## Chart II -17 Disbursement in the Water and Sanitation Sector by Region

FY 2003

drinking water and sanitation sector accounted for 41% while hydropower generation accounted for 38%.

Three measures to be focused on actively under this initiative are as follows.

## [1] Establishment of Grant Aid for Water Security

The "Grant Aid for Water Security" was newly established within the General Grant Aid in the fiscal year 2003 budget, and 14.09 billion yen of Grant Aid was provided for 31 projects in the drinking water and sanitation sector including water supply system and sewage system as well as wells. For example, the population who has access to safe, good-quality drinking water accounts for only 65% of the total population in Mali located almost in the center of the Sahara Desert. Moreover, the ratio is extremely low at 57% in rural areas compared to 87% in urban areas, and there is a very large gap between urban areas and rural areas. Residents in rural areas are at risk of guinea worms and other parasites as well as water-related infectious diseases, such as diarrhea, since they use drinking water from unsanitary water resources such as polluted rivers and springs. Moreover, women and children in rural areas are forced to go to water sources far away from their residence to draw drinking water. This is not only back-breaking work but also it deprives them of opportunities for attending school or getting employed, causing structural poverty. Under the "Project for Water Supply in the Regions of Kayes, Segou and Mopti," implementation of which was determined in fiscal year 2003, there is a plan to construct deep wells with a man-powered pump in 233 villages as well.

(E/N basis: Unit: ¥100million)

Region	LoanAid	Grant Aid	Total
Asia	1,457.5	90.9	1,548.4
Latin America	216.4	30.0	246.4
Africa	105.5	34.0	139.6
Middle East	80.3	25.7	106.0
Middle and Eastern Europe	96.9	7.0	103.9
Total	1,956.5	187.7	2,144.2

Note: As the figures in the table are rounded off, they do not necessarily add up to the totals.

as one small-scale water facility in each of three provinces through Japan's Grant Aid in order to ensure supply of safe, stable, and good-quality drinking water in rural areas in three provinces where the ratio of safe drinking water supply is especially low, specifically, Kayes (55%), Segou (60%) and Mopti (45%). This is expected to have the effect of improving the water supply ratio of approximately 150 thousand residents and reducing the occurrences of water-related infectious diseases and the infant mortality rate due to such diseases.

## [2] Provision of Yen loans with concessional conditions

In fiscal year 2003, Japan provided Yen loans at interest rates lower than usual totaling approximately 52.7 billion yen for a total of five afforestation and sanitation projects. For example, in the "Sanitation Improvement Project for Baixada Santista Metropolitan Region" in Brazil, Japan applied the special environmental interest rate of 1.8%, which is more concessional compared to the general environmental interest rate of 2.5%, to sewage system improvements aimed to upgrade the poor living conditions of residents and prevent marine contamination in Sao Paulo State, which continues to develop as an economic center. The project contributed to promoting better water quality in the coastal region of Brazil.

## [3] Promotion of human resources development in the sector of water supply and sewage system

The Initiative for Japan's ODA on Water states, as one of the main activities thereof, that approximately 1,000 people will be part of the capacity development program in the sector