Irc ucgla presentation 2010
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IRC Southern Africa Regional Programme presentation in the inaugural working session of the UCLGA Water and Sanitation Focal Point Network, August 2010, which was attended by 14. associations from African countries. Contains: Africa - some points, water and sanitation in context, investing in the sector, WASH governance support and IRC programmes.
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Irc ucgla presentation 2010
- 3. Electric power is equivalent to economic activity The economy is mainly active in Europe and North America Look at the gaps in the South
- 6. Africa – income per person per annum Pop/income 150m $2500 50m $3500 600m $600
- 7. 50% of the worlds population are in China, India and Africa Goldman Sacks estimate that 70% of the worlds economic growth in the next 40 years will come from so called emerging economies
- 8. Size shows proportion of all people living on over US$ 200 ppp a day Few very high earners live in Southern Asia, Northern Africa, Eastern Europe and Central Africa
- 11. Use of improved sanitation
- 12. Use of improved drinking water
- 14. The total aid for water fell from 8% to 5% of total ODA between 1997 and 2008. During the same period, ODA for health increased from 7% to 12% of total ODA, while education remained at around 7%. (OECD 2010) Percentage aid for water and sanitation is declining
- 15. Commitments per capita to sanitation and water
- 17. EU disbursements per country and access to improved sanitation 2006-2008
- 18. EU disbursements per country and access to improved water supply 2006-2008
- 20. Barriers to universal and sustainable sanitation and drinking water for everyone Focus on infrastructure rather than delivering a service Lack of effective plans and strategies Mounting maintenance backlogs Poor decentralisation with insufficient resources Local government advocacy to target these barriers
- 27. Presentation Title Makhaza Toilets: An Affront To Human Dignity and a Threat to Safety & Security Good governance?
- 29. Getting governance right According to the Water Budget Speech all sorts of arrangements have been made to improve water governance which will allow “communities to participate in their own development”
- 30. Good governance from policy to sustainable services It needs to address the entire service delivery ‘life cycle’ Planning Implementation (infrastructure development) Policy Service Provision (sustainable services) The development of good policies require: participation, advocacy, communication, gender equity, transparency, monitoring and feedback, support, accountability, sector knowledge sharing, and so on. The same applies to planning services, deciding tariffs and subsidies, implementing capital projects and ultimately providing the service Financing Good governance
- 31. Delivering WASH services Finance Infrastructure Institutional arrangements for service provision Regulation Planning Policies and bylaws (enabling environment) IRC WASH governance support
- 32. WASH governance Finance Infrastructure Institutional arrangements for service provision Regulation Planning Policies and bylaws (enabling environment) Capacity development Advocacy and communication Sector knowledge sharing and learning Accountability and transparency Monitoring and evaluation Support to community institutions Gender and equity Cost recovery and innovative finance Participatory and strategic approach to local governance Multiple use services
- 33. IRC global programme (back out into the world) Innovation & knowledge development (based on experiences in the regions and through global programmes) Regional and country programmes with partners
- 37. Four countries, five years, many partners India (Andhra Pradesh) Centre for Economic and Social Studies / LRMNI Ghana Kwame Nkrumah University of Science and Technology (KNUST) Burkina Faso Centre Régional pour l'Eau Potable et l'Assainissement à faible coût (CREPA) Mozambique National Water Directorate / Rural Water / CoWater
Notas del editor
- Electric power is equivalent to economic dev As seen on the map the economy is mainly in euroope and USA Noticible gaps int eh south
- 3 parts to africa – macr Sout africa and sub saharan africa Income per person per annum
- NB to remember that 50% of the worlds population are in chine and india and africa – goldman sacks estimate that 70% of the worlds economic growth in the next 40 years will come from so called emerging economies
- The need Water covers 70% of the earth’s surface so why are one in eight people worldwide unable to access safe drinking water? Only a very small proportion of the water on Earth is drinkable. If a bucket of water represented all the world’s water, only one teaspoon of this would be drinkable. So water is a limited resource – and one that is not shared out evenly or fairly around the world. I n the developing world the average person will use 10 litres of water for all their drinking, washing and cooking needs each day while in the UK we each use an average of 50 litres a day for flushing the loo alone! Overall the average European uses about 200 litres of water a day.
- - Financing gap is often larger than 50% of needs (eg Egypt, Georgia, Moldova) - Most of this is for O&M and the renewal of existing infrastructure - In developing countries, about 70% of resources needed for existing systems, ie USD 54bn out of 72bn - Hence there is a need to look beyond investment costs for expansion of WSS coverage, only
- Let’s not forget that increased tariffs will both reduce demand, increase the incentives to reduce leakages and increase financing. Efforts to close the financing gap, may require increasing tariffs and other sources of revenue, but before looking into this, much is possible to do to reduce the costs of water systems should have been done: Many if not most water utilities are in need of improvements of their operational efficiency. Leakage rates of 50% or more are often to be seen and energy efficiency is similarly poor. Hence, significant cost reductions can be achieved by tackling these inefficiencies. There are also opportunities to reduce costs through better planning and low-cost technologies: A different phasing of investment can help to reduce overall costs, eg by investing into efficiency improvements first (leakage control, energy efficiency) to bring down O&M costs (which in turn frees up resources for rehabilitation and expansion). The use of low-cost technologies may often require changes in existing technology and construction standards, which are often hampering the use of cheaper options. In the last instance, governments need to reconsider their objectives set for coverage and service-level targets. Providing water through standpipes rather than in-house connections, treating wastewater with primary rather than tertiary can make a huge difference to investment and O&M costs.
- If following cost reductions a financing gap still persists, there are only three ultimate sources of revenue that can help to close this gap, the 3Ts: Tariffs and other user charges Tax-based subsidies, from central, regional or local governments Transfers from other countries, such as ODA or private forms of charity The slide shows that OECD and developing countries are choosing very different ways of financing their water sectors, going from almost fully tariff financing (eg France) to almost entirely tax-based financing (eg Egypt or Ireland (not on figure)). ODA can play a major role in some of the poorest countries, eg Mozambique (see figure). At the end of the day, what matters is that there is a predictable and sustainable flow of revenue. However, each of the 3Ts provides a different type of incentive to users, operators and financiers, and this should be taken into account when deciding about the mix of the Ts. If revenue from the 3Ts is sufficient to ensure financial sustainability, this will then allow to access loans and bonds, which are indispensable to cope with the large up-front investment costs that are typical of the water sector. Loans and bonds need to be repaid, however, and therefore mainly serve to bridge the gap, rather than helping to close it.
- Message for Ministers of Finance: Given constraints in household affordability, many poor countries will need to provide significant support for water and sanitation through public budgets In some cases full cost recovery from tariffs can only be a long term objective (see example of Moldova, mentioned earlier). Example: Countries such as Armenia, Moldova and Georgia need to spend 2-5% of public budget expenditure on WSS to achieve financial sustainability and the MDGs Message for Ministers of Water: However, in order to get more funds from public budgets, the water and sanitation sector needs to be more efficient, reduce corruption, plan better, and establish better linkages to budget processes