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2008 ANNUAL REPORT

September 2009

African Water Facility Administered by the African Development Bank Angle de l’avenue du Ghana et des rues Pierre de Coubertin, Hedi Nouira BP 323 – 1002 Tunis Belvédère (Tunisia) Tel : + 216 71 102 055 – Fax : + 216 71 103 744 E-mail: [email protected] Web Site: www.afdb.org/awf

AFRICAN WATER FACILITY 2008 ANNUAL REPORT

TABLE of CONTENTS

MESSAGE OF THE AWF GOVERNING COUNCIL CHAIRMAN..............................................................III

1 INTRODUCTION ................................................................................................................... 1

2 ACHIEVEMENTS AND CHALLENGES IN 2008 .............................................................. 3

3 ADDRESSING CONTEMPORARY ISSUES..................................................................... 10

4. LESSONS LEARNED AND STRATEGIC DIRECTIONS............................................... 14

5. CONCLUSIONS .................................................................................................................... 15

ANNEX A: OPERATIONAL STATUS ............................................................................................................A-1

1 PROJECT PROCESSING ...................................................................................................................A-1

2 PROJECT IMPLEMENTATION.......................................................................................................A-4

3 PORTFOLIO OVERVIEW AND RESULTS....................................................................................A-7

APPENDIX A.1: DESCRIPTION OF APPROVED PROJECTS..................................................................................A-13APPENDIX A.2: PROJECT RELATED MISSIONS UNDERTAKEN IN 2008 ............................................................A-25APPENDIX A.3: STATUS OF AUDITING OF AWF PROJECTS AS AT 31ST DEC. 2008 ..........................................A-27

ANNEX B: ORGANISATIONAL STATUS ..................................................................................................... B-1

1 OUTREACH AND PARTNERSHIPS ................................................................................................ B-1

2 ASSISTING AMCOW IN PROMOTING STRATEGIC INITIATIVES ...................................... B-3

3 OPERATIONAL SUPPORT ............................................................................................................... B-4

4 AWF FUNDS MOBILISATION ......................................................................................................... B-5

5 HUMAN RESOURCES ........................................................................................................................ B-6

APPENDIX B.1: MAIN ORGANISATIONAL ACTIVITIES UNDERTAKEN IN 2008.................................................. B-8APPENDIX B.2: ORGANIZATIONAL FRAMEWORK FOR 2008 .............................................................................. B-9APPENDIX B.3: MEMBERS OF THE AWF GOVERNING COUNCIL .................................................................... B-10APPENDIX B.4: LOGIC MODEL FOR THE AWF................................................................................................. B-11

ANNEX C: FINANCIAL STATUS....................................................................................................................C-1

1 FUNDING COMMITMENTS .............................................................................................................C-1

2 STAFFING AND ADMINISTRATIVE EXPENSES BUDGET .....................................................C-2

3 PROJECT COMMITMENTS AND DISBURSEMENTS ...............................................................C-4

4 FINANCIAL STATEMENTS..............................................................................................................C-5

APPENDIX C.1: STATUS OF PROJECT DISBURSEMENTS ..................................................................................... C-6APPENDIX C.2: AWF FUND PRELIMINARY FINANCIAL STATEMENT AS AT 31DEC. 2008 ................................ C-8

ANNEX D: PERFORMANCE INDICATORS, TARGETS AND RESULTS..............................................D-1


LIST OF ACRONYMS

AfDB African Development Bank AMCOW African Minister’s Council on Water ANBO African Network of Basin Organisations AWF African Water Facility AWV African Water Vision AU African Union CBO Community Based Organization CICOS International Commission of Congo-Oubanguie-Sangha basin EU/EC European Union/Commission GC Governing Council of the AWF GEF Global Environment Facility GWP Global Water Partnership HYCOS Hydrological Cycle Observing Systems ICA Infrastructure Consortium for Africa IFAD International Fund for Agricultural Development IGAD Inter Governmental Authority on Development IPPF Infrastructure Project Preparation Facility IWRM Integrated Water Resources Management MDG Millennium Development Goals M&E Monitoring and Evaluation NEPAD New Partnership for Africa’s Development NGO Non-Governmental Organisation NWRM National Water Resource Management O&M Operation and Maintenance ORPF Procurement Department of the AfDB OSS Sahara and Sahel Observatory OSAN Agriculture Department of the AfDB OSC Oversight Committee OWAS Water and Sanitation Department of the AfDB PPP Public Private Partnership QPR Quarterly Progress Report RBM Results Based Management RBO River Basin Organizations REA Recipient Executing Agency REC Regional Economic Communities RMC Regional Member Country RWH Rainwater Harvesting RWSSI Rural Water Supply and Sanitation Initiative TAC Technical Advisory Committee TWRM Transboundary Water Resource Management WMO World Meteorological Organisation WSP Water and Sanitation Program of the World Bank WSS Water Supply and Sanitation WWF World Water Forum


MESSAGE OF THE AWF GOVERNING COUNCIL CHAIRMAN

It is a great honour to present the 2008 Annual Report of the African Water Facility (AWF). I hope that when reading through this annual report, you will realise the important role that the AWF is already playing in the African water sector. Through various projects and activities the Facility is acting to strengthen water governance and mobilise the substantial investments necessary for meeting Africa’s water needs at national and regional levels. The overall portfolio continues to grow, and now includes 43 projects valued at 44.5 million Euro. In addition, the Facility is also undertaking many vital organisational activities which are very important to the successful fulfilment of its mandate. For example, the AWF continues to gain recognition in the African water scene and to play a leading role in many of the strategic initiatives on the AMCOW agenda, such as the development of a pan-African M&E framework and supporting African participation in the 5th World Water Forum.

I would like to thank the various donors who have made AWF a reality through continued funding and policy guidance. As a result of the strong resource mobilisation drive by the AWF in close collaboration with AMCOW, I am pleased to report that the AWF has adequate financial resources to realise its 2009 Work Plan. However, there still remains a considerable short-fall in funding in 2010 and beyond, and I wish to once again call on the donor community to provide longer term financial support to the AWF so that the Facility can plan within a predictable environment. I would also like to encourage African governments to show ownership of this important African institution through financial contributions, and wish to commend Algeria for leading the way with a contribution in 2008.

I would particularly like to thank the African Development Bank (AfDB) for being instrumental in making the AWF a reality and continuing to provide significant support to its operations, such as secondment of key staff and provision of office facilities.

The AWF Governing Council (GC), which was put in place to determine the general policy directions and to guide the operational activities of the AWF, has also been very active in fulfilling its mandate and continues to play a very strong role in overseeing the operations of the Facility.

This past year has been important for the AWF as it gained experience in implementing its large portfolio of projects and continues to learn from the results being achieved. The AWF is now in a strong position to move forward to become a key partner in the African Water and Sanitation Sector and to play a role which is not being adequately met by other traditional funding agencies or mechanisms.

Monyane Moleleki AWF Governing Council Chairman and Minister of Natural Resources Kingdom of Lesotho

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1 INTRODUCTION

1.1 This Annual Report has been prepared to present the activities, achievements and challenges of the African Water Facility in 2008. It begins with a brief overview of the establishment and strategic orientation of the AWF, along with a compilation of the key special characteristics which define the unique niche of the Facility. Following this, the main achievements of the AWF in 2008 are highlighted, and the role that the AWF plays in addressing many of the emerging issues in the sector are discussed. The report concludes with a compilation of lessons learned and strategic directions for the future. Accompanying this brief Report are four comprehensive Annexes which present in more detail the Operational, Organisational and Financial status of the Facility, and the Performance Indicators.

Establishment and Structure

1.2 The establishment of the African Water Facility (AWF) was a response to the regional and international consensus to address the need for increased investments for the development and management of water resources in Africa. The AWF was instituted as Special Fund of the African Development Bank (AfDB) in May 2004, following a formal request from the African Minister’s Council on Water (AMCOW) to establish a fund to mobilize and apply resources to finance water infrastructure and water investment facilitating activities in Africa. In pursuing its Trustee function, the Bank created the AWF within its organisational structure in April 2005, and appointed a Director and key staff. Following the initial period of consolidation in 2005, the AWF started its core operational activities in January 2006.

1.3 The AWF is governed by two bodies: the AWF Governing Council (GC), composed of 13 members (AMCOW (5), DONORS (5), NEPAD (1), UN-Water/Africa (1), AfDB (1)), and responsible for determining general policy directions and guiding the operational activities of the Facility; and the Board of Directors of the Bank, responsible for the general operations of the AWF Fund, including approval of annual work plan, budget and projects for implementation.

Strategic Orientation

1.4 The purpose of the African Water Facility is to assist Regional Member Countries (RMCs) to mobilise and apply resources to meet the targets and goals for the water and sanitation sector that were established by the African Water Vision (AWV) and the Millennium Development Goals (MDG). In accordance with the components of the AWV, the Facility provides support for the attainment of the following strategic objectives at national and regional levels (see the Logic Model in Appendix B.4 for more details):

• Strengthening water governance by improving the enabling environment and strengthening water resources management at community, national and regional level. As a result, RMCs and regional organisations will have increased capacity to govern their water resources effectively based on IWRM principles and transboundary cooperative arrangements.

• Investments to meet water needs through the provision of targeted and strategic capital grants for small-scale water infrastructure projects designed to address the AWV and MDG targets related to water supply, sanitation and productive uses, with a focus on innovative projects that will lead to increased follow-on investments. In

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addition, support is provided for the preparation of projects and programmes for funding. As a result, advances will be made in meeting water needs through direct project investments and widespread adoption of innovative technologies and approaches.

• Strengthening the financial base by improving the environment for sustainable financing and to increase availability and access to financing by local governments and sub-sovereign bodies, as well as the private sector. As a result of these types of focused and targeted support, the ground will be prepared for increased public, private sector and donor involvement leading to a stronger financial base.

• Improving water knowledge by establishing or strengthening systems and mechanisms to ensure the availability of vital data and information for planning, design and management of sustainable water sector programmes, and to meet the monitoring and evaluation requirement. This will result in increased capacity for informed decision making at all levels to guide water development planning and implementation.

Special Characteristics

1.5 The AWF has many special characteristics inherent in its design which define the unique niche the Facility occupies in the African water and sanitation sector. As a result, the Facility is increasingly recognised as filling a role which is not adequately met by other traditional funding agencies or mechanisms. The principal characteristics are:

• Strategic positioning: Given its alignment with AMCOW and the AfDB, the AWF is strategically placed to shape the water sector development process and to “raise the profile of water” politically within Africa and among donors.

• Representative governance structure: The Facility has its own representative Governing Council (GC) that brings together AMCOW, donors, UN Water Africa, AU/NEPAD and the AfDB, and is managed by a competent regional institution, the African Development Bank. Together, these characteristics ensure an African owned and managed initiative which reflects the African agenda and responds to Africa’s needs.

• Broad eligibility for assistance: The AWF is able to work with various types of recipients according to comparative advantage. These include regional entities (Regional Economic Communities or River/Lake Basin Organisations) and national entities (national/local governments, parastatals, NGOs, civil society organisations). Furthermore, the AWF is able to support all African countries, many of which may not be eligible for assistance from donors such as the AfDB.

• Focus on small and medium size projects: The AWF focuses on financing projects, from Euro 50,000 up to 5 million.

• Demand driven and negotiated approach: The Facility identifies projects mainly through a demand-driven application process, which serves to reflect the expressed need of potential beneficiaries. Once a project is screened and accepted into the pipeline, the AWF establishes dialogue with the potential beneficiary to prepare the project and improve its quality.

• Fast processing: Due to the fast track procedures adopted by AWF there can be significant reductions in time for the AWF to develop national WSS programmes or to prepare projects than under traditional funding mechanisms.

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2 ACHIEVEMENTS AND CHALLENGES IN 2008

2.1 The AWF continued to make steady progress and achieve good results in fulfilling its mandate. A summary of the main achievements of the Facility in 2008 are noted below.

2.2 Projects processed: The AWF has put in place functional and effective project processing systems. As a result, the value of AWF’s approved Grants in 2008 increased to €20.36 million, from €15.0 million in 2007, representing an increase in value granted of 36%. AWF’s cumulative commitment now stands at €44.5 million. In terms of project numbers the AWF was able to process and approve 14 projects1 in 2008 compared to 15 in 2007. The AWF is thus maintaining a steady pace of project processing despite staffing challenges. The total number of projects that have been approved since inception now stands at 43. The progress in commitments since inception is shown in Figure 1, which depicts the steady increase over the past three years in line with the amount of donor contributions.

Figure 1: Progress in Commitments (Cumulative up to Dec. 2008)

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1 While the projects actually approved were eight, another seven projects were appraised and submitted for approval before the end of the year and as such have been counted in the total approvals for 2008.

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2.3 Overview of Projects Approved in 2008: 2008 were as follows:

Strengthening Water Governance

2.4 National Water Resources Management (NWRM) has been a major area of focus in 2008, with four projects approved. These consist of support to Burkina Faso to strengthen its capacity for decentralised IWRM (see text box 1); Kenya for the integrated watershed management of Kiboun and Tende river basins; Liberia for a water sector reform and capacity building study; and Morocco for a project aimed at the artificial recharge of Haouz water table.

2.5 Transboundary Water Resources Management (TWRM): Support for the joint development of shared waters through improved TWRM is another important focal area of the Facility. One project was approved in 2008, consisting of support to the OMVG (Gambia River Basin Organisation) for IWRM in the Kayanga Geba river basin (see text box 2).

Investments to Meet Water Needs

2.6 Water Supply and Sanitation: One water supply project was approved in 2008, involving the promotion of solar and wind powered pumping technologies for rural water supply in Ethiopia (see text box 3).

2.7 Water for Productive Uses: A focal area for AWF capital investment grants is water for agricultural uses to achieve food security, especially given the current need to respond to the food crisis in Africa. In this regard one agricultural water project was approved in 2008 involving run-off water harvesting for multi-purpose uses in Djibouti (see text box 4).

2.8 Project and Programme Preparation: There is a continued strong demand for AWF support for the preparation of larger water and sanitation development programmes and projects at

The project activities of the AWF in

1. Burkina Faso: Capacity building for decentralized IWRM. Financing: AWF €450,000 Objective: Strengthening of institutional capacity and performance for monitoring and regulation of water resources and water use in the country to support implementation of the IWRM plan. Implemented by: DGRE (Directorate of Water Resources). Expected Results: The project will cover the urgent needs for human capacity building to perform IWRM in the field, including enhancement of DGRE’s regulatory performance to achieve tangible results in terms of issuing of water permits and compliance control in water conflict areas.

2. OMVG (Gambia River Basin Organisation): IWRM in the Kayanga Geba river basin Financing: AWF €1,585,000, OMVG member countries €218,000 (in-kind). Objectives: Reinforce the OMVG’s institutional capacities to implement sustainable management of the shared water resources based on IWRM approach. Implemented by: OMVG with member countries (Gambia, Guinée, Guinée Bissau, Sénégal) to be involved in the development of the project. Expected Results: The project will address the urgent needs for capacity building to implement IWRM, improve information management, strengthen the development of economic activities though better cooperative management and allocation of the water resources, reduce negative environmental impacts in the basins, and improve the use of the water resources of the Geba river for agriculture.

3. Ethiopia: Utilisation of solar and wind energy for rural water supply in Ethiopia. Financing: AWF €1,991,880. Objectives: Promote and pilot the use of solar and wind energy for water pumping in rural areas of Ethiopia, and thereby initiate development of a long term investment in these technologies under the Universal Access Programme (UAP) where they are appropriate and most suitable. Implemented by: Ministry of Water Resources. Expected Results: Increased demand for solar/wind technologies from end-users and other stakeholders with 130,000 people directly benefiting from access to water under the pilot schemes. Water sector specialists systematically including solar and wind technological options among those to be considered where conditions allow. Local private sector supporting the supply and after sales service of solar and wind pumping equipment, including supply of spare parts and maintenance.

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national and regional levels, with four such projects approved in 2008. These involve: a feasibility and design study of storm water drainage and solid waste management systems in Ouagadougou, Burkina Faso; preparation of water and sanitation investment plans for 15 town centres along the shores of Lake Victoria (see text box 5); a study for the expansion and rehabilitation of Monrovia and three county capitals water supply and sanitation systems in Liberia; and preparation of a water supply development plan 2008-2030 for the Seychelles. All of these projects are expected to result in the availability of bankable projects with high likelihood to access financing from public and private sector sources.

Improving Water Knowledge

2.9 Information Management: The area of water resources information management has few donors’ interventions and hence there has been considerable demand from national and regional organisations for this type of assistance. Three projects were approved in 2008, consisting of support to the VBA (Volta Basin Authority) for the implementation of the Volta-HYCOS (see text box 6); development of an integrated water information system in Togo; and strengthening water and environmental engineering capacity in fragile states;

2.10 Project distribution and balance: The project portfolio is well diversified. There is a good balance in approved projects across the main areas of interventions identified for AWF involvement (except for strengthening the financial base), which is in line with the balance as planned in the AWF

4. Djibouti: Water harvesting project for water supply and agriculture in rural districts. Financing: AWF €1,937,000 Objectives: Piloting innovative run-off water harvesting technologies for drinking water, irrigation and livestock uses in two rural districts. Implemented by: Dept. of Hydraulic Resources of the Agriculture Ministry, in partnership with IFAD. Expected Results: Improved access to water for multipurpose uses by the rural nomad populations (2,400); better knowledge of the available water resources in the project area; and increased investments through scaling-up of the new technologies in water harvesting at the country level.

5. Lake Victoria Basin Commission (LVBC) Water and sanitation initiative: Preparation of investment plan for 15 centres. Financing: AWF: €994,000, EAC €4,500 (in-kind). Objectives: Identify an integrated package of interventions for the long term development of WSS and environmental management services in 15 high priority secondary towns/centres, including water supply and sanitation, solid waste management, and drainage improvements in key areas. Implemented by LVBC as executing agency in collaboration with UN-Habitant. Expected Results: The 15 project towns/centers are expected to meet MDG targets for water supply, sanitation and health through execution of immediate works and provision of adequate funding for longer term improvements. As well, lake water quality will be improved, contributing to the management of its sensitive ecology.

6. VBA (Volta Basin Authority): Support to the VBA for implementation of the Volta-HYCOS. Financing: AWF €1,200,000, FFEM (French Global Environment Fund) €1,000,000. Objective: Enable VBA and the National Hydrologic Services (NHS) of the member states to deliver appropriate hydrological information services. Implemented by: Volta Basin Authority. Expected Results: Upgraded and consolidated basin-wide hydrological observation network and information system providing easily accessible information for all users thus contributing to better regional cooperation, and more effective water resources planning and development.

Operational Programme (see Figure 2). Certain categories are showing a strong demand at this stage, namely National IWRM, project and programme preparation, and water resources information management. Various activities are underway to stimulate demand and identify projects in the strengthening financial base category, such as participation of AWF staff in working groups and workshops. This is also a cross-cutting category, with 18 ongoing projects having activities related to improving financing.

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Figure 2: Distribution of the 43 approved projects by area of intervention

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2.11 There is a good geographic distribution of all 43 projects approved (see Figure 3), with about half of all African countries receiving support. The AWF continues to create awareness and to reach out to those countries that have not as yet benefited from AWF resources.

Figure 3: Geographic distribution of the 43 approved projects

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2.12 Building the project pipeline: During 2008, the Facility took steps to increase the number of projects in the pipeline, through specific project identification missions, involvement of Field Offices, and a focus on intensive screening of the applications that were received using newly developed guidelines on screening. As a result, at the end of the year there were 20 good quality projects in the pipeline, with another 15 projects identified for possible admission into the pipeline in 2009 depending on the outcomes of the screening process.

2.13 Project implementation: A total of 29 projects were in the execution phase as of the end of December 2008, with the AWF and Field Offices involved in project supervision and support activities both from the head office and in the field. In particular, considerable support was provided to Recipient executing agencies in procurement and financial management to ensure timely project implementation, since capacity to undertake these tasks in conformity with AWF/AfDB procedures is often weak. Of the 43 approved projects in the portfolio at the end of 2008, only one may be considered to be at risk (Niger Preparation of IWRM Action Plan), based upon the time it has taken for it to be declared Grant Effective due to difficulties in opening an account in Euro.

2.14 Project disbursements: A total of €3.55 million was disbursed in 2008 on nine projects. As of the end of December 2008, €12.15 million had been disbursed on 30 projects that are Grant Effective, which represent 44% of the €27.4 million for the 29 projects currently under implementation (one project is completed). Actions taken in 2008, including support to Executing Agencies in project procurement, should lead to significantly increased levels of disbursements in the first half of 2009.

2.15 Mobilising resources for the water sector: Catalyzing funds for investments is very much a core function of the AWF. As a result, specific activities have been included in 18 ongoing projects to mobilise funds, such as preparation of financing strategies and organising of a donor round-table meeting. However, it is still early to realize the full impact of these activities as most projects are yet to be completed and funds mobilization activities normally take place at the end of a project. A few examples of catalytic effects of AWF funding are the following:

• Botswana – Water Control and Management project: The Environmental Impact Assessment component is finished and has enabled AfDB funding of a €40 million investment project.

• Volta Basin Authority: The completion of an AWF project for the establishment of the VBA has resulted in several follow-on interventions financed by donors and member countries – the EU has already invested €3 million.

• Egypt – Preparation Study of Nubaria and Islamia Canals: This project preparation activity is expected to leverage about €120 million in investment funds when completed.

• Congo - Preparation of Water Supply and Sanitation projects for Brazzaville and Point Noire: A donors round-table is scheduled for March 2009 to mobilize about €140 million for investments projects prepared with AWF funding.

• Centrafrique – Water Supply and Sanitation Studies for 16 District Capitals: The round-table of donors will be organized in June 2009 to mobilize funds for projects prepared with AWF funding.

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• OSS Geo-Aquifer Project: AWF funding has already enabled access to GEF-FFEM (France) investment funds amounting to €1.3 million.

2.16 Organisational Achievements: The Facility devoted much time and internal resources over the past two years in ensuring that its operations flow smoothly. As a result, the AWF has made good progress in implementing its planned operational programme and has put in place the necessary organizational arrangements essential for its effective management. This has been recognised by the Governing Council and the Bank during recent review meetings. The following paragraphs describe some of the most significant organisational achievements.

2.17 The AWF has been able to achieve good results in fast-tracking the processing of projects. In total, the average time from approval to first disbursement is currently about seven months. While this is a significant achievement, the AWF is taking steps to further reduce processing and implementation times, such as through the greater involvement of Field Offices in dialogue and support to Recipients, more flexible conditions for Grant Effectiveness, ensuring a launching mission for every new project, and additional project implementation workshops for ongoing projects.

2.18 The AWF has been playing an important role in supporting strategic initiatives of AMCOW, including the preparation of Pan African Monitoring and Evaluation framework; and supporting regional participation in the 5th WWF. While there is a need for strengthening operational linkages with AMCOW through the TAC and Secretariat, nonetheless the AWF is concerned about the increasing demand of these types of activities on staff time. Further discussion and direction is planned in order to better define the type of support the AWF can provide to AWCOW, and to set out the associated resource requirements to achieve this.

