Objective and Purpose of the Assignment
 | ADB is working with governments across the Pacific to improve the delivery of public services in the water sector. In addition to investment projects such as distribution networks, ADB also supports its member countries as part of policy dialogue and technical assistance. To this end, ADB is looking for a consultant to prepare studies in three countries across the Pacific. Vanuatu. The Department of Water Resources (DOWR) within the Ministry of Lands and Natural Resources is considering comprehensive reform of the delivery of utility services in the main urban centers of Vanuatu. Currently, the DOWR operates and maintains water supply systems at five provincial centers, while Port Vila is operated under a concession arrangement managed by DOWR. A new department, the Department of Urban Water Affairs (DUWA), will potentially be established to focus on service delivery in the urban centers. The objective of this assignment is to assist the DOWR in identifying utility services reform options, including the establishment of DUWA, to achieve operationally and financially sustainable water supply services across the country. As the water supply in Vanuatu’s second largest city, Luganville, is under rehabilitation as part of an ongoing ADB project, the assignment should also explore potential PPP options for the O&M there in the context of suggestions for the creation of DUWA. Port Vila, the country’s capital city, is currently served by a private water supply operator (UNELCO) under a concession agreement and will not form part of the scope of this TOR. Tonga. Tonga Water Board (TWB) is in the process of finalizing a 5-year Corporate Strategy to guide its institutional development, service delivery improvement, and long-term sustainability. In parallel, TWB aims to develop a Water Supply and Water Resources Master Plan to address increasing water scarcity, optimize resource use, and ensure resilient and efficient water services. The consultant is expected to review and provide high-level recommendations to the draft corporate strategy, including strategic guidance for institutional development, support the delivery of dissemination awareness activities, and support the drafting of detailed Terms of Reference (TOR) for engaging a firm to develop the Master Plan. Further study. ADB is planning to prepare similar assignments for another Pacific country which will be determined at a later stage. |
Scope of Work
| The work consists of three outputs, one each for the three study countries. Vanuatu Stage 1 – Desktop Analysis and Preliminary Institutional Models (Options) I. Baseline Financial and Organizational Performance Strategy Assessment: a. Current operating costs and efficiency of operations. b. Adequacy of systems and processes for service delivery. c. Staff levels and capacity. d. Current service levels. e. Government subsidies. II. Review Corporate Plans, Financial Forecasts, and Budgets: a. Income levels and consumers’ capacity to pay for services. b. Current service levels and consumers’ willingness to pay and service satisfaction. c. Coverage of services, including potential market opportunities in terms of expanding the customer base over the medium term. d. Review governance arrangements, clarifying institutional roles and responsibilities, and its impact on operations. III. Examine Current Operational Performance: a. Condition of water supply assets. b. Financial losses for each of the services and current investment programs. c. Evaluate water resources and their impact on services, options for reducing costs or meeting demand, land and land-use, and opportunities and constraints for service improvement. IV. Review Targeted Service Levels and Scope for Improving Utility Service Levels: a. Establish asset operations/maintenance/refurbishment needs and capital investment needs to achieve agreed service levels. b. Outline preliminary institutional models (options) for service delivery by the proposed DUWA. Stage 2 – Options Specification and Recommendations I. Reform Options Specification and Recommendations: a. Evaluate the range of options, specifications, and recommendations on the way forward to achieve sustainable operational and financial performance (full cost recovery). b. Consider local capacity, the small size and relative geographic isolation of the urban centers, and potential private sector interest in public-private partnerships. c. Analyze the local legal and regulatory framework, including tariff and service level regulation, and constraints for the implementation of any of the options. d. Recommend levels of service possible and to be achieved, taking into account both limits on bulk supplies, freshwater resources, bulk and reticulated system limits, network losses, and consumers’ capacity and willingness to pay. e. Assess social, environmental, and gender impacts and mitigation measures. f. Estimate cost-recovery and the funding gap until the DOWR or its successor becomes self-sustainable, taking into account government willingness to subsidize DUWA operations and capital investments. g. Evaluate lessons learned from the concession arrangements with the private water operator in Port Vila and from other successful models in the Pacific region. II. Identify and Assess Different Options for Introducing Reform for DUWA at large and the Luganville system in particular: a. Public ownership and operation of assets. b. Further restructuring of the DOWR or the proposed structure of the DUWA. c. PPP options for O&M of the Luganville water supply after the ADB project is completed (in 2032). d. Services contracts, short-term outsourcing arrangements. e. Performance-based management and operating contracts. f. Lease and affermage contracts. g. Concession arrangements. III. Provide a Detailed Action Plan for the Reform Process and Implementation of the Recommended Option: a. Ensure considerations of reform options take potential social and environmental impacts into account. b. Prepare a draft implementation plan and communication strategy (Stakeholder Engagement Plan). Tonga I. Review TWB’s Corporate Strategy a. Review the draft 5-year Corporate Strategy, including mission, vision, goals, KPIs, to identify gaps and propose high-level recommendations for improvement. b. Identify strategic gaps and propose actionable recommendations to