Since  2002, the U.S. government—led primarily by USAID and DOD—has  implemented a wide range of water projects throughout Afghanistan and,  while some preceded the ANDS and the U.S. interagency water strategies,  implemented projects generally addressed the needs and goals of the  Afghan water sector. U.S. Government Plans to Accelerate Water-Sector Development Efforts in Afghanistan from Fiscal Year 2010 through Fiscal Year 2014

According to documents provided to us by USAID and our discussions  with agency officials involved in development work in Afghanistan, the  U.S. government plans to accelerate water-sector development efforts in  Afghanistan for fiscal year 2010 through fiscal year 2014. United States Has Taken Steps to Better Coordinate Afghan Water-Sector Projects, but Additional Efforts Are Needed

The Government Performance and Results Act of 1993 (GPRA) and  several U.S. strategic documents concerning operations in Afghanistan  emphasize the importance of interagency coordination in Afghanistan. Moreover, we have previously reported on the importance of interagency  coordination and collaboration when multiple U.S. agencies are involved  in U.S. counterterrorism-related efforts. For  example, U.S. agencies generally do not meet on a regular basis with all  the relevant ministries in the Afghan government, and they do not have  complete data concerning other donor projects in order to best leverage  resources and maximize investments. Agencies did not meet on a regular basis to discuss ongoing  projects. However, the interagency implementation plan has not been  completed. Lacks a Centralized Database for U.S.-Funded Water Projects in Afghanistan

We previously reported that DOD and USAID relied on separate data  systems to track and manage development projects in Afghanistan, and  recommended the agencies take steps to develop a centralized database to  ensure that adequate information exists to manage and make decisions. Gaps Exist in U.S. Agencies’ Efforts to Manage and Monitor Performance for Afghan Water Projects

USAID has established performance management and monitoring  procedures, including for implementers of water sector projects. USAID’s  Automated Directives System documents the agency’s performance  management and monitoring procedures. For example, while USAID  collected quarterly progress reports from its implementing partners for  five of the six water projects included in our review, agency staff did not  analyze and interpret this information. In October 2008, USAID adopted new  guidance endorsing several alternative monitoring methods in high threat  environments. As table 5 shows, four out of six implementers  established performance indicators, though some did not always establish  targets for the indicators as required. U.S. Government Has Included a Focus on Building Sustainability into U.S.-Funded Water Projects

Sustainability is one of the U.S. government’s key principles for  development and reconstruction assistance in Afghanistan, and recent U.S.  strategies have emphasized the importance of project sustainability. Based on our review of the U.S. Government Inter- Agency Water Strategy and discussions with agency staff, the U.S.  government has identified two key elements to help ensure water project  sustainability: (1) enhancing technical and managerial capacity to maintain  projects within the institutions with water sector responsibilities, and (2)  ensuring funding is available to keep projects operational after they have  been completed. DOD and CERP guidance also emphasizes sustainability. The strategy also outlines several goals that will enhance water  project sustainability. DOD officials have acknowledged the difficulty of sustaining CERP  projects in Afghanistan. Recommendations for Executive Action

To enhance the coordination of U.S.-funded water projects, we  recommend that the Administrator of USAID, in conjunction with the  Secretaries of DOD and other relevant agencies take the following actions:    Develop an interagency implementation plan, as called for in the 2010 U.S.
Government Inter-Agency Water Strategy that (1) establishes agreement  on roles and responsibilities of the various U.S. agencies with respect to  the short, medium, and long-term goals identified in the strategy; (2)  identifies and address the leveraging of U.S. resources; and (3) outlines  means to operate effectively across agency boundaries. DOD  concurred with our recommendation to develop an interagency  implementation plan. Appendix I: Objectives, Scope, and Methodology

This report examines (1) U.S. water projects in Afghanistan since 2002 and  the extent to which U.S. goals for Afghan water-sector development  assistance align with the goals of the Afghan government; (2) U.S.  agencies’ coordination of water-sector efforts among themselves and with  the Afghan government and the donor community; (3) U.S. agencies’  performance management efforts for water-sector projects; and (4) U.S.  agencies’ efforts to build sustainability into their water-sector projects.
Why GAO Did This Study