2.19 The rolling 3 year Operational Programme was updated in 2008 to reflect the ability and performance of the AWF to deliver on plans and achieve demonstrated results on the ground. The AWF has set realistic operational targets for 2009-2011 based on experience, consisting of 86 projects approvals amounting to €125 million, with another €14 million to fund organisational activities (totalling €139 million). The GC supported the planned work programme at its October meeting, noting that it has been revised downwards to reflect experience over the last year, and that such realism in terms of planning and budgeting is important for the credibility of the Facility.

2.20 Outreach and partnership efforts: The Facility continues to work closely with a wide range of organisations at global, regional, and country levels to build consensus on effective policies and practices, coordinate activities, leverage resources, share knowledge, build capacity and enhance advocacy. In 2008 the AWF was involved in numerous important outreach activities to strengthen its partnerships. These include participation in the AU Summit held in Egypt from 30 June to 1 July and the Stockholm Water Week, 17-22 August, and support of the Joint African Institute Seminar on IWRM held in Tunis from 6-10 October. Further details are provided in annex B1.

2.21 Links with the AfDB: The cooperative working relationship between the AWF and the Bank continues to be effective. This is evident in the mutually reinforcing roles of the Facility and the Bank in drawing upon comparative strengths of each in outreach and partnership efforts, such as the joint actions taken by the AWF and the AfDB in hosting the Africa Water Week held in March; and in supporting the 5th World Water Forum under the guidance of AMCOW. The Facility also continues to forge strong working relationships with

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various Bank departments, in particular Water and Sanitation (OWAS), Agriculture (OSAN) and NEPAD-IPPF. AWF project preparation and pilot investment projects impact on the developmental efforts of the Bank, since they can lead to full-scale projects funded by the AfDB. The Bank also learns from innovative AWF projects/activities, from which specific technologies or best practices can be incorporated in upcoming Bank projects.

2.22 Mobilisation of short term funding: In 2008, significant joint efforts were made by the AWF with the support of AMCOW to secure funds for the 2009-2011 Operational Programme. As a result, tangible progress has been achieved. During 2008, new commitments amounting to €27 million were confirmed by five donors: renewals for 20082010 by Sweden (€8 million), Austria (€300,000) and Norway (€6.6 million); and new donors Spain (€12 million for 2008-2010) and Algeria (€100,000). Resource mobilization achievements indicate a vote of confidence in the AWF by donor partners. Support from RMCs is an important step in ensuring African ownership and commitment and has been particularly recognised by stakeholders.

2.23 Challenges: A few of the key challenges which the Facility is currently working at resolving are summarised below:

• Securing longer term funding: The availability of funding for 2010 and beyond remains one of the most critical issues facing the Facility. The overall ability of the Facility to deliver on its mandate depends on the sustained commitments of significantly larger amounts of funding. This requires a more strategic and high level approaches to resources mobilisation involving AMCOW and other key stakeholders, with substantial additional time devoted to the activity. With the assumption of duty of the AMCOW Executive Secretary, and based on the plan elaborated between AWF and AMCOW TAC, joint actions are being taken in this direction.

• Strengthening human resources: The Facility continues to face significant challenges in meeting staffing needs. The latest GC meeting emphasised that success depended on having adequate staffing, and encouraged the AWF to quickly finalize ongoing actions to realise its human resources strategy. Actions taken in 2008 to resolve staffing constraints included: recruitment by the AWF of two newly approved positions (Grant Administration Officer and Communications Officer); liaising with donors to ensure timely recruitment of replacements for departing TAs; dialoguing with the Bank to secure replacements for transferred staff; and making use of long term consultants and short term support staff. Resolving staffing issues will continue to receive top priority by AWF and Bank management.

• Expediting project implementation: Many of the Recipients of AWF funds are not familiar with AWF and Bank procedures. As a result, considerable assistance to executing agencies to ensure good project level management, procurement in conformity with Bank guidelines, transparent financial control mechanisms and comprehensive reporting is often needed in order to improve project execution. In 2008, the AWF organised two workshops to assist project managers and staff involved in AWF projects to become more familiar with the policies and procedures regarding procurement and financial management. Increased focus on Quality at Entry in order to reduce problems during implementation, intensification of project launching missions and implementation workshops, and greater involvement of AfDB Field Offices where they have the human resources capacity (mainly water specialists and procurement staff), are additional actions being undertaken to address this challenge.

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3 ADDRESSING CONTEMPORARY ISSUES

3.1 The AWF is well placed to address the many strategic challenges and recent political commitments related to water:

3.2 Ensuring water security: Concrete and resolute actions are required to develop the water infrastructure platform and ensure national and regional water security which is central to economic development and social well-being. The African Water Week Ministerial Declaration on Accelerating Water Security for Africa’s Socio-Economic Development, March 2008, as well as the Sharm El-sheikh Commitments for Accelerating the Achievement of Water and Sanitation Goals in Africa, July 2008, both of which the AWF helped organise or

7. Namibia: Development of an IWRM Plan. Financing: AWF €498,200. Objective: Facilitate the preparation of an IWRM plan for sustainable water resources use and management using a strong participatory approach. Implemented by: Department of Water Affairs and Forestry in liaison with GWP-SA and SADC. Status: Approved December 2006. Project ongoing. Expected Results: A holistic model for an integrated approach to water resources use and management in the context of sustainable development will be formulated and implemented as a national IWRM plan, with strong ownership of the National Frameworks and the process by all stakeholders, and adequate funding available for implementation.

prepare for, have included many commitments related to water security and building the regional infrastructure base. To address these challenges, most of the existing AWF project portfolio touches on water security concerns, including in particular the investments to meet water needs, the many project and programme preparation activities, and the national and regional projects to improve water resource management and strengthen the information base (see text box 7 for a typical IWRM project). As well, the Facility has committed to support AMCOW in prioritising the development of strategies and action plans aimed at triggering investment in infrastructure for ensuring water security at national and regional levels.

3.3 Increasing agricultural productivity: Increased investment in water is necessary to enhance agricultural productivity and achieve food security in Africa. Adequate water management, especially for irrigation, is a prerequisite for agricultural expansion in Africa and fundamental for unlocking the potential of other agricultural inputs. Africa’s commitments have most recently been noted in the Sirte Declaration on Water for Agriculture and Energy in Africa, Dec. 2008, in which the AWF participated. Ensuring supply and storage of adequate water for agricultural uses, and proper water management, are primary areas of intervention for AWF grants. At present, 18 AWF projects cover issues related to water for agriculture, and four of these focus directly on the development of water management and irrigation systems for increased agricultural productivity: (i) Mozambique: Integrated study and project preparation for COFAMOSA irrigation project (see

8. Mozambique: Integrated study and project preparation for COFAMOSA (Committee for the Facilitation of Agriculture between Mozambique and South Africa) irrigation project. Financing: AWF €1,178,367, PETROMOC €73,774 Objectives: Undertake feasibility study and project preparation to enable the mobilization of funds for the development of 10,000 ha irrigated farmland. Sugar cane has been proposed in the pre-feasibility study as the main crop to be grown in the area to supply cane for sugar/ethanol production. Implemented by Ministry of Agriculture through the National Directorate of Hydraulics. Partners include farmers groups, private sugar companies, and the national oil company PETROMOC. Status: Approved November 2007. Project ongoing. Expected Results: The study will result in the catalysing of investments for the development of 10,000 ha of irrigated farm land under a PPP arrangement. As well, utilization of water resources and water infrastructure will be optimized, and agricultural productivity will be increased through the production of high value crops under irrigation.

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text box 8); (ii) Botswana: Development of Improved Water Control and Management System for Agricultural Production; (iii) Egypt: Comprehensive Studies for the Rehabilitation of the Nubaria and Ismailia Canals; and (iv) Djibouti: Water harvesting project for water supply and agriculture in rural districts (see text box 4).

3.4 Improving regional integration: AWF supports regional integration through its transboundary projects and its various activities. It acts to increase the capacity of recipients, and RECs in particular, to deal with water-related issues. Examples of key transboundary projects include: (i) Preparation of the Strategic Action Plan for the integrated water resources management of the Congo River Basin (see text box 9); (ii) Support to the development of the African Network for Basin Organisations; (iii) Support for the creation of the Volta Basin Authority; and (iv) Preparation of Lake Chad Basin water charter. In addition, the AWF instigates and promotes strategic regional initiatives in support of the AMCOW agenda, such as supporting regional participation in the 5th World Water Forum.

9. CICOS (International Commission of Congo-Oubanguie-Sangha basin): Preparation of the Strategic Action Plan for the integrated water resources management of the Congo River Basin. Financing: AWF €1,988,673. Objective: Ensure the sustainable management of the water resources of the basin. Implemented by: CICOS with participation of all basin countries: (Angola, Burundi, Cameroon, Central African Republic, Congo Brazzaville, DRC, Rwanda, Tanzania and Zambia). Status: Approved May 2007. Project ongoing. Expected Results: The project constitutes a decisive stage of an ongoing effort to find solutions to the many concerns related to the rational management of the water resources of the Congo basin. It will improve the framework for concerted management of the river basin, and consolidate the dialog between the nine riparian countries leading to optimization of the options for development of the water resources to the benefit of all, including bordering countries of the basin. It will also bring in sustainable funding and reinforce the sharing of assets amongst all stakeholders.

3.5 Expanding access to sanitation: The eThekwini Declaration and AfricaSan Action Plan, Feb. 2008, in which the AWF participated, has comprehensively addressed the need for strong actions on sanitation to meet Africa’s needs. Expanding access to improved sanitation with enhanced hygiene promotion and education components is a key focus area of the Facility. AWF projects support technical innovations such as Ecological Sanitation, or improving local ability to meet sanitation/hygiene needs through preparation of strategic sanitation plans. Thirteen ongoing projects cover issues related to sanitation and hygiene, of which four focus primarily on the development of improved technologies or approaches: (i) Uganda: Implementation of an integrated project of water supply and sanitation services for the urban poor in Kampala; (ii) Senegal: Ziguinchor sanitation master plan study; (iii) Tanzania: Arusha Strategic Sanitation Plan Preparation; and (iv) Kenya: Kisumu District primary schools water and sanitation (see text box 10).

10. Kenya: Kisumu District primary schools water and sanitation project. Financing: AWF €228,606. Objectives: Provide water, sanitation and hygiene education in six schools in Kenya by constructing innovative rainwater harvesting and ecological sanitation facilities, and teaching children about proper water use, hygiene and sanitation practices. Implemented by: HORIZON T3000 a regional NGO based in Uganda. Status: Approved December 2006. Project nearing completion. Recipient PCR received 31Dec08. Expected Resuls: The project will contribute towards improved health and better environment, and at the same time contribute to meeting the water supply and sanitation needs of the schools in a sustainable manner. It will directly benefit 3,300 pupils and teachers, and serve as a demonstration for scaling up of the project model in nearby districts and throughout the country.

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3.6 Addressing climate change: With greater climate variability, the need for strong water resources management is ever more crucial. The challenges of climate change have most recently been addressed in the Sirte Declaration on Water for Agriculture and Energy in Africa. The AWF deals with climate issues through various interventions at national and regional levels: (i) National Water Resources Management: AWF IWRM projects and activities enables countries to understand the impact of climate change and variability on water resources management, and supports the development of strategies on water security and action plans to mitigate and adapt to negative impacts; (ii) Transboundary Water Resources Management: Regional cooperation provides the greatest opportunity for analysing and understanding the problem and designing strategies for coping with the impact of climate change and variability. Achieving water security to cope with impacts needs significant investments in infrastructure. AWF TWRM and project preparation interventions are designed to address these climate change and water security issues; and (iii) Information Management: Data, information and knowledge is necessary for understanding the impacts as well as the planning and designing of adaptation measures. Providing support to the development of information management systems to be used for the elaboration of national and regional plans, programmes and project designs, and to generate data for M&E activities for decision making, is a significant focus of the AWF.

3.7 Supporting fragile states to meet basic needs: These countries often have the greatest need for improved access to water supply and sanitation, yet are not receiving the amounts of assistance required from donors due to ineligibility or other reasons. Since the AWF has the mandate and capability to work in all African countries, it has an important role to play in piloting new approaches to providing for basic needs in fragile states to enable them to meet the MDGs. Some examples of ongoing AWF projects include: (i) Strengthening water and environmental engineering capacity in fragile states (see text box 11); (ii) Liberia: Study for the expansion and rehabilitation of water supply and sanitation systems in Monrovia and three county capitals; and (iii) Central African Republic: Support to a water supply and sanitation study and priority investment project preparation for the 16 district capitals of RCA. Given the importance of meeting MDG targets in fragile states, as emphasised in the recent Sharm El-sheikh Commitments for Accelerating the Achievement of Water and Sanitation Goals in Africa, the AWF is planning on strengthening its role in assisting these countries, with a range of interventions planned in 2009 to meet basic needs through direct investments, improving sector governance and developing capacity.

11. Multi-country: Strengthening water and environmental engineering capacity in fragile states. Financing: AWF €1,990,000, partner countries €490,000 Objectives: Support to enable African students from fragile states to gain access to high quality education at an African based university and water sector centre of excellence. Implemented by: Institut International d’Ingénierie de l’Eau et de l’Environnement (2iE) Status: Approved September 2008. Not grant effective. Expected Results: The project involves the sponsorship of 231 students from fragile states and post-conflict countries to enable them to obtain an internationally recognized degree at a well recognised African based university and water sector centre of excellence in Burkina Faso. By applying a minimum quota of 30% female students and including socio-economic aspects of water supply and sanitation and water resources management in the curriculum, the project furthermore seeks to increase the proportion of female students, and sensitize the coming generations of water engineers to socioeconomic issues including poverty reduction, social equity and gender.

3.8 Strengthening monitoring and evaluation: The AWF has a mandate from AMCOW to lead the pan-African M&E initiative, which will strengthen water sector monitoring systems and help clarify Africa’s progress in meeting the MDGs and other political commitments. In response, the Facility has been active in commissioning a Pan African

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Monitoring and Evaluation assessment, and in convening broad stakeholder 12. Pan-African water sector M&E assessment:

workshops to review progress and plan This activity involved the rapid assessment of country future actions (see text box 12). The AWF M&E systems in five representative countries (Congo,

Malawi, Senegal, Tunisia, and Uganda). An action plan will now begin to support projects to for strengthening M&E systems across Africa wasstrengthen national and regional level prepared, and a step-by-step work plan developed for M&E systems, in-line with the approved supporting national efforts to strengthen their M&E framework and action plan, with projects capabilities. A Regional Water Sector Monitoring and involving CEDARE (Center for Evaluation Working Group meeting was held from 13

14 November 2008 in Tunis to review the draft report Environment and Development for the and the proposed action plan. The Working Group Arab Region and Europe) and SADC positively sanctioned the Pan African M&E Report, under preparation. noting the need to ensure linkages with existing

initiatives and donors for implementation. The AWF is 3.9 Mainstreaming social equity and using the outcomes of this assessment to guide its

gender: With the support of a Socio- interventions in sector monitoring and evaluation.

Economic and Gender Specialist, the AWF has initiated actions to mainstream gender and socio-economic issues in its projects. An internal assessment of the degree of incorporation of social equity and gender issues in the project portfolio was carried out in 2008. The project identification and design phase was identified as the most significant window of opportunity for ensuring appropriate incorporation of socio-economic and gender concerns. Similarly, the existence of a clear project assessment and processing framework was found to be essential for the introduction of a systematic mainstreaming of socio-economic issues, as well as a precondition for monitoring a mainstreaming process. In response to this, efforts to streamline and systematize the processing of incoming requests to the AWF are currently ongoing. At the same time, the role of socio-economic and gender related issues is being strengthened in the new generation of AWF projects, most specifically in the 2iE project which was approved in 2008 (see text box 11), as well as in two community development projects in South African and Malawi which are currently under appraisal. In the meantime, AWF continues its collaboration with the Bank in the fields of quality at entry and mainstreaming of social equity and gender issues. This is expected to enhance the equitable sharing of project benefits to women, men and children, and thereby strengthen the effectiveness and efficiency of planned interventions by the AWF and partners.

3.10 Involving NGOs and civil society: NGOs and Civil Society Organisations are playing a key role in meeting Africa’s WSS needs, especially concerning participation, local capacity building and empowerment, and addressing social equity and gender concerns. In particular they are often at the forefront in piloting new approaches and acting as change agents, which ties in closely with the mandate of the AWF to promote innovation and improve the enabling environment. As a result, the Facility is actively increasing its support in this regard. For example, the AWF is currently supporting NGOs in three projects in the areas of Meeting Water Needs and Governance: (i) Kenya: Kisumu District primary schools water and sanitation project; (ii) Uganda: Roof catchments rainwater harvesting and management; and (iii) African Network for Basin Organisations: Support to the development of the African Network of Basin Organisations (ANBO). In addition, there are five NGO/Civil Society project proposals currently under processing and many more NGO applications are waiting to be screened.

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4. LESSONS LEARNED AND STRATEGIC DIRECTIONS

4.1 At its recent Governing Council and Bank review meetings, as well as in various meetings with development partners, a number of important strategic suggestions have been made which draw upon the lessons learned by the Facility to date and the direction it should take in the future. The strategic directions are noted below:

4.2 Focus on areas of comparative advantage: At present, the AWF is just a small player in the African water sector. As a result, the need to prioritise and add value to ensure that the Facility intervenes where it can make a difference remains of utmost importance. For example, given its strong linkages with AMCOW, which represents all African countries, and its position within a regional development Bank (AfDB), the AWF has a natural advantage in implementing regional projects where dialogue and cooperation is crucial.

4.3 Ensure project quality not quantity: The recent GC meeting emphasised that the concern should not be to build up a large project portfolio, but to ensure that each project will make a difference and deliver results in-line with the AWF mandate. Given the limited number of projects that can be supported by the AWF, it is of utmost importance to ensure that all projects have a strong focus on achieving desired impacts, particularly with respect to catalysing resources. In particular, emphasis will continue to be placed on innovative technologies and approaches which have a good likelihood of being scaled up and leveraging funding.

4.4 Build on links with AMCOW: The close ties with AMCOW are recognised as of key strategic importance for the Facility, and the ongoing support to AMCOW Initiatives provides solid justification for the need for the AWF. The close cooperation with AMCOW TAC in the past year was welcomed by the GC as an important link in terms of addressing the regional water agenda, and in this respect the GC emphasised that the AWF should continue to work closely with the TAC as well as the newly appointed AMCOW Executive Secretary.

4.5 Enhance organisational/support activities: These include the many activities associated with management and coordination, outreach and partnership building, improving communications, supporting AMCOW strategic initiatives, and mobilising resources, as well as operational support activities implemented directly by AWF staff, such as status assessments. These are often very time consuming but are essential to the overall success of the AWF. As staff levels increase the Facility will be in a position to enhance the key role it is playing in the African water sector through its organisational activities.

5.6 Continue to seek support from AfDB field offices: Most of the AWF’s project implementation activities can be undertaken at the Field Office (FO) level, provided there is a FO in the country and the FO has adequate capacity to provide support (a Water Expert/Engineer is essential). At the present time many Bank field offices are actively participating in various project tasks, particularly assisting with project supervision and monitoring, and opportunities will continue to be explored to increase their involvement.

4.7 Strengthen communications and outreach: Since the AWF is a relatively new organisation, there is an ongoing need to increase awareness about the existence of the AWF and its many activities. This can be achieved through good communications and outreach, including dissemination of results achieved from its many projects, and various partnership

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building activities. Good communications is a continuous task which requires the participation of everybody, including AWF staff and management, GC members, AMCOW, and other stakeholders. A Communications Officer is being recruited by the AWF to support these efforts.

5. CONCLUSIONS

5.1 The Facility has already achieved important milestones and made many contributions to the African water sector, despite only being in full operation for three years. The AWF has succeeded in strengthening its institutional and operational arrangements, with strong support provided by the AfDB. It has also processed, approved and implemented 43 projects for funding. As well, the AWF is making strong efforts to address the main challenges it is facing, which include: mobilising adequate resources to sustain its planned programme; putting in place adequate levels of human resources; and ensuring effective and accountable project implementation by Recipients. As a result, the Facility is in a good position to fulfil its mandate over the upcoming years.

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ANNEXES


ANNEX A: OPERATIONAL STATUS

A.1 The Operational activities consist of the various projects/programmes implemented by the AWF. It also includes the associated support initiatives which are financed from AWF internal funds and implemented directly by AWF staff. This section summarises the status of operational activities in 2008, including project processing, implementation and portfolio status and results.

1 PROJECT PROCESSING

A1.1 Project approvals/commitments: The value of AWF’s approved Grants increased to €20.36 million in 2008, from €15.0 million in 2007, representing an increase in value granted of 36%. In terms of numbers, a total of 14 projects were appraised in 2008. While the projects actually approved by either the Director or President were eight, another seven projects were submitted for approval before the end of the year and as such have been counted in the total approvals for 2008. The total number of projects that have been approved since inception now stands at 43 with a commitment amount of €44.50 million. A summary description of all projects approved in presented in Appendix 1.1, which also includes a summary of project approvals by area of intervention for each of the years 2006, 2007 and 2008. As can be seen, the 14 projects approved in 2008 are in line with the 15 in 2007 and 14 in 2006, showing that the AWF is maintaining a steady pace of project processing despite staffing challenges (see Section B-5). Average project size is steadily increasing, from €0.64 million in 2006, €1.01 million in 2007, to €1.46 million in 2008, in-line with AWF efforts in this direction.

A1.2 Projects in the pipeline: A total of 20 projects (approx. €33 million) are in the pipeline as of the end of December 2008. These are now under preparation, which often involves a period of dialogue with the recipient to improve the project or clarify aspects of the proposal. The Facility has been taking steps to increase the number of projects in the pipeline through a focus on intensive screening of the large number of applications that have been received using newly developed Guidelines on Screening.

A1.3 Project identification: Since the Facility is demand driven, most projects are identified through applications (either proposals or concept notes) submitted by potential Recipients. As of the end of December, the AWF has identified 15 potential projects based on proposals received in 2008 and not yet screened. Several of these, depending on the outcomes of the screening process, will likely be included in the pipeline for appraisal in 2009. Since potential Recipients often submit concept notes for initial review, dialogue was undertaken with many of them to submit an application where the project is promising, which is expected to lead to many more viable project proposals. In addition to the application based identification process, the AWF has increasingly been undertaking specific identification missions in order to build the project pipeline in countries which are under represented. In this regard missions to eight RMCs in Southern, Eastern and Western Africa were undertaken in 2008 (see Appendix A.2). Since it is the AWF’s current policy to combine missions in order to maximize both human and financial resources, identification was also an activity of many other appraisal and supervision missions. Bank Field Offices have also been involved in project identification. Dialogue is ongoing with potential Recipients to submit an application where they have not already done so.

A-1


A1.4 Overview of the 2008 work plan execution: In the 2008 Work Plan and Budget, which was approved by the Board on the 14th December 2007, the AWF had planned on appraising and approving 34 projects in 2008, amounting to €47 million (see Figure A.1). The appraisal of only 14 projects in 2008 was mainly due the following reasons: (i) Staffing: AWF depends on Technical Assistants (TA) and Bank staff to act as Task Managers (TMs), and in 2008 three staff left the Facility (one TA resigned and another retired, while a senior Bank expert was re-assigned to a Field Office). Although recruitment of replacements is underway, this is a lengthy process which will only be completed in 2009. The AWF attempted to make up for the shortfall though the hiring of long term consultants to assist TMs with project preparation and appraisals; and (ii) Overly Ambitious Planning: Many of the premises on which the AWF was founded pertaining to funding commitments, availability of staff and the fast-track approach to approval and implementation have proven excessively optimistic. The AWF has taken these factors into account in developing its 2009 Work Plan, and has scaled back on the number of projects which it expects to be able to approve next year (as shown in Figure A1).

