WASHINGTON, August 1, 2002
Presse Release from The World Bank Group
Yemen: World Bank To Upgrade Water Supply, Sanitation Services

Media Contact:
In Washington: Sereen Juma 1 (202) 473-7199
e-mail: sjuma@worldbank.org

The World Bank today approved a US$130 million credit to the Republic of Yemen to upgrade the urban water supply and sanitation services. The first phase of the Urban Water Supply and Sanitation Project (UWSSP) aims to increase water supplies in densely populated urban communities through improved operation and reduction of water losses. The UWSSP will also establish regional water corporations with the participation of the private sector and provide affordable sewerage facilities that will enable wastewater to be reused for agriculture.

The proposed project falls in line with the Bank’s country assistance strategy for Yemen whose objectives include promoting environmental sustainability with a strong focus on water management.

The urban water and wastewater sector in Yemen is confronted with major challenges in the face of increased water shortage in the country. The sector has been unable to cover expenses and cost of new investments. In addition, the National Water and Sanitation Authority and its branches are in need of more effective managerial and technical capabilities.

In response to these challenges, the Government of Yemen launched an Urban Water Sector Strategy in 1997 to decentralize services and achieve financial self-sufficiency by establishing water and wastewater corporations that are state-owned but operate independently on a day-to-day basis. The UWSSP supports the Government’s sector policy, placing emphasis on improving the financial viability, autonomy and the creation of opportunities for increased private sector participation.

As services from local corporations improve, it is expected that low-income households will rely less on higher-priced water supplied by private vendors. This will ease the burden on the household budget and relieve women and children, in particular, from the time-consuming task of fetching and carrying water.

The International Development Agency (IDA), an arm of the World Bank Group, which provides interest-free development assistance to the poorest countries, will issue the credit. The overall project cost is US$150 million. The World Bank credit of US$130 million will be disbursed on standard IDA terms with a 10-year grace period and a maturity of 40 years, and the Government of Yemen will contribute US$20 million.