Water management institutions conditions necessary and sufficient

for application of economic and finance instruments

Noma Neseni

• Please define what we mean by institutions.

• In groups please identify what you consider to be institutions necessary for effective application of economic, financial and policy instruments

Group work

Defining institutions• Institutions are broadly defined as norms, value

systems, culture that govern the way we do business. These norms or value systems are then applied using different physical organizational forms such as churches, schools, utilities, public/private entities.

• Historically in Southern Africa because of the colonial history, most governments have adopted redistributive policies and institutional norms and values.

• An example is that in the past water was seen as a free commodity that was god given and therefore could not be paid for. General belief was that it was plenty and bountiful. Colonial regimes denied majority safe water so political agenda has been to correct these injustices

Institutions • With the belief of abundance and god given

we therefore did not pay for water.• The Dublin principle emphasizing finite, social,

economic and environmental justice have brought a new way of thinking- in essence a new culture

• Thus the culture of having to think of valuing and costing water

• In WASH there is a move to put a value to water, sanitation and hygiene at the micro and macro levels

Different institutions and their roles in WASH

• The effectiveness of economic instruments for sustainable WASH depends on the efficiency of the way the markets function and the presence of a solid institutional platform with capacity to implement WASH objectives at the national, state and municipal level. Ultimately, the success of this type of instruments in the countries will be intrinsically linked to the degree of institutional development attained, and to the capacity of the public apparatus to render operable policy objectives –such as environmental policy– in the long term

Institutions and conditions• Studies that have been carried out (Denmark,

Germany) show that that institutions matter in the application of economic and financial measures. Neither market mechanisms nor market-like policy instruments operate in a vacuum. Regulatory reform do not mean leaving the market to itself. Formal and informal government institutions define and specify the conditions under which market mechanisms function. Adaptation of the current legal-institutional framework to facilitate the operation of instruments for environmental management at the different levels of government and ensure their harmony with other political sectors

Institutions and conditions• Since market-like policy instruments are usually

applied within existing rules, institutions, and policy processes, the policy and administrative contexts in which they operate become important. These contexts are quite different from country to country, often more so than policymakers are aware of The national style of policymaking depends on the constitutional framework, the infrastructure of public authorities as well as the historical and cultural heritage, which are basic institutional premises that vary tremendously even between neighboring East and Southern African countries.

Some insight into WASH institutions• SWAP case studies carried out by cap-net

indicate that harnessing of financial resources in successful WASH programmes has needed transparent institutions that are accountable to both the donors, private sector and the public at large.

• Some of the key institutions involved have been:

• Ministry of Finance, ministry of water resources, Ministry of Health, Ministry of Local Government civic organizations, NGOs, CBOs, the private sector, local authorities.

insight• Key to some of the success stories have been the

decentralization of revenue collection and implementation.

• Centralized accounting to the parliament, donors and end users either through parliamentary reports or annual publications of revenue generated and outputs thereof (Uganda)

• Basket funding for rural water supplies• Coordinated prioritization with key stakeholders

making decisions on investment priorities

insights• Budgeting checklist• Is the cost of meeting WASH needs clear?• What needs to be done before embarking on

sector financing?• What roles can each of the stakeholders play at

this costing exercise?• What evidence is needed to present to finance so

they allocate more resources to sub components of the sector?

• How do you go about collecting evidence that would assist in budgeting?

insights

• Institutions in WASH have to answer questions on:

• how much money will be needed when will it be provided and how to deliver the resources. Also critical is the question of if there is absorptive capacity.

Example from Ethiopia on institutions involved in WASH financial accountingMulti level accounting to ensure transparency

Government High-level forum Donors /DAG

Harmonisation

secretariat (gvt)

High Level JBS forum(Chaired by minister of

finance and donors)

JBS coordination team (govt, donors and DAG secretariat)

DAG

DAG technical working group

DAG Secretariat

Harmonisation task force (chaired by donors and gvt)

Joint Budget Support

JBS technical team

Accountability and coordination mechanisms in Ethiopia

institutionsAn example shows catchment councils, then we have local governments and political boundaries.