Figure A1: Planned vs. Actual Projects and Funding in 2007-2008

j

47

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15 14

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Number of Pro ects

2007 2008 2009

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42.6

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2007 2008 2009

anned

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* Planned based on AWF annual Work Plan and Budget.

A1.5 Portfolio Balance: The portfolio of projects are well distributed across several areas of intervention with a balance which is broadly in-line with plans as noted in the Operational Programme 2008-2010 (see Table A1). In order to balance its portfolio in areas of intervention not adequately represented, the AWF intends to pursue a thematic approach to soliciting projects, including issuing calls for proposals during the course of the year, which will focus on strengthening the financial base, improving service delivery and M&E.

A-2


Table A1: Distribution of all 43 approved projects by area of intervention

Operational Areas of Intervention

Percentage by Grant Amount

Percentage by Number of Projects

Planned1

% Actual

% Planned1

% Actual

% Strengthening Water Governance 31 33 33 32 Investments to Meet Water Needs 43 46 38 49 Strengthening the Financial Base 5 0 7 0 Improving Water Knowledge 21 21 22 19

Total 100 100 100 100

1) Based on the Operational Programme for 2008-2010.

A1.6 The geographic distribution of the AWF portfolio is reasonably well balanced based on the number of countries in each region with AWF projects (see Table A2). The West and Southern regions are somewhat under-represented compared to the other regions, with the East Africa region receiving the most projects. About half of all African countries are receiving AWF support. Continued efforts will be made to create awareness through AfDB field offices and the AWF website to reach out to those countries that have not as yet benefited from AWF resources. Issuing a Call for Proposals focused on these countries is another option being considered.

Table A2: Geographic distribution of approved projects

Sub-Regions of Africa Total Number of Countries in each

Region

Number of Countries in each Region with

AWF Projects1

Ratio Projects / Countries

West Africa 16 5 .31 Central Africa 7 4 .57 East Africa 12 8 .67 Southern Africa 12 4 .33 North Africa 6 3 .50

Total 53 24 .45

1) The 11 multinational projects, which touch on a number of countries, are not factored into this analysis.

A1.7 The distribution of Recipients and Executing Agencies is not well balanced. Out of the 43 projects approved to date, over half were received and implemented by National Government bodies which include Central Government Ministries and Departments, about one quarter from regional and sectoral actors which include Regional Economic Commissions (REC) and River Basin Organisations (RBO), and the remainder from various types of state/public actors (i.e. public utilities) and NGOs. In this regard, there are five projects under processing which involves NGOs, and many more applications from NGOs etc. are waiting to be screened. The AWF plans on increasing efforts to ensure that NGOs and other sub-sovereign entities are better represented in the future, including potentially issuing a Call for Proposals targeted at NGOs or state actors, and increased sensitisation on opportunities, such as the meeting held with NGOs in 2008 during the African Water Week.

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Table A3: Types of Recipients and Executing Agencies (number of projects)

Category of Organisation Recipients Executing Agency

Regional, Sub-Regional, Sectoral (REC, RBO) 11 10 National and Local Government 27 23 State Actors (municipalities, public utilities, public educational institutions, etc.) 3 6

NGOs, CBOs, Civil Society 2 4 Total 43 43

PROJECT IMPLEMENTATION

A2.1 The project implementation process indicated in Figure A2 below, start immediately after project approval. On-going project processing may be sub-divided into two main phases: i) project start-up phase - comprising projects for which processing for grant effectiveness is on-going; and ii) project execution phase - involving implementation of project activities; procurement of goods, works, services; disbursement; project management; and control of implementation up to completion.

Figure A2: Project Implementation Processes after Approval

A-4


A2.2 Signature of Grant Agreement: The AWF Operational Procedures require that the AWF should prepare the standard legal agreement document – the Grant Protocol Agreement – to be signed by the Director and the Recipient. The deadline for signing the Grant Agreement is 90 days from the date of approval, failing which the grant may be cancelled (Clause 7.6 and 7.7). In practice, the deadlines have not been complied with in several instances. However, given that the delays were due to justifiable reasons, the Facility has continued with the process of dialogue and support to get Grant Agreements signed, and as a result all 35 of the projects approved before September have now been signed. In the future, the greater involvement of Field Offices will be sought to expedite signatures.

A2.3 Grant Effectiveness: It is a requirement of the AWF Operational Procedures (Clause 7.7.1) that the Grant must be declared effective before AWF may make any disbursements of the funds. AWF Grant Protocol Agreements generally contain simple Grant conditions involving (i) submission of authorized signatories for the Grant; (ii) opening of a Special Account in Euro; and (iii) appointment of a Project Coordinator. AWF normally monitors compliance with these conditions and grant effectiveness is pronounced only when they have been met. Thirty of the 43 approved projects were Grant Effective as of the end of December 2008, compared to 20 in December 2007 (see Appendix C.1). In order to expedite project start-up and declaration of effectiveness, the Facility undertook seven Project Launching Missions which were combined with dialogue and meetings with Recipients, and the two Project Implementation Workshops for all Project Managers and staff, which were held in Kampala and in Tunis.

A2.4 Procurement of Goods, Works and Consultancy Services: Given that the Facility has the major objective of providing flexible and rapid response to Recipients, relatively simple and fast procurement modes are normally selected in the Appraisal process. These include use of National Competitive Bidding, Shopping and Short-listing procedures; reduction in bidding periods from those of the Bank’s Rules; use of National procurement procedures where possible; and post procurement review procedures that allow Recipients to proceed with procurement of works without having to obtain prior approval for some contracts.

A2.5 In practice, procurement under the Bank’s procedures were perceived as complicated by many recipients and was a key factor in delaying project execution. For example, given the large size of most consultancy services contracts which require full compliance with the Bank’s use of international short-listing procurement procedures, recruitment of consulting firms and individual consultants - which constitutes the main procurement task for most Recipients - normally took from 8 to 12 months. In contrast, the procurement of local contractor’s services or goods and equipment is normally undertaken using National Competitive Bidding or National Shopping procedures. This type of local procurement generally proceeded on target since it did not present a great problem for Recipients given that they could use more familiar procedures.

A2.6 To expedite procurement activities it was necessary for the AWF to provide considerable support to Recipients since most lacked the capacity to execute procurement activities in accordance with Bank rules and procedures. The AWF was also responsible for monitoring compliance with the Bank’s Rules and procedures. As a result, supporting Recipients in procurement and monitoring required substantial AWF staff effort. The Facility is trying to reduce the time needed by enlisting the support of Bank Field Offices in this role where possible.

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A2.7 Project implementation times: The AWF aims at fast tracking the start-up process from approval to first disbursement. In practice, Grant Agreements are normally signed fairly quickly, with an average time of 2.6 months for the 35 signed projects. After signature, another 3.6 months are needed for the recipient to meet the conditions for grant effectiveness (based on the 30 effective projects); and first disbursements are then made in just under one month. In total, the average time from approval to first disbursement is currently about 7.2 months (calculated for the 25 projects which have disbursed using normal Bank procedures). Although these project start-up times are good, they could be further improved upon, such as through the greater involvement of Field Offices in dialogue and support to Recipients, more flexible conditions for Grant Effectiveness, ensuring a launching mission for every new project, additional project implementation workshops for ongoing projects.

A2.8 The ensuing project execution phase follows, which based on experience can take just over two years. In total, project implementation is expected to take on average three years from approval to completion. As a result, it is anticipated that the 14 projects approved in 2006 will all be completed by the end of 2009, while the 15 projects approved in 2007 will be completed by the end of 2010.

A2.9 Projects at risk: Of the 43 approved projects in the portfolio at the end of 2008, only one may be considered to be at risk (Niger Preparation of IWRM Action Plan), based upon the time it has taken for it to be declared Grant Effective. This is because BCEAO (the Central Bank of West Africa) has not allowed the Recipient to open an account in Euro, even though other West African countries have. Negotiations are on-going and the Niger ministries of Finance and Foreign Affairs are involved in overcoming this problem.

A2.10 Project Monitoring and Supervision: Project monitoring was strengthened, with the introduction in the first quarter of 2008 of a new Quarterly Progress Report (QPR) format for AWF Grant Recipients. Although the use of the new format was widely adopted, only about a quarter of projects were submitting QPRs on a regular basis. Of these, the quality varied, with incomplete information in the initial QPRs. Expediting preparation of QPRs and providing support to ensure quality required extensive follow up by AWF Task Managers in 2008. The Project Implementation Workshops have further emphasised the need for regular reporting under AWF format, and also provided training in properly completing the QPRs.

A2.11 Twenty project supervision missions were undertaken during the year (see Appendix A.2 for details). The corresponding supervision ratio for 2008 to end of December is 0.7 (defined as number supervision missions vs. grant effective projects). The supervision missions reviewed with Recipient Executing Agencies (REA) the status of project execution, including any problems encountered, and formulated strategies for resolving outstanding issues and ensuring timely completion of the remaining components of the projects. Emphasis was placed on implementation issues, involving mostly the procurement of the services of consultants, contractors, as well as the procurement and installation of equipment.

A2.12 Project Audits: In accordance with Article 8.3 on Audit of Operations of the AWF Operational Procedures, the Facility commenced the first phase of recruitment of auditors in March 2007. Consequently, six Audit Firms were recruited to undertake audits on 12 projects. The first audit under the signed contracts, covering the Niger Basin Authority’s Support for Niger HYCOS Project, commenced in May and was completed in June 2008. The interim audit report has been submitted to AWF and reviewed by ORPF. A letter has been sent to the Recipient drawing its attention to the non-conformities requiring rectification. Of

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the remainder, six projects have received an interim audit, two are expected to be audited during the first quarter of 2009 with three by the middle of 2009. The remaining one project is not yet effective. The status of project audits is shown in Appendix A.3.

A2.13 The second phase recruitment of auditors for another 19 AWF projects and programmes commenced in March 2008. The countries where these projects were located were grouped into lots such that projects could be conveniently audited by one auditing firm at reasonable cost, in accordance with Article 8.3 of the AWF Operational Procedures. The recruitment process followed the Bank’s Integrated Consultants Recruitment and Management System (ICRMS) which is SAP-based. The evaluation of audit consultants’ proposals has been completed for projects in Southern and Eastern Africa, with on-site external auditing proposed to start in March 2009 for projects that will be ready. For the Western and Central African Projects, the recruitment process should be completed by March 2009 with auditing starting during the second quarter of the year.

PORTFOLIO OVERVIEW AND RESULTS

A3.1 A summary of projects approved and under implementation is discussed in this section. The overall performance of the AWF in meeting its planned operational targets within each area of intervention is also reviewed. A Results Based Management (RBM) approach is used to structure and assess the operational activities of the AWF, which was established in 2005 during the preparation of the initial Operational Programme. The performance of the AWF in meeting its planned operational targets for 2008 is summarised in Annex D, which presents a compilation of all the performance indicators, targets and actual results for 2007, along with comments as appropriate. Details on results achieved, and reasons for specific shortcomings and the actions being taken, are noted in the following subsections.

Strengthening Water Governance

A3.2 The AWF provides support for a wide range of water governance interventions which are designed to improve the enabling environment and strengthen water resources management at community, national and regional levels. To achieve this, the existing focus on national IWRM and TWRM has continued to be emphasized in 2008, as described below:

National Water Resources Management (NWRM):

A3.3 NWRM has been a major area of focus in 2008, with four projects appraised and approved. These consist of support to Burkina Faso to strengthen its capacity for decentralised IWRM; Kenya for the integrated watershed management of Kiboun and Tende river basins; Liberia for a water sector reform and capacity building study; and Morocco for a project aimed at the artificial recharge of Haouz water table. In total, nine NWRM projects have been approved to date, amounting to €9,695,000. As a result of this significant level of intervention, the Facility has realised its planned NWRM results for 2008, with planned targets for most indicators having been met or exceeded (see Annex D). In particular, the completed project for the establishment of the Volta Basin Authority has resulted in several follow-on interventions financed by donors and member countries (i.e. the EU investing at least €3 million already).

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Transboundary Water Resources Management (TWRM):

A3.4 Support for the joint development of shared waters through improved TWRM is another important focal area of the Facility. There is a strong demand for AWF support to TWRM interventions, with five projects approved to date, amounting to €5,068,000. Of these, one project was approved in 2008, consisting of support to the OMVG (Gambia River Basin Organisation) for IWRM in the Kayanga Geba river basin. The Facility has also realised its planned TWRM results for 2008, as shown in Annex D, with all targets met.

A3.5 Other important TWRM activities undertaken by the AWF included preparation for and participation in the Niger River Basin Authority (NBA) Head of State Summit on 30 April, and Donors Round Table Meeting held in France and Niger from 21-24 June for the implementation of the Niger River Shared Vision and its associated action Plan (PADD) up to 2025. Facility staff also participated in the 3rd conference on Shared Aquifer Management held in Libya from 24-28 May.

Improving service delivery:

A3.6 The AWF can support a wide range of activities designed to improve delivery of water supply and sanitation services. Since this is a new area of intervention for the Facility, identification of relevant projects is still ongoing. Projects are under discussion with potential Recipients include: benchmarking of African water utilities to provide a tool for strengthening their operation and maintenance capacity; and strengthening pro-poor water supply and sanitation service delivery using effective operational public private partnerships (PPP) arrangements and improved policies and strategies. The AWF is also supporting the newly established WOP-Africa secretariat to develop a programme for building capacity and improving performance of utilities in Africa through networking and cooperation.

Investments to Meet Water Needs

A3.7 The AWF provides targeted and strategic capital grants for water infrastructure projects that meet needs for water supply, sanitation and productive uses, with a focus on innovative projects that will lead to increased follow-on investments. The AWF also supports the preparation of larger water and sanitation development programmes and projects, at national and regional levels, which will lead to proposals submitted for funding.

Water Supply, Sanitation and Hygiene

A3.8 A total of four WSS projects have been approved to date, amounting to €3,470,000. One project was approved in 2008, involving the promotion of solar and wind powered pumping technologies for rural water supply in Ethiopia. As shown in Annex D, progress in achieving planned results for 2008 is above target with respect to water supply, but lower than expected for sanitation. As well, delays in completion have meant that expected downstream impacts (additional investments for scaled-up projects) have not yet been realised.

Water for Productive Uses

A3.9 A focal area for AWF capital investment grants is water for agricultural uses to achieve food security, especially given the current need to respond to the food crisis in Africa. In this regard three agricultural water projects have been approved to date (€3,556,000), with one of these approved in 2008 involving run-off water harvesting for multi-purpose uses in Djibouti. Progress in achieving planned targets for 2008 is very good

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with the planned number of projects underway and size of irrigated area being met. In addition, one very significant resource mobilisation result has been achieved - an ongoing project in Botswana, (development of improved water control and management systems for Pandamatenga agricultural production), has been instrumental in enabling a lending of about €40 million from the AfDB for development of the agricultural production infrastructure in the area, due to the AWF funding of the Environmental Impact Assessment component.

Project and Programme Preparation:

A3.10 Demand for AWF support for the preparation of larger water and sanitation development programmes and projects, at national and regional levels, is high, with 14 projects approved to date, amounting to €13,467,000. Of these, four were approved in 2008. These involve: a feasibility and design study of storm water drainage and solid waste management systems in Ouagadougou, Burkina Faso; preparation of water and sanitation investment plans for 15 town centres along the shores of Lake Victoria; a study for the expansion and rehabilitation of Monrovia and three county capitals water supply and sanitation systems; and preparation of a water supply development plan 2008-2030 for the Seychelles. All of these projects are expected to result in the availability of bankable projects with high likelihood to access financing from public and private sector sources.

A3.11 Although a large number of projects are underway, delays in completion have meant that expected impacts relating to follow-on financing by donors and private sector have not yet been generally realised. However, one project has realised follow-on donor financing even before completion, the Botswana Water Control and Management project, where the Environmental Impact Assessment component is finished and has enabled AfDB funding of a €40 million investment project. In addition, a couple of donor round tables are planned in the first half of 2009 to mobilize funds for investment projects prepared with AWF funding.

Strengthening the Financial Base

A3.12 AWF involvement in strengthening the financial base centre around two broad types of support: i) improving the environment for sustainable financing; and ii) improving availability and access to financing by local governments and sub-sovereign bodies, public utilities, the private sector, NGOs and communities. No projects which specifically focus on strengthening the financial base have yet been approved (demand from RMCs determines projects in pipeline and so far, no eligible proposals have been received in this area). However, 18 ongoing projects have activities which relate to improving financing - these are noted in the indicators (Annex D). To stimulate demand the AWF has been active in identifying projects in this area, and a number are likely to be included in the pipeline soon. In this regard the AWF has participated in various financing related workshops in 2008:

• The Facility is involved in a working group coordinated by the International Secretariat for Water with the aim of developing financing mechanisms at the decentralised local level. A working session was attended in Paris on 26th May.

• AWF participated in the Utilities Credit Assessment workshop organised by the WSP and AfDB in Senegal on the 24-25 November. The assessment is seen as a useful tool for utilities to get comfortable with market finance, and to strengthen financial and operational management. The Facility is considering supporting the roll-out of the tool to more utilities.

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• A Financing Water for Growth workshop organised by ICA in Senegal, 26-27 November, and a Financing and Pricing Water conference organised by the OECD in France, 1-2 December, were attended by the AWF. The purpose was primarily to raise the visibility of the Facility, build partnerships and identify potential new projects. As a result of the mission, AWF is in dialogue on two potential projects.


A3.13 One of the important areas of intervention of the Facility concerns support for various types of cross-cutting water knowledge activities to increase the availability of reliable water resources information, improve the monitoring of achievements in meeting targets, and generate and disseminate water related knowledge.

Information Management

A3.14 The area of water resources information management has few donors’ interventions and hence there has been considerable demand from national and regional organisations for this type of assistance. As a result, the AWF has approved seven information projects to date, amounting to €7,244,000, and four other NWRM projects have components which relate to water resources information management. Two projects were approved in 2008, consisting of support to the VBA (Volta Basin Authority) for the implementation of the Volta-HYCOS; and development of an integrated water information system in Togo. Progress in achieving the planned results has exceeded expectations, with more projects underway than planned (see Annex D). In addition, the AWF funding for the OSS Geo-Aquifer project has already enabled access to GEF- FFEM (France) investment funds amounting to €1.3 million.

A3.15 An important activity consisting of a compilation and assessment of water resources information and knowledge management status in 10 countries has been directly undertaken by AWF staff with the assistance of an international consultancy firm. This activity built on a previous AWF study involving the preparation of water information and knowledge profiles in 10 countries (Ghana, Tanzania, Malawi, Ethiopia, Tunisia, Lesotho, Benin, Senegal, Congo and Burkina Faso), which showed major weaknesses in the generation, collection, analysis, storage and diffusion of water information in most countries, with knowledge management aspects little developed. Activities were completed in the second quarter of 2008, with the key findings and outputs to be widely disseminated through AWF communication products and website.

Monitoring and Evaluation

A3.16 The AWF is responding to the challenge of improving monitoring and evaluation within the African water sector through direct project interventions aimed at establishing or strengthening water sector M&E systems and management capabilities at national or regional levels, as well as by supporting AMCOW in organising consultative workshops and undertaking sector assessments. In this regard, the AWF undertook an important pan-African water sector M&E assessment in the first quarter of 2008. This activity was completed in June by a consultancy firm recruited by the AWF, and involved the rapid assessment of country M&E systems in five representative countries (Congo, Malawi, Senegal, Tunisia, and Uganda). An action plan for strengthening M&E systems across Africa was prepared, and a step-by-step work plan developed for supporting national efforts to strengthen their M&E capabilities. A Regional Water Sector Monitoring and Evaluation Working Group meeting was held from 13-14 November 2008 in Tunisia to review the draft report and the proposed

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action plan. The Working Group positively sanctioned the Pan African M&E Report, identifying gaps to be filled, notably in the detailed mapping at country and regional organizations levels, and the need to ensure linkages with existing initiatives and donors.

A3.17 The AWF will use the outcomes of this assessment to guide its interventions in sector monitoring and evaluation. It is upon completion of these ongoing assessment activities that projects specifically focused on M&E will come on-stream. At the present time, the ongoing NWRM project in Namibia has an M&E component, and two M&E focused project are currently under preparation.

A3.18 Following a request for support submitted by AMCOW through CEDARE (Center for Environment and Development for the Arab Region and Europe), the AWF co-organised an important consensus building workshop in Egypt from 15-17 June 2008, to review and update a project for the development of a North African sub-regional M&E mechanism to monitor the water sector and achievements towards meeting the MDG’s. As a result of the workshop, the project is now being redesigned to reflect decisions reached to focus on the immediate development of the regional M&E activities and the National M&E frameworks, and will be appraised early in 2009.

A3.19 In the framework of the Multi Donors Partnership Programme for Water (MDWPP), and under the responsibility of AMCOW, the AWF is preparing a programme for the survey of the implementation of the African Water Vision. The draft document for the implementation of the first phase of the survey is in the process of being finalised by AWF and AMCOW-TAC. The implementation of the first phase of the survey will be carried out in 2009, with €100,000 in funding provided by the MDWPP.

Knowledge Generation and Dissemination

A3.20 Since the AWF aims at providing resources to projects that facilitate change and innovation in the water sector, in order to promote adoption of good practices by others, knowledge generation and dissemination are very important activities for the Facility. One project was approval under this category in 2008, which focuses on strengthening water and environmental engineering capacity in fragile states. The project involves the sponsorship of 231 students from fragile states and post-conflict countries to enable them to obtain an internationally recognized degree at a well recognised African based university and water sector centre of excellence in Burkina Faso. By applying a minimum quota of female students and including socio-economic aspects of water supply and sanitation and water resources management in the curriculum, the project furthermore seeks to increase the proportion of female students, and sensitize the coming generations of water engineers to socio-economic issues including poverty reduction, social equity and gender.

A3.21 The AWF also plans to generate various knowledge products based on experiences from its many projects and activities, and widely disseminate them through a range of communication channels. However, due to the early stages of project implementation, there has been little opportunity to develop learning activities since only one project has been completed to date.

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Cross-Cutting Issues

Mainstreaming gender and social equity

A3.22 With the support of a Socio-Economic and Gender Specialist, the AWF has initiated actions to towards the mainstreaming of gender and socio-economic issues in its projects. An internal assessment of the degree of incorporation of social equity and gender issues in the project portfolio was carried out in 2008 and preliminary results presented at the GC seminar in October. The project identification and design phase was identified as the most significant window of opportunity for ensuring appropriate incorporation of socio-economic and gender concerns. Similarly, the existence of a clear project assessment and processing framework was found to be essential for the introduction of a systematic mainstreaming of socioeconomic issues, as well as a precondition for monitoring a mainstreaming process. In response to this, efforts to streamline and systematize the processing of incoming requests to the AWF are currently ongoing. At the same time, the role of socio-economic and gender related issues is being strengthened in the new generation of AWF projects, most specifically in the 2iE project which was approved in 2008, as well as in two community development projects in South Africa and Malawi which are currently under appraisal. In the meantime, AWF continues its collaboration with the Bank in the fields of quality at entry and mainstreaming of social equity and gender issues. This is expected to enhance the equitable sharing of project benefits to women, men and children, and thereby strengthen the effectiveness and efficiency of planned interventions by the AWF and partners.