strengthen the document. II. Strategic Guidance for Institutional Development As part of TWB’s Corporate Strategy review activity and the consultant’s global experience and international best practices, the consultant will provide high-level guidance and recommendations to strengthen TWB’s institutional framework, operational efficiency, and long-term sustainability with the objective of operationalizing the corporate strategy. This will include high-level recommendations and advice for: a. Sustainability Improvement covering water management, financial sustainability, inclusion, asset management, and investment planning. b. Operational Efficiency, including operational processes and suggestions of potential areas for outsourcing arrangements. c. Human Resources, Organizational Development, and Performance Management. d. Benchmarking and Performance Monitoring, by showcasing some existing global benchmarking practices, KPIs, and monitoring and reporting mechanisms tailored for TWB. III. Dissemination Awareness Activities, Capacity Building, and Staff Retention a. The consultant will support TWB in the internal dissemination of the Corporate Strategy, including highlighting the modifications made from the consultant’s recommendations. b. The consultant will support TWB in developing a capacity-building action plan, including recommending training topics, formats, frequency, and suggesting potential partnerships. c. The consultant will support TWB in developing a tailor-made capacity retention plan, including a case study relevant to Tonga’s context, if possible. d. The consultant will encourage TWB participation in regional utility networks and benchmarking platforms (e.g., IBNET, PWWA Pacific utility benchmarking exercises), and share relevant case studies or tools for peer learning. IV. Support Drafting of TOR for Water Supply and Resources Master Plan The consultant will support ADB team in preparing a comprehensive TOR for a future consultancy assignment aimed at developing a 20-year Water Master Plan so that outputs are aligned with ADB’s Water and Urban Development Southeast Asia and Pacific team’s standard approach for master planning. The ToR to be developed should clearly define the scope, methodology, deliverables, and qualifications required to guide water supply and water resources management planning. This includes: a. Scope of Work for the Future Master Plan Consultancy: i. Define the components of a baseline assessment covering existing infrastructure, service coverage, water resource conditions, institutional arrangements, and operational performance. ii. Detail the approach to water demand forecasting, considering demographic, economic, and climate trends. iii. Outline requirements for infrastructure planning and resource evaluation to support sustainable and climate-resilient service delivery. iv. Include the development of a fully costed and sequenced investment plan over a 20-year horizon, identifying short-term (5-year), medium-term (10-year), and long-term (20-year) investment needs. b. Methodological Guidance: i. Recommend the use of tools such as GIS for spatial planning, hydraulic modeling for system assessment, and other analytical tools relevant to water system planning. ii. Highlight the importance of stakeholder engagement, including community consultations and institutional coordination. iii. Emphasize integration of climate change adaptation and resilience planning. c. Expected Deliverables and Timeframe: i. Draft Final TOR for the Water Master Plan consultancy, including annexes (e.g., draft workplan, budget guidance, payment schedule, institutional responsibilities, reporting requirements) ii. Guidance on expected deliverables and realistic timeframes for the Master Plan consultancy (e.g., inception report, draft and final plans, stakeholder engagement outputs, investment plan). d. Key Qualifications and Evaluation Criteria, such as: i. Strong technical knowledge in water resources and supply planning, infrastructure investment, and institutional frameworks. ii. Familiarity with small islands or similar resource-constrained contexts. iii. Evaluation based on relevant experience, methodological approach, and familiarity with sector planning processes. Further Study Additional outputs for related studies in other Pacific countries may be added to the expert’s scope of work, based on prior discussion and agreement with the consultant. |
Detailed Tasks and/or Expected Output
| Vanuatu • Draft Inception Report: 1 month from mobilization. • Report on Financial Performance Assessment: 4 months from mobilization. • Report on Operational Performance Assessment: 4 months from mobilization. • Report on Service Levels and Operating and Capital Investment Needs: 5 months from mobilization. • Report on Preliminary Reform Options: 7 months from mobilization. • Workshop with DOWR and Other Relevant Stakeholders in Port Vila: 9 months from mobilization. • Draft Final Report(s): 11 months from mobilization. • Final Workshop with Other Relevant Stakeholders: 12 months from mobilization. • Final Report(s): 13 months from mobilization. • Draft Implementation Plan: 16 months from mobilization Tonga • Draft Inception Report: 1 month from mobilization. • Report on the Improvement of the Corporate Strategy: 2 months after mobilization. • High-level strategic guidance report: 3 months after mobilization. • Report on capacity-building action plan and tailor-made capacity retention plan, including dissemination activities and final adjustments to recommendations: 4 months after mobilization • Provide inputs to the TOR for the Master Plan Consultancy: throughout the assignment ADB will provide existing background information on ongoing ADB projects as well as earlier studies related to the assignments. Further information will need to be requested from the Governments which ADB will help to facilitate. |
Minimum Qualification Requirements
| • At least 15 years of experience in the design, development and implementation of corporate strategies and institutional strengthening plans for water utilities, as water sector reforms. • Bachelor’s and preferably post-secondary degree in engineering, economics, or other related fields. • Strong understanding of utility performance benchmarking, water resources management, and climate resilience. • Excellent writing and communication skills. |
