held a meeting on the same day with the President of the Union of Jezzine Municipalities and activists from the civil society to brief them on the Roum CW project and answer questions.

SUCCESS STORIES

Despite the many accomplishments of LWP during Y5, and because of the health, political, financial, and humanitarian crisis of the country, LWP did not submit any official success stories in Y5.

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SECTION II – PROGRESS BY RESULT

Below is a summary of the LWP progress for Y5 under each LWP Result, related tasks, and deliverables. At the end of Results A, B, and C, a detailed table of tasks and associated activities indicates progress specific to each task and its activities.

RESULT A: IMPROVE SERVICE DELIVERY AND RESOURCES BY THE FIVE

PUBLIC WATER UTILITIES (THE RWES AND THE LRA) THAT ARE

MANDATED BY LAW TO PROVIDE WATER, WASTEWATER, AND

IRRIGATION MANAGEMENT SERVICES IN LEBANON, AND BY LOCAL

MUNICIPALITIES WHERE FEASIBLE AND APPROPRIATE

TASK A.1. STRENGTHEN RWES AND LRA PLANNING AND INTERNAL OPERATIONS

MANAGEMENT

This task involves assistance to the RWEs to improve their governance. It includes activities related to planning, the ERP software platform, training, asset management, GIS, and risk management. It is to be noted that due to the COVID-19 lockdown and reduced working hours, work with the RWEs slowed down. LWP maintained remote support where possible but some activities were delayed.

The impact of these delays is not major and LWP was able to make up for some lost time.

Business Planning and Risk Planning

Business plans. The RWEs have been affected by the series of events that shook the country since October 2019. The political upheaval (still ongoing), followed by the near collapse of the economy and the devaluation of the Lebanese pounds – reaching lows of 500% of the pegged rate, the COVID-19 pandemic, and lastly the Beirut Port blast, have all been reflected in varying degrees on the financial and operational viability of the RWEs, fast approaching breaking point. Some of the current key challenges facing the RWEs include:

Required Procurement in foreign currency, which means purchasing power substantially decreased due to exchange rate.

Reduced revenues resulting from a dramatic decrease in water tariff collection rates.

Reduced pumping hours to save on energy and consumables and reduced quality/quantity of services, both resulting in lower customer satisfaction hence lower collection.

Reduced manpower, mainly contracted staff, to save budget for essential staff and payments.

With the renewed interest of the DGs in business planning, and despite country circumstances, LWP still launched the business plan updates, in Y5-Q2, using the Risk Management Plans as the basis to identify new strategic objectives. However, following consultations with the DGs, LWP understood that their priorities changed as a result of the above described conditions. Their current focus is to address their many challenges and to secure cash flow in order to continue operating as best as possible and survive this difficult period. For this reason, the RWEs expressed reluctance to pursue this activity as they are not in a position to plan and set five-year strategic goals in such highly unstable times. LWP will be discussing this with USAID to assess whether there are other ways to support the RWEs in this regard.

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LRA financial model. LWP focused on completing the financial model for LRA in Y5. The model is a strategic management tool designed to forecast LRA’s financial performance based on calculating its water balance. LWP started this activity in Y5-Q2, after working with LRA’s director of hydropower to review LRA’s water balance and agree on the initial concept of the model. By May 2020, LWP had designed the model and shared it with LRA to start populating it and trial test it. By mid-June 2020, water balance data was inputted as LWP added additional codes for each of LRA’s water sources, thereby making the model more user-friendly for tracking information. LWP also finalized the model’s built-in guide, which helps new users utilize it easily and effectively, and submitted the financial model to the DG on June 30, 2020. The financial model consists of a projection of LRA's revenues and expenses, derived from calculating the water balance for all LRA’s water sources, broken down by profit and cost centers. This information allows LRA to assess the profitability and impact of new projects and operational decisions on its sustainability. As such, the financial model is key for optimizing LRA's operation and improving its financial planning and decision-making process.

LWP will continue its follow-up with LRA in the upcoming months to ensure users have fully grasped the model and are making adequate use of it, offering support as needed.

Governance Framework

The objective of this activity is to create a better control environment and support fairness, transparency, and institutional accountability, which in turn would lead to enhanced efficiency, effectiveness, confidence, and credibility in the work environment. The governance framework and manuals were planned for NWLE and SLWE. These have been developed in accordance with the Organization for Economic Cooperation and Development/OECD guidelines. Public sector governance represents a set of responsibilities, practices, policies, and procedures used by management to lead the organization towards its strategic direction, ensuring the achievement of objectives while properly managing risks, and making best use of available resources. The status of this activity at NWLE and SLWE in Y5 is described below:

NLWE. LWP completed NLWE’s governance manual in Y5-Q1 and continued supporting NLWE throughout Y5 in implementing the governance guides because they are crucial for establishing and institutionalizing efficiency at NLWE and helping it meet its goals.