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APPENDIX A.1: DESCRIPTION OF APPROVED PROJECTS

Summary by area of intervention and year (all amounts in million Euro)

Project commitments, by area of intervention:

Projects Approved 2006

Projects Approved 2007

Projects Approved* 2008

Total Projects Approved

No. Amount No. Amount No. Amount No. Amount Strengthening Water Governance

NWRM 2 0.978 3 2.741 4 5.986 9 9.705 TWRM 2 0.604 2 2.879 1 1.585 5 5.068

Investments to Meet Water Needs Water and Sanitation 2 1.028 1 0.450 1 1.992 4 3.470 Water for Agriculture 1 0.450 1 1.169 1 1.937 3 3.556 Programme/Project Preparation 3 1.902 7 7.454 4 4.111 14 13.467

Improving Water Knowledge Information Management 4 4.020 1 0.455 2 2.769 7 7.244 Knowledge 1 1.990 1 1.990

TOTAL Project Commitments 14 €8.982 15 €15.148 14 €20.370 43 €44.500

* Includes 7 projects which were appraised and submitted for approval in December 2008.

STRENGTHENING WATER GOVERNANCE (Projects names highlighted indicate projects approved, or under processing for approval, in 2008)

NWRM (National Water Resources Management) Project Details Objectives, Main Activities Expected Results

Summary of NWRM projects: Nine projects approved with two under Objectives: Preparation of IWRM plans (4 Improved capacity for planning implementation. Total AWF grants projects), implementation of existing IWRM and implementation (9 projects); €9,695,500. One project co-financed by plans (3), integrated watershed management (1) IWRM plans owned and endorsed donors. Seven projects implemented by and aquifer recharge (1). by all stakeholders (4); enhanced local Water Resources Directorates/ Activities: All projects focus on improving regulatory performance for Departments, with the support of the overall capacity for IWRM; 5 projects include licensing and compliance control GWP on 3 projects. Duration of development of investment programme and (3); mobilisation of adequate implementation 12 to 34 months, with funding mechanisms; 3 include enhancement of financing for implementation of average 24 months. regulatory capacity; 6 relate to enhancing IWRM (5); improved knowledge

knowledge of water resources and improving and monitoring of water resources M&E; and 5 include awareness creation or (6); and positive environmental sensitisation activities. impacts (2)

Burkina Faso Objective: Strengthening of institutional The project will cover the urgent Capacity building for decentralized capacity and performance for monitoring and needs for human capacity building IWRM. development regulation of water resources and to perform IWRM in the field, Financing: AWF €450,000, Gov. water use in the country to support including enhancement of DGRE’s €200,000 (in-kind). Recipient: Ministry implementation of Burkina’s IWRM plan. regulatory performance to achieve of Agriculture and Water Resources. Activities include: sensitisation, training in water tangible results in terms of issuing Implemented by: DGRE (Directorate of information and modelling, and enhancement of of water permits and compliance Water Resources) in collaboration with DGRE’s regulatory performance to authorise control in water conflict areas. DANIDA, SIDA, AFD, EU involved in water abstraction, hydraulic works and discharge the National Water Action Plan. and compliance control. Duration 24 months. Status: Approved 25Apr08. Not grant effective.

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Burundi Objective: Formulate an IWRM and water A National framework for Formulation of IWRM Plan. efficiency plan for Burundi for the long term sustainable water resource Financing: AWF €480,000, Gov. in- development of the water sector. management and service provision kind (amount not quantified). Activities include developing an IWRM will be put in place with strong Recipient: Nile Basin Initiative framework; supporting institutional reforms and ownership by all stakeholders; Secretariat. capacity building; integrating water into national water resource management and Implemented by: Global Water development plans and PRSP; and developing water service delivery will be Partnership - Eastern Africa in liaison funding mechanisms for implementing the improved; and collaboration with with Gov. of Burundi. IWRM plan. potential relevant financing Duration 24 months. institutions will be strengthened Status: Approved 1Sept.06. First leading to mobilisation of disbursement 21June07. resources for water sector

development projects. Kenya Objective: Improve the productivity and The improved land and water Integrated watershed management of sustainability of land use systems and water management will initiate recovery Kiboun and Tende river basins. Financing: AWF €1,940,000, Gov.

conservation by empowering local communities and agencies of Government to institute

of water quality and quantity through promotion of sustainable

€100,000 (in-kind). Recipient: Ministry of Regional Development Authorities (MRDA) Implemented by: MRDA using

improved management of the catchment of the Kibuon and Tende. Activities: (i) water quantity and quality monitoring and management, (ii) community

agricultural and land use practices in the catchments, leading to reduction in nutrient and sediment transport into the water courses;

existing Project Coordination mobilization and awareness creation; (iii) higher levels of base flows with Management Team capacity building of communities and lower levels of flood peaks; Duration: 34 months Status Submitted for approval 31Dec08

supporting agencies; (iv) implementation of off-farm conservation infrastructure; and (v)

improved vegetative cover, soil productivity and forest resources;

financing community sub-projects. and conservation of wetlands. Liberia Objectives: Improve the enabling environment Water sector reformed and Water sector reform and capacity in the water sector through implementation of a restructured to address building study. reform agenda. comprehensively the rational and Financing: AWF €1,694,000, Gov. Activities: Multi-stakeholder development sustainable development of water €90,000 in-kind process followed by government endorsement of resources of the country, and the Recipient: Ministry of Finance policy, strategy, regulation and legislation creation of a favourable Implemented by: Ministry of Lands, instruments, and implementation of workable environment for increased sector Mines and Energy (MLME). institutional arrangements, and preparation of a investment inflows. Duration: 12 months from Grant short to medium term investment program Signature. geared towards the immediate needs of Status Submitted for approval 31Dec08 rehabilitation and recovery of water

infrastructure under a national IWRM approach. Mauritania Objective: Support the process for the ongoing Adoption of the IWRM approach Formulation of IWRM and Land Use development of an IWRM and land use plan, by all stakeholders with improved Plan, Phase 1. and improve capacity for implementation. capacity for IWRM at national and Financing: AWF €500,000, UNDP Activities include: assessment of existing water decentralised regional levels. €328,000, EC €75,000 (parallel), Gov. resources and land use situation at Better temporal and spatial €200,000 (in-kind). Recipient: Ministry national/regional levels; preparation of land and information on water resources and of Water (MHETIC). Implemented by: water use strategies and implementation plans; land use. DEPC (Directorate of Studies and establishment of a GIS based monitoring system Cooperation), in partnership with and database in one region; and improve overall UNDP, EU Commission. Duration 24 capacity for IWRM. months. Status: Approved 7Nov07. Not grant effective. Morocco Objectives: Improve water resources The project will strengthen the Artificial recharge of Haouz ground management in the Haouz basin through capacity of the Tensift River Basin water aquifer. artificial groundwater recharge. Agency to develop and implement Financing: AWF €1,892,500, Gov. Activities include: i) technical, socio-economic a large scale investment €255,500 (in-kind). and environmental studies for the identified programme based on artificial Recipient: Ministry of Energy, Mines, recharge sites; ii) construction of infrastructures groundwater recharge, which will Water and Environment (MMEEE). for storage of run-off flood water for recharging result in increased availability of Implemented by: Tensift River Basin the water table; iii) monitoring and evaluation water resources, improved water Agency, under the MMEEE of project impact on ground water levels; and iv) security and meeting of water Duration: 30 months building institutional capacities. demands for various uses. Status Submitted for approval 29Dec08

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Namibia Objective: Facilitate the preparation of an A holistic, integrated approach to Development of an IWRM Plan. IWRM plan for sustainable water resources use water resources use and Financing: AWF €498,200, Gov. and management in Namibia. Activities include management in the context of Namibia €150,000. Recipient: Ministry development of: National Water Resources sustainable development will be of Agriculture, Water and Forestry. Development Strategy and Action Plan; formulated and implemented as a Implemented by: Department of Water Information and Knowledge system; long-term national IWRM plan, with strong Affairs and Forestry in liaison with M&E framework; integrated framework for ownership of the National GWP-SA and SADC. Duration 24 institutional development and capacity building; Frameworks and the process by all months. Status: Approved in 22Dec06. funding mechanisms for Implementation of the stakeholders, and adequate funding First disbursement 20Aug07. IWRM Plan; and awareness creation on IWRM. available for implementation. Niger Objective: Develop a National IWRM Action A national IWRM action plan for Preparation of IWRM Action Plan for Plan for effective integrated water resources the long term development of, and Niger. management in Niger. Activities: a investments in, the water sector is Financing: AWF €660,775, Gov.Niger comprehensive study of the water resources adopted and implemented, with the €40,000 (in-kind). Recipient: Republic situation; elaboration of the National IWRM informed commitment and of Niger. Implemented by: DRE (Water action plan and investment programme; collaboration between all Resources Directorate). Duration: 16 development of a financing strategy and stakeholders, and strong support months. Status: Approved 30Apr07. mechanism for implementation; and awareness from financial partners. Not grant effective. creation amongst stakeholders and beneficiaries. Senegal Implementation of the IWRM Action

Objective: Strengthen and activate the DGPRE at national and local levels to pursue the

Give momentum to the implementation of the IWRM

Plan for Senegal. Financing: AWF €1,580,000, Gov. Senegal €100,000 (in-kind).

implementation of the IWRM plan to achieve equitable and sustainable development of the nation’s water resources. Activities: (i)

action plan to perform systematic water resources licensing, planning and appropriate integration of

Recipient: Gov. of Senegal. Implemented by: DGPRE (Water

improvement of operational water information and knowledge; (ii) strengthening of water

national IWRM into Senegal’s trans-boundary water management

Resources Directorate) in liaison with resources strategic investment planning and activities. The project will the GWP- Senegal. Duration 24 months. Status: Approved 28Aug07. First

development of an investment programme for IWRM; (iii) strengthening of DGPRE’s regulatory operations and economic recovery;

contribute to the Government’s poverty reduction strategy and will give momentum to the country’s

disbursement 6Nov08. (iv) sensitisation and activation of stakeholders achievement of the MDGs and the and decision makers; and (v) reinforcement of Water Vision for 2025. institutional capacity

TWRM (Transboundary Water Resources Management) Project Details Objectives, Main Activities Expected Results

Summary of TWRM projects: 6 projects approved with 4 under Objectives: Each project is unique, with one Development of transboundry implementation. Total AWF grants involving the preparation of an action plan, one water resources with adequate €5,068,000. All projects implemented the creation of a river basin authority, one the financing to realise planned by RBOs in partnership with riparian preparation of a water charter, one strengthening investments (1 project); stronger countries. GWP providing assistance RBO capacity, and one support to the network institutions capable of effective for 3 projects. Duration of project implementation 8 to 30 months (ave.

of basin organisations. Activities: Also varied depending on objectives,

planning and management of shared water resources (4);

18). and include: RBO capacity building; improving enhanced co-operation and networking and coordination; creation of legal partnerships (5); improved legal instruments; preparation of an action and and other instruments (2). investment plans; development of IWRM plans, and mobilisation of resources.

ANBO (African Network for Basin Objective: Strengthen and build capacity of Improved trans-boundary resources Organisations) ANBO by reinforcing ANBO’s interactions with management (TWRM) through Support to the development of the RBOs, leading to the development of new basin strengthened and empowered basin African Network of Basin organisations and improvement of the existing organisations in Africa. These Organisations (ANBO). ones. Activities: extension and activation of efforts shall facilitate enhanced Financing: AWF €439,000, OMVS ANBO’s membership base; strengthening international cooperation and €80,000, ANBO €50,000. Recipient: ANBO’s interactions with all members and political commitment, and OMVS on behalf of ANBO. other stakeholders; evaluation of the legal establishment of joint development Implemented by: ANBO in partnership cooperative frameworks of existing Basin programmes to attract investments with all African RBOs. Duration 30 Organisations; upgrading of the information and intended to yield shared benefits months. Status: Approved 22Dec06. knowledge exchange among member for the riparian countries.

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First disbursement 18Jul07. organizations; and the restructuring and strengthening of the ANBO Secretariat.

CICOS (International Commission of Objective: Ensure the sustainable management The project constitutes a decisive Congo-Oubanguie-Sangha basin) of the water resources of the basin. Activities: (i) stage of an ongoing effort to find Preparation of the Strategic Action reinforce the institutional framework for solutions to the many concerns Plan for the integrated water resources management of the Congo basin; (ii) reinforce related to the rational management management of the Congo River Basin. the capacities of CICOS and other key actors; of the water resources of the Financing: AWF €1,988,673, CICOS (iii) equip the Congo basin with a suitable Congo basin. It will improve the €216,000 (in-kind). framework for planning centered around the framework for concerted Recipient: CICOS. Strategic Action Plan; (iv) set-up an management of the river basin, and Implemented by: CICOS with international partnership for the sustainable consolidate the dialog between the participation of all basin countries: development of the Congo basin which will be nine riparian countries leading to (Angola, Burundi, Cameroon, Central used as catalyst for the mobilization of financial optimization of the options for African Republic, Congo Brazzaville, resources; and (iv) organise a round-table of development of the water resources DRC, Rwanda, Tanzania and Zambia). donors to secure financing for the long term to the benefit of all, including Duration 18 months. development of the Congo basin. bordering countries of the basin. It Status: Approved 30May07. First will also bring in sustainable disbursement 24Aug07. funding and reinforce the sharing

of assets amongst all stakeholders. LCBC (Lake Chad Basin Objective: Support the LCBC in the creation and The Water Charter will facilitate Commission) adoption of a Lake Chad Water Charter between equitable and predictable water Preparation of Lake Chad Basin water the five riparian states, which will function as a resources allocations between charter. political and legal instrument for equitable water countries and sectors, which will Financing: AWF €890,000, LCBC sharing, common investments, and support the development of water €110,000 (cash and in-kind). Recipient: environmental management. Activities: The resources and prevention of LCBC. Implemented by: LCBC in project will be implemented in three stages: (i) conflicts related to the use of consultation with 5 riparian states analysis and assessment of the legislative and water. The Charter will also lend (Chad, Cameroun, Central African institutional framework; (ii) creation of the credibility to the LCBC, and Republic, Niger, Nigeria). Duration 21 Water Charter; and (iii) validation, adoption and enable it to operate in a more months. Status: Approved 30May07. promotion. effective manner. First disbursement 27Aug07. OMVG (Gambia River Basin Organisation)

Objectives: Reinforce the OMVG’s institutional capacities to implement sustainable management

Results: The project will address the urgent needs for capacity

IWRM in the Kayanga Geba river basin Financing: AWF €1,585,000, OMVG member countries €218,000 (in-kind). Recipient: OMVG Implemented by: OMVG with member countries (Gambie, Guinée, Guinée Bissau, Sénégal) to be involved in the development of the project. Duration: 14 months Status Submitted for approval 23Dec08

of the shared water resources based on an IWRM approach. Activities: include i) development of an IWRM plan for the basin; ii) strengthen the capacity of the OMWG through staff training, rehabilitation and expansion of the hydrological observation network, and development of a cooperative framework for water resource management; and iii) support for the development of irrigation in the Guinea Bissau part of the Basin.

building to implement IWRM, improve information management, strengthen the development of economic activities though better cooperative management and allocation of the water resources, reduce negative environmental impacts in the basins, and improve the use of the water resources of the Geba river for agriculture.

VBA (Volta Basin Authority) Objective: Elaboration of a convention for the Strengthened co-operation and Support for the creation of the Volta creation of the Volta River Basin Authority. partnership among riparian Basin Authority. Activities: Organization of a series of national countries, and additional funding Financing: AWF €165,000. Gov. in- and regional consultative meetings and for accelerated development of the kind not quantified. Recipient: Gov. workshops; drafting and adoption of the basin facilitated. Burkina Faso. Implemented by: Volta convention by basin countries. Basin Technical Committee (VBTC) in consultation with the Volta Basin countries (Cote d’Ivoire, Benin, Burkina Faso, Ghana, Mali, Togo) Status: Approved 25Mar06. Completed Dec. 2006 (on schedule in 8 months).

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INVESTMENTS TO MEET WATER NEEDS

Water Supply and Sanitation Project Details Objectives, Main Activities Expected Results

Summary of Investment Projects (Water Supply, Sanitation and Productive Uses): Seven projects approved with five Objectives: Six projects concern meeting basic Benefits: All pilot projects are under implementation. Total AWF needs for WSS in peri-urban and rural areas. intended to be a learning ground grants €7,026,000 with one project co- Two projects are focused on multi-purpose uses for catalysing investments, with financed by FAO. Two projects of water, one on agriculture and one on schools. one having a project preparation implemented by NGOs, one by public Most projects involve introduction of innovative component to leverage €40 million utility, and four by government. FAO technologies, including rainwater/floodwater in investments. WSS projects (6) providing tech. assistance for one harvesting (4 projects), ecological sanitation (2), will directly benefit about 178,000 project. Duration of project and solar and wind energy (1). Activities: people. Agriculture projects (1) implementation ranges from 16 to 36 Typically include demonstration of technology, will increase productivity on months (average 23). training beneficiaries in its use and management, approx. 28,000 ha of farmland.

capacity building of support agencies, and preparation of national framework for scaling up

Ethiopia Objectives: Promote and pilot the use of solar Increased demand for solar/wind Utilisation of solar and wind energy for and wind energy for water pumping in rural technologies from end-users and rural water supply in Ethiopia. Financing: AWF €1,991,880, Gov.

areas of Ethiopia, and so initiate development of a long term investment in these technologies

other stakeholders with 130,000 people directly benefiting from

€173,800, with additional co-financing under the Universal Access Programme (UAP) access to water under the pilot to be sought. Recipient: Ministry of Water

where they are appropriate and most suitable. Activities include: (i) inception phase consisting

schemes. Water sector specialists systematically including solar and

Resources (MoWR). Implemented by: MoWR. Duration: 36 months.

of assessment, preparation and sensitisation; (ii) design and implementation in two phases including capacity building of local institutions

wind technological options among those to be considered where conditions allow. Local private

Status: Submitted for approval and communities, technology selection and sector supporting the supply and 31Dec.08. engineering design; implementation and after sales service of solar and

monitoring; and (iii) development of a wind pumping equipment, framework for incorporation of solar/wind into including supply of spare parts and the UAP including policy development, tools for maintenance. implementation, private sector support options, communication strategy and awareness creation.

Kenya Objectives: Provide water, sanitation and The project will contribute towards Kisumu District primary schools water hygiene education in six schools in Kenya by improved health and better and sanitation project. constructing innovative rainwater harvesting environment, and at the same time Financing: AWF: €228,606, and ecological sanitation facilities, and teaching contribute to meeting the water HORIZONT300 €7,200 (in-kind). children about proper water use, hygiene and supply and sanitation needs of the Recipient: HORIZONT3000, a sanitation practices. Activities include: (i) schools in a sustainable manner. It regional NGO based in Uganda. construct rainwater harvesting systems, EcoSan will directly benefit 3,300 pupils Implemented by: HORIZON T3000 in toilets and solid waste management systems in and teachers, and serve as a partnership with STIPA (Support for the 6 selected schools (i) train pupils, teachers demonstration for scaling up of the Tropical Initiatives in Poverty and parents in hygiene and environmental project model in nearby districts Alleviation), a national NGO. sanitation; (ii) increase the capacity of the and throughout the country. Duration 18 months. schools, local Governments, artisans and other Status: Approved 19Dec06 First stakeholders to manage and maintain the disbursement 21May07. facilities. Uganda Objectives: Build capacity of communities to Improved access to drinking water Roof catchments rainwater harvesting install and manage rainwater harvesting (RWH) using innovative RWH systems, and management. systems. Activities include: (i) increasing which will directly benefit 30 Financing: AWF: €449,830, local gov. awareness amongst beneficiaries and decision institutions (schools, health units, and communities €78,000 (in-kind). makers on the potential benefits of roof administration centres) and 720 Recipient: Network for Water and rainwater harvesting technologies for safe water households. The project is intended Sanitation, Uganda (NETWAS-U), a provision; (ii) installation of 750 small-scale to be a learning ground for national NGO. Implemented by: RWH and water storage facilities in three rainwater harvesting techniques, NETWAS-U in collaboration with local Districts; (iii) undertaking training programmes and it is expected that lessons government and NGOs/CBOs. that target effective management of the gained will be replicated in other Duration 24 months. seasonally limited rain water resource; and (iv) districts. Status: Approved 9May07. First promotion of improved sanitation and hygiene disbursement 30Jul07. among project beneficiaries.

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Uganda Implementation of an integrated project of water supply and sanitation services for the urban poor in Kagugube parish, Kampala Financing: AWF: €800,000, NWSC €65,575 (in-kind). Recipient: National Water and Sewerage Cooperation (NWSC). Implemented by: NWSC in collaboration with Kampala City Council. Duration 24 months. Status: Approved 21Dec06. First disbursement 24May07.

Objectives: Extend access to water supply and sanitation to the urban poor using innovative sanitation technologies, improved water distribution infrastructure and approaches. Activities include: (i) establish sanitation services tailored to the needs of the urban poor in the low-income community, with a special focus on Ecological Sanitation; (ii) expand and rehabilitate the water supply network; (iii) ensure access to water for the urban poor at the official tariffs by installing pre-paid stand pipes; and (ii) strengthen the NWSC Unit charged with developing pro-poor infrastructure and operational mechanisms.

The 14,000 residents of Kagugube Parish will have improved access to water and sanitation and be more aware of health hazards. Innovative off-site dry sanitation based on ecological sanitation principles will be introduced. The lessons learnt from the implementation of this pilot project will used for scaling up the provision of improved water supply and sanitation services to the urban poor in Kampala and other major towns in Uganda.