SADC ZAMCOM InstitutionTo Kingdom Central Africa FAX : +267 3906874 Att Bridget Moduka From Noma Neseni Fax 263-4 738120 RE: Request for a transfare of US 1500 Acc Noma Nyoni Neseni/acc number 102666 I am kindly requesting that you transfer US$2000 ( two thousadnd dollars from my account Nyoni- Neseni 102666 my account into the following account: ACC Name : Institute of Water and Sanitation Dvelopment Bank Name B arclys Bank of Zimbabwe Branch Avondale Branch Accouint Number 6579101 Swift Code BARCZWHX Please confirm by e-mail or fax once the money has been transafered and may I also have a statement. Regards Noma Neseni

MLGRUD

MOF

MWAGCD

ZINWA

MWD&M

MOHCW

DDF

AREX

DPP

NAC

National Aids Council

DWD

MNHSA

MOED

MYD&E

MOESC

MOLSW

EMA

MTC&ID (Chair) 

NCUNAC Secretariat

Fig 1: The Composition of the National Action Committee (NAC) 2009           

 

Z. Hoko 16

Examples in the region-Water supply –Namibia

The Ministry of Health and Social Services (MHSS) and the Ministry of Agriculture, Water and Forestry (MAWF) are the agencies responsible for setting water quality standards for drinking water. However no statutory instrument for potable water exist at the moment, and currently NAMWATER utilizes Namibian guidelines (Ndokosho et al., 2007)

Namibian Water Corporation (NAMWATER)

Board of Directors (Elected Reps of interest groups but

appointed by MAWF) CEO

Line Managers Area Managers

Bulk supply to Municipalities (32 out of the 36)

Rural areas and individual customers

Ministry of Agriculture, Water,

and Forestry MAWF

17

Examples in the region-Water supply- Zambia (1)

Regulation and financing

MLGH MEWD

COUNCILS

Commercil UtilitisE.g Lusaka Water and Sewerage Company

NWASCO(DTF)

Zambia Water and Wastewater Management

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Examples in the region-Water supply –Malawi

Water Board(currently 5, (BWB, CRWB; LWB, NRWB

SRWB) Board of Directors (Includes

Reps from MIWD & MSC& interest groups) CEO

Line Managers Zone/Scheme Managers

Customers (Domestic, institutional, commercial and industrial)

Ministry of Irrigation and Water

Development (MIWD)

BWB-Blantyre Water Board; CRWB-Central Region Water Board; LWB-Lilongwe Water Board; NRWB-Nothern Region Water Board; SRWB-

Southern Region Water Board) MSC- Ministry of Statutory Corporations

Ministry of State Corporations (MSC)

Tariff approval

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Examples in the region-Water supply –Zambia (2)

Innovations in Zambia in the water and sanitation Sector

Kanyama Water Trust

Kiosks in George Compound

DTF

20

Examples in the region-Water supply –Zambia (2)

Water Kiosks in George Compond-Lusaka

User registration ion George compound

Z. Hoko 21

Examples in the region-Water supply –Zambia (2)

Water storage tanks

Source of water is boreholes with chloronation treatment

Part of george compond- shallow wells are also common

Z. Hoko 22

Examples in the region-Water supply –Zambia (2)

•Initially sponsored by Care International

•Fully managed by the community the a Board and management Team

•Individual and kiosk connections

•Very successful

GovernmntGovernment

MOH MFPED MWE MoLG MoES MAAIF MGLSD

DWRM/DWD/NWSC

NGOs/CBOs

PrivateOperators

Local Governmen

t

Communities

DWO

Roles and Institutional Framework

-

District level

Community level

Uganda WSS Institutional Framework

National Level

• Service Delivery

• Support to Communities

Local Government

X 79

• O&M

• Policy setting

• Regulation

• Monitoring

• Overall planning & coordination

• Quality assurance and guidance

• Capacity development

GovernmntGovernment

MOH MFPED MWE MoLG MoES MAAIF MGLSD

DWRM/DWD/NWSC

NGOs/CBOs

PrivateOperators

Local Governmen

t

Communities

DWO

Roles and Institutional Framework

-

District level

Community level

Uganda WSS Institutional Framework

National Level

• Service Delivery

• Support to Communities

Local Government

X 79

• O&M

GovernmntGovernment

MOH MFPED MWE MoLG MoES MAAIF MGLSD

DWRM/DWD/NWSC

NGOs/CBOs

PrivateOperators

Local Governmen

t

Communities

DWO

Roles and Institutional Framework

-

District level

Community level

Uganda WSS Institutional Framework

National Level

• Service Delivery

• Support to Communities

Local Government

X 79

• O&M

• Policy setting

• Regulation

• Monitoring

• Overall planning & coordination

• Quality assurance and guidance

• Capacity development

Institutions • At the end each country has to develop institutions

that are contextual to meet its particular needs,• questions that need to be answered are :• Who are the main institutions ?• What is their role – is there no duplication?• What are the accounting procedures?• What about the different interests of institutions• Does the water manager who is concerned about the

finite, vulnerable resource understand the Utility Manager who wants to abstract and provide water or the politician who has a constituency?

Questions suggestions