SLWE. LWP started this activity with analyzing SLWE’s operating cycles and preparing a general governance framework However, in 2018, the new DG hired a governance consultant. As a result, and after conferring with the DG, LWP stopped working on this task to avoid duplication of efforts, confirming the team’s willingness to support and review outputs if and when needed. LWP submitted the General Guide and Business Process Mapping covering financial and managerial workflows to

SLWE.

Ghassan Gebran, LRA Head of Hydro-investment Directorate

“This is the first time we have such a scientific model that allows us to analyze data and produce reports, almost instantaneously. We used to do everything by hand throughout the year. LWP input every imaginable cost-related variable into the model to allow the authority to understand the impact of everything, from projects, to electricity, to irrigation, to maintenance, to depreciation, to salaries, etc…. By analyzing such data, we will be able to decide what is the best tariff we should impose on customers in order to cover our costs, and what are the feasible interventions we should make. It will also allow us to calculate the water balance for LRA.”

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Asset valuation and asset management

LWP completed its updating of the annual fixed assets and the depreciation report for fiscal year 2019 from the ERP system in the summer of Y5. LWP started this exercise in Y4 after having done a full asset documentation and valuation for NWLE and SLWE, and an update for BWE, and then integrating the data into the ERP system in Y3.

Internal audit.

As part its financial assistance to the RWEs, LWP continued its support to the RWEs as follows:

BMLWE and BWE internal audit. In Y5, LWP supported BMLWE and BWE with enhancing their financial data and reporting, which will feed directly into future audits, both internal and external, and is fully in line with USAID’s goal to develop the institutional capacity of the RWES and the implementation of ERP systems across all four RWES. For this purpose, LWP worked closely with the BMLWE and BWE finance departments over a period of several months to review, verify analyze, reconcile, and adjust their financial records and transactions, both on paper and in the ERP system. By completing this task, LWP provides the RWEs with up-to-date, audited financial data, allowing them to have for the first time an opening balance and prepare accurate end-of-year financial statements, all generated from the ERP system. This task also provides BMLWE and BWE with a baseline for future financial reporting and internal audits, and makes them prepared to face any external audit, as mandated by their by-laws.

The methodology used by LWP for this exercise was to review and audit the RWEs’ main financial statements and accounts. The review included verifying the accuracy of the recorded values, adjusting them as needed, explaining the findings and observations, and confirming the posting of all financial transactions into the ERP along with their supporting documents. This was done directly with the respective RWEs. Working closely with the RWEs teams over a period of many months and conducting on-the-job training and coaching has significantly helped in building their skills and confidence in financial verification and reporting.

This activity culminated in audit reports developed for BMLWE and BWE representing the findings and specific recommendations. The reports also identified gaps and weaknesses in their work flow and procedures and suggested a list of corrective measures to be adopted. The BMLWE and BWE audits reports, as well as general audit manual, which will be submitted in October 2020, will serve as key guides for the finance departments of the two establishments going forward.

NLWE. For the third consecutive year, LWP started the annual internal audit exercise at NLWE in January 2020 and will be completing it along with the audit manual by Y6-Q1 for increased sustainability.

SLWE. Similar to NLWE, for the third consecutive year, LWP started the annual internal audit exercise at SLWE in January 2020 and will be completing it along with the audit manual by Y6-Q1.

More important, SLWE, as all water establishments, faced very serious cash flow problems because of plummeting bill collection rates as a result of Lebanon’s growing political, economic, monetary, and health challenges. LWP took the initiative to deliver a three-day virtual training in Y5-Q3 on financial analysis to the SLWE audit team to help them better understand, analyze, and address the establishment’s financial situation. The sessions were held via Zoom video conferencing. The three-day training proved to be a success and trainees requested an additional half-day practical session.

They also showed a high degree of commitment even though the sessions were held after working hours and during the holy month of Ramadan. In the written training evaluation forms, the trainees

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expressed high satisfaction with the training, liking the virtual approach. The goal of the financial analysis training was to teach the SLWE team how to analyze SLWE’s financial performance and cash flow position, in general, as well as provide recommendations on how to deal with the current financial and cash flow crisis affecting the establishment. This analysis was integrated in the internal audit exercise that LWP is doing with SLWE.

Also in Y5, LWP held the Certified Internal Auditor training for 14 participants from SLWE and NLWE. Launched in October 2019, LWP completed the six scheduled sessions in February 2020.

Participants were trained on basic internal audit concepts, preparing them to sit for Part I of the US-based Institute of Internal Auditors’ Certified Internal Audit exam when conditions permit it. Passing candidates will be certified as Internal Audit Practitioners, allowing them to apply best practices in internal audit.

ERP Software Platform.

LWP continued providing support to BWE, NWLE, and SLWE during Y5. However, LWP faced delays in implementation resulting from the COVID-19 lockdown in Y5. This impacted the tasks that needed physical presence to complete LWP activities. LWP had to adjust to the pace and rotation schedule dictated by the RWEs. At times, LWP team worked remotely to provide support to BWE, NLWE and SLWE with their daily tasks related to the ERP, validating and reconciling financial data, issuing payroll, refining financial reports, fine-tuning or adding new features, etc. (reported in the weekly and quarterly reports). Specifically:

BWE. In…