Water for Productive Uses - Agriculture and Food Security Botswana Objectives: Improve water control systems on an Increased cereal production as a Development of improved water control area of 27,574 ha to ameliorate water logged result of improved water control and management systems for conditions, and prepare investment projects for infrastructure and agricultural Pandamatenga agricultural production. funding. Activities include specific project water management. Triggering of Financing: AWF: €1,169,000. Gov. in- preparatory and water management activities investment in agricultural kind not quantified. Recipient and related to water drainage systems, water control production infrastructure executing agency: Ministry of and management initiatives and ecosystem development from the Government Agriculture. Duration 24 months. conservation, including preparation or updating through access to a lending of Status: Approved 12June07. First of EIAs. about €40 million from the AfDB disbursement 6Dec07. and other potential sources. Djibouti Objectives: Piloting innovative run-off water Improved access to water for multi-Water harvesting project for water harvesting technologies for drinking water, purpose uses by the rural nomad supply and agriculture in rural districts irrigation and livestock uses in two rural populations (2,400); better of the Republic of Djibouti. districts. Activities include: (i) construction of knowledge of the available water Financing: AWF: €1,937,000 Gov. hydraulic structures including 14 underground resources in the project area; and €138,600 (in-kind), beneficiaries storage tanks, surface reservoirs and diversion increased investments through €70,560 (in-kind). Recipient: Gov. of works, (ii) improved knowledge of the scaling-up of the new technologies Djibouti. Implemented by the Dept. of hydrogeologic conditions in the project zone; in water harvesting at the country Hydraulic Resources of the Agriculture (iii) capacity building of government water level. Ministry, in partnership with IFAD. resource engineering departments; and (iv) Duration 20 months. Status: Approved sector assessment and preparation of bankable 29Jan08. First disbursement 25Sept.08 projects for funding. Rwanda Objectives: Introduction of rainwater harvesting Improved living conditions for Pilot project for the introduction of (RWH) techniques for agriculture and livestock about 21,200 rural beneficiaries water harvesting techniques in use, as well as to supply drinking water for through increased agricultural Bugesera. human consumption, in a rural district of production and improved access to Financing: AWF: €450,000, FAO Rwanda. Activities relate to: (i) introduction of water for human and livestock €178,690, Gov. €68,440 and appropriate low cost systems for the collection consumption. The results of this beneficiaries €8,090(in-kind). of rainwater for irrigation and drinking water; pilot scheme will also make it Recipient: Government of Rwanda. (ii) increase productivity of the land through possible to popularize and scale up Implemented by: Ministry of Lands proper management and sustainable the techniques for RWH and Environment with technical conservation; and (iii) reinforce the capacities of throughout areas in the country assistance of FAO. Duration 16 local farmers and support agencies to implement which frequently suffer from the months. Status: Approved 22Dec06. and manage techniques for RWH and protection effects of drought. First disbursement 28Sept07. of natural resources.

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Project/Programme Preparation Project Details Objectives, Main Activities Expected Results

Summary of Project/Programme Preparation: 14 projects approved with 5 under Objectives: 8 projects concern preparation of All project/programme preparation implementation. Total AWF grants urban/town water supply and sanitation; 4 rural activities are aimed at catalysing €13,467,000. 8 projects implemented WSS; and 2 water for agriculture projects. funding from donors, public and by government, 2 by public utility, 2 by Activities: Typically include situation private sectors. Most projects will municipalities and 1 by a Lake Basin assessments; undertaking inventory of WSS result in strengthened capacity for Organisation. Duration of project systems and water resources; feasibility and sector planning and implementation ranges from 6 to 26 design studies; preparation of investment implementation of identified months (average 12 months). plans/programme and priority projects for infrastructure investments.

funding; preparation of financing strategies and resource mobilisation; demonstration of innovative technologies; and capacity building of sector institutions (government agencies, municipalities, utilities, communities, etc.).

Burkina Faso Objectives: Contribute to the improvement of The project will prepare the Feasibility and design study of storm public health and hygiene conditions for the technical, financial, and water drainage and solid waste underprivileged social layers of Ouagadougou, institutional basis for sustainable management systems in Ouagadougou. and safeguarding of the environment. sanitary and drainage infrastructure Financing: AWF: €642,000, Gov, €90,000 (in-kind). Recipient: Ministry of Finance. Implemented by:

Infrastructure investments consist of: extension of the city sanitary landfill, closure and removal of all illegal garbage dumps, rehabilitation of the

development under an overall planning framework. It will also create a basis for implementation

Ouagadougou City Authorities. main storm water channel, and upgrading road of the identified infrastructure Duration 20 months. Status: Approved 29Apr08. First disbursement 8Nov08.

networks and associated storm water drainage systems; Activities include: (i) feasibility and

investments in Ouagadougou at an anticipated value of about €25

design studies, environmental impact assessment million, and it will involve and tender documents; (ii) improving capacity of identification of prospective the city authorities to govern and finance the financial sources and arrange a infrastructure O&M by strengthening technical, donor meeting to mobilise the managerial, and public communication required funding. capabilities; and (iii) establishment of a credit mechanism for independent service providers.

Cameroon Objectives: Prepare an inventory of rural water As a result of the study, the Inventory of rural water supply and supply and sanitation facilities and water Government will have a better sanitation infrastructures. Financing: AWF: €469,486. Gov. in-kind not quantified. Recipient:

resources in the country to support the development of the RWSS programme for Cameroon up to 2015. Activities include: (i)

knowledge of the existing infrastructure and water resources of the country to support the

Government of Cameroon. Implemented by: Department of Water

undertaking inventory of WSS systems and water resources in the country, including

development of the rural water and sanitation sector. In particular, the

and Hydrology (DHH) of the Ministry of Energy and Water. Study duration 6 months. Status: Approved 22Dec06.

coverage and service levels; (ii) development of a database and strengthening of the institutional capacity to manage and use the database for

inventory will be used as baseline to establish the future investment needs in the WSS sector

First disbursement 27Aug07. planning purposes; (iv) preparation of an institutional, technical, financial, environmental and socio-economic analysis.

Central African Republic Objectives: Prepare a programme and define WSS programme available for Support to a water supply and projects which will contribute to the sustainable improving access to water supply sanitation study and priority investment satisfaction of needs for drinking water and and sanitation for 525,000 project preparation for the 16 district sanitation services for the populations of the 16 inhabitants, along with a priority capitals of RCA. district capitals, including improvements in investment programme for 6 cities Financing: AWF: €1,438,000. Gov. in- surface water drainage, solid waste disposal and (250,000 inhabitants) presently kind not quantified. Recipient: grey water reuse. Activities include: (i) being served by the utility, leading Government of the Central African preparation of feasibility studies for 16 cities; to the mobilisation of necessary Republic. Implemented by the Director (ii) preliminary and detailed work plans for the resources. General of Water of the Ministry of supply of drinking water and sanitation services Mines, Energy and Water. Study for 6 cities served by the public utility, including duration 12 months. Status Approved environmental and social impact assessment, 9Aug07. First disbursement 22Oct07. and (iii) resource mobilisation including

organization of a round-table of donors.

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Chad Objectives: Undertake a comprehensive The Government will have a better Institutional support for the rural water inventory of rural water supply and sanitation knowledge of the existing WSS supply and sanitation inventory. facilities in the country to support the updating infrastructure and water resources Financing: AWF: €490,000. Gov. in- and implementation of the RWSS programme of the country for use in planning kind not quantified. Recipient: for Chad. Activities include: (i) undertaking and implementing the national Government of Chad. inventory of WSS systems and water resources rural water supply and sanitation Implemented by: Dept. of Hydraulics in the country; (ii) development of a database programme, and to prepare of the Ministry of Water. Study and training in its use; and (iii) reinforcing the investment plans to attract duration 6 months. Status: Approved institutional capacity to use the database for financing from potential donors. 27Dec07 but not yet grant effective. planning purposes. Congo (Brazzaville) Objectives: Carry out an institutional and Improved institutional and Support to a water supply and technical diagnostic and prepare priority works technical framework of the sector sanitation study and priority investment for water supply, sanitation, storm water leading to financing of priority project preparation in Brazzaville and drainage and solid wastes in Brazzaville and projects. Expected medium term Pointe Noire. Pointe Noire to meet MDG 2015 and African results for the two cities include: Financing: AWF: €1,418,235, Gov. Water Vision 2025 targets. Activities include: (i) meeting of WSS needs; Congo €71,000 (in-kind). Recipient: assessment of existing situation; (ii) feasibility improvement in the management Gov. of Congo. Implemented study to assess various options; (iii) detailed of the water supply and sewerage by Ministry of Energy and Water. study and preparation of selected alternatives, systems; reduction of flooding Study duration 10 months. with environmental impact analysis and priority risks; improvements in solid waster Status: Approved 11July07. First investment plan; (iv) resource mobilisation; and disposal; and reduced incidence of disbursement 3Dec07. (v) capacity building of sector institutions. water borne diseases. Egypt Comprehensive Study and Project

Objectives: Seek technically feasible and economically and socially viable solutions for

Investments of approximately €120 million are expected to be made by

Preparation for the Rehabilitation of efficient water control and system management the AfDB for the rehabilitation and the Nubaria and Ismailia Canals. Financing: AWF: €1,900,090, Gov.

to reduce water shortages and water-logging in the two canal systems. Activities include: (i)

upgrading of 244 km of canals, along with additional amounts

Egypt in-kind contributions not quantified. Recipient: Gov. of Egypt. Implemented by: Ministry of Water

inventory of the major hydraulic works; (ii) production of pre-feasibility study reports for canal improvements; (iii) preparation of

from other sources. As a result, an increased volume of water and area of irrigable land will be made

Resources and Irrigation (MWRI). Study duration 26 months. Status:

technical proposals for major infrastructure investments; (iv) semi-detailed designs and

available, along with solutions for efficient water control and system

Approved 18Oct07. First disbursement contractual documents for canal improvements, management. This will directly 6Nov08. including full environmental and social impact benefit an estimated 1.3 million

assessment and management plan; and (v) families and 2000 industries in the mobilisation of financial resources. two canal command areas.

Lake Victoria Basin Commission Objectives: Identify an integrated package of The 15 project towns/centers are (LVBC) interventions for the long term development of expected to meet MDG targets for Water and sanitation initiative: WSS and environmental management services water supply, sanitation and health Preparation of investment plan for 15 in 15 high priority secondary towns/centres, through execution of immediate centres. including water supply and sanitation works and provision of adequate Financing: AWF: €994,000, EAC improvements, solid waste management, and funding for longer term €4,500 (in-kind). Recipient: East Africa drainage improvements in key areas. Activities: improvements. As well, lake water Community (EAC) Secretariat. (i) needs assessment and impact appraisal of quality will be improved, Implemented by LVBC as executing options; (ii) formulation and validation of an contributing to the management of agency in collaboration with UN- investment plan; (ii) preparation of detailed its sensitive ecology. Habitant. Study duration 7 months. designs and tender documents for immediate Status: Approved 2Mar08. Grant works; (iv) preparation of implementation and effective 24Nov08. financing plan; and (v) capacity building. Lesotho Objectives: Assist sector agencies to better The project will catalyse an Development of planning framework manage the development and operation of WSS increase in the flow of funding to for rural water and sanitation. facilities based on a sound strategic investment the sector based on improved Financing: AWF: €400,000, Gov. Lesotho €94,194 (in-kind). Recipient:

plan, and a comprehensive underlying database and planning framework. Activities include: (i)

donor confidences and a solidly founded investment programme.

Dept. of Rural Water Supply and Sanitation (DRWS). Implemented by

preparation of geo-referenced database of community water and sanitation conditions; (ii)

Sector agencies will have the increased capacity to make use of

DRWS in coordination with local government authorities. Study duration

development of cost estimating model based on local unit costs; and (iii) strengthening capacity

these funds to plan and implement water and sanitation projects based

6 months. Status: Approved 11May07. of communities and support agencies to use the on detailed knowledge of First disbursement 19Nov08. planning framework; and (iv) preparation of community level needs, and costs

investment plans for the rural WSS sector aimed of maintenance and expansion. at meeting the MDGs by 2015 and the National Vision 2020.

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Liberia Objectives: Develop plans for the rehabilitation The study addresses the urgent Monrovia expansion and rehabilitation and expansion of water supply and sanitation need for reliable and affordable of three county capitals water supply systems to meet 2025 demands in Monrovia and WSS service provision to the 1.75 and sanitation study. Financing: AWF: €1,520,000, Gov. Liberia €80,000 (in-kind). Recipient: Gov of Liberia, Ministry of Finance. Implemented by Liberia Water and Sewerage Corporation (LWSC). Duration 15 months. Status: Approved 22Jan08. First disbursement 29Oct08.

three county capitals (Kakata, Zwedru and Buchanan), including preparation of economically and technically sound priority projects to facilitate the process of mobilising the necessary investments. Activities consist of: (i) feasibility study; (ii) detailed designs and preparation of tender documents; and (iii) resource mobilization efforts.

million people living in Monrovia and three county towns who are largely without access to WSS services due damages suffered to water infrastructure as a result of the civil war. As a result, coverage is planned to increase from the current 22% with access to safe water and 15% basic sanitation, to 45% by year 2010 and 100% by year 2025 for both WSS.

Mozambique Preparation of the national rural water supply and sanitation programme. Financing: AWF: €486,223. Gov. in-kind not quantified. Recipient: National

Objectives: Review the current implementation of RWSS services and prepare a comprehensive and well coordinated programme for immediate implementation throughout the country. Activities include: (i) undertaking an assessment

The study constitutes a major component in the Government’s efforts to improve the rural water supply and sanitation situation and meet national and MDG targets.

Directorate of Water (DNA) Implemented by the DNA. Duration 9 months. Status: Approved 21Dec06.

of the current situation; (ii) developing RWSS services demand assessment and investment forecasts; (iii) formulation of institutional

The preparation of a National RWSS Programme will promote common approaches and

First disbursement 20March08 (DP arrangements and legal frameworks;(iv) harmonized development Method) followed by first tranche designing a capacity building strategy; (v) assistance. The study will also disbursement 17Jun08. preparing the country RWSS investment contribute towards institutional

program and priority action plan; and (vi) strengthening and capacity establishing a financial strategy for the sector. building efforts, and will assist the

Government to catalyse the necessary resources.

Mozambique Integrated study and project preparation for COFAMOSA irrigation project. Financing: AWF: €1,178,367, PETROMOC €73,774, Gov. Mozambique €24,260 (in-kind). Recipient: Gov. of Mozambique. Implemented by Ministry of Agriculture through the National Directorate of Hydraulics. Partners include farmers groups, private sugar companies, PETROMOC. Duration 13 months. Status: Approved 22Nov07. Not grant effective.

Objectives: Undertake feasibility study and project preparation to enable the mobilization of funds for the development of 10,000 ha irrigated farmland. Sugar cane has been proposed in the pre-feasibility study as the main crop to be grown in the area to supply cane for sugar/ethanol production. Activities include: (i) analysis of technical, institutional, economic, social, environmental and financial aspects of the project; (ii) preparation of semi-detailed designs and bill of quantities; (iii) assessment of Public-Private-Partnership models between the GoM, independent farmers, sugar companies, and PETROMOC (national petroleum company); and (iv) organization of a financial resources mobilization workshop.

The study will result in the catalysing of investments for the development of 10,000 ha of irrigated farm land under a PPP arrangement. As well, utilization of water resources and water infrastructure will be optimized, and agricultural productivity will be increased through the production of high value crops under irrigation.

Senegal Ziguinchor sanitation master plan

Objectives: Improve the sanitation and drainage situation in different districts of Zinguinchor.

The project has a high strategic importance as it is based on an

study. Financing: AWF: €935,000, ONAS €54,560 (in-kind). Recipient: Gov. of Senegal. Implemented by ONAS

Activities include: (i) preparation of a Master Plan including the development of an overall investment plan for sanitation, wastewater treatment and storm water drainage up to 2025;

innovative approach to urban sanitation using ecological on-site solutions combined with a limited sewerage network and wastewater

(National Office of Sanitation) in (ii) feasibility studies and designs for priority treatment. Potential cost savings collaboration with the Ziguinchor City projects; (iii) promotion and demonstration of using the optimized on-site Council. Duration 21 months. Status: innovative on-site sanitation technologies; and sanitation technologies are very Approved 20Dec06. First disbursement (iv) identification and mobilisation of funding substantial. The project will also 27Sept07. partners. help resolve the environment

issues generated by poor wastewater management, reduce the severity of flooding caused by heavy rains, and mobilize funding for planned investments.

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Seychelles Objectives: The project is primarily intended to The overall goal is to mobilise Water supply development plan 2008 formulate a Water Supply Development Plan for adequate financing to ensure the 2030. the three main islands of the Seychelles in order availability of adequate and Financing: AWF: €955,000, Gov. to attract the necessary water project affordable water up to the year Seychelles €207,900 (cash and in-kind). investments to meet demands up to the year 2030 to meet needs of population, Recipient: Gov. of Seychelles. 2030. Activities: (i) Preparation of Water Supply industry and tourism. The Implemented by the Water and Development Plan and a priority investment implementation of the investment Sewerage Division of the Public programme to 2015. It will also (ii) identify and projects identified in the Water Utilities Corporation. Duration 17 implement measures to reduce overall water Supply Development Plan will months. Status: Approved 3Apr08. demand, and (iii) improve performance and have a positive impact on the Grant effective 24Oct08. service delivery of the Public Utility indigenous population and the

Corporation. economy of the Seychelles. Tanzania Objectives: Endow the Arusha Municipal The preparation of a Arusha Strategic Sanitation Plan Council (AMC) and its partners involved in the comprehensive and coherent Preparation. provision of sanitations services with a broad set strategic sanitation plan will lead to Financing: AWF: €654,000, AMC of strategies and a detailed implementation plan increased sanitation and urban €23,400 (in-kind). Recipient: Arusha to improve the functioning of services for environmental management Municipal Council (AMC) sanitation, solid waste, storm water drainage, investments which adequately Implemented by the AMC in and drinking water supply. Activities include: (i) address the demands of the collaboration with the Arusha Urban development of a Strategic Framework inhabitants of the municipality. Water and Sewerage Authority proposing a range of preferred service options Most significantly it will provide (AUWSA), in collaboration with UN- and approaches; (ii) pilot works to demonstrate the AMC and AUWSA a basis to Habitat and Danida. Duration 12 the variety of available technologies and to seek funding from external and months. Status: Approved 22Nov07. generate demand; and (iii) an implementation internal sources. Grant effective 20Nov08. plan and investment programme.

IMPROVING WATER KNOWLEDGE

Water Resources Information and Knowledge Management Project Details Objectives, Main Activities Expected Results

Summary of Water Resources Information Management 8 projects approved with 5 under Objectives: All projects basically concern All projects result in improved implementation. Total AWF grants improving information/knowledge of national information/knowledge for better €9,234,000. 5 projects implemented by and transboundary water resources. Activities: planning and management of regional organisations, and 2 by Typically include: establishment or national and transboundary water government. All projects involve many strengthening of hydrological observation resources. As well, all projects aim partners in various roles and capacities. systems; strengthening data generation and at strengthening institutional Duration of project implementation management capabilities; capacity building of capacity for information range from 12 to 30 months (average sector institutions; studies on various social- management. 19 months). economic, gender, environmental, etc issues;

support to research activities; reinforcement of partnerships and cooperation for transboundary water information management.

CICOS (International Commission of Congo-Oubanguie-Sangha basin) Strengthening the information and knowledge capacity of CICOS for the water resources management of the Congo River Basin. Financing: AWF: €455,000, CICOS €50,000 (in-kind). Recipient: CICOS. Implemented by: CICOS Secretariat in collaboration with GTZ, SADC, CICOS Basin Countries (Cameroon, Central African Republic, DRC, Angola, Burundi, Tanzania, Rwanda and Zambia). Duration 12 months. Status: Approved 17May07. First disbursement 24Aug.07.

Objectives: Improve the water management of the Congo River Basin by strengthening the database , information and knowledge about the Congo River, and reinforcing the capacities of CICOS for the collection and management of hydrological data and water resources information. Activities: (i) Development of a centralised system under CICOS for the collection, evaluation and management of the data and hydrological information; (ii) Establishment of a hydrological observation system through the rehabilitation and installation of the HYCOS stations and training of hydrological services staff; and (iii) Preparation of a comprehensive study to gather reliable socio-economic and gender baseline

Contribute to the sustainable management of the Congo basin though improved knowledge on the water resources of the Congo basin, with data and information necessary for the planning and development of the water resources of the river basin made available. The project will also provide much needed inputs into the development of the AWF funded project Strategic Action Plan for the Congo basin (see TWRM section above).

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information, as well as on the biodiversity and aquatic resources.

Ethiopia Objectives: Support Ethiopia’s efforts to As a result of the project, Ethiopia Support to the development of water establish Water Information and Knowledge will have a much better capacity to information and knowledge management systems to provide reliable and manage its water resources through management systems. Financing: AWF: €500,000, Gov.

timely qualitative and quantitative data and information for water sector planning and

a better coordinated information and knowledge environment. The

Ethiopia €236,000 (cash and in-kind). Recipient: Ministry of Water Resources (MoWR). Implemented by:

management. Activities: (i) support to the establishment of National water information system; (ii) strengthen water quality data

timely availability of reliable information will improve decision making on water issues, enhance

MoWR with potential partners generation and management; (iii) reinforce planning and design of water UNICEF, UNECA, WSP. water research and knowledge management; (iv) sector activities, and help ensure Duration 18 months. Status: Approved support the establishment of groundwater effective implementation of the 2Oct06. First disbursement 25June07. database; and (v) upgrade and expand ICT Ethiopian IWRM Plan.

infrastructure capacity. IGAD (Inter Governmental Objectives: Strengthen the regional capacity to IGAD and its member countries Authority on Development) provide hydrological data and information will have an increased knowledge Mapping, assessment and management services, and to develop cooperation of, and enhanced capacity to of transboundary water resources in mechanisms for water resources management manage, their trans-boundary water the IGAD sub-region. amongst IGAD member countries. Activities: (i) resources, which will serve as a Financing: AWF: €1,831,600, IGAD Assessment of data, information and knowledge basis for equitable sharing of water €127,400 (cash and in-kind). Recipient: of the transboundary water resources; (ii) among riparian countries. It will IGAD. Socio-economic and environmental analysis; enable the IGAD countries to Implemented by: OSS (Sahara and (iii) Preparation of digitalized thematic maps produce reliable and easily Sahel Observatory), in collaboration and GIS; and (iv): National and Sub Regional accessible information respectively with WMO, IGAD Basin Countries capacity building to implement and operate an for each transboundary water (Cameroon, Central African Republic integrated sub-regional transboundary water system; prioritise and plan joint of Cong, Democratic Republic of resources management process. development of shared Congo, Angola, Burundi, Tanzania, transboundary aquifer basins; and Rwanda and Zambia). Duration 24 initiate joint arrangements for months. implementation of transboundary Status: Approved 9Jan07. First water development activities under disbursement 6Sept.07. a shared vision. NBA (Niger Basin Authority) Objectives: Promote more effective water A system in place that provides Support for Niger Basin HYCOS development within the Niger Basin by the NBA reliable and easily accessible Project. and the member states, through increased information on water resources of Financing: AWF: €1,200,202, NBA availability of good quality hydrological data the basin that will serve as a basis €230,500 (in-kind), NBA countries and information, and improved national/regional for equitable sharing of water €730,000 (in-kind), Recipient: NBA. capacity to make use of this data for water among riparian countries, sectors Implemented by: NBA and the NHS of resources planning. Activities include: and users. The project will also each member country (Benin, Burkina, enhancing the hydrological network through the enable NBA and the National Cameroon, Côte d’Ivoire, Guinea, upgrading of the Niger HYCOS; strengthening Hydrological Services (NHS) of Mali, Niger, Nigeria, and Chad), in the National Hydrological Services (NHS); the member states to collectively partnerships with WMO, AFD, IRD, building the capacity of the NBA; and provide hydrological information AGRHYMET. Duration 24 months. strengthening of hydrological forecasting and forecasting services that will Status: Approved 6Oct06. First services. contribute to the achievement of disbursement 23Mar.07. the Shared Water Vision at river

basin, national and local levels. OSS (Sahara and Sahel Observatory) Objectives: Create an information and The project will provide valuable Geo-Aquifer: North-Western Sahara knowledge base to support sustainable information and support to ensure aquifer system knowledge and water transboundary groundwater resources the equitable and optimal use of resources management improvement management of the SASS aquifer at national and the available water resources to using satellite imagery. sub-regional level. meet both water supply and Financing: AWF: €487,800, OSS Activities will enhance information and agricultural needs, and the €76,500 (in-kind). Recipient: Sahara knowledge of the aquifer through the use of preparation of joint programs for and Sahel Observatory (OSS). satellite data and digital cartography; develop a the mutually profitable Implemented by: OSS with support database and decisions support tools; build the development of this important from the European Space Agency capacity of the ministries and agencies in charge shared groundwater resource. It (ESA). Partners: Algeria, Tunisia, of water, environment and agriculture to use will build country capacity in the Libya. Duration 18 months. these geo-scientific data management techniques use of satellite data; equip them Status: Approved 26Dec06. First and tools; support research and studies; and with tools to better assess water disbursement 12June07. reinforce partnership and cooperation among the uses; and promote dialogue

three countries. between the countries concerned A-23


on options for the development of their water resources.