Water is critical to the stability of Afghanistan and is an essential part of U.S. efforts in Afghanistan. Since 2002, the United States Agency for International Development (USAID) and the Department of Defense (DOD) have awarded $250 million for water projects. This report examines (1) the alignment of U.S. water goals and projects with Afghan water-sector development goals; (2) U.S. agencies' coordination of water-sector efforts among themselves, with the Afghan government and the donor community; (3) U.S. efforts to manage and monitor these water projects; and (4) U.S. efforts to build sustainability into water-sector projects. GAO reviewed and analyzed planning, funding, and performance documents from U.S. agencies and implementing partners, and interviewed U.S. officials in Washington, D.C., and U.S., Afghan, and donor officials in Afghanistan.

What GAO Found

The goals outlined in the U.S. government's 2010 Inter-Agency Water Strategy generally align with Afghan government strategic goals for the water sector. The Strategy identifies short, medium, and long-term goals to be achieved between 2010 and 2014. Additionally, since 2002, the U.S. government has implemented a wide range of water projects throughout Afghanistan to improve access to safe drinking water and sanitation, agriculture irrigation, and water-sector management. These projects generally align with Afghan water-sector goals. The United States expects to accelerate development efforts in the water sector and estimates that an additional $2.1 billion will be needed to fund these efforts from fiscal year 2010 through fiscal year 2014. The Government Performance and Results Act and several U.S. strategic documents concerning operations in Afghanistan emphasize the importance of interagency coordination. GAO has reported on the importance of interagency coordination and collaboration when multiple U.S. agencies are involved in U.S. counterterrorism-related efforts. GAO's review showed that the United States has taken steps to better coordinate water-sector development projects but that additional efforts are needed. For example, the U.S. government has developed an Infrastructure Working Group, an Inter-Agency Water Strategy, and has started to meet on a regular basis. However, an interagency implementation plan called for in the strategy has not been completed. Also, USAID and DOD have not developed a centralized database to enhance coordination, which GAO previously recommended. Moreover, U.S. agencies generally do not meet on a regular basis with all the relevant ministries in the Afghan government, and they lack complete data concerning other donor projects to maximize the U.S. investment in development projects. USAID's Automated Directives System outlines USAID's performance management and monitoring procedures. GAO found that gaps existed in USAID's performance management and monitoring efforts for water sector projects in Afghanistan. For example, while 4 of the 6 implementers of projects GAO reviewed established performance indicators, some did not always establish targets for the indicators as required. In addition, although USAID collected quarterly progress reports from 5 of the 6 water project implementers for the projects GAO reviewed, it did not analyze and interpret this information as required. Finally, though USAID has identified several alternative monitoring procedures staff can use to help mitigate monitoring challenges in high threat environments, USAID has not effectively ensured that such guidance was disseminated to staff in Afghanistan. The U.S. government has included a focus on building sustainability into U.S.-funded water projects in Afghanistan. Recent U.S. strategies have emphasized the importance of project sustainability. GAO has identified two key elements to ensuring water project sustainability: enhancing technical and managerial capacity to maintain projects within the institutions with water-sector responsibilities, and ensuring funding is available to keep projects operational after they have been completed. Ongoing USAID water projects included in this review have incorporated sustainability initiatives. DOD guidance also emphasizes sustainability. However, DOD officials have acknowledged the difficulties of sustaining water projects in Afghanistan.

What GAO Recommends

GAO makes several recommendations to the USAID Administrator, in conjunction with DOD and other relevant agencies, to improve planning, coordination, and management of U.S.-funded water projects in Afghanistan. This includes developing an interagency plan and designating a centralized database. GAO also recommends steps the USAID Administrator needs to take to improve performance management. USAID and DOD generally concurred with our recommendations.