Sector reform programme for urban water management

The sector reform programme for urban water management was set up as sectoral budget support and was run in close cooperation with the Inter-American Development Bank (Banco Interamericano de Desarrollo, BID). It comprised six phases, which covered the entire term of the Peruvian national plan for urban water management for the period from 2006 to 2015. From today’s perspective, it is regarded as a policy-based loan. The disbursement of funding was linked to progress related to reforms in the urban water management sector already agreed in policy matrices for phases I to III and phases IV to VI (policy-based lending). The project was set up to generate incentives for the necessary sector policy reforms and regulations. The second policy matrix added new issues, such as environmental protection, climate change adjustment and integrated water resource management, and focused more on structural reforms to improve the performance of the institutional framework. This evaluation relates to phases V and VI of the sector reform programme.