Togo Objective: Develop and operationalise a national The project will systematise and Development of an integrated water water information system. rationalise the management of information system. Activities: (i) improve and extend water data and various aspects of the water Financing: AWF €1,569,000, Gov. information facilities of the Ministry of Water information chain, as envisaged in €182,000. Resources and allied organisations; (ii) maintain the national IWRM plan. It will Recipient: Ministry of Finance. and upgrade the existing hydrological and contribute to more efficient water Implemented by: Water and Sanitation climatic observation networks; (iii) build resources planning, management Director General (DGEA) of the capacity of staff for water data and information and development through the Ministry of Water, Energy and Mines management, and (iv) improve coordination of availability of reliable data and Duration: 30 months water sector information management. information. Status: Screened 27Aug.08. Submitted for approval 29Dec.08. VBA (Volta Basin Authority) Objective: Enable VBA and the National Upgraded and consolidated basin-Support to the VBA for implementation Hydrologic Services (NHS) of the member wide hydrological observation of the Volta-HYCOS. states to deliver appropriate hydrological network and information system Financing: AWF €1,200,000, FFEM information services to users. providing easily accessible (French Global Environment Fund) Activities: (i) Upgrading of the hydrometric information for all users thus €1,000,000, IRD, 2iE, WMO and the 6 network; (ii) Development of regional contributing to better regional riparian countries €1,370,000 (in-kind) hydrological information system for the Volta cooperation, and more effective Recipient: VBA. Implemented by: Basin; (iii) Strengthening each NHS; and (iv) water resources planning and VBA. Duration: 22 months. Building the capacity of the Volta Basin development. Status Submitted for approval 31Dec08 Authority.

Knowledge Generation and Dissemination Project Details Objectives, Main Activities Expected Results

Burkina Faso Objectives: Support to enable African students to Education of future water sector Strengthening water and environmental gain access to high quality education at an specialists and leaders at a well engineering capacity in fragile states. African based university and water sector centre recognised pan-African institution, Financing: AWF €1,990,000, 2iE of excellence. leading to increase capacity in the €220,000 (in-kind), partner countries Activities: Selection and sponsorship of 231 water sector. An increase in the €490,000 (cash). Recipient and students from fragile states and post-conflict numbers of female engineering Implementating Agency: Institut countries to enable them to obtain an students from 20% to 30% over the International d’Ingénierie de l’Eau et de internationally recognized degree in water and project period. l’Environnement (2iE) Duration: 66 environmental engineering. months. Status: Approved 29Sept08. Not grant effective.

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APPENDIX A.2: PROJECT RELATED MISSIONS UNDERTAKEN IN 2008Type of Mission Country

No. of Pers. Mission Dates

Project / Activity Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Identification

Southern Africa Projects Malawi / Zambia 4 12-23

Eastern Africa Projects Rwanda/ Burundi 2 14-22

Support for SADC Transboundary River Basin Activities

Lesotho/ Botswana/

South Africa/ Namibia

3 08-14

Western Africa Projects Ghana 2 28--01 Appraisal (including pre-Appraisals and Update) Support to African Institute for Science and Technology Burkina Faso 24-28

Ouagadougou storm-water and solid waste management project. Burkina Faso 24-28

NBA Water Charter Niger 1 28--06 CEDARE - Water MDG's M&E Programme in North Africa Egypt 2 15-17

National IWRM Plan Madagascar 1 21--02 OMVG - Development of IWRM Plan for the Kayanga Geba Basin

Gambia / Senegal 2 05-12

Artificial Recharge of Haouz Water Table Morocco 1 07-17

Kibuon and Tende IWRM Project Kenya 11-19 TOGO-Establishment of an Integrated Water Resources Information System TOGO 2 31- -12

Launching Water and Sanitation Study and Investment Preparation in 16 District Capitals. CAR 1 11-12

Brazzaville/Pointe Noire Project Congo Brazzaville 1 10-12

Inventory of RWSS Infrastructure in Rural Areas Cameroun 1 22-31

Lake Chad Basin Water Charter Chad 1 26-31

Implementation of IWRM Plan Senegal 2 02-09 Support to Water Harvesting for Water Supply and and Sanitation Programme Djibouti 14-20

Monrovia Expansion and Rehabilitation of 3 Country Capitals WSS Liberia 15-20

Supervision Kisumu District Primary Schools WatSan; Kenya 2/2 18-23

IWSS for Urban Poor in Kagugube Parish; Uganda 2/2 24-29

Roof Catchment Rainwater Harvesting and Management Uganda 3/2 1-5

Development of Water Information and Knowledge Ethiopia 2 10-14

Strengthening Information and Knowledge Capacity of CICOS / Preparation of the IWRM Strategic Action Plan for the Congo Basin

DRC 2 19-25

Integrated WSS Services for Urban Poor / Roof Catchment Rainwater Harvesting and Management / Kisumu District Primary Schools WatSan

Uganda 1 6-12 24-30

Ziguinchor Sanitation Master Plan Senegal 2 02-09

GEO-AQUIFER Project Tunisia 3 5-6 Support to WatSan and Priority Investment Preparation in 16 District Capitals CAR 1 02-11

Support to Formulation of IWRM Plan Burundi 2 18-23

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Niger Hycos Niger 1 23-24 Study of the Rehabilitation and Extension of Water Supply and Sanitation Brazzaville/Pointe Noire

Congo Brazzaville 1 27-31 19-22

Pilot Project for the Introduction of Rainwater Harvesting in Bugesera District Rwanda 2 28--05

Development of IWRM Namibia 2 15-16 Improved Water Control and Management for Pandamatenga Botswana 2 17-19

Implementation of IWRM Inventory/ Support to the Development of ANBO

Senegal / ANBO 2 11-12

Preparation of National RWSS Programme / Integrated Study and Project Preparation for COFAMOSA Irrigation Study (represented by OWAS.2)

Mozambique 3 18-19

IGAD – Mapping Assessment and Management of Transboundary Water Resources in IGAD

Ethiopia 2 24-27

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APPENDIX A.3: STATUS OF AUDITING OF AWF PROJECTS AS AT 31ST DEC. 2008

Beneficiary Country or

Organization Project Name

Grant Amount Euros

Audit Firm Contract Amount

Interim (First) Audit Status

Western Africa

NBA Support for Niger HYCOS 1,200,202 SEC DIARRA

Mali

First audit covering the period January to December 2007 was undertaken and completed in June 2008. The shortcomings identified have been communicated to NBA and the Auditor for rectification.

Niger Preparation of IWRM Master Plan 660,775 SEC DIARRA

Mali

Contract signed. However, the level of expenditure on the project does not as yet justify an interim audit. In fact the project is not yet effective, and it is considered to be one of AWF’s two projects currently at risk.

Ziguinchor MAECO-SARL Senegal Sanitation Master 935,000 Mali E 5,400 Contract signed. However, the level

Plan of expenditure, on the projects, do not as yet justify any interim audit. ANBO African Network of

Basin Organizations 439,000 MAECO-SARL Mali E 5,400

Eastern Africa

Ethiopia

Development of Water Information and Knowledge Systems

500,000 Tadesse Woldogabriel, Ethiopia

Birr 92,587

Instructions have been given for execution of the Interim Audit covering the period from inception of the project to 31 December 2008.

Burundi Formulation of 480,000 E 8,672.14 IWRM Plan

Kenya

Uganda

Uganda

Kisumu District Primary Schools WSS Integrated WSS for Kagugube Parish Roof Catchment Rain Water

228,606

800,000

449,830

Development Options, Uganda (all 4 projects)

E 3,831.85

E 3,399.02

E 2,511.39

Interim Audits have been conducted on all four projects. Reports are expected to be submitted by the Auditor in January 2009.

Harvesting Mapping, Contract signed on 03 January 2008.

IGAD Assessment of IGAD Transboundary Water

1,831,600 FIDUNION, Tunisia E 9,500

Awaiting sufficient project execution to warrant interim audit. To be conducted during first quarter of 2009.

Southern Africa

Namibia IWRM Plan 498,200 Kobla Kwashie & Assoc., Swaziland

E 20,000

Instructions have been given for execution of the Interim Audit covering the period from inception of the project to 31 December 2008.

Northern Africa

OSS Geo-Acquifer K & WR Mgt. 487,800 FIDUNION,

Tunisia E 5,500

The Interim Audit has been completed. The report has been forwarded to the Bank’s Financial Management Department for its comments.

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ANNEX B: ORGANISATIONAL STATUS

B.1 This section reports on the various organisational activities to ensure the effective operations of the Facility. These activities, requiring considerable financial and human resources, include strengthening partnerships and providing operational management and support.

1 OUTREACH AND PARTNERSHIPS B1.1 AWF staff participated in several consultative workshops, conferences and meetings to foster co-operation, harmonize activities, and consolidate partnerships. The complete list is shown in Appendix B.1, with descriptions of some of the principal ones as follows:

• The Africa Water Week, held from 26th to 28th March 2008 in Tunis. AWF staff played a leading role in Bank preparations for this AWW, including chairing the Bank Task Force responsible for organising the event, and task managing the technical committee responsible for preparing the agenda and calling for papers. Many AWF staff also provided logistical and administrative support to the event. The Facility also made a presentation during the parallel sessions on ‘AWF current and envisaged role in agriculture water development’. The Facility distributed the newly published AWF documentation (Operational Strategy, 2008-2010 Operational Program as well as Achievements and Resource Requirements) to attendees.

• Informal dialogue on Africa’s Water Agenda 2008 and International support for AMCOW: The meeting was organized on 10 -11 March, 2008 by the German Federal Ministry for Economic Cooperation and Development (BMZ) in cooperation with the Technical Advisory Committee of the African Ministers’ Council on Water (AMCOW-TAC) and the Africa Working Group of the European Water Initiative (EUWI-AWG). The meeting was called to enable dialogue on possible key political messages of the African Water Agenda. Progress was made on the identification of an action-oriented water and sanitation agenda, and exploration of ways to support and strengthen AMCOW in its political role as voice and advocate for the water sector in Africa. A follow-up consultation was also held at the margins of the water week

• Annual Meeting of the Infrastructure Consortium for Africa (ICA) in Tokyo 12-14 Mars 2008. An AWF staff member gave a presentation at the session on Transboundary water Resources Management entitled “Up-scaling Water Infrastructure Investments to Enhance Water Security - Water Governance, a key to Cross-border Infrastructure Development”. Discussions were held between African stakeholders and funding agencies on how to fast-track cross-border infrastructure investments, and informal contacts were made with representatives of various donors during the course of the events.

• NEPAD-IPPF Oversight Committee meeting, in Libreville, Gabon, 9-10 June. Discussions were held on the possibilities for collaboration between IPPF and AWF, supported by a presentation entitled: “Up-scaling Water Infra-Structure Investments to Enhance Water Security. Emerging Cooperation between IPPF and AWF”. As a result a transboundary project, the Songwe River Basin Development, is under consideration for co-financing between IPPF and AWF.

• 5th World Water Forum, to be held in Istanbul in March 2009: AMCOW requested the AfDB to once again play a leading role in ensuring effective African participation, as was the case for the 4th WWF. To fulfil this mandate, a senior AWF staff member

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was assigned to support the process. The AWF participated in a kick-off Conference held in Istanbul, 19 and 20th March 2007, which resulted in the conceptualisation of the Forum themes and the regional agenda. Following this, the AfDB/AWF hosted a kick-off meeting for the African participation in the 5th WWW in Tunis on the 8th-9th

August.

• AU summit held in Egypt from 30 June to 1 July. The AWF was involved in preparations for the summit, supported Bank inputs including the President’s address on Financing Water Infrastructure in Africa, and provided overall technical support to the organisers.

• Stockholm water week 17-22 August 2008. The Coordinator, on behalf of the AfDB Vice President, presented “Water Security in Africa - Key challenges and actions: Perspectives from the First African Water Week”. In addition to participation in several workshops and seminars, informal meetings were held with (i) current and potential donors, (ii) other partners interested in collaboration and co-funding, and (iii) organisations who had proposals for potential projects that may be submitted. The overall goal of the Facility’s attendance was to increase the visibility of the AWF in the international community.

• Expo Zaragoza 2008, 14-18 July, Spain. The mission participated in the EU seminar on Water and Sanitation in External Aid, and the conference segment on WSS Services, where delegates recognised and endorsed the AWF approach to sustainable resource development which targets a wide range of recipients.

• Sensitisation workshop on AWF, held in Malawi, 7-14 Dec. The workshop, held at the request of the AfDB Malawi Field Office and the Ministry of Irrigation and Water Development (MIWD), was aimed at creating awareness of the opportunities that exist under the AWF and other initiatives of the Bank Group from which the various stakeholders can benefit from. The workshop also developed the modalities for further engagement by the Malawi water sector stakeholders with the AWF, including how to access the financial resources.

• A one-day seminar on the progress and contribution of the current AWF portfolio to “Equitable and Sustainable Water Resources Use and Management” was held before the Governing Council meeting on 29th October. A total of 70 participants attended the Seminar, comprising all those invited for the Governing Council meetings, five AWF project presenters from the RMCs and 22 Bank staff from various departments. The Seminar reported on the achievements and lessons of experiences of AWF projects, with reports by AWF and project staff on the various activities being undertaken.

• AMCOW, AfDB and UN Water-Africa joint meeting which took place at the United Nations Conference Centre in Addis Ababa, from October 7-9, 2008. The AWF Director led a Bank delegation to participate in the joint meetings to consider modalities and strategies for carrying forward the Sharm El-Sheik Commitments adopted by African Heads of State and Government during the recently held AU Summit on water and sanitation and other key declarations, including the African Water Week Tunis Ministerial Declaration on Accelerating Water Security and the eThekwini Ministerial Declaration and Action Plan on Sanitation. The meeting also considered the implementation of recent decisions by AMCOW relating to the 2nd

African Water Week, the African Ground Water Commission and Africa’s contribution to the 5th World Water Forum. The meeting was attended by many other

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key water sector actors and regional institutions on the continent, including the AU, RECs, UN agencies, representatives of G-8, EU, multilateral and bilateral agencies as well as civil society organizations.

B1.2 AWF and links with the AfDB: The Facility continues to forge strong working relationships with various Bank departments, in particular Water and Sanitation (OWAS) and Agriculture (OSAN), and is exploring ways to increase collaboration with the Human Development Department (OSHD) and the Fragile States Unit (OSFU) in upcoming project. Many Bank Field Offices are actively participating in various project tasks, particularly assisting with project supervision and monitoring, and opportunities will continue to be explored to increase their involvement. The AWF facilitates the developmental efforts of the Bank in various ways. It provides support to build the AfDB pipeline, through project preparation and pre-investment studies, and pilot investment projects which can be scaled-up, which is well appreciated since it is easier and quicker for the Facility to prepare a project or develop a pilot than the Bank. The Facility also builds capacities within RMCs to prepare projects and absorb funds from donors such as the AfDB, and builds the information and knowledge base from which development plans can be made and projects identified. The Bank also learns from innovative AWF projects/activities, from which specific technologies or best practices can be incorporated in upcoming Bank projects. Given the broad mandate of the AWF which touches on all aspects of water use, and the experience of its staff, the AWF is often called upon to provide critical and much needed advisory support and inputs towards Bank outreach activities. In particular, the AWF has played a leading role in Bank preparations for the African Water Week. To strengthen linkages and improve collaboration, the AWF routinely holds awareness creation sessions with OWAS and OSAN on its procedures, project possibilities etc.

ASSISTING AMCOW IN PROMOTING STRATEGIC INITIATIVES

B2.1 As a flagship initiative of AMCOW, the AWF instigates and promotes strategic initiatives in support of the AMCOW agenda, within its capabilities and operational mandate. This contributes to and assists AMCOW in providing oversight, guidance and advisory support to RMCs and other partners. Key activities in 2008 are listed below and discussed in more detail in other parts of this report:

• In response to an open request made by AMCOW during the 6th Ordinary Session, the African Development Bank hosted the first African Water Week (see B1.1).

• At the request of AMCOW, the AWF has also been supporting the M&E Initiative by undertaking a pan-African M&E assessment (see Section A3.16).

• Supported the preparation of the Heads of States and Governments Summit in Sharm El Sheikh, Egypt (see B1.1).

• Supporting regional participation in the 5th World Water Forum (see B1.1)

• Supporting the Groundwater initiative through water resource information management projects for Northern Africa aquifers (see Appendix A.1)

• The AWF is supporting AMCOW to prepare a programme for the survey of the implementation of the African Water Vision (see A3.19).

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3


B2.2 In order to plan for and undertake this support, the AWF has been liaising closely with AMCOW Secretariat, TAC and EXCO in various meeting in 2008, which are noted in Appendix B.1.

B2.3 The AWF has committed to support AMCOW to implement specific outcomes of the African Water Week, in terms of prioritising support for the development of strategies and action plans aimed at triggering investment in infrastructure for ensuring water security. To this effect, the Facility, together with AMCOW TAC, is in the process of analysing the key elements of the Ministerial Declaration and Outcome of the Water Week and design a specific plan of action to operationalise some of the key recommendations. There have also been calls for the Facility to support the development of national and regional strategies and action plans in collaboration with AMCOW, consisting of launching national and sub regional discussions and dialogues in collaboration with AMCOW TAC and other partners to prioritise actions and embark on supporting implementations.

B2.4 While there is a need for strengthening operational linkages with AMCOW through the TAC and Secretariat, the AWF is concerned about the increasing demand of activities. This was discussed at the last GC meeting in October, which concluded that there is a need to articulate an action plan as to how the how the AWF can assist AMCOW in achieving the various strategic initiatives being promoted, as well as supporting AMCOW in its role of providing strategic oversight, guidance and advisory support to RMCs and other partners. Further discussion and direction is needed in order to better define the type of support the AWF can provide to AWCOW, and to set out the associated resource requirements to achieve this.

OPERATIONAL SUPPORT B3.1 The AWF continues to carry out a number of important activities in support of project operations using internal administrative funds. These are briefly described below:

B3.2 Project Implementation Workshops: The African Water Facility held two Project Implementation Workshops in Kampala, Uganda from 23 to 27 June, and in Tunis from 6 to 10 October, as part of its operational support activities in 2008. The main purpose was to assist project managers and their staff involved in AWF projects, as well as senior government and public enterprise officials, to become more familiar with the policies and procedures of the Bank and the Facility regarding procurement and financial management. The Workshops were attended by about 72 participants drawn from 32 AWF funded projects. As a result of these workshops, the efficiency and effectiveness of AWF project execution has been improved, with increased levels of project disbursements noted.

B3.3 Comprehensive Operational Strategies, Plans and Procedures Prepared: The earlier approved ‘AWF Operational Strategy’ and the ‘2008-2010 Operational Programme’ were published in March, with the technical support of the Bank’s Communications Unit. The AWF Operational Procedures has undergone revision and is awaiting entry into force of the Bank’s new procurement rules before being finalised and published. At the Oversight Steering Committee (OSC) meeting in December, the AWF was asked to review and assess their existing Operational Procedures in light of the ongoing reforms taking place within Bank and report back to the OSC in mid 2009. The revisions to the Operational Manual are ongoing with finalisation planned early in 2009. Efforts to strengthen the systematic handling and processing of incoming requests were initiated in 2008, resulting in the development and implementation of guidelines on screening.

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4


B3.4 2009 Work Plan and Budget: This document was prepared for presentation and endorsement by the Governing Council during its 30th October meeting. The 2009 Work Plan and Budget was reviewed and approved by the AfDB Board of Directors in January.

B3.5 Review and oversight meetings: The AWF Governing Council (GC) met twice in 2008 to review the activities of the Facility. The first GC meeting was held in Lesotho, from 28th to 29th April 2008. Four AWF staff and the AfDB Vice President Operations attended the meeting. The second GC meeting was held in Tunis on the 30th October, with nine AWF/AfDB staff and the VP in attendance. Preparation of documentation in advance of both meetings involved most of the AWF team. As well, the Oversight Committee (OSC) of the Bank, comprising senior Bank management staff from Departments which interact with the AWF, met on 19th December to review the operations of the Facility and the role of the Bank in discharging its trusteeship responsibilities for the Special Fund.

B3.6 Reduced reporting and review: The need for rationalisation of reporting to the AWF Governing Council (GC) and Bank (Board and OSC), and reductions in the number of review/oversight meetings, were discussed at the last GC meeting in October, as well as at the OSC meeting in December, given the need to reduce the heavy reporting requirements and avoid duplication. The GC agreed that reporting to it shall be reduced to two progress reports per year (from the current four), and the GC should meet only once per year (from the current two). The OSC also agreed to meet only twice per year, and asked that the AWF submit detailed suggestions for revised reporting arrangements for review by the Bank, which will be done early in 2009.

B3.7 Improving business processes: The Facility has completed an internal review of its business processes with a view to improving AWF operational effectiveness and efficiency. The report came up with numerous recommendations regarding improving time management, strengthening results based performance evaluation processes, making more effective use of Bank project management tools such as the SAP, and improving the AWF Operational Manual. Appropriate actions are underway for implementation of many of the proposals.

AWF FUNDS MOBILISATION B4.1 A major activity of the AWF in 2008 has involved mobilisation of the funds needed to implement the 2008-2010 Operational Programme. Activities undertaken during the year to date include:

• The AWF organised a high-level Resource Mobilisation roundtable which was held in conjunction with the Africa Water Week in March 2008, in order to secure funds for the 2008 to 2010 period in support of the 3 year Operational Programme.

• A joint Resource Mobilisation mission between AMCOW TAC and AWF was undertaken 4-14 February. The delegation met with representatives of the governments of Sweden, France, Italy, and Spain. Later in the year, a Resource Mobilisation meeting was held with the Finnish Ministry for Foreign Affairs in Helsinki on 13th November.

• The important role of AMCOW in galvanizing African countries to make financial contributions to the Facility is being better utilised. In this regard, AMCOW, in liaison with AWF issued funding request letters to eight African countries. As a result, Algeria became the first RMC to contribute to the AWF Special Fund; Senegal has indicated

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their willingness to contribute financially to the Facility; negotiations are on going with South Africa’s Department of Water Affairs and Forestry (DWAF); and the government of Congo has communicated their positive intentions.

