VZCZCXRO1483
RR RUEHHM RUEHLN RUEHMA RUEHPB
DE RUEHLM #1717/01 2901156
ZNR UUUUU ZZH
R 171156Z OCT 06
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC 4498
RUEHNE/AMEMBASSY NEW DELHI 0071
RUEHKT/AMEMBASSY KATHMANDU 4458
RUEHKA/AMEMBASSY DHAKA 9502
RUEHIL/AMEMBASSY ISLAMABAD 6407
RUEHCG/AMCONSUL CHENNAI 6960
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE

UNCLAS SECTION 01 OF 02 COLOMBO 001717 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR OES/PCI SALBERG AND BLAINE 
USAID FOR ANE AND EGAT 
 
E.O 12958: N/A 
TAGS: EAID SENV MV
SUBJECT: MALDIVES - ADVANCING U.S. EFFORTS ON WATER AND SANITATION 
 
REF:  A) STATE 128229  B) STATE 128599 
 
¶1.  Summary:  Low-tech rainwater harvesting and groundwater 
collection are becoming inadequate to meet water supply and 
sanitation needs in the Maldives.  The island nation's water supply 
shortages and sanitation problems were exacerbated by the 2004 
Indian Ocean tsunami.  The Government of Maldives (GoM) seeks to 
improve water and sanitation services through post-tsunami 
rebuilding activities and attracting private investment in water and 
sanitation services.  Inadequate domestic expertise and funds are a 
challenge to reaching these goals.  End Summary. 
 
MALDIVES WATER SUPPLY AND SANITATION BACKGROUND 
 
¶2.  Maldives is an island nation with a population of 320,000.  More 
than 100,000 live in the capital, the individual island of Male'. 
The remainder are dispersed across 200 inhabited islands ("outlying 
islands") clustered in 26 separate atolls.  Maldives has long 
depended on Rain Water Harvesting (RWH) for its potable water 
requirements, augmented in some places by limited ground water. 
Population growth, urbanization, and tourism have caused both types 
of water supply to be overdrawn.  These pressures were exacerbated 
by the 2004 Indian Ocean tsunami, which damaged sewerage networks 
and contaminated many ground water sources. 
 
¶3. Water supply and sanitation on Male' and the two newly developed 
urban islands of Hulumale' and Villingili differs from that of the 
outlying islands.  On these developed islands, WSS services are 
provided by the Maldives Water and Sanitation Company (MWSC).  All 
households and commercial establishments are connected to the 
network, which has a regulated tariff system.  The WSS of the other 
200 islands is primarily administered by the islands' respective 
atoll offices.  Under this system, residents have free supply of 
water, which is sourced from either rainwater harvesting systems or 
ground water.  No treatment is carried out.  Sanitation is also 
free, and consists of semi-centralized collection, discharge and 
septic tanks. 
 
¶4.  Institutional Framework and Policy:  The Ministry of Energy, 
Environment and Water (MEEW), established in 2005, is responsible 
for infrastructure development and policy formulation in the WSS 
sector.  The GoM encourages private investments in the Maldives 
utilities sectors.  The Maldives Water and Sanitation Authority 
(MWSA) formulates guidelines for such investment and acts as the 
regulator in the sector. 
 
¶5.  The GOM's WSS policies contain the following objectives: 
 
- Water: Provide access to safe drinking water for all people with 
piped distribution; safeguard ground water capacity of islands; and 
enhance RWH collection in catchment areas. 
 
- Sanitation: Provide systematic and safe sanitation for all people 
through centralized piped sewer and treatment systems; provide 
centralized septic tanks within communities with off-shore disposal. 
 
 
-Community Involvement: Create a conducive environment for external 
agencies and investors to join as partners in WSS sector (private, 
public, community) and assist through appropriate legislation and 
legal systems. 
 
¶6.  In outlying islands, the administrative and development agenda 
is decided by the Ministry of Atolls Development (MoAD) at the 
central level, by the atoll chiefs at the atoll level and by the 
island chiefs at the island level, within the guidelines established 
by the Ministry of Energy, Environment and Water and other relevant 
ministries. 
 
PRIORITY AREAS FOR USG INVOLVEMENT 
 
¶7.  Governance: As a relatively new ministry, the Ministry of 
Energy, Environment and Water lacks the management expertise and 
internal resources.  Several donors also provide WSS services to 
some islands as part of post-tsunami aid.  Geographic difficulties 
and inter-ministerial overlap have resulted in the Ministry of 
Energy, Environment and Water lacking sufficient authority to emerge 
as a proper focal point for decision making in the WSS sector.  The 
Ministry needs to develop institutional capacity to interact 
effectively with relevant ministries, especially with the Ministry 
of Atolls Development. 
 
¶8.  Investment in Infrastructure: The GoM is interested in 
encouraging private investment in the WSS sector including, energy, 
 
COLOMBO 00001717  002 OF 002 
 
 
housing, harbors and ports, and land reclamation. 
 
¶9. Private Public Partnership: The Maldives Water and Sanitation 
Company is an example of public-private partnership in the WSS 
sector.  The GoM and a Danish WSS investor have joined up to provide 
WSS services commercially.  STELCO (the State Electricity Company) 
is a similar entity servicing the power sector.  The Ministry of 
Energy, Environment and Water circulated guidelines in preparing 
RFPs for additional private investments in the WSS sector in May 
¶2006.  However, promotion of public-private partnerships is lacking. 
 Opportunities exist to strengthen the regulatory process and 
develop the role of the Maldives National Chamber of Commerce in 
promoting public-private partnerships. 
 
¶10.  Present USAID Involvement in Maldives:  As part of post-tsunami 
reconstruction efforts, the USG through the State Department pledged 
USD 8.65 million for installation of sustainable sewerage systems, 
rehabilitation of harbors and power systems, and capacity building 
for the Ministry of Finance.  Separately, USAID will implement a USD 
1.9 million Maldives Tsunami Reconstruction Program (MTRP) in the 
islands of Naifaru and Hinnavaru in the Lhaviyani Atoll (Atoll 
Population 12,000).  The communities of both islands have been 
unanimous that the restoration and augmentation of the drinking 
water supply is more important than improving sewerage services. 
Program activities will commence during November 2006 and will 
continue for approximately 15 months.  USAID has engaged the 
services of CH2M Hill as the prime contractor due to the 
contractor's performance and experience in Sri Lanka post-tsunami 
reconstruction.  The MTRP program will consist primarily of: 
 
- Installing two reverse osmosis units, to supplement water supply 
during the dry season; 
 
- Assisting the community and Atoll office to enhance the RWH 
collection capacity; 
 
- Supporting environmental health initiatives at the atoll hospital; 
 
 
- Training the atoll office to operate and maintain a community 
water supply system through community participation; 
 
- Capacity building of MEEW in project management in the WSS sector. 
 
 
¶11.  Comment:  The GoM's receptiveness to private sector and 
community involvement in the water supply and sanitation sector is 
encouraging.  At the same time, increased administrative and 
developmental independence of outlying islands will create a need 
for local- and atoll-level technical assistance, such as that which 
USAID plans to provide to two communities.  The GoM would welcome 
similar USG or private assistance in meeting urgent WSS needs 
elsewhere in the island nation. 
 
MOORE