All procurement under the Project will be carried out in accordance with ADB's Guidelines for Procurement. Contracts for civil works estimated to cost $1.0 million equivalent or more will be carried out using international competitive bidding (ICB) procedures, while those estimated to cost less than $1.0 million equivalent will be carried out under local competitive bidding (LCB) procedures. Goods to be procured will preferably be grouped into packages of $500,000 equivalent or more to be suitable for ICB procedures. Contracts for miscellaneous minor goods estimated to cost less than $500,000 equivalent will be procured through international shopping (IS) procedures. Minor items estimated to cost less than $100,000 equivalent per contract may be purchased directly, following proper procedures.

The Project will directly benefit the urban population of about 320,000 in the selected nine urban areas with improved personal hygiene, environmental sanitation, and overall quality of life. In particular, the EIRRs for the water supply subprojects are estimated to be around 22-28%. The management and financial capacities of the participating local institutions, including municipalities and prospective water supply utilities under municipal control will be strengthened for sustainable urban development. Furthermore, the regional integration of water supply services for improved efficiency will be pioneered for a cluster of a few neighboring urban areas. Thus, the Project is expected to contribute to the Government's decentralization policy for better governance and improvements to the framework for public-private partnership.