• Spain pledged to join the Facility, and the paperwork is still in the process. Austria and Sweden have committed new funding to the 2008-2010 programme, both significantly increasing the amounts committed compared to the initial three-year period.

• AWF held a working session with AMCOW TAC on 20th – 25th July 2008 in Brazzaville in order to further the process for AWF resources mobilisation by following up on several decisions taken over the past year. A short term action plan was prepared which targets specific current and potential donors, with responsibilities identified for AWF and AMCOW TAC respectively.

HUMAN RESOURCES B5.1 There have been important changes in AWF staff during the year. The highlights are as follows:

• A new management team took over responsibility for the Facility in March 2008, with the appointment of a new Director and Coordinator of the AWF in replacement of transferred staff.

• Two Technical Assistant positions became vacant (the Water Supply and Sanitation Expert funded by Austria who left the Facility in May, and the Water Resources Management Specialist funded by Norway who retired in September). Good progress is being made in the recruitment of replacements, with the Austrian TA expected to be in place in January 2009, and the Norwegian TA in the second quarter of 2009.

• One AfDB seconded Task Manager was transferred to a Bank Field Office as of the end of September, and the AWF Secretary was transferred to another Department. Discussions are underway for the appointment of their replacements.

• A new Young Professional joined the Facility in October in replacement of the previous one who was rotated as planned to another department.

B5.2 As a result of these changes, the AWF is considerably understaffed, with only ten management, professional and support staff in place as of the end of 2008 versus the 19 that was planned. This is also down from the 13 staff that were in place at the end of 2007. The staffing situation over each of the past three years is summarised in Figure B1, and the overall Organisational Framework in Appendix B.3.

B5.3 The AWF is currently in the process of recruiting two of the five positions approved and budgeted for in 2008; (i) Grant Administration Officer (to handle portfolio management) and (ii) Communications Officer. These positions will be funded by the Facility, and the staff should be in place in the second quarter of 2009. The recruitment process for two engineering positions was also initiated in December (Water Resources and Water Supply and Sanitation). The procurement and legal officer has been deferred until a later date. Instead, two additional water sector professionals will be recruited in 2009 to make up the shortfall in task managers at the Facility, comprising a Water/Irrigation Engineer and a Water Resources Management Expert. In addition, the AWF is continuing to hold discussions with potential donors interested in seconding an Environmentalist.

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B5.4 To temporarily resolve the short fall in staff and meet immediate needs the Facility is making use of five long term consultants and three Short Term Support staff. In addition, the Front Office of the Director has been providing support to the Facility.

Figure B1: Planned vs. Actual Staff

19 20

7

13

10

0

5

10

15

20

25

2006 2007 2008 2009

Number of AWF Staff

Planned Actual

* Planned based on AWF annual Work Plan and Budget. Actual based on total end of year management, professional and support staff.

B5.5 One potential problem regarding recruitment of new staff concerns the lack of sustained funding commitments from 2009 onwards. As the AfDB Board of Directors advised during its review of the 2008 Budget, staffing increases should be in-line with increases in the size of the project portfolio, which in turn depends on adequate levels of funding over each of the next three to five years to make the planned project commitments. The concern is that should funding remain at current low levels, it may result in the inability for the AWF to make a sufficient number of project commitments to justify the increased numbers of operations staff (i.e. there may be not enough work to do). However, the risk of overstaffing is deemed minimal, and is certainly less than the impact of having inadequate staffing levels. The Facility has therefore given priority to ensuring adequate staffing by allocating sufficient budgetary provisions.

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APPENDIX B.1: MAIN ORGANISATIONAL ACTIVITIES UNDERTAKEN IN 2008

Type of Activity CountryNo. of Pers. Mission Dates

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Dialogue and Review

AWF Governing Council Meeting Lesotho 4 27-30

AWF Governing Council Meeting Tunisia 8 30

AMCOW Executive Committee meeting Kenya 1 24

Oversight Committee Tunisia 3 19

Training Eastern Africa AWF Project Managers - Workshop on Project Implementation Uganda 3 7-17

Francophone Africa AWF Project Managers - Workshop on Project Implementation Tunisia 6 5-10

Joint Africa Institute seminar on IWRM Tunisia 3 6-10

Conferences/Workshops/Aid Coordination Resource Mobilisation Meetings with European donors

Sweden, Italy, France, Spain 2 4-14

5th World Water Forum Kick-off Conference Turkey 2 19-20

Informal dialogue on Africa’s Water Agenda 2008 and International support for AMCOW Germany 2 10-11

Annual Meeting of the Infrastructure Consortium for Africa Japan 1 12-14

African Water Week Tunisia 11 26-28

AWF Roundtable meeting with current and potential donors Tunisia 3 27

NBA Heads of State Meeting Niger 1 30 Collaboration meeting with International Secretariat for Water France 1 26

3rd Conference on shared aquifer Management Libya 1 24-28

NEPAD-IPPF Oversight Committee meeting, Libreville Gabon 1 9-10

ECP Zaragosa 2008 Spain 2 14-18

NBA Donors Meeting Niger 1 21-24

AU Summit, Sharm El Sheikh Egypt 30 1

Collaboration workshop with AFD Paris France 2 11 Resources mobilisation working session with AMCOW TAC

Congo Brazzaville 2 20-25

Stockholm International Water Week Sweden 3 17-23 5th World Water Forum Regional Kick-off Workshop Tunisia 2 8-9

UN High Level Event USA 2 22-26 Seminar on progress and contribution of current AWF portfolio Tunisia 14 29

AMCOW, AfDB and UN Water-Africa Joint Meeting Ethiopia 1 7-9

Regional Water Sector Monitoring and Evaluation Working Group Tunisia 4 13-14

Resource Mobilisation meeting Finland 1 13 Utilities credit assessment workshop organised by WSP and AfDB Senegal 2 24-25

Financing Water for Growth workshop organised by ICA Senegal 2 26-27

Financing and Pricing Water conference at OECD France 2 1-2

Sensitisation workshop on AWF Malawi 1 7-14

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APPENDIX B.2: ORGANIZATIONAL FRAMEWORK FOR 2008

Reg g

TWRM Theme

•

•

•• •

•

••

(STS)

••

Governing Council of the African Water Facility

AfDB Board of Directors

Director Water & Sanitation Department

African Water Facility

AWF Coordinator

Bank Group President

Vice President Infrastructure, Private Sector &

ional Inte ration

Water Resources Operations Officer Water Resources Management Specialist

NWR Theme

Water Policy Officer

Finance & Resource Mobilisation

Financial Management. Specialist

Project Support Services

Young Professional Operations Assistant (STS) Secretary (STS) Admin. Assistant

Manager Water Sanitation Division .1

Manager Water Sanitation Division .2

Cross Cutting Theme

M&E Specialist Socio-Economist & Gender Specialist

Front Office of OWAS

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APPENDIX B.3: MEMBERS OF THE AWF GOVERNING COUNCIL

(as of 31st December 2008)

Name Title Country or Institution Representing

Hon. Monyane MOLELEKI Minister of Natural Resources, Governing Council Chairman Lesotho AMCOW

1 S.E.M. Salif DIALLO Ministre de l’Agriculture, de l’Hydraulique et de Ressources Halieutiques

Burkina Faso AMCOW – Western Africa

2 Hon. Kenneth KONGA Minister of Energy and Water Development Zambia AMCOW –

Southern Africa

3 S.E.M. Mohamed Lemine OULD ABOYE

Ministre de l'Hydraulique et de l'Energie Mauritania AMCOW –

Northern Africa

4 S.E.M. Samuel NDAYIRAGIYE

Ministre de l'Eau, de l'Energie et des Mines

Burundi AMCOW - Eastern Africa

5 S.E.Mme Khadidja ABDELKADER

Ministre de l'Environnement, de l'Eau et des Ressources Halieutiques

Tchad AMCOW - Central Africa

6 Dr. Cecilia SCHARP Head of Water Division Department for Natural Resources and the Environment, SIDA

Sweden Denmark, Norway and Sweden

7 Mr. Hans SCHATTAUER Program Officer, Water & Sanitation Austrian Development Agency Austria Austria

8 Mr. Glenn BRIGALDINO Senior Program Officer, Pan-Africa Program Canada Canada

9 M. Michel PROM

Directeur adjoint des Politiques de Développement, Ministère des Affaires Etrangères, Direction Générale de la Coopération Internationale et du Développement

France France

10 Ms. Monique Le GENISSEL Programme Manager ACP-EU Water Facility Unit

European Commission

European Commission

11 Mr. G. MGIDLANA Adviser NEPAD Secretariat

South Africa AU/NEPAD

12 Mr. Halifa O. DRAMMEH Chair UN-Water/Africa Kenya UN WATER

Africa

13 Mr. Mandla S.V. GANTSHO

Vice President Operations: Infrastructure, Private Sector & Regional Integration

Tunisia AfDB

Mr. Andrianarison RAKOTOBE Director OWAS/AWF Tunisia AWF (ex-officio)

B-10


APPENDIX B.4: LOGIC MODEL FOR THE AWF

IMPACTACTIVITIES OUTPUTS OUTCOMES

National Water Resource Management Provide support to RMCs to improve or establish IWRM policies and institutional frameworks, and prepare strategies and implementation plans.

Transboundary Water Resource Management Support joint development of framework agreements, cooperative mechanisms and planning processes for shared water

Investments to Meet Water Needs Provide investment resources for innovative small-scale water and sanitation infrastructure to meet needs and catalyse additional investments. Support programme and project preparation for funding.

Strengthen Financial Base Improve environment for sustainable financing; increase availability and access to financing.

Monitoring and Evaluation Support the establishment of water sector M&E systems and capabilities at national and regional levels

Information and Knowledge Systems Support the establishment and enhancement of information management, knowledge and research capabilities at national & regional levels

Organisational Activities Strengthen partnerships and communications, provide operational support.

IWRM Implemented at National Levels Progressive adoption of IWRM policies and institutional frameworks, and preparation of strategies and implementation plans in RMC

Improved Transboundary Water Resource Management Progressive development of legislative frameworks, cooperative arrangements and regional programmes for river basins.

Advances in Meeting Water Needs Water needs being met through direct project investments which lead to widespread adoption of innovative technologies and improved approaches. Increased number of quality water and sanitation proposals submitted for funding.

Additional Financing Mobilised Improved environment for sustainable financing; increased availability and access to financing.

Improvements in M&E M&E systems and reporting mechanisms established and in operation at national and regional level.

Better Information & Knowledge Systems Information management systems established in RMCs, RBO and RECs. Knowledge/research activities generating water wisdom.

Organisational Support Provided Implementation of AWF Operational Programme proceeding as planned in close collaboration with partners.

Improved Water Governance RMCs and regional organisations have increased capacity to govern their water resources effectively based on IWRM principles and transboundary cooperative arrangements.

Water Needs Met Water needs in RMCs met through increased investments and better use of available resources.

Financial Base Strengthened RMCs and regional organisations benefit from increased financial resources.

An Africa where there is an equitable and sustainable use and management of water resources for poverty alleviation, socioeconomic development, regional cooperation, and the environment.

Improved Water Knowledge Increased capacity for informed decision making at all levels to guide water sector development planning and implementation.

B-11

1


ANNEX C: FINANCIAL STATUS

FUNDING COMMITMENTS

C1.1 The AfDB maintains a Special Fund for financing project operations and administrative expenses of the AWF. As of the end of December 2008, the amount of funds pledged by the various donors for projects to be undertaken by the AWF amounts to €91.3 million (not including interest earned or Technical Assistants), of which €27.2 million was received during the year. Funding commitments and amounts received are shown in Table 4.1, with comments as follows:

• The issues relating to the European Commission support to the Facility was resolved in December 2007, and enabled the EC to make its first disbursement of €9.1 million in the first quarter of 2008.

• CIDA and AfDB extended the Canadian agreement that would otherwise have expired in March 2008, bringing forward CAD 7,000,000 of un-released commitments.

• Sweden submitted a new Instrument of Commitment amounting to SEK 75 million (approximately €8 million) for 2008-2010. In doing so, they are the first of the Facility’s original donor members to confirm a second phase of funding.

• The Austrian Government submitted a new instrument of commitment of €300,000 for 2008-2010.

• Norway submitted a new instrument of commitment of NOK 60 million (approximately €6.6 million) for 2008-2010.

• The Spanish Government join the Facility with a commitment of €12 million for 2008-2010.

• Algeria was the first Regional Member Country to join the Facility by contributing €100,000.

Table C1 Amounts Pledged by Donors to AWF Special Fund Projects (million Euros) Donor Amount

Pledged 1 Funds

received to end 2007

Funds Received Jan.

to Dec.08

Total Funds Received

Outstanding Pledges as at

31 Dec.08 European Commission 25.0 0.0 9.1 9.1 15.9 Canada 13.3 6.8 4.8 11.6 1.7 France 12.0 9.6 0.02 9.6 2.4 Denmark 5.4 3.2 1.1 4.3 1.1 Sweden 12.8 4.8 2.6 7.5 5.3 Norway 10.3 3.7 2.2 5.9 4.4 Austria 0.40 0.1 0.2 0.3 0.1 Spain 12.0 0.0 6.0 6.0 6.0 Algeria 0.1 0.0 0.1 0.1 0 Sub-Total 91.3 28.2 26.1 54.4 36.9 Interest 2.3 1.2 1.1 2.3 0.0 Total 93.6 29.4 27.2 56.7 36.9

1) Amount pledged based on exchange rate as of September 2008. This does not include funds committed for in-kind contributions such as Technical Assistants

2) The contribution from France for 2008 was paid in advance in 2007

C-1

2


C1.2 In addition, Senegal confirmed their intention to contribute financially to the Facility in 2009. Furthermore, the governments of Australia, Congo, South Africa and United Kingdom have indicated their positive intentions during the year.

C1.3 Of the total €91.3 million in pledges since inception of the Facility, just over half, or €54.4 million has been received to date, of which €26.1 was received during 2008 (as shown in Table 4.1 below). This is higher than the funds received in 2007 and compared to the performance indicator of €27.7 million for 2008, the Facility is making good progress. Funds on account have been managed to ensure that sufficient funds are available for projects commitments as they arise, and disbursement requests to donors are made accordingly.

STAFFING AND ADMINISTRATIVE EXPENSES BUDGET

AWF Administrative Expenses Budget

C2.1 The AWF maintains an administrative budget which categorises expenses according to certain predefined internal categories. In Table C2 below, the amounts planned for 2008 and utilised during the year under each of the administrative expense categories have been compiled. In total, the AWF has allocated €2.0 million for administrative expenses in 2008. Of this amount, €1,017,658 or 51% of the AWF budget was utilised. Whilst this figure is low, the percentage utilised is a slight increase on the previous year. Expenditure for Individual Consultants is on track. Governing Council over expenditure is partly due to more sponsored participants invited (mainly AMCOW), and partly because some costs for the 8th GC were shared with the AWF Seminar held the day before the GC. The low spending on Consultancy Firms is partly due to the delays in starting project audits (procurement under way as discussed in Annex A.2)). Low spending in Missions and Workshops and Resources Mobilisation is partially due to the AfDB Administrative budget being used for these activities, as un-used funds under the AfDB budget may not be carried into the following year (compared to the AWF Admin budget which can be reallocated for funding project). Other under spending is primarily a reflection of the Facility’s limited number of staff to undertake missions and other activities.

Table C2 AWF Administrative Expenses Budget for 2008 (in Euro) Item Budget Allocation Total Jan. - Dec.08 % Utilisation

Staff Missions 300,000 89,087 30% Consultancy - Individuals 400,000 395,143 99% Consultancy - Firms 600,000 75,716 13% Workshops and Seminars 500,000 292,918 59% Governing Council Meetings 100,000 138,672 139% Resources Mobilisation 50,000 21,372 43% Communications 50,000 1,275 3% Audit 0 3,475 -

Total AWF €2,000,000 €1,017,658 51%

C-2


AfDB Staffing and Administrative Support to the AWF

C2.2 The AfDB is providing financial support for a range of activities associated with the implementation of AWF operational and management activities. These include secondment of Bank staff, financing of missions related to project identification, appraisal and supervision, and hosting of workshops and seminars. The administrative expenditure amounts for 2008 are detailed in Table C3 according to the administrative expense categories used by the AfDB. The total allocation for the year was €184,675, of which 143,495 or 78% of the AfDB budget was utilised up to December 2008.

Table C3 AfDB Administrative Expenses Contribution to the AWF (in Euro)

Item Budget Allocation1

Budget Reallocation 2

Total Jan.- Dec.08 % Utilisation

Missions 130,000 180,000 140,142 78% Consultant Services 50,000 0 0 0 Entertainment, Hospitality 4,675 4,675 3,353 72%

Total AfDB 184,675 184,675 143,495 78%

1) Budget figures are those assigned in the AfDB budget system. Differs from the 2008 Workplan and Budget document where a total of Euro 208,000 was assigned.

2) During the year, the consultancy budget was reallocated to missions to increase absorption. This was carried out in accordance with Bank procedures.

Donor Technical Assistance Contributions

C2.3 In addition to financial commitments to the AWF Special Fund, donor organisations make significant in-kind contributions in the form of Technical Assistance (TA). Technical Assistance personnel have been seconded to the AWF by Austria, Norway, France, Denmark and the United Kingdom, at a cost of about €367,000 in 2008.

Summary of Staffing and Administrative Expenses Budget

C2.4 A summary of all AWF staffing and administrative expenses is shown in Table C4. A more detailed statement is provided in Appendix C.1, highlighting both expenditure under the AWF Fund account and other in-kind contributions. In total, the Facility spent €2,782,000 in 2008 which represents about 6% of the project portfolio.

C-3

G r a n t e f f e c t i v e

3


Table C4 Summary of Staffing and Administrative Expenses Budget (Euros)

2007 2008 Staffing and Administrative Expenses

AWF Staffing (paid for directly from AWF account) 0 0 Administrative Expenses 927,599 1,017658

Sub-total 927,599 1,017,658 AfDB

Staffing (AfDB secondments to AWF) 565,333 713,253 Administrative Expenses (missions, consultants) 148,241 143,495 Overhead Allocation (office and other expenses.) 231,591 82,420 Operational Support (from Bank Departments) 407,904 458,325

Sub-total 1,353,069 1,397,493 Donors

Technical Assistance Sub-total 318,858 366,973 TOTAL STAFFING and ADMIN. COSTS 2,599,526 2,782,124

Total Project Portfolio (commitments as at Dec08) 44,500,000 Staffing & Admin compared to Project Portfolio 6%

PROJECT COMMITMENTS AND DISBURSEMENTS

C3.1 As of the end of December 2008, €44.5 million has been committed on 43 projects approved (or submitted for approval). In total, €12.15 million has been disbursed to date on the 30 projects which are Grant Effective, which is 44% of the €27.5 million value of these projects. Detailed information on the amounts disbursed for each of the 43 projects can be found in Appendix C.1.

C3.2 A typical AWF project has, on average, two disbursements, the first one being made as soon as the project is grant effective and the second when 50% of the first disbursement has been spent (see Figure C1 below). This generally takes approximately 12 months because of long procurement lead times (between 8 and 12 months) for contracting consultancy firms, the most common procurement activity.

Figure C1: Milestones from Project Approval to Completion

A v e r a g e P r o j e c t im p le m e n t a t i o nA v e r a g e P r o j e c t im p le m e n t a t i o nA v e r a g e 2 y e a r s + ¼ y e a r d e la y = 2 7 m o n t h sA v e r a g e 2 y e a r s + ¼ y e a r d e la y = 2 7 m o n t h s8 .8 . 55 mm o n to n t hh ss

A p p r o v a l C o m p le t io n 1 2 m o n t h s

A p p r o v a l G r a n t e f f e c t i v e C o m p le t io n1 2 m o n t h s

1 s t 2 n d1 s t 2 n dD is b u r s e m e n t D is b u r s e m e n tD is b u r s e m e n t D is b u r s e m e n t5 0 % G r a n t a m o u n t 5 0 % G r a n t a m o u n t5 0 % G r a n t a m o u n t 5 0 % G r a n t a m o u n t

C-4

4


C3.3 Delays by the Recipient in meeting the conditions for grant effectiveness before first disbursement can be made, as discussed in Annex A2.3, as well as delays by Recipients in committing sufficient funds on procurement before subsequent disbursements can be made have resulted in lower than expected levels of disbursement so far in 2008. Actions are being taken (supervision, project implementation workshops, intensive communication) to ensure that processing of the first disbursement for another five projects which are grant effective but non-disbursing will soon be realised, as well as several second tranche disbursements. The status of each non-disbursing project and actions being taken by the AWF and Recipients are noted in Appendix C.1.

Table C5 Project Commitment and Disbursement Profile

2006 2007 Total

Q1 2008

Q2 2008

Q3 2008

Q4 2008

2008 Total

Approvals Number Projects Approved 14 15 3 3 1 7 14 Cumulative Number of Approvals 29 32 35 36 43 Commitments (€ million)

Total Amount Committed 9.0 15.1 4.45 2.05 1.951 11.87 20.36 Cumulative Commitments 24.1 28.55 30.64 32.591 44.50 Grant Effectiveness

Number Projects Grant Effective 1 19 0 2 1 6 9 Cumulative Grant Effective 21 21 23 24 30 Disbursements (€ million)

Total Amount Disbursed 0.17 8.4 0.035 0.263 0.474 2.78 3.55 Cumulative Disbursements 8.6 8.6 8.9 9.374 12.154

FINANCIAL STATEMENTS

C4.1 The AWF is subject to an annual audit conducted by the external auditors of the Bank. This auditing exercise was completed in July 2008, for the year ended 31 December 2007. The overall conclusion of the auditors was positive, in that the Statement of Financial Position presents fairly the financial position of the AWF Fund and complies with the terms of the Agreement.

C4.2 The AWF financial statement for 2008 is shown in Appendix C.2. The data has been internally generated from AfDB Financial Department, and has not yet been audited. The statement covers both the AWF Special Fund Account and all in-kind contributions for the AfDB and donors. Due to the nature of in-kind contributions, some are exact figures, whereas others (such as ADB Operational Support) are estimates. The years 2005 and 2006 have been included in order to present a complete picture since the establishment of the Facility.

C-5

AFRICAN WATER FACILITY: 2008 ANNUAL REPORT

APPENDIX C.1: STATUS OF PROJECT DISBURSEMENTS

Beneficiary Country or Organization Project name Grant

amount

1 Volta Basin Support for the Creation of the Volta Basin Authority 165,000

2 Burundi Formulation of IWRM Plan for Burundi 480,000

3 Ethiopia Support to the Development of Water Information and Knowledge Management Systems in Ethiopia

500,000

4 NBA (Niger Basin Authority) Support for Niger-HYCOS Project 1,200,202

5 Kenya Kisumu District Primary Schools Water and Sanitation Project 228,606

6 Mozambique Preparation of the National Rural Water Supply and Sanitation Programme 486,223

7 Uganda

Implementation of an Integrated Project of Water Supply and Sanitation Services for the Urban Poor in Kagugube Parish, Kampala

800,000

8 ANBO (African

Network of Basin Organization)

Support to the Development of African Network Of Basin Organisations (ANBO)

439,000

9 Cameroun Inventory Of Rural Water Supply and Sanitation Infrastructures 469,486

10 Namibia Development of an IWRM Plan for Namibia 498,200

11 Rwanda Pilot Project for the Introduction of Water Harvesting Technique in Bugesera

450,000

12 Senegal Ziguinchor Sanitation Master Plan Study 935,000

13 OSS (Sahara and Sahel Observatory)

Geo-Aquifer: North-Western Sahara Aquifer System (SASS) Knowledge and Water Resources Management Improvement by using satellite imagery

487,800

14 IGAD (Intergovernmental Authority on

Development)

Mapping, Assessment and Management of Transboundary Water Resources in the IGAD Sub Region

1,831,600

15 Niger Preparation of IWRM Action Plan for Niger 660,775

16 Uganda Roof Catchment Rainwater Harvesting and Management in Uganda 449,830

17 Lesotho Development of Planning Framework for Rural Water Supply and Sanitation 400,000

18

CICOS (International Commission of the Congo-Oubangui-

Sangha Basin

Strengthening the Information and Knowledge Capacity of CICOS on the Water Resources Management of the Congo Basin

455,000

19 CICOS Preparation of the Strategic Action Plan for the Sustainable Water Resources Management of the Congo of basin

1,988,673

20 LCBC (Lake Chad Basin Commission)

Preparation of Lake Chad Basin Water Carter 890,000

21 Botswana

Development of Improved Water Control and Management System for Pandamatenga Agricultural Production Project

1,169,000

22 Congo Brazzaville

Support to a water supply and sanitation policy and priority investments preparation in Brazzaville and Pointe Noire

1,418,235

23 Centrafrique

Support to a water supply and sanitation study and priority invest preparation in 16 district capitals in central Africa

1,438,000

24 Senegal Implementation of the IWRM action Plan for Senegal 1,580,000

Date Effective

20-apr.-06

9-May-07

14-May-07

02-feb.-07

21-May-07

07-dec.-07

24-May-07

03-jul.-07

13-jul.-07

29-May-07

14-aug.-07

06-sept.-07

23-mar.-07

15-aug.-07

Not yet effective.

29-jun.-07

19-nov.-08

30-jul.-07

30-jul.-07

31-jul.-07

19-nov.-07

12-nov.-07

03-sept.-07

13-May-08

Disbursement Dates

Total Amount Disbursed

2006 165,000

21-Jun-07 200,000

25-Jun-07 150,000

23-mar.-07 and 29-Oct-08 1,064,115

21-May-07 and 16-Sep08 228,606

01-apr-08 298,091

24-May-07 322,150

18-jul.-07 302,850

27-aug.-07 299,997

20-aug.-07 268,660

28-sept.-07 249,578

27-sept.-07 465,967

12-Jun-07 327,300

6-sept.-07 561,350

BCEAO (the central bank of West Africa) has not allowed the recipient to open an account in Euro, even though other West African countries have. Negotiations are on-going and the Niger ministries of Finance and Foreign Affairs are involved.

30-jul.-07 193,441

Government sent disbursement application in January 2009.

24-aug.-07 250,000

24-aug.-07 792,434

27-aug.-07 583,803

6-dec..-07 870,000

3-dec.-07 664,010

22-oct.-07 712,058

6-Nov.-08 980,000

C-6


Comprehensive Studies for the 25 Egypt Rehabilitation of the Nubaria and 1,900,090 16-Oct.-08 6-nov.-08 899,910

Ismailia Canals

26 Mauritania Formulation of IWRM and land use plan for Mauritania 500,000 Not yet

effective Conditions met and project to be declared effective in Jan-09

27 Mozambique Study and project preparation for COFAMOSA irrigation project 1,178,367 Not yet

effective

The Bank comfort letter is pending, with grant effectiveness expected next quarter.

28 Tanzania The Arusha strategic sanitation plan preparation 654,000 20-Nov.-08 Application for 1st tranche

disbursement under processing

29 Chad Institutional Support for Rural Water Supply and Sanitation Inventory 490,000 Not yet

effective

Government in process of fulfilling conditions for grant effectiveness. AWF is in contact with AfDB Office in Chad to assist the Recipient.

30 Liberia

Study for the expansion of Monrovia water supply and sanitation system and rehabilitation of water supplies of three country capitals

1,520,000 25-Aug-08 29-Oct.-08 530,000

31 Djibouti Water harvesting project for water supply and agriculture in rural districts of the republic of Djibouti

1,937,000 13-May-08 9-Jun.-08 774,680

32 LVBC (Lake Victoria Basin Commission)

Lake Victoria Basin commission - Water & Sanitation Initiative 994,000 24-Nov.-08. The first disbursement of 497,000 to

be paid in January 2009.

33 Seychelles Water Supply Development Plan 20082030 995,000 24-Oct.-08 The first disbursement to be paid in

January 2009.

34 Burkina Faso Strengthening of institutional capacity for decentralised IWRM 450,000 Not yet

effective

Government in the process of fulfilling conditions for grant effectiveness. AWF is in contact with AfDB Office in Burkina Faso to assist the Recipient.

35 Burkina Faso

Feasibility and design study of storm water drainage and solid waste management systems in Ouagadougou.

642,000 08-Nov.-08 The first disbursement application is under processing by FFCO

36 Multi-Country Strengthening water and environmental engineering capacity in fragile states. 1,990,000 Not yet

effective GECL is drafting the grant agreement.

37 OMVG (Gambia River Basin Organisation)

Development of IWRM Plan for the Kayanga Geba Basin 1,585,000 Not yet

effective Submitted for approval on 23-Dec.-08.

38 Togo Development of an integrated water information system. 1,569,000 Not yet


39 Morocco Artificial Recharge of Haouz groundwater aquifer 1,892,500 Not yet


40 Ethiopia Utilisation of solar and wind energy for rural water supply 1,991,880 Not yet


41 Kenya Integrated Watershed Management of Kiboun and Tende River Basins 1,940,000 Not yet


42 VBA (Volta Basin Authority)

Support to the VBA for implementation of the Volta-HYCOS 1,200,000 Not yet


43 Liberia Water Sector Reform and Capacity Building Study 1,694,000 Not yet


Total Amount 44,500,000 12,154,000 Total Number 43 30 26

C-7


APPENDIX C.2: AWF FUND PRELIMINARY FINANCIAL STATEMENT AS OF 31 DECEMBER 2008

ACONTRIBUTIONS WF Fund Account In Kind Contributions***

2005 &2006 2007 2008 Total 2005 &2006 2007 2008 Total

Cash Contributions Algeria - - 99,975 99,975 - - - -Austria 100,000 0 200,000 300,000 123,127 0 0 123,127 Canada 6,818,027 0 4,768,836 11,586,863 0 0 0 0 Denmark 2,143,517 1,072,320 1,072,142 4,287,978 0 0 0 0 EU 0 0 9,129,600 9,129,600 0 0 0 0 France 4,000,000 5,600,000 - 9,600,000 0 0 0 0 Norway 2,502,752 1,235,969 2,189,981 5,928,702 0 0 0 0 Spain - - 6,000,000 6,000,000 0 0 0 0 Sweden 3,223,879 1,614,270 2,632,450 7,470,599 0 0 0 0 Interest 421,108 1,887,090 1,121,235 2,308,198 0 0 0 0 Total Cash Contributions 19,209,282 11,409,649 27,214,219 56,711,914 123,127 0 0 123,127

Technical Assistants Austria 208,197 0 131,000 339,197 0 0 0 0 Denmark 0 304,269 0 304,269 0 0 0 0 Norway 0 392,906 0 392,906 0 0 0 0 France 0 0 0 0 89,000 82,537 85,000 256,537 UK 0 0 0 0 0 16,982 80,120 97,102 Total TAs

ADB Contribution

208,197

0

697,175

0

131,000

0

1,036,372

0

89,000

1,016,459

99,519

1,353,069

165,120

1,397,493

353,639

2,369,528

TOTAL CONTRIBUTIONS 19,417,479 12,106,824 27,345,219 57,748,286 1,228,586 1,452,588 1,562,613 2,846,294

C-8


Appendix C.2: AWF Fund Preliminary Financial Statement as of 31 December 2008 (Continued)

ADISBURSEMENTS WF Fund Account In Kind Contributions 2005 &2006 2007 2008 Total 2005 &2006 2007 2008 Total

Project Disbursements 165,000 8,062,003 3,926,998 12,154,001 0 0 0 0

Organisational Budget Consultancy services **** 146,307 450,932 470,860 1,068,098 101,667 91,042 - 192,709 Staff missions 75,030 111,490 89,087 275,608 9,610 56,764 140,142 206,516 Workshops & seminars 185,325 291,792 292,918 770,035 0 0 0 -Governing Council 47,977 70,384 138,672 257,033 0 0 0 -Resource Mobilisation 0 0 21,372 21,372 0 0 0 -Communications ** 0 0 1,275 1,275 123,127 0 0 123,127 Audit Fees 0 3,000 3,475 6,475 0 0 0 -Entertainment, hospitality, meetings 0 0 0 0 1,305 434 3,353 5,093 ADB overhead allocation & capital cost 0 0 0 0 253,266.00 231,591.00 82,419.91 567,277 ADB ops support (reviews, legal, etc) 0 0 0 0 243,770.00 407,904.00 458,325.43 1,109,999 Total Organisational Budget 454,638 927,599 1,017,658 2,399,895 732,745 787,736 684,240 2,204,721

Technical Assistants* Austria 93,240 70,463 40,028 203,731 0 0 0 0 Denmark 0 46,274 82,954 129,228 0 0 0 0 Norway 114,103 102,603 78,871 295,577 0 0 0 0 France 0 0 0 0 89,000 82,537 85,000 256,537 UK 0 0 0 0 0 16,982 80,120 97,102 Total TAs 207,343 219,339 201,853 628,536 89,000 99,519 165,120 353,639

Staff ADB staff remuneration 0 0 0 0 406,842 549,922 687,807 1,644,572 ADB Short Term Staff 0 0 0 0 - 15,411 25,446 40,857 Total ADB salaries 0 0 0 0 406,842 565,333 713,253 1,685,428

TOTAL DISBURSMENTS 826,981 9,208,941 5,146,509 15,182,432 1,228,586 1,452,588 1,562,613 4,243,788

Funds Available 42,565,854

* TAs funded by AUS, NOR and DK are paid through the AWF fund account, TAs funded by FR and UK and 2 are paid through other channels For FR and UK the TA contributions are spending are approximations.

** Communications in-kind contribution of 123,127 was a consultant provided by Austria *** Unless stated, in-kind contribution is the support provided by ADB as per its hosting responsibilities

C-9


Appendix C.2: AWF Fund Preliminary Financial Statement as of 31 December 2008 (Continued)

FUNDS AVAILABLE - AWF Fund Account

Fund Balance 42,565,854

Fund Balance Represented by; Cash in bank 5,882,252 Investments 36,600,000 Net payable 83,603 Total 42,565,854

Statement of Commitments

Total funds available 57,748,286

Less commitments Administartive expense budget **** (7,096,912) Project commitments ***** (32,618,256)

Total funds available for project commitment 18,033,118

**** Total admin budget (2005-2008) + TA commitments for AWF account (Austria, Norway, Denmark) ***** Actual funds committed during Jan-Dec 2008 is 32.6 million. However, in the 2008 reporting, AWF has also included projects submitted for approval in Dec 2008

that were approved early Jan 2009, which is why the project commitments reported in the progress report are stated as 44.5 million.

C-10


ANNEX D: PERFORMANCE INDICATORS, TARGETS AND RESULTS

Components/Outputs Performance Indicators 2007 Actual

2008 Planned* = Actual to 31 Dec.

Comments Relevant Projects

Improved Water Governance OUTCOMES: RMCs and regional organisations No. of RMCs with effective IWRM policies, Underway in 2 Underway in 8 RMCs Burundi; Burkina Faso; Kenya, Liberia; Mauritania; have increased capacity to govern their water strategies and institutions. RMCs = 9 projects ongoing. Morocco; Namibia; Niger; Senegal resources effectively based on IWRM principles and transboundary cooperative arrangements.

Number of river basins with shared water agreements and effective cooperative mechanisms

Underway in 4 River Basins

Underway in 4 River Basins = 1 project completed, 4 projects

ANBO; CICOS; LCBC; OMVG; VBA (completed)

ongoing IWRM: Assessment of the status of IWRM in RMCs Assessment being Underway in all 53 RMCs IWRM seminar held jointly with JAI in Oct.08 which Progressive adoption of IWRM policies and planned >assessment underway. reviewed progress/status of IWRM plans in African institutional frameworks countries. Additional seminar being planned for 2009.

Progress in supporting RMCs to strengthen or 2 project underway, 8 projects in progress Burundi; Liberia; Mauritania; Namibia; Niger; Senegal develop comprehensive IWRM framework 3 more approved = 6 projects ongoing. Allocation of water rights for meeting needs of 1 project approved Underway in 2 RMCs Burkina Faso; Senegal all users and for environmental sustainability. = 2 projects ongoing.

Preparation of strategies and implementation plans Number of RMCs supported to prepare IWRM Underway in 2 8 projects in progress Burundi; Liberia; Mauritania; Namibia; Niger; Senegal in RMCs strategies and action plans RMCs = 6 projects ongoing. Improved environmental management and Programmes for conserving and restoring the Underway in 1 RMC Kenya protection watershed ecosystem = 1 project ongoing

Programmes for effective management of Underway in 1 RMC Morocco drought, floods and desertification = 1 project ongoing

TWRM: Progressive development of shared visions and Progress in development of shared visions and 2 projects 2 projects underway ANBO; LCBC framework agreements on water sharing legislative frameworks for river basins. underway = 2 projects ongoing Regional organisations better able to manage Number of RBOs strengthened through Underway in 4 RBOs Underway in 5 RBOs ANBO; CICOS; LCBC; OMVG; VBA (completed) transboundary water resources in a cooperative cooperative arrangements and capacity building. = 1 project completed, 4 projects manner. ongoing. Mechanisms in place to guide the development of Number of regional programmes and master Underway in 1 Underway in 2 river basins CICOS; OMVG transboundary water resources based on coherent plans prepared river basin = 2 projects ongoing. strategic goals and joint planning processes.

* The planned results for 2008 are based on the range of indicators and targets presented in the 2007 Annual Report. The targets were based on those noted in the AWF Operational Programme 2008-2010 and the 2008 Annual Work Plan, with revisions made during the preparation of the Annual Report.

D-1



2008 Planned = Actual to 31 Dec.


Investments to Meet Water Needs OUTCOMES: Advances made in meeting water needs through direct project investments and widespread adoption of improved technologies and approaches.

Amount of attributable follow-on investments arising from AWF direct investment project funding

€30 million = €40 m Botswana (Agriculture Investment) = €40 m from AfDB

All Sub-sectors: Strategic and innovative investment in small scale projects, with improved technologies and approaches widely adopted.

Number of pilot projects that are scaled up.

2 projects scaled up = 6 pilot projects ongoing but too early to achieve this result since none are completed

Botswana, Djibouti, Kenya, Rwanda, Uganda (2)

Water Supply and Sanitation: Increase in meeting basic needs for safe water and sanitation through direct investments.

Number of people with sustainable access to an improved water source from AWF investments.

3 projects underway for 20,000 people

160,00 people =6 projects ongoing benefiting 178,000 people.

Djibouti, Ethiopia, Kenya, Rwanda, Uganda (2)

Number of people with access to improved sanitation from AWF direct investments.

3 projects underway for 20,000 people

140,000 people = 3 projects ongoing benefiting 35,000 people

Kenya, Uganda (2)

Water for Productive Uses: Increased quantity and productivity of water for agriculture and food security.

Direct contribution or catalytic role of AWF projects to water productivity for food production

2 projects underway

3 projects underway = 5 projects ongoing

Botswana, Djibouti, Rwanda; and Egypt, Mozambique (project preparation).

Size of irrigated area attributed to AWF One project in 37,000 ha Botswana, Mozambique investments – direct or catalytic progress 27,000 ha = 2 projects ongoing 37,000 ha

Adequate water for industry, energy & transportation uses at national level.

Direct contribution or catalytic role of AWF projects to development of water for industry etc.

= 3 projects ongoing with relevant activities CICOS (TWRM), Egypt (Prep.), Mozambique (Prep.)

Programme/Project Preparation: Increased number of quality water sector proposals prepared and submitted for funding

Amount of donor funds provided to projects/programmes as result of AWF preparation 4 projects underway

€200 million for 4 Projects = €41.5 m, with other 13 project preparations ongoing

Funds: Botswana = €40 m from AfDB; OSS (Information) = €1.5 m from GEF, FFEM Ongoing: Burkina, Cameroon, CAR, Chad, Congo, Egypt (Prep.), LVBC, Lesotho, Liberia, Mozambique (2), Senegal, Seychelles, Tanzania

Amount of private sector capital investments arising from AWF project preparation support.

€50 m >1 project ongoing with PPP component

Mozambique

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OUTCOMES: RMCs and regional organisations benefit from increased financial resources

Components/Outputs

Strengthening the Financial Base

Overall amounts of water sector investments in RMCs and RECs arising from AWF activities

Performance Indicators 2007 Actual

€100 million = Specific activities for increasing investments included in 18 ongoing projects. To early to realize outcomes.


5 NWRM (Burundi, Liberia, Namibia, Niger, Senegal); 1 TWRM (CICOS); 1 Investment (Djibouti); and 11 Preparation (CAR, Congo, Egypt, LVBC, Lesotho, Liberia, Moazambique (2), Senegal, Seychelles, Tanzania).


Improved Environment for Sustainable Financing Policies, strategies and financing plans prepared to mobilise resources from customer base and investments from service providers.

Number of RMCs with effective water financing plans and equitable pricing policies

Increase in domestic government water sector

= Specific activities for national water financing plans/policies included in 7 ongoing projects

€200 m

4 NWRM (Burundi, Namibia, Niger, Senegal) and 3 PP (Lesotho, Mozambique, Seychelles)

% of public utilities operating on a financially sustainable basis without government subsidies

budgetary allocations across all RMCs

Number of RMCs with policies for access to

= 3 ongoing projects with utility investment/financing components

No targets set

3 Preparation (Liberia, Seychelles, Tanzania)

Improved availability and access to funds by private sector, government and other sub-sovereigns bodies.

Increased Access to Financing Amount of micro-credit made available for SMME, NGOs resulting from AWF co-financing

financing by local gov. & sub-sovereigns €10 m

= 1 project ongoing. Amounts to be determined.

Burkina Faso (as part of project preparation)

OUTCOMES: Increased capacity for informed decision making at all levels and across all stakeholders to guide water sector development planning and implementation.


Improvement in type and quality of data and information used for planning and implementation in RMCs and RECs.

1 RMC 4 RECs RBOs benefiting from improved info.

3 RMCs, 8 RBOs /RECs = Projects ongoing in 7 RMCs and 6 RBOs.

Burkina (NWRM), CICOS, Ethiopia, Kenya (NWRM) IGAD, Mauritania (NWRM), NBA, OMVG (TWRM, OSS, Senegal (NWRM), Togo, VBA

Information Management Status assessments completed in all RMCs to establish baseline and plan interventions.

Number of countries/regions covered by situation assessment

Underway for 10 RMCs

Completed for 10 RMCs = Synthesis completed in 10 RMCs

Synthesis of water information assessment studies completed in May 2008.

Standards and mechanisms established, and information management systems operational in RMCs, RBOs and RECs.

Progress in establishing or strengthening national/regional information systems

1 RMC 4 RBOs/RECs

5 RMCs; 4 RBOs/RECs = Projects ongoing in 7 RMCs and 6 RBOs.

Burkina (NWRM), CICOS, Ethiopia, Kenya (NWRM), IGAD, Mauritania (NWRM), Namibia (NWRM), NBA, OMVG (TWRM), OSS, Senegal (NWRM), Togo, VBA

Monitoring and Evaluation: Status assessments completed in all RMCs to establish baseline and plan interventions

M&E systems and reporting mechanisms established and in operation at national and regional level.

Number of country/regional situation assessments.

Development of a framework for a Pan-African approach to water sector M&E Progress in establishing or strengthening national/regional M&E system

Assessment underway in 5 RMCs and 3 RBO

Completed = Assessment completed in 5 RMCs Underway = Initial study completed. Underway in 5 RMC, 1 RBO = 1 project ongoing Namibia

Undertaken as part of pan-African water sector M&E assessment.

Undertaken in May 2008 as part of pan-African water sector M&E assessment. Other studies are planned.

(as part of NWRM project)

Knowledge Generation and Dissemination Research and learning activities generating water wisdom.

Progress in establishing or strengthening regional or national knowledge-based organisations, programmes or research institutions

Number of countries regularly monitoring achievements in meeting targets and reporting.

1 RMC, 1 REC = 1 project ongoing

No targets set for 2008

Burkina Faso

To be determined from planned assessments.

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Organisational Activities OUTCOMES: Implementation of AWF Operational Programme proceeding as planned with projects processed quickly.

Amount of disbursements €8.5 m €20 m = €12.2

Partnerships and Communications Closer working relationships established

Number of partners jointly participating in the implementation of AWF projects and activities 50 partners 150 Partners

= more than 120

Includes implementing agencies, regional organisations and member countries, co-financers, co-operation agreements, collaborative partners

Outsourcing of AWF projects/programmes Number of outsourcing arrangements 2 outsourcing = 5 outsourcing

Bank Field Offices involved in project implementation; ETFO, UGFO, SNFO, GHFO, EGFO

Participation in conferences and meetings Participation in conferences/meetings 10 conferences 20 Conference = 26 attended Only major events counted

24 press releases Information disseminated, events reported in press Number of communication products 10 press releases = 3 Operational Instruments Communications Officer under recruitment

published

Providing Assistance to AMCOW AWF supporting AMCOW in providing sector leadership and coordination at all levels.

% of staff time spent on providing assistance to AMCOW 2% estimated 3%

= 6% estimated

Operations Officer = 30%, Financial Specialist = 20%, Policy Officer = 5%, M&E Specialist = 5%, Coordinator/Director = 2%, Other Professionals = 2%, Support staff = 2%

Operational Management and Support Projects efficiently processed

Number of project approvals per year 15 approvals 34 Project approved = 14 projects approved or submitted for approval

Plans based on ambitious expected levels or human and financial resources, which has not been realised. Internally revised in middle of 2008 to a target of 17 projects, in-line with what was achieved in 2007.

Average time from approval to 1st disbursement 6 months 5 months = 7.2 months

3 SAP Training Workshops for AWF Staff; 1

Operational support initiatives provided Number of workshops organised in support of operations

10 workshops 10 workshops = 10 workshops

Procurement and Disbursement Training Workshops for AWF Staff ; 2 Regional Procurement and Disbursement Training Workshops for Project Managers, 1 IWRM seminar, 1 IGAD, 1 M&E

Operational instruments prepared and procedures streamlined.

Progress in completing operational instruments and procedures 3 completed 1 instrument completed

= In progress Operations Manual to be completed in 2008

Planning and Implementation Adequate financial resources available to the AWF

Amount of annual payments into AWF Special Fund €10.3 m €27.7 m

= €27.2

Adequate human resources in place Number of professional staff 9 staff + Coordinator

15 staff = 7 staff + Coordinator PL=3; TA=3; YP=1

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2008 annual report - afdb.org · through various projects and activities the facility is acting